Page 425 - Merchants and Mandarins China Trade Era

411.

Canton warned their correspondents in the United States not to

think of the new ports as an irrunediate source of huge profits.

One house wrote: "Foreigners will suffer severe losses, if, on

a/c of the open northern ports, they pour in upon China a very

great quantity of western products; for, though the consumption
of them in time must be greatly increased, the change cannot be

instantaneous." Foreign merchants would have to introduce com­

mercial operations into the ports, "& the people there will re­

quire time both to turn their capital into the channels of trade,

and to become acquainted with foreigners." No group of Chinese

merchants like the Hong merchants existed at the new ports. Al­

though the Treaty of Nanking prohibited a monopolistic organiza­

tion like tre Co-hong, that body had provided a structured way

for Chinese merchants to deal with foreigners at Canton. With­

out any direction or regulations to follow, as had existed under

the "Canton system," the foreigners would have to establish the

procedures of trade. Not realizing all this, speculators were

pouring goods into Canton, 11 & ruinous prices will be the conse-
35
quence for a year or more to come."

Even as the English and Chinese neared the end of nego­

tiations in the surruner of 1843 American merchants at Canton contin­

ued to operate under uncertain corrunercial conditions. All for­

eigners suspended their business to await the implementation of

35
Letter, A. Heard & Co. to W. Appleton & Co., Apr. 6,
1843, William Appleton & Co. MSS. Letter, A. Heard to G. Heard,
May 6, 1843, Heard MSS.