Chapter 36 - China 1837-1839

Vol 10 No 36 – 5th September 1837

Pestonjee Rustomjee arrived from Bombay and Singapore per Buckinghamshire.

Vol 10 No 36 – 5th September 1837

Singapore Free Press, 17th August - Readers may recall nearly three years ago that the Rev Dyer of Penang called for donations to make Chinese type faces for printing. He is now at Malacca and has completed 3,232 characters which he offers for sale at $625. This will be far better than the wood blocks that Chinese printers currently use.

Vol 10 No 36 – 5th September 1837

Edict of Admiral Chin and General To of Fukien Province, 23rd August 1837:

“Society is held together by law. If law is not enforced, society disintegrates.

“Foreign ships are only permitted at Canton. This has long been the law but the foreigners these days sail everywhere to sell proscribed opium. If we took opium to the English coast and sold it to your people would you permit it?

“You abuse the Emperor’s benevolence but he forgives what is past. Now the Viceroy of Chekiang & Fukien has ordered us to drive you away. The Viceroy of the Two Kwangs has ordered your Chief to prevent your voyages. You should forego your wickedness and follow virtue.

“If you cannot obey our law you should leave. If you obstinately continue to disobey we will launch a thousand warships against you. When the Admiral unites his ships with the General’s soldiers you will be unable to resist. But we issue this timely warning before annihilating you. If you are wise you will leave our coast.”

Vol 10 No 36 – 5th September 1837

The Manchu General of the Two Kwang is ordered to Peking to defend himself of charges of complicity in the distribution of opium.1

Vol 10 No 37 – 12th September 1837

Calcutta Courier, 19th July - The opium merchants at Calcutta propose to apply to the Bengal Government for relief from their purchases this year. Their grounds are the recent indulgence given to Mr Cohen who was allowed to resile from his contracts, costing the government 200 rupees per chest for the 750 chests that Cohen bought.

The speculators have applied for a reduction of agreed sale prices in the first three sales this year of the difference between those sales and the recent June sale at which the enforcement action in China depressed prices.

They say they have tried to perform their engagements faithfully and should not be punished when Cohen simply defaulted on his contracts and got away with it. They want the proposed decrease to apply both to chests already shipped and those still held back in stock. They say the prices they committed to pay in the first three auctions cannot be recovered profitably in China.

It is true that very few of the chests sent to China have been sold. The application will involve 11,000 chests and the government loss of revenue, if it fully agrees to the proposal, will be some 2,200,000 Sicca Rupees.

Vol 10 No 37 – 12th September 1837

Local news:

Vol 10 No 37 – 12th September 1837

Peking Gazettes, 9th July, Imperial Edict:

The export of sycee is injuring the country. I told all the officials of the maritime provinces to stop it. Benevolence has been heaped upon them and they should discharge their duty faithfully but perhaps they are privy to the smuggling? If they do not stop the export very soon they will be disgraced. The civil and military officers must exert themselves. Success will bring Imperial rewards. The Viceroys and Governors must stop these base practices.

Vol 10 No 37 – 12th September 1837

Peking Gazettes, 9th July:

The censor Lew Mung Lan says the soldiers of the maritime provinces are mainly inveterate opium smokers. The Emperor responds:

“Soldiers are supposed to be disciplined and brave. In 1833 the Yau people rebelled at Leen Chow and the soldiers could not be mobilised because of enervation by opium. I dismissed their officers. This is a warning. How will it be possible to defend the country and maintain our dignity?

“The Viceroys, Governors and Generals must purify their minds and take precautions. The involved soldiers must be identified and cashiered. If the high officials fail they will also be dismissed.”2

Vol 10 No 37 – 12th September 1837

Letter to the Editor - The clock tower in the factories, which was bought from the Company by public subscription, is being installed within the Company’s factory (I should say the Office of the British Commission) where it is out of sight of almost everyone. It is so high on the wall that it is a strain to raise one’s eyes. There should have been some consultation about where to erect it.

I think most people would have chosen to put it in the Company’s garden (excuse me, Superintendents’ Garden) where everyone could see it.

Vol 10 No 37 – 12th September 1837

Letter to the Editor – With trade so slow this year it’s a good time to confront the ‘Finance Committee’ of the Company. We should take no advances from them. Of course the Company will try harder to press the money on the trade. The agents get 2½% commission and this is the reason they throw commonsense to the wind and continue to offer trade finance. Sgd Impartial Observer 11th Sept.

Vol 10 No 38 – 19th September 1837

Notices:

Vol 10 No 38 – 19th September 1837

Local news:

Vol 10 No 38 – 19th September 1837

Letter to the Editor – the decked Macau ferry boats have been withdrawn from service by the Viceroy because they were being used for smuggling. The community is now deprived of a fast and comfortable communication by the selfish acts of a few of their number. Some boats briefly continued the service after the proscription but one of H M Commissioners saw a boat opposite the factories and induced its owner to ‘send her away’. Several are now up for sale. The remaining boat operators decline to serve Kap Sui Mun or Hong Kong.

In fact I think only one British boat was caught smuggling. It seems unreasonable to punish all for the crimes of one.

Now only those who qualify to use HM cutter Louisa have comfortable passages from Macau to Canton. Louisa is not supposed to be a ferry boat nor should it be used to deprive the regular ferry operators of $10 fares. It should be restricted to official jobs and not the daily errands of H M Commissioners.

I wish the ferry service proprietors would protest to the British merchants, not to the Commissioners. Only the merchants have the influence with officials to restore the former service. Sgd A Friend of Justice, 13th and 23rd September

Editor – smuggling on the passage boats was a notoriously widespread matter. If the proprietors did not know it, they should have done. The actions of one of the Commissioners cannot be held against all of them. Elliot was the first to suggest using the affray at Tien Chu Ma Tau to get the boats moved back opposite the factories. The General Chamber is also taking up the matter. The thing is that ferry boats should be used solely for passages.

Vol 10 No 39 – 26th September 1837

Local news:

Notices:

Vol 10 No 39 – 26th September 1837

Viceroy Tang and Governor Ke instructed the Hongs to enjoin their demand on the English Commissioner that the ships in the outer waters must depart. Hereafter only trade in legal items is permitted. Since then no response has been received via the Hongs. Numerous officials have reported 25 foreign store ships at Mo Tau (the Nine Islands), Sha Lei, Ke King (Cabreta Point) and Tum Chai (Taipa). Later 19 store-ships moved from Mo Tau and two from Sha Lei and all anchored off Tsim Sha Tsui (in Hong Kong harbour). They have not gone away, they have just moved.

China tenderly regards foreigners. The benevolence of the Emperor sinks into their flesh and penetrates their bones. Under what distorted view can the foreigners pretend to trade but actually smuggle. The depraved men in the outer waters believe we are incapable of extending our jurisdiction to them. Every country has its boundaries and you in the outer waters are well within ours. We will not continually tolerate your disobedience of our laws.

The English King has hitherto been obedient. He sent Elliot to supervise His people here. Elliot was told to expel them a month ago and nothing has yet happened. He is either unequal to the task or he connives in the smuggling. How can he face us, let alone his own King?

We again order the Hongs to instruct Elliot to distinguish between happiness and sorrow. He must expel all the ships without any opposition. He should tell his King that smuggling ships are not allowed. The Hong merchants are responsible to educate the foreigners. They should consider the safety of themselves and their families in carrying out their duties. If they continue to delay their crime will be great. 18th September 1837

Editor – Elliot should outline the extent of his powers to the Canton provincial government. If they require our aid to do their job, Elliot should tell them to give us an island, then we will cease troubling them. Elliot cannot order the ships away - the Bengal government is dependent on them for much of its revenue. It is actually Elliot’s duty to protect them.

Whether our China-trade should be secondary to the Bengal revenue is a nice point.

This revenue derives from forcing a part of the Bengal population into cultivating the poppy and manufacturing opium. The value of this crop is run up 500 – 600% by artful jobbing at auctions. To maintain this revenue, the British character is to be forever disgraced in China. The company, whilst it traded here, purported to be uninvolved in opium but in fact it took the profits in Bengal while urging the buyers on to their ruin by selling opium abroad. If we are to hold a proper position in the east, this government monopoly must be abandoned. The people of England should consider whether they wish their national character to continue to be disgraced in sacrifice to the East India Company’s profits.

Vol 10 No 39 – 26th September 1837

Viceroy Tang has received an Edict of the Council of War:

“On 28th August Peking received advice of the arrest of the Fukienese She How and others and the Cantonese Wang Ma Chih and others who all conspired with foreigners to distribute opium. In Fukien waters the Admiral must cruise and seize the smugglers. In Canton waters it is difficult to prevent them smuggling but each foreign nation has its taipan (chief merchant) who must be urged to restrain his people. Tell these taipans to drive the smugglers away.

“The Fukien admiral has interrogated the culprits and obtained details of their accomplices. He will round up all of them and punish them so the impure connection with foreigners is prevented and peace will return to our waters.

“I (the Viceroy) require the Hong merchants to order Elliot to identify these foreigners who make traitorous connections with Chinese and expel them. Hereafter the merchant ships are only allowed to conduct lawful trade. Opium may not be imported. Elliot understands the management of affairs. He must give these opium ships his serious attention. If the ships delay their departure, we will deliberate on what should be done. If the opium brokers and smugglers did not abandon themselves to profligacy there would be no difficulty.

“I have ordered the army and civil officers, through their informants, to identify and seize the culprits and seven times they have arrested sycee exporters, smugglers, fast boat operators and retailers. Now the inner waterways are clear but outside there still remain some ‘to fung’ (fast wayboats) and others that carry on the smuggling. The opium smuggler Tsing Ching Hin and his Heung Shan fast boat has been seized.

“It is the Lintin system that is responsible for the export of sycee, the import of opium and contraband goods and the consequent decrease in Imperial revenue. All the relevant places are in the area controlled by the Heung Shan heen. Although the resort of the store ships cannot be tackled yet we have sufficient forces to interdict their trade within the inner waters. When we catch a criminal we will examine him and learn all he knows.

“If officials allow their boats to be used for smuggling or if they accept bribes, they will be punished one degree more heavily than the smuggler. When seizures are made the officials will receive the goods and sycee as reward; the boats and opium will be burned. We have seen how increased vigilance drives the opium storeships from one place to the next.”

Vol 10 No 39 – 26th September 1837

Macau news - The Macaista Imparcial of 20th Sept reports the Tso Tong has advised the Procurador that he hears some Portuguese families employ Chinese servants. This employment is not fixed through a comprador and is therefore unknown to the Canton government.

When there are complaints of dishonesty against these servants, the government is unable to pursue them as it lacks all details of their families etc. In future all Macau families must employ servants through compradors or arrange a bondsman to be answerable for the employees.

Vol 10 No 40 – 3rd October 1837

Sir Alexander Johnstone the Chairman of the Royal Asiatic Society (former Chief Justice of Ceylon and father of the deputy Commissioner here) has eulogised the Anglo-Chinese College at Malacca which teaches European science and literature to Chinese and thereby opens the opinions of those extraordinary people to our influence. A young graduate now holds office in Peking and his knowledge of western languages and thought has brought him influence. This gentleman has reportedly memorialised the Emperor to consider the decriminalisation of opium use and its legal import under a fixed tariff.

According to local sources the graduate, Shum Teh, went to Peking in 1828 when an interpreter of western languages was requested from Canton. W C Hunter lived in the same room with him at the college and has provided some biographical details.

Shum left China aged 14 years and lived in Penang under the care of Catholic missionaries who taught him Latin. He then went to Malacca and lived in the college library with Hunter who recalls he was proud, ambitious and an assiduous student. He spent no time in amusements but continuously read western books. His mastery of English, which he speaks with a Scottish accent, is exceptional. He is also well-informed in the sciences.

He translated a Latin account of China into Chinese for some supporter of the college who paid him handsomely for the service. After 2+ years at Malacca he came to Canton coincident with the Imperial request for a translator. In 1830 he wrote Hunter that he had been much employed in translating for the Russians. He had then become a 5th rank official on a salary of 8,000 Taels a year. He asked for some English books (Hunter recalls Euclid was amongst them) and directed how they might be sent to avoid detection.

Editor – the salary Hunter mentions must be wrong. Official pay in Peking is the lowest in the Empire.

Vol 10 No 40 – 3rd October 1837

Bennett & Tyreman’s Voyages – The extremes of wealth and poverty are nowhere more ludicrously contrasted than in China. The rich begrudge no expense for their luxuries. Edible bird’s nest are found in vast clusters in the Nicobar Islands and sold in Canton at $5,000 per picul. An army of men are employed preparing these for sale, picking out the feathers and extraneous matter and knitting bamboo slivers through the nest to preserve its form. Dried sharks’ fins are highly prized. The black beche-de-mer (sea cucumber) from the Pacific Islands is also esteemed.

While the rich pay astonishing sums for these delicacies, the poor, if they eat meat at all, live on the entrails and feet of chickens, on worms, rats and frogs. An acquaintance says his mornings are disturbed by the sounds of dogs and cats being slaughtered in the street market below. Not a bone or a green leaf is left in the street after market. Every morsel is taken up for food.

Vol 10 No 40 – 3rd October 1837

The Viceroy’s report to Peking on the Hong merchants, 29th August 1837:

“Formerly their number was restricted to thirteen but some failed to pay Imperial duty and others became involved in debt. For these reasons the Hoppo Tih King in 1814 requested that one or two rich and honest merchants be made responsible for the others. The names of these leading merchants were to be reported to the Board of Revenue and each year, when the Hoppo’s service expired, he was to make a list of approved Hong merchants and forward it to the Board. Thereafter, when a new Hong merchant was licensed, his colleagues were to enter a security bond for his performance. Only the top one or two merchants were expected to provide the bond but in fact none agreed to give it.

In about 1830 many Hongs failed and the seven that remained were unable to manage all the trade. The then Hoppo Yen Lung invited applicants but none came forward. Yen attributed this reluctance to the vicarious liabilities deriving from the bond (which they had refused to give but which Peking would enforce on them anyway) and requested to amend the regulations to accord with actuality. For several years the foreign trade had increased but the numbers of Hongs had decreased. Thus not all affairs were properly managed and some confusion had arisen. Yen was allowed to select prospective Hong merchants who were rich, respectable and experienced. They were to act probationarily for one or two years. If they proved capable, paid the duties timely and the foreigners trusted them, they were to be admitted as full Hong merchants. In such circumstances one or two existing Hong merchants were expected to accept to be bonded for the newcomer’s performance and the law of joint liability (of all) was repealed. Thereafter the numbers of Hong merchants increased and there are now again thirteen but the reluctance of the senior Hongs to secure the newcomers continues. The new Hong merchant Jin Ho Hong (Poon Wan Hai) has now been on probation for seven years but no-one is willing to provide a bond for his performance. Fu Tai Hong (Yip Yuen Chang), Tung Chang Hong (Lo Fuk Tai) and Gan Chang Hong (Yung Yew Kwan) have completed one or two year’s probation but have not been reported to the Board of Revenue as they have not produced the necessary bond. I have given them a month to get one or two securities so they can be formally admitted. If they fail I will wind-up their businesses and punish them.

But the circumstances have changed and the revisions requested by Hoppo Yen may no longer be appropriate. The peculiar situation facing Hoppo Yen has not recurred. Now the rich people are willing to be Hong merchants but a problem of smuggling has arisen. These new merchants are rich because they seek for gain. For more than ten years sycee has flowed out and opium flowed in. Smuggling and general evasion of duties has flourished. Successful smugglers tempt others to join them. In May this year Leung Ah Kei was caught. This led to the discovery that the Hong merchant Lo Fuk Tai had written to the shopman Ching Yung Ping implicating Captain Lo Hiu Fung of the Shao King squadron in bribing the Hoppo to get his (Lo Fuk Tai’s) Hong merchant’s licence. Lo Fuk Tai is suspected of smuggling. Captain Lo Hiu Fung has been cashiered and when he returns from Peking to Canton they are all to be tried together. Lo Fuk Tai’s capital is not large (i.e. his removal as Hong merchant will make little difference).

Now, although we put these people on probation, ‘the hearts of men are unfathomable’ and evil can disguise itself as good. Then when they revert to true form, losses arise and no-one will provide a bond. This plan of probationary service for Hong merchants is useless. Tih King’s old arrangement whereby the whole body of Hongs is jointly liable for the acts and omission of each other is productive of public good. The revised regulation of Hoppo Yen was simply to answer a problem of the moment. He did not expect the existing Hongs to maintain their refusal to bond the newcomers. If these securities are not required, there will be extensive bribery and gradually our control will wither. Furthermore when a Hong fails it is inadequate to seize its property in restitution of debts. We must require all the merchants to supply the deficiency. This is the existing state of the law whether there is a bond or not but a bondsman would be better as he will tend his investment and supervise the merchant.

These are our opinions. We commend that the numbers of Hong merchants be limited to thirteen. Should one cease business, another may be permitted to replace him, but no greater numbers of Hongs is required, neither is there a need for probationary service. When we next licence a Hong merchant we will require all the existing Hongs to provide security for him. This will ensure that only just, upright, responsible and rich men will qualify for the job.

Vol 10 No 40 – 3rd October 1837

Viceroy Tang’s secret memorial on opium:

“On 3rd August we received the Council of War’s order, reciting an Imperial Edict received 14th July, to expel the opium store ships. The Emperor says sycee is being removed from China causing injury to the government and the peoples’ standard of living. The exporters of sycee depend on the opium store-ships where vagabonds hide themselves and smugglers go all day to buy contraband. Traitorous natives manage the trade. They land the opium and the shopkeepers of Canton, overtly pretending to deal in foreign goods, retail it to the people. The opium is kept in store-ships in the outer waters. They have been there since My reign commenced but no-one reported them. They remain all year and facilitate traitorous connections with native smugglers.

“The Emperor requires me to order the Hong merchants to instruct the foreigners to remove their store-ships. He will also seek out the opium brokers and dealers and punish them.

“Receiving this I the Viceroy have investigated. Opium is a foreign product. At first it was admitted on payment of duty. Afterwards it was proscribed but we have not been able to cut off its distribution by foreigners. It is now found everywhere and sycee silver is becoming scarce. Formerly the foreign ships anchored at Lintin to await a pilot. Now they have established store-ships there for opium. The English country traders and the Americans are the most numerous. They have been driven away many times but keep coming back.

“In the last few years they have adopted the habit of shifting the Lintin fleet to Kum Sing Mun during the summer. I myself only came here at the end of 1836 but the Governor has informed me. In October 1837 the ships moved from Kum Sing Mun to Lintin. I proclaimed to the Hong merchants and people of Kum Sing Mun that the shipping was not to be permitted to return. Admiral Kwan is ordered to cruise in the vicinity. The Heung Shan Heen has been ordered to watch the harbour closely. I have also prepared fire ships to float down on the foreign shipping should they come back. In March this year we reported to the Emperor. This summer the ships have not reappeared at Kum Sing Mun but they are still in the vicinity of Canton and we will have to incrementally manage them.”

A secret attachment to the above memorial:

“On 6th September we received a despatch from the Council of War saying they had received an Imperial edict. The Emperor says the Governor of Hunan has identified Hang Yung and Low Kwei as the two places where opium smugglers bring the opium into his province from Canton. The magistrates at those places have now detected nine cases of opium smuggling. They have arrested 20+ criminals and seized 2,000 Taels (i.e. 167 lbs – more than a chest) of opium. Now I order Tang and Ke (the Viceroy and Governor of Canton) to alert their troops on the Hunan border. Why did they not detect these cases?

“The Canton officials reply Shao Chow foo has two heens Lo Chang and Yu Yuen and Leen Chow foo borders Lo Chang and there is a river connection to the west by which all the merchants travel. We have ordered the Shao and Leen foos to cut the communications of the opium smugglers and seize the offenders. We also propose to set up surveillance at the pass over Ta Yu Ling mountain which links with Kiangsi province. The Customs House at Shao Chow foo is on the Keuh River and anyone going north or west must pass it. If the staff of this Customs House were diligent, no smugglers could pass.

“In summary we have ordered the warjunks to cruise and ordered the Customs staff to search day and night. Further it is necessary to prevent corruption. Anyone receiving bribes will be dismissed and punished. And when opium is discovered, all the districts through which it must have passed will be investigated and the magistrates of those places are to be cashiered.

“These secret arrangements should affect the smugglers in both Hunan and Kiangsi and may induce them to desist. The new head of Shao and Leen foos is Yang Kew Yuen and we have personally instructed him.”

Vol 10 No 40 – 3rd October 1837

Letter to the Editor – As you say, smuggling on the Macau ferries was too well known to survive long. You are right that smuggling is fashionable amongst both the great and small of our community. The practise is so widespread with foreigners that no odium attaches to it unless the commodity smuggled is opium. Our community only really considers opium as contraband, all the rest of our informal trade is thought of as ‘creative’.

Hopefully H M Commissioners can get the boats returned to service from their former moorings. Sgd A Friend of Justice, 29th September

Vol 10 No 41 – 10th October 1837

Advertisement – Mr Ching, a native of Szechuan, who formerly instructed the Company’s staff, will give lessons in Mandarin to a few Europeans. Contact Canton Register for details.

Vol 10 No 41 – 10th October 1837

Editor’s local news:

Vol 10 No 41 – 10th October 1837

Admiral Chin of Fukien to the foreign opium ships at Namoa, 24th September:

“I warn you to depart to Canton in the South to avoid force being used against you. You say your trade with Chinese has become common and you are willing to pay duty on your woollens, etc. You must obey the law. Who will trade with you when my warjunks surround your ships? The families of Shay and She (two men caught trading with the foreign ships and executed) know the penalty. The naval forces all along the coast are arrayed to control every landing point.

Now the Emperor orders me to take to the seas myself and drive you away. You would do well to obey. I have not been unkind to you. I commenced with instruction but you resisted and raised foolish expectations that the law would be changed for you. So long as you remain here I shall also remain. My fleets are waiting at Quemoy and Amoy so you may compare the results of obedience and disobedience. You have two ships; your base is distant, your food and water supplies no longer flow. Do not repent too late. Can you be induced to respect our law? Return to Canton. No more indulgence will be shown you.

Vol 10 No 41 – 10th October 1837

Letter to the Editor – I am the owner of the ferries Sylph, St George and Union. I established ferry boat services in China in 1826. My boats are not involved in smuggling. Everyone knows which two boats are used for smuggling, even Howqua knows, and they are not mine. My boats go up and down to Canton. They do not stop at Whampoa. Sgd Robert Edwards, 3rd October

Editor – the original advertisement of ferry services in 1836 just said application was to be made to 1 British Hong for passages. It did not identify the owners of the other ferries Rose, Bombay or Jane as different. We will take Mr Edwards at his word.

But Edwards did not originate ferry services. The first passage boat, the Sylph, was built by Alexander Robertson in 1824 for the use of himself and his friends, notwithstanding opposition from the Canton government.

Vol 10 No 41 – 10th October 1837

Died at Canton 3rd October – Frederick Perceval Alleyn, formerly surgeon of the company ship General Kyd. During the suspension of the company’s trade in 1829, Alleyn was the only company man to remain at Canton to provide for the medical needs of the largely American community. His remains have been sent to Macau and will be interred in the Protestant Cemetery.

Vol 10 No 42 – 17th October 1837

The results of Cohen’s application for a refund on his opium speculation:

Purchasers of opium at the January, February and March 1837 sales will be compensated at 140 Current Rupees per chest if they shipped the goods before 1st August.

Purchasers of opium from those sales shipped to the Straits before 1st May will not be compensated unless they can produce B/L’s showing the goods were on-shipped to China before 1st June.

Purchasers of opium in June who shipped before 1st August will not be compensated.

Opium sold in the January, February, March 1837 sales and shipped after 31st July will be rebated at 300 Current Rupees per chest. Opium sold in June and so shipped will be rebated at 150 Current Rupees per chest.

Vol 10 No 42 – 17th October 1837

James Gathorne Remington, Mansfield Forbes and Matthew de Vitre, partners in the great Bombay Agency Remington & Co, have presented a huge silver salver to Jamsetjee Jeejeebhoy (known as JJ) as a testimonial of their friendship.

It is about 2½ feet in diameter and abundantly decorated. The form of the peacock appears often. Sir Charles Forbes procured permission from the Herald’s office in London for the use of this animal by JJ as his family crest.

Within the salver is a silver decoration containing inter alia a vase suitable for the service of over 3 gallons of wine which is delivered to the imbiber’s cup by three separate tapped stems. It is overall a rare specimen of art that will well accord with the other contents of JJ’s splendid mansion.

Vol 10 No 42 – 17th October 1837

Arrivals – Alexander Matheson per Red Rover from Calcutta and D Dyce Sombre per George IV from Bombay, Madras and Calcutta.3

Vol 10 No 43 – 24th October 1837

Palmerston presented a Bill to parliament in June 1837 for the establishment of Courts of Justice in China. The Court will have criminal and admiralty jurisdiction in the trial of British subjects. In Morrison’s Commercial Guide it is said this measure has been criticised as unjustifiable Imperialism and intolerable to Chinese sovereignty. The Guide says in fact the Chinese took no exception to the proposed judicial powers of Napier.4 In recent years they have simply demanded in every homicide that his countrymen identify the culprit and hand him over to China for justice. However we know in the Chinese system from previous experience that men surrendered in this way are executed with little formality on the ‘life for a life’ principle that guides Chinese jurisprudence. But there is precedent for the expectation that they will agree to our own jurisdiction in such cases. For example in an American homicide in 1821 the Viceroy said ‘as the officers of government do not understand the language of the foreigners, it has always heretofore been the practice to order the chiefs of the respective countries to find out the murderer, question him fully and ascertain distinctly the facts before delivering him up to government, after which a linguist is summoned, the evidence translated and written down and the prosecution case presented.’

In Turkey we have a similar situation. According to McFarlane’s Constantinople ‘no such thing as an execution of a Frank under Turkish law has occurred in the Levant, where offenders are given over to their Consuls who, if the offence be light, take their punishment into their own hands or, if serious, send them home to be tried under the laws of their own country’.

According to Ljungstedt’s Macau, ‘by an order of the Prince Regent of Portugal in 1803, no homicide shall be given up to the Chinese; the cases shall be tried by the civil authority of Macau; if the criminal be found guilty by the laws of Portugal, he shall suffer death at the hands of a Christian executioner. This command was first followed in 1805.’

Editor - It was most recently followed in 1826 when a slave was suspected of killing a Chinese youth. He was tried by the Portuguese judge, convicted, condemned and executed in the Campo by the Portuguese executioner in the presence of Chinese officials. We think the Chinese will see the attractions of shifting this emotive issue from their own shoulders to a British court for it lessens the chances of a confrontation between the countries. One serious consideration is to have a professional judge to represent British justice and not be placed in the equivocal position of having other duties to perform.

The Bill – It is expedient to preserve good order amongst British subjects trading in China and to promote amicable relations with that country by preventing interruptions to our trade that may result from disputes. To this end a British court will be established in China by the Queen-in-Council to try all offences committed by Britons in China and decide civil cases relating to commerce with a right of appeal to the Supreme Court of India and ultimately to the Privy Council. Her Majesty-in-Council shall appoint a judge and establish procedures for criminal and civil cases and establish rules for the conduct of Britons in China and shall specify penalties. The judge may send out of the Court’s jurisdiction any convict. Cases involving other non-Chinese trading to China may also be heard on application. These duties will not form part of the duty of the Superintendents but will be managed by a Consul or vice Consul. However, the provisions of the law regulating the acts of the Superintendents will extend to the Consul(s). The limitation on commencing proceedings is six months from the date of offence or six months from the date the suspect comes within the jurisdiction of the court.

Vol 10 No 43 – 24th October 1837

Advert – The Cornwallis will receive freight at Lintin and sail mid-November for Singapore & Bombay. The Balcarras will leave Whampoa for Lintin and Manila on 1st Nov. For freight – apply to Jardine Matheson & Co, Canton, 23rd October.

Vol 10 No 43 – 24th October 1837

Advert – The Ardaseer will sail from Lintin for Singapore and Bombay soon. For freight apply to H & N Cursetjee, Canton 5th September.

Vol 10 No 43 – 24th October 1837

This week the shipping returned to Lintin from Hong Kong.5

Vol 10 No 43 – 24th October 1837

Regarding the insolvency of Hing Tai Hong, the Provincial Treasurer and Judge have submitted their report:

The committee of three foreigners and three Hong merchants have examined the Hong’s books and found the original claim of Keating for $20,000+ is irregular and should be struck out. The claim of Nasservanjee for $38,000 plus $33,800 interest is unsupported as that merchant maintains no books of account. Settlement of the books must await the return of Yen Ka Tseang. Inspection has reduced the documented claims to $2,797,415 of which $477,329 represents excessive interest and is disallowed. The real debt was thus revealed to be $2,320,080.

Hing Tai Hong gave goods on consignment to foreigners worth $1,039,558 of which only $685,736 has been settled and the foreigners say Hing Tai Hong’s prices for these goods was very high compared to other traders. When these goods have been sold, any necessary adjustment will be made.

According to the law the Chinese and foreign traders are supposed to barter goods and any balance on account was carried forward to the following year. It is also law that none may incur heavy debts. Now Hing Tai Hong has only been a Hong merchant for 7 years but has amassed debts of over $2 millions. Clearly he traded unprofessionally expecting the other Hongs to supply the deficiency. This crime deserves banishment.

Not only that but Yen Ke Tseang has disappeared. There is no record of a Hong merchant not paying his debts but this case is different as the foreigners traded year after year without settling accounts annually as legally required thus letting the amount become enormous. There is now a difficulty in repayment as the foreign trade has become less profitable in recent years and the remaining Hong merchants will have difficulty in preserving their businesses as well as settling this huge demand. They are all family men with responsibilities who have traded sensibly. On the other hand we have compassion for the foreigners and wish to put an end to the debts and establish new clear regulations to prevent them again arising so the foreign trade may again flourish.

The continuing Hong merchants are ordered to apportion the debts of $2,320,086 between the Yen brothers and consult on how repayment will be made. They will identify any debts they themselves have with foreigners and settle them by instalments. And they will clearly impress on the foreigners that Hong merchants are forbidden to incur debts. They will also examine the extent of duties unpaid and how they are to be paid. They must act honestly, then Chinese and foreign traders will receive equal advantages; deficiencies will be avoided and private property will remain secure. The Hong merchants must consult to bring this situation about and report to us so we may form appropriate regulations for the future conduct of trade.6

Vol 10 No 43 – 24th October 1837

Letter to the Editor – I had a man tied-up on my ship as corporal punishment. Several of the crew rescued him believing I had no right to administer corporal punishment unless it was expressly allowed in their Articles. The crew said I could confine them or limit their diet to bread & water or any other thing except corporal punishment.

It is an old truism that those who dictate the extent of their obedience are not the governed.

I determined to appeal to Capt Elliot as the British authority at Canton and request him to instruct the men on the extent of my powers as Master. He came on board and obliged. He even went so far as to delegate to me his own powers (as successor to Napier) in respect of British seamen. His intentions were wholly beneficial and he knew me as the senior commander present of the old East India Company fleet.

When the men continued to resist at sea I deprived them of food. They requested discharge and I refused. For nearly 48 hours the crew went without food. I think they really believed they had resisted an illegal order and were patiently submitting until an opportunity for redress arose. I assembled the crew and put this to them and they admitted it. I told them the coercion I was applying would be kept in force until I had their complete co-operation. If any one of them damaged the ship I said I would shoot him.

On return to Lintin the five men were taken away by Captain Elliot. They had hitherto been good men and on Capt Elliot’s suggestion of their penitence they were allowed one by one on board to express their contrition before the rest of the crew. They were then taken back on crew and have since been satisfactory seamen.

It is being rumoured about that I mistreated my crew and that Elliot exceeded his powers. Every Ship commander will recognise that Capt Elliot’s intervention represents a positive advantage to Masters whilst at Whampoa.

Sgd Robert Scott, Commander Abercrombie Robinson, at Lintin

Vol 10 No 44 – 31st October 1837

Arrivals – James Matheson arrived from Liverpool per John O’Gaunt

Vol 10 No 44 – 31st October 1837

Notice – Kin Qua the Hong merchant died 21st October aged 77 years.

Vol 10 No 44 – 31st October 1837

Letter to James Matheson, Liverpool 18th June 1836:

In April 1835 I reported to the Chinese government my rescue from the Belvedere Shoal in February 1822 of 198 Chinese from the Amoy junk Tek Suen. On that former occasion, I was the owner and master of the Indiana, 368 tons, and was taking 175 chests of opium to Borneo for sale which would certainly have produced 100,000+ rupees profit. At dawn 7th February I saw the sea was covered with bodies for miles around. We finally got 198 people on board, all in a state of exhaustion and injury. We learned they had been in the sea for 36 hours. I diverted to Pontianak (west coast of Borneo) and after three weeks we arrived and discharged the survivors.

This diversion caused me to arrive late in Borneo by which time the opium demand had been satisfied by others and I lost £11,000 on the expected proceeds of the cargo, excluding the costs of maintaining the ship, crew and distressed people. The Dutch King gave me a medal as the rescued Chinese had previously lived at Batavia.

I understand you will use your influence with the Hong merchants to obtain a pecuniary award from the Chinese government to relieve my financial distress. Lord Palmerston instructed the Superintendents two years ago to the same end but unsuccessfully. Sgd James Pearl, Commander Royal Navy.

Editor – Captain Pearl served on the Neptune at the Battle of Trafalgar. He volunteered to break the boom in Aix roads and steered the Mediator (a fire ship) which commenced the destruction of the French fleet. During the Walcheren expedition he commanded the boats of the advanced squadron and destroyed the enemy flotilla off Batz. He was recognised by the Indian government for his services in the Burma war when he commanded the transports and later helped storm the capital of Arakan province. He has been called to receive a knighthood from the Queen on 18th July 1838.

Vol 10 No 44 – 31st October 1837

Letter to the Editor – A subscription list has been opened at the offices of Jardine Matheson to collect donations for Captain Pearl.

Sgd Captain Christopher Biden, 27th October 1837

Vol 10 No 44 – 31st October 1837

The General Chamber has published a statement of American trade at Canton 1st July 1836 – 30th June 1837.

This suggests imports totalling $3,678,696, including $460,000 silver, were sold and Chinese exports of $8,025,869 were bought.

The trade was conducted by 11 general cargo ships going up to Whampoa, 63 rice ships at Whampoa and 22 other ships at Lintin.

Vol 10 No 45 – 7th November 1837

Letter to the Editor – The decline of discipline amongst English sailors at this port over the last ten years has become unacceptable. These days lawless crews follow one daring excess by another still greater crime. They accept no authority. When one is disciplined, the others revolt. They put their own constructions on every clause of our Maritime law and dispute with their officers. Commerce is the source of England’s rise to power. It must be cared for and managed in a coherent way. Life on a ship is unnatural and must be properly structured.

Dealing with the perils of the sea and with the stress of living in a small community is achieved by strict order. There is no room for trite quibbles about legislative intent. The reform movement is working to mitigate the severity of lawful punishments on seamen and this has stimulated the crews to rebellion. Sir James Graham’s Bill is manifestly in favour of the seamen over their employers and prescribes instant justice on owners and masters while any penalties of seamen are prospective (at voyage’s end) and uncertain.

The seamen themselves recognise the need for discipline - the mutiny at the Nore was only maintained by the leaders flogging dissenters. Recent precedents confirm the efficacy and legality of corporal punishment. A ship is not a democracy. The state of our merchant marine is derogatory of the British character and the principles of integrity and security must be reasserted.

Sgd Capt Christopher Biden, Canton 3rd November 18377

Vol 10 No 45 – 7th November 1837

Letter to the Editor – M/s MacLean and Layton were travelling from Macau to Canton in a ferry boat when they were stopped by officials in a patrol boat and their ferry searched revealing a cargo of opium. They were escorted back to Macau and Elliot had to undertake to produce them before they could be released.

Our only way of travelling between Canton and Macau is by chop boats. We have to give prior notice of departure and allow our personal effects to be scrutinised on embarking and disembarking. Searching may also occur at two stations in the river. We must protest this additional unexpected searching by patrol boats. How can we distinguish between an official boat and a piratical boat? MacLean and Layton might reasonably have resisted the patrol boat officers but had any one of them been killed our colleagues could have been judicially strangled.

The fact that opium was discovered is irrelevant. Ferryboat operators habitually take every kind of cargo without the knowledge of the passengers. Had the officials at the designated search places done their job properly it would have been discovered earlier. If you say that no inconvenience beyond a brief detention has occurred, I say how can we be expected to submit to unexpected searches? Only the expected searches are legal searches. We should resist all others and protect our nationals when they are endangered by such resistance. The Chinese government should be informed of our determination in all such cases. Sgd J

Editor – this is not just a right of resistance, it is a duty.

Vol 10 No 45 – 7th November 1837

Editorial – It is widely rumoured recently that some British merchants are proposing to commence a trade in tea. The Hong merchants themselves are reluctant to commence business with the tea merchants yet. What insanity is compelling these foreign merchants to step-in? Have we not learned over the last two years that delay in trading at Canton carries no danger?

Many foreign tea buyers are concerned for the interests of their constituents. It would be rash to ignore past experience and jeopardise the trade for some small advantage. We cannot have small groups pursuing their self-interest at the expense of the rest. We must act unitedly to resist the combinations of Chinese traders, who have the support of the law and the encouragement of local officials.

The General Chamber may not be empowered to direct trade but it can publish recommendations to deter speculators. A delay in commencing buying of 6-8 weeks will bring prices down to a reasonable level. We had 60 million pounds of tea in stock at 1st January this year. We shipped 38 millions last year. The estimated annual consumption is 40 millions. Our existing stocks are quite adequate to allow for a delay in opening the market this year.

Vol 10 No 45 – 7th November 1837

An edict of the Hoppo dated 25th September and just to hand protests the ‘perverse, rebellious and traitorous’ foreigners Jardine, Dent and Turner who continue to reside in the factories. He ordered them to be instantly expelled.

Vol 10 No 45 – 7th November 1837

The General Chamber’s annual report:

  1. In response to popular requests, the Chamber committee has bought the old India Company clock for $1,000. The clock tower is dilapidated and the British Commission requires its space for their own purposes. The clock will be erected elsewhere at an additional cost of $1,000 approx. Its new location is less visible but is the best available.

  2. We have negotiated with the Hong merchants over the state of the area in front of the foreign factories. The Hongs say they employ cleaners daily and two boats are retained to remove dirt. If foreigners see any neglect they should report it.

  3. The Hongs were also asked to remove the loiterers. They made an attempt but the strollers resisted forcefully and the Hongs say they must concede that there is no monopoly of use on the area by foreigners.

  4. arrangements for the new Post Office are still continuing. Capt Elliot has agreed to restore the regular ferry boat service on which the distribution of mail depends.

  5. The committee has corresponded with its contemporaries in Singapore, Bombay and Calcutta. Bombay has enquired about losses sustained by its members engaged in Malwa sales. They suppose Chinese appreciation of the Drug differs from the opinion of the inspectors at Bombay. We have prepared samples of the popular type and sent them to Bombay for their information.

  6. we have previously published our recommendations for 1/ lay-over times of shipping at Lintin and 2/ for procedure to be followed at Whampoa to avoid delay in obtained Port Clearance.

  7. The committee was asked whether commanders of foreign ships at Whampoa had a duty to detain crewmen suspected of murdering Chinese. The committee reiterates its opinion that the enforcement of Chinese law is a matter for the Chinese. No commander should detain any seamen without undeniable proof of his culpability.

The Chamber has provided mediation etc., to settle the following disputes:

  1. Facts: A delivery order for opium was given to a Chinese in the usual course of business. He sold the order to another who actually took delivery from the receiving ship. Some months later, when the sheepskin cover was untied and the chest opened, a deficiency of six balls was discovered.

Opinion: the final buyer gave a clean receipt for delivery. No action is maintainable against the original holder of the order.

  1. Facts: The committee was asked if the foreign issuer of an opium delivery Order was liable only to the broker he directly sold to or also liable to subsequent purchasers of the order.

Opinion: The issuer is liable to the holder whoever he might be.

  1. Facts: The Chinese holder of an opium Delivery Order sold his title and six weeks later the buyer came to the receiving ship for delivery. Partial delivery per order was given that day and the remainder was provided from another shipment of similar quality. The committee was asked can the holder be compelled to take the similar opium or is he entitled to compensation?

Opinion: The delay precluded the holder from insisting on the contracted supply.

  1. Facts: When a consignee sends produce to his Canton agent for sale with the return to be made part in produce and part in Bills of Exchange, is the consignee allowed interest on the cash part of his return from date of sale of his original goods?

Opinion: It is not the Law Merchant at Canton to allow interest on balances unless specifically agreed. A minority opinion of the Board fixed the period on which interest is calculated at 365 days a year, not 300 days (i.e. including Sundays and Public Holidays).

The matter of compensation for shortage and damage to tea shipments was also considered. H H Lindsay, who formerly served the India Company, said the company used three methods to adjust claims:

  1. One, in respect of fraud (for example where the chest was found to not contain tea), the Chinese seller provided two chests for every worthless chest. This accords with historical American practice.

  2. The Americans now assess the actual loss by calculating the sale value of the missing tea at destination. To this they add interest at 1% p m or calculate the exchange at the place of settlement at the current rate of Bills drawn on Canton. The committee recommend adoption of the new American practice for assessment of principal and the Canton Bills rate for interest.

  3. In cases of claims for insolvency the committee recommend that publicity be used to expose the debtor for the protection of the community and, when appropriate, creditors should pursue their legal options in those jurisdictions that can provide a valuable remedy.

Vol 10 No 45 – 7th November 1837

Editorial - Pekoe is the Fukienese pronunciation of the Mandarin Pih Hau, ‘white down’. It refers to the very fine velvety covering found only on the early leaves when they first sprout in Spring before the rains. It applies to tendrils obtained from the first harvest. The best kind is called Keun Mei and can be very expensive.

Vol 10 No 44 – 14th November 1837

Advertisements:

Vol 10 No 44 – 14th November 1837

Editorial – We published the report of the General Chamber last week. An extraordinary omission was the absence of comment on the India Company’s Bills Agency which was one of the first matters to be referred to the committee for an opinion. We suggest the activities of this Agency be advised to the Emperor, to the Hong merchants in Chinese and to the Chinese public generally through Gutzlaff’s Chinese Magazine.

Vol 10 No 44 – 14th November 1837

Edict of Hoppo Wan:

The Emperor has been told that society in Kwangtung province is decaying due to six things.

  1. First, the Sam Hup Wui (triad society), a hierarchical association of extortionists;

  2. second, the grain tax is collected by the magistrates not in grain but in silver;

  3. third, the system during shortages of providing food from public granaries;

  4. fourth, the revenue cruisers do not prevent smuggling but protect it;

  5. fifth, the salt monopoly is maladministered and

  6. sixth, the Customs duties are evaded by Jardine and other traitors who should be expelled with their store-ships.

The Emperor commands we investigate all these allegations, correct the errors and re-establish tranquillity. Regarding the sixth allegation, I will examine all my staff to see if any has sold his official pass to Chinese traitors to attend Jardine, Dent, Turner or Matheson in the factories to arrange smuggling business.

The Hong merchants have already been ordered to expel Jardine et al but they delay and still the date of the foreigners’ departure remains uncertain. They imagine this Imperial order is a trifling affair. It is apparent they are conniving at some secret business. This is a case that originated with the Emperor and must be complied with. No delay is excusable.

Vol 10 No 47 – 21st November 1837

The office of the Canton Register is removed to 2 Creek Hong. The old office in the upper part of 5 Danish Hong, comprising an entrance hall and six rooms, is to let. Contact John Slade, the Editor.

Vol 10 No 47 – 21st November 1837

The chaplain on the establishment of the British Commission arrived last week. He is George Henry Vachell. He will conduct services every Sunday afternoon at the Superintendents’ Hall.

Vol 10 No 47 – 21st November 1837

Letter from the Hong merchants to the banished foreigners:

The Emperor has ordered you away and we have to report your departure to Him. We have written to you three times on this subject. A month has elapsed and still you are here. We are now explicitly required by the Viceroy to fix a date for you to go.

Vol 10 No 48 – 28th November 1837

Advert - The Company’s treasury has reopened for advances on Bills of Exchange secured only on tea and Nanking raw silk for England, subject to our usual terms and conditions for advances in China. Exchange rate is 4/7d per Spanish Dollar. Payments will be received in cash only. Dated 25th November

Vol 10 No 48 – 28th November 1837

Notice - Any claims on the estate of the late Captain McKay of the brig Fairy should be sent in to Jardine Matheson & Co for adjustment.

Vol 10 No 48 – 28th November 1837

Andrew Jardine arrived per Eliza Stewart, which departed London 26th June. On arrival Lintin, Passenger Storm drowned while disembarking the ship.

Marquis Camden (Gribble) arrived from Madras.

Vol 10 No 48 – 28th November 1837

Editorial – the threat of the Viceroy to stop our trade has been partly withdrawn and is now presumed to be of the same meaningless character as the other threatening Edicts of the last 15-16 months. To give effect to it in Kwangtung and Fukien, even for one season, will irritate that part of the population that relies on the foreign trade and tend to enhance the risks of rebellion. It is accordingly inconsistent with the fundamental policies of the Emperor. It also risks failure with concomitant effects on the respect and authority that the people give to officials.

There have been constant insurrections in China this few years. This state of things cannot endure for many more seasons. Its just a matter of who blinks first. English ministers will be concerned to preserve a valuable and profitable trade and avoid the social and political consequences of losing it. The East India and China Association in London has proposed another Embassy and ministers are considering it. The Association says the Ambassador should be permitted to use his discretion about performing the kow-tow which Staunton, Morrison, Davis and most recently the Chinese Repository have clearly established is an act of fealty and worship.

These Association members are some of the leading merchants of England. We should not be surprised if they recommend Queen Victoria be admitted to an Imperial harem as well - if her ambassador is to submit, she should also. This is not what the free trade wants. England should not be tributary to China.

Vol 10 No 48 – 28th November 1837

Edict of the Viceroy, 20th November 1837:

The State Council has notified the Imperial will that the opium ships be expelled. The Emperor ordered the Hong merchants to give Elliot a month to get rid of them. Now two months has elapsed and they are still there. Elliot says he cannot report our commands to his King. This is gross contempt.

Now we have received another Imperial Edict noting the fast crabs have been eliminated but the traitorous brokers and other smuggling ships still remain:

“Officials must identify and arrest the guilty. If they allow this state of affairs to continue much longer I shall hold them personally responsible. All the smuggling ships must be destroyed. Do not be content with a few seizures. Respect this.”

We now recite our orders to the Hong merchants for Elliot. He must control his people and respect our law. He is to report when the ships have left. There can be no further indulgence given him on this matter. If he does not comply very soon, we must stop the foreign trade at Whampoa.

How can Elliot watch the unrestrained illegalities of his depraved people and continue to resist the Emperor? Is he sheltering them? Do we have to expel him as well?

Our society is based on law and I, the Viceroy, will enforce its provisions firmly and without indulgence. If the Hong merchants cannot influence and instruct these foreigners in their behaviour in China and so allow their continued disrespectful illegalities, they also will be punished.

Vol 10 No 48 – 28th November 1837

At the recent AGM of the General Chamber it was proposed by MacLean, seconded by James Matheson, that the Chamber support the East India & China Association’s letter to Palmerston requesting the end of the Company’s Bills business at Canton.

Secondly, Matheson proposed seconded by Dent, that the effects on our commerce of an English ambassador performing the kow-tow at Peking be evaluated.

Vol 10 No 49 – 5th December 1837

Notices:

Vol 10 No 49 – 5th December 1837

Public letter to British subjects at Canton:

I am instructed by H M Government to propose to the Viceroy a means of communication with him. He declines to accede to my proposals. All direct communication has been forbidden. I wish to reassure you all of my sincere wish to assist and counsel you. I commend you to solicit from the provincial government a definite explanation of intentions concerning Hing Tai Hong’s debts. I should like to attach to my report to London (on the lack of communication), a statement from yourselves regarding progress in settling your claims. Sgd Charles Elliot, 29th November 1837

On Saturday 2nd December Elliot left Canton for Macau. The reason for his departure is shown in the public letter above. He was farewelled by most British and many American residents. The Viceroy’s discontinuance of direct communication permits Elliot to ignore the Lintin complaint. International law should provide us with strong grounds for remonstrance against this act of the Viceroy.

Vol 10 No 49 – 5th December 1837

The General Chamber has considered various enquiries by members concerning their responsibility for the quality of goods they ship as Agents.

It opines the Agent is obligated to use due diligence and professionalism in his work for his Principal. It considers that the proper forum to adjust any claims should be in China.

Vol 10 No 49 – 5th December 1837

On 30th November Jardine et al memorialised the Viceroy on Hing Tai Hong’s debts:

‘We rejected the Hong merchants’ proposal for settlement over 15 years. Now we are concerned at your threat to stop British trade and expel our national representative. Please grant us justice in the settlement of our claims.’

Viceroy Tang replies:

‘I have ordered that Yen Ke Tseang be produced to answer your claims. Even if the Yen brothers are found they may not be capable of restitution, which will then fall on the other Hongs. The Hong merchants can only pay what they can pay. Nevertheless I have asked the Hongs for their best offer and told them I desire payment of your claims be guaranteed by them but they should not be destroyed with onerous requirements.

Many of you foreigners are depraved and ignore our laws to achieve your own ends. Yet as soon as you get into difficulties you apply to our law for help. We have repeatedly asked you to remove your opium fleet and have been repeatedly ignored. If your Commissioner does not soon effect its removal, I shall apply to Peking to stop your trade. The resolution of your problems somewhat depends on your own conduct.

I do not connect the Hing Tai debts with the Lintin fleet, but I will maintain the dignity of my government. I will deal with you fairly and your debts will be settled to the last penny. The Hong merchants are ordered to review their proposals and identify what improvements they can offer. 1st December 1837

Editor – this is an unsatisfactory response. The Viceroy intends that the Canton system is not impeded by the settlement of our claims. He brings in the Lintin system and then says the two things are unrelated. We suspect he is saying ‘you get rid of the smuggling base and I’ll settle your debts’. This kind of double-dealing is deplorable.

Vol 10 No 49 – 5th December 1837

John F Davis, formerly Chief Superintendent of British Trade, has been elected to the council of the Royal Asiatic Society.

Vol 10 No 49 – 5th December 1837

Letter to the Editor – The Scottish community has celebrated St Andrew’s Day with a dinner. Elliot gave an amusing speech afterwards. He inter alia said the British government is considering action to remove the restrictions on the opium trade. Sgd Anonymous

Vol 10 No 50 – 12th December 1837

Dutch imports to and exports from China for the calendar year 1836:

Imports – Rice 102,392 piculs; rattan 7,481 piculs; sandalwood 2,736 piculs; pepper 2,100 piculs; cotton 699 bales; opium 10 chests.

Exports - tea 14,000 chests; umbrella 28,000 pcs; bags 180,000 pcs; floor tiles 14,000 pcs; opium 72 chests;

Vol 10 No 50 – 12th December 1837

A pamphlet Trade with China by G Tradescant Lay has been lent us by the author. He was formerly the naturalist in Captain Beechey’s expedition and now represents the British and Foreign Bible Society in East Asia.

Mr Lay’s concern is to promote the Bonin Islands as our colony for East Asian trade. The islands provide easy access to Japan, Loo Choo, Taiwan and China. The problem is that the only product we have that finds a ready market is opium and he believes its sale excludes other commodities by diverting all available capital to its purchase.

Vol 10 No 50 – 12th December 1837

Editorial on the India Company Bills Agency in China. We will summarise all the advertisements placed by the company for sale of Bills over the last four years to illustrate the baneful effect of this unnecessary extension of local credit:

Advertisement

Comment

14th October 1834 – The Court intends to make advances of cash on cargoes shipped to England. Some traders have applied for these facilities. If they now make application we will let them know the terms.

This advertisement was concurrent with Napier’s funeral. Which professional merchant would apply for funds before knowing the rate of exchange, etc? The real purpose was to transfer the company’s cash to Daniell & Co to disburse. An application was made and three days later the following advertisement was placed ….

18th October 1834 – The Company’s Agents will make limited advances on ‘first come, first served’ basis at 4/7d per dollar

This allocation of funds was taken up in its entirety by the Company’s senior agent, J N Daniell of Daniell & Co

1835 season – 30-day sight Bills on Calcutta available at 208 Sicca Rupees (SRs) per $100 Spanish.

In May 1835 the rate became 206 SRs and in August 210 SRs.

In September they offered 2/3rds finance (¼ cash, ¾ Bills on Calcutta) at 4/8d per dollar on tea or raw silk to England.

The terms required shipment of tea/raw silk before 31st December which is in the middle of the season when teas are still arriving at Canton. The company itself had often bought tea in the new year – why was the free trade restricted?

The ‘first come, first served’ principle was maintained causing some applicants to apply for more than they needed, whilst others, supposing they were too late, omitted to apply at all.

24th Dec 1835 – the availability of advances for trade finance and Bills for silver is extended to 31st March

The take-up of funds had been inadequate and the time limit was extended to sell more Bills and loans.

15th March 1836 – the time limit for trade finance is further extended to 30th April. The time limit for buying Bills was not extended

The non-availability of Bills caused the exchange rate per $100 Spanish to fall from 210 Sicca Rupees to 206 Rupees

19th April 1836 – the treasury will be reopened for sale of 30-day Sight Bills at 220 SRs per $100 Spanish secured on up to 2/3rds of the value of tea or raw silk exports at 4/8d per $1. Up to 50% value will be advanced in cash, the balance in Bills

This received a flood of applications

28th May 1836 – open for 30-day sight Bills on Calcutta at 218 Current Rupees (Current Rupees) per $100 Spanish. Trade finance for tea and raw silk exports continues at 4/8d per $1 on up to 2/3rds of consignment value.


29th August 1836 – trade finance to 2/3rds of value at 4/7½d per $1 for goods shipped before 31st December 1836. 40% will be paid in cash; balance in Bills on India at 220 Current Rupees per $100

This was concurrent with the black teamen’s cartel raising the prices of tea. The time limit of 31st December forced the free traders into deals at inflated prices.

26th September 1836 – Treasury closed for both receipt of cash and sale of Bills


7th October 1836 – Treasury open for sale of Bills at 218 Current Rupees per $100


25th October 1836 – Treasury Bills rate improved to 220 Current Rupees per $100


31st December 1836 – Treasury closed.

The Agents had expended all the cash they held and could no longer finance trade. They then offered Bills to obtain cash first at 224 Current Rupees and later at 230 Current Rupees thus devaluing their previous Bills (at 220 Current Rupees) by over 4%.

12th June 1837 – Treasury open for sale of Bills at 218 Current Rupees per $100


2nd August 1837 – Bills for sale at 216 Current Rupees per $100


6th October 1837 – treasury closed.


25th November 1837 – Finance available for Bills secured on tea or raw silk at 4/7d per $1. All payments in cash. Tea cargoes must be certified by Layton or Reeves.

Only Layton is employed by the Company’s Agent. Reeves was by this time already a partner of Dent & Co. He had a duty to Dent’s constituents to make a profit. This is a gross case of jobbing. Weeding has protested to the Court and we hope he will be upheld.

The Company’s agents, who can hardly be distinguished from the Superintendents, are ruling over the free trade and damaging its interests.

Vol 10 No 51 – 19th December 1837

Editorial – supporters of the Company’s monopoly say it provided certainty in the supply of good quality teas to England. The free trade shipments, many of which comprise inferior goods, have shocked the home market but the economists plausibly assert that demand will regulate both the quality and quantity of supply. We believe this is true.

How then is the inferior free trade tea to be explained? There are 5-6 tea inspectors at Canton amongst whom are the Company’s two former tasters. The Company used to reject inferior tea and never bought it, even at reduced prices. It appears this is no longer the case. We have received a letter on the subject:

Letter to the Editor – I estimate the English tea stock at 1st April 1837 at 50 million pounds. I estimate consumption at about 40 million pounds and imports during this year to approximate 35 million pounds. At 1st April 1838 there will still be over a year’s supply on hand. Prices increase if no tea is imported but a reduced import of 10 million pounds will prevent this while an import of 15-20 millions will push prices lower. I believe the price of tea under the free-trade system has not yet been established. The tea duty has been changed from ad valorem to fixed rate and this should stimulate import of higher quality teas but if the quantities imported remains high, prices of the most popular types will have to fall.

Silk sales are more natural because silk is not so heavily taxed. A decrease in price will soon cause an increase in consumption and it is in any event a luxury commodity. The poorer people would routinely chose to wear cotton or wool. With tea there is no alternative. There is no market for coffee in England to displace tea.

Vol 10 No 51 – 19th December 1837

Local news – on 12th December 40 Englishmen attended at the Water Gate of the City to deliver a protest to the Viceroy against the seizure about two years ago of goods being trans-shipped between vessels at Lintin. The officials refused to accept the petition direct but only from a Hong merchant. The leader of the foreigners, James Innes, refused to do so but agreed to withdraw the protest if the Viceroy personally confirmed that petitions could only be submitted through the Hongs. The Viceroy’s confirmation was not available and the forty then took a vote and agreed unanimously not to petition through the Hongs. After two hours the foreigners withdrew.

The following day Innes was informed of an Edict of the Viceroy reiterating the ancient law on petitions (that they be submitted through the Hongs) and noting that foreigners had in recent years become presumptuous and sought by every means to change the law. ‘The foreigners are treated fairly and should be grateful. The laws of China are not fixed by foreigners’, the Viceroy said. ‘Is the foreigners’ business impeded by compliance with the law?’

“They are reminded yet again to follow the law – they should seal their addresses, date them, and deliver them to the senior Hong merchants for submission. The senior Hongs are also reminded that they must deliver all foreign addresses timely. None of my staff will receive addresses direct.

“You should obey the law and not create trouble for yourselves by disobedience. Foreigners should also recall they are strictly prohibited from entering the city walls. There is a law against it which I will enforce with whatever punishments are necessary to obtain compliance. You may not be disorderly and do as you please. You have been warned.”

Sgd Tang, Viceroy of the Two Kwang, 13th December.

Vol 10 No 51 – 19th December 1837

Protest of the Hing Tai Hong creditors, 2nd December:

Jardine and others complain to the Viceroy that they fear payment of their debts is being linked to Elliot’s performance of the Viceregal order to expel the opium ships:

“The Viceroy said we would be paid ‘to the last penny’ but the Hongs said we will be paid without interest over 15 years. In a bankruptcy, the sureties take over the liabilities of the bankrupt. The sureties in the Canton system are the continuing Hongs. They levy a tax on the foreign trade expressly to settle the costs of discharging bankrupts. No claim has been made on this fund for three years - it must now be a large sum.9 The officials also levy arbitrary heavy charges on the foreign trade. How can it continue like this?

We are legally restricted to a few Hongs for business. You should compel them to perform their engagements but we note the senior Hongs no longer secure ships nor purchase cargoes.”

The Viceroy replied, 17th December 1837:

“On reading this, I believe the foreigners assume the Hong merchants generally are their debtors. If Hong merchants decline to accept responsibility for others’ debts, to whom will they turn? The Consoo Fund they refer to is either money belonging to the Hongs as a body or is money levied for some public service. I have not heard of a Consoo Fund before but I will ask the Treasurer to advise me.

“They say fifteen years is too long for repayment. I have asked the Hongs to reconsider their offer. I have previously expressly said that Hing Tai Hong and Elliot’s disobedience are separate matters. Now the foreigners again ask the same question. They should desist from submitting confused memorials.”

Vol 10 No 51 – 19th December 1837

Editorial – G T Lay is promoting the Bonin Islands as our future emporium in the China Sea. Others prefer Taiwan, which is currently in anarchy.

Long-term Chinese settlers on Taiwan say there are three separate native groups. At the north of the island there are constant battles between Chinese and aboriginals. Chinese officials pay $20-$30 for each native head surrendered while the natives award a young and fertile girl to the man bringing in a Chinese head. The Fukienese conduct a dangerous trade in which the natives supply hides, nuts and camphor and the Chinese barter cloth, gunpowder, spirits and string. The Chinese are attempting to assert their hegemony over the natives by conquest. It would be right for England, rather than let the island fall under Chinese mismanagement, to occupy Taiwan herself and provide a similar administration to the Dutch in Java or the Spanish in Luzon.

Until this can be achieved we could make-do with the Bonin Islands.

Vol 10 No 52 – 26th December 1837

The over-supply of tea to England, encouraged by the Company’s cash advances in China, has finally moderated. 8 ships have left, 14 are here loading, and six ships which have never loaded tea are likely to do so. We calculate that only 24 million pounds will be shipped this season.

Vol 10 No 52 – 26th December 1837

The Hongs reported to Viceroy Tang on his order for the expulsion of the opium fleet:

“We enjoined your instructions on all the foreign nations. Now the period allowed has elapsed and no foreigner has indicated when the ships will sail. We asked for their reasons and they said the opium ships do not belong to them. When we gave them our orders they forwarded them to the commanders of the opium ships at Kum Sing Mun, Kap Sui Mun and Lintin and they went away. Later we received the Viceroy’s order for the ships to go by a fixed date and we also forwarded it but the foreigners say they do not know whether the ships actually went. The Viceroy has treated the foreigners indulgently yet they ignore his orders with frivolous replies that the ships do not belong to them. It is right that they be punished.”

Viceroy Tang replies, 22nd December:

“I see the Superintendent still delays. This is contempt for our law. The Emperor has ordered the ships away. I must request Him to end foreign trade so Elliot’s greedy thoughts can be laid aside. But I do not wish to punish all promiscuously. Not every nation has receiving ships at Lintin. The Hong merchants are to prepare a list of those foreign nations that come to Canton for trade but which do not employ receiving ships. Then I can craft an appropriately focused response to foreign evasiveness.”

Vol 10 No 52 – 26th December 1837

General Chamber resolution concerning tea and silk trade, 22nd Dec 1837:

Firstly, It has become fixed through the long practice of the Company that only Hong merchants are permitted to own boats to load and offload foreign ships; only Hong merchants are permitted to own warehouses for the storage of our imports and exports, and only Hong merchants are permitted to employ all the Chinese people involved in the foreign trade. It follows it is the Hong merchant who has possession of our goods from the moment of discharge from our ships. These goods usually spend a night on the river in the care of boatmen before they are delivered to the Hong merchant’s warehouse. It is the same with our purchases. This period of unsupervised exposure facilitates fraud.

Secondly, the value of tea depends on the time of year it is bought, the economic conditions in our markets and the capricious taste of consumers. The most skilful foreign judges cannot agree on its value. It is the same with silk. The quality of raw silk varies depending on where it is made and the packaging used. It is seldom uniform.

Now some English importers have refused to accept consignments of tea and raw silk that they ordered and they have declared the risk lies on the Agents at Canton for shipping goods of inferior quality to those ordered.

The General Chamber has passed the following resolution:

Provided the Agent in China has exercised due diligence and attention in his selection of goods, the response of the British importers is unjust and unreasonable, and in future it will be a term of business for tea and raw silk sales from Canton that the Agent will not be responsible for any alleged discrepancy in quality unless it is also proved that he failed to exercise due care, etc.

Sgd Jardine Matheson & Co, Dent & Co, Turner & Co, Fox Rawson & Co, D & M Rustomjee & Co, Lindsay & Co, Russell & Co, Russell Sturgis & Co, Wetmore & Co, Gordon & Talbot, S van Basel Toelaer & Co, Dirom & Co, Gibb Livingston & Co, Bell & Co, J & W Cragg & Co, Eglintin Maclean & Co, H & N Cursetjee & Co, Bibby Adams & Co, Jamieson & How, Daniell & Co, Robert Wise Holliday & Co, Ilberry & Co, James Innes, Wm Macdonald, G G Nicoll, John Slade, W Haylett, J M Bull, A H Crawford and W Henderson.

Vol 11 No 17 – 24th April 1838

The Englishman, Calcutta, 13th February – The Canton General Chamber says its members will not be responsible to buyers for inferior quality of goods received from China. They made this resolution after filling orders from England that were rejected on delivery. This type of dispute is settled in Court, not by vote of the Chamber.

If the China traders received money with orders they may succeed in their claims, but if they simply received and executed orders on trust, they will be held to the letter of their instructions and no resolution of the Chamber can save them. They should explain the Canton trade system to their buyers.

They are victims of the falling market in England. Whenever times are hard, buyers will seek for ways to renege on their engagements.

Vol 10 No 52 – 26th December 1837

Letters to the Editor:

  1. I am astonished by the apathy of the creditors of Hing Tai Hong. H M Commissioner invited them to meet to consider Hing Tai’s affairs and to consider the affairs of the other Hongs and he agreed to forward their conclusions to the Viceroy. They have not met, they have not prepared a memorial.
    It may have done no good but it could not have done any harm. It would have indicated they are doing everything possible to recover their money. We should co-operate on these problems. Almost any one of the Hongs could become bankrupt tomorrow. We should guard against the evident procrastination of government.
    There is another matter being played out apathetically – Elliot’s withdrawal from Canton. His support can be judged from the huge number of merchants who saw him off. But he intended the whole commission should withdraw, not just himself.
    His deputy Johnstone is still at Canton with all the ‘small fry’. The insignia of office – the large black board with gilt letters – remains on the factory door. It seems equivocal. The Chinese will think the striking of the flag and departure of Elliot are part of some charade.
    British interests are being inconsistently managed in China. Sgd Zosteria

  2. It is rumoured the reintroduction of opium wholesaling at Whampoa is the cause of the Hing Tai creditors being so moderate in their attempts to recover the Hing Tai debts. It is certain their attempt at the City gate produced nothing more than dissatisfaction. The law is that the Co-Hong discharge the debts of insolvent members but 15 years is too long. Many creditors and both senior Hong merchants will likely die before repayment is concluded. The remaining Hongs were said in the Consoo House today to be insolvent already. The creditors should be focusing on the Co-Hong and pressing their case. Howqua is bound to pay. In effect he and the others have become the debtors. Sgd No Creditor, 22nd Dec

Editor – The Canton Register has consistently called on the British government to protect Britons in the China-trade. The Hing Tai Hong creditors are said to be agreeable to settlement of their claims by periodic payments over 5 years. This is a surrender of British property to the chicanery of the Hongs, the Consoo Fraud and the rapacity of local officials. We are mere merchants - we cannot work out our own salvation without help. We are daily becoming weaker and more contemptible to the Chinese.

We hear some Hing Tai creditors propose petitioning the Queen. Such an appeal will be heard in the Commons. Their petition must catch the attention of the legislators and draw forth their best advocacy. Only then can the English people be galvanised into support.


Vol 11 No 1 – 2nd January 1838

The Englishman, 12th October – It is said the Bengal production of opium will be increased over the next three years to 25,000 chests per annum so speculators may be assured of a gradually increasing supply.

Vol 11 No 1 – 2nd January 1838

Proposed opium sales by the Company for 1838, as announced Calcutta 18th November 1837:

-

2nd January

2nd February

20th April

20th May

20th June

Patna

4,600

n/a

n/a

n/a

n/a

Benares

2,400

n/a

n/a

n/a

n/a

Total

7,000

2,300

4,000

2,000

3,800

Vol 11 No 1 – 2nd January 1838

Editorial - The violation of free trade by the Company’s ‘Finance Committee’ has been exacerbated by the loss of the Company’s tea taster Layton.10 Must trade be stopped until he rejoins? Free traders requiring finance for their tea purchases must now use Reeves, a partner of Dent & Co, to value their tea. Reeves says he is going home this year, taking his knowledge of the free trade’s tea business with him. We have the choice of either revealing our business secrets to Reeves or abandoning our tea trade.

Vol 11 No 1 – 2nd January 1838

On 25th December Jardine and others petitioned about the hospital ship at Whampoa:

“It has long remained at anchor without returning home and has accordingly attracted several Viceregal edicts requiring its departure. Now the Hong merchants and linguists are continually requesting it be sent away. Elliot previously reported the facts of the case – he said the ship had been bought by the British King as a public service to the foreign community. It is unseaworthy and is used to treat our sick sailors. Its unseaworthiness is not such that it should be broken-up. As it belongs to our King we cannot do anything about it. Formerly the foreign traders were permitted to erect a bankshall on shore for treatment of sick sailors. Now there is only this ship for their treatment. If the Viceroy will permit the erection of bankshalls for hospital use we will forego the ship. If not, please stop the Hong merchants and linguists from threatening its expulsion.”

Viceroy Tang’s reply, 27th December:

In the summer of 1837 Elliot asked that a hospital ship be allowed at Whampoa. Formerly the foreign doctors lived at Macau and sick sailors applied for a passport to go there for treatment. No hospital ship was permitted at Whampoa. The Hoppo has ordered the ship away and I have told the Hongs to fix a 5-day limit for her departure. Kinqua (the security merchant for the ship) has repeatedly requested this limit be extended. If the ship’s hull has deteriorated let her be broken-up. Now the ship remains, she neither loads nor discharges cargo and breaking-up has not commenced. The foreigners simply say the ship has been bought with public money and they cannot themselves dispose of it without their own government’s instruction. The English King has hitherto been obedient. How can he now oppose our law?

This petition is nonsense. Any sick seamen will be sent to Macau for treatment. The ship should load a cargo and depart. If she is unseaworthy she should be broken-up. No permission for a hospital ship at Whampoa has been given. Obey the law. Do not be presumptuous or the Hong merchants will be punished.

Vol 11 No 1 – 2nd January 1838

Viceroy Tang, Governor Ke and Hoppo Wan have proclaimed on 27th December 1837 that foreign ships coming to Canton must completely load an export cargo before applying for Port Clearance.

“Foreigners come a long way to trade. It is unreasonable to bring a full cargo and purport to depart without one. Clearly traitorous natives are assisting these ships to load an export cargo at Lintin. Infrequently we permit a ship to depart not fully laden but this is a favour not a precedent.

“Lately the Eliza, Susan, Lord Auckland, William Huth and Syden have brought import cargoes of 500-800 tons but left with exports of 20-40 tons. The export duties paid on these ships’ cargoes were between 200 – 700 Taels each. Obviously ships coming a long distance must be worked efficiently. These paltry exports cannot be profitable. The owners are loading cargo elsewhere. The Hong merchants are employed to liaise with foreigners and report irregular transactions. They have a duty to China as well as to the foreigners. They cannot simply please the latter without satisfying the former.

“In the 1829-30 season the Hoppo’s revenue decreased 400,000 Taels compared with former years. We must take care to preserve our revenue to preclude an Imperial enquiry being made of us. The Hong merchants are instructed to report every article of export. If they allow ships to leave without full cargoes, those ships will be blacklisted, and the Hong merchants will not again be permitted to apply for their Port Clearance Certificates. Thus the Customs duties will be protected and smuggling deterred. If the Hongs secretly disobey and the revenue continues to fall they will be held solely accountable. We will enforce the law. Do not say you were not warned.”

Vol 11 No 1 – 2nd January 1838

Letter from the Hongs to Jardine:

We hear opium is now being brought to Whampoa for sale and we are required to make a detailed report to government. The involved ships, as reported, are the Edinburgh (Marshall), Lady MacNaughton (Hustwick) and Marquis Camden (Gribble) and they are all under your Agency.

Previously when we secured a foreign ship at Whampoa the captain gave us a written bond that he brought no opium and only after our receipt of it was the ship permitted to trade.

Please provide a bond for each of these ships so we may petition that they be allowed to trade. If no bond is available, we cannot help you.

Sgd 11 Hong merchants

Vol 11 No 2 – 9th January 1838

A parliamentary return just to hand shows the following receipts by the British Treasury for tea duty:

1830

1831

1832

1833

£3.387,698

£3,344,913

£3,599,834

£3,444,101

1834

1835

1836

£3,591,022

£3,837,460

£4,728,599

Vol 11 No 2 – 9th January 1838

There were six main items in Macartney’s instructions:

Those were our intentions fifty years ago. For the following 41 years, the Company monopolised trade. How far did the Company progress those national aims?

During the period Ponqua, Gnewqua, Conseequa, Exchin, Punkiqua, Manhop, Chunqua, Kinqua and Fatqua all became bankrupt whilst other Hongs were insolvent and unsafe depositories of British property. Chunqua and Exchin particularly owed the company and individual Select Committee members large sums. To obtain their settlement, the Company abandoned the traditional system of trade and this precedent left the free trade with no protection for its property.

We now have to deal with the insolvency of Hing Tai Hong. The Consoo Fund were first imposed on the foreign trade about 50 years ago. It was intended to raise a yearly fund from which dividends could be paid to Hong creditors. We think it should be axiomatic that taxes to provide compensation for Hong failures should be paid by the Chinese. Both import and export trade must be profitable if it is to continue.

Between 1823 – 1829 Conseequa, Pakqua, Punkiqua, Manhop and Chunqua failed with total debts of $2,669,496 which were paid off between 1825 – 1834 in full. The longest period for any one settlement (Manhop - $1,125,538) was six years. We will explain how the Hongs can again settle debts (this time of Hing Tai Hong) in six years.

Under the Company, whenever the Select, or a solvent Hong on its behalf, advanced 3,000 Taels per purchase order of tea to an insolvent Hong, the duty payable on that chop was fixed at 7 Taels 7 mace per picul. If no advance was paid, the duty payable was reduced to 6 Taels per picul. 4-5 Taels per picul was charged on winter teas.

Now if the Hongs today were to levy a constant 5 Taels per picul on all teas, avoid speculating on tea which has invariably lost them money, but act solely as brokers between the tea men and the foreign buyers, insisting on payment of the duty and Consoo Fund charge in cash immediately, they would very quickly pay-off all debts and become a solvent body of merchants. There is no need for a new insolvency tax.

Vol 11 No 2 – 9th January 1838

Letter to the Editor, 3rd January 1838:

A considerable foreign merchant of Canton who is a member of the General Chamber was in dispute with another smaller merchant who was not a Chamber member. Without continuing the correspondence between the parties, the member submitted his case to the Chamber for decision, unilaterally presenting his own case at the committee proceedings, voting in his own favour in the award and obtaining an ex parte ruling against the non-member.

Is this how the Chamber proposes to wield its influence?

Vol 11 No 2 – 9th January 1838

Protest of Jardine et al to the Viceroy:

The Hongs’ latest proposal is to liquidate Hing Tai Hong’s debt over 12 years. The customary level of interest payable in the foreign trade at Canton (12% p a) would amount to twice the principal debt over this extended period. This is contrary to justice and precedent. The laws that the Viceroy has alluded to concerning this matter are domestic laws which are inapplicable to foreigners.

The Emperor has said that all foreign debts must be paid and you have confirmed this is also your wish. We do not chose to trade with Hong merchants – they are foisted on us by your government. It is the Chinese government that should be responsible to settle our debts, exactly as the Emperor has promised.

You say the Consoo tax is collected to settle debts. For nearly four years there have been no claims on the Consoo Fund. The monies must have increased to a substantial amount. Justice requires this Fund be disbursed to the creditors of Hing Tai Hong in proportion to their claims. In former years up to $500,000 per annum was paid in discharge of debts. In 1829 payments exceeded $650,000. A similar level of payment over the next four years would settle our claims for principal and interest. In taxing off the interest our funds should earn, you are being unjust and not settling the claim ‘to the last penny’ as you promised.

Viceroy Tang’s reply. 6th January 1838:

The vicarious liability of one Hong for another does not extend to the payment of interest on debts. It is solely to discharge the actual capital debt. Your desires are unreasonable. The Hongs asked to settle in 15 years and I have reduced that period by 25%. In consideration of your protest, I have now asked the Emperor for guidance.

Vol 11 No 2 – 9th January 1838

Report of the Provincial Treasurer and Judge on Hing Tai’s debts, 29th December 1837:

Formerly, in the time of the Company, debts were settled agreeably. The Company’s trade was profitable to all parties. Now all the British merchants trade individually and each has his own debt and his own idea. Hing Tai and Fatqua owe 490,000 Taels to government for unpaid revenue. The foreign trade is no longer profitable like before. If the foreigners’ debts are preferred, when will the outstanding revenue be settled? If the settlement period is fixed at 12 years both foreign and government creditors can be settled together and the Hongs allowed time to recover their financial strength.

The former arrangement was that foreigners could trade only by barter with Hong merchants and at the end of each year they were to submit a note of any residual debts due from Hongs. Should a Hong subsequently fail, only those reported debts could be recovered in respect of the prior year’s trade. If the foreigners fail to submit their annual statements we have no knowledge of their purported debts. The Hong merchants are forbidden to lend to or borrow from foreigners. Such transactions draw them into secret business and are at the root of the smuggling. In 1829 the Company requested new regulations for trade. It asked that no Hong should be responsible for another’s debts but each should trade independently. The then Viceroy agreed to this proposal.

In the case of Hing Tai Hong no annual statements of indebtedness were provided by the foreign trade. No claims were notified during the seven years that Hing Tai’s debts were accumulating. Jardine now claims he is owed $1,700,000. Where did he find the confidence year after year to lend this astonishing sum and keep quiet about it? Clearly on the agreed regulations for trade very little need be paid to foreigners in liquidation of Hing Tai’s debts.

Nevertheless we help when we can and the continuing Hongs agree to make recompense in 12 years. Unless your hearts are made of stone, you should be overwhelmed with gratitude. If you continue to insist on expedited payment of this enormous sum, we really do not know what to think. In former years annual debt repayments were almost invariably about $200,000. You are being perverse. If the continuing Hongs refuse to contribute where will you be then? You should be more professional in your business. Nevertheless, we again order the Hongs to counsel you and settle your understanding of the period necessary for repayment.

Vol 10 No 3 – 16th January 1838

Notices:

Vol 10 No 3 – 16th January 1838

The recent seizure of 3 chests of opium in the river at Canton (Layton’s case) has been successfully covered-up and the Viceroy has not heard of it. Hopefully there will be no adverse consequences.

Vol 10 No 3 – 16th January 1838

Editorial – China and England have long been united by trade. Now the trade is so valuable it must not be jeopardised. What is the proper duty of the two governments to nurture and grow trade? The future can be espied from the past. The permission to trade at all Chinese ports in 1685 and the restriction of trade to Canton in 1717 were both the despotic acts of the Emperor. We have no rights save the right to come and trade. Our claims on Hing Tai are entertained as a matter of Imperial benevolence. In the company’s day, the free trade was called the country trade. It was a tolerated trade which enjoyed no rights; it could not defend itself; it was occasionally suspended by the Select Committee and it was subject to whatever privileges the hated Select chose to provide.

When Aristotle was developing his liberal ethics, Confucius was expounding his restrictive practices. Now China has become a closed society endlessly reflecting on its internal affairs. This closed system should be ventilated and invigorated by the fresh wind of our knowledge, science and religion. It is Britain’s duty to destroy Chinese exclusiveness.

We will consider our commended policy towards China in three parts – causes, means and ends. Concerning causes we will elucidate why greater exertions are required now than formerly; concerning means we will identify the necessary policies and concerning ends, it is of course a free trade based on mutual interest and good faith. We will conceal nothing.

At present Elliot has taken the British flag and left Canton. His correspondence with the local government is returned unopened. We are unprotected. Meanwhile Bills are before parliament for Courts to be established here. It is clearly the appropriate time to consider the situation and what must be done.

It is unnecessary to go back beyond 1750 to identify the salient features of the relationship between Chinese and foreigners. From about that year to the present there has been an incremental abridgment of our privileges combined with a progressive increase in our trade. The Company’s Select Committee and 3-4 leading Hong merchants dictated terms of trade in a few interviews and the result was a profit on imports and exports. Now trade has been free for four years and our expectations have not been realised. We expect the free trade to continue but unless the two governments talk we fear the conditions of trade will deteriorate. The present state of trade is equally bad for the Hongs as the foreigners. The Hongs, with 2-3 exceptions, are unworthy of commercial confidence. The Company supported several Hongs by allocating shares in its purchases to them and that helped to make the Hongs more independent of each other. But now everyone sells to Howqua and 1-2 others who buy the imports via the small Hongs and the system cannot be changed because official merchants are appointed to our trade. Our imports are thus insecure once they have entered port. Our interests now are separated whereas under the Company it was combined. We are unable to combine together in the way the Company traded. We thus cannot present a united face to the combination of Hongs and officials. This requires the British government to step-in and negotiate better terms for us.

The only question is the means which the British government should adopt to achieve this?

The historical actions of the British government reveal a sublime ignorance of this difficult task. In the West the countries all know each other and trade with confidence but in China the official position is restrictive and trade is allowed as a matter of favour. This relationship is unique and requires a unique procedure for its amendment. The principle underlying our trade is Imperial compassion and benevolence to foreigners. The Emperor is father to His people.

We note that a Chinese father has a legal right to determine whether his own issue at birth will live or die. He retains this power until the child achieves adulthood. Should he then kill, it is murder. So it is with the foreign trade. They might have killed it off in its infancy but now it is too mature to do so.

China has a right to self-existence and holds an acknowledged position in the world, but it should concede and respect the rights we have attained. On the Chinese principles of justice and benevolence to foreigners we now hold prescriptive rights11 in respect of our trade and it becomes the duty of the Chinese and British governments to defend those rights. This is the means whereby we can negotiate – on our rights and on the rights of China. The magnitude of our legal exports is shown in the following statement:

Dates

1. 4.34 – 30.9.34

1.10.34 – 30.9.35

1.10.35 – 30.9.36

Black tea (lbs)

3,634,130

39,855,800

37,981,000

Green tea (lbs)

384,133

8,135,000

8,300,533

No of ships

11

73

70

Tonnage

3,300

37,724

37,368

This great trade does not indicate prosperity. It is estimated that the tea and silk trade of the Company made a profit in favour of the Chinese sellers of about $4 millions. The present embarrassed state of the Hongs impedes our progress. We must act now or abandon our ‘prescriptive rights’. If we abandon our rights the resultant situation will be far worse. It is the duty of the British government to stand up, as the foremost foreign state trading to China, and protect our trade. There can be no half-measures. If there is unpleasantness, let it be so.

The latest novelty – a British Court in China – should be acceptable to the Chinese. They should take the same position as the Porte at Constantinople does to the British Consul there or the same position that the Americans and Swedes have arranged for their trade.

The treaty with Turkey signed at the Dardanelles in 1809 provides that disputes amongst Englishmen in Turkey will be decided by the British Consul.12 Disputes between English and Turkish people will not be heard under Turkish law until the British Consul is present. Suits above a certain value will be heard only at the Sublime Porte where the British Consul will answer for them. If an Englishman dies in Turkey his estate shall not be seized but delivered in accordance with the deceased’s will or, if intestate, to the British Consul. If any Englishman denies the Consul’s authority he may be sent to England to answer the charge. It follows that the British consuls in the territories of the Levant Company enjoy wide judicial powers but little else. Some say these powers have caused widespread mischief and the selection of the Consul must be made with care.

A similar capitulation to Turkey’s is made in the 1818 treaty between American and Sweden whereby consuls of each country reside in the other to act as judges in all disputes between Americans and Swedes. The only exception is those cases where the crews of a foreign ship disturb the peace of the host country in which circumstances the Consul may call for assistance in having his decisions enforced. All these consular actions are subject to review by the Courts of the home nation.

Is such a functionary required in China to protect the British opium trade? The matter of correspondence with Chinese officials requires attention. If the Consul requires communication with the An Cha Sze (criminal judge of the province) he will be referred to the Hong merchants as the channel of communication. We have tried to impress the Chinese with our previous representatives. Should we send a bishop instead of a diplomat? To whom would he be referred for correspondence?

The fundamental problem in our relationship is the opium trade – it is a Company monopoly in Bengal and a smuggling trade in China. Public opinion will eventually conquer this poison. Otherwise a professedly Christian government will use this product to cause a fearful state of affairs. Instead of supporting and ornamenting life, we will be degrading and destroying it solely for profit. The opium trade must be free. We think the production of opium would then diminish.

Once opium has been dealt with, the British government can demand fair access to the Chinese market. We can expect our rights to be acknowledged and our grievances redressed. This would manifestly demonstrate the benevolence of the Emperor. We will preserve what we have got and extend it amicably. This is the way to open communication with the Chinese government.

For the last two years the Peking government has debated the opium trade. There are two parties that contend for power in Peking – one reformist, the other reactionary. The memorial of Hsu Nai Tsi for admission of opium on payment of duty was reportedly written at the instigation of the Empress. Before it was published, several changes amongst provincial high officials occurred, including the Viceroy of the Two Kwang. It is now reported that the Viceroy Tang is about to be recalled and the Empress’ other provincial appointments are also being reversed.

The Emperor should be expected to favour the reactionary party - new ideas are always suspicious to governments. Ultimate government policy towards opium remains uncertain but we have no doubt the Emperor is incapable of preventing its import. The officials here to the very highest level, know about our opium trade. Recent transactions at Whampoa have been obvious but no intention to stop the trade has been detected. The low salaries of officials seems to mean they are expected to make up the deficiency by an informal system of fines. Thus the illegal smuggling business is made possible by the corruption of the officials and both are fostered by the Bengal and Malwa governments. This suggests the trade will continue at least as long as the exclusive Chinese system continues.

How long will that be? It is unlikely that the smugglers would change to a legal trade and pay duty on opium as the other proposed condition (of barter) is unacceptable. Even if the change of law occurred, the smuggling would continue as it avoids contact with officials and Hong merchants. Thus China reaps the reward of its exclusive policy. It constantly fails to enforce the anti-smuggling law due to corruption of the enforcers. For us to obtain better trade terms we must deal with the Emperor not his subordinates. Only he can open other ports to trade. If the ‘existing regulations’ are insisted upon, it must be clearly shown that they are futile. To avoid a revolution in the maritime provinces, the Emperor must reform his trade and foreign policies.

Now is the time for change. Any delay will make our task more difficult. We cannot be satisfied with pretentious Edicts and ancient laws that are daily ignored. The repeated defeat of our ambassadors and Superintendents shows we must find a different way of communicating. We cannot continue to be considered as tributary.

The Asiatic Journal last September published an article ‘commerce considered as a means of promoting the civilisation of barbarous people’. It discussed the means of protecting the foreign native in his trade with the West. Here is an excerpt:

“In 1823 the government of the Cape of Good Hope prohibited trade with the natives on its eastern frontier to preserve peace. Trade is usually considered as a means of promoting peace. The African who told the Cape Governor 30 years ago that ‘peace cannot be assured without trade’ showed more political wisdom than the 1823 administration. Now trade with the tribes along the Cape’s frontiers grows day by day. But the western trader abuses the native traders with his superior knowledge and strength.”

Is this inapplicable to China which claims sole possession of civilisation. The Canton Register argues for British aid to China in expunging the opium trade before it compromises the legitimate trade. The object is more important that preserving a revenue to Bengal. But China adopts a restrictive policy to trade and threatens to cease trade on many minor pretexts. The trade of India with China has been free for decades. Now English trade is likewise, we expect protection from the British government.

It is pointless arguing our case under international law – the concept is not recognised by China. The Romans granted no privileges to their allies until they promised to obey Roman law. This is what the Chinese say – obey our law and you can partake of the advantages.

The first step must be to demand the Emperor acknowledge the English sovereign as his equal. The Portuguese are allowed to trade at both Macau and Canton. The Spanish have a right of trade at Amoy and Canton. Our own extensive trade should be on the same basis as the most favoured nation. Besides trade at Macau and Amoy we should also request re-establishment of the previous Ningpo factory, free navigation of the Yangtse and Yellow Rivers at least to Nanking, and trade privileges at the capitals of Shantung and Hunan. Whilst our own concerns are for better access on the coast, the Bengal government should be working to improve access through Tibet and Assam so our territories bordering China can co-operate more closely together. This time we must determine not to fail. The whole history of our relationship with China reveals that perseverance pays.

This proposed extension of trade must be supported by a political connection. Our ambassador must sit in Peking and freely communicate with all Britons in China. He should have direct access to the State Council and, if necessary, the Emperor. These interests are too serious to be disregarded. We must promote the concept of nationality to the Chinese. At present they are united solely by culture which recognises duties to Confucius and the Emperor.

The Manchu tribe did not have an alphabet 400 years ago. In 1650 there were about 10,000 of them - now there are about 100,000 Manchus. This is the group that vetoes Chinese involvement in the world. All our technical achievements are excluded to perpetuate this dynasty. We must teach China our new philosophy. We are not advocating the breach of Chinese law just for trade. The laws of China are daily broken by both sides. The independence of China rests on our guarantee of forbearance. The only Chinese virtue that should be preserved is filial respect – this is the root of their society.

Vol 10 No 3 – 16th January 1838

Assam - this new province of Bengal contains a route to Yunnan through which opium could be introduced to China more quickly and cheaply. The Calcutta Englishman of 14th October 1837 has a report on the subject based on Dr McCosh’s survey of the province:

Chinese traders come across the frontier of upper Assam to trade with Indian and British traders. They are enterprising men. We ourselves do not need to cross their frontier, they can be relied on to distribute our products. The obvious commodity of value that could be redirected across the Yunnan frontier is opium. Once communication is established we could hold an annual trade fair protected by the British flag. It is unnecessary to follow McCosh’s proposal of maintaining an open road into Yunnan for the purpose of occasional reprisals.

Editor – If Bengal wanted to introduce opium direct to Tibet, Yunnan and Tartary this would be the way but it will give the Bengal government the reputation of a purveyor of deleterious luxury. Thus the ‘greatest happiness’ principle will fall before the ‘greatest misery’ principle. This would be a violation of public and private morality and a breach of international law. But if revenue is the only matter of concern to the Bengal government it will probably redirect the opium trade through this channel in the next few years.

Vol 10 No 3 – 16th January 1838

Calcutta Courier 14th October – Mackeson has reported on the trade between Ludhiana and the towns on the Sutlej, Gharu and Indus rivers. He says “the Ludhiana merchants took a small quantity of opium to test their markets but it was insufficiently refined and unsellable”.

Many thousands of pounds of opium are grown in our Hill states and in the protected Sikh provinces and this is send via Jeselmir and Sind to Damaun notwithstanding the existence of our Agency at Bombay to buy it. The overall quantities are not yet large but the merchants of Amritsar have asked what price opium attracts at Bombay and whether they can export it to that city. Nothing is more likely to increase our trade on the Indus than opium.

Editor – when the Indus is opened to navigation, Malwa will have a new rival from the Punjab. This new area of production will make opium speculation even more dangerous.13

Vol 10 No 3 – 16th January 1838

One of the Imperial censors posted to Canton made a strong criticism of the local high officials. We published some of the correspondence in our 26th September 1837 edition. Even some local merchants are said to have complained against provincial officials. The Emperor says:

“…. one of the great evils at Canton is foreign smuggling. The high officials have issued their orders to the English Commissioner but we do not hear if the receiving ships have sailed or not. If the provincial officers compromise on this subject, I shall hold them responsible. Seize all the smuggling vessels and extirpate this trade root and branch. Do not be satisfied with small successes.”

Viceroy Tang et al responded:

“We have studied the charts and see our boundary is at the Ladrone Islands beyond which is the boundless ocean. Lintin, Kum Sing Mun and the Nine Islands are within the area of Kwangtung province. Since 1830 the barbarians, on the pretext of seeking shelter, sailed to Kum Sing Mun in March and remained there through the summer. When the north wind returns they move to Lintin. Last winter we prohibited this. We erected a new battery at the river entrance and stationed a naval squadron there and we kept the barbarian ships out. They had to anchor at Lintin and elsewhere.

“As they arrived and departed without notice, their numbers were uncertain, but now we know what is going-on generally and are adopting measures against them. Last year we ordered the naval cruisers to check their numbers precisely. They found 25 ships that remained at Lintin for a long time. Mostly they were English ships with 1 - 4 each from America, France, Netherlands and Luzon.

“You have commanded us to stop the smuggling. We ordered the Hong merchants to arrange it. They say Elliot could not do it and when they directly ordered the foreign traders to do it, they were told the receiving ships did not belong to them and they had little influence over them. According to the law, when foreigners become refractory, their trade is stopped. As they decline to send away the receiving ships their trade should be temporarily stopped. But as not every foreign country is engaged in smuggling it is fair to identify the good ones so they are not punished for the offences of others. We have ordered the Hong merchants to ascertain this and to report distinctly which foreign nations operate receiving ships. If they are dilatory we will stop the trade so the foreigners will understand that they cannot break our law with impunity while continuing to reap the advantages of legal trade at Whampoa. Then they will recognise which course of action offers the greater profit. We have to go to these lengths because they cannot easily be awakened from their stupidity.

“Our investigation reveals all the foreign nations smuggle. Formerly they were annually in a great hurry to load their exports and depart. As a result of disturbances their trade was stopped in 1809 and 1830 and this procured their pleas that it be re-opened. They should reflect on the history of their trade. If they are not intimidated by a stoppage of trade they will keep their receiving ships but lose their livelihoods. We have also ordered the Admiral to expel the receiving ships.

“These receiving ships need daily supplies of provisions. Worthless native fishermen supply these daily needs in bum-boats. This enables the foreigners to prolong their stay. If supplies were cut off they would have to leave. We have already seized many opium dealers and smugglers to prevent the export of silver and the import of opium. We have now ordered the bum-boats to be seized. Recently the Ta Pang and Heung Shan naval stations have taken four bum-boats with 24 vagabonds and sent them to Canton for trial. Liu Sze, Lin Chun, Ah Lee Ting and Ah Sau have been arrested with sycee and opium and tried. Their sentences await approval from Peking (i.e. capital). Between March – December last year we made 30 seizures and arrested 114 culprits. We seized 8,661 Taels of sycee and 3,848 catties (over 30 chests) of opium. The opium divans have been sealed up and orders for the arrest of their managers issued.

“After a whole year of strenuous effort we cannot say that the problem has been solved but we note the price of sycee silver has again become low and a ball of opium from the barbarian ships used to cost $40 but is now offered for $16-18.14 Since seizures of sycee were made there has been an increase of foreign silver coin in circulation. We will concentrate our future efforts on preventing sycee export and seizing bum-boats provisioning the receiving ships.

“We are however accused of corruption, both the civil and military officers. It is rumoured that we take the seized opium for our own use or for resale; that we ransom the criminals we have arrested; that we search only genuine merchants to solicit bribes. There are those who say the foreigners will buy only little tea and silk if we restrain them and the absence of their trade will reduce a part of Kwangtung province to wretchedness. Others say by arresting vagabonds we reduce the business of the boatmen who may again be stirred into piracy. These are the rumours that are passed from mouth to mouth in an attempt to prevent our enforcement of the law. Nevertheless, we continue to discharge our duty faithfully.”

Vol 10 No 3 – 16th January 1838

Editorial - The Chin Chew men come from the southern half of Fukien and the north eastern part of Kwangtung. They live in three districts – Chuen Chow and Chang Chow in southern Fukien and Chiu Chow in Kwangtung (all promiscuously known in the foreign trade as Chin Chew). Apart from a few fertile valleys, the area is inhospitable and only produces sweet potatoes. Rice production is inadequate for the population. There is a valuable sugar crop. That’s all.

But no other part of China proves the economist’s assertion that the riches of a country are its population.15 As these people cannot all support themselves at home, they travel everywhere for a living. The coastline has many good harbours and the Chin Chew men have devoted themselves to maritime trade. Nearly all the foreign commerce of China is in their hands. The Imperial and mercantile navies (some 150,000 men) are disproportionately manned by Chin Chew men. The fishermen of Chin Chew operate along the entire coastline. If one visits any coastal emporia he will find swarms of Chin Chew men either visiting or established in trade there. They do not confine themselves to the coast but travel everywhere there is profit to be made. The bankers of Peking, the hawkers of foreign goods and anyone involved in hazardous enterprise is likely to be a Chin Chew man. They live on the coast. If trade is poor they fish; if trade and fishing are poor they farm, turning marginal land into high productivity with manure. Look at the Chinese population of Macau – it is mainly comprised of Chin Chew men. Their diligence produces four or five crops a year off the meagre soil. In Canton they control almost all articles of commerce. If one was to investigate into the sources of silver that funds the foreign trade, one would find it is largely under the control of Chin Chew men. They have penetrated the Wu Yi Hills and planted the An Koi tea plant to the extent that commerce in An Koi tea is monopolised by them.

Whilst over a million Chin Chew men are spread over the other provinces of China where they out-compete the locals, they are even more distinguished as emigrants. They reclaimed Hainan from the aborigines and now more than a million of them live there. In the last few centuries they have attended to Taiwan making it a productive island where two million Chin Chew men have occupied the major part of the island. There are 1-2 millions in Thailand, Annam and Tongking.

Whilst all these people have emigrated, the population of Fukien remains high - they are fertile, active people. All this emigration is formally illegal and yet they persevere in it. Now there are ten times as many Chin Chew people outside their native area as are within it. Their invincible weapon is the hoe. They conquer entire countries by industrious farming, first by getting land, then producing abundantly from it to the point of becoming able to buy the land and eventually to develop it. As their operations extend they bring in new Chin Chew men to assist.

They mostly consider the Chinese government as an enemy and they have achieved much without its protection. They are the finest exemplar of industry as the road to wealth. They appear to offer the most suitable link between China and the West.

Vol 11 No 4 – 23rd January 1838

Editorial - Most foreign traders sell several minor articles to ‘outside men’. Many ‘outside men’ are as good in business as some of the Hongs.

A silver merchant in China Street, formerly in good credit, ran into heavy debt this year and was unable to either return goods or pay for them. After some delay a foreigner petitioned the Viceroy last month and got the response that dealings with ‘outside men’ were not allowed and he was on his own. The foreigner then went to Howqua for advice. Howqua agreed to call a Consoo meeting of all the Hongs and call the ‘outside man’ in to explain himself but the man declined to attend.

The foreigner then got five armed men, occupied the silver merchant’s shop on 18th January and seized his stock-in-trade, furniture, etc., intending to auction it all off in partial settlement of the debt. He later had to abandon this plan but he retains possession of the house and grounds. The tacit consent of the Chinese authorities to this action can be inferred from their taking no action against the foreigner and by the foreigner’s Chinese servants consenting to live with him in the silver merchant’s shop.

On 21st January Mowqua visited the foreigner bringing the Viceroy’s order that the seized goods should be divided amongst the several foreign creditors. The foreigner however refused to admit the reasonableness of such an action as his improved position viz the other creditors had been achieved as a result of his own initiative.

Vol 11 No 4 – 23rd January 1838

Peking Gazettes, 2nd October - Viceroy Tang has memorialised the Emperor concerning the regulation of the Hong merchants:

“In the reign of the Ka Hing Emperor the office of senior Hong merchant was established. When new Hongs were licensed the other Hongs were ordered to provide security bonds for the newcomer’s performance. As the foreign trade increased, the number of Hongs diminished and they were reluctant to provide the bonds. To increase the numbers of Hongs, applicants were permitted to operate temporarily and the requirement for a bond lapsed.

The numbers of Hongs must again be increased and the old regulation be reinstated. Thereafter the number of Hongs will be fixed and when one is removed, another may replace him but beyond that not a single new Hong merchant is to be licensed. The permission for temporary Hong merchants should also be withdrawn. When a vacancy arises, the existing Hongs will select a suitable replacement and each provide security for his performance. Then the Hoppo will license the new man.

“The senior Hong merchants may not shirk their duties and pick & chose what they do. The whole body of Hongs will be responsible to prevent smuggling and the resultant loss of revenue. In this way selfishness will be avoided and the revenue increased.”

Vol 11 No 5 – 30th January 1838

Calcutta Daily Commercial Advertiser, 20th November:

The first opium auction this year will be held on 2nd January 1838 at the Exchange Rooms, Calcutta. 4,600 chests of last year’s Patna and 2,400 chests of Benares will be for sale. Sales will be of 5 chests per lot.

Each buyer will deposit 1,000 Rupees per lot at the time of purchase. The initial deposit may be by means of a Company Promissory Note, payable at sight, for the whole deposit. This may be exchanged before 7th January for cash or public securities of the Company whereupon the Promissory Note given as initial deposit will be returned. Failure to pay the deposit results in resale of the lot at the expense of the original purchaser.

The balance of purchase price is to be paid in one calendar month. If unpaid the deposit will be forfeit and the opium resold. Prospective purchasers are advised there will be subsequent sales on 2nd Feb (2,300 chests), 20th April (4,000 chests), 20th May (2,000 chests) and 25th June (3,800 chests).

Vol 11 No 5 – 30th January 1838

Sr F J da Castano Amaral, the ex-Judge of Macau, has left for Batavia on the Portuguese ship Cesar.

Vol 11 No 6 - 6th February 1838

The 2nd annual report of Dr Peter Parker’s Ophthalmic Hospital is published. 1,225 patients were treated this year making a total of 4,575 for two years. The hospital treats mainly eye diseases but also receives any other case. It had two cases of opium mania during this year and fifteen over the two years. In a population of a million people in Canton city, this low number suggests opium is seldom taken to excess.

Vol 11 No 7 – 13th February 1838

The Viceroy has scolded the Governor for not enforcing the orders against the opium fleet at Lintin. He says ‘opium is now being brought to Whampoa. How can any strict investigation have been done? The more strictly it is forbidden the closer it comes. This is all due to corruption of the Customs House officials and their cruiser crews. What use are the regulations if they are not enforced?’

The Governor is aware we are selling opium at Whampoa but when he asked the Hong merchants they denied it and when he ordered the Sze officers to search the ships they said this might have unpredictable results and demurred.

Vol 11 No 7 – 13th February 1838

Peking Gazettes, 23rd December – On 6th October Viceroy Tang reported Lieutenant Colonel Yee Lin Fung and some other officers had arrested people but did not report any details of the arrests. He asks for their punishment.

A junk master Leung Lin Chu went to a military base on the islands and was robbed and murdered. The army officers did not report the case but took bribes to conceal it.

The Emperor orders the Colonel be demoted and given two months to conclude the case. His three officers are to be tried by the Viceroy.

Vol 11 No 7 – 13th February 1838

The censor Yuen Tung Sung complained 20th October about the collection of revenue. The servants of the Hoppos in all the provinces connect with clerks and runners and constantly impede the business of real merchants by delay and extortion. Vagabonds living near the Customs House volunteer to search cargo and then demand fees for their services. At Wuhu the junior Customs staff are in league with smugglers who are allowed to pass on payment of bribes. All this produces a constant deficit in revenue.

The Emperor orders all the Hoppos to exert themselves, control their staff and prevent cheating. Viceroys and Governors are to order their magistrates to perform their duty. Offenders must be heavily punished without forbearance.

Vol 11 No 8 – 20th February 1838

The fact that Chinese of the lowliest positions can appeal to the Board of Censors against officials and have their protests impartially heard by the Emperor is astonishing. We suppose justice follows protest as the people continue to indulge the right. But what is the significance of the acts of a few desperate appellants against the apathy of an entire administration? Every edition of the Peking Gazettes is a record of the weakness, corruption and hypocrisy of government.

A characteristic of Asian peoples is their submission to whoever wields power. The provinces are intentionally kept separate. One provincial army cannot enter another province. One investigator cannot pursue his investigation in another province. The independence of each provincial administration from any other is a fact. It is the same with the people. There is a guarded mistrust of neighbours and some friends that is superficially obscured by forms of politeness. This isolates families and individuals and divides the whole population, making it more easily governed.

But everyone recognises the paternal role of the Emperor and loves him. It is the officials who are to be avoided. They represent the bamboo, the chain, the tortured confession. Education is restricted to the ancient approved texts. Our technology may not be studied. The Chinese government has a case to answer and the day of reckoning may be close at hand.

Vol 11 No 8 – 20th February 1838

The new opium market at Whampoa has developed characteristics of fraud and violence.

Recently a considerable amount of lead was accepted by a foreigner in the belief it was sycee. In another case the silver proceeds of sales were being transported by ship’s boats when the flotilla was attacked by pirates who took the entire shipment. It is supposed the pirates were in collusion with the opium buyers.

We also hear that opium has been seized from European boats anchored off the factories.

Vol 11 No 8 – 20th February 1838

Peking Gazettes, 13th Nov 1837 – Lin Ying, Superintendent of Rivers in Keangnan, reports the God of the Hwae River has been very helpful in response to the many sacrifices made to his temple near Hung Tsih lake. Recently the river overflowed. Lin Ying meditated at the spot and the waters subsided, the wind dropped and the grain ships were no longer disturbed. To acknowledge the God’s protection, Lin wants a tablet to be placed in the temple. The Emperor agrees to write the tablet in his own hand as his response to the God’s favours.

Vol 11 No 9 – 27th February 1838

Calcutta news - 7,000 chests of Patna and Benares were sold today at auction with the usual reservation of 150 chests for the French. Indian speculators were poorly represented. Nanjee Jacoram, the Bombay Malwa agent, was present and was, as usual, the largest single buyer:

Sales

Patna

Benares

4,535 chests

2,335 chests

731 Current Rupees average

690 Current Rupees average

Vol 11 No 9 – 27th February 1838

The To Kwong Emperor has now reigned for 18 years. He is a good old man. He lives life in retirement and little is known about him. He is said to keep his household in excellent order. He has little talent for public affairs and does not interfere much with his high officials in the administration of the Empire. His reign has been peaceful and tranquillity has generally been maintained but there have been almost annual floods, earthquakes and/or famines. If he were put to the test we suspect he would be found wanting.

Vol 11 No 9 – 27th February 1838

Letter to Captain Aaron Smith of the barque Mary Ann, Singapore 11th January 1838 – Our friends Magniac Smith & Co of Singapore will deliver a piece of plate worth £100 to you in recognition of your valuable service in combating piracy in the Straits. Sgd Jardine Matheson & Co, Canton.

Vol 11 No 9 – 27th February 1838

Viceroy Tang has at last received a report from the Hong merchants dated 15th February on the nationalities etc., of receiving ships at Lintin. This is his response:

“Your report differs from the report of the Tung Che at Macau. Why is Denmark16 and Luzon (Philippines) not mentioned? This affair could involve a stoppage of trade and cannot be casually done. Check again.”

The Hong merchants reply:

“The foreigners told us there are English, American, Dutch and Portuguese receiving ships at Lintin. Their information is not as reliable as the pilots whom the Tung Che relies on. Our further check revealed the receiving ships are from England, America, Denmark and Luzon.”

Viceroy Tang replies, 19th Feb:

“These four nations must be examined. There should be no more delay. They should be driven off. I have alerted all the army units to assemble and attack Lintin to drive away the ships. As a preliminary, we will seize the compradors’ boats to cut off their supplies. The army must act rigorously to avoid suspicion of connivance. You Hong merchants are also suspected. The receiving ships will be ordered away or I will stop the trade of those four countries.”

Vol 11 No 9 – 27th February 1838

Viceroy Tang’s edict on ferry boats:

“The foreigners use decked boats to come to Canton. They are anchored in the river opposite the factories. This has long been forbidden. The Hong merchants have confirmed that none of the landlords of the factories are involved in the ownership of ferry boats. Now it transpires that the disgraceful foreigners are bringing opium to Canton in these boats. It is just like the old ‘fast crabs’.

“It is clear that the despicable Hong merchants have been shielding the foreigners. Enjoin on the foreigners that it is strictly forbidden to use decked ferry boats. If they disobey they must be seized and punished.”

Vol 11 No 9 – 27th February 1838

The General Chamber’s recommendations for payment of import duty:

The proper time for settlement of import duty at Canton is either at the time of landing the goods under contract to the security merchant or at the time of landing as arranged with the Customs officials. Failure to do so will result in unilateral surcharges by the Hoppo’s staff which have to be paid before the Port Clearance can be issued. Consignees of goods should be aware that it is up to them to negotiate the rate of duty with the officers. No one else will do this for you.17

It was previously feared that a consignee taking a leading part in the negotiation of rates of duty would cause the security merchant to assume he was no longer responsible for settlement, but experience has revealed this fear is groundless. The committee of the General Chamber concludes it should be the custom of this port for the cargo consignee to negotiate and settle import duties and they be held responsible to the ship’s consignee for performance.

Vol 11 No 10 – 6th March 1838

The American financial crisis that commenced in May 1837 appears to be ending. American banks are expected to resume cash payments soon.

T Wiggins & Co, the big American commission agent in London, has announced it expects to pay creditors in full.

The British firm of M/s Marjoribanks & Ferrars also expects to survive.

Vol 11 No 10 – 6th March 1838

The Calcutta opium merchants are concerned at accumulating stocks in China due to stricter enforcement of the law. The slowdown in sales has occurred whilst production in India has been increasing. The combined effect has caused prices to fall at Canton. The real intentions of the Chinese government are unclear and every one is advised to exercise caution.

Vol 11 No 11 – 13th March 1838

Notice, Canton 7th March – we have re-opened our firm Wm & Thos Gemmell & Co which was closed 16th Sept 1837. The Powers of Attorney granted to Henry Constable and James Innes are revoked.

Vol 11 No 12 – 20th March 1838

Beginnings of the free-trade cartel - The committee of the General Chamber has published the following recommended commission rates for commercial services provided by members at Canton:

Sales of opium, cotton, bird’s nests and jewellery

All other goods

On returns (if goods)

On returns (if treasure or Bills)

On purchases of raw silk

On purchases of manufactured silk and all other goods

Inspections of tea

Sale or purchase of bullion

Negotiating Bills (when not drawer or endorser)

Negotiating Bills (when drawer or endorser)

Guaranteeing sales and remittance of proceeds

For procuring freight

Collecting house rent

Arranging trans-shipment of cargo

Acting as Executors of estates

3% of sale price

5%

2½%

1%

3%

5%

½%

1%

1%

2½%

5%

5%

2½%

1%

5% of the Estate

And a long list of other services at percentage fees.

Vol 11 No 12 – 20th March 1838

The Frenchman Edward Biot has written a note on slavery in China:

Under the Ching dynasty banishment into slavery is a most severe punishment. The convict is generally sent to the Amur River or Ili. He is employed there in salt or iron mines under the supervision of officials.

Persons guilty of rebellion are executed and their wives and children given, if wanted, as slaves to the principal officers or else banished. The government has found slave labour does not produce cheap or good public works and prefers to use free men for these services. It sends the slaves to the frontiers where they are used for hard labour or induced (on the possibility of freedom) to fight in the front ranks of Chinese armies to redeem themselves.

Vol 11 No 13 – 27th March 1838

Memorial to the Viceroy – We decline settlement of Hing Tai’s debts in 9 years. Its too long. There are other insolvent Hongs we are also chasing for money. We need to know which Hongs are solvent for the safety of our future trade. We bring our property from afar and surrender it to merchants nominated by the Emperor. We think it is not the Imperial wish to detain our capital until it has doubled in value by addition of compound interest before repayment of only the principal is made. Your judge and treasurer say the trading situation has changed; that the foreign trade is no longer as profitable as when the Company was present. This is true but we individual traders cannot afford to lose capital like the Company. Besides the settlement of Hong debts has never depended exclusively on Hong profits but mainly on the collection of additional tax on our trade. Settlement of the Hing Tai debts will follow the same course. There is no injustice to the Hongs. We think another trading system is required to provide a level playing-field and we have asked our Queen for help in obtaining it. If in the interim you will order payment of our claims or any part of them, we should be pleased to receive same.

Sgd Dent & Co, Bell & Co, Fox Rawson & Co, Eglintin Maclean & Co, Dirom & Co, Gibb Livingston & Co, J & W Cragg & Co, Daniell & Co, Robert Wise Holliday & Co, W Henderson. 31st March 1838

Vol 11 No 13 – 27th March 1838

The trade of the Hong merchants is at the lowest level in memory. It is partly due to their using their authority to ship off their own goods under the names of outside men. This has greatly reduced the trade ascribed to themselves.

They plan to limit the numbers of outside men who can deal with foreigners through the Hongs. If they can restrict one outside man to one Hong, he will become amenable to direction and they can deter smuggling and evasion of duty. This will also restore their own trade.

Many criminals have been arrested this month. Many seizures of opium have occurred, both in the river and outside. On 24th February two magistrates brought a heap of seized opium to the factory landing place in front of our offices and residences and burned it.

Vol 11 No 13 – 27th March 1838

Editorial - Dent has published a paper on “The Chinese Security Merchants and their Debts”. A few years ago he was identified with the pacific party and asserted all our problems in China would be solved by the Chinese themselves simply in recognition of the fact that increased trade required a new system of management. In 1834 he derided the idea of British intervention in China over Napier; now he commends it to recover private debts!

He says $3 millions are owed to foreigners by Hing Tai and Kin Qua and he wants it paid off in six years (i.e. the period in which it would double if compound interest at 12% could be applied as usual). The Chinese are holding out for nine years. Britain could insist on payment of the Hing Tai debt in six years because firstly the amount is agreed between Hongs and foreigners, secondly the Viceroy has expressly said it will be paid ‘to the last penny’ and thirdly a period of six years is just. Britain may be wary of dictating commercial regulations to the Chinese Emperor but in this case we are seeking for compliance with the rules He himself laid down. The Hong merchants are held out to be reliable and no-one else may trade with us. The Emperor should be responsible for the performance of the people he forces us to deal with. We must also have some protection from the likely defaults of other Hong merchants in future. This would help us and should also somewhat shield the Hongs from plunder by officials. We think the mere fact of a demand by the British government on China would accelerate payment as payment will pre-empt the possibility of further British action.

In pursuit of this aim the General Chamber of Commerce held a meeting on 21st March and agreed the wording of a memorial to be sent to the East India & China Association and to various Chambers of Commerce in Great Britain asking for their support with government in obtaining, by negotiation or otherwise, a better trading system at Canton. Some firms have withheld their signatures from the memorial which will weaken its force. We should achieve consensus here and persuade everyone to sign it.

What can the memorialists hope the British government to do? If it sends another Civil Commission it will be unable to correspond with the local officials. If the Commission is allowed a meeting with them it will be treated degradingly. Ministers will want to gauge progress thus requiring referrals back and forth and slowing progress. If we eventually succeed in getting settlement in six years, it will likely only start after several years of negotiation have elapsed and thus we will be no better off than with the nine years repayment presently on offer.

The memorialists assert that the mere intervention of the British government with Peking would get the Hing Tai debts settled. If the British government also asked that future debts be paid instanter and that Hong merchants be protected from extortion of officials, they think those demands would also be granted and the hazards to trade accordingly reduced.

How is this ‘mere intervention’ to be done? Another ambassador will have to kow-tow and we infer the memorialists expect him to do so. Otherwise he will be treated like Amherst and expelled. Do the memorialists envisage that the ambassador would have adequate force at his command to insist on an audience? If so, that makes the new petition similar to the free traders’ petition of December 1834 which the Pacific Party (Dent’s pro-India Company group) repudiated. We think the new position of the Pacific Party is a natural consequence of the development of free trade and the need for its protection. If we cannot be protected, we will assume the position of the Jews in Turkey.

Another problem for the British government is the opium trade and the entire Lintin smuggling system for evading Chinese law. This will deter the British government for involvement unless we insist they act. Palmerston will not want to ask the young Queen to coerce China so long as the tea duty is still being paid.

We conclude that the Hing Tai creditors should rely on their own efforts to make recovery. But we think the English and Indian trade to China needs British intervention to preserve it from further loss and the proper means of obtaining this is to assert it is a right of nations and not something in the gift of the Emperor. We have to remove this thing about compassion and benevolence to foreigners if we are ever to have any rights in trade. A display of power is what the Chinese respect and what England should provide. Then we can be confident of the security of our property.

Vol 11 No 13 – 27th March 1838

Canton Press - Memorial of the free traders to Palmerston through Elliot:

We ask you to obtain the Queen-in-Council’s agreement to powerfully interpose the British government with China to get early payment of our present and future claims. We are limited to 12 merchants for the main staples of trade, The merchants trade separately but have a joint liability for payment of Chinese revenue and trade debts. We know nothing of the method by which these merchants are selected but the Chinese government guarantees their engagements and for 20-30 years debts of individuals have been settled without interest by the whole body. The period of repayment has always been a matter of contention. The Hongs routinely fix a period in which the debt would be doubled if compound interest was allowed. The attainment of these agreements has historically been done by the Company using its large buying power which we cannot emulate.

At the beginning of 1837 there were 13 Hong merchants. 3-4 are now insolvent. The combined Hong debts exceed $3 millions to us and $750,000 to the Chinese government. One of the insolvent merchants called Hing Tai has formally been bankrupted and his debts agreed at $2.3 millions excluding some disputed debts. The Viceroy has left the period of repayment to be agreed between us and the Co-Hong. The Hongs started at 20 years and have incrementally reduced this to 9 years. We have declined all their proposals for two reasons. Firstly, as this is the first debt under the free trade, and it arises solely from trade and thus differs from former debts (for loans), we wish to avoid making a precedent for future settlements. Secondly, we wish to learn the financial position of all the Hongs so we can better assess them as trading partners. And we want to have all their debts settled.

The Co-Hong debts are never paid entirely out of Hong resources. They are mainly settled from a tax placed on the main staples of trade that we buy. The Hing Tai debts are to be settled in this way. When this tax is placed on our purchases for debt repayment, it is never annulled after the debt has been paid-off. Instead its collection continues on the pretext of accumulating a fund, called the Consoo Fund, for the settlement of future trade and revenue debts. The fund is also used to meet extraordinary items of central government expenditure. But in fact we believe that the fund has never really existed. The Chinese government sanctions the Consoo tax for payment of specific debts but permits its continuance after the debt is discharged. The Hongs are also daily plundered by the officials, chiefly the Hoppo, which impoverishes them even when they had the large and certain profits of the Company’s trade. Since the Company ceased trading the Hongs have suffered as business has become more competitive. We therefore fear that additional duties placed on the foreign trade will increasingly be diverted to central government expenditure and we hear anecdotally that this is so. This not only delays settlement of our claims but impoverishes the Hongs and tends to the accumulation of new debts by them. Eventually we fear that more than simple remonstrance will be necessary for the British government to successfully help us recover what is due to us.

Our complaint is that the Chinese government confines our trade to a few merchants and should accordingly be responsible for their performance. The provincial government is uniformly corrupt and the Hong merchants are inefficient. These two features are concealed from the Emperor by the provincial government.

Sgd Dent & Co, Bell & Co, Fox Rawson & Co, Lindsay & Co, Eglintin Maclean & Co, Dirom & Co, Bibby Adam & Co, Gibb Livingston & Co, J & W Cragg & Co, Daniell & Co, W & T Gemmell & Co, Robert Wise Holliday & Co, Nanabhoy Framjee, W Henderson, W MacDonald. (This is the Pacific Party in alliance with the India Company)

Vol 11 No 13 – 27th March 1838

Western nations require people to swear Oaths to better establish the veracity of testimony. Chinese justice does not require Oaths of witnesses but an Oath is still a solemn engagement to Chinese. A person asserting a doubtful fact is taken to the temple where he cuts off the head of a chicken and, as it bleeds to death, he recites his declaration whilst calling for horrendous imprecations to fall upon himself should he speak untruthfully.

Fraternal Oaths are more common. The triad societies swear terrible Oaths and no members recant. They abjure human ties and even abandon their names for the society. But their historical object of freeing China from the Ching dynasty has been lost in defiance of society and the commission of every form of atrocity. Triad societies are criminal endeavours and may be found in every expatriate Chinese community. In the Hong Hei Emperor’s reign it was feared triads might bring down the dynasty and their many insurrections have kept the fear alive.

We recently saw an Oath nailed to a tree in a village. The villagers had sworn revenge on some thieves. Should any villager become friendly with any of the thieves he is to be expelled. Marriage or any other connection with them was strictly prohibited. Eternal hatred of the thieves was required of each villager.

The common Oath in daily use is the practise of pointing at some nearby thing and saying ‘so long as this exists, my words shall be true’. This is a largely meaningless Oath.

Vol 11 No 14 – 3rd April 1838

Letter to Robert Inglis (ex-Company China-writer, son of the Director and now a partner of Dents) from Elliot:

Your memorial and attachments will be forwarded to Palmerston. The importance of your appeal should ensure it receives urgent attention. Apart from the large amount of British capital involved, the altered nature of our trade suggests these embarrassments will become more frequent until the Chinese government makes the appropriate alterations. Until the trading system is changed these problems will only get worse. Now you have referred this matter to government, I want you to agree that the period of repayment be left to negotiations between the two governments. It would be prudent for you creditors to take no further action and merely receive what the Chinese see fit to pay until the matter has been suitably adjusted officially. Sgd Charles Elliot

Vol 11 No 14 – 3rd April 1838

Local news:

Vol 11 No 14 – 3rd April 1838

Peking Gazettes:

Vol 11 No 14 – 3rd April 1838

Edict of the Hoppo Wang, 23rd March:

Foreign ships have to pay duty on their cargoes before they can clear port. Lately some ships have duty payments outstanding but the Hongs still apply for their clearance. In future when ships enter and again when they leave, their duty assessments must be paid. Once a Port Clearance Certificate has been applied for, no more goods can be shipped to that vessel. Advise the foreigners appropriately.

Vol 11 No 14 – 3rd April 1838

The Consoo Fund is in fact not a fund but a tax on foreign trade to settle bankrupt estates of former Hong merchants. It was set up in 1780 as a result of Captain Panton’s intervention (HMS Seahorse) when the foreign trade had accumulated debts of $3.8 millions with the Hongs, mainly due to unpaid loans from British and Armenian capitalists in Madras. Panton had an audience with the Viceroy and, after making threats, got Chinese agreement to pay £200,000 immediately with £200,000 over ten years without interest.

These periodic repayments were to be raised from the new Consoo tax. Successive failures drained the fund year after year. The fund was also used to settle government demands for contributions to riverbank repairs, costs of putting down insurgencies, gifts for the Emperor and the like. The money is collected by individual Hongs and paid-in at the end of each year. This accumulation of wealth allures the provincial officials into maintaining their insatiable appetite for bribes. It should be discontinued. These paragraphs are a recital of an article in Canton Register 1st February (year illegible - 1831 or 1834)

If the Fund was no longer available, money will become less easy to find, the exchange rate will firm and our imports will sell at better prices. Tea and silk will fall in price and the settlement of debts would come from the profits of the Hongs and their suppliers, the manufacturers of tea and silk, rather than from our profits.

In the Canton Press of 16th July 1836 it was said “it is laid down as a rule, sine qua non, by our principal supporters and friends that this paper shall advocate none but pacific measures to be adopted for the purpose of gaining a more genial and dignified station among the Chinese; and that the progress commerce is making is an agency quite sufficient to effect this ultimately and effectively.”

In Dent’s memorial is a request to the British government to ‘bring about, by negotiation or otherwise, a more safe and satisfactory commercial intercourse than has hitherto existed between the two nations’. It is clear the Canton Press no longer pursues a pacific policy. When governments become debt-collectors they act slowly - witness the delay of recent Danish claims on England and US claims on France.

As the Hongs do not have the money to settle with us, is it the memorialist’s expectation that the Emperor will pay on their behalf? If a British chartered company became insolvent would the British government pay the bills?18 Is it realistic to expect the Chinese government to settle with us? All our diplomatic attempts to connect with the Chinese government have failed. What new formula is to be used now? How do we assert our position on moral grounds without relying on threats and intimidation? The mere presence of one of our frigates is intimidation. If a naval force arrives it will be ordered away. Any ambassador will be excluded until the ships have gone. If he is allowed to go to Peking he must kow-tow to the Emperor. All other Europeans who have kow-towed have been treated with scorn. What is this ‘interposition’ that the memorialists urge on the British government? We tried diplomacy and failed; we tried threats (Panton) and partially succeeded.

At least the free traders are awake to the risks to their trade. They should now recognise that the mere progress of trade will avail them nothing. We should ask ourselves why the Chinese would voluntarily amend a system that is so beneficial to them. It is both convenient and expedient to China to continue the old system. But both convenience and expedience will vanish when the provincial government is required to be punctual, honest and just. The Emperor must know what His officials are doing in Canton. Several of His Edicts reveal His knowledge and anyway he gets an income from the foreign trade and will naturally support his own men against foreigners. A simple ‘interposition’, as the memorialists urge, will achieve nothing.

The Canton Press has likened this paper’s demands on China to France requesting for jurisdiction over the Isle of Wight. We do not insist on an island off the Chinese coast. We just insist Britain should take an equal place to the Emperor, then whatever we reasonably want will follow. None of us really wants access to Chinese Courts of Law. What we want is the law and protection of England. China characterises all foreigners as tributaries and any rights claimed are unacknowledged – there is Imperial compassion in their stead.

We conclude that the petition of the memorialists is too weak to involve the British government. China no longer guarantees the engagements of the Hong merchants with us - that is why there is a Consoo Fund. It should never have been allowed. The India Company should have remonstrated against it from the start. Whether the licensed Hong merchants have the experience and capital to conduct the foreign trade is not really our business unless we are to assert the rights of an independent country. We cannot assert those rights in China under a pacific policy. We conclude the memorialists were precipitant. They are mere creditors claiming on debtors. They represent a minority of the foreign trade and a minority of the foreign claims on Hing Tai. Palmerston should take care.

Vol 11 No 15 – 10th April 1838

The 2nd opium sale has finished. Attendance was even less than at the January sale and bidders were few. 1,500 chests of Patna and 800 Benares were offered. There was also offered 6 chests of last year’s Benares plus 80 Patna and 50 Benares, being the unused portion of the French allocation from the January sale. Prices averaged 700 – 725 Current Rupees for Patna and 610-615 Current Rupees for Benares.

Vol 11 No 15 – 10th April 1838

News from London:

Vol 11 No 15 – 10th April 1838

Local news – The Canton Foo Yuen is dismissed and required to present himself to the Board of Punishments; a replacement Governor named Hwang is expected to arrive later this month; the provincial treasurer is sent to Peking to interview the Emperor and is succeeded temporarily by Judge Wang. The judicial post will be filled by the Canton Salt Commissioner Chin.

Vol 11 No 15 – 10th April 1838

Edict of the Hoppo Wan, 2nd April – It is established law that the foreign ships at Whampoa use open boats to transmit letters to/from Canton. The boats may have no masts or sails and must stop at the Customs Houses en route for search. Decked and masted boats are forbidden as they encourage smuggling. Many Edicts have been issued but the foreigners show no respect for our law and the Hong merchants permit it.

Large decked and masted ferry boats still sail up the river and anchor off the factories and at Whampoa. This promotes opposition to law and facilitates smuggling. Opium has already been seized from the foreign boats.

Captain Baker’s ship has long been anchored at Whampoa under the pretence of being a hospital ship (it arrived in October 1836) – how do we know it is not used to deliver smuggled goods to the ferry boats for distribution? When the ship arrived a Tsai Kwan was sent who remains on-station off the boat. His wages and provisions are paid by the ship and the expense is now over 50 Taels - obviously something is going on.19 For two years a useless expenditure has been incurred that will excite the suspicions of the Board of Revenue when they inevitably learn of it.

The same pattern that exists at Lintin is being duplicated at Whampoa. The Hong merchants display contempt for the law. They must drive away Baker’s ship and the large ferry boats and preserve tranquillity. The foreigners trust to their own craftiness – they must not be allowed to do as they please or the Senior Hong merchant will regret it.

Vol 11 No 15 – 10th April 1838

Dent has denied influencing the Editor of the Canton Press to assert the merits of the memorial to Palmerston. He says the published commentary originated with the Editor. He objects to our assertion that the memorialists are a minority of the trade.

Editor - This year 21,622 tons of shipping was consigned to British agents at Canton and sent off with teas for England. Of this 11,849 tons was consigned to people who signed the memorial (Dent’s group) and 9,773 tons to those who did not (Jardine’s group). It superficially appears the memorialists are preponderant but if we add the Indian trade that preponderance disappears.

Vol 11 No 16 – 17th April 1838

Peking Gazettes of 25th February contain an Imperial Edict:

“The Cantonese Kwok Sze Ping is to be immediately strangled. He connected with foreigners, smuggled across the sea frontier and opened a shop to sell opium where he allowed patrons to attend and smoke. He has been employed in this way for 5 years.

The former Viceroys and Governors did not prevent it but Viceroy Tang has caught Kwok. His merit will be rewarded.

Whenever people are caught buying or selling opium or operating divans they are to be punished as a warning to others. Respect this.”

Vol 11 No 16 – 17th April 1838

Kwok Sze Ping was executed at Macau on 7th April by Imperial order. He was an opium smuggler and operator of a popular divan in the city. His legal position is shown in the penal code – “dealing in opium will be punished under the law dealing with smuggling of gunpowder, potassium nitrate (saltpetre), sodium nitrate (nitre), sulphur or weapons. Offenders will wear the cangue for a month and be banished to a near frontier as slave to the soldiers. Those who open divans are punished for depravity and seducing the people. They will be strangled after their term of imprisonment. If officials, soldiers or eunuchs smoke opium they will be beaten and cangued”.

Editor - In 1820-21 the great opium dealer at Macau was Shu Yip Hong. When he was caught he was merely banished as a slave of the army but we hear his wealth purchased comfort in that distant province and he is now conducting a flourishing trade there. Chinese law surely is a net, as they themselves say.

Vol 11 No 16 – 17th April 1838

A 20 year old well-dressed youth from a respectable family, an army recruit, lost $50 gambling which was well beyond his ability to repay. He went to the army post at the end of Old China Street (at the entrance to the foreign factories) and drank a bowl of laudanum.

Eventually the other soldiers informed Dr Cox but it was too late. The corpse was laid on a plank and carried to his friends for disposal.

Vol 11 No 16 – 17th April 1838

Editor - a creditor of Kingqua has written to the Canton Register, signing his letter as ‘M’. He reports that Hong’s debt at over $2 millions, He says it should be repaid concurrently with Hing Tai’s debt.20 Hing Tai is in bankruptcy but King Qua still trades and is formally allowed to do so.

The debts should not be mingled for repayment otherwise we will never get our money – everytime there is a repayment due another Hong will ‘fail’ and settlement negotiations recommence.

Vol 11 No 16 – 17th April 1838

Hong merchants’ letter to the foreign trade:

You are not satisfied with repayment of Hing Tai’s debt in 9 years but we are unsure if we can achieve even that. Every year we have to pay 300,000 Taels to government as tribute, military expenses in Sinkiang, subsidies for port works and purchases of ginseng for Peking.

We are paying the revenue claims on Fat Qua Hong of 300,000+ Taels and Hing Tai of 100,000+ Taels.

We all have our own foreign debts to manage and discharge.

Now King Qua is in arrears on revenue payments of 300,000 Taels and his foreign debts are over $1 million. We understand you will co-operate with us in respect of King Qua and try to prevent his bankruptcy. Although our accounts with you are marginally profitable on gross income, our expenses for repairs, labour and salaries make it unprofitable. You should know that if we have to pay Hing Tai’s debts quickly it requires us to temporarily cease payments on your other debts.

You may not know that we have had to solicit Imperial permission to pay the duty we owe by periodic payments over the next three years. You must be realistic and accept nine years if you wish to continue friendly trade.

Sgd Howqua, Mowqua, Punkiqua, Kingqua, Goqua, Mingqua, Sauqua, Poonhoiqua, Samqua, Kwangqua and Takqua.

Vol 11 No 16 – 17th April 1838

Viceroy Tang’s Edict, 11th April 1838:

“I have received more memorials from Dent, Jardine and Turner about Hing Tai Hong. They say Howqua assured them their claims would be dealt with quickly but no settlement agreement has been made. Howqua agrees that in the last four years foreigners have paid $1,500,000 to the Consoo Fund but he pleads poverty and asks for nine years. Howqua reminded the foreigners that the old debts of Gnewqua and Ponqua of nearly $2 millions were agreed for settlement in 10 years.

“The foreigners reply that the amount of trade then was small. Today it is nearly doubled. Between 1829-34 the debts of Manhop and Chunqua of $2 millions were paid by the Company out of its tea purchases when it only sent 30 million lbs a year. Over the last three years the Co-Hong has paid $378,434 each year in settlements from the Consoo Fund but we have paid the Consoo tax ($1½ millions approx), on a trade of $40 millions for each of the last four years, without any new claims. The foreigners say periodic payments are unreasonable and unjust.

“Turner says between 1829 – 34 the Co-Hong paid debts of $2,226,767 and revenue of $488,619 for insolvent Hongs. This equates with an annualised rate of over $540,000. It means the Hongs can pay more supposing no interest is allowed. He also says the trade, and thus the Consoo Fund, has increased in recent years and no new claims have been made on it. He says he looks to the Chinese government for settlement as it makes commercial law and licenses the Hongs for foreign trade. He provides a table of trade statistics:

Year

1832

1833

1834

1835

1836

1837

Tea exports

347,318 piculs

355,191

401,350

484,340

468,066

544,119

Silk exports

6,283 bales

4,436

8,061

9,000

9,223

10,762

Cotton imports

449,068 piculs

417,398

442,640

630,746

506,117

642,372

“On examining the history of Hing Tai Hong it is certain the foreigners brought their trouble on themselves by lending repeatedly without repayment. They take large risks with their capital and secretly plunder the country. I did not enquire into this in deference to the Imperial order of benevolence to foreigners. I merely ordered the proprietors seized and their property distrained while the foreign and Chinese merchants united to find a solution. I believe 12 years is a reasonable period for repayment and so ordered but the foreigners oppose and scheme for earlier settlement. This is unreasonable.

“For example, the Consoo Fund was intended as a reward for the Hong merchants. It is not accumulated from year to year. Then the Hongs proposed to pay the Consoo Tax into the general revenue to secure their obligations for former debts. This was honourable. The foreigners say the Consoo Tax is solely for them - to indemnify foreign debts. Would they seriously hold, if the positions were reversed, that it was not part of Hong profit but simply a fund for debt-repayment?

“Turner says trade has increased but who can know if it might not decline? I have to keep the two provinces tranquil and submissive, both Chinese and foreigners, yet I accept to deal with this trivial matter of debt. Dent and the others seem dead to my kindness. They say they have protested for redress to their own government. This is a perverse attempt to interfere in the administration of China. They should study and digest our law and make themselves aware of its awful majesty.”

Vol 11 No 16 – 17th April 1838

Viceroy’s edict on the hospital ship, 11th April:

“If it is not quickly removed I will seize the two involved security merchants and their compradors and linguists and send them all to the Nam Hoi Heen for punishment.”

(a similar Viceregal Edict concerning decked ferry boats is also mentioned but not reproduced)

Vol 11 No 17 – 24th April 1838

A Pass System was instituted at Bombay, to bring the opium production of Malwa within the Company’s tax-base and thus take a profit off the Maratha/ Parsee/ Portuguese supply to China:

Passes issued at Bombay

Passes issued at Malwa

Imported to Bombay

Exported from Bombay

645 chests up to 23rd January 1838

4,446 chests up to 23rd January 1838

4,205 chests between 8th Nov 37 – 30th Jan 1838

236 chests between 8th Nov 1837 – 30th Jan 1838

Sgd J Taylor, Opium Agent at Bombay, 31st January 183821

Vol 11 No 17 – 24th April 1838

Local news – before Governor Ke left for Peking, all the local magistrates gave him presents. The Poon Yu heen offered $2,000 but we hear this gift was rejected because the Shun Tak heen had given $3,000.

It seems the Foo, Chow and Heen magistrates must be assiduous squeezers if they are to satisfy their superiors. To be an honest official in China is not easy.

Vol 11 No 17 – 24th April 1838

The Canton Press reports that all the creditors of King Qua have agreed to not petition the government for the Hong’s liquidation if they can be assured of receiving the same deal as the creditors of Hing Tai. This suggests the creditors have decided to help King Qua trade through. The continuing Hongs say there is a reasonable prospect of success.

The reason for this different treatment is clear - Hing Tai’s debts accumulated through trade whereas King Qua’s debts are for outstanding loans. Trade debts are legally recoverable, unregistered loans to Hongs are not. The Canton government will not assist foreigners in recovering either principal or interest on their loans.

The Hongs have resolved to earmark an adequate part of their profits and pay them into the Consoo treasury from whence at year’s end they will be jointly disbursed in settlement of debts.

Vol 11 No 17 – 24th April 1838

Letter of 11 Hongs to the foreigners, 20th April 1838:

“You suggest that out of our commission of 5 Taels per picul of tea, we should set aside 1 Tael for debt repayment and thus the settlement will not be onerous. Our investigation suggests this arrangement will cause real hardship. The 5 Tael commission is not actually paid to us.

“Sometimes we contract for tea and before delivery the price falls or rises. Then we have to amend our contracts and the 5 Taels often gets absorbed in reaching agreement. Sometimes we buy tea on opportunity or order it directly from the farm. In both cases we cannot fix a price with the farmer until he has completed production and costed it. This is how we do business in China, not by contracts deeming what the future situation will be but based on actual harvest quantities and qualities. We do not force a man to sell at a fixed price if it is less than he needs. What the teamen charge depends on the size and quality of their production. If it is better than sample, they renegotiate. They cannot be restrained by contracts. Where does the 5 Taels commission come from in such common circumstances?

If you say we should sell as soon as we buy, it is only possible for 20-30% of our tea trade. You come here and order a particular tea at a particular price. We have to see what is available. When we have simply deducted the 5 Taels and remitted the balance to the teamen they often repudiate our orders. It is also the case that when we have obtained teas for you, your tea tasters take exception to the quality – declaring good tea as not good. Finally we note that tea prices in England have fallen and some buyers are reneging on their contracts, alleging differences of quality. In these circumstances much of the tea we have on hand is sold at a loss of 3 –10 Taels per picul. You know all this very well. Where is the 5 Taels commission in such circumstances?

Duties and fees on tea cost us 3 Taels. A fourth Tael is consumed by interest on your prepayment, transport charges and the cost of a small surplus over order in case of shortage. Our own costs and hire of labour comes from the fifth Tael. You think we have a spare Tael when it is seldom the case. When we dealt with the Company, it shared its tea purchases amongst us, and we Hongs could anticipate a joint profit of 500,000 Taels or more each year.

The Consoo Fund (Hong Yung) is just a name. There has never been an accumulated fund as such. Every year we pay first the revenue, then our operating expenses. Long ago, when a Hong failed, we agreed to extend the Consoo Fund, which is a fund for our general affairs, to include debt repayments and each of us pay-in according to the size of our share of foreign trade. If our trade is unprofitable, the only flexible thing is the operating expenses and we have to adjust our salaries, sometimes to the extent of 50,000 – 60,000 Taels per year. Big Hongs could do this but small Hongs fell behind. As their capital declined, they were forced into buying from you dear and selling to you cheap to address your perceived increased risk in dealing with them. All they could do was bear the difficulty until they recovered or failed. But every failure involved the whole body of Hong merchants in expense.

There were Hong failures before the Company ceased trade - it is not a new thing. Since then Fat Qua and Hing Tai have failed with combined debts of $2.9 millions. The continuing Hongs have reported debts of $2.2 millions in new business and $100,000 in old business. In addition to these, we have to pay public expenses of many hundreds of thousands of dollars each year. The annual cost of maintaining our Hongs totals 500,000 – 600,000 Taels.

Since the Company ceased trade our shares of tea sales have not been profitable. The extra charges and duty payments are variable to the extent we cannot calculate them and never know if our business is profitable or not until auditing afterwards. The failure of Hing Tai has caused the duty and charges on cotton to increase from 8 mace to 1 Tael 1 mace; the duty and charges on tea have increased from 2 to 3 Taels. These are the chief commodities of foreign trade and neither is profitable. You say the quantity of imports and exports have increased but from our perspective, this simply means our losses have increased. Losing year after year, paying interest on interest, we have so quickly become liable for $2+ millions. This results from the change in trading style since the Company ceased to come. We are having difficulty staying in business and you want us to assume onerous responsibilities for debts.

We have discussed this repeatedly amongst ourselves and have resolved that each Hong shall earmark his import and export profits and Consoo tax receipts and place them in the Consoo House (under his own control) and at year-end this fund will be disbursed to you in settlement of your debts. Hing Tai’s debt will be paid in 9 years. The other old debts and public claims will be settled as previously agreed. In future public claims will be settled as they arise. Any surplus will be redistributed amongst ourselves.

Concerning King Qua his problem makes settlement even more difficult. These are the facts of the case for your information.

Vol 11 No 17 – 24th April 1838

Chinese Repository, June 1837 - US Consular Establishments in Eastern Asia:

America is new to China; she has no mistakes to correct. She is comparatively free of involvement in opium trade22 and will soon be entirely so once the US Consuls in China are empowered.

The Canton Press of 21st April has an article copied from New York Journal of Commerce discussing how US Consuls in China can ameliorate difficulties with the Chinese.

It notes that Judge Oakley of the Superior Court at New York declared, in the case of Oliver G Gordon v Edwin W Benjamin, “if the American government is free of alliances with other nations, free of ecclesiastical establishments and clear of any connection with the opium trade, it can counter the Chinese arguments against relationships with foreign countries.”

Editor – the above initiatives are largely the work of a leading local American who occasionally writes to us under the nom-de-plume of CCC. He should be congratulated for attempting to prod the American executive into remodelling its consular service in east Asia. The new American face in China is to be unspotted by connection with its commercial past or its missionaries.

Britannia cannot be so easily freed of suspicion. CCC thinks the British government should withdraw its protection from Britons engaged in opium trade. He acknowledges the reliance of India on opium income but feels Britain is merely using this as an excuse for delaying its clear national duty. The Canton Register thinks no government should be required to denounce its own citizens to the Chinese. China neither acknowledges the existence of our governments nor extends its law to us. It is for China to take the first step.

CCC wishes to free America from the stigma of opium trafficking. Britain just stumbled on the drug in the course of exploiting India; Americans have to go our of their way to get it. American opium trade in the year to July 1837 was $275,621 (451 chests) imported under American flag vessels and $1,939,704 in Indian opium brought in English ships for American account.23 If CCC had been here pre-Lintin he would have seen the American flag waving over a receiving ship at Whampoa.

The Americans get more involved in trade than we do. For example in 1817 the US ship Wabash was delivering contraband at the Nine Islands when it was attacked and several of its crew killed. The murderers were later executed and their heads exposed at the entrance to the inner harbour of Macau.

In the development of free trade in England, Charles Grant promised to bring the opium monopoly in Bengal before parliament. If the monopoly is abandoned, we cannot stop the people growing poppies themselves for a law to prevent the people from distributing it would require a damaging interference in private enterprise. Anyway, if Bengal supply diminishes, it will be replaced by Malwa. If both Bengal and Malwa opium is unavailable does CCC think that the drug will cease to be sold? Why, the enterprising peoples of the United States might very well grow it themselves. Could Congress, the Executive or any State legislature prevent it? It is a right of free agency of citizens beyond the control of any Constitutional government. Besides America is sunk in an endless debate on the slave trade and decades will pass before it turns to opium. The fact is that opium, foreign trade and corruption exist in the world and this trade will continue so long as they do.

Vol 11 No 17 – 24th April 1838

Viceroy’s Edict to the Hongs on ferry boats, 22nd April 1838:

“In 1806 Viceroy Lee had already reported regulations for ferry boats to the Emperor. In 1814 the Viceroy Tseung promulgated the following instructions. He ordered the Customs Houses to issue and examine the papers of Macau ferry boats and search them. If smuggling was discovered it was to be stopped. When boats left Canton they required a Customs pass. If they went to Whampoa they delivered the pass there; if they went to the foreign warships outside the river, they delivered their passes at the Bogue forts. On return they collected a pass at the Bogue and delivered it at Whampoa or Canton depending on their stated destination. If the boat left from Whampoa downriver it got its pass there and delivered it at the Bogue or Canton. Each Customs House, on issuing a pass, communicated the boat’s destination to the cruisers and forts. Monthly returns of passes issued were to be reported to the Hoppo.

“Viceroy Loo received the Imperial instruction that the Company’s schooner (Louisa) was not to fly a flag.

“When I became Viceroy I examined to see if any decked or masted ferry boats came to Canton and anchored in the river thus breaking the law. The Hong merchants have repeatedly been ordered to drive the boats away but recently they have returned just like before. They smuggle goods, sell opium and defraud the revenue. This is due to negligent enforcement. The Hong merchants and enforcement officers should be punished. But before I do that, I direct you once more to uphold the law. The Hoppo will cause his officers to issue passes to only small open boats and report any smuggling. Large decked and masted boats are to be expelled.”

Vol 11 No 18 – 1st May 1838

There has been some interest in India concerning our revelations of the conduct of the Company’s Agents in Canton. We append the reports.

The Englishman, Calcutta, 25th January 1838:

The Canton Register of 12th December 1837 denounces the Company’s remittances from China as self-interest prevailing over public duty. Why does the Company operate a finance agency at Canton when it has been prohibited to trade there? If remittances are so important, why does not the Company establish a finance agency in every foreign port?

We all know the Company is a great promoter of patronage. A few new people in powerful positions, above the usual service requirements, add to the wealth of the Directors who appoint them. The Company cannot even forego the trade in opium which it grows in India far more cheaply than it could in England. It’s the same self-interest underlying the finance agency at Canton. These agents in Canton are looking after themselves and their friends as much as the Company. The merchants of London, Liverpool and Canton will have to petition the Board of Control if they want the removal of the Canton agency.

The Company has to send £3 millions to England annually to pay the ‘home charges’. It should send this money directly and avoid destabilising private trade – that requires openness. The Calcutta merchants do not complain of the Company’s remittances as it does not concern them. They believe the loans are made fairly but their complaint is that the Company, as government, acts without consultation. The occasional shortages tempt private capitalists to speculate only to find their investments unprofitable when government money suddenly floods the market. On the next shortage, fearing a similar experience, they withhold funds only to find the government does likewise. These unexpected and unilateral financial operations of the Company thus cause fluctuations in the exchange rate independent of the factors which might normally be expected to effect it. The objection to the financial operations of the Company in China is that the agents advertise only some of the terms and this enables them to favour certain parties and to deny funds to others. This is the allegation that the Canton Register is making.

The Company’s regulator is the Board of Control and this Board is directed by accommodating politicians. If the Company insists China trade finance is too valuable to be foregone, the Board will agree. But at the least it should require the Company to issue rules to its Canton staff and make them public. In fact the entire agency must be illegal in light of the end of the Company’s monopoly and its statutorily-required withdrawal from trade. The Company has no revenue in China. Its funds are drawn from Bengal and sold competitively in the market at Canton to finance the purchase of Bills on London. It is now said that private merchants cannot equally share in the availability of these funds which are directed to the Agent’s friends. The Bengal government should starve the Agents of cash and force them to be honest.

Letter to the Editor of the Englishman:

You libel the Company’s agents in China by publishing the Canton Register’s assertions. I deprecate the Company’s finance agency in China but I have no doubt the Agents are all honourable men and the rest of the foreign community at Canton will corroborate this. Sgd ‘A Canton Merchant’

Calcutta Courier:

The Canton Register tells us the former Agents distributed advances with partiality. The present staff of the Agency are not the people they accuse of partiality. They complain the present Agents only for valuing tea unfairly. J R Reeves used to work for the company. Now he is employed by Dent but his own valuation is accepted by the Agents for trade finance.

Editorial – Our evidence is firstly of merchants with no goods to export applying to the Agents for funds at a fixed rate of exchange and transferring title to those funds to other merchants for profit. All the Calcutta merchants trading to China know about this. It means the Bengal government does not get the market rate for its funds and allows the missing balance to its contractor.

Secondly, on 14th October 1837 the Agents, per pro J N Daniell and T C Smith, advertised funds for sale but on 18th October withdrew the offer having transferred the entire amount to Daniell & Co, which is the business of one of the Agents. We do not say the Agents have been corrupt, only that they are not getting the real return on their employer’s funds.

The fact is we have adequate private capital in Canton to fund our own trade.

Vol 11 No 18 – 1st May 1838

Local news – the shipping at Lintin removed to Hong Kong on 25th April

Vol 11 No 18 – 1st May 1838

London news - W H C Plowden, now of 8 Devonshire Place, has proposed to the shareholders of the Company that he should be made a Director. He first served in India and then spent 30 years in China, rising to President of the Select at the time of Baynes’ rebellion.

Vol 11 No 18 – 1st May 1838

The Canton Press says our comments on King Qua’s debts are unclear. We say there is no precedent for vicarious payment of an insolvent Hong’s debts until that Hong has been declared bankrupt.

We will elucidate by quoting from ‘The Chinese Security Merchants in Canton and their Debts’ - “The four solvent Hongs sought to monopolise the foreign trade. The Select responded by managing the business of the five insolvent Hongs under a Trust Deed. Conseequa, Exchin, Manhop, Punkiqua and Goqua agreed with their creditors to trade through and successfully did so.”

That is the course we commend to the foreign creditors of King Qua. We are not trying to injure the prospects of the British government in getting redress for Dent’s group.

Vol 11 No 18 – 1st May 1838

Letter to the Editor from a British merchant CGR – I write in support of my American friend CCC. He believes the Consoo tax is merely a paper tax and not the source of a fund to settle foreign debts. Many of us merchants agree.

The reasoning is as follows – when the old claims were paid off in 1834 all the Hongs knew their liability for foreign debts had been discharged. Thereafter the Hongs bought and sold without ear-marking profits specifically as the Consoo tax which simply merged into their (minimal) profits. Since 1834 we all know the Hongs have been trading too cheaply. They are not getting a fair price for their involvement even if, as you say, they still include the Consoo charge in their prices. The fact is that their businesses are unprofitable and they are one-by-one sinking, regardless of the increased level of overall trade.

Some foreign merchants insist they have paid Consoo charges since 1834 and the fund must by now approximate $1 – 2 millions if it has been collected on all the relevant trade. The Canton government and the Hong merchants both say no Consoo charges have been collected since 1834. The Viceroy identifies the charge as a fund for the benefit of the Co-Hong and indivisible from the Hongs’ ordinary profits-in-trade. The Hongs say the fund existed in name only and was never a fund of actual money. They say ‘whatever remained’ after settling public claims went to defray their business expenses. Whether you call this remainder Hong profit or Consoo Fund, it was used to meet current expenditure. This knowledge allowed CCC to not mislead his trading partners as to the existence of a reserve fund for debt repayment.

The foreigners raise two objections.

Firstly, they say local officials extort from Hongs and diminish their profits. On extortion it is CCC’s view that 80% of the informal taxes taken from the Hongs are for public works. That should put them on the same footing as Imperial duty. The fact that the Chinese government earmarks Hong funds for particular projects – riverbank repair, funds for Sinkiang, etc – does not alter their nature. They are all enforceable Imperial taxes.

Secondly, foreigners say it is for the Hongs to make arrangements to meet the cost of insolvencies amongst their brethren. We should recall their resolution of 20th April whereby each Hong will set aside its profits-in-trade and Consoo receipts and disburse the same at each year’s end when all debts are to be paid.

Howqua refuses to do business with the English and has become our most powerful competitor in tea exports. Do we wish to make him the director of an uncompetitive monopoly under which our trade will wither? This is what CCC fears – the tendency of large insolvency payments to strengthen the Consoo and revive the combination of its members. Continued in the next edition ……

Editor – If CCC is right, why were woollens, calicoes and iron exempted from the Consoo tax? Surely the present determination of the Hongs to pay the Consoo tax into the Consoo House is a confession that it is a public revenue not Hong profit. We say there is this tax; its purpose is to pay foreign debts, and mingling it with trading capital alters nothing.

…… letter to the Editor from CGR:

There are now 20 ships selling opium outside the river and on the East Coast and 30 armed boats smuggling the drug in the river. There is some authority to expect the US government to take a moral stance on the subject of its nationals being involved in opium smuggling.

The US Treaty with France of 1778 provides that where the citizen of one country commits crime in the other he shall be amenable to judicial process in the host country. The treaty with Sweden of 1823 requires the citizens of each country to submit to the laws of the other. The convention with Britain of 1815 provides that the merchants and consuls of each country are subject to the law of the two countries. The treaties with Russia, Prussia, Austria, Spain, Denmark etc all contain similar provisions. Several have lists of contraband that is offensive to both countries. The treaty with Morocco of 1786 provides that disputes between US nationals will be settled by the US Consul. In cases of injury or murder of a Moroccan by an American or vice versa the matter will be settled under the law of the country, the Consul assisting at the proceedings. The conventions with Tripoli and Tunis are similar. The treaty with Algiers (whilst under French occupation) gave the Dey personal responsibility to decide disputes between his citizens and Americans. The treaty with the Ottoman Porte of 1830 provides that American criminals will be dealt with by their Consul following the usage observed towards other ‘Franks’.

These extracts reveal a consistent American policy in respect of its nationals overseas.

The US Treaty with Thailand contains no agreement for a resident Consul but lists opium as contraband and requires Americans to not trade in it there.

In sum, the U S Government unreservedly submits its citizens to the foreign country’s judiciary in all cases it is confident of justice. The Thai treaty suggests America is reasonably confident of obtaining justice there. If a similar treaty was concluded with China, the majority of American traders at Canton would become criminals subject to Chinese law.

The American government believes the Chinese have always pursued a benevolent course. They call on the representative of each foreign nation to restrain his own countrymen. They prefer to prevent trouble than allow it to arise and punish afterwards. There seems to be no reason to provide protection to Americans at Canton. The US administration has already considered the opium trade and concluded, in respect of Thailand, that it is wrong. For consistency it must take the same position in China. Americans in China should consider their diplomatic code and eschew trade in opium. Sgd CGR

Vol 11 No 19 – 8th May 1838

Edict of Adriao Accacio da Silveira Pinto, Governor of Macau, 2nd May:

The Supreme Government in India permitted a small number of Portuguese lorchas to be registered at Macau to meet the needs of the local people. Now many foreign schooners and boats arrive.

After 20th May every ship or boat entering the inner harbour of Macau, excepting only the Superintendents’ cutter Louisa, will require a permit and comply with the same regulations as Portuguese lorchas.

Vol 11 No 19 – 8th May 1838

Notice, 7th May – The business of James Hamilton & Co in Canton ceased today. Anyone with claims on the company or business to transact should contact Jardine Matheson & Co. Sgd Wm MacDonald.

Vol 11 No 19 – 8th May 1838

Letter to the Editor – 4th April is the birthday of our Queen, daughter of Dom Pedro, Duke of Braganza. You will know she recently gave birth to a son.

The Macau government thought it appropriate on that day to auction off the Baron’s property. The decision was made by Pedro Jose da Silva Loureiro, Bento Jose G Seva, Joao Diaz and Vicente F Baptista, the four remaining members of the Leal Senado.

While they were having their sale, the Governor, the army, the church and most of the Portuguese people joined in celebrations for the Queen culminating in a splendid party at the Governor’s palace.

Sgd A Portuguese

Vol 11 No 19 – 8th May 1838

A shareholders’ meeting was held at India House, Sir James Rivett-Carnac in the Chair, to consider abolishing the Company’s Agency at Canton. Weeding, a shareholder, proposed the motion.

He said “the Agents at Canton draw Bills on Bengal which are bought with either specie or Bills on London on condition the goods secured by the loan are placed under the Company’s control. The Bills are drawn for 2/3rds of the value of the goods shipped. The Company has a right of sale if the Bills are not paid.

“The effect of this financial operation has been to cause fluctuations in the exchange rate. Many thought the business illegal. If it was legal it was certainly against the spirit of Cap 85, Sec 4 (the Act abolishing the Company’s monopoly in China.) which provides ‘the company shall … after 22nd April 1834 … abstain from all commercial business not incidental to closure or converting its property into money’.

Weeding noted the cost of conducting Bills business in China (mainly Agent’s commission) was nearly £20,000 a year. Disregarding questions of legality, he said the business produced loss in England. Company trade was taken over by private merchants and manufacturers, the latter of whom made £700,000+ profit that first year, the rate of exchange offered in April being 4/11d to 5/- per Spanish dollar. Then in October 1834 the Company by public advertisement cut the exchange rate to 4/7d per dollar thus occasioning a loss of £50,000 on the merchants’ trade of the prior six months. The private merchants were then preparing to buy £1 - £2 millions of tea but, with £900,000 new capital circulating as a result of the Company’s Bills business, the price of Chinese exports increased to meet the extent of available funds causing an additional loss of £250,000, Finally instead of 30 – 40 million lbs of tea being available as usual there was 40 - 50 million lbs that first free trade year. This belated over-supply cause tea prices to drop at the end of the season by 20% making a notional loss on the earlier purchases of £400,000. The effect of all this was that the Hongs made a windfall profit that year while the Company’s 2-year tea stock in London was devalued by £600,000. Thus all parties on the British side lost money. Secondly the Agency has enabled the Hong merchants to increasingly export Chinese goods on their own account, independently of their imports and thus the British trade of both India and England are reduced.

“From May 1835 – April 1936 the company transferred £2 millions at its own rate of exchange to the home treasury via China. Subsequent years were similar. The company is sovereign in India. It ought not to compete with the capital of private British merchants. The company gets large profits on bullion paid into its treasury. The profit on its Rupee is over 5% with interest. The legal justification for continued trade is mere sophistry. I propose the Bills Agency be closed.”

J C Whiteman (now a Canton free-trader) seconded the proposal. He noted the Company had agreed to refrain from trade and commerce in India for forty years. It appeared to be in breach of this undertaking. The profit on the remittances to England was not less than 10-12%. The agency was unnecessary as the American trade with China of £3+ millions a year was already mainly financed by British capital. The Company would do better, if it insists on continuing involvement in China, to negotiate to open other ports on the East Coast.

Numerous shareholders spoke against the motion. A popular view was that if the Company was in breach of the law it was up to the government to act against it. The Chairman said he was sad to hear shareholders arguing the interests of everyone except the Company itself. He said fixing rates of exchange was complicated by the numerous interests to be satisfied and should be left to the experts – the Directors. Money had to be remitted to England and this was always bound to irritate the private merchants who have already protested the Bills Agency to government. Government had reviewed the matter, drawn up a Bill that was subsequently enacted, and permitted the remittances. Could anyone suggest another way of remitting the home charges to London? If not, they should not interfere with the existing system.

Shareholder Twining (the tea wholesaler) said the Company’s financing activity in China increased the price of tea at the expense of the British consumer. If the shareholders agreed that tea now costs more because of the Bills, they should support the motion. Weeding’s proposal was then voted and defeated by a huge majority.

Bombay Gazette Editorial, 7th March 1838 – Rivett-Carnac is likely to lose his reputation for liberality. The changes of 1834 were intended to benefit the trader, the agent, the manufacturer at the expense of the Company – that is the name of the game now. All our manufacturers and merchants will promote the national economic interest. The government is right to remove impediments to trade. We free-traders will create and spread wealth in a way the Company never did. Indian agriculture and commerce require better communications; education of the Indian workforce must progress. If Rivett-Carnac is to be consistent he will have to oppose these needs in preference for the needs of the Company. Why, even the government’s supporters are wrong if they oppose the will of Leadenhall Street. In fact the interests of the country and the people are identical. Rivett-Carnac says the remittances are essential to pay the home charges which include the shareholders’ dividends. He thus puts the interests of the Company in direct opposition to our mercantile interests. If the home charges were remitted direct from India we would not complain. Company funding in China causes fluctuations in exchange rates and commodity prices. The interests of the free trade are sacrificed to the whims and patronage of the Directors. What right does the Company have to monopolise the exchange profits from trade in China? The Company should obey the law and confine itself to governing India. All we can do is petition parliament but there is little chance of relief from the present ministry. The Company’s Bills business increases the price of exports, encourages the under-capitalised speculator and diminishes the profit of the better merchants. This forced demand for exports is raising tea and silk stocks in England and threatens to collapse prices. By destabilising the market, the Company encourages the possibility of a Bill holder failing, in which case it would assume title to his goods and get back into trade via the backdoor. The Company has no political standing in China, it should not influence the commerce of that country.

Vol 11 No 20 – 15th May 1838

Excerpt from Gernelli Coreri’s ‘Voyage Around the World, 1695’:

The first part of China I visited was Macau, also known as Ah Ma Gow, the name of an idol adored at that place. It is sited on the point of an island called Hoi Chu in Canton Province. It is shaped like an arm surrounded by sea except at the shoulder. The land features hills, valleys and plains. The houses are in the European style. The churches are fine especially the Jesuit College which has a noble front adorned with many pillars and contains a relic (a humerus) of St Francis Xavier. There are also churches of the Augustines, of St Francis, St Laurence, the Misericordia and the nuns, all well-built. There is plenty of stone and the streets are all paved.

The city has over 5,000 Portuguese and over 15,000 Chinese residents. It was founded 110 years ago after Portuguese came from Malacca to China for trade but suffered from bad weather in which many of their ships sank and made them request for a safe harbour. They asked for a place of safety until the wind permitted them to return and the Chinese, for their own advantage, gave them this peninsula, then inhabited by pirates, requiring them to expel the pirates before occupying the land.

The Chinese permitted them to build thatched houses but by bribery the Portuguese were able to build substantial structures including forts. One is at the harbour mouth called the Bar Fort built on Penha Hill below the hermitage of the Augustines. The other is the Monte Fort, a bigger fort, and there is a third one named for our Lady of Guidance (nossa Senhora da Guia). Felipe Ferrarina was wrong to say Macau belonged to Portugal and was taken by China in 1668. It has never experienced revolution and remains a Portuguese colony by Imperial grant for which the Portuguese pay both a yearly tribute and taxes on ships visiting and goods landed. No ship can enter or leave without Chinese permission.

It is not a productive colony and all provisions are brought from the north. It is as though the Chinese had imprisoned the Portuguese here. They have secured the narrow neck of land linking it to the mainland with a wall and a gate which they can lock when they please and disrupt the inhabitants’ food supplies whenever necessary. Agricultural produce is so abundant in China that a silver dollar spent on bread will feed a man for half a year. The Chinese allow the Portuguese the government of their city in respect of administration of justice for which the Portuguese pay 600 Taels a year plus the Customs dues on the ships and trade. The charge on each ship entering is 1,000 Taels. The city chooses its own Judge who manages all criminal and civil disputes that do not involve Chinese. The political government is by a Captain-General appointed in Lisbon and the spiritual government by a bishop. All these officers are maintained by the city. The Captain-General gets a dollar a day and $3,000 every three years; the bishop gets $500 a year and army captains get $150 annually with proportionately less to the soldiers. These costs are met by a charge of 10% on Portuguese goods and 2% on money imported. The Portuguese government in Lisbon pays nothing towards the upkeep of Macau.

The city is also burdened by visits of Chinese officials who have to be lodged and entertained. One official ordered a cow to be slaughtered on his arrival as he wanted a little beef to ease some indisposition. All income depends on the sea. Everyone lives by trade. The gentry deal in money by loaning it locally or sending goods or gold to Goa. Although the city has no food production of its own I have never fed so well as at Macau. The women are excellent cooks.

When the trade with Japan flourished, this city could have paved its streets in silver but after the slaughter of the Christians at Nagasaki, the trade was lost and the Macanese fell into poverty. They now have five ships but these never return the 300% profits that the Japan trade did. They are further threatened by the new East India Company which prohibits their trade at some ports and in some commodities.

Vol 11 No 20 – 15th May 1838

Editorial – CGR has quoted American foreign policy against us. We revere Washington, the Pilgrim Fathers and the patriots of Bunker Hill. We attend closely to the hopes and prospects of the American people. But we also know the history of the World.

CGR expresses a democratic faith in man whilst there is persuasive authority for the proposition - “the heart of man is desperately wicked”

Vol 11 No 20 – 15th May 1838

Edict of Viceroy Tang, 27th April 1838:

China tenderly cherishes foreigners and treats them the same as its own people. But there are rules of conduct for both foreigners and Chinese that are worthy of obedience. When a foreigner is sick he applies for a permit and goes to the hospital at Macau for treatment. Other hospitals are not permitted, to avoid throwing the established regulations into disorder. Hence I ordered the expulsion of Baker’s ship at Whampoa. The foreign merchants who enjoy the privilege of trade with China should implicitly obey our law. This is a fundamental principle.

Elliot says Baker’s ship has been bought by his King for a seamen’s hospital. I infer his concern for the health of his people. Elliot says he will speak to his King and come to Canton to attend to the matter. His conduct is worthy of commendation.

I command Howqua to instruct Elliot to request for a permit to come to Canton and order Baker’s ship away before the end of this month. On leaving Baker may not delay anywhere. If he opposes, Elliot will order the destruction of the ship, which the foreigner’s say is unseaworthy, and the sale of its parts and report the same. This will conform with the law. If Elliot wishes to report this matter to his King that is for him to decide.

Foreigners have always been directed by the Hong merchants. Elliot asks for direct communication. This is contrary to our practice and impossible to allow. Elliot merely has to manage British affairs with justice and propriety and he will then receive my tender consideration. He should not fix his heart on some alternative procedure.

Vol 11 No 20 – 15th May 1838

Edict of Viceroy Tang to the Hongs:

“Howqua and other Hongs say foreigners were only permitted to trade with shopmen in the eight articles (leatherware, chinaware etc). All other commodities traded and the payment of duty on them was the monopoly of the Hong merchants. By 1829 trade had increased to the point we agreed to extend the trade of the shopmen to include everything except the staples of the port. The staples were listed as 24 items of export, including tea and raw silk, and 53 items of import, including woollens. The shopmen were forbidden trade in these 77 items but Viceroy Lee allowed them a trade in all others and in the supply of provisions. This regulation is not being followed.

“The shopmen Mih Hing, Chan Keung, Fung Lam, Yik Tuen, Leung Lam Fong and Cheung Fuk have been selling tea and raw silk to the foreigners below Hong prices. This has caused confusion and reduced the profitability of the foreign trade to the Hongs. We petition for a prohibitory edict to the shopmen and their exclusion from the foreign factories.

“I, the Viceroy, know the Hongs have a monopoly of foreign trade and a responsibility to direct and manage foreigners. The two go together. They are supposed to be the only point of contact that foreigners have and they are bonded to be liable for the submission of foreigners to our law. The trade of the shopmen has previously concerned the government and attempts to cater for foreign wishes were made ….

The Editor declines to publish any more saying the Edict is absurd. He says he only published this much as the Edict was displayed on the warehouse wall of a Hong merchant. He says no Edicts are enforced and thus all may be safely ignored.

Vol 11 No 21 – 22nd May 1838

An important event has occurred in England. The Company has disposed of the last of its teas. After 200+ years of monopoly, the Company is finally out of the tea-trade. The India Company was chartered by Queen Elizabeth and abolished by Queen Victoria.

Attendance at the auction was huge and the remaining stock of 4.2 million lbs was quickly taken. Company Director John Petty Muspratt supervised. There was considerable competition to buy the last chest, which was of congou, and it finally went to the broker R Gibb at 7/6d per lb, far above its value. Muspratt then wished the trade health and prosperity.

The company’s teas are preferred by both wholesalers and consumers and these last offerings are expected to bear a high premium. It was publicly questioned whether the free traders will not establish a greater monopoly over tea than was ever exercised by the Company. Trade representatives said they will continue the Company’s practice of quarterly sales.

Vol 11 No 21 – 22nd May 1838

Official Notice of Elliot, 18th May – the Macau Governor requires Chinese boats having Britons on board to stop at the Bar Fort for examination. His instructions are designed to avoid excessive inconvenience. Should any Portuguese official within the inner harbour request for the boat’s passport, the passengers should direct the boatman to provide it. The Governor asks that no discussion be held with the official but, in event of complaint, it should be addressed to him. I request any Briton having complaint to address it to me first for transmission to the Governor.

Vol 11 No 21 – 22nd May 1838

Canton Press, 19th May - The Medical Missionary Society held a general meeting at the Chamber of Commerce on 15th May, Wm Jardine presiding.

A list of published medical journals was provided. The society would write to the Editors of each for copies. It was resolved to raise funds for the hospital in Macau. A list of sympathetic Englishmen and Americans was provided to whom the society would apply for funds. A subscription would be opened at the principal places of business (the main Agencies in the factories and the receiving ships at Hong Kong) for donations.

J C Green proposed, Bridgman seconding, that the presiding physician (Jardine) and Dr Anderson estimate the cost of providing the hospital with a store room for medicine, six male and six female wards and a room for the managing physician.


Vol 11 No 22 – 29th May 1838

The committee of the East India and China Association has presented its annual report. They have obtained the Company’s agreement to notify its expected remittances from India to allow the private trade to take precautions.

The Company expects its demand on India for 1837 and 1838 will be £3.2 millions per year. If there is any material change the Association will be notified. The main concern of the committee this year has been treaty violations of the Dutch at Batavia in respect of Customs duty on trade.

Vol 11 No 22 – 29th May 1838

To let – the lower half of 2 Creek Hong with treasury and office on Ground Floor. For terms apply to the Canton Register.

Vol 11 No 22 – 29th May 1838

Printing services:

Bills of Lading, Bills of Exchange, Opium Orders and Boat Notes

Linguist’s Reports, Cargo Reports


$1.00 per 100

$1.50 per 100

Apply to the Canton Register office.

Vol 11 No 22 – 29th May 1838

Peking news – Hoppo Wan of Canton is recalled and will be replaced by Yu Kwan.

Vol 11 No 22 – 29th May 1838

Edict of the Viceroy:

The Hoppo tells me the foreigners’ large ferry boats still come and go with smuggled goods. It has already been ordered that firstly foreigners must apply for a pass to come and go and secondly they must stop at forts and for all government boats for examination. If they decline to be searched or if they are found to have no pass or to have smuggled goods or arms or ammunition then they are to be detained. Masted and decked boats are banned from the river.

Now the Customs House at the Bogue has reported that four ferry boats entered the river in convoy and did not stop and report as required. When pursued and stopped the foreigners feigned incomprehension and continued on their way. This is contempt for our law.

The foreigners are not completely stupid; obviously the Hongs are not explaining the law properly. The Hongs must be ordered to give implicit obedience to the law.

A few days later two more boats separately entered the river and one departed the following day. None of these three stopped to get a pass. The officers pursued them and the foreigners fired muskets. It is fortunate no officer was wounded.

Four days later two more large ferry boats entered the river without stopping for passes. The officers chased them and the foreigners again opened fire with their guns. The Canton cruisers and the eastern fort at Whampoa also report the ferry boats pass without stopping.

The foreigners are indeed proud, obstinate and perverse. To be cont ……24

Vol 11 No 23 – 5th June 1838

Notice, 4th June 1838 – The Company’s Treasury is open for receipt of cash in exchange for Bills on India at 210 Current Rupees per $100.

Vol 11 No 23 – 5th June 1838

The Englishman, Calcutta, 28th April – Sales at the 3rd auction on 23rd April were knocked down at low prices due to strict law enforcement in China. 2,480 chests of Patna sold at average 682 Current Rupees while 1,500 chests of Benares averaged 535 Current Rupees per chest. Purchasers were chiefly buying for Bombay and China. Local speculators bought very little.

Vol 11 No 23 – 5th June 1838

China news – Iliang, the newly appointed Viceroy of the Two Kwang has gone to Peking to receive Imperial instruction before taking up his new post. He was formerly a chefoo in this province and his brother was a Treasurer here. His wife is a niece of the Emperor.

Vol 11 No 23 – 5th June 1838

Viceregal edict – When the Customs House staff encounter foreign ferry boats that do not stop for inspection, they alert the cruisers and forts but they say they can get neither to take any action against the boats. This is negligence.

The General and Admiral are to cooperate with the Customs. The Hongs are to reiterate the proscription to the foreigners. They may not bring large ferry boats into the river.

Vol 11 No 23 – 5th June 1838

A reward of $5,000 is offered for the capture of the 30 years old pirate Au Kin Sheung of Heung Shan. His wife has been seized and imprisoned and will be held until her husband is taken. He is reportedly in Cochin China.

Vol 11 No 24 – 12th June 1838

Notices:

Vol 11 No 24 – 12th June 1838

The Englishman, Calcutta, 3rd May – The well-known opium clippers Water Witch and Cowasjee Family have sailed from Calcutta for China with 1,190 and 1,469 chests respectively. Speculators are encouraged by the recent low auction prices in spite of the unsatisfactory state of the China market.

Another clipper is building for deployment on the East Coast of China. If the Chinese tolerate the coastal trade to continue then large profits will derive from the present depressed auction prices. If they continue to oppose it, it simply means that much of the opium will remain in storage at Lintin.

This year’s Malwa shipments are just commencing and it is now equal in quality to Company opium. We will soon know if production has out-stripped demand. It would be unprecedented for any part of the Company’s product to be withdrawn from auction for want of bidders but it is now conceivable. It is difficult to assess the demand for Malwa as, unless it is sold in Bombay, it is shipped from elsewhere by the original owners and no consolidated statistics are available.

The Company has acknowledged the existence of the Canton opium market but has not yet broken Chinese law itself. Perhaps the time will come when the Company itself feels obliged to trade in both opium and money in China.

Vol 11 No 24 – 12th June 1838

Friend of India 19th April, Editorial on Opium:

The prospects of opium trade are the gloomiest ever. Chinese opposition seems permanent. We are convinced their opposition is not simply to raise the quantum of bribes. They are enforcing the determination of Peking to eradicate the trade. Police actions have broken-up the smugglers’ delivery method (the fast crabs) and dispersed the opium brokers. The northern part of the China coast is watched continuously and our access there is precarious. We fear the price per chest could fall to 500 Current Rupees which will seriously diminish Indian revenue.

Effective Chinese law enforcement has now obliged us to introduce the Drug to China by force of arms. One armed vessel at Canton has already had partial success. We hear others are fitting-out at Calcutta which will be manned by Europeans. They will be able to resist the Chinese preventive service. We are therefore in the extraordinary position of preparing to start hostilities to land forbidden opium under our guns. There is no commercial precedent for this.

The opium trade is an aberration. On the one hand we see Britain, an enlightened Christian democracy, bent on increasing opium production in India expressly to drug the Chinese; whilst on the other, increasing Chinese effectiveness in excluding its importation. Chinese preventive measures have forced the price down by 30 – 50%.

Opium saps the foundation of all social, political and manly virtue in its users yet we now use ships bristling with cannon to enter the river under the British flag, resist the local police and land our contraband at whatever sacrifice in human life it may entail. Whether we consider the effects of opium, the agents who import it (at whose head is the Company’s government of India), or the violent means the agents are now using to force the trade, there is no historical analogy to draw on.

What is remarkable is that the smugglers who, by means of violence, promote this most destructive trade since the abolition of slave trading, deny they are barbarians!

Our use of armed vessels compromises the respect that the Chinese government can expect of its people. This development is therefore likely to provoke a breach. Elliot will say it has nothing to do with him. The Chinese will never believe him. They will note the British government gets the lion’s share of the proceeds from opium trade and will conclude the matter is between the two countries. If they are unable to stop the armed opium trade, they will inevitably stop tea exports and embargo all British commerce; indeed they have already threatened this. This will provoke on our side the widespread adoption of armed ships to conduct trade. We will thus be forced to a breach by our unbridled greed which has pushed opium sales from 4,000 chests to 40,000 chests annually.25

A stoppage of British trade will decide the matter. If reduced opium revenue in India causes reduced tea imports to England and the consequent loss of British revenue, the Company will be ordered to cease opium production.

Editor – we will not discuss the morality of opium trading. Readers will recall the discussion on legalisation at Peking in 1836. It was supposed by the foreign community that the recommendation to legalise opium import and use originated with the Empress. The provincial government here supported it. Since discussion ended, the internal correspondence of the Chinese government on this subject has been muted.

When the decision to oppose opium was reached, the enforcement officers here became more vigilant; deliveries from the receiving ships were disrupted and the smugglers reverted to the former system of bringing opium up to Whampoa for distribution. The existence of the opium trade depends on bribery of the revenue and other officers by the smugglers. The carriage is done in both ships and boats but we were unaware boats are armed beyond a few muskets for self-protection. There is no need for it. Sales and deliveries are done openly day and night. The boats anchor together, sometimes three to a tier, and deliver all along the river bank opposite to Canton and even to some government boats. The new opium distribution system has been operating for months and every day that passes makes it more settled. It is only smuggling in the sense that no duty is paid and officials are paid-off to not intervene.

The Chinese government will not stop trade to prevent opium imports – too many of their people are dependent on foreign trade. They will not lose the respect of their people. No rebellion will occur. On the contrary, if they stop the foreign trade there will be insurrection in both Fukien and Canton provinces. The only incomprehensible thing to us is why the Chinese do not use force to obtain obedience to their regulations. They do not go beyond publishing Edicts. Does the Chinese government lack the power or is it afraid of the people? It may be like the whisky distilleries in Ireland – known to exist, but beyond British government ability to prevent.

The Indian press is full of stories about the impending visit to China of a British Admiral. They speculate that Chinese officials will ask him to stop the trade by preventing British flag ships from carrying it. We think it is useless to predict Chinese actions by considering the responses that might be expected between European countries under international law. We have no treaty with China and no way of applying international law to our dealings. Indeed it is unknown to the Chinese administration.

If the Chinese ask the Admiral to stop the trade, he should say it is a matter beyond his power to deal with. Reciprocal smuggling occurs along the French and English coasts but is never a matter for formal complaint between the countries. Each country protects its own coast and smugglers accept the personal and pecuniary risk. At least, before the Admiral accepts any such duty to police the seas he should consider Chinese sincerity – do they really want to stop opium?

Vol 11 No 24 – 12th June 1838

A small 40 ton schooner is coming from Singapore to China for the East Coast smuggling trade. She is named the Devil.

Vol 11 No 24 – 12th June 1838

“Tobacco” from the Saturday Magazine:

At the time of the Spanish conquest of America, tobacco was smoked everywhere. The Spaniard Grijalva first saw it used in 1518 in a meeting with the headman of Tabasco. At about the same time they discovered it in Yucatan, Mexico. American Indians used it at their religious festivals, throwing the leaves on the fire and inhaling the smoke. It was probably used socially as well. Humboldt says it was used on the Orinoco from ‘time immemorial’. It was then introduced to Europe, although opposed by both civil and religious authorities, and is now universally used.

The Venetian and Genoese traders introduced it to the Levant and from there it spread to all Asia. It is now found in all the countries and islands that Europeans have visited.

The European history of tobacco is as follows:

In 1561 a Dutch planter gave seeds to Jean Nicot, Duc Villemain, the French ambassador to Lisbon and he sent them to Catherine de Medici who patronised it as a medicine. It became known as Herbe a la Reine until her death. The crowns of Europe railed against it. Queen Elizabeth opposed it saying it was a barbarian product and would promote barbarism in its users. King James later wrote his counterblaste, imposed a prohibitive duty of 6/8d per lb and restricted the production of Virginia farmers to 100 lbs per year. Charles I made tobacco a royal monopoly as it still is in the Netherlands and France. In 1624 the Pope denigrated snuff-taking and in 1690 the then Pope forbade the use of snuff in St Peter’s church in Rome. In Berne, Switzerland, smoking was ranked with adultery as a crime.

An interesting aspect of British production in Virginia relates to the farmers, who in early 17th century were all English bachelor employees of the London Chartered Company that was established to colonise Virginia.

To better settle these farmers, a shipment of respectable young women was sent out and they were sold for 120 lbs of tobacco each, being the equivalent value of the passage ticket.

In Asia in 1590 Shah Abbis forbade its use in Persia but found his subjects adjourning to the mountains, beyond his control, to smoke. In 1625 the Grand Sultan Amnrath IV proscribed smoking on pain of death. In Constantinople (where smoking is now universal) any Turk caught smoking had a pipe forced through his nose and, thus decorated, was compelled to walk the streets and endure the verbal abuse and rotten vegetables of the populace. In Russia the Grand Duke of Moscow proscribed tobacco with beating for the first offence and death if caught again. Any Russian taking snuff had his nostrils split. A special tobacco court was established in Moscow in 1631 and continued for 120 years. Tobacco prevailed in spite of all the opposition.

Editor – this history of tobacco gives grounds for optimism in our opium trade.

Vol 11 No 24 – 12th June 1838

Chinese handbill posted at the end of Hog Lane and on Mingqua’s Hong:

“I, Chow Kea Lan, a native of Ta Chow village, Shun Tak, will pay $60 to anyone who arrests my younger brother and takes him before the Shun Tak magistrate or brings him to our ancestral temple in Ta Chow.

“He was unfilial to his mother, he struck me and he breaks many other laws. I got the magistrate to banish him as a slave to the army in Yunnan but he has come back and is doing all sorts of illegal business in Canton. Recently, he brought his gang to my village, saying he had plenty of money here, broke into my house and stole my clothes. If I had been home I believe he would have killed me. Don’t listen to him, don’t come with him to my house. Just catch him and give him to the police. You will not be implicated.”

Vol 11 No 24 – 12th June 1838

Viceroy’s reply to Peking in May 1838 about civil disorder in Kwangtung:

“The people of Chiu Chow foo and Tung Kwoon heen in Wai Chow foo, Kwangtung are constantly assembling in crowds, fighting and robbing. The new Chefoo has travelled the areas and counselled the village headmen. This year Chiu Chow has somewhat improved but Tung Kwoon is still rebellious. The law must be enforced to tranquillise the people.

“Last year, in a dispute over non-payment of land rent in Tung Kwoon, seventeen people were killed and over thirty arrested and punished but this year the same dispute caused the deaths of seven more. I ordered an investigation into the origin of this dispute to see who is right and who is wrong so the matter could be redressed. But when I send soldiers, if they are few they are opposed, and if they are many the culprits run away. Robbery continues without end. At the beginning of this year I combined the civil and military forces and attacked. We have arrested 12 men in Tung Kwoon and are debriefing them. The work continues.”

Vol 11 No 25 – 19th June 1838

Notice – applications for advances on Bills secured on tea or raw silk exports to England will be received at 4/7d per Spanish Dollar, 50% in cash and the balance in Bills on India at 210 Current Rupees per $100.

Also 30-day sight Bills on India at 210 CRs per $100.

Sgd Astell & Clarke, agents to the India Company at Canton, 4th June 1838.

Vol 11 No 25 – 19th June 1838

Local news – 48 criminals from Shun Tak were beheaded on Sunday.

Vol 11 No 25 – 19th June 1838

The Dutch statesman Jan de Witte understood the contradiction of the India Company both governing and trading in India. A government promotes the interests of its manufacturers and merchants. A trader promotes his profit.

When the Company can make more money importing Japanese cloth or manipulating the supply of eastern spices, it does so to the detriment of raw silk imports for the Indian silk processing industry or freight for its shipowners engaged in foreign trade.

Editor – the merchant capitalists of England and India should unite with the traders and agents in Canton to break the money chains that restrict us.

Vol 11 No 25 – 19th June 1838

Sir Frederick Maitland, the Admiral commanding the East India fleet, is expected to visit China soon with a squadron of warships.

Vol 11 No 25 – 19th June 1838

Peking Gazettes - The Abbot of the Buddhist monastery at Poon Yuen in Poo Ching heen in Fukien has come to Peking to accuse the Small Swords Society:

“Chang Lau and Yuen Tiu Yuen are the chiefs. They appointed Heung Leung Yee as their leader and changed their name to the Beggars’ Association. They carry arms, extort from the people and seize men, women and children.

“In 1834 they seized 70 acres of our monastic land. I complained but nothing happened and I withdrew my monks into the monastery. Further seizures were made and I again complained. The culprits were informed of my complaint and captured one of my monks. They say they killed him but the body has still not been found. They have told people I know that they will blind me if they can find me”.

The censors have interviewed the Abbot and confirmed his report. They recommend an Imperial order against the criminals and action against the negligent officials.

Vol 11 No 26 - 26th June 1838

Whampoa Hospital Ship – at a meeting of subscribers to this institution last week, it was agreed that as Kin Qua, security for the Hope, is likely to be prosecuted if the ship remains any longer, the equipment and stores of the ship are to be sold to the Co-Hong for $8,000.

The new Viceroy of the Two Kwang Iliang had an audience with the Emperor in May and immediately left for Canton. The new Hoppo Yu Kwan is also on his way here from Peking.

Vol 11 No 26 - 26th June 1838

Editorial - the eleven Hongs offered on 17th June to settle Hing Tai’s debts in 8½ years. Given the passage of time, it is the same as the nine years offered previously except that they have specified 30th April as payment day each year. Whether we should rely on a response to our Memorial to the British parliament requesting that government’s intervention or accept the latest offer is up to the creditors but we should also be concerned for future debt.

If the Consoo Tax was honestly managed it would suffice for all claims. The Hing Tai creditors are in a position to demand that it is. The Hong merchants cannot be trusted to properly account for a fund in their own possession. The foreign creditors must be made joint-trustees of the Consoo Fund with Howqua.

We have threatened the Viceroy with British intervention. We should await its result. The Chinese will consider our debt repayments as a harness on us. They expect us to submit for nine years to get it. We must have immediate payment and security for the future. If the Queen can support us, by negotiation or otherwise, we could have safe trade next year. We should not accept this renewed offer which is so similar to one already refused. It is not in our long-term interest.

Vol 11 No 26 - 26th June 1838

Lieutenant Nicholas Polson of the Bengal Native Infantry has written an appalling book ‘Rough Notes on a Visit to China, etc’. On the basis of a couple of month’s stay here he has the temerity to offer an opinion.

He says China is interesting to a stranger but the resident foreigners know nothing about it. He says one has to go to Europe for information. At Macau he made defiling liaisons and appears to think we all do the same. He talks about Chinese ‘rights’ to oppose opium. He says it would respectful for us to obey the law.

Well, Rome forced its civilisation on Northern Europe and opium is doing the same for us in China. The trade relies on addiction of consumers and corruption of government. The causes of change may not always be defensible. The fact is that opium trade cannot be severed from the rest of it, but suppose that it was discontinued. China would be confirmed in her exclusive policies and Western religion, philosophy and technology would be excluded. We have only to look at the endless history of unchanging China to guess how long that state of affairs would endure.

Opening China means selling opium. Of course, the Company monopoly in opium should be ended. We must extend our knowledge to China so she may learn how to deal with opium. We refute Polson’s invention of Chinese rights.

Vol 11 No 26 - 26th June 1838

Mechanics magazine - The sale of fresh-water fish spawn is an important branch of Chinese domestic trade. In Spring the Chinese farmers collect the gelatinous matter that contains the fish eggs from along the river banks. They put it in jars with the broken shell of a fresh hen’s egg and allow it to incubate under a sitting fowl.

After a few days they return the eggs to a nursery pond and they hatch. The fry are kept in a nursery pond until they are big enough to look after themselves. The destruction of spawn by trawl nets is threatening the survival of this productive farming.

Vol 11 No 26 - 26th June 1838

Letter of Kin Qua (Leung Shing Wo) to his creditors – I am grateful you did not press for settlement when my financial troubles commenced two years ago. I hope to pay off all debts in a few years. I am not an extravagant Hedonist but since 1823 I have had difficulty. The bankruptcies of other hongs were onerous to discharge and payments continued until 1834. Since then I have been free of the debts of others and expected things to improve until Hing Tai’s problem arose. When he failed I began to despair of paying off my debts.

Now I have agreed with the other Hongs for repayment over several years. I am grateful to them for a loan of $100,000 annually from the Consoo Fund. I have agreed with the Hoppo for similar periodic repayments on overdue revenue. My debts to foreigners are $1.1 millions which I can pay in ten years. If this is too long, I will pay you 5% interest as well, settling the principal first and the interest after. The interest payments will add two years to the repayment period. If trade is good I may be able to pay more quickly. The various bonds I am willing to make with each of you expressing the amount of my indebtedness should be kept by you until repayment is concluded.

Editor – The Hoppo is also concerned for the financial capability of Lum Qua’s Hong. We will report further next week.

Vol 11, No 27 – 3rd July 1838

Notice – Mr Crawford Kerr is a partner wef 1st July 1838. Sgd Lindsay & Co

To Let – the large office and treasury at 2 Creek Hong. Apply on the premises.

Vol 11, No 27 – 3rd July 1838

From Philip’s History of Cultivated Vegetables:

Tea-making – the infusion has a richer flavour if done in a silver pot but the second infusion will have a poorer taste. It is advisable to use a heated crockery teapot if two infusions are required. A spherical pot is best because it has the least surface area and hence the water loses heat less quickly. Once the tea has infused, any further addition of leaf has a diminished effect on flavour strength as the water has cooled - it is better to make a second pot.

Vol 11, No 27 – 3rd July 1838

Letter from the English Tea Brokers Association to the East India and China Trade Association, 6th November 1837:

The quarterly sales of India Company teas will end this year. Sales of free-trade tea have been held twice a quarter since 1834. The dealers and brokers say the interval between free-trade sales is too short to clearly compare quality and value. There is insufficient time to get feedback from retailers on how teas are selling before they are obliged to bid for new stock while they still have considerable supply from the last sale. The effect is a lack of bids for some teas and their withdrawal from sale only to be re-offered at the next auction. This constant re-offering of rejected tea has depressed the market for better qualities. Now the Company’s sales are concluded we commend you to offer teas quarterly. Sgd J Williams, Chairman, Tea Brokers Association.

The East India and China Trade Association held a meeting to consider this and agreed to hold quarterly sales in future. Sgd Archibald Hastie, Deputy Chairman.

Vol 11, No 27 – 3rd July 1838

J N Daniell and J C Whiteman, late agents of the Company’s ‘Finance Committee’ at Canton, are both candidates for seats on the board of the Company.

Vol 11, No 27 – 3rd July 1838

Editor - Chinese officials have seized the ferry boat Poppy, arrested its crew and searched them. Elliot should protest. When the Admiral arrives from India he should be informed also.

Vol 11, No 27 – 3rd July 1838

The Viceroy has issued another order against ferry boats on 21st June:

“The navy will stop the large masted and decked boats from entering the river. They are forever excluded. The small boats will stop at each station in the river to show their passes and be searched. Smuggling will be stopped.

“Instead of submission, some small boats have resisted the law and fired upon officials. If this recurs I will order that violence be met with violence so this audacious opposition to our law may be ended.

“The Hongs will report all entry and clearance of small passage boats. They must each apply for a passport and submit to search at every station en route. How can we know they are not smuggling if they resist being searched? Our law is detailed and severe. It must be obeyed if the foreigners are to enjoy the benefits of our trade. These foolish foreigners seek to try my patience.

“The large ferry boats that forced an entry on 10th and 11th June must be located and removed from the river in three days. If you do not impress this on the foreigners you Hong merchants will surely be punished.”

Vol 11, No 27 – 3rd July 1838

La France Maritime, Vol II - During July 1833 an English family was murdered at sea, off Carthagena, New Grenada. The English and American consuls took boats to search for survivors. They returned with bodies and met the French consul Barratt (an Englishman) at the quay. As the bodies were being laid out, a policeman ordered the French consul away. He complied to avoid a disturbance, intending to seek for redress later. He returned to his consulate but was followed by the policeman who entered the consulate without authorisation and arrested the consul. Barratt used threats to eject the policeman and sent a firm protest to the Governor but no satisfaction was offered.

Meanwhile Barratt was tried in his absence for armed resistance to the law and awarded a prison sentence. The first he knew of the matter was an order to surrender himself at the prison gate. Barratt wrote to the governor refusing to surrender and demanding his passport. Captain Gilbert of the French national ship La Topaze visited the governor and told him Barratt did not acknowledge his offence. He would embark on La Topaze and only violence could stop him. Barratt then left his consulate in full uniform and walked with Captain Gilbert to the quay where one of La Topaze‘s boats was waiting.

The populace had meanwhile been inflamed by racial placards and some 4,000 – 5,000 excited negroes and sailors were outside armed with sticks and stones. Members of the government and the national company were amongst the crowd and stirring it up. Barratt arrived at the city gate through which he could walk to the quay but the gate was closed and locked. He returned to his house finding it had been occupied by soldiers who refused him admission. He was then taken to prison to commence his sentence. A higher court was petitioned and Barratt was offered freedom but declined to accept the condition that he remain in the country. The court then offered unconditional freedom and Barratt was released after 2 weeks.

In October two French corvettes arrived off Carthagena. These obtained the trial of the policeman for insulting France. He was fined and imprisoned and debarred from police duty for two years. The governor Vesga was dismissed. The ring-leaders who provoked the populace against Barratt were prosecuted. The French asked for other remedies but these were beyond the powers of the New Grenadan governor and they were referred to Bogota.

In July 1834 an agreement was reached between the countries providing Barratt with satisfaction. Barratt and the commander of the French West Indian fleet firmly enjoined these terms on the governor of New Grenada. He was required to come onto the flagship of the French fleet and apologise to Barratt before the assembled French community of the country. Hands were shaken in reconciliation and the governor left the ship. Barratt and some 30 officers from the squadron then landed at the quay. They walked to the consulate, the tricolor was hoisted and Barratt resumed his official functions. The new governor held a dinner for the French that evening.

Editor – We are publishing this event as it is striking how differently the French and British react to insult. Of course there are treaties between France and New Grenada (thus invoking international law between the parties) while we have none with China but at the same time as Barratt’s problem, Lord Napier was writing to Viceroy Loo and having his letters returned. Loo knew that Napier had arrived on a national ship but claimed he had come on a merchantman to make his (Loo’s) position appear more equitable. All the Chinese misrepresented the facts, from the linguists and Hong merchants, to the high officials, the Viceroy and even the Emperor.

The squadron that obtained satisfaction for Barratt comprised two frigates, four corvettes and a brig. If we had a squadron at Canton when Napier was there, and its officers were suitably instructed, we could have obtained a similar result. Then our free-traders would not have been exposed to government corruption and the Hong system of trade. The imprisonment of Hing Tai and his subsequent bankruptcy might have been averted. Instead the reforming ministry of the reformed parliament reacted with fear and ignorance. The consequences of our indecision are apparent. The acts of Barratt are worth emulating and should be a model to British representatives in China.

Vol 11, No 27 – 3rd July 1838

Viceroy’s reply to the trader Bontin, 25th June 1838:

“You petition that on 18th June you were coming to Canton in a ferry and anchored off the eastern fort at the river mouth awaiting the tide. You had sandalwood and beche-de-mer on board on which you say you intended to pay the duties at the Customs House at the factories. You say these goods were intended for private consumption not sale.

“You say you were boarded by Customs officers who seized rings and ear-rings from your Lascars and their treasure chest containing $185. They also took the cargo and made a hole in the hull. You ask that the property be returned and the Customs officers warned to prevent a recurrence.

“The Hoppo has already reported the seizure of your ferry-boat. He says you foreigners admitted smuggling sandalwood, cow bezoars and snuff. The seizure of the boat is warranted.

“How can you seriously suggest the Lascars owned the jewelry and silver dollars? They are poor people. 18 piculs of sandalwood (over a ton) was seized - by what stretch of imagination can that be for private consumption? In any event all the cargo is dutiable regardless of quantity.

This petition is glossing nonsense. You Hong merchants should advise Bontin accordingly.”

Vol 11, No 27 – 3rd July 1838

Letter to the Editor of the Morning Post, London, 19th February 1838:

The Company used to maintain a tea stock in London to avoid shortages. Since its cessation of business, the free-trade have maintained only some 6 months stock here. Tea is a necessity of life. If there is a dispute at Canton, or tea shipments are delayed for any other cause, we might exhaust our stock. We should provide against this contingency. Sgd “A”

Editor of Canton Register – at the time of this letter there was nearly 47 million lbs of tea in England, about 18 months supply. Why did “A” not recommend buffer stocks of sugar and tallow - they are more fundamental than tea?

If there is a dispute with the Chinese it will affect the free trade precisely as it would have affected the Company, there is no difference.

Vol 11 No 28 – 10th July 1838

Advertisement – We have opened a shop at 26 Old China Street for the retail of British goods, thus precluding any inconvenience from the Hongs stopping the trade of Chinese shopmen. You support is welcomed. Sgd J M & Co, 1 Creek Hong, Canton.26

Editor – with Admiral Maitland daily expected, this is nicely timed. Hoppo Wan is leaving and Yu Kwan only arrived yesterday. If the Hoppo does not instantly close it, Jardine can assert prescriptive rights to continue in retail business. The Hongs have closed many shops and there is a demand for these goods.

Vol 11 No 28 – 10th July 1838

Dr O’Shaughnessy’s Manual of Chemistry:

When analysing the opium and ‘pasewa’27 from the 1834 crop, I first dissolved it in alcohol and filtered the solution. I was surprised to see it turn a deep green and the filter was stained blue at the edges. The insoluble black residue was treated with sulphuric acid and turned blue. This solution was turned green by alkalis and bleached by chlorine, nitrates and nitric acid.

By these and a multitude of other tests I discovered that the opium contained indigo. I repeated the experiments on many other samples from the 1834 crop, all with the same result. The contamination represented about ¼% by bulk and was limited to opium from Sarun, Tirhut and Shahabad districts of Bihar. Benares was uncontaminated.

Tests of the 1835 crop showed the same minute contamination. The farmers of those districts use indigo plants to manure their poppy fields and I assume this was the source. There is routinely 3¾% of earthy matter in opium and this indigo contamination is much less. It does not effect value.

Vol 11 No 28 – 10th July 1838

The Editor of the Chinese Repository is offering £100 for the best essay on the commercial, political and moral aspects of the opium trade. All manuscripts should be submitted by March 1839 to the Society for the Diffusion of Useful Knowledge in London.

Vol V (Dec 36) of the Chinese Repository contains useful information on opium.

Editor – we suppose the winner will have to take a decided view of the matter. Men like money more than morality. Every view expressed will solely be individual idiosyncrasy - what does ‘best essay’ mean?

Vol 11 No 28 – 10th July 1838

Edict of Hoppo Wan, 29th April 1838

The Hong merchant Lo Fuk Tai (Ah Lam, the proprietor of Tung Chang Hong) is in debt. I sent him to the Nam Hoi heen who procured a security bond for $2,500 from the money-changer Tse Sang. This money will be assayed and applied first in settlement of overdue revenue.

Now the Viceroy has informed me that Henderson has complained Tung Chang Hong owes him $3,000 and M/s H & N Cursetjee claim a delivery of cotton to that Hong is also unpaid. Cursetjee say they took a Promissory Note from Lo’s partner Wang Chin Kow but it is now overdue for payment. As Lo has other debts he cannot yet be released from prison.

Lo Fuk Tai says:

“I have $40,000 debts with foreigners. Last year the government ordered all Hongs to reveal their debts to foreigners. My partner fixed the sums with the foreign creditors and a repayment schedule was agreed. It was reported to government. This year Henderson and H & N Cursetjee demanded early settlement. My partner disagreed to their preferential treatment and they responded by reporting me to government. When the government declined to intervene, Henderson accepted the previously agreed periodic payments. I have now paid the outstanding revenue and request to be released to continue business.”

Receiving this, I the Hoppo, see Lo considers he has settled his outstanding debt to government and arranged his debts with foreigners. But Cursetjee again complains of debts and I have repeatedly demanded payment of Tse’s bond unsuccessfully. Neither the foreigner nor the government have been satisfied. I order the Hong merchants to examine Lo’s accounts and report.

Vol 11 No 28 – 10th July 1838

It is anomalous that Britain takes a leading position in China trade but is the least informed western nation in studying Chinese language. France, Prussia and Bavaria teach Chinese in their universities, we do not.

Thirteen years ago Dr Morrison brought an extensive library of Chinese literature to London to establish a chair of Chinese in one of our universities. He died during the Napier crisis but the library remains and contains much useful information including the works of the Jesuits.

Now a professorship of Chinese is offered at University College London and the Rev Samuel Kidd, formerly principal at the Anglo-Chinese College in Malacca has agreed to take it up. All that is required is £2,000 to pay Morrison’s dependents for the library.

Vol 11 No 29 – 17th July 1838

Notice – Cash advances on shipments to England will be given on current terms (no terms published). Apply to Jardine Matheson & Co.28

Vol 11 No 29 – 17th July 1838

Arrivals – HMS Wellesley (84) and HMS Algerine bringing Admiral Sir Frederick Lewis Maitland. The ships are anchored at Tungku. This is the first time we have had a flag officer here since Drury thirty years ago. The Wellesley has left many of her guns at Ceylon.

Vol 11 No 29 – 17th July 1838

Macau – the dissension between the Leal Senado and the Macau Governor have hopefully been ended by an order from the Viceroy at Goa to elect a new council. A new military commandant with six officers and 90 men has arrived to reinforce the garrison under the command of the Governor. The newly appointed councillors are :

Francisco Jose de Payva as Procurador

Jose Vicente Jorge, Felipe Jose de Freitas and Joao Jose Vieira as Vereadores

Bernardo Gomes de Melos and Antonio Joaquim Cortella as Judges and

Antonio Vicente Cortella as Tesoreiro

The Governor is ordered to revert to the system in force prior to the late governor Bernardo Jose de Souza Soares de Andrea’s changes. When the Senado learned this they protested and the Governor replaced them with the 1835 Senate members pending for the election above.

Vol 11 No 29 – 17th July 1838

Another edict against opium has been issued by the Emperor. We hope to recite it in the next edition. It is probably just another fulmination. Words cannot produce more than a temporary interruption.

The Chinese issue orders without enforcing them because they do not sincerely want to end the trade. The best way to minimise opium trade would be to open all the ports and give the people more to do.

Vol 11 No 29 – 17th July 1838

The new Viceroy is expected to arrive later this month.

Vol 11 No 29 – 17th July 1838

Peking Gazettes:

Hwang Tseo Tsze (Cantonese - Wong Jerk Jee), President of the Sacrificial Court, has memorialised that if no-one consumed opium there would be no demand. The provinces should strictly warn against opium and allow users a year to abandon the habit. Thereafter punishment should be rigorous.

Vol 11 No 29 – 17th July 1838

Report of the Ophthalmic Hospital in Canton by Dr Peter Parker:

We only treated a thousand patients this year. It has become unpleasant to attend the hospital as importunate applicants surround the entrance, seize my arms and fall on their knees etc. They all say they have come a long way, waited many days and have no money. They even pursue me home. I have restricted treatments to officials.

One is Ching Chung Yew, 56 years, who first attended in December 1837. He was a magistrate in Hupeh for 30 years and suddenly became blind in 1837. he travelled six weeks to come here. He is an urbane and prepossessing man. He knelt to report his symptoms. His job requires continual examination of documents often at night under inadequate light. I found the iris had adhered to the lens in both eyes. The lenses themselves were slightly opaque. He was just sensible to light. First I bled him. Then I applied belladonna to somewhat separate the irises from the lenses. The improvement in his sensibility to light delighted him. Over the next ten days strychnine was applied to blisters at the external angles of each eye. I continued the belladonna and in March I started small internal doses of strychnine until the spasmodic effects on his system manifested. No further improvement was seen.

As a last resort I proposed to depress the lenses. He agreed and in April I operated on the left eye. No inflammation occurred but his sight remained the same. I discharged him two weeks later.

Vol 11 No 30 – 24th July 1838

Canton Press of 21st July recites a Letter to Alderman Copeland MP (representing the East India and China Trade Association) from the Foreign Office dated 13th December 1837:

Lord Palmerston has answered the various questions you raise in the attached memorandum:

Question

The Chinese government recently expelled several Britons. Do you have official information of this?

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-

What measures will you adopt in consequence?

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Are any warships ordered to China?

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-

-

Answer

Elliot reported five Britons – Jardine, Dent, Innes, Turner and Whiteman, and three Parsees - Framjee, Meerwanjee and Dadabhoy, were banished to stop the opium trade. Elliot says the order will unlikely be enforced and, if an attempt is made, he will oppose it. He expects no serious dispute on the subject.

-

So far as we know, this Edict remains unenforced.

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-

The East India station has been ordered to send one or more ships frequently to China. The Admiral will himself visit in early course. These visits are for the protection of British interests and for the assistance of Elliot in supervising British sailors.

Editor – Elliot is unable to oppose anything. All he can do is protest and strike the flag

Vol 11 No 30 – 24th July 1838

Results of the Calcutta opium sale 28th May:

Bihar

Benares

1,375 chests

600 chests

average 703 Sicca Rupees

average 552 Sicca Rupees29

Vol 11 No 30 – 24th July 1838

The Englishman, Calcutta, 2nd June 1838:

The average price of tea in England was 22% higher in 1837 than 1836. The increase was entirely on the cheap teas. Fine teas advanced only slightly and the finest actually declined in price. In consequence consumption of the cheaper teas, the blends that common people drink, declined by 2.8 million lbs (c. 10%) while fine teas increased by 1 million lbs. Even the middling classes of tea were consumed more, by about a million lbs. Thus a superficial appearance of only slight decline in consumption has arisen.

Since 1st July 1836 the tea duty has been fixed at a flat rate of 2/1d per pound. The lower prices of the free trade have diminished the smuggling trade across the channel. British tea revenue for 1837 should be about £3.9+ millions. This is about £700,000 over the amounts formerly collected on the India Company’s tea imports.

Vol 11 No 30 – 24th July 1838

Opium – we have got a rough copy of the Imperial edict against opium but it is not the definitive one. It only becomes law when it is published and the government is thought to be awaiting the new Viceroy’s arrival here before doing that. We will await receipt of the formal copy before publishing. Part of the Edict refers to opium use in Jehol (Rehe - in the Imperial homeland).

Vol 11 No 30 – 24th July 1838

Editorial - We note there is support in our community for establishment of a Seamen’s Home in Canton. Every year How Qua warns about foreign sailors. The ‘timid young girl’ wants them confined to their ships but they are not savages and may be trusted with liberty. There are extenuating circumstances for their drunkenness – they drink the creations of Hog Lane instead of good liquor.

Now the Hospital Ship is removed from Whampoa, a Seamen’s Home is particularly important.

Vol 11 No 30 – 24th July 1838

Hoppo Wan reports on 18th July 1838 that on 15th July the Tung Che of Macau reported the arrival of HMS Wellesley at Tung Ku. The pilot has reported that the ship has come from England with an Admiral to examine into British trade. It carries 500 people, 74 large cannon, 300 muskets, 300 cutlasses, 1,500 catties of gunpowder and 1,500 cannonballs. Accompanying the Wellesley is HMS Algerine with 80 men, 10 cannon, 40 muskets and cutlasses, 50 catties of gunpowder and 50 cannonballs.

The Tung Che ordered Elliot to enjoin the law on the Admiral, to keep his sailors tranquil and not to come to Canton. The army and navy should go to Tung Ku to observe the warships, urge their instant departure and prevent traitorous natives from provisioning them.

The Viceroy says previously Elliot claimed control of the English traders. He petitioned the Hoppo for a passport, a report was made to the Emperor, and he was allowed to come up to Canton. Now another English chief has come and is loitering outside. The thinking processes of the foreigners are inscrutable but this looks very suspicious.

Cruisers manned with soldiers will go instantly to Tung Ku and observe the foreigners. They are not allowed to go to Macau or Canton, indeed they may not land anywhere. The boat people must be prevented from supplying them with provisions or they will be heavily punished.

Vol 11 No 30 – 24th July 1838

Local news:

Vol 11 No 30 – 24th July 1838

Chung Tseang, Viceroy of Chekiang and Fukien, has reported on traitorous natives. A Fukienese called She Hau sailed to Canton and bought opium. He stored it in small sheds at the seaside and offered it to the local people.

Admiral Chin must attend carefully to the coastal shipping. His base is close to the main smuggling area. They must continually cruise, seize opium ships and render instant justice.

Vol 11 No 30 – 24th July 1838

Privy Councillor Ke Ying reports opium smoking has become popular in Jehol. The Emperor says every province is polluted with opium. He forbids it. Now in Jehol 7 men have been arrested and 230 Taels of raw and refined opium together with 16 pipes and other paraphernalia have been seized.

Jehol is the Manchu homeland. It is the place of military exercises. If troops smoke opium they will become careless and lazy in their military duty. It must be stopped and no indulgence may be offered to offenders.

Vol 11 No 30 – 24th July 1838

Letter to the Editor – the proposed Seamen’s Home is an excellent idea. A few days ago a party of British sailors arrived at the steps in front of the factories with $500 for shopping when they were importuned by harpies representing the grog-shops and were soon drunk and fleeced of every dollar.

Our community gives so liberally to charity. We should protect our own. The sailors presently have no chaplain and Elliot has withdrawn. Whampoa will soon be filled with ships and the sailors will need protection.

At present the Chinese see our sailors getting blind drunk and they think we are all the same. We all want to prevent disturbances and the Hongs are individually responsible for the consequences of disorder. We should request the Hongs to clean up the factories so our national character may be elevated in Chinese eyes. Please call on the General Chamber to take the initiative with commanders of our ships. Sgd RC

Vol 11 No 30 – 24th July 1838

Letter to the Editor – I was sickened to see a recent opium Delivery Order drawn on a receiving ship at Lintin “Please deliver to the bearer ….. chests of ‘merchandise de Malwa.”

There are only two possible views – either opium is bringing misery to millions of our fellow men or it is an irresistibly lucrative trade that we must have. A good man would abstain from it entirely; a greedy man should not be ashamed to say he sells opium for the profit it brings. To say ‘no, I do not sell opium, I sell merchandise de Malwa is cant.

Do slave traders sell merchandise des noirs? Sgd Anti-humbug

Editor - This is to mislead the Customs officials and make their detection of smuggled opium less certain. If we say it is not opium, how can they refute it? The smugglers use many cunning devices to avoid detection but this one is too simple. Its use must be motivated by our fear.

Vol 11 No 31 – 31st July 1838

Notices:

Vol 11 No 31 – 31st July 1838

London news – Sir J L Lushington and Jenkins MP have been elected Chairman and deputy Chairman of the India Company. Thomas Charles Smith, previously of the Company’s China factory, has been elected a Director. He is also a principal of Magniac Smith & Co of London.

Vol 11 No 31 – 31st July 1838

Parliamentary papers – G Palmer MP asked Palmerston in the House if he knew Elliot had withdrawn from Canton. Palmerston said he had read something in the newspapers but was awaiting definitive information.

Vol 11 No 31 – 31st July 1838

Chinese officials are proposing the following penalties for smoking opium:

First offence

Second offence

Third offence

Branding on the face with the characters for ‘smoke rebel’

100 blows and 3 years banishment.

Beheading

The new Viceroy will confirm the penalties soon.

Vol 11 No 31 – 31st July 1838

The Poon Yu heen Chang has examined all his staff. He recorded their ages and appearances and warned everyone to abandon their opium pipes within a year. Of the thirty clerks on the Heen’s staff only two said they did not smoke. They have been detained within his house for a few days to gauge their honesty.

Vol 11 No 31 – 31st July 1838

The new Hoppo Yu is a hands-on man. He is requesting the minutest details about everything. All his staff have been replaced and the new clerks are ignorant. Consequently, his endless questions fall upon the Hongs and Linguists to answer.

Vol 11 No 31 – 31st July 1838

On 26th July a party of 12 foreigners went to the city gate to petition the Viceroy against the Hoppo who has re-rated our long-cloth at a higher quality than before. Even goods already graded by his predecessor’s staff are affected. Mr Thom30 framed the petition and is interpreting for the group. Two Hong merchants took the petition to the Viceroy whose reply is awaited.

Vol 11 No 31 – 31st July 1838

The Canton Register has always opposed the notion that H M Commissioners need Imperial consent to perform their functions. Ours was for years a lonely view. We doubt the expediency of Elliot’s submission to Imperial order to go to Canton in April 1837. The only privilege obtained is in the name – the officials called Elliot Ling Sze whereas the President of the Select was Tai Pan.

Elliot left Canton in November 1837. He had been ordered to communicate with the Viceroy and that officer refused to permit it. Nothing has changed. We were accordingly surprised to see Elliot again in Canton last Wednesday and the British flag again flying from the British consulate pole. We do not believe he has new instructions from London but perhaps the Admiral has told him something.

Vol 11 No 31 – 31st July 1838

Memorial to the Emperor:

The people require severe punishment to be manageable. Officials must perform their public duty even if it arouses hatred. The prevalent opinion that opium smokers are too numerous to be confronted is overly indulgent. If they have a year to abandon the habit, many will comply and others will be deterred from taking up the habit. The magistrates should examine all taxpayers under their jurisdiction. Take a bond from every five families to not smoke. This will suffice for rural communities.

In the cities, where people come and go, the neighbourhood associations must be used. Shopkeepers must be particularly impressed not to allow their premises to be used for smoking.

If any civil or military officials smoke after the year’s grace they must be more severely punished than is customary. The sons and grandsons of civil and military officers may be excluded from the public examinations. Magistrates who successfully eradicate opium use in their areas will be rewarded. Magistrates who fail will be punished. Bonds are not required of every soldier but some joint bonding should be fixed on them.

Let this order be published everywhere so the people may know that the Emperor cares for their wealth and welfare. Opium smokers must purify their hearts and abandon their habit. Then opium will cease coming and silver will cease disappearing and the Empire will be peaceful for ten thousand years.

Vol 11 No 31 – 31st July 1838

Edict of the new Hoppo Yu, 27th July 1838:

Jardine and others petitioned in Chinese on 25th July. They say the duty on recent imports of long-cloth has been increased. They say my new clerks have assessed 3rd class cloth as 2nd class and 2nd class as 1st class. Grey (unbleached) cloth has historically been 3rd class. They say the former Hoppo Wan examined this type of merchandise personally and has musters in the Consoo House whereby the fine and coarse grades may be distinguished.

From the record I see that Fox and others petitioned on the same subject in 1836 and afterwards samples were given to the Hongs to maintain in the Consoo House. Later the Hoppo Wan discovered that the samples provided by the foreigners differed from the goods that were the subject of their complaint. Had we assessed duty per sample all 1st class cloth would have been rated as 2nd class, etc. The Hong merchants were accordingly informed to inculcate honesty in the foreigners.

I do not propose to listen to the endless complaints of the foreigners; nor do I seek for popularity. The duties on each grade of cloth are fixed. If the foreigners wish to dispute assessments they should attend at the time of inspection and themselves produce samples of the various grades to support any views they may hold. Thus the matter can be agreed at the outset. Be advised.

Vol 11 No 31 – 31st July 1838

Letter of the Hongs to the foreign merchants – the Hoppo Yu has given us ten pieces of long-cloth. Please come to the Consoo House to examine minutely and decide on the quality. 29th July

Editor – several foreigners attended and opined that not one sample was 1st class. One foreigner then returned to his factory and brought back a sample of 1st class cloth. The quality of 1st class was thus agreed. All other white cloth was then held to be 2nd class and grey cloth is 3rd class.

Vol 11 No 32 – 7th August 1838

Notice 1st August – James Starkey has resigned his partnership wef 31st July. Sgd Dirom & Co, Canton.

Vol 11 No 32 – 7th August 1838

Elliot has been playing ‘hide & seek’ with the Hong merchants. He returned to Canton last Wednesday seeking for them. On Sunday he sent the Commission secretary and Morrison to the City Gate with a petition for (but not addressed to) the Viceroy. The two men failed to enter the gate. They were stopped by a large crowd at the outer gate and finally abandoned their attempted delivery.

A few days previously a dozen Englishmen had succeeded where these two national representatives now failed.

On Tuesday Elliot left Canton in the Louisa thus avoiding the Hongs’ enquiries about the subject-matter of the petition he had attempted to serve on the Viceroy. The Hongs have pursued him to Macau via the inner passage where the game is continuing.

Meanwhile Admiral Maitland moved his warships from Tung Ku first to Lankeet (near the river’s mouth) and then again to Chuen Pi (at the river’s mouth)

Vol 11 No 32 – 7th August 1838

Macau news – the government has suppressed the Macaista Imparcial and will only allow its future publication if its Editor agrees to censorship.

It is said the paper has used inappropriate language in describing government activities. The Macau Chronicle ceased publication a few months ago.

Vol 11 No 32 – 7th August 1838

Local news – the new Viceroy Iliang arrived 2nd August. He immediately examined all his staff to identify any opium smokers. None admitted. He warned them against the habit and hinted at frequent but irregular future examinations.

An Imperial edict of 7th June has concurrently arrived:

A citizen has memorialised that not all Chinese need opium but all foreigners need tea. He says China should revert to selling tea for silver and never barter it for opium. Opium imports and silver exports increase annually. Now silver is at a premium to copper cash. The taxes are paid in copper (because of silver’s increased value) and the usual collections on grain and salt (which are supposed to be remitted in silver) are deranged.

When a government loses its ability to tax it loses its ability to govern. If silver is not attracted back into the economy we will have no money left. How can a country with so many useful exports have an adverse trade balance with the foreigners? Is it because there are many Chinese smugglers who export tea and silk at low prices. Tea- and silk-producing provinces must regulate their production by documentation so none is lost to smugglers.

I require the old Viceroy Tang in Canton to consult with the new Viceroy Yee (Iliang) and Hoppo Yu and devise a plan firstly for the recovery of our silver and national strength and secondly to obtain the obedience of foreigners to our law. They are to disregard the opinions of their subordinates, particularly those who resist change.

Vol 11 No 32 – 7th August 1838

Letter from the Hong merchant Mowqua to Jardine:

There are three English warships in the outer waters. Sooner or later some of the crew will certainly want to come up to Canton in boats. We security merchants for the ships are required to watch the warships carefully to prevent anyone landing. There may be no conniving or concealment like that which allowed Napier to come furtively to Canton.

On that occasion Sun Shing, who was obliged to secure Lord Amherst (Naish), was imprisoned many months for failing to stop Napier. I hope Captains Tonks, Hamilton, Morgan and Smith, masters of the warships I am securing for you, will not similarly let me down by lending their boats for Maitland’s use.

I fear Maitland will go to Macau and try to come-up to Canton thus creating a criminal liability on me. Sgd Mowqua

Vol 11 No 32 – 7th August 1838

Letter to the Editor – the General Chamber has taken up your suggestion for a Seamen’s Home and approached the senior Hong merchant for premises.

There are two fundamental requirements. Firstly the seamen need overnight accommodation in Canton; and secondly they must all be registered so we can quantify their needs and wants. Seamen’s Homes have been established in Calcutta and other ports to protect visiting sailors from temptation. That is what we need here but the varied nationalities and races of the seamen might produce irregularities. It would be better not to encourage any overnight residence and, if that is impractical, to restrict it within the factories where we can supervise and control it.

As regards registration, now the new season is starting, we should provide forms to each arriving Captain to reveal the nationality, age, languages spoken and education of each seaman – we can then devise a system of individual improvement. This would not be onerous for the Chamber secretary – he already has to collect statistics on cargo from each ship.

Each year at Canton we dispose of a huge amount of newspapers, magazines, pamphlets and the like which, if retained and circulated at Whampoa, would make interesting reading for the sailors. Sgd CC

Editor – all the information CC wants to collect from seamen is already collected and sent to each national Consul.

Vol 11, No 33 – 14th August 1838

The Englishman, Calcutta 29th June:

The auction of opium here yesterday produced prices 50% higher than the last sale. The reasons are two-fold - first the provincial judge Wang of Canton has been posted to Peking which is thought to afford a renewed opportunity for smuggling and secondly a major Malwa speculator sold stock in expectation of new supply but was disappointed and was consequently forced into the Calcutta market for Bengal supply. Such is the stuff of free trade.

2,249 chests of Patna sold at average 989 Current Rupees; 1,458 chests of Benares sold for 913 Current Rupees at average. Total proceeds to Bengal government were over 3.5 million Current Rupees.

Vol 11, No 33 – 14th August 1838

The Hong merchants have reported that the new Viceroy is willing to stop trade over the presence of Maitland’s squadron at Chuen Pi. The Admiral consequently moved the ships back to Tung Ku. The reason he shifted berths in the first place is unknown. He, his officers and fan foo (foreign woman), have been expressly forbidden to come to Canton. His provisions and communications are interdicted and his warships are under constant surveillance

The ferry boats entering the river were more strictly supervised this last week and several were stopped and searched.

Vol 11, No 33 – 14th August 1838

Letter to the Editor – The Hongs have just paid 30,000 Taels to fund the improved defensive works at the Bogue that are required to prevent Maitland’s entry to the river. The money comes from the proceeds of foreign trade either directly from the merchants or via their contributions to the Consoo Fund.

I do not see why we traders should fund this alone – why doesn’t Elliot contribute as well? Sgd A Subscriber.

Vol 11, No 33 – 14th August 1838

Editorial – Crushing the opium trade is on Peking’s agenda. This is apparent from the recent government actions against Maitland’s fleet. Hwang Tseo Tsze’s memorial last year proposed a barter system for opium. This year’s memorialists want tea and silk sales for silver only and a licensing system for tea and silk production.

The intention to execute people indulging in a private habit will fail. We previously (12th June edition) quoted a brief history of tobacco to illustrate the point. The common sense of humanity revolts at government meddling in private life.

The only predictable thing in the memorials that will likely occur is the start of domestic production of opium to compete with our imported supply. Hwang notes the quality of local opium may be lower but commends that Indians, familiar with the process in Bengal, be employed to develop local production. He says getting Indian help for Chinese opium farming is as easy as our getting Chinese tea-farmers to emigrate to Assam and help to re-invigorate tea production there.

Everyone interested in opium should draw up a history of its use here containing every Edict. This might convince the Emperor that the exclusive system of trade is the sole cause of opium import. The only solution is to open all ports to trade and stimulate the commercial energies of the Chinese people. This will correct the habit.

Since writing this we have heard that another memorialist has told the Emperor that as smoking is so common and is now to be a capital offence, the numbers of executions will be enormous. He says this is disproportionate to the awards for robbery, piracy and murder. He says if Hwang’s advice is to be followed the penal law must be changed.

Vol 11, No 33 – 14th August 1838

Edict of the (joint) Viceroy Tang:

“Admiral Kwan at the Bogue was instructed to prevent smuggling by ferry boats and observe the activities of the foreign warships. On 6th August he reported that the previous day he stopped a boat containing a foreigner and 8 seamen travelling from Whampoa to Canton. It had no pass but neither was there any smuggled goods or arms & ammunition on board. It was allowed to proceed. He also stopped seven boats from other ships that were leaving Canton for Whampoa. These each had passports issued by the Hong merchants and were not smuggling. The Admiral suggests that the Hong merchants commend the foreigners to always apply for a passport before commencing a passage. In future he will not permit boats without passports to proceed.

“I, the Viceroy Tang, on receiving this advice recall I have repeatedly ordered the Hongs to enjoin on the foreigners the need to obey the law but still some of them come and go as they like without applying for passports. It is fundamentally important that we watch and control the foreigners. The Hong merchants are to ensure the foreigners obey or they will be held accountable.

Vol 11, No 33 – 14th August 1838

Letter of the 11 Hong merchants to the foreign traders:

Large ferry boats are forbidden in the river. Small boats must apply for a passport and submit to routine searching en route. Lately we have been severely reprimanded by officials for your failure to observe these laws. We have repeatedly directed you on the approved way of travel and you have repeatedly ignored our advice. On 7th and 8th August several large boats came up from Lintin and Macau. We reported their arrival and the Viceroy was very angry.

Why should we continue to bear responsibility for your crimes? You should show some consideration for us.

We remind you that large boats are forbidden and small boats must get a passport and submit to occasional searches. Boats from Whampoa get the passport from the Hoppo’s boat assigned to observe each ship.31 They should travel directly to the main Customs House in Canton where they will be searched. They will then deliver the endorsed passport to the Customs House at the steps in front of the factories where the passengers alight. Boats from Canton will get a passport from the Customs House in front of the factories and go to the main Customs House for searching. They will then proceed direct to Whampoa and again be searched at the Customs House there, where they will deliver the passport.

Obey and there will be peace; disobey and there will be trouble.

It seems you are incapable of acting legally - you only understand punishment. In future non-compliant ferry boats will be noted and the trade of the ships they serve will be stopped.

Vol 11, No 33 – 14th August 1838

Viceroy Tang’s edict, 6th August:

On 7th August a large ferry boat with masts and decks and an awning (one of the schooners) arrived at Canton from Macau. Three foreigners were on board. Foreigners come for trade. Each is connected with one ship or another. To which ships do these three foreigners belong? Who are their security merchants?

The Hong merchants have provided only partial information on this breach of the law. How can I know if Maitland or any of his group were on board this ferry?

The Hong merchants always interpret their duties in a minimalist way. It is clearly my duty to punish them for their negligence but I will first allow them to mitigate their offence by collecting the appropriate information. They are causing delay and unless they awaken to their duty and cease collaborating with the foreigners, I shall inflict condign punishment on them.

Vol 11, No 33 – 14th August 1838

Letter to the Editor – the factories are already too crowded to provide a home for seamen. Many agents have inadequate space to provide this service for ships’ crews. If a single place is to be used as a Seamen’s Home it will be noisy and disturb the nearby residents. If the home is established outside the factories in a Chinese building we will not be able to control the seamen properly.

I think the realistic plan is to have boat crews return every night to their ships at Whampoa and leave just the holidaying seamen to be entertained by the consignee of their ship. Some have suggested that the proprietors of our two hotels in the factories should set up rooms for the exclusive use of seamen.

I think the best thing would be for the General Chamber to request Howqua to shut more of the grog shops in Hog Lane. If the commercial premises along the Lane are closed up, we could convert the entire row of shops into adequate apartments for seamen. A steady and energetic foreigner should be appointed manager and allowed to charge the same prices as the house compradors. This should be more or less adequate for him to maintain himself.

Concerning record keeping, your suggestion last week that consular records would suffice seems incorrect. I have enquired. The actual records provided by visiting ships are generally incomplete. Sgd CC

Editor – The Hog Lane tenements are unlikely to be affordable. They each rent to the present Chinese shopmen at $50 – $120 per annum, none of whom are likely to voluntarily relinquish their leases. Even if they did the rent would be double or triple to a foreigner. The General Chamber should instead ask Howqua for a suitable piece of land. As regards registration we hope each ship captain will willingly provide the requisite information to the Chamber.

Vol 11, No 33 – 14th August 1838

Dent & Co’s memorial to the Viceroy, 7th May 1838:

We previously petitioned about Hing Tai Hong. We also have prior claims on King Qua. He owes Whiteman whom you expelled last year and for whom we act. King Qua also owes us. The claims arose due to our forbearance in claiming earlier settlement and by our trying to assist him two years ago to trade through his difficulties by providing funds to settle outstanding revenue demands. We did not mention these debts earlier out of consideration of King Qua’s reputation - he is an old and venerable man.

He has since died and, once his funeral was concluded, we petitioned the Co-Hong for repayment. We did not want to bankrupt the Hong but merely to settle some mutually agreeable arrangement for repayment. The Co-Hong replied that King Qua would settle his own debts and their involvement, if any, would be between them and him. They declined to provide us with security for our claims. But until now we have not been able to elicit any proposals from King Qua in settlement. We accordingly petition for help in recovering ours and Whiteman’s claims.

Howqua, on behalf of the 10 other Hongs, to Dent & Co, 29th July 1838:

King Qua Hong says it will repay by annual instalments. It will settle the principal sum in ten years and then arrange with you for payment of interest due in subsequent years. The Hong says it cannot settle both principal and interest together. The annual assistance to King Qua that we other Hongs render is a matter of friendship not obligation. Our joint liability is triggered only if your debts are declared. So long as King Qua continues in business we cannot become formally involved.

Dent & Co to the Viceroy:

We were prepared to petition you in early May but have instead first explored the possibility of mutually agreeable settlement with King Qua. We attach the correspondence and the proposed settlement offer is unacceptable to us. We are agreeable to sustaining some loss in order to maintain an old and prestigious Hong. Should it be bankrupted we expect a right to interest on our debts from inception to date of bankruptcy at 12% per annum. We want settlement in 4-5 years.

Manhop paid off his debts in 6 years, Chunqua in 3 years and the Hongs are proposing to pay off Hing Tai’s debts in 8½ years. We have been misled by the continuing Hongs. At first they indicated favourable early settlement but now, after considerable delay, Howqua has sent us the above letter. We hope you will recognise the justice of our claims, particularly that of Whiteman whom you banished a year and a half ago.

Viceroy to Dent & Co, 5th August:

I have examined Leung Shing Wo’s accounts. Tien Po Hong owes foreigners $1.1 millions. The proprietor proposes repaying the principal in 10 years and the interest subsequently by further agreement. This appears reasonable. The Hongs have agreed to advance $100,000 a year to Leung to help him. The creditors thus have guaranteed repayment.

Now you foreigners show inflexibility and insist on payment of interest with principal and when the indebted Hongs fail to comply you complain of injustice. Creditors and debtors are both responsible for debt creation. Allowances must be made for those who have to pay the debts of others. You should recognise the advantage you are being offered.

The Chinese government extends equal justice to Chinese and foreigners. I will not allow you to suffer injustice from others, neither will I allow you to inflict injustice on others. I order the Hongs to talk with Dent and guide him by reason and equity to a mutually agreeable settlement. The foreign traders must try harder to regulate their own affairs and not continually rely on high officials to solve their predictable problems.

Vol 11 No 34 – 21st August 1838

In many recent editions there have been advertisements for ships for sale or charter. This week there are four:

Russell & Co have the British clipper Falcon, 372 tons at Hongkong for sale; Markwick & Smith are offering the Portuguese schooner Genoveva, 180 tons; James Innes is offering the Spanish brig Narcisa, 180 tons (with 3 months stores) for charter; Bell & Co are selling the Dutch schooner Catharina Cornelia, 120 tons.

The Falcon is a fast yacht suitable for an opium clipper. The other three ships are appropriate only for work on the East Coast where their slight draft allows them into the rivers and inlets around Namoa and Amoy. These advertisements evidence uncertainty in the opium trade.

Vol 11 No 34 – 21st August 1838

Editorial – The Viceroy is responsible for two provinces containing over 30 million people yet he calls Admiral Maitland a ‘barbarian supervisor’, his wife a ‘fan fu’ and their female attendants ‘slaves’. The Chinese are particular in their forms of address and they have proper names for all these people.

It is rumoured that the Chinese admiral has apologised to Maitland for his men firing on the schooner Bombay (one of the proscribed Macau ferries) when it entered the river. This was in response to the Viceroy’s request that the military assist the Customs officers to regulate the movements of ferry boats. He authorised the Bogue forts to fire on ferries that disobeyed the regulations. Now the Chinese Admiral has apologised because his men did their duty.

In fact the extensive opium smuggling at Whampoa does not rely on the ferry boats for supply and the Chinese analysis of our smuggling methods is wrong.

The facts are that the British ferry Bombay was fired on as she entered the river. She hove to and the army’s Linguist came on board. The foreign passengers demanded an explanation. He said the forts fired to prevent Maitland or his men entering the river. Once the Linguist had reported that Maitland et al were not on board, the ferry was permitted to continue. The occupants say that, had the ferry contained a cargo of opium, the Chinese officers would have permitted it as no check of the cargo was made during the confrontation.

Elliot reported the attack to Maitland who moved his fleet up to Chuen Pi and required an explanation from the Chinese Admiral. Apparently Maitland was satisfied and ordered his ships away from Chuen Pi.

Vol 11 No 34 – 21st August 1838

Letter to the Editor – no matter how we consider ourselves here – as men, as Christians, as residents, as merchants – our hopes are continually frustrated by the opium trade. We ourselves have abstained from the trade for many years. We will continue to do so and it seems that some others of the community are prepared to do likewise. The steadily increasing pressure, applied by the Chinese government against opium, is falling on the whole trade. We are all inevitably involved. We must consider whether opium is really worth this trouble.

Years ago we could choose to trade at Lintin or Whampoa. Then the opium trade focused its business at Lintin and it became a suspect place. The Chinese police the anchorage and communications with outside are sometimes cut off. So we go up to Whampoa for trade but the opium ships have gone there too to avoid Chinese controls at Lintin.

Previously we anchored at Whampoa and immediately got a licence to discharge. Now we are delayed by the checks required to confirm we are not part of the opium trade. This costs us at least $500 per ship in demurrage. We used to have a frequent and convenient trade with Macau but the ferry boats became opium boats and that form of communication was banned. Now passing the Bogue and landing at Macau have become unsafe and difficult.

It is apparent that the Chinese government has many means of tackling opium and they all more or less prejudice the other branches of trade. This opium business might cost any one of us our liberty, our capital or our life. We are in collision with the Emperor and no one can predict what will happen.

Without considering public policy or Christian morality, it is clearly desirable that the breach with China be ended. Discussion is needed. Those already involved in opium smuggling may be biased but people who are uninvolved are reliable. It is not appropriate for one firm to impose its wishes on the rest - we suggest a meeting of the whole community be held early in November so all views can be made known. Sgd Olyphant & Co.

Vol 11 No 35 – 28th August 1838

Bombay Gazette, 1st June - The opium clipper Lady Grant sailed from this port a few days ago with a full cargo.

Prior to sailing her owners applied in writing to a well-known firm for insurance on the hull and cargo. The firm refused to comply without giving any reason. This is unprecedented. The two grounds for refusal that are ordinarily recognised are unseaworthiness of the ship or incompetency of her master.

The history of the Lady Grant is well known and there can be no question about her seaworthiness. We all recall the high praise she received on being launched. In her three year’s life she has been repeatedly tested. Her last passage to Canton up the China Seas in November 1837 resulted in no damage to her cargo at a time when other ships were diverting to other ports and sustaining heavy cargo damage. The opinion of the surveyor after that voyage is indicative of her quality. Also J M & Co shipped back 1.2 million Current Rupees on her during that last voyage. They think she is safe.

J M & Co are Canton agents for the same insurance office which Bombay agent has refused cover to Lady Grant on this occasion. The vessel is captained by Capt Jeffrey. He is a competent mariner with 28 years experience in his profession, the last 12 years trading to China. He became master of Lady Grant soon after her launching and has captained her on every voyage she has made to China. In April 1837 J M & Co, as agents of the Canton Insurance Office, presented Jeffrey with a piece of silver plate valued at £100 in recognition of his services against Malay pirates in the Straits in February 1836.

Insurance offices are mutual organisations. The powers of the many members are delegated to a few managers. If there are no proper grounds for refusing insurance, the insurers lose business, the shipowners are at risk of loss and the master is stigmatised.

We are mentioning this because it is rumoured there have been several examples of insurers withholding cover for reasons unconnected with the risk.32

Vol 11 No 35 – 28th August 1838

Asiatic Journal, April 1838 – Our relationship with China is causing uneasiness. The Chinese are stopping the smuggling trade both at Lintin and up the east coast. The force of the Viceroy’s Edicts against opium is palpable. He is surprised that Elliot, who is supposed to supervise British nationals in China, permits it to continue.

Admiral Chin of Fukien has asked British captains of opium ships off his coast “if we took a prohibited commodity to your country and continued year after year to force it on your people, would you bear it patiently or not?”

The Canton papers now say the Chinese are enforcing their law with vigour and warjunks are better appointed in equipment and men. It should be remembered that there is a party of British traders who wish to bring this issue to a head. The Chinese government has refused to correspond further with Elliot and, rather than send and receive letters via the Hongs, he has retired to Macau.

Vol 11 No 35 – 28th August 1838

Editorial – It is too late to wonder whether opium trade is good or bad. It has become too big for British merchants in India and China (and Chinese consumers) to forego. There are some good foreigners who want it stopped but they are powerless until the Chinese government itself shows it is sincere in its wish to stop the business. No doubt the Drug has a prejudicial effect on its users. It would be good to find a substitute commodity for trade but every country has its lovers of debauchery. When we see the effects of gin and whisky on civilised people we should not deny the Chinese their only luxury.

Humanity is not as perfect as the philanthropists believe. If opium imports stopped, it would be replaced by some other intoxicant that would be worse. Even if we all agreed that opium is bad, we could not stop the Chinese getting their daily smoke. If the opium smugglers ceased smuggling, others would take their place.

Vol 11 No 36 – 4th September 1838

The Fanqui in China by C Toogood Dowling has been published in three volumes in London. We have seen some extracts but they are inadequate to form a view on the book’s overall merits.33

Vol 11 No 36 – 4th September 1838

Letter to the Editor – we oppose opium trade because it is against our religion; it is against the wishes of the people at home; it is against the interests of the Chinese people, and it is against Chinese law. We are not starting a new movement. We wrote to you because we want to complete the preliminaries for drafting memorials on the subject.

The Canton Press says we are the only company to oppose the trade. That is why we wrote – to invite other people to join us. Our proposal is to put the entire history of the trade to the Emperor. We know one local firm which has written to its constituents to decline further shipments of opium.34 There are other firms, particularly the younger traders, that are also opposed to opium.

Your position has changed Mr Editor. Two weeks ago you thought a memorial to the Emperor could only be beneficial; now you say the Chinese must first evidence sincerity by taking effective actions against smuggling. We are all agreed that the Chinese will be unable to incorporate the use of opium in their system in the same way that we have incorporated the use of alcohol in ours. They will not be able to rise above the temptation. This should have led you to the realisation that our co-operation is crucial to Chinese success.

Your main argument for continuing the trade is that if we do not bring opium, others will. We are all men of good conscience. Our philosophy does not permit us this trade. If we are not involved we can lighten our load. We are all at least partially dependant on agency business for absent principals. To the extent of those commissions we receive, we know it is just to those principals that we draw a line between legal trade and opium trade.

Opium is bringing losses to our other businesses. Western involvement in opium puts a stain on our national character. The Chinese consider us despicable. How can our governments achieve amicable trade with China like this? On the one hand we force the Chinese to treat us as criminals, on the other we insist the insults we receive permit our use of violence. Thus the effects of smuggling recoils on the smugglers. Opium smuggling enhances corruption and destroys our reputations.

Can the foreign residents now say to the Chinese government “We have not previously considered the matter. You say opium is causing injury to your country. We now recognise that opium trade is inconsistent with our own values. We will renounce it.” This is precisely what the Chinese want to hear from us – foreigners acting from a moral base rather than the accumulation of wealth by any means; foreigners demonstrating their worthiness of confidence and esteem. The Chinese would be impressed by an act of principle that overcame our own greed.

The man who became addicted through quack medications or youthful folly may turn to that foundation of western strength, the Bible. When we consider the extent of the evil we are causing and the nobility of our atonement; when we reflect that there is no historical precedent for such a small number of men bringing such an extensive injury to the Chinese people, then the idea that others will take our place becomes hardly decisive.

An act of renunciation like this would lose us no friends except opium smugglers. Whatever happens to the Drug subsequently should not concern us. We ourselves will be able to stand up straight and look the world in the eye. Then the Chinese will see us as we really are, unalloyed by prejudice.

This is what we are proposing. If your readers agree, we will draft a memorial for their consideration. Sgd Olyphant & Co

Vol 11 No 36 – 4th September 1838

Letter to the Editor, 3rd September 1838 – some creditors of Hing Tai and King Qua have made a composition with those Hong merchants for repayment of their debts. They have accepted payment of Hing Tai’s debt over 8½ years without interest and King Qua’s over 10 years with interest at 5% per annum payable in two additional years. The creditors are influenced by the passage of time since the debts were incurred and the small chance of getting anything better. Nevertheless, our inconsistency shows. Six months ago we all declined similar terms saying firstly we did not want the free trade to establish any precedent that might restrict its freedom of future action, secondly these debts arose out of actual trade (not loans) and are thus distinguishable from former debts and thirdly because we wanted to have all our debts quantified and arranged to put future trade on a safer base.

This ultimatum was put to the Hong merchants and a Petition for help concurrently made to the British government. Now the offer is accepted and the appeal to London has been forgotten. Elliot gave us a strong assurance that our plea would be immediately attended to in London. If an expedition for our relief has been sent from London it is going to find it has wasted its time - a 16,000 mile fool’s errand. The Chinese will ridicule our ultimata in future and our prospects of asking London to right real future grievances has been compromised. We are like the boy who cried ‘wolf’. Sgd “L”

Vol 11 No 38 – 18th September 1838

James Warly Smith, who circulated the community advising his services in March, has established himself in business as a public tea inspector at 5 Dutch Hong. Sgd 14th September 1838

Vol 11 No 38 – 18th September 1838

Shipping arrivals:

Vol 11 No 38 – 18th September 1838

London Morning Post - The Bill creating a British Court in China is in committee. Sir George Staunton has proposed in May 1838 that it be amended to require the Chinese government’s approval. If approval is unavailable, he recommends the court be established outside the Emperor’s jurisdiction.

Editor – where is this ‘outside’ place Staunton is talking about? Macau is under Chinese jurisdiction.

Vol 11 No 38 – 18th September 1838

English newspaper, May - A gentleman has arrived in London from China. He says there was no available shipping at Lintin to export his tea cargo and freight for delayed shipment was quoted at £10 per ton.

Editor – freight to London rose in mid-March to £10 - £10.10.0d per ton

Vol 11 No 38 – 18th September 1838

Viceroy’s Edict of 12th September concerning King Qua’s debts:

“Nanabhoy Framjee insists on receiving interest on his debt of 12% per annum. He wants it paid together with principal. The Hong merchants have tried to advise Nanabhoy but he is deaf to all instruction. On the contrary, he says Dent and the others are reconsidering their former agreements.

“Now the first purpose of trade is to collect wealth. King Qua has debts and is unable to pay. There is no prospect of repayment by him. His colleagues, mindful of their respectability, have offered to pay off the debts at $100,000 a year. By their offer, money that is irretrievable may be regained. Dent and others have claims of $800,000. They have negotiated an agreed settlement in ten years for principal and two further years for interest. Nanabhoy’s group have claims of $300,000. The Hong merchants should counsel Nanabhoy and the others so they may be brought to recognise their unreasonableness. There can be no two plans of settlement.

“In response to this advice, these Parsee creditors complained again, using an untutored translator who has offended me with unbecoming terms. They say ‘we are poor while Dent is rich; our debt is small while Dent’s is large’. They ask for special treatment – a shorter repayment period and interest payable concurrently with the debts.

“In response to their importunate demand I have ordered the Nam Hoi heen to arrest King Qua and force him into agreements with his creditors whereafter he may be released. Do not send me any more dunning petitions.”

(translated by S Fearon, interpreter to the General Chamber.)

Editor - This induced a recognition amongst the Parsees that King Qua would be bankrupted by the government. No good terms can be expected after King Qua is bankrupted. The Parsees then reconfirmed their prior agreement and King Qua was released.

The Viceroy responded:

“In future when you have debts with Hong merchants you must instantly advise me of the details at the end of each trading year so I can take the appropriate action. If you let debts accumulate year after year it is your own decision and you must bear the consequences yourselves. In those circumstances I will not again intervene. On this occasion I have exceptionally remitted King Qua’s punishment but it is no precedent for the future. You Hong merchants had better not imagine that you can similarly escape in the same circumstances.”

Vol 11 No 38 – 18th September 1838

The Viceroy reports that an Imperial rescript has arrived:

“Tea and silk are necessaries for foreigners. They will henceforth be sold for silver at a fixed price. They may not be exchanged for other commodities. The Hongs are to discuss and report how the prices should be fixed. They will identify those other items that can be bartered for foreign imports. They will instruct the foreigners on the new law. They will report in five days.”

Vol 11 No 38 – 18th September 1838

Letter from the Hongs to the foreign merchants:

To meet the increased expenses that have been forced upon us the security merchant will in future charge 1 mace per picul on all imported cargo. To make accounting easy we have rounded-up the new fee as follows:

Rice ships

Country ships

Company ships

American ships

$1,189.50

$ 700.00

$1,000.00

$ 700.00

Vol 11 No 39 – 25th September 1838

Notices:

Vol 11 No 39 – 25th September 1838

Local news – the press is no longer silent in Macau. The Portuguese government has commenced publication of its own newspaper - Boletim Official de Governo de Macau. We hope it will be allowed to discuss matters of public interest.

Vol 11 No 39 – 25th September 1838

A Che heen named Wei Chang was sent to Whampoa village on 17th September with 150 men to seize opium. He raided at night and seized 14 chests from one house. When he approached the next house, the inmates demanded to see his warrant. When this was not produced, a group of ruffians asserted he was a robber and opposed him with violence,. The magistrate was wounded, his boatman was killed and many of his soldiers injured. 12 of the 14 seized chests were recovered by the villagers.

Some reinforcements were sent to assist Wei and all the rebellious villagers brought to Canton for enquiries. After investigation, the Governor criticised the Che heen for conducting his raid at night.

We have found the Hong merchants and linguists are reluctant to talk to us about this matter. The Whampoa villagers monopolise the services provided to the foreign shipping at Whampoa and satisfy the numerous officials in their area with regular payments.35 The arrangement has hitherto been satisfactory and no trouble has occurred. They do not expect to be disturbed at night and the Governor agrees.

Editor – on reconsidering Olyphant’s proposed opium pledge we are now convinced, in the light of the Black Joke (see below) and the Whampoa disturbances (above), that it will cause an increase of opium imports. If the merchants who now control the import were to retire, the trade would fall into under-capitalised hands and the risks of bad management would increase. Olyphant’s original complaint was that the opium trade restricted American choice of outside anchorage. In fact the trade removed from Whampoa to Lintin when the opium ships were driven out of the river. All outside anchorages are illegal. If a captain delays requesting for a river pilot, his presence outside is immediately reported to Canton. It has been the establishment of an opium depot at Lintin that has obtained Chinese acknowledgement of our right to anchor outside. We have previous provincial edicts in which the Viceroy has said Lintin is the proper outside anchorage not Kum Sing Mun.

We were unaware of Olyphant’s claim that the recent removal of opium sales to Whampoa has affected demurrage. A year ago when opium was first being imported into the river, it was done secretly at night. Whenever a schooner appeared off the factories it was ordered away. But over the last 7-8 months the import of opium to the river has increased exponentially. Sales are made during daylight. The boats anchor where they please. They travel uninterruptedly and continually between Canton and Whampoa. How can Olyphant say communications with Macau are impeded because the ferry boats have become opium boats? Opium trade is increasing not through tacit connivance of the government but through more or less active encouragement.

Olyphant should not focus on the illegality or the periodic prohibitory Edicts - he should understand that government failure to act decisively contains the inference of its support. It is absurd to seize, bind, torture and kill to suppress a mere luxury. The Government’s anti-opium Edicts should be seen in the same light as a ship-master’s Protest against heavy weather.

Olyphant says our opinions are divisive. We are the voice of the public. We do not advocate opium trade. We inform people of what is happening here and allow matters to be discussed in our columns. We will now await the proposed meeting of the commercial community in November. We expect many opium traders will decline to take the pledge. We will report their reasons. That will be the time to take a view on the subject.

Vol 11 No 39 – 25th September 1838

On 17th September the schooner Black Joke was entering the Bogue with 30 chests of opium when it was stopped and boarded by two government coast guard boats. A large number of foreigners were on board to protect the cargo. The senior Chinese official was brave. When coming alongside and passing under the mouth of a loaded swivel, he dared the foreigners to fire. Chinese officials sought to go below but were physically prevented in a fight on deck.

We suspect the interest of the Customs Officers was stirred by the large number of foreigners on the ship. These days the government is mainly concerned to prevent Maitland and his men from getting up to Canton. It might have appeared to them that the Black Joke was attempting to bring Maitland’s men in.

Vol 11 No 40 – 2nd October 1838

Galignani’s Messenger - Matheson, Sheriff of Leith, has died of typhus on 22nd May 1838. He was an upright and capable magistrate.

Vol 11 No 40 – 2nd October 1838

Arrivals and departures:

Hugh H Lindsay has arrived in China per Orestes from Madras.

Daniell has arrived per Sir Herbert Compton from Bombay

L de Senn Basel has left per Forth for London.

Vol 11 No 40 – 2nd October 1838

Local news:

Vol 11 No 40 – 2nd October 1838

Pau Chee Lin has memorialised the Emperor on opium. He commends severe punishment of smokers after a six-month amnesty. He says it has long been prohibited but the military and the people disobey. The habit has spread from the maritime provinces to affect the homeland of the Imperial family and the interior provinces of Shansi, Shensi and Kansu. Both sexes smoke and the country people are neglecting their fields. In Peking he has met several men carrying opium pipes and paraphernalia at night.

Foreigners bring opium to Canton and Macau. It costs 30 – 40 million Taels a year to buy. Formerly the foreign ships brought both goods and silver for trade. Now they just bring opium. They use the dollar proceeds of their sales to buy sycee. Previously the dollar coin was worth 7 mace of sycee, now it is worth 8 mace. The troops and coast guard cruisers that are supposed to stop the trade all promote it and receive bribes from the dealers. In this situation silver will continue to flow out and prices of every basic commodity in China will increase (in copper cash). When a dealer is arrested he pays a poor man to personate him and accept the blows and banishment that the law prescribes.

Punishments must be made more severe to be effective but the smokers must be given a warning so they can prepare. After that, if they continue to smoke, they will be amenable to the heavier punishments. Then demand will reduce, imports will decrease and less silver will be exported. The severest punishment should be reserved for those officials who are supposed to interdict the trade but fail to do so.

Editorial - If China takes strong action against its people it knows what to expect from the response of the Whampoa villagers last week. The government never confronts the foreign importers. If it destroyed the opium ships and boats and punished foreigners under its own laws on its own territory we would be defeated. Clearly opium is a powerful weapon with which to influence the Emperor.

The trade is huge, the commercial connections we have made innumerable. It will not be voluntarily abandoned by us except under a solemn assurance it will never fall into other hands. It is shameful to blame just the navy and Customs officers for opium - all the officials from the Emperor down are implicated. How is it that when the people of Leen Chow rebelled in 1830 the Viceroy was held strictly responsible for the causes and suppression of their rebellion but with opium, which he really can control, he is not? The lord of 30 million Cantonese should be a match for a few obstreperous foreigners.

Vol 11 No 40 – 2nd October 1838

Last month the Viceroy and Governor met to discuss opium. The governor said it has been available for many years and should not be stopped suddenly. The Viceroy disagreed and soon after arrested a hundred people on suspicion of involvement. The governor is a drinker - he enjoys wine and archery – he always submits to the new Viceroy’s opinions.

Vol 11 No 41 – 9th October 1838

Local news:

Vol 11 No 41 – 9th October 1838

The Morrison Education Society has considered the propriety of continuing to assist Mrs Gutzlaff’s school in Macau. J C Green proposed, seconded by James Innes, that the Society give no further assistance until the present method of recruiting students has been abandoned.

Vol 11 No 41 – 9th October 1838

Letter received by James Innes (read to the General Chamber):

Steam communication between Suez and Bombay has been extended to Calcutta via Point de Galle by the Semiramis. It is time to connect Canton to Galle. One 800 ton steamer with 220 HP engines should provide a quarterly service. £50,000 will pay for the ship and the coal. The vessel will carry cargo, mails and passengers and touch at Singapore both ways. As India increases the frequency of the Galle/Calcutta service, you should increase the frequency on the Canton/Galle line. I expect this will eventually reduce the sailing time from Canton to London to about 55 days. I wish to be instructed to place this first steamer in service for you. Sgd Thomas Waghorn, promoter of steam packets.36

Lancelot Dent said he was in India when Waghorn’s original proposals were considered. He knew the idea was not commercially sound. How can the enormous capital costs be recovered from an income of only passengers’ fares and mails? How can the arrivals at Galle be matched to the timetables of steamers on the Calcutta route? The Calcutta line is not yet formally open – until it is there is nothing to decide. When Calcutta has a steam service the Bengal government will likely extend it to the Company’s entrepot at Singapore. That will be a matter for Bengal to fund. Our involvement in Canton will probably be only the connection from here to Singapore and we can adequately fund that route from freight on the existing levels of treasure and opium shipments.

It was agreed that Waghorn be told his proposal was premature.

Vol 11 No 41 – 9th October 1838

The Editor of Canton Register, John Slade, has sent a letter to Lord Palmerston, 6th October 1838:

The Superintendent of British Trade at Canton is resident at Macau. He is responsible for all British trade, including opium. He is accordingly ex officio a daily breaker of Chinese law. His despatches to you were recently published in the Canton Press. The whole community here fears you will have been misled and I will now put you straight.

In 1834 Napier laid down the principle that a British official would never communicate with the Chinese government through the Hong merchants. Napier’s successor Davis felt that Napier’s death rendered the Commission void. It could not sit at Canton as required. He forewent the £6,000 salary as his public duties were incapable of performance. He left China in January 1835. Davis concurred with Napier that the commission could not act through the Hong merchants. Sir George Robinson continued this policy and never appeared in Canton.

Then Elliot was promoted and the principle was abandoned. He applied through the Hongs for a passport to come to Canton. We all regretted this although Elliot was subsequently addressed as Ling Sze rather than Taipan (as the President of the Select used to be called). Then on 29th November 1837 Elliot addressed us and we learned that he had no positive order to address himself through the Hongs and had merely exercised his own judgement.

Elliot has told you (in a letter dated 2nd June 1837) of an increasing disposition on the part of China to conciliate the English government. This is nonsense. The Emperor recognises no equal in the World. He alone holds universal power. If there really was an intention to conciliate Britain it would be reflected in the settlement of Hing Tai’s debts and King Qua’s debts. The Chinese government would have accepted its duty to settle with us. The evidence against Elliot’s assertion is clear:

Every effort of your Lordship’s government has failed utterly and disgracefully. Your management of the Commission has lowered us in the opinion of the Chinese and the rest of the international community here. Your economising on the cost of the Commission has struck at the Chinese secretary and the surgeons who are precisely the people whose work raises our reputation with the Chinese, yet you retain two superintendents whose entire experience has been overseas or in Macau.

The results obtained by the Commission at the city gate bear no comparison with the results the merchants have themselves obtained at the same venue on 29th July and 29th September this year. Ask yourself ‘what use are they?’ The Commission denigrates us by its presence. The parsimonious Chinese ridicule its expense. I estimate you have spent £100,000 – £200,000 on the Commission so far. I suggest you appoint one of our leading merchants as Consul in Canton as the local government here will only communicate through the Hongs. Give him a deputy, a chaplain, two surgeons and interpreters – that is enough. The establishment of regular Consular dinners would do much to impress the Chinese and recover our reputation. We pay you nearly £5 millions a year (the tea and silk revenue). If you want to preserve that income you should shift your attention from here to Peking. I attach copies of my newspaper containing details of proceedings at the city gate mentioned above. Sgd John Slade

Vol 11 No 41 – 9th October 1838

Petition of Robert Thom to the Viceroy, 29th September 1838:

“I have been here several years trading in cotton piecegoods, woollen manufactures and the like. Long-clothes come in 1st, 2nd and 3rd classes. The new clerks of the Hoppo have introduced a new classification. I have protested to the Hongs but they say once the Hoppo records a transaction in his book it becomes immutable. 66s and 72s longclothes have always been 2nd class.37 The Hoppo’s clerks now say they are 1st class. The Hong merchants know this is wrong but are afraid to say anything.

“The Fairie Queen has just delivered a cargo of 2nd class long-cloth. My shipment was examined by Chow Chiang and his colleague. They did not open any bales but simply assessed them from the packaging to be 1st grade. I opened a bale, cut off a piece and showed it to some Hong merchants. They all agreed it was 2nd class but when the Hoppo is wrong they dare not say anything.”

Editor - Mr Thom prepared his protest to the Viceroy in Chinese and about 10 foreigners went to the Tsing Hai gate on 29th September to deliver it. When they arrived they found the gate shut. They sat down to out-wait the Chinese. Whilst doing so Mr Tait examined the gate and found he could lift one door off its hinges. The foreigners did so and then rushed in to overcome the soldiers guarding the inner gate. The soldiers were equipped with bamboo poles with iron hooks attached. An American, while endeavouring to restrain one of the party, received a blow on the temple which bled profusely. Then young Mowqua appeared with the Chung heep. The petition was delivered to the former on his agreement to hand it to the Viceroy. A complaint of injury (to the American) was made which the Chung heep promised to investigate. The foreigners then left.

Viceroy’s reply:

“This matter has been considered previously. I then ordered that, to avoid disputes, all interested parties should attend the Customs inspection on landing the goods for the purpose of agreeing the appropriate level of duty payable. Thom neglected that chance and now howls, hoping to obtain some rebate of duty.”

Thom’s response:

“I am amazed. In the previous case you told us in all future cases to petition the Hoppo. He says once the transaction is entered in his book it becomes unchangeable. Even mistakes cannot be changed. This is unreasonable.”

Viceroy’s reply:

“The Hoppo previously offered to receive musters of 1st, 2nd and 3rd quality long-cloth and verify them with his chop. Had foreigners taken advantage of this offer they could use the musters to take a position with the Customs clerks who assess duty. Thom did not do so. The fragment of cloth he has sent to me is useless – I have no idea where it came from. Nevertheless, I have asked the Hoppo to review the matter. The Hong merchants are to again remind the foreigners to attend professionally to their trade.” Sgd 1st October 183838

Vol 11 No 42 – 16th October 1838

Notice, 1st October - Robert Wilkinson and John Russell Reeves retired from the partnership on 30th June 1838. William Leslie joined on the same day.

Sgd Dent & Co,

Vol 11 No 42 – 16th October 1838

A Russian Orthodox monk has been sent by the Tsar into China to assess the military capability of the Chinese army. By bribery, and the artful manipulation of officials’ wives, he has collected much information.

In a letter published in St Petersburg, he describes the army as divided into four parts. First a guard of Manchu, Mongol and Chinese soldiers of 315,200 men; second the army of the conquering banner comprised of 260,000 Manchu and Mongol soldiers; third the army of the green banner comprised of 666,300 Chinese and fourth the army of Tibet and Turkestan comprised of 28,000 men.

Vol 11 No 42 – 16th October 1838

Quarterly Review, April edition on tea farming:

The hopes excited by the discovery of tea in Assam on its cession to Britain have been checked on discovering its uselessness in its present uncultivated state. But with care and skill, and by adoption of Chinese methods, we may in time make tea a colonial production.

Vol 11 No 42 – 16th October 1838

Editorial on changes in the Chinese cabinet:

The retirement of Yuen Yuen from the Privy Council is reportedly due to old age. He is considered sincere and incorruptible and has been president of all the six boards of government. He retires on half-pay. The Empress’s brother, hitherto a powerful man and another cabinet member, has been demoted.

These changes are suspected to connect with the recent appointment of a lady to a position of honour in the Imperial palace. We speculate that the control the Empress has over her brother is declining – otherwise how could she tolerate a rival? The To Kwong Emperor is not a forceful man. He depends on advisers to formulate policy. The Emperor’s brother-in-law was an overbearing man and could not be gainsaid in meetings. It appears conceivable that the Empress’ group has been sidelined and the recently appointed lady (and whoever she represents) is ascending to power in their stead.

Even in the cabinet the men in power are characterised by greed. These changes will encourage courtiers to organise themselves in new ways. Our trade should be unaffected unless the high officials of Canton are required to pay the new people to retain undisturbed enjoyment of their existing perquisites. If that occurs, it is likely the isolated and voiceless foreigners will be seen as a convenient cow to be milked.

In other countries the demotion of a premier and retirement of another cabinet member might occasion shocks that can be felt throughout the Empire. In China the Emperor simply writes his will in vermilion on a paper and it is done. If Viceroy Tang received a note today banishing him to Ili he would unthinkingly pack his knock-down furniture and depart. These occurrences are a timely reminder that the Emperor in China holds all power. At least we can see that he controls the Imperial family.

Vol 11 No 42 – 16th October 1838

Edict of the Hoppo Yu, 11th October:

Robert Thom has complained of incorrect duty charged to him on imports of long-cloth. I have brought the cloth to my office and examined it with Thom’s security merchant Sao Qua. There is a great diversity of qualities amongst the bleached cloth and a lesser diversity in the grey cloth. In the shops of Canton I see these long-cloths are sold in four or five qualities whereas they are imported in three classes. It seems there will always be difficulty in grading long-cloth.

As an arbitrary means of achieving a consensus I at first agreed to divide the bleached cloth and the grey cloth into two equal bundles and levy duty on the former at 50/50 1st class and 2nd class and the latter 50/50 2nd class and 3rd class. But this was found to be inadequately indulgent and gave Thom little relief.

I accordingly directed that all the grey cloth be rated as 3rd class. As for the bleached cloth I directed Sao Qua to discuss with the other Hongs and the foreigners and come up with an agreed formula for their future taxation. This produced the proposal that bleached cloth should be rated 50/50 1st class and 2nd class while grey cloth be rated 3rd class.

In fact, having examined the grey cloth I know there are fine and coarse grades. This proposal to charge all grey cloth as 3nd class is accordingly of great advantage to the foreigners.

My responsibility is to protect and collect the national fiscal income. It is also my duty to keep the traders content. The new proposal would result in a loss to the country and a gain to the foreigners. However it is true that prices for long-cloths are unusually low this year.

In consideration of all these variables I order that grey cloth in future be taxed as 3rd class and white cloth be taxed as 70% 1st class and 30% 2nd class without regard to the actual quality. In this way, in future, it will only be necessary to count the number of pieces of white and grey cloth to ascertain the duty payable. When the sale price of long-cloth rises I will reconsider these rates.

Vol 11 No 42 – 16th October 1838

Edict of the acting Nam Hoi heen – Opium is a prohibited substance. Several brokers who have opened opium divans have been arrested and punished. Others who refine opium for smoking have also been caught.

Now I find there is a third class of criminal involved. He pretends to be a policeman and harasses the ordinary people and merchants by entering their houses, supposedly to search for opium but actually to steal money and goods. These people even carry opium and pipes with them and plant them on the innocent in expectation of gain. This is detestable and warrants death.

The government requires everyone searching for opium to hold a warrant for the purpose. If the army must comply with this requirement (the police runners are actually soldiers), how can these vagabonds harass the people without warrants?

To combat this third class of vagabonds, the Viceroy has ordered that whenever the abode of an opium broker is discovered, the officer must first petition a senior official to dispatch troops to make the seizure. If the officer fails to report and makes the seizure himself he commits an offence. I now inform the common people that should people come to your houses to search for opium, and they have no warrant, you are to seize and bind them and hand them over to me.

Vol 11 No 43 – 23rd October 1838

For Sale, 15th October – the armed Spanish schooner Patriota, 180 tons, 2½ years old, coppered hull, two suits of sails, three chains and anchors, rigging all of Russian hemp. Contact James P Sturgis at Macau or Russell Sturgis & Co, Canton.39

Vol 11 No 43 – 23rd October 1838

The New York Journal of Commerce of 19th May has published an extract from a letter sent by an American at Canton to Salem, dated 4th January 1838:

The Viceroy said two months ago that he would stop trade if the opium fleet at Lintin did not remove. He has just issued another warning and How Qua assures me it is not a bluff. In utter contempt of Chinese law, the foreign community has complied with the order by bringing the opium trade to Whampoa. The barque Isobel brought up an entire cargo of opium overstowed with just enough rice to give her the superficial appearance of a lawful trader, thus making a pilot available, and incidentally obtaining the pecuniary advantage of a rice ship. The ship has remained at Whampoa and no Hong merchant will secure her as everyone knows she carries opium.

While the opium smuggling was confined to ferry boats we did not mind because the quantities imported were small and none of the principal traders were directly involved. Now the cargo values are great and if the Chinese try to enforce the law there will be a confrontation and bloodshed. Then where will we all be? The Chinese are reluctant to use force even against the most audacious acts of smuggling - they simply stop trade. They do not capture vessels – they prevent access and egress to/from the river. The fears of the English that this will happen are evinced by the frenzied loading and departure of their ships without properly checking the export cargo.

Vol 11 No 43 – 23rd October 1838

Elliot to J M & Co as agents of the Canton Insurance Office, 19th October:

HMS Larne has completed a search of the Paracels, Indo-Chinese coast and Hainan in nine weeks without finding any trace of the missing brig Antonio Pereira that you insured. Captain Young, former commander of the Antonio Pereira, assisted in the search. HMS Larne was unable to definitively search the Bombay shoal. Sgd Elliot, Chief Superintendent.

Vol 11 No 43 – 23rd October 1838

Letter of 10th October from the 10 Hongs to the foreigners:

We have agreed settlement of your King Qua claims. Our Consoo is guaranteeing the debt. This is not a precedent for future cases. Hing Tai Hong went bankrupt by buying dear and selling cheap year after year. He owed over $2 millions. This has never happened before and involved calls on all the surviving Hongs as well. King Qua debts are also due to buying dear and selling cheap. If Hong merchants continue like this we will all be ruined.

We have now made new rules for the Consoo to avoid a repetition. The Consoo will withhold its chop on goods sold too cheaply thus preventing their being sent to the ship. Do not accuse us of delaying the loading of your cargo. As regards your imports you must require us to pay cash before delivery and you may not lend money to us for buying cargo. If you lend money it is likely to be inevitably applied to the debts of the Hong’s most pressing creditor – the tea men or the Hoppo – and not necessarily to your account. Any new debts incurred hereafter will not be met by the Consoo.

Young King Qua, the 5th brother of the licensee, is a hopeless trader. He was responsible for the loss of much of King Qua’s capital. A former President of the Select told old King Qua he should never allow anyone else to run his business. We accordingly remind you that young King Qua is incompetent and you do business with him at your own risk.

Vol 11 No 43 – 23rd October 1838

Letter from the Parsee merchants to the Viceroy, 5th October:

We come to Canton for business. We are only allowed to trade with Hong merchants. We traded with Tung Cheong Hong. He now owes $40,000 and is unable to repay. Foreigners cannot check the financial ability of Hongs – their trade with domestic suppliers and buyers is unknown to us, but as he is specially licensed by government to trade with us, we trusted him. Wang Chin Kau is the proprietor and his obvious opulence allured us. Please order the Co-Hong to settle our debts.

Viceroy Tang’s reply, 14th October 1838:

Dadabhoy and others have complained against Tung Cheong Hong. I find Hong debts are common. Foreign merchants should settle there accounts with Hongs from time to time. Why do you wait until $40,000 has accumulated before calling for help? This delay has contributed to the extent of your loss. The licensed trader of Tung Cheong Hong was Lo Fuk Tai. He has already been delicensed. Wang Chin Kau is not mentioned in the official record. I suppose he is an unregistered partner of Lo. Previously Heerjeebhoy complained of Wang Chin Kau. He held a note signed by Wang promising payment. That makes his case quite different to the present claims. It creates no precedent for unsecured claims. Nevertheless, the Hong merchants will investigate the alleged debts of Lo Fuk Tai and how they can be repaid.

Vol 11 No 43 – 23rd October 1838

Leung Chang Kiu, Foo Yuen of Kwang Si, has memorialised the Emperor concerning Hwang Tseo Tsze’s proposals for stopping the import of opium to prevent silver being exported:

Hwang wants heavier punishments of smokers after one year of grace. Communal bonds (pao chia) will secure the performance of the people.40 Officials and soldiers are to be shamed into abandoning the habit and will be punished more strictly for continuing to smoke after the year’s grace.

When opium was first imported, it was proscribed because of its adverse effect on the morals and health of the people. Now it is causing silver to drain away and the silver/copper exchange rate is deranged. The existing law seems adequate but silver still flows away. The problem is enforcement. Heavier punishments will make no difference if the law is not enforced.

It is not appropriate to execute people for smoking opium. We execute violent robbers and people who kill. It would be better to tackle the opium dealers and store-keepers. The present law allows banishment of opium dealers as slaves to the army. It allows strangulation of keepers of divans after their prison sentence has been completed. The real cause of the problem is the opium brokers in Canton who first introduce opium to China – they are really despicable. The foreigners do not come into China, they sell in the outer waters to Chinese brokers. The foreigners go to Lintin, Lantau and the Ladrones. They do not know their way around and require local guides.

The ten richest Canton opium brokers are worth over $1 millions, the middling 40 - 50 brokers are worth several hundred thousand dollars. For years they have been closely allied with the foreign importers and cement their bargains verbally whereupon an opium chit (Delivery Order) is issued. All these men deserve instant death; there is no need to wait for their imprisonment to end.

To become an opium broker, several families have to unite to pool their capital. Some few of them must be in fear of the law and will oblige the more daring amongst them to take care.

The time to observe a foreign opium ship is when it first arrives. That is when the brokers attend en masse to check the quality and price of the new cargo. That is when we can catch them.

For each broker we prevent dealing, a reduction in demand accrues to the foreigner. In this way we can make the trade less profitable and induce the foreigners into other businesses. To employ spies will be expensive as the trade makes so much money. It might be better to open our own fake shops to allure dealers into approaching us – then we can catch them red-handed.

The broker Yeung Shu was caught in Canton in 1824 and Poon Ah Tai in 1829. They were both banished as army slaves because we had no precise law concerning opium divans. It is this former indulgence that makes today’s brokers so brave. They use ‘fast crabs’ and carry arms. They always have money aboard for bribery. When seizures of opium or sycee are made, no-one knows if they are fully reported. Some officials have benefited from seizures, been promoted for their ‘diligence’ and then used their heightened authority to sell licences to the opium brokers in their district. There should be quicker and larger material rewards for magistrates who arrest brokers. They should be recognised at Court too. If the magistrates are properly motivated the problem can be solved.

The opium ships now stay at Whampoa. The brokers are mainly from Kwangchow foo, the smugglers are from Heung Shan, Tung Kwoon and Sun Wui. At present they all meet in Macau or Whampoa. The inland opium marts are in the foo‘s of Shao Kuan and Chiu Chow.

The Admiral is based at the Bogue – how can opium pass him? It is not just neglect, the naval officers protect the trade. Some even permit opium to be carried in their own government boats. The Admiral must control his men.

The foreigners also deliver opium along the coast. We should insist the officials in the maritime provinces forbid all foreign trade, then the ships will return to Canton. If they cannot stop sales being made, they should act against their local brokers.

If the poppy is farmed in China it is the same as importing it. Our good arable land will increasingly be turned over to the production of a useless Drug.

But executing people for smoking, extending punishments to sons and grandsons of smokers, is unnecessarily severe. It is said opium smoking in Cochin China has been made a capital offence. This is a foreign response and unreasonable. It is however absolutely appropriate to execute opium brokers but not smokers. By killing brokers and seizing their estates, the problem can be controlled. Once a few brokers have died, the problem will diminish. We will thus break the chain of people assisting in the import. The foreigners will be unable to sell because they will be unable to find people to make deliveries over the last mile. The loss of silver will slow and its value stabilise. The only matter for concern is the willingness of the enforcers to do their jobs.

Here in Kwang Si we have little opium smoking and no poppy farming - I do not know why. A diligent watch needs be kept on the Customs Houses of Chaou Chow and Chiu Chow. These are my views.

The Emperor’s comment on Leung’s opinion:

Hwang Tseo Tsze has also said that many officials are negligent. Perhaps they are corrupt? The Viceroys and Governors must obtain the obedience of the people. Search out everyone involved in opium trading. You all have three months after which the new severe penalties will apply. Respect this.

Vol 11 No 44 – 30th October 1838

Notes from Medhurst’s voyage on the American brig Huron:

Our vessel was fixed for Ningpo and ports to the north. The owners offered me passage for my missionary work but I was doubtful about the cargo which included opium. This was not for medicinal use but solely for pleasure. Opium smokers are morally culpable for damaging their own lives. Those who help them feed their habit are also culpable. Worst, the Chinese will associate everyone on the ship including myself with the opium trade.

I considered the length of voyage and the opportunity to connect with Chinese. The ship commander was experienced on the China coast and had many contacts. This was the only ship available. I had many books ready for distribution that were in gratuitous storage on the receiving ships at Lintin. If I could not distribute them I had nowhere else to store them and the kindness of the receiving ship captains might evaporate. In that event I would have to send the books back to Singapore or Malacca. My associates want me to spread the Gospel in China and I cannot do that in Canton.

On the other hand every Chinese knows that the foreign ships that come to the east coast are primarily concerned to sell opium. The opium ships must evade the Chinese Customs and invariably anchor far from the coast. The Chinese buyers come off in boats at night to make their purchases. If the deal is interrupted by the authorities everyone runs away. The opium ship captain might spend weeks off shore without sending a boat. The weather is often unsuitable for putting a boat out; or the coast is too rocky to take the chance. On the few occasions a boat is dispatched ashore, the people are necessarily cautious in their dealings with us. Finally, my value is knowledge of Chinese language – the cost of the missionary’s berth is the provision of interpreting services. He has to interface between seller and buyer and thus appear inextricably involved in the trade. He is also helping to spread opium even more widely. Every instance of missionaries assisting opium importers strengthens the importer and diminishes the arguments missionaries can use against the trade. However, it cannot be long before the opium trade goes the same way as the slave trade. Those missionaries who have assisted by interpreting can hardly protest against the business.

On these considerations I recognised it was generally undesirable for missionaries to ship on an opium boat.

Almost the entire foreign community at Canton is involved in opium trade. They say if they abandon it, others will quickly take their place. This is the excuse of most of them. It is untenable – whether others take up the business or not, the existing operators are causing misery for profit. They know they are destroying lives but they say that once started in the business it is difficult to withdraw. They also say just a few year’s trade produces enough profit to satisfy most who then vacate their positions and allow others to partake. They should remember to ‘do unto others as they would be done by’. Every day we ask the Lord to ‘not lead us into temptation’. If the merchants became more scrupulous about the sources of their wealth, the trade would diminish. We hope it will soon be recognised that this trade is disreputable.

The Company derives an immense profit from opium auctions. Very little opium is consumed in India, most of it is exported. This enormity is due to the Company directors in London and the Indian government at Calcutta. We know what they are doing and we should publish it day after day - importing opium is preventing our prosel