CHINA. 



329 



i- India company, which was afterwards resumed, with bet- 

 tive inter- ter fortune, by Charles III. in 1785. The company 

 course with estaD ij s h e d by this prince, possess the exclusive commerce 

 v _-' Pa L J with Asia, but are bound to land their return cargoes in 

 Spain, and are permitted to export to other countries only 

 such articles, as cannot be advantageously disposed of at 

 home. They have a factory at Canton, with three su- 

 percargoes ; who make no purchase in tea, but chiefly 

 send home silk stuffs, nankeens, and other Chinese pro- 

 ductions. 



American!. The first American ship, appeared in China in 1784; 

 and, from that period, the traders of that country have 

 continued to repair to Canton in considerable numbers. 

 Their ships are the property of individuals ; but it was 

 not till the French revolution, that they were able to 

 carry out any money, which is always the most necessary 

 article in Chinese commerce. 



Origin of The first European traders to China, were generally 

 companies, private individuals, like the American merchants, who at 

 present appear at Canton ; but the length and dangers of 

 the voyage, and the various difficulties which were en- 

 countered in such distant expeditions, rendered them gra- 

 dually averse to the renewal of similar enterprises. It 

 has been uniformly, tht-Tefore, found necessary in every 

 country, with the exception of America, to commit the 

 commerce of India to exclusive companies ; and this 

 ingle circumstance, the result of actual experience, ought 

 not to be overlooked in the discussion of this much agi- 

 tated question. Without attempting in this place to en- 

 ter upon so important an enquiry as that of commercial 

 monopolies, and with a full conviction of their injustice 

 and inexpediency, in general, it would be wrong to con- 

 ceal, that exclusive companies are pronounced by M. De 

 Guignes to be necessary for carrying on an advantageous 

 trade with India, and especially with China. 



The Chinese themselves have found it requisite to 

 form something like an exclusive company on their p.irt, 

 in trading with the foreign merchants who visit their 

 ports. At first, these strangers were at liberty to ad- 

 dress themselves indifferently to any of the Chinese, v,-ho 

 could furnish the merchandize in demand. But, these 

 private dealers frequently absconded with the property 

 of the foreign trader, and repeated complaints were thus 

 brought by the latter before the mandarins ; who, on 

 their part, were often sufficiently embarrassed with levy- 

 ing the customs from the numerous purchasers. With a 

 view to relieve themselves from both these subjects of 

 contention, they formed an association of Chinese mer- 

 chants, to whom they committed the exclusive privilege 

 of dealing with the Europeans, upon condition of their 

 becoming responsible for the duties on the respective ar- 

 ticles of merchandize. This society, denominated Cong, 

 hang, was first instituted in 1759, by a Tsong-too, na- 

 med Lee ; and, among other regulations, they were ex- 

 pressly prohibited from furnishing the Europeans with 

 goods upon credit, or receiving, on the other hand, any 

 of their funds upon interest. The chiefs of the different 

 trading companies are obliged to procure a Hong mer- 

 chant to become surety for the payment of the duties, 

 and to be responsible for any frauds or contests between 

 the foreigners and the natives. The Hong merchant, on 

 the other hand, is enjoined to give his consent to become 

 i'iador or surety, to take charge of the interests of the 

 stranger, to procure a Comprador or contractor for pur- 



rp, T-. course with 

 The Eu- china _ 



chasing his provisions, and a Lingua or interpreter for Progrei- 

 transacting his affairs ; and to see that all his accounts s 

 are settled before the departure of the vessel 

 ropeans are farther required to present themselves at the 

 custom-houses, for the purpose of being inspected,* and 

 are forbidden to pass the appointed boundaries, unless 

 when accompanied by a soldier. Neither are they allow- 

 ed to possess a house of their own, upon the penalty of 

 confiscation of goods to the purchaser, and of exile or 

 death to the Chinese who shall have made such a sale ; 

 but the Hong merchants are bound to give a perpetual 

 lease of a lodging to each nation, and to be responsible 

 also for all, who are permitted to occupy it. By the 

 same regulations, it was enacted, that no European should 

 be permitted to bring his wife to any commercial place 

 in the empire, especially the city of Canton ; and that no 

 ship should ascend the river, without first obtaining per- 

 mission from the Chinese government, and taking on 

 board a pilot accredited by the mandarins. No vessel 

 belonging to a nation, who had residents at Canton, was 

 allowed to disembark any article at Macao, but must re- 

 pair to Wampoo, in order to be measured, and to pay the 

 duties of anchorage. It was bound also to take a cargo 

 in return, of which the Hong merchant was to be char- 

 ged with the duties; and, if it should ever happen that such 

 a vessel should depart in ballast, the Hong merchant was 

 still to be responsible for the duties, in the same manner 

 as if a cargo had been taken. All Europeans were far- 

 ther ordained, upon the departure of their respective 

 ships, to retire to Macao, and to lodge in houses belong- 

 ing to the Portuguese, which the Chinese government 

 engaged to procure to be let to the different compa- 

 nies. No European, upon his arrival, or during his resi- 

 dence in China, was to be allowed to monopolize any 

 species of merchandize, either upon his own account, or 

 for the purpose of transferring it to others ; and the 

 Hong merchants were forbidden to sell to foreigneri 

 either red or yellow copper, or to furnKh each ship with 

 more than 100 pounds of raw silk. The interpreters, 

 contractors, and Chinese in general, were commanded not 

 to enter into the service of a European, without first ob- 

 taining permission from the mandarins. These regula- 

 tions have not always been faithfully observed ; and both 

 have Europeans occasionally made monopolies of parti- 

 cular goods, and the Hong merchants borrowed the 

 funds of the foreigners at interest. Many of them have 

 even failed to a considerable amount with the property 

 of the strangers in their possession ; and, though the 

 Hong merchants were in those cases obliged to pay the 

 debts of their associates, yet they always took care to 

 reimburse themselves, by advancing the price of their teas 

 and other articles of traffic. Nay, they often went so 

 far as to fix, among themselves, the rate of all the ex- 

 ported and imported goods ; and thus levied immense 

 sums from the Europeans, which they employed in mak- 

 ing presents to the mandarins, and in meeting the unex- 

 pected demands of their government. The number of 

 these Hong merchants is not always the same. There 

 were eight of them in the year 1784; ; but since that 

 time four additional have been created by the Hopoo, 

 who finds this exercise of his power a very gainful prac- 

 tice. Though the Hong merchants only have the privi- 

 lege of dealing with the Europeans, yet the latter may 

 transact business with private merchants of the country. 



There are three custom-houses, where all, who pass in the Chinese boats between the ships and the town, are obliged to stop. 

 Thy are built partly upon a rocky bank, and partly over the river, supported by piles. They have a bridge contrived in such a 

 manner, that the boats may approach them at all times of the tide, a well during the ebb, as at the flood. Cloe to the haute stands 

 Bag marked with large Chinese characters, and their respective regulations we pasted upon the wall* 



TL. Tl. PAHT t. 2T 



