Early Relations between the United States and China. 21 



Chinese astuteness, however, these debts of bankrupt hongs 

 when guaranteed were paid by a special tax on the trade. 52 



The theory of the hong organization was that although the 

 barbarians were not worthy of direct communication with gov 

 ernment officials they were a troublesome set, and needed close 

 attention and restraint. To the co-hong, then, was given the 

 complete control of all foreigners, their persons, their property, 

 their servants, and their trade, and in return it was held respon 

 sible for their actions. The monopoly relaxed as time went on, 

 and a large body of &quot;outside merchants&quot; grew up, each of 

 whom, although legally allowed to furnish only those things 

 needed for the personal use of the foreigners, paid some hong 

 merchant for the privilege of unrestricted trade. 53 A position 

 on the co-hong was purchased from the government, frequently 

 at a high price ; but the place was not in every respect an enviable 

 one. The unfortunate merchant was subject to heavy assess 

 ments and official &quot;squeezes&quot; and at any time might be held 

 responsible to the extent of his life for .chance disorders among 

 foreigners. He could not retire from his position without spe 

 cial permission, a favor which at least must be purchased and 

 might be entirely refused. 54 The commercial character of mem 

 bers of the co-hong seems, on the whole, to have been high, and 

 although bankruptcies were fairly frequent, testimonies from 

 Americans and others to the honesty of the body are quite 

 numerous. Howqua, for example, the most famous of those 

 engaged in the American trade, bore an unimpeachable name for 

 honesty and philanthropy. The system was in general an effective 

 way of handling the trade as long as it was limited to Canton 

 and before government relations began. 55 When the treaties 



52 Chinese Rep., 6 : 292-296. 



53 Hunter, Fan Kwae in Canton, p. 35. Also evidence of Abel Coffin, 

 Mar. 20, 1830, quoted in John Phipps. A Practical Treatise on the China 

 and Eastern Trade. Calcutta, 1835, p. 310. 



54 Hunter, Fan Kwae in Canton, p. 36. Downing, The Stranger in 

 China, 2: 123-133. 



5 &quot;I never saw in this country such a high average of fair dealing as 

 there.&quot; Letters and Recollections of John Murray Forbes. Boston and 

 New York, 1899, i : 86. Hunter, Fan Kwae at Canton, p. 97, pays a high 

 tribute to the system and to the honesty of the merchants. 



