Page 264 - Merchants and Mandarins China Trade Era

250.

of profit. But the partners could still succeed commercially

without opium. The house did not want to suffer the embarras­

sment of having its trade at Canton indefinitely suspended over

opium.

Another factor, and perhaps the most important one,

in persuading Russell & Co. to leave the opium trade was the

Hong merchant Houqua. Throughout the existance of the house,

Houqua, through his investments and advice, had been respon­

sible for much of the house's prosperity and growth. In its

January letter to Forbes the house added, "Our friend Houqua

correctly recommends us to take warning & give it Lthe opium
trad�7 up in time. II Earlier Houqua apparently had added

strong inducements to his advice. Bennet Forbes, in a letter

to Samuel Russell concerning the house's decision to accept

no more opium consignments from India, had stated simply that

"Houqua says if we dont fsis;:_7 cut the trade in drugs 'in toto'

More than any other single factor, this
he will cut us.-- 11
threat of Houqua probably catalyzed the house's decision to
65
"t
d rop 1 s opium ra e.
.
t d
On February 22, 1839 Russell & Co. issued a formal
circular to all correspondents of the house announcing their

65
All commercial houses at Canton wrote formal business
letters to their correspondents. These letters were always
signed by a partner in name of the house. Partners also sent
more informal and confidential letters to former partners and
special correspondents. Letters, .Russell & Co. to J.M. Forbes,
Jan. 12 and Jan. 30, 1839, Forbes MSS. Letter, R.B. Forbes to
S. Russell g Jan. 12, 1839, Russell & Co. MSS. The last quota­
tion about Houqua is from this letter.