Page 200 - Merchants and Mandarins China Trade Era

186.

Company supported such a move with delight, because suppres-

sion of the Outside men would cut off the major buyers of

American-imported English manufactures. American merchants

at Canton were outraged by the action of the Hong merchants.

Consequently they petitioned the Hoppo and Governor-general
to complain of the action of the Co-hong and to ask for the

creation of a new Hong, the sole purpose of which would be to

secure the American trade. This Hong would be composed of the

ousted Outside merchants. Governor-general Li irrunediately

replied in the negative, restating the laws of the "Canton system"

which forbade trade in teas and silks with anyone but the Hong
63
merchants. Unable to have their Hong, the American pressured

the existing Hong merchants to reconsider their attitude toward

the Outside men. Ultimately American merchants and Hong mer­

chants compromised. In July the Governor-general handed down

another edict in which he specifically named the categories of

articles to be handled by the Co-hong and by the Outside men.

Although the Co-hong retained its basic monopoly in teas, silks

and nankins, the Outside men now were allowed to deal in silk

piece goods. Americans predominately purchased silk piece

goods rather than raw silk. The Outside men, furthermore, once

again would trade through the various Hongs, which still would

secure all foreign vessels. This edict in fact favored American

63
corrununications between foreigners and Chinese officials
still perfunctorily went through the Hong merchants. Morse,
Chronicles of the East India Company, IV, 170-71. Morse quotes
part of the Americans' petition to the governor-general. His
edict in reply is in the Canton Register, May 17, 1828. In this
paper the Americans' Chinese names are used.