The Englishman in China During the Victorian Era, Vol. 1 (of 2) / As Illustrated in the Career of Sir Rutherford Alcock, K.C.B., D.C.L., Many Years Consul and Minister in China and Japan

by Alexander Michie

II. CHINESE.

Business aptitude—High standard of commercial ethics—Circumstances hindering great accumulations.

As it requires two to make a bargain, it would be an imperfect account of the China trade which omitted such an important element as the efficiency of the native trader. To him is due the fact that the foreign commerce of his country, when uninterfered with by the officials of his Government, has been made so easy for the various parties concerned in it. Of all the accomplishments the Chinese nation has acquired during the long millenniums of its history, there is none in which it has attained to such perfect mastery as in the science of buying and selling. The Chinese possess the Jews' passion for exchange. All classes, from the peasant to the prince, think in money, and the instinct of appraisement supplies to them the place of a ready reckoner, continuously converting objects and opportunities into cash. Thus surveying mankind and all its achievements with the eye of an auctioneer, invisible note-book in hand, external impressions translate themselves automatically into the language of the market-place, so that it comes as natural to the Chinaman as to the modern American, or to any other commercial people, to reduce all forms of appreciation to the common measure of the dollar. A people imbued with such habits of mind are traders by intuition. If they have much to learn from foreigners, they have also much to teach them; and the fact that at no spot within the vast empire of China would one fail to find ready-made and eager men of business is a happy augury for the extended intercourse which may be developed in the future, while at the same time it affords the clearest indication of the true avenue to sympathetic relations with the Chinese. In every detail of handling and moving commodities, from the moment they leave the hands of the producer in his garden-patch to the time when they reach the ultimate consumer perhaps a thousand miles away, the Chinese trader is an expert. Times and seasons have been elaborately mapped out, the clue laid unerringly through labyrinthine currencies, weights, and measures which to the stranger seem a hopeless tangle, and elaborate trade customs evolved appropriate to the requirements of a myriad-sided commerce, until the simplest operation has been invested with a kind of ritual observance, the effect of the whole being to cause the complex wheels to run both swiftly and smoothly.

To crown all, there is to be noted, as the highest condition of successful trade, the evolution of commercial probity, which, though no monopoly of the Chinese merchants, is one of their distinguishing characteristics. It is that element which, in the generations before the treaties, enabled so large a commerce to be carried on with foreigners without anxiety, without friction, and almost without precaution. It has also led to the happiest personal relations between foreigners and the native trader.

When the business of the season was over [says Mr Hunter][32] contracts were made with the Hong merchants for the next season. They consisted of teas of certain qualities and kinds, sometimes at fixed prices, sometimes at the prices which should be current at the time of the arrival of the teas. No other record of these contracts was ever made than by each party booking them, no written agreements were drawn up, nothing was sealed or attested. A wilful breach of contract never took place, and as regards quality and quantity the Hong merchants fulfilled their part with scrupulous honesty and care.

The Chinese merchant, moreover, has been always noted for what he himself graphically calls his large-heartedness, which is exemplified by liberality in all his dealings, tenacity as to all that is material with comparative disregard of trifles, never letting a transaction fall through on account of punctilio, yielding to the prejudices of others wherever it can be done without substantial disadvantage, a "sweet reasonableness," if the phrase may be borrowed for such a purpose, which obviates disputation, and the manliness which does not repine at the consequences of an unfortunate contract. Judicial procedure being an abomination to respectable Chinese, their security in commercial dealings is based as much upon reason, good faith, and non-repudiation as that of the Western nations is upon verbal finesse in the construction of covenants.

Two systems so diametrically opposed can hardly admit of real amalgamation without sacrifice of the saving principle of both. And if, in the period immediately succeeding the retirement of the East India Company, perfect harmony prevailed between the Chinese and the foreign merchant, the result was apparently attained by the foreigners practically falling in with the principles and the commercial ethics of the Chinese, to which nothing has yet been found superior. The Chinese aptitude for business, indeed, exerted a peculiar influence over their foreign colleagues. The efficiency and alacrity of the native merchants and their staff were such that the foreigners fell into the way of leaving to them the principal share in managing the details of the business. When the venerable, but unnatural, Co-hong system of Old Canton was superseded by the compradoric, the connection between the foreign firm and their native staff became so intimate that it was scarcely possible to distinguish between the two, and misunderstandings have not unfrequently arisen through third parties mistaking the principal for the agent and the agent for the principal.

Such a relationship could not but foster in some cases a certain lordly abstraction on the part of the foreign merchant, to which climatic conditions powerfully contributed. The factotum, in short, became a minister of luxury, everywhere a demoralising influence, and thus there was a constant tendency for the Chinese to gain the upper hand,—to be the master in effect though the servant in name. The comprador was always consulted, and if the employer ventured to omit this formality the resulting transaction would almost certainly come to grief through inexplicable causes. Seldom, however, was his advice rejected, while many of the largest operations were of his initiation. Unlimited confidence was the rule on both sides, which often took the concrete form of considerable indebtedness, now on the one side now on the other, and was regularly shown in the despatch of large amounts of specie into the far interior of the country for the purchase of tea and silk in the districts of their growth. For many years the old practice was followed of contracting for produce as soon as marketable, and sometimes even before. During three or four months, in the case of tea, large funds belonging to foreign merchants were in the hands of native agents far beyond the reach of the owners, who could exercise no sort of supervision over the proceedings of their agents. The funds were in every case safely returned in the form of produce purchased, which was entered to the foreign merchant at a price arbitrarily fixed by the comprador to cover all expenses. Under such a régime it would have needed no great perspicacity, one would imagine, to foretell in which pocket the profits of trading would eventually lodge. As a matter of fact, the comprador generally grew rich at the expense of his employer. All the while the sincerest friendship existed between them, often descending to the second or third generation.[33]

It would be natural to suppose that in such an extensive commercial field as the empire of China, exploited by such competent traders, large accumulations of wealth would be the result. Yet after making due allowance for inducements to concealment, the wealth even of the richest families probably falls far short of that which is not uncommon in Western countries. Several reasons might be adduced for the limitation, chiefly the family system, which necessitates constant redistribution, and which subjects every successful man to the attentions of a swarm of parasites, who, besides devouring his substance with riotous living, have the further opportunity of ruining his enterprises by their malfeasance. Yet although individual wealth may, from these and other causes, be confined within very moderate limits, the control of capital for legitimate business is ample. Owing to the co-operative system under which the financiers of the country support and guarantee each other, credit stands very high, enabling the widely ramified commerce of the empire to be carried on upon a very small nucleus of cash capital. The banking organisation of China is wonderfully complete, bills of exchange being currently negotiable between the most distant points of the empire, the circulation of merchandise maintaining the equilibrium with comparatively little assistance from the precious metals.

The true characteristics of a people probably stand out in a clearer light when they are segregated from the conventionalities of their home and forced to accommodate themselves to unaccustomed conditions. Following the Chinese to the various commercial colonies which they have done so much to develop, it will be found that they have carried with them into their voluntary exile the best elements of their commercial success in their mother country. The great emporium of Maimaichên, on the Siberian frontier near Kiachta, is an old commercial settlement mostly composed of natives of the province of Shansi, occupying positions of the highest respect both financially and socially. The streets of the town are regular, wide, and moderately clean. The houses are solid, tidy, and tasteful, with pretty little courtyards, ornamental door-screens, and so forth, the style of the whole being described as superior to what is seen in the large cities within China proper. The very conditions of exile seem favourable to a higher scale of living, free alike from the incubus of thriftless relations and from the malign espionage of Government officials.

In the Philippine Islands and in Java the Chinese emigrants from the southern provinces have been the life and soul of the trade and industry of these places. So also in the British dominions, as at Singapore and Penang, which are practically Chinese Colonies under the British flag. Hongkong and the Burmese ports are of course no exceptions.

The description given by Mr Thomson[34] of the Chinese in Penang would apply equally to every part of the world in which the Chinese have been permitted to settle:—

Should you, my reader, ever settle in Penang, you will be there introduced to a Chinese contractor who will sign a document to do anything. His costume will tell you that he is a man of inexpensive yet cleanly habits. He will build you a house after any design you choose, and within so many days, subject to a fine should he exceed the stipulated time. He will furnish you with a minute specification, in which everything, to the last nail, will be included. He has a brother who will contract to make every article of furniture you require, either from drawings or from models. He has another brother who will fit you and your good lady with all sorts of clothing, and yet a third relative who will find servants, and contract to supply you with all the native and European delicacies in the market upon condition that his monthly bills are regularly honoured.

It is, indeed, to Chinamen that the foreign resident is indebted for almost all his comforts, and for the profusion of luxuries which surround his wonderfully European-looking home on this distant island.

The Chinese are everywhere found enterprising and trustworthy men of business. Europeans, worried by the exhaustless refinements of the Marwarree or Bengali, find business with the Chinese in the Straits Settlements a positive luxury. Nor have the persecutions of the race in the United States and in self-governing British colonies wholly extinguished the spark of honour which the Chinese carry with them into distant lands. An old "'Forty-niner," since deceased, related to the writer some striking experiences of his own during a long commercial career in San Francisco. A Chinese with whom he had dealings disappeared from the scene, leaving a debt to Mr Forbes of several thousand dollars. The account became an eyesore in the books, and the amount was formally "written off" and forgotten. Some years after, Mr Forbes was surprised by a visit from a weather-beaten Chinese, who revealed himself as the delinquent Ah Sin and asked for his account. Demurring to the trouble of exhuming old ledgers, Mr Forbes asked Ah Sin incredulously if he was going to pay. "Why, certainly," said the debtor. The account was thereupon rendered to him with interest, and after a careful examination and making some corrections, Ah Sin undid his belt and tabled the money to the last cent, thereupon vanishing into space whence he had come.

CHAPTER XIV.
HONGKONG.

Two British landmarks—Chinese customs and Hongkong—Choice of the island—Vitality of colony—Asylum for malefactors—Chinese official hostility—Commanding commercial position—Crown Colony government—Management of Chinese population—Their improvement—English education—Material progress—Industrial institutions—Accession of territory.

The past sixty years of war and peace in China have left two landmarks as concrete embodiments of British policy—the Chinese maritime customs and the colony of Hongkong. These are documents which testify in indelible characters both to the motives and to the methods of British expansion throughout the world. For good and for evil their record cannot be explained away. Both institutions are typically English, inasmuch as they are not the fulfilment of a dream or the working out of preconcerted schemes, but growths spontaneously generated out of the local conditions, much like that of the British empire itself, and with scarcely more conscious foresight on the part of those who helped to rear the edifice.

The relation of the British empire to the world, which defies definition, is only revealed in scattered object-lessons. India throws some light upon it—the colonies much more; and though in some respects unique in its character, Hongkong in its degree stands before the world as a realisation of the British ideal, with its faults and blunders as well as with its excellences and successes.

The want of a British station on the China coast had long been felt, and during the ten years which preceded the cession innumerable proposals were thrown out, some of which distinctly indicated Hongkong itself as supplying the desideratum. But as to the status of the new port the various suggestions made neutralised each other, until the course of events removed the question out of the region of discussion and placed it in the lap of destiny.

The earliest English visitors to the island described it as inhabited by a few weather-beaten fishermen, who were seen spreading their nets and drying their catch on the rocks. Cultivation was restricted to small patches of rice, sweet-potatoes, and buckwheat. The abundance of fern gave it in places an appearance of verdure, but it was on the whole a treeless, rugged, barren block of granite. The gentlemen of Lord Amherst's suite in 1816, who have left this record, made another significant observation. The precipitous island, twelve miles long, with its deep-water inlets, formed one side of a land-locked harbour, which they called Hongkong Sound, capable of sheltering any number of ships of the largest size. Into this commodious haven the English fugitives, driven first from Canton and then from Macao, by the drastic decree of the Chinese authorities in 1839, found a refuge for their ships, and afterwards a footing on shore for themselves. Stern necessity and not their wills sent them thither. The same necessity ordained that the little band, once lodged there, should take root, and growth followed as the natural result of the inherent vitality of the organism. As Dr Eitel well points out, this small social body did not originate in Hongkong: it had had a long preparatory history in Macao, and in the Canton factories, and may be considered, therefore, in the light of a healthy swarm from the older hives.

During the first few years of the occupation the selection of the station was the subject of a good deal of cheap criticism in the press. A commercial disappointment and a political failure, it was suggested by some that the place should be abandoned. It was contrasted unfavourably with the island of Chusan, which had been receded to China under the same treaty which had ceded Hongkong to Great Britain; and even as late as 1858 Lord Elgin exclaimed, "How anybody in their senses could have preferred Hongkong to Chusan seems incredible."

But, in point of fact, there had been little or no conscious choice in the matter. The position may be said to have chosen itself, since no alternative was left to the first British settlers. As for Chusan, it had been occupied and abandoned several times. The East India Company had an establishment there in the beginning of the eighteenth century, and if that station was finally given up either on its merits or in favour of Hongkong, it was certainly not without experience of the value of the more northerly position. Whatever hypothetical advantages, commercial or otherwise, might have accrued from the retention of Chusan, the actual position attained by Hongkong as an emporium of trade, a centre of industry, and one of the great shipping ports in the world, furnishes an unanswerable defence both of the choice of the site and the political structure which has been erected on it. Canton being at once the centre of foreign trade and the focus of Chinese hostility, vicinity to that city was an indispensable condition of the location of the British entrepot, and the place of arms from which commerce could be defended. And it would be hard even now to point to any spot on the Chinese coast which fulfilled the conditions so well as Hongkong.

The course of its development did not run smooth. It was not to be expected. The experiment of planting a British station in contact with the most energetic as well as the most turbulent section of the population of China was not likely to be carried out without mistakes, and many have been committed. Indeed, from the day of its birth down to the present time domestic dissensions and recriminations respecting the management of its affairs have never ceased.

This was inevitable in a political microcosm having neither diversity of interest nor atmospheric space to soften the perspective. The entire interests of the colony were comprised within the focal distance of myopic vision. Molehills thus became mountains, and the mote in each brother's eye assumed the dimensions of animalcula seen through a microscope. The bitter feuds between the heads of the several departments of the lilliputian Government which prevailed during the first twenty years must have been fatal to any young colony if its progress had depended on the wisdom of its rulers. Happily a higher law governs all these things.

Freedom carried with it the necessary consequences, and for many years the new colony was a tempting Alsatia for Chinese malefactors, an asylum for pirates, who put on and off that character with wonderful facility, and could hatch their plots there fearless of surveillance. When the Taiping rebellion was at its height, piracy became so mixed with insurrection that the two were not distinguishable, and it required both firmness and vigilance on the part of the authorities to prevent the harbour of Hongkong becoming the scene of naval engagements between the belligerents. During the hostilities of 1857-58 a species of dacoity was practised with impunity by Chinese, who were tempted by rewards for the heads of Englishmen offered by the authorities of Canton.

It cannot, therefore, be denied that the immigrants from the mainland in the first and even the second decade of its existence were leavened with an undesirable element, causing anxiety to the responsible rulers.

The Chinese authorities, as was natural, waged relentless war on the colony from its birth. Though compelled formally to admit that the island and its dependencies were a British possession, they still maintained a secret authority over the Chinese who settled there, and even attempted to levy taxes. As they could not lay hands on its trade, except the valuable portion of it which was carried on by native craft, they left no stone unturned to destroy that. By skilful diplomacy, for which they are entitled to the highest credit, they obtained control over the merchant junks trading to Hongkong, and imposed restrictions on them calculated to render their traffic impossible. By the same treaty they obtained the appointment of a British officer as Chinese revenue agent in Hongkong—a concession, however, disallowed by the good sense of the British Government. But the Chinese were very tenacious of the idea of making Hongkong a customs station, never relaxing their efforts for forty years, until the convention of 1886 at last rewarded their perseverance by a partial fulfilment of their hopes.

For reasons which, if not very lofty, are yet very human, the diplomatic and consular agents of Great Britain have never looked sympathetically on the colony—indeed have often sided with the Chinese in their attempts to curtail its rights.

Nor has the Home Government itself always treated the small colony with parental consideration. Before it was out of swaddling-clothes the Treasury ogre began to open his mouth and, like the East India Company, demand remittances. A military establishment was maintained on the island, not for the benefit of the residents, but for the security of a strategical position in the imperial system. The colonists were mulcted in a substantial share of the cost, which the governor was instructed to wring out of them. The defences themselves, however, were neglected, and allowed to grow obsolete and useless, and, if we mistake not, it was the civil community, and not the Government, that insisted on their being modernised. The compromise eventually arrived at was, that the colonists provided the guns and the imperial Government the forts. An interesting parallel to this was the case of Gibraltar, which possessed no dock until the civil community by sheer persistence, extending over many years, at length overcame the reluctance of the British Government to provide so essential an adjunct to its naval establishment. The colony had suffered much from the war with China, but the Home Government refused it any participation in the indemnity extorted from the Chinese.

But these and other drawbacks were counterbalanced, and eventually remedied, by the advantages offered by a free port and a safe harbour. Standing in the fair way of all Eastern commerce, which pays willing tribute to the colony, Hongkong attracted trade from all quarters in a steadily increasing volume, and became the pivot for the whole ocean traffic of the Far East.[35] The tide of prosperity could not be stayed—it invaded every section of the community. The character of the Chinese population was continuously raised. The best of them accumulated wealth: the poorest found remunerative employment for their labour. Crime, with which the colony had been tainted, diminished as much through the expulsive power of material prosperity as from the judicious measures of the executive Government, for the credit must not be denied to successive administrators for the improvement in the condition of the colony. Among those none was more deserving of praise than Sir Richard MacDonnell (1865-72), who on catching sight, as he entered the harbour, of an enormous building, which he was told was the jail, remarked, "I will not fill that, but stop the crime;" and he was nearly as good as his word,—a terror to evil-doers.

A Crown colony is the form of government which challenges the most pungent criticism. The elected members of its legislature, being a minority, can only in the last resort acquiesce in the decisions of the official majority who constitute the executive Government. Such a minority, however, is by no means wanting in influence, for it is, after all, publicity which is the safeguard of popular liberty. The freedom of speech enjoyed by an Opposition which has no fear of the responsibility of office before its eyes widens the scope of its criticisms, and imparts a refreshing vigour to the invective of those of its members who possess the courage of their convictions. It reaches the popular ear, and the apprehension of an adverse public opinion so stimulated can never fail to have its effect on the acts of the Administration. Under such a régime it seems natural that, other things being equal, each governor in turn should be esteemed the worst who has borne rule in the colony, and in any case his merits are never likely to be fairly gauged by any local contemporary estimate. King Stork, though fair and far-seeing, may be more obnoxious to criticism than King Log, who makes things pleasant during his official term.

Hongkong being established as a free port, the functions of Government were practically limited to internal administration, and the question of greatest importance was the control of the Chinese population which poured in. This was a new problem. Chinese communities had, indeed, settled under foreign rule before, as in the Straits Settlements, in Java, and in Manila, but at such distances from their home as rendered the settlers amenable to any local regulations which might be imposed on them. Distance even acted as a strainer, keeping back the dregs. But Hongkong was nearer to China than the Isle of Wight is to Hampshire. Evil-doers could come and go at will. It could be overrun in the night and evacuated in the morning. Spies were as uncontrollable as house-flies, and whenever it suited the Chinese Government to be hostile, they proved their power to establish such a reign of terror in the colony that it was dangerous to stray beyond the beat of the armed policeman. Clearly it was of primary importance to come to terms with the native community, to reduce them to discipline, to encourage the good and discourage the bad among the Chinese settlers. As their numbers increased the public health demanded a yet stricter supervision of their habits. Sanitary science had scarcely dawned when the colony was founded, and its teachings had to be applied, as they came to light, to conditions of life which had been allowed to grow up in independence of its requirements. To tolerate native customs, domestic habits, and manner of living, while providing for the general wellbeing of a community in a climate which at its best is debilitating, taxed the resources of the British executive, and of course gave rise to perpetual recrimination. But the thing has been accomplished. Successive conflagrations have co-operated with the march of sanitary reform and the advance in their worldly circumstances in so improving the dwellings of the population, that their housing now compares not unfavourably with that of the native cities of India. The Southern Chinese are naturally cleanly, and appreciative of good order when it is judiciously introduced among them, even from a foreign source.

A more complex question was that of bringing an alien population such as the Chinese within the moral pale of English law, for law is vain unless it appeals to the public conscience. The imposition of foreign statutes on a race nursed on oral tradition and restrained from misdoing by bonds invisible to their masters was not an undertaking for which success could be safely foretold. The effect of a similar proceeding on the subtle natives of India has been described as "substituting for a recognised morality a mere game of skill, at which the natives can give us long odds and beat us." "The mercantile and money-lending classes in India," says Mr S. S. Thorburn, "delight in the intricacy and surprises of a good case in court." With the Chinese it has been otherwise. The population of Hongkong have so far assimilated the foreign law that, whether or not it satisfies their innate sense of right, it at least governs their external conduct, and crime has been reduced very low: as for litigation, it is comparatively rare; it is disreputable, and has no place in the Chinese commercial economy.

The best proofs of their acceptance of colonial rule is the constantly increasing numbers of the Chinese residents; the concentration of their trading capital there; their investments in real estate and in local industries; their identification with the general interests of the colony, and their adopting it as a home instead of a place of temporary exile. The means employed to conciliate the Chinese must be deemed on the whole to have been successful. There was first police supervision, then official protection under a succession of qualified officers, then representation in the Colonial Legislature and on the commission of the peace. The colonial executive has wisely left to the Chinese a large measure of a kind of self-government which is far more effective than anything that could find its expression in votes of the Legislature. The administration of purely Chinese affairs by native committees, with a firm ruling hand over their proceedings, seems to fulfil every purpose of government. The aim has been throughout to ascertain and to gratify, when practicable, the reasonable wants of the Chinese, who have responded to these advances by an exhibition of public spirit which no society could excel. It is doubtful whether in the wide dominion of the Queen there are 250,000 souls more appreciative of orderly government than the denizens of the whilom nest of pirates and cut-throats—Hongkong.

As an educational centre Hongkong fulfils a function whose value is difficult to estimate. From the foundation of the colony the subject engaged the attention of the executive Government, as well as of different sections of the civil community. The missionary bodies were naturally very early in the field, and there was for a good many years frank co-operation between them and the mercantile community in promoting schools both for natives and Europeans. In time, however, either their aims were found to diverge or else their estimate of achievement differed, and many of the missionary teaching establishments were left without support.

After an interval of languor, however, new life was infused into the educational schemes of the colony. The emulation of religious sects and the common desire to bring the lambs of the flock into their respective folds inspired the efforts of the propagandists, their zeal reacting on the colonial Government itself with the most gratifying results, so far at least as the extension of the field of their common efforts was concerned.

The Chinese had imported their own school systems, while taking full advantage of the educational facilities provided by the Government and the Christian bodies. Being an intellectual race, they are well able to assimilate the best that Christendom has to offer them. But the colonial system contents itself with a sound practical commercial education, which has equipped vast numbers of Chinese for the work of clerks, interpreters, and so forth, and has thus been the means of spreading the knowledge of the English language over the coast of China, and of providing a medium of communication between the native and European mind.

The material progress of Hongkong speaks volumes for the energy of its community. The precipitous character of the island left scarcely a foothold for business or residential settlement. The strip which formed the strand front of the city of Victoria afforded room for but one street, forcing extensions up the rugged face of the hill which soon was laid out in zig-zag terraces: foundations for the houses are scarped out of the rock, giving them the appearance of citadels. The locality being subject to torrential rains, streets and roads had to be made with a finished solidity which is perhaps unmatched. Bridges, culverts, and gutters all being constructed of hewn granite and fitted with impervious cement, the storm-waters are carried off as clean as from a ship's deck. These municipal works were not achieved without great expense and skilfully directed labour, of which an unlimited supply can always be depended on. And the credit of their achievement must be equally divided between the Government and the civil community.

The island is badly situated as regards its water-supply, which has necessitated the excavation of immense reservoirs on the side farthest from the town, the aqueduct being tunnelled for over a mile through a solid granite mass. These and other engineering works have rendered Hongkong the envy of the older colonies in the Far East. No less so the palatial architecture in which the one natural product of the island has been turned to the most effective account. The quarrying of granite blocks, in which the Chinese are as great adepts as they are in dressing the stones for building, has been so extensive as visibly to alter the profile of the island.

A great deficiency of the island as a commercial site being the absence of level ground, the enterprise of the colonists has been incessantly directed towards supplying the want. Successive reclamations on the sea-front, costing of course large sums of money, have so enlarged the building area that the great thoroughfare called Queen's Road now runs along the back instead of the front of a new city, the finest buildings of all being the most recent, standing upon the newly reclaimed land. It is characteristic of such improvements, that, while in course of execution, they should be deemed senseless extravagance, due to the ambition of some speculator or the caprice of some idealist, thus perpetually illustrating the truth of the Scottish saying, "Fules and bairns should never see a thing half done." Hongkong has been no exception to so universal a rule.

The industrial enterprise of the colony has fully kept pace with its progress in other respects. The Chinese quarter resembles nothing so much as a colony of busy ants, where every kind of handicraft is plied with such diligence, day in and day out, as the Chinese alone seem capable of. The more imposing works conducted by foreigners occupy a prominent place in the whole economy of the Far East. Engineering and shipbuilding have always been carried on in the colony. Graving-docks capable of accommodating modern battleships, and of executing any repairs or renewals required by them as efficiently as could be done in any part of the world, constitute Hongkong a rendezvous for the navies of all nations. Manufactures of various kinds flourish on the island. Besides cotton-mills, some of the largest sugar-refineries in the world, fitted with the most modern improvements, work up the raw material from Southern China, Formosa, the Philippines, and other sugar-growing countries in the Eastern Archipelago, thus furnishing a substantial item of export to the Australian colonies and other parts of the world. The colony has thereby created for itself a commerce of its own, while its strategical situation has enabled it to retain the character of a pivot on which all Far Eastern commerce turns.

This pivotal position alone, and not the local resources of the place, enabled the colony to found one of the most successful financial organisations of the modern world. The Hongkong and Shanghai Bank has had a history not dissimilar from that of the colony as a whole, one of success followed by periods of alternate depression and elation. Now in the trough of the wave and now on its crest, the bank has worked its way by inherent vitality through all vicissitudes of good or bad fortune, until it has gone near to monopolising the exchange business of the Far East, and has become the recognised medium between the money-market of London and the financial needs of the Imperial Chinese administration.

It should not be overlooked as a condition of its success that the great Hongkong Bank, like all other successful joint-stock enterprises, whether in Hongkong or in China, has from its origin borne a broad international character. Though legally domiciled in a British possession, representative men of all nationalities sit on its board and take their turn in the chairmanship as it comes round. The international character, indeed, may be cited as one of the elements of the success of the colony itself. No disability of any kind attaches to alien settlers, not even exclusion from the jury panel. They are free to acquire property, to carry on business, to indulge their whims, and to avail themselves of all the resources of the colony, and enjoy the full protection of person and property which natural-born British subjects possess. They come and go at their pleasure, no questions asked, no luggage examined, no permits required for any purpose whatever coming within the scope of ordinary life. Nor are they even asked whether they appreciate these advantages or not; in fact they are as free to criticise the institutions under which they live as if they had borne their part in creating them, which, in fact, they have done, and this it is which marks the vitality of the British system, whether in the mother country or in its distant dependencies.

The exceedingly cramped conditions of life on the island having proved such an obstacle to its development, the acquisition of a portion of the mainland forming one side of the harbour was at an early period spoken of as a desideratum for the colony. The idea took no practical shape, however, until the occupation of Canton by the Allied forces under the administration of Consul Parkes; and it is one of the most noteworthy achievements of that indefatigable man that, during the time when Great Britain was in fact at war with the Government of China, he should have succeeded, on his own initiative, in obtaining from the governor of the city a lease of a portion of land at Kowloon, which was subsequently confirmed by the convention of Peking in 1860. The improvement of artillery and other means of attack on sea-forts left the island very vulnerable, and the measures taken by the various European Powers to establish naval stations on the Chinese coast, together with the efforts which the country itself was making to become a modern military Power, rendered it a matter of absolute necessity, for the preservation of the island, that a sufficient area of the adjacent territory should be included within its defences. Following the example set by Germany and Russia, the British Government concluded an arrangement with the Government of China by which the needed extension was secured to Great Britain under a ninety-nine years lease. A convention embodying this agreement was signed at Peking in June 1898.

CHAPTER XV.
MACAO.

Contrast with Hongkong—An interesting survival—Trading facilities—Relations with Chinese Government—Creditable to both parties—Successful resistance to the Dutch—Portuguese expulsion from Japan—English trading competitors enjoy hospitality of Macao—Trade with Canton—Hongkong becomes a rival—Macao eclipsed—Gambling, Coolie trade, Piracy—Population—Cradle of many improvements—Distinguished names.

The three hours' transit from Hongkong to Macao carries one into another world. The incessant scream of steam-launches which plough the harbour in all directions night and day gives place to the drowsy chime of church bells, and instead of the throng of busy men, one meets a solitary black mantilla walking demurely in the middle of a crooked and silent street. Perhaps nowhere is the modern world with its clamour thrown into such immediate contrast with that which belongs to the past.

The settlement of Macao is a monument of Chinese toleration and of Portuguese tenacity. The Portuguese learnt at an early stage of their intercourse the use of the master-key to good relations with the Chinese authorities. It was to minister freely to their cupidity, which the Portuguese could well afford to do out of the profits of their trading. To "maintain ourselves in this place we must spend much with the Chinese heathen," as they themselves said in 1593 in a letter to Philip I. Macao is, besides, an interesting relic of that heroic age when a new heaven and a new earth became the dream of European adventurers. The spot was excellently well suited for the purposes, commercial and propagandist, which it was destined to serve; for in spite of the crimes and cruelties of the sixteenth century argonauts, the religious element was strongly represented in all their enterprises.[36] Situated outside the river proper, though within its wide estuary, and open to the sea, the settlement yet communicates by an inner passage or branch of the Pearl river with the city of Canton. It possesses two sheltered harbours adequate to the nautical requirements of the Middle Ages.

The small peninsula of Macao combined business conveniences with salubrity of climate in a degree absolutely unrivalled in the torrid zone. Its picturesque scenery was always found refreshing to the eye wearied by long contemplation of brick walls, malarious swamps, or the monotonous glare of the melancholy ocean. From the Chinese point of view, also, it was an ideal location for strangers, since they could be thus kept out of sight, isolated like a ship in quarantine, and put under effective restraint. The situation lent itself to the traditional Chinese tactics of controlling barbarians by stopping their food-supply, a form of discipline of which the efficacy had been proved at an early period in the history of the colony. The Chinese adopted all the measures they could think of to confine traders to Macao, where certain indulgences were held out to them, subject to good behaviour.

The Portuguese adventurers of the early sixteenth century, to whom the modern world owes so much, did well in pitching on this "gem of the orient earth and open sea" as a link in their chain of trading stations, which extended from the coasts of Africa to the Japanese islands. To trade as such the Chinese Government never seem to have had any objection, nor, would it appear, to foreigners as such. So long as there was nought to fear from their presence, the ancient maxim of cherishing men from afar could be followed without reserve, for the Chinese are by nature not an unkindly people. Tradition, indeed, claims for the settlement of foreigners in the Cantonese archipelago a purely hospitable origin, a storm-beaten vessel having in the year 1517 received permission from the local authorities to repair damages and dry her cargo there. The Portuguese frequented several harbours before they settled at Macao, their principal station being the island of Sanchuan, where Xavier was buried. About the middle of the sixteenth century, the city of Canton being besieged by a large piratical force whose base of operations was Macao, the high provincial authorities in their extremity sought the aid of the Portuguese, who came promptly to the rescue of the city, defeated the pirates, and captured their stronghold. Moved by mixed feelings of gratitude and policy, the Canton authorities thereupon sanctioned the Portuguese occupation of Macao, not ill-pleased to set up at that strategic point so effective a counterpoise to the native pirates.

It said as much for the tact of the Portuguese as for the forbearance of the Chinese authorities that such an isolated position as that of Macao should have been held without force, and only on the prestige of past achievements, on terms of mutual amity, for nearly four hundred years. The Portuguese squatters paid to the Chinese Government a ground-rent of about £150 per annum, in consideration of which they enjoyed practical independence. "The merchants, fully aware that their settlement at Macao was due neither to any conquest, nor as a return for services by co-operating in destruction of pirates, bore in mind two principles—to be on good terms with the provincial authorities, and to improve as much as possible their exclusive trade with China." The forms of administrative authority were indeed maintained by the Chinese, their permission being required to reside and to build houses and so forth—regulations which were more vexatious, perhaps, in theory than in fact. The exercise of Chinese jurisdiction over the person was asserted with moderation as regards the Portuguese, though full authority was maintained over the native population. The Portuguese, however, became dissatisfied with the relationship which had worked smoothly for three hundred years, and when the treaty-making era arrived they sought means to improve their status. By persistent efforts they gradually freed themselves from the overlordship of China, this object being finally attained by good diplomacy in 1887, when the Imperial Government ceded to Portugal sovereign rights over Macao in consideration of assistance rendered by the colony in the collection of the Chinese opium revenue.

Macao did not escape the fortunes of the long war of commercial supremacy which was waged between Holland and Portugal, but the colony successfully resisted two attempts to reduce it in 1622 and 1627. Its resources at that period enabled the diminutive settlement even to play some part in the game of empire in China itself, for we are told that a force of 400 men from India, under the command of two Portuguese officers, proceeded by land to Peking to support the last Ming emperor in his struggle with the invading Manchus. These auxiliaries returned whence they came without seeing active service.

Although the Dutch failed to take military possession of Macao, they took other trading colonies, and succeeded eventually in wresting from the Portuguese their Asiatic commerce. They supplanted them entirely in Japan, whose "gold and spoils" had greatly enriched the colony. Being expelled, not without reason, in 1662, the Portuguese fugitives from Japan retired to Macao.

Other competitors also began to appear and to assert their right to participate in the trade of the Far East, and Macao became the hostelry for merchants of all nations, who carried on business with the great Chinese emporium, Canton. Chief among these guests were the Dutch and English East India Companies, both of which maintained establishments at Macao for some two hundred years.

The English Company had made use of the Macao anchorage first under a treaty with the viceroy of Goa, and subsequently under Cromwell's treaty with the Portuguese Government in 1654, which permitted English ships to enter all the ports in the Portuguese Indies. Before the close of the seventeenth century ships were despatched direct from England to Macao. The English adventurers were not satisfied with the privilege of anchoring so far from the great emporium, but direct trade with Canton had yet to be fought for. The energetic Captain Weddell, commanding the ship London, in 1655 met the obstructive tactics of the Cantonese authorities by bombarding the Bogue forts and forcing his way up the river, after which he was received in friendly audience by the viceroy, and was granted full participation in the Canton trade, much to the chagrin, it is said, of the jealous Macao merchants.

The loss of its own direct commerce was thus compensated for by the tribute which the Portuguese colony was able to levy upon the general trade of China, by whomsoever carried on. Massive houses, with immense verandahs running all round them, and spacious and cool interior recesses, attest to this day the ancient glory of Macao. Though now neglected, and perhaps converted to baser uses, they afford a glimpse of the easy life led by the Company's agents and the merchants in the days before the treaty. During the business season, which was in the cool months, the whole mercantile community repaired to the factories at Canton while the ships lay at the deep-water anchorage of Whampoa, and between these two points the work of the year was done—arduous enough, no doubt, while it lasted. In spite of some contemporary testimony to the contrary, one can hardly conceive the quasi-imprisonment within the Canton factories as a kind of life to be enjoyed, but only as one to be endured for an object. At any rate, when the last cargo of tea had been shipped off the scene was like the break-up of a school. The merchants and their whole establishment betook themselves to their sumptuous river barges, and glided down the stream to Macao, where the luxury of a long holiday awaited them. Once at least in every year the foreigners were in full accord with the Chinese authorities, who sternly forbade loitering, and kept up the form of peremptorily sending the merchants away as soon as their business had been done. Nevertheless, those who desired to remain found no difficulty.

The Portuguese colony, whether or not under compulsion, played an ungracious part in the troubles which preceded the outbreak of war between Great Britain and China. To evict from their houses a company of helpless people and drive them to sea, even at the bidding of an oriental tyrant, was a proceeding little in keeping with the traditions of Lusitanian chivalry. But Englishmen may very well forgive the Portuguese this act of inhumanity, since it compelled the fugitives to seek a home of their own in the Canton waters, destined to eclipse the fading glories of "la cidade do nome de Deos da Macao."

The treaty of 1842, which enabled British merchants to set up house for themselves, deprived Macao of a large portion of its revenue; but even under this eclipse the era of its prosperity did not then come quite to an end.

The occupation of Hongkong supplied to British traders all the wants which Macao had previously furnished, accompanied by a security which the Portuguese Administration was unable to confer. Its harbour was incomparably superior, fulfilling all the requirements of a modern seaport. These advantages were irresistible; nevertheless, the merchants vacated with evident reluctance the roomy mansions in which the pleasantest part of their lives had been spent. Several of them retained possession of their Macao homes, using them for purposes of recreation. "Dent's comfortable quarters at Macao" afforded an agreeable retreat for Admiral Keppel, and no doubt many others of the nautical brotherhood before and after his time; for the sea-breezes of Macao were almost as great a relief to the denizens of Queen's Road as to the community which, after the treaty, was permanently quartered in the Canton factories. To this day Macao, well served by fast and commodious steamers, remains a favoured resort for week-end tourist parties, picnics, honeymoons, and the like.

DENT'S VERANDAH, MACAO.

The population of Macao is estimated at 75,000 Chinese and under 4000 Portuguese, of whom the percentage of pure blood is not large. The so-called Portuguese of the Chinese coast differ from those of Goa as the Chinese differ from the Indian natives. They supply a want in the general economy: in China, as clerks, for whose work they have, like the indispensable babu, a natural aptitude; in India, as domestic and personal servants. With the increase of typewriting and the practice of dictation in mercantile establishments the clerical services of the Macaese are likely to assume less importance. They are good Catholics, smoke cigarettes, and are harmless.

Though for many years Macao suffered depression from the loss of its foreign trade, its natural advantages in course of time attracted to it new branches of industry, which to some extent revived its drooping prosperity. Foreign and native merchants found it convenient to conduct a certain portion of their trade in tea and silk and other articles in the quiet old city, where burdens were light and labour abundant. Traffic of a less desirable character found also its natural domicile in the colony. It became the headquarters of the lucrative coolie trade, which there for many years found an asylum where it feared no law, human or divine. To the credit of the Portuguese Government, however, this traffic was abolished in 1874. Opium and gambling licences now provide the chief contributions to a colonial revenue, the surplus of which over expenditure furnishes a respectable annual tribute to the needy mother country.

There is yet another species of enterprise historically associated with the colony which cannot be altogether omitted, though it should be mentioned with the extenuating circumstances. Piracy, as we have seen, was rampant on the coasts of Asia, as it was also in Europe, before Vasco da Gama doubled the Cape; and it was not to be expected in an age when successful buccaneers in the Atlantic were earning distinction by harassing the common enemy Spain, that an isolated colony in remote Asia, detached from Europe a century and a half earlier, should have anticipated the ethical refinements of the awakening conscience of Christendom. Slavery itself was tolerated among the most enlightened races until the middle of the present century, and if the Macaese did feel a sneaking toleration for mitigated forms of it, as well as for other species of criminality which flourished all round them, it must be admitted the temptation lay very near to their hand. They had been brought up for centuries in close familiarity with the practices of the sea-rover. Though it cannot be said that piracy ever took rank as a domestic institution in patriarchal Macao, yet the openings for young men were much restricted by family custom, and instances have been reported of improvident sons laying unfilial hands on their fathers' junks on the coast with a view to rectifying the balance of the family finance. Whether or not such modes of redress were ever actually carried into effect, the fact that legends of this character should have woven themselves into the tissue of local gossip within comparatively recent times, and in connection with well-known names, indicates a state of feeling which should be allowed for in considering the relation of Macao to Chinese piracy.

The influence of Macao on the history of foreign relations with China extended much beyond the sphere of mere commercial interests. For three hundred years it was for foreigners the gate of the Chinese empire, and all influences, good and bad, which came from without were infiltrated through that narrow opening, which also served as the medium through which China was revealed to the Western world. It was in Macao that the first lighthouse was erected, a symbol of the illuminating mission of foreigners in China. It was there also that the first printing-press was set up, employing movable type instead of the stereotype wooden blocks used by the Chinese. From that press was issued Morrison's famous Dictionary, and for a long series of years the Chinese Repository, a perfect storehouse of authentic information concerning the Chinese empire, conducted chiefly by English and American missionaries. The first foreign hospital in China was opened at Macao, and there vaccination was first practised. It was from Macao that the father of China missions, Matteo Ricci, started on his adventurous journey through the interior of the country in the sixteenth century, ultimately reaching the capital, where he established an influence over the Imperial Court scarcely less than miraculous, thus laying the foundation-stone of the Catholic propaganda in China. The little Portuguese settlement has therefore played no mean part in the changes which have taken place in the great empire of China.

Of the personages associated with its history, the most brilliant, or at least the best known, was St Francis Xavier, the apostle of the Indies,—a man of so magnetic a character that he was credited with the miraculous gift of tongues, while as a matter of fact he seems not to have been even an ordinarily good linguist, speaking to the natives of the Far East only through an interpreter. Xavier died and was buried in the neighbouring island of Sanchuan, whence his remains were transferred first to Macao itself and afterwards to Goa. The names of Xavier and Ricci cast a halo over the first century of the existence of Macao. Another of the earlier residents of world-wide fame was the poet Camöens, who in a grotto formed of granite blocks tumbled together by nature, almost washed by the sea, sat and wrote the Portuguese epic 'The Lusiad,' celebrating the adventures of the great navigator Vasco da Gama. Of names belonging to the present century, or the English period, two only need be mentioned here. One was Robert Morrison, the father of English sinology, who was sent to China by the London Missionary Society in 1807. This remarkable man had mastered the initial difficulties of the Chinese language before leaving England. This he accomplished by the aid of a young Cantonese, and by diligent study of MSS. in the British Museum, and of a MS. Latin-Chinese dictionary lent to him by the Royal Society. His teacher accompanied him on the long voyage to China, during which Morrison laboured "from morning to midnight." In Canton a Pekingese teacher, a Catholic convert, was obtained, and the study of Chinese was carried on assiduously. The most enduring monument of these labours was the Chinese-English dictionary, which was printed by the East India Company at a cost of £15,000. This standard work has been the fountain from which all students of Chinese have drawn since his time.

Art has had but one representative, an Irish gentleman named George Chinnery, who resided in Macao from 1825 till his death in 1852. Of Mr Chinnery's drawings and paintings there are many scattered collections, on some of which we have been able to draw for the illustrations in these volumes.

GEORGE CHINNERY.
(From an oil-painting by himself.)

CHAPTER XVI.
PIRACY.

Association with Hongkong and Macao—Activity of British navy in suppressing piracy—Its historic importance—Government relations with pirates—The convoy system—Gross abuse—Hongkong legislation—Progress of steam navigation—Fatal to piracy.

A factor which has done so much to shape commercial intercourse with China as piracy cannot be properly ignored in a survey like the present. The settlements of Hongkong and Macao were forced into contact with this time-honoured institution, for these places are situated as near to the piratical centre as they are to that of the typhoon zone. From the time of the first war down to quite recent years the British squadron on the China station was almost engrossed in the two duties of surveying the coast and rivers, and of repressing piracy,—services which were not interrupted even during the progress of a war with the Imperial Government. Both proceedings were anomalous, being a usurpation of the sovereign functions of the Chinese Government. That Government, however, never evinced more than a languid interest in operations against its piratical subjects. Piracy, as such, seems indeed to have enjoyed that fatalistic toleration which the Chinese Government and people are wont to extend to every species of abuse, on the principle that what cannot be cured must be endured. Nor is China the only country where banditti have established with their future victims a conventional relation like that of certain predatory animals which are said to live on easy terms with the creatures destined to become their prey. Successful leaders, whether of brigands or of sea-rovers, have from time to time attained high political status in the empire. Wingrove Cooke says:—

Whenever anything occurs of historic importance we always find that some bandit has had a hand in it. The land was always full of them. When the Tartars possessed themselves of China, one of these bandit chiefs had just possessed himself of Peking, and the last of the Ming race had just hanged himself. It was a pirate who drove the Dutch out of Formosa; the son of a "celebrated pirate" who helped the Cantonese to defend their city against the Tartars; and it was a pirate who the other day destroyed the Portuguese piratical fleet at Ningpo. In all ages and at all times China has been coasted by pirates and traversed by bands of robbers.

In the 'Peking Gazette,' which he quotes, the Imperial Government itself thus describes the rule of the robbers:—

They carry off persons in order to extort ransoms for them; they falsely assume the characters of police officers; they build fast boats professedly to guard the grain-fields, and into these they put from ten to twenty men, who cruise along the rivers, violently plundering the boats of travellers, or forcibly carrying off the wives and daughters of the tanka boat people. The inhabitants of the villages and hamlets fear these robbers as they would tigers, and do not offer them any resistance. The husbandman must pay these robbers a charge, else as soon as his crop is ripe it is plundered, and the whole field laid bare. In the precincts of the metropolis they set fire to places during the night, that, under pretence of saving and defending, they may plunder and carry off.

When it suits the Government to enlist rebels or robbers in its service it condones their misdeeds, and confers on them rank and honour. The chief of the Black Flags, who kept up a guerilla war against the French in Tongking, was a recent case in point, as was also, if report speaks truly, the late gallant Admiral Ting, who perished in the Chinese forlorn-hope at Weihai-wei in 1895. The relationship between the authorities and the freebooters is often of so equivocal a character, that foreign naval officers in their crusade against pirates may have failed at times to make the proper discrimination. Vessels seized as pirates occasionally escaped the fate which should have awaited them by proving themselves revenue protectors. But if the Government ever suffered from cases of mistaken identity, the balance was handsomely redressed; for piracy and smuggling being ingeniously blended, the forces of the British colony might in their turn be induced, by information supplied by the Chinese authorities, to act as revenue cruisers, under the belief that they were being led against pirates. The hard fights resulting in the destruction of piratical fleets bearing all the evidences of criminality were, however, too frequent to permit any doubt as to the general character of the craft so treated.

But the anti-piratical agency was not confined to the commissioned officers of her Majesty's navy. Foreigners of all nations were drawn into the coasting traffic, in various capacities, as an antidote to piracy, with benefit, no doubt, to legitimate trade, yet not without some serious drawbacks. Dr Eitel tells us that during the first decade after the war the waters of Hongkong swarmed with pirates, that the whole coast-line was under the control of a blackmailing confederacy, and that the peaceful trading junk was obliged to be heavily armed, so that externally there was nothing to distinguish a trader from a pirate. During this period European seamen took service with the native pirates who made Hongkong their headquarters, whence they drew their supplies, and where they kept themselves informed as to the movements of valuable merchandise and of war-vessels. Foreigners were enlisted also in the service of the honest trader; Chinese merchants began to charter small European sailing-vessels for coasting voyages, whereby they gained the protection of a European flag, the prestige of a European crew, and the better sea-going qualities of a European vessel. Steamers also began to be employed to convoy the native junks.

The extension of the convoy system brought in its train the most terrible abuses, the class of foreigners so employed being as ready to sell their services to the pirates as to the merchants, and to turn from protector to oppressor of the honest trader with as much facility as Chinese fishermen and pirates interchange their respective parts. Many tragedies were enacted along the coast and rivers of China—many more, no doubt, than ever became known to the foreign public. Mr Medhurst, consul at Shanghai, said that the foreigners employed by the Chinese to protect their property on the water were guilty of atrocities of all kinds in the inner waters, which the Chinese authorities and people were unable to prevent. And Mr Adkins, consul at Chinkiang on the Yangtze, reported in the same year, 1862, a series of brutal murders committed by foreigners on the river, with which the native authorities declined to interfere. The criminals, not being amenable to any jurisdiction but their own, were thus left free to commit their outrages, unless some representative of their own country happened to be on the spot. The Taiping rebellion attracted desperate characters from all quarters, to whom it was a matter of indifference under what flag they served—pillage being their sole inducement. The only conspicuous case of trial of a foreigner for piracy was that of a young American, Eli Boggs, who was condemned in the Supreme Court of Hongkong in 1857, and sentenced to transportation for life. From such experiences it is to be apprehended that should any part of the Chinese empire become disorganised, lawless foreigners will be a more terrible scourge to the inhabitants than even the native pirates and bandits.

Of the abuses developed by the convoy system, and of the character of the foreigners concerned therein, a graphic yet matter-of-fact account is given by Wingrove Cooke. As the state of rampant lawlessness which prevailed at the time on the China coast, and the traditional attitude of the Government towards freebooters, are so perfectly illustrated in his concise narrative of the destruction of a Portuguese convoy, no apology is needed for quoting a passage or two from Mr Cooke's letter dated Ningpo, August 24, 1857:—

The fishing-boats which ply off the mouth of the river Yung pay convoy duties to the extent of 50,000 dollars a-year; and the wood-junks that ply between Ningpo and Foochow, and the other native craft, raise the annual payment for protection to 200,000 dollars (£70,000) annually. These figures are startling, but I have taken pains to ascertain their correctness.

The vessels employed in this convoy service were Portuguese lorchas. These vessels were well armed and equipped. There were no mandarin junks and no Portuguese ships of war to cope with them or control them, and they became masters of this part of the coast. It is in the nature of things that these privateers should abuse their power. They are accused of the most frightful atrocities. It is alleged that they made descents upon villages, carried off the women, murdered the men, and burnt the habitations. They became infinitely greater scourges than the pirates they were paid to repel. It is alleged, also, that complaints to the Portuguese consul were vain; that Portuguese sailors taken red-handed and handed over to this consul were suffered to escape from the consular prison. Rightly or wrongly, the Chinese thought that the consul was in complicity with the ruffians who were acting both as convoy and as pirates.... The leader of the pirate fleet was—I am going back now to a time three years ago—a Cantonese named A'Pak. The authorities at Ningpo, in their weakness, determined to make terms with him rather than submit to the tyranny of the Portuguese.

A'Pak was made a mandarin of the third class; and his fleet—not altogether taken into Government pay, for that the Chinese could not afford—was nominally made over to A'Pak's brother.... After a few of these very sanguinary provocations, A'Pak—not, it is believed, without the concurrence of the Taotai of Ningpo—determined to destroy this Portuguese convoy fleet.

For this purpose A'Pak's brother collected his snake-boats and convoy junks from along the whole coast, and assembled about twenty of them, and perhaps 500 men. The Portuguese were not long in hearing of these preparations, but they seem to have been struck with panic. Some of their vessels went south, some were taken at the mouth of the river. Seven lorchas took refuge up the river, opposite the Portuguese consulate. The sailors on board these lorchas landed some of their big guns, and put the consulate in a state of defence, and perhaps hoped that the neighbourhood of the European houses and the character of the consulate would prevent an attack. Not so. On the day I have above mentioned the Canton fleet came up the river. The Portuguese consul immediately fled. The lorchas fired one broadside at them as they approached, and then the crews deserted their vessels and made for the shore. About 200 Cantonese, accompanied by a few Europeans, followed these 140 Portuguese and Manila-men ashore. A fight took place in the streets. It was of very short duration, for the Portuguese behaved in the most dastardly manner. The Manila-men showed some spirit, but the Portuguese could not even persuade themselves to fight for their lives behind the walls of their consulate. The fortified house was taken and sacked by these Chinamen, the Portuguese were pursued among the tombs, where they sought refuge, and forty of them were shot down, or hunted and butchered with spears....

Merciless as this massacre was, and little as is the choice between the two sets of combatants, it must be owned that the Cantonese acted with purpose and discipline. Three trading Portuguese lorchas which lay in the river with their flags flying were not molested; and no European, not a Portuguese, was even insulted by the infuriated butchers. The stories current of Souero and his Portuguese followers rivalled the worst of the tales of the buccaneers, and public opinion in Ningpo and the foreign settlement was strongly in favour of the Cantonese.

But if Hongkong was the centre of piratical organisation, it was also the centre of effort to put it down. The exploits of her Majesty's ships, destroying many thousands of heavily-armed piratical junks, were loyally supplemented by the legislation and the police of the Colonial Government, which were continuously directed towards the extermination of piracy. These measures, however, did not appear to make any material impression on the pest. As part of his general policy of suppressing crime, the most drastic steps were taken by Sir Richard MacDonnell against pirates. He struck at the root of the evil within the colony itself by penalising the receivers of stolen goods, and by a stricter surveillance over all Chinese vessels frequenting the harbour. He also endeavoured to secure the co-operation of the Chinese Government, without which no permanent success could be hoped for. This was not, indeed, the first time that Chinese co-operation had been invoked. In one of the hardest fought actions against a piratical stronghold—that of Sheipu Bay, near Ningpo, in 1856—her Majesty's brig Bittern was towed into action through the bottle-neck of the bay by a Chinese-owned steamer. But the assistance rendered to the Government of Hongkong by the steam-cruisers of the Chinese customs service was of too ambiguous a character to be of real use, smugglers rather than pirates being the object of the Chinese pursuit—smugglers of whom the high Chinese officials had good reason to be jealous.

The result of the police activity and of regulations for the coast traffic was a great diminution in the number of piracy cases brought before colonial magistrates. This, however, by itself was not conclusive as to the actual decrease of the crime, for it may only have indicated a change of strategy forced on the pirates by the vigorous action of the Colonial Government. Foreign vessels were by no means exempt from the attentions of the piratical fleets, though they seldom fell a prey to open assault at sea. A different form of tactics was resorted to where foreigners were the object of attack: it was to embark as passengers a number of the gang with arms secreted, who rose at a signal and massacred the ship's officers. Even after steam vessels had virtually superseded sailers on the coast this device was too often successful through want of care on the part of the master. These attacks were carried out with great skill and daring, sometimes on the short passage of forty miles between Hongkong and Macao, and in several instances almost within the harbour limits of Hongkong itself.

While awarding full credit to the indefatigable exertions of the British squadron in China—the only one that ever troubled itself in such matters—and to the unremitting efforts of the colony of Hongkong, the reduction, if not the extinction, of armed piracy on the coast of China must be attributed largely to the commercial development, in which the extension of the use of steam has played the principal part. Organised by foreigners, and employed by Chinese, lines of powerful steamers have gradually monopolised the valuable traffic, thus rendering the calling of the buccaneer obsolete and profitless. Foreign traders, however, do well not to forget the debt they owe to the institution which they have superseded. But for the pirates, and the scarcely less piratical exactions of officials, the Chinese would not have sought the assistance and the protection of foreign men, foreign ships, or foreign steamers. Piracy has thus not only worked towards its own cure, but has helped to inaugurate an era of prosperous trade, based on the consolidation of the interests of Chinese and foreigners, such as may foreshadow further developments in which the same elements of success may continue in fruitful combination.

CHAPTER XVII.
THE ARROW WAR, 1856-1860.

Lorchas—Outrage on the Arrow—Question of access to city—Tone of British Foreign Office—Firm tone of British Government—Destruction of Canton factories and flight of foreign residents—Operations in river.

From the earliest days of the British occupation it had been the aim of the Canton authorities to destroy the "junk" trade of Hongkong by obstructive regulations, for which the supplementary treaty of 1843 afforded them a certain warrant. But as the Chinese began to settle in large numbers on the island the claims of free commerce asserted themselves, and gradually made headway against the restrictive schemes of the mandarins. The Government fostered the legitimate commercial ambition of the Chinese colonists by passing ordinances whereby they were enabled to register vessels of their own, sail them under the British flag, and trade to such ports as were open to British shipping. Certificates of registry were granted only to men of substance and respectability who were lessees of Crown land in the colony. The class of vessel for which colonial registers were granted was of native build and rig, more or less modified, of good sea-going qualities, known by the local name of lorcha. Naturally the Canton authorities looked askance at any measure aimed at the liberation of trade, and so truculent an imperial commissioner as Yeh was not likely to miss an opportunity of wreaking vengeance on the "native-born" who dared to exercise privileges derived from residence in the hateful colony.

One of these registered vessels was the Arrow, commanded by an Englishman and manned by Chinese. This vessel was in the course of her traffic boarded at Canton at midday on October 8, 1856, by order of the Chinese authorities, with marked official ostentation, her crew forcibly carried off on a charge, according to a Chinese version, "of being in collusion with barbarians," and her ensign hauled down. How this outrage on the British flag was perpetrated, how resisted, and what came of it, have been so often set forth that there is no need to dwell upon the details here. The traditional insolence of the Chinese was reasserted in all its virulence, as in the days of Commissioner Lin, and once more the British agents were confronted with the dilemma of aggravating past griefs by submission or of putting their foot down and ending them. A single-minded and courageous man was in charge of British interests in Canton, and, left with a free hand, there could be no doubting the line Mr Parkes would take. The decision, however, lay with Sir John Bowring, governor of Hongkong, her Majesty's plenipotentiary and superintendent of trade, and with the naval commander-in-chief, Sir Michael Seymour.

We have seen that the likelihood of sooner or later having to clear accounts with the authorities of Canton had not been absent from the mind of her Majesty's Government for some years previously, though by no initial act of their own would they have brought the question to a crisis. If the governor entertained doubts whether the Arrow insult furnished adequate provocation, his decision was materially helped by the deadlock in relations which followed. A simple amende for the indignity offered to the flag was asked for, such as the Chinese were adepts in devising without "losing face"; but all discussion was refused; the viceroy would not admit any foreign official to a personal conference. The small Arrow question thus became merged in the larger one of access to the city, and to the provincial authorities, which had on various pretexts been denied to the British representatives in contravention of the treaty of 1842.

It happened that the question had lately assumed a somewhat definite place in the agenda of the British plenipotentiary. Lord Clarendon had in 1854 instructed Sir John Bowring to take any opportunity of bringing the "city question" to a solution, and Sir John addressed a long despatch to Commissioner Yeh on the subject in April of that year. It had no effect, and was followed up a few months later by an effort in another direction. The turbulent character of the Cantonese people and the impracticable arrogance of the imperial officers who successively held office there had often prompted an appeal to Cæsar, and more than one attempt had been made in times gone by to submit the Canton grievances to the judgment of the Imperial Court. These attempts were inspired by a total misconception of the relations between the provinces and the capital. In the year 1854, however, it was decided to renew the effort to open direct communications with the Imperial Government. And circumstances seemed to promise a more favourable issue to the mission than had attended preceding ones. The time had come when a revision of the tariff and commercial articles of the treaties might be claimed, and besides the standing grievance at Canton there were sundry matters in connection with the fulfilment of the treaties which together constituted a justifying pretext for an unarmed expedition to the Peiho. The chances of a favourable reception were thought to be strengthened by the combination of the Treaty Powers. Sir John Bowring and the American Minister, Mr McLane, accordingly went together, with a competent staff of interpreters, to Tientsin, where they were soon followed by the French secretary of Legation.

High officials were appointed to treat with them, because it was feared that if some courtesy were not shown them the barbarians would return south and join the rebels, who were then threatening the southern provinces. But the net result of the mission was that it was allowed to depart in peace. Lord Elgin, commenting on the proceedings, sums up the instructions to the Chinese officials, gathered from the secret reports afterwards discovered, as, "Get rid of the barbarians," which would be an equally exhaustive rendering of all the instructions ever given to Chinese plenipotentiaries. On the occasion of this visit to the Peiho the foreign plenipotentiaries resorted, as had been done on sundry previous occasions, to the oriental custom of approaching a great man gift in hand. In the depleted condition of the imperial treasury they calculated that the recovery of the duties unpaid during the recent interregnum at Shanghai would be a tempting bait to the Peking Government. The offer, however, could not, it would appear, be intelligibly conveyed to the minds of the northern functionaries: unacquainted with commercial affairs, and misconstruing the proposal as a plea for the forgiveness of arrears, they at once conceded the sop to Cerberus, pleased to have such a convenient way of closing the mouths of the barbarians.

In December following a favourable opportunity seemed to present itself for renewing the attack on the exclusiveness of Canton. The Taiping rebels had blockaded the river, and in a "pitched battle" defeated the imperialist fleet and were actually threatening the city. In this emergency Yeh implored the aid of the English forces. Sir John Bowring thereupon proceeded to Canton with a naval force of five ships to protect the foreign factories, the presence of the squadron having at the same time the desired deterrent effect on the rebels, who withdrew their forces. Now at last the governor felt confident that the barrier to intercourse was removed, and he applied to the viceroy for an interview; but Yeh remained obdurate, refused audience as before, and with all the old contumely. Precisely the same thing had happened in the north in 1853, when the governor of Kiangsu applied through Consul Alcock to the superintendent of trade, Sir George Bonham, for the assistance of one of her Majesty's ships in defending Nanking against the expected attack of the Taipings. Divers communications of like tenor had, during several months, led up to this definite application. The appeal was most urgent, and yet in the title given to her Majesty's plenipotentiary the two important characters had been omitted, indicating that his power emanated from the ruler of an "independent sovereign state." "Such an omission," remarked Mr Alcock, "is characteristic of the race we have to deal with, for even in a time of danger to the national existence they cannot suppress their arrogance and contempt for barbarians." Arrogant and contemptuous of course they were, and yet it may perhaps be questioned whether such terms fully explain the mutilation of the plenipotentiary's official titles. Although they had been compelled by mechanical force to accord titles implying equality to foreign officials, yet in the innermost conviction of the Chinese an independent sovereign State was at that time almost unthinkable, and could only be expressed by a solecism. If, therefore, we ask how an imperial commissioner could demean himself by soliciting protection from the barbarians to whom he was denying the scantiest courtesy, we have to consider the point of view from which China had from time immemorial and without challenge regarded all the outer States. For it is the point of view that is paradoxical. To Yeh, considering barbarians merely as refractory subjects, there was no inconsistence in commanding their aid, while denying their requests. The position is analogous to that of Ultramontanes, who claim tolerance for themselves in heretical communities by a divine right which excludes the idea of reciprocity. This key to the history of foreign intercourse with China is too often forgotten.

Nothing daunted, Sir John returned to the charge in June 1855, on the occasion of the appointment of the new consul, Mr Alcock, whom he asked permission to introduce to the Imperial Commissioner. His letter was not even acknowledged for a month, and then in the usual contemptuous terms.

So far, indeed, from Yeh's being mollified by the assistance indirectly accorded to him in defending the city from rebel attack, or by the succession of respectful appeals made to him by Sir John Bowring, a new campaign of aggression was inaugurated against the lives and liberties of the foreign residents in Canton. This followed the traditional course. Inflammatory placards denouncing foreigners, and holding them up to the odium of the populace, were extensively posted about the city and suburbs in the summer of 1856. These, as usual, were followed by personal attacks on isolated Englishmen found defenceless, and, following the precedents of ten years before, the outbreaks of anti-foreign feeling in Canton found their echo also in Foochow, where an American gentleman met his death in a riot which was got up there in July. So serious was the situation becoming that Mr Consul Parkes, who had succeeded Mr Alcock in June, solemnly warned the Imperial Commissioner that such acts, if not promptly discountenanced by the authorities (who of course were well known to be the instigators), must inevitably lead to deplorable consequences. The Chinese reply to this remonstrance was the outrage on the lorcha Arrow. To isolate that incident, therefore, would be wholly to miss the significance of it: it would be to mistake the match for the mine.

Those who were on the spot and familiar with antecedent events could have no doubt whatever that, in condoning the present insults, the British authorities would have invited greater and always greater, as in the days of Lin. The tone of recent despatches from the Foreign Office fortified the governor in taking a strong resolution; the clearness of Consul Parkes' view made also a deep impression on him; and yet another factor should not be altogether overlooked which contributed its share in bringing the two responsible officials to a definite decision. It was not an unknown phenomenon in public life that two functionaries whose co-operation was essential should mistrust each other. This was distinctly the case with Sir John Bowring and Sir Michael Seymour. They needed some connecting medium to make them mutually intelligible, and it was found in the influence of local public opinion. The mercantile community, which for twenty years, or as long as they had had utterance, had never wavered in the conviction that in strength alone lay their safety, were to a man for vigorous measures at Canton. And it happened that, scarcely perceived either by themselves or by the other parties concerned, they possessed a special channel for bringing the force of their views to bear on the two responsible men. Sir John Bowring had himself deplored "the enormous influence wielded by the great and opulent commercial houses" when adverse to his projects. He was now to experience that influence in another sense, without perhaps recognising it, for when the wind is fair it makes slight impression on those whose sails it fills.

Among the business houses in China two stood pre-eminent. One had a son of the plenipotentiary for partner; both were noted for their princely hospitality, especially to officers of the navy. "Those princely merchants, Dent & Co., as well as Matheson," writes Admiral Keppel in his Diary, "kept open house. They lived in palaces." One of the two buildings occupied by the former firm, "Kiying House," which some twenty years later became the Hongkong Hotel, was as good as a naval club for all ranks, while admirals and post-captains found snug anchorage within the adjoining domain of the seniors of the firm. The two great houses did not always pull together, but on this occasion their separate action, converging on a single point, was more effectual than any half-hearted combination could have been. Night after night was the question of Canton discussed with slow deliberation and accumulating emphasis in the executive and the administrative, the naval and the political, camps respectively. Conviction was imbibed with the claret and cheroots, and it was not altogether without reason that what followed has sometimes been called the "Merchants' War."

The die was cast. The great Canton bubble, the bugbear of a succession of British Governments and representatives, was at last to be pricked, though with a delay which, however regrettable at the time, perhaps conduced to greater thoroughness in the long-run. Those of our readers who desire to trace the various operations against Canton during the twelve months which followed cannot do better than consult Mr Stanley Lane-Poole's 'Life of Sir Harry Parkes,' the volume of 'Times' correspondence by that sage observer and vivacious narrator, Mr Wingrove Cooke, and the delightful sailors book recently published by Vice-Admiral Sir W. R. Kennedy. The campaign unfolded itself in a drama of surprises. The force at the admiral's disposal being too small to follow up the initial movement against the city, which gave no sign of yielding by first intention, Sir Michael Seymour had to content himself with intimating to the Viceroy Yeh that, notwithstanding his Excellency's interdict, he had, with a guard of bluejackets, visited the Viceregal Yamên; and with keeping hostilities alive by a blockade of the river while awaiting reinforcements.

The Arrow incident occurred in October. In December the foreign factories were burned by the Chinese, and the Viceroy Yeh issued proclamations offering rewards for English heads. The mercantile community retired to Hongkong, a few to the quieter retreat of Macao. The vengeance of Commissioner Yeh pursued them exactly as that of Commissioner Lin had done in 1839. Assassinations were not infrequent on the outskirts of the city of Victoria; and in January 1857 the principal baker in the colony was induced to put a sack of arsenic into his morning supply of bread, which only failed of its effect through the excess of the dose acting as an emetic.

The early portion of the year 1857 was enlivened by active operations in hunting out Chinese war-junks in the various creeks and branches of the river, commenced by Commodore Elliot and continued on a brilliant scale by Commodore H. Keppel, who arrived opportunely in the frigate Raleigh, of which he speaks with so much pride and affection in his Memoirs. That fine vessel, however, was lost on a rock approaching Macao, sinking in shallow water in the act of saluting the French flag, a war vessel of that nationality having been descried in the anchorage. The commodore and his officers and crew, thus detached, were soon accommodated with small craft good for river service, and in a very short time they made a memorable cutting-out expedition as far as the city of Fatshan, destroying formidable and well-posted fleets of war-junks in what the commodore described as "one of the prettiest boat actions recorded in naval history." Sir W. Kennedy served as a midshipman in those expeditions, and his descriptions supply a much-needed supplement to that of the Admiral of the Fleet, correcting it in some particulars and filling in the gaps in a wonderfully realistic manner. No adequate estimate can be formed of the importance of the year's operations in the Canton river without reading Admiral Kennedy's brilliant but simple story.

The Canton imbroglio made the kind of impression that such occurrences are apt to do in England. The merits of the case being usually ignored, the bare incidents furnish convenient weapons with which to assail the Government that happens to be in office. Under such conditions statements can be made and arguments applied with all the freedom of a debating club. The Arrow trouble occasioned a temporary fusion of the most incongruous elements in English politics. When Lord Derby, Lord Lyndhurst, Bishop Wilberforce, Mr Cobden, Mr Bright, Mr Gladstone, and Mr Disraeli were found banded together as one man, it was neither common knowledge nor any sincere interest in the question at issue, but "unanimosity" towards the Premier, that inspired them. The Opposition orators took their brief from the published despatches of Commissioner Yeh, which they assumed as the starting-point of the China question, and found no difficulty whatever in discovering all the nobility and good faith on the Chinese side, the perfidy and brutality on the side of the British representative. Though successful in carrying a vote of censure on the Government, the attitude of the Coalition did not impress the public, and Lord Palmerston's appeal to the electorate was responded to by his being returned to power by a large majority.

How very little the question itself affected public men in England may be inferred from the notices of it in the Memoirs, since published, of leading statesmen of the period. The fate of China, or of British commerce there, was not in their minds at all, their horizon being bounded by the immediate fate of the Ministry, to them the be-all and end-all of national policy. What deplorable consequences all over the world have arisen from the insouciance of British statesmen as regards all matters outside the arena of their party conflicts!

Sir John Bowring was made the scapegoat of the war. A philosophical Radical, he had been president of the Peace Society, and his quondam friends could not forgive a doctrinaire who yielded to the stern logic of facts. As consul at Canton he had had better opportunities of studying the question of intercourse with the Chinese than any holder of his office either before or since his time. No one had worked more persistently for the exercise of the right of entry into Canton. Superseded in the office of plenipotentiary by the appointment of the Earl of Elgin as High Commissioner for Great Britain, Sir John Bowring remained Governor of Hongkong, and it fell to him to "do the honours" to his successor, from whom he received scant consideration. Indeed Lord Elgin made no secret of his aversion to the colony and all its concerns, and marked his feeling towards the governor by determining that he should never see the city of Canton—that Promised Land so soon to be opened to the world through Sir John's instrumentality.