Early Relations between the United States and China. 63 



for the United States Government and for the American mer 

 chants, that until a treaty should specify otherwise, those who 

 traded in China were under obligation to hold themselves amen- - 

 able to its laws. It is to be regretted, however, that the inevitable 

 issue between the Middle Kingdom and the Occident, free inter 

 course between the two on a basis of mutual equality, could not 

 have been forced by the United States at this time, and over a 

 test case of this nature, rather than by England nineteen years 

 later over the opium traffic. 



The years following the War of 1812, were, as we have seen, 

 marked by the rapid recovery and growth of the Canton-Ameri 

 can commerce. A reaction, however, was inevitable. Over- 

 optimistic merchants imported too largely on credit, too many 

 inexperienced men were drawn into the trade, 41 the market 

 became overstocked, and commercial failures followed. 42 There 

 was a slight increase in trade immediately after i8i9, 43 perhaps 

 because of the general depression, but the real crisis came in- 

 1826. After that year, in sharp contrast to the previous pros 

 perity, there was a sudden cessation in the importations of 

 Chinese goods to Providence, apparently attended with serious 

 losses. 44 Thomas H. Smith, one of the most prominent tea 

 merchants of New York, became insolvent, carrying many smaller 

 firms with him, 45 and Thompson, a prominent merchant of 

 Philadelphia, who was associated with Smith, went into a dis 

 graceful bankruptcy, owing the government a large sum for 

 duties. 46 Imports and exports to and from China fell off a third, , 

 and did not recover until 1833. 



41 Testimony of Joshua Bates of Baring Bros., before the Select Com. 

 on the E. India Co., Parl. Papers 1630, 5 : 218. He had been connected 

 with the American trade with China for twenty years. 



42 Ibid., 6 : 365-380. 



43 The figures are in Pitkin Stat. View (ed. 1835), p. 303, and in first 

 report of the Com. on E. India Co. Affairs, Parl. Papers, 1830, 5 : 20. 



44 The losses fell especially on Edward Carrington and Co., and the 

 smaller dealers associated with them. None entered again as extensively 

 into the trade. May 18, 1827, is the last entry of a China ship .until 

 July 5, 1831. Providence Custom House, Impost Book, 1827, and Ibid., 

 &quot;D,&quot; p. 16. Mss. in Rhode Island Historical Society. 



45 Barrett, Old Merchants of N. Y. City, p. 87. 



46 Ibid. 



