II. China Papers. Redress of ment of fees and donations to the officers of Government; these difficulties were immediately lessened by the mild and moderate conduct of the late Hoppo Te-ta Zin. 173. On the adopting the resolution to support the Merchants, the ComGrievances, &c. mittee considered it their duty to resist the application of the private creditors to be allowed a participation at once in any advantages that might arise from their transactions with the Merchants, conceiving that the Company had full right to require that the profits arising from their transactions with these Merchants, should, in the first instance, be solely appropriated to the liquidation of their claims. On their amount being cleared off, it would remain for the Committee to afford any assistance in their power to private individuals. It may be here proper to observe, that the conduct of the private creditors throughout merits commendation. No measures were proposed to be adopted without a previous reference, to know how far such measures might be approved by the Committee. 174. From the situation of the Merchants it must be evident to your Honourable Court, that they possessed no resources within themselves from whence their balances could be paid off, and that the liquidation of their several debts to the Company could only be the work of several seasons. The payment of duties, the advance on contracts, and all other charges have been made from our treasury; and having, as your Honourable Court are desirous should be done, reduced their respective accounts with the Company, we are unable to concur in the remark of the 52d paragraph, under reply, that the Merchants are in a much worse situation than they were in 1809-10. On the contrary, we are disposed to think their circumstances are much improved, their embarrassed situation being publicly known, and they themselves are now fully aware that their re-establishment depends entirely on their good conduct and economy; and in addition to this, as far as the Company's investment is considered, we have established such an intercourse and understanding with the Tea Merchants as greatly advances the credit of the Junior Merchants of the Hong, and will prove of essential benefit in our future transactions. 175. With respect to the advances made on contracts, we believe that they do not exceed what was customary in former periods. Interest equal to one per cent. per month is charged on the sums so advanced, and consequently no loss can be said to arise. .. 176. We have been under the necessity of making, in the present season, advances on the payment of duties, to prevent the failure of the Hong of Fatqua. Our dealings with that Merchant are not extensive, but we hope by care and attention in his business, it will not be long before he clears his debt to the Honourable Company. 177. Our utmost exertions are used to limit the amount of our advances to the Merchants: their indispensable demands must be complied with; but on the economy with which their affairs are transacted depends chiefly the success of the present plan adopted for the payment of their debts. 178. We are unwilling to suppose that Goqua would have readily or on light grounds resorted to this measure, but at the same time, a certain pressure, arising from inability to pay his duties, which would endanger the Hong, might have proved too great to resist the temptation of appropriating funds passing through his hands, and we trust your Honourable Court will deem this a sufficient reason for the apprehensions expressed, and the advance made. EXTRACT LETTER in the Secret Department, from the Select Committee at Par. 12. IT is unnecessary for us to repeat the probable consequences of so many of the Merchants becoming bankrupts, and the heavy additional taxation that would fall on the trade, to enable these debts to be discharged. Our anxious endeavours have been constantly employed to give full effect to the arrangement. 13. We have met with difficulties proceeding, as we believe, from the jealousy of the Senior Merchants, and their desire to engross the European trade, these difficulties have been increased by a want of energy and conduct on the part of those Merchants whose Hongs we are endeavouring to sustain. We have only to to rely on our own firmness and determination in resisting any attempt that may be made, and when the Senior Merchants are convinced that we are resolved to persevere in the arrangement, we may hope to be allowed to carry it on without molestation. EXTRACT LETTER in the Public Department, from the Select Committee at Par. 68. WE have on other occasions so fully stated to your Honourable Court the many and serious consequences to the Trade that must inevitably ensue from the failure of so many of the Hongs so deeply indebted, and whose debts would fall on the European trade. We will confine ourselves at present to the remark that, under existing circumstances, we consider the advances made to enable the Merchants to discharge their duties to Government, and also the requisite advances to defray the disbursements of their respective Hongs, to be as necessary and expedient as any payments made to the Tea Merchants and others, in return for goods actually delivered; at the same time we had a right to expect, that the officers of the Canton Government would consider the advances made in a liberal point of view, and refrain from unjust practices, especially when these more particularly affected us; but from the officers of the Chinese Government we know, from experience, neither rectitude of conduct, or liberality of sentiment can be expected; when an officer enters on his situation, his attention is not excited to a due and just performance of its duties, but to the profits that may accrue from it. 69. The officer whose conduct has called forth the remark made by your Honourable Court, was notwithstanding a mild and moderate man compared with his predecessors; and, although we experienced several vexatious interruptions, there was at all times a great readiness shown by the Hoppo Le to receive, discuss and adjust any complaints we might have occasion to carry before him, and, on the whole, we should be well pleased to see the office filled by him again. II. China Papers. Embarrasments of the Hong Merchants. EXTRACT LETTER in the Secret Department, from the Select Committee at Par. 12. WE are wholly unable at the present moment to hazard an opinion as to what may be the Viceroy's course of proceedings in regard to the Hongs of the Junior Merchants; we cannot but indulge a hope, that the more accurate information that we suppose he must have obtained, together with the obvious policy of permitting the Junior Merchants to continue, will operate on the decision of the Viceroy, in permitting their Hongs to continue as before. 13. The question, as it relates to Sir George Staunton, we understand is considered to be completely set at rest, by the clear and strong statement made by the Merchants; the Viceroy, it is said, most fully concurred in the tenor of the document, and that it was immediately transmitted to Pekin; we cannot but hope that the Viceroy's views on the other points connected with the foreign trade have undergone a favourable change. 14. We should greatly regret giving your Honourable Committee grounds for believing that the situation of the Honourable Company's affairs and interest in China were in a more favourable state than is really the case; we have considered it necessary therefore, to take the earliest opportunity of laying every document before your Honourable Committee, from whence it will be seen, the attempts that have been made to overturn the present system of the trade, the change that was proposed to be established, the measures we have pursued in the hope of defeating the attempt, and the danger that still threatens the Honourable Company's interest, and the trade generally at Canton. 15. The measure of suspending the commercial intercourse (particularly should it be necessary for any length of time) is attended with such injurious effects, that nothing but the conviction that no other measure is left for our adoption, in order to obtain forbearance on the part of the Chinese Government, can justify our resorting to it, and for the efficacy of the measure we depend only on the conse II. China Papers. Redress of Grievances, &c. quences that may be supposed will arise to the Chinese Government from so extensive a trade being suddenly interrupted. 16. Your Honourable Committee will not fail to appreciate the difficulties experienced in conducting so extensive a trade, exciting the views and interests, and exposed to the intrigues of designing persons, protected by no laws or regulations, while the superior officers of the provincial government are leagued with or assisting the parties acting against us. To resist such a combination the Committee alone can scarcely be expected to prove equal, and it will be for your Honourable Committee to determine on the measures best calculated to support and preserve the Honourable Company's interests in China. EXTRACT LETTER in the Public Department, from the Select Committee at Par. 38. WE have lately been informed by Conseequa and the Junior Merchants that they are under considerable apprehensions, in consequence of Edicts which have been received from the Emperor and the Viceroy, relative to the foreign trade, and to their Hongs in particular. They stated that the Merchants indebted to foreigners are ordered to be removed. 39. We requested that the documents might be put into our possession, which request the Merchants have declined compliance with, in consequence, as they have privately assured us, of the advice of the Hoppo. 40. By a second Imperial Edict, relative to the foreign trade, we understand that the removing of such Merchants as are indebted to foreigners is again mentioned, and we understand that the Emperor positively directs Puankhequa to resume the situation of First Merchant. 41. A measure so unjust, and so manifestly injurious to the interests of the foreign trade at Canton, as breaking the Merchants who are indebted to foreigners, and whose heavy debts must necessarily fall on the trade in the shape of duties, we consider it to be our bounden duty to oppose in every way in our power. 42. From the experience we have had of the conduct of the Government and the Merchants, during the last season and the present, whether proceeding from machinations of some among the Merchants, added to the want of exertion in others, or the hostile and unfriendly disposition of the superior officers of the Canton government, it appears probable that the return of Puankhequa may be attended with beneficial effects, as we may hope he will have the power of repressing any evil designs, while his known firmness will enable him to explain affairs more freely to the officers of Government. EXTRACT LETTER in the Public Department, from the Select Committee at Par. 7. WE have the pleasure to acquaint your Honourable Court, Puankhequa has resumed the situation of First Merchant, in obedience to the Imperial Decree. 8. On our Consultations, under date the 2d instant, your Honourable Court will find detailed the particulars of an interview we had with Puankhequa and the other Merchants on that day, relative to the affairs of the Hongs that are indebted to Europeans. 9. We have already acquainted your Honourable Court with the serious consequences which we apprehended would attend the removal of the Junior Merchants, and that we should consider it our bounden duty to resist such a measure on the part of the officers of Government by every means in our power. 10. We have the satisfaction to state, that we have since been informed by Pinqua, that the Hoppo has expressed himself to be fully aware of the embarrassment that would arise to the general trade of Canton, should the measures proposed be carried into effect, and that he has promised to use his utmost endeavours to obtain the Viceroy's concurrence to the support of the Junior Hongs, on the return of that officer from the tour of inspection in which he is at present engaged. EXTRACT LETTER in the Secret Department, from the Select Committee at Par. 4. ON the 4th instant we had the satisfaction to hear through Pinqua, that the Hoppo had given him the strongest assurances of his intentions to support the Junior Merchants, as far as was in his power, and that he should spare no entreaties or arguments in inducing the Viceroy to concur. He proposed to avail himself of an early occasion after the Viceroy's return to Canton, as he is at present absent on a tour of inspection. 5. The assurances of the Hoppo, so strongly and unequivocally expressed, have had the effect of removing, in great measure, the doubts that the various reports respecting the intentions of the Government towards the Junior Merchants had excited; and we were in consequence enabled to assist the Junior Merchants in their arrangements with their European creditors, by granting bills on the Honourable Court for the amount of the balances due to them, together with a further sum beyond the amount which we were actually indebted; and in consideration of all circumstances our bills were drawn at the rate of 5 s. 6 d. per dollar, payable in 12 months. 6. The communication made by Pinqua will further enable us to proceed with the necessary arrangements for providing the investment of the ensuing season; and as the period of making the advances on the Twankays is arrived, our contracts with the Merchants will be made immediately after the sailing of the Scaleby Castle. EXTRACT LETTER in the Secret Department, from the Select Committee at 5. In consideration of Puan-khe-qua's former situation, we proposed in our division of the business to allot to him the proportion annually appropriated to the First Merchant, but on our intentions being communicated, Puan-khe-qua declined doing business to this extent, on the plea of want of capital (unless we would assist him with advances), and further, that we must stipulate to pay up the amount of his teas at the close of the season. 6. We must observe, that Puan-khe-qua advanced another argument, which, could it be relied on, does him more credit, which was, that he was unwilling to interfere with our arrangements respecting the Junior Merchants, as by the extent of their dealings with us their circumstances and credit were chiefly to be restored. 7. Under the unusual stipulation of his account being paid off at the close of the season, and which we cannot possibly suppose the real state of his capital to warrant, together with the obvious policy of assisting the Junior Merchants, the wishes expressed by Puan-khe-qua to engage in business with us on a more limited scale than we had proposed, were readily acceded to. 8. The conduct of Chunqua, in the opinion of the Committee, was such as to merit the severest marks of their displeasure; and an entire discontinuance of all commercial transactions between the Company and Chunqua would have been the proper return for his unjustifiable proceedings towards us. On the return of Puankhe-qua, however, we did not feel altogether confident as to the line of conduct he might think it proper to pursue; and as Chunqua appeared to us to promise the best, if not the only check on Puan-khe-qua, should he propose to embarrass the trade with restrictions, we deemed it rather politic to continue our business with Chunqua. Accordingly we made contracts with him to the same extent as in this season, 9. After the experience we have had of Chunqua's conduct, it is apparent that no reliance can be placed on him, and it will require a considerable period of service to remove the unfavourable impressions that his conduct has given. We must hope that the sums of money that these intrigues cannot but cost him, together with the failure of the ends proposed, will induce him to see his real interests, and II. China Papers. Redress of Grievances, &c. urge him to use such influence as he may possess with the officers of Government in disposing them favourably towards that trade by which he benefits. 10. With the exception of a reduction from Pinqua's business, who is considered as the second Merchant in our division of business, the allotment to the other Merchants was the same as in this season. 11. We are still unable to speak decidedly of the Viceroy's intentions respecting the Junior Merchants. Since his return to Canton we understand he has expressed his intention of making inquiries into the state of the Merchants' accounts with foreigners; but we believe he cannot but be now fully aware of the impolicy of carrying his former intentions of removing these Hongs into effect. 12. In the course of the communications which have passed on this subject, we have had opportunities of hearing indirectly that the principal officers of the Canton Government, as well as the Hoppo, were fully aware of the expediency of the Government not interfering with the Hong Merchants. The question, however, appears to rest entirely with the Viceroy to decide, and it is much to be regretted that the presumption and obstinacy of his character is unfortunately such as to leave the question still in doubt. 13. We are unwilling to anticipate evils, but in the event of the Junior Merchants being removed, the strongest appeal against the Viceroy's injustice will be required from us; and we should hope a subject of such importance could not fail to excite the attention of the Imperial Government of Pekin, where we must further hope the conduct of the Viceroy towards us, in this and in the preceding season, would meet with severe censure. EXTRACT LETTER in the Public Department, from the Select Committee at EXTRACT LETTER in the Secret Department, from the Select Committee at Par. 7. WE have transferred to our Public Department the several documents and our proceedings on the question of the continuance of the Hongs of the Junior Merchants, and as far as we can judge from appearances at present, we believe we may congratulate your Honourable Committee on the favourable termination of that highly important question. EXTRACT LETTER in the Public Department, from the Select Committee at 144. We have on former occasions so fully submitted our sentiments on this subject to your Honourable Court's consideration, that it is scarcely necessary for us here to repeat, that the continuance of the Hongs in question we consider to be of the greatest importance, not only to the interests of the Honourable Company, but to the foreign trade generally. We hope that no circumstances will be permitted to occasion any material interference or interruption in the arrangements at present existing for the extrication of the Junior Merchants from their embarrass ments. 145. Our discussions with the Chinese Government during the last, and at the commencement of the present season, having been already transmitted, your Honourable Court will have been enabled to judge how powerfully the present system |