TRADE CORPORATIONS IN CHINA. jit, 



to designate themselves some foreigner to superintend the weigh- 

 ings. Notwithstanding the good reputation of the corporation and 

 the moderation of its requests, the foreign houses refused. All 

 transactions were suspended, and the official in autliority declared 

 that he could not compel the merchants to sell contrary to their 

 wish, and the foreign houses were eventually obliged to yield, one 

 at a time. 



The corporations likewise watch the transactions of their mem- 

 bers, oppose fraud which might harm the good name of the asso- 

 ciation so far that the silversmiths will not permit one of their 

 number to sell alloyed jewelry, even when the purchaser knows 

 it is such. Some see that the taxes and duties on production are 

 regularly and properly paid. Others, in the interest of the sta- 

 bility of the houses, forbid all fictitious sales and purchases, and 

 most of the stock operations and a large number of commercial 

 transactions which seem very simple to us would not be tolerated 

 by them. The custom of selling short having been introduced 

 upon the silver exchange in Peking a few years ago, a censor re- 

 ported it as a kind of gambling, and the Government interdicted 

 the operation — a very rare example of official intervention. Under 

 a similar old-fashioned view, the corporation of bankers inquires 

 into the total amount of the notes issued by its members. Every 

 banker and every broker is free to issue notes, and little attention 

 is paid to the precautions required by the law. But the corpora- 

 tion has an infallible means of restricting extravagance in the 

 emission of bills. If a house is going so fast as to be in danger 

 of compromising its credit and perhaps endangering the capital of 

 others associated with it, an order is given, all the notes are thrown 

 before the public, and the imprudent bank has to suspend its pay- 

 ments and retire. 



The corporation further maintains its reputation and keeps on 

 good terms with public powers by expenditures on ceremonials 

 and charities. Every year it appropriates a sum for the opening 

 of the kitchens from which rice and millet broths are distributed 

 to the poor of Peking. In case of famine or inundation, the quotas 

 of the corporations do not have to be w-aited for, while the more 

 prominent comm.ercial men also contribute largely under their own 

 names. They will subscribe for a testimonial to a mandarin who 

 has done good service, will help prepare the road over which an 

 imperial procession is to pass, and will contribute to the pageantry 

 of popular religious ceremonials. 



Each corporation has its patron divinity, who is the object of a 

 special cult. With one it is the' god of riches; with another Koan 

 Yu, god of war; with others a spirit of more limited competency, 



