THE SECOND CONSULAR RESIDENCE AT FOOCHOW, 1848.

CHAPTER IX.
SHANGHAI.

Shanghai—Importance of its situation—Consul Balfour—Germ of municipal institutions—The foreign settlements—Confidence and civility of the natives—Alcock appointed consul, 1846—Excursions into the country—Their limitations—Responsibilities of consuls.

Of the four new ports, Shanghai, by far the most important, had been fortunate in the selection of its first consul. This was Captain George Balfour of the Madras Artillery, who, like a wise master-builder, laid the foundations of what is now one of the greatest emporia in the world. Captain Balfour had managed the beginnings of the settlement so judiciously that the merchants enjoyed the fullest facilities for prosecuting their business, while the consul maintained good relations with the native authorities and no hostile feeling existed between the foreign and native communities. The circumstances of the place were favourable to all this: the foreign residents were not, as at Canton, confined to a narrow space; they had abundance of elbow-room and perfect freedom of movement in the surrounding district, which was well provided with footpaths and an excellent system of waterways. The people of that part of the country are of a peaceable and rather timid disposition. Altogether, a healthy condition of things had grown up, there seemed to be no grievance felt on either side, while the material prosperity of the natives rapidly increased as a result of a great and expanding foreign trade, to which they had never been accustomed. The regulation of business accommodation and residence was very simple and worked automatically. A certain area, ample for every purpose that could be foreseen, was set apart by the Chinese Government for the residence of foreigners, the location having been indicated by Sir Henry Pottinger on his way from Nanking after the signing of the treaty. The rights of the native proprietors were in no way interfered with, the merchants and others who desired to settle were at liberty to deal with the natives for the purchase of building lots, and as the prices paid were so much above the normal value of the land there was no essential difficulty in effecting purchases. But there being so many interested parties, several years elapsed before the whole area had passed into the possession of foreign occupants. The land remained the property of the Crown, held under perpetual lease, subject only to a small ground-rent, which was collected through the consulates, as at this day. Roads were gradually marked out and jetties for boats were built on the river frontage, and what is now a municipal council served by a large secretarial staff and an imposing body of police, and handling a budget amounting to £130,000, came into existence under the modest title of a "Committee for Roads and Jetties." In the beginning there seems to have been an idea of forming separate reservations of land for the subjects of the three treaty Powers—Great Britain, France, and the United States; but the exigencies of business soon effaced the theoretical distinction as between England and America, whose separate ideal settlements were merged for all practical purposes into one cosmopolitan colony, in which the Powers coming later on the scene enjoyed the same rights as the original pioneers.