Page 199 - Merchants and Mandarins China Trade Era

185.
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"not tea-drinkers, being the descendents of Frenchmen."

The threat proved to be imaginary, as teas smuggled from Can­

ada did not seem to materialize in American markets and the

affair was not mentioned again at Canton.

In 1828 the East India Company did actively interfere

in American trade at Canton. By then Americans had begun to

prosper at Canton in a constantly growing trade. The American

merchants increasingly transacted business through the Outside

Merchants as well as Hong merchants. Part of the reason was

the primary attention some of the Bongs gave to East India Com­

pany business over that of the American merchants. Gradually

the Outside merchants had begun trading in articles legally

restricted to the monopoly of the Co-hong. Usually they opera­

ted under the cover of a Hong, which allowed the Outside mer­

chants to transact business "legally. 11 The Hong merchants pro­

tected the Outside men in return for a share of their profits.

American merchants had discovered that often more profitable trade
was obtainable through the Outside men, who received very little

business from the East India Company.

Suddenly irritated by the increasing business of the

Outside merchants, the Hong merchants decided in March 1828 to

suppress them. All they need do was to resume enforcement of

their legal monopoly by refusing to cover transactions of the

Outside men with the names of their Bongs. The East India

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From Letter, C.H. Hall, Jan 18, 1826, in U.S., Congress,
Senate, Committee on Finances, (Documents of Finances of U.S., laid
before the Senate), S. Doc. 31, 19th Cong., 1st sess., 1826.
Consul John R. Thomson also notified the State Department of the
belief that the Company planned to smuggle teas into the United
States from Canada. Consular Despatches: Canton, J.R. Thomson,
Feb. 4, 1825.