Page 98 - Merchants and Mandarins China Trade Era

84.

Dynasty, then close to two hundred years in existence, had de-

clined in strength and vitality. Excessive venality on the part

of its officials abusing the institution of "squeeze" sapped

the effectiveness of the system of unofficial "squeeze". Im­

proper demands for money which no longer constituted necessary

source of revenue contributed to the breakdown of the system.

Bribery, which was distinguished from "squeeze" in the

Chinese system, became common. Foreigners, as well as Chinese,

participated in this abuse of the system. Fearful and sus­

picious of the power of the officials at Canton, the Hong

merchants were often happy to help foreigners seeking to thwart

their power. The Americans at Canton, like all foreigners, pro­

fitted from such an attitude of the Hong merchants. But, more
than any other group of foreign merchants, the Americans main­

tained fairly good relations with the government. For them the

Canton system generally functioned very well.

IV

Daily life at Canton was no less a unique experience

than the system of business and official relations. Residence

there was totally different from that in any other foreign port.

Imperial law prohibited foreigners inside the walls of Canton

and restricted them to the area of the Foreign Factories on the

bank of the Pearl River. The Foreign Factories or Hongs dated

back to the eighteenth century, when the Chinese had constructed

them for the use of the Chinese merchants in the foreign trade.

After the formation of the Co-hong this body took them over.

Foreign traders also began to use them as counting-rooms.