AT the very time that the Emperor Taoukwang, by the dismissal of the Portuguese astronomers at Pekin and by his general indifference to the foreign question, was showing that no concessions were to be expected from him, an unknown legislature at a remote distance from his capital was decreeing, in complete indifference to the susceptibilities of the occupant of the Dragon Throne, that trade with China might be pursued by any English subject. Up to the year 1834 trade with China had, by the royal charter, remained the monopoly of the East India Company; but when the charter was renewed in that year for a further period of twenty years, it was shorn of the last of its commercial privileges, and an immediate change became perceptible in the situation at Canton, which was the principal seat of the foreign trade. The withdrawal of the monopoly was dictated solely by English, and not Chinese, considerations. Far from facilitating trade with the Chinese, it tended to hinder and prevent its developing; for the Chinese officials had no objection to foreigners coming to Canton, and buying or selling articles of commerce, so long as they derived personal profit from the trade, and so long as the laws of the empire were not disputed or violated. The servants of the East India Company were content to adapt themselves to this view, and they might have carried on relations with the Hong merchants for an indefinite period, and without any more serious collision than occasional interruptions. Had the monopoly been renewed things would have been left in precisely the same position as when intercourse was first established, and trade might have continued within its old restricted limits. But the abolition of the monopoly and the opening of the trade created quite a new situation, and by intensifying the opposition of the Chinese government, paved the way to the only practicable solution of the question of foreign intercourse with China, which was that, however reluctantly she should consent to take her place in the family of nations.

The Chinese were not left long in doubt as to the significance of this change. In December, 1833, a royal commission was issued appointing Lord Napier chief superintendent of trade with China, and two assistants under him, of whom one was Sir John Davis. The Chinese had to some extent contributed to this appointment, the Hoppo at Canton having written that "in case of the dissolution of the Company it was incumbent on the British government to appoint a chief to come to Canton for the general management of commercial dealings, and to prevent affairs from going to confusion." But in this message the Hoppo seems to have expressed his own view rather than that of the Pekin government or the Canton viceroy; and certainly none of the Chinese were prepared to find substituted for "a chief of commercial dealings" an important commissioner clothed with all the authority of the British ruler. How very different was the idea formed of this functionary by the Chinese and English may be gathered from their official views of his work. What the Chinese thought has been told in the words of the Hoppo. Lord Palmerston was more precise from his point of view. His instruction to Lord Napier read, "Your lordship will announce your arrival at Canton by letter to the viceroy. In addition to the duty of protecting and fostering the trade at Canton, it will be one of your principal objects to ascertain whether it may not be practicable to extend that trade to other parts of the Chinese dominions. It is obvious that, with a view to the attainment of this object, the establishment of direct communication with the imperial court at Pekin would be most desirable." The two points of radical disagreement between these views were that the Chinese wished to deal with an official who thought exclusively of trade, whereas Lord Napier's task was not less diplomatic than commercial; and, secondly, that they expected him to carry on his business with the Hoppo, as the Company's agents had done, while Lord Napier was specially instructed to communicate with the viceroy, whom those agents had never dared to approach.

If it was thought that the Chinese would not realize all the significance of the change, those who held so slight an opinion of their clear- headedness were quickly undeceived. Lord Napier reached the Canton River in July, 1834, and he at once addressed a letter of courtesy to the viceroy announcing his arrival. The Chinese officers, after perusing it, refused to forward it to the viceroy, and returned it to Lord Napier. Such was the inauspicious commencement of the assumption of responsibility by the crown in China. The Chinese refused to have anything to do with Lord Napier, whom they described as "a barbarian eye," and they threatened the merchants with the immediate suspension of the trade. The viceroy issued an order forbidding the new superintendent to proceed to Canton, and commanding him to stay at Macao until he had applied in the prescribed form for permission to proceed up the river. But Lord Napier did not listen to these representations, nor did he condescend to delay his progress a moment at Macao. He proceeded up the river to Canton, but, although he succeeded in making his way to the English factory, it was only to find himself isolated, and that, in accordance with the viceroy's order, the Hoppo had interdicted all intercourse with the English. The Chinese declared that the national dignity was at stake, and so thoroughly did both officials and merchants harmonize that the English factory was at once deserted by all Chinese subjects, and even the servants left their employment. On his arrival at Canton, Lord Napier found himself confronted with the position that the Chinese authorities refused to have anything to do with him, and that his presence effectually debarred his countrymen from carrying on the trade, which it was his first duty to promote. At this conjuncture it happened that the Chinese had discovered what they thought to be a new grievance against the foreign traders in the steady efflux of silver as the natural consequence of the balance of trade being against China. In a report to the throne in 1833 it was stated that as much as 60,000,000 taels of silver, or $100,000,000, had been exported from China in the previous eleven years, and, as the Chinese of course made no allowance for the equivalent value imported into their country, this total seemed in their eyes an incredibly large sum to be lost from the national treasure. It will be easily understood that at this particular moment the foreign trade appeared to possess few advantages, and found few patrons among the Chinese people.

In meeting this opposition Lord Napier endeavored to combine courtesy and firmness. He wrote courteous and argumentative letters to the mandarins, combating their views, and insisting on his rights as a diplomatist to be received by the officials of the empire; and at the same time he issued a notice to the Chinese merchants which was full of threats and defiance. "The merchants of Great Britain," he said, "wish to trade with all China on principles of mutual benefit; they will never relax in their exertions till they gain a point of equal importance to both countries, and the viceroy will find it as easy to stop the current of the Canton River as to carry into effect the insane determinations of the Hong." This notice was naturally enough interpreted as a defiance by the viceroy, who placed the most severe restrictions he could on the trade, sent his troops into the foreign settlements to remove all Chinese servants, and ordered the Bogue forts to fire on any English ship that attempted to pass. The English merchants, alarmed at the situation, petitioned Lord Napier to allay the storm he had raised by retiring from Canton to Macao, and, harassed in mind and enfeebled in body, Lord Napier acquiesced in an arrangement that stultified all his former proceedings. The Chinese were naturally intoxicated by their triumph, which vindicated their principle that no English merchant or emissary should be allowed to come to Canton except by the viceroy's permit, granted only to the petition and on the guarantee of the Hong merchants. The viceroy had also carried his point of holding no intercourse with the English envoy, to whom he had written that "the great ministers of the Celestial Empire, unless with regard to affairs of going to court and carrying tribute, or in consequence of imperial commands, are not permitted to have interviews with outside barbarians." While the Chinese officials had been both consistent and successful, the new English superintendent of trade had been both inconsistent and discomfited. He had attempted to carry matters with a high hand and to coerce the mandarins, and he was compelled to show in the most public manner that he had failed by his retirement to Macao. He had even imperiled the continuance of the trade which he had come specially to promote, and all he could do to show his indignation was to make a futile protest against "this act of unprecedented tyranny and injustice." Very soon after Lord Napier's return to Macao he died, leaving to other hands the settlement of the difficult affair which neither his acts nor his language had simplified.

On Lord Napier's departure from Canton the restrictions placed on trade were removed, and the intercourse between the English and Chinese merchants of the Hong was resumed. But even then the mandarins refused to recognize the trade superintendents, and after a short time they issued certain regulations which had been specially submitted to and approved by the Emperor Taoukwang as the basis on which trade was to be conducted. These Regulations, eight in number, forbade foreign men-of-war to enter the inner seas, and enforced the old practice that all requests on the part of Europeans should be addressed through the Hong in the form of a petition. It therefore looked as if the Chinese had completely triumphed in carrying out their views, that the transfer of authority from the East India Company to the British crown, with the so-called opening of the trade, had effected no change in the situation, and that such commerce as was carried on should be as the Chinese dictated, and in accordance with their main idea, which was to "prevent the English establishing themselves permanently at Canton." The death of the Viceroy Loo and the familiarity resulting from increased intercourse resulted in some relaxation of these severe regulations, and at last, in March, 1837, nearly three years after Lord Napier's arrival in the Bogue, the new superintendent of trade, Captain Elliot, received, at his own request, permission through the Hong to proceed to Canton. The emperor passed a special edict authorizing Captain Elliot to reside in the factory at Canton, where he was to "control the merchants and seamen"; but it was also stipulated that he was to strictly abide by the old regulations, and not to rank above a supercargo. As Captain Elliot was the representative of a government not less proud or exacting than that of China, it was clear that these conditions could not be permanently enforced; and although he endeavored for a period to conciliate the Chinese and to obtain more favorable terms by concessions, there came a time when it was impossible to assent to the arrogant demands of the mandarins, and when resort became necessary to the ultima ratio regum. But for the first two critical years Captain Elliot pursued the same policy as Lord Napier, alternating concessions with threats, and, while vaunting the majesty of his sovereign, yielding to demands which were unreasonable and not to be endured.

The balance of trade against China was the principal cause of the export of silver, and the balance of trade was only against China through the increasing import of opium. Without acquiescing in the least with the strong allegations of the anti-opium party, there is no reason to doubt that the excessive use of opium, especially in a crowded city like Canton, was attended with sufficient mischief to justify its official denunciation. The Pekin government may be so far credited with the honest intention to reduce the mischief and to prevent a bad habit from becoming more and more of a national vice, when they determined for far other reasons to place it in the front of their tirade against foreign trade generally. They soon found that it would be more convenient and more plausible to substitute the moral opposition to the opium traffic for the political disinclination to foreign intercourse in any form. They scarcely expected that in this project they would receive the assistance and co- operation of many of the Europeans themselves, who shared with them the opinion that opium was detestable, and its use or sale a mark of depravity.

In January, 1839, Taoukwang ordered Lin Tsihseu, viceroy of the double province of Houkwang and an official of high reputation, to proceed to Canton as Special Commissioner to report on the situation, and to propound the best remedy for the opium evil. At this moment the anti-opium party was supreme in the imperial council, and three Manchu princes were disgraced and banished from Pekin for indulging in the practice. The peremptory instructions given to Commissioner Lin, as he is historically known, were "to cut off the fountain of evil, and, if necessary for the attainment of his object, to sink his ships and break his caldrons, for the indignation of the great emperor has been fairly aroused at these wicked practices—of buying and selling and using opium—and that the hourly thought of his heart is to do away with them forever."

Before Lin reached Canton there had been frequent friction between Captain Elliot and the local mandarins, and more than one interruption of the trade. Less than six months after his installation at Canton his official relations were broken off, and he wrote home to his government a dispatch complaining of the difficulty of conducting any sort of amicable relations with the local mandarins, and indorsing the growing demand for the right of dealing direct with the Pekin government. Captain Elliot, acting under instructions from home, issued a public notice warning all English subjects to discontinue the illicit opium trade, and stating that "her Majesty's Government would not in any way interfere if the Chinese Government should think fit to seize and confiscate the same."

At this juncture Commissioner Lin, whose fervor and energy carried him away, appeared upon the scene, and, whereas a less capable or honest man would have come to an arrangement with Captain Elliot, his very ability and enthusiasm tended to complicate the situation and render a pacific solution unattainable. Commissioner Lin, on taking up his post, lost no time in showing that he was terribly in earnest; but both his language and his acts proved that he had a very much larger programme than was included in his propaganda against the opium traffic. He wished to achieve the complete humiliation of the foreigners, and nothing less would satisfy him. Within a week of his arrival at Canton he issued an edict denouncing the opium trade; throwing all the blame for it on the English, and asserting what was absolutely untrue; viz., that "the laws of England prohibited the smoking of opium, and adjudged the user to death." The language of the edict was unfriendly and offensive. The Europeans were stigmatized as a barbarous people, who thought only of trade and of making their way by stealth into the Flowery Land. At the same time that he issued this edict he gave peremptory orders that no foreigner was to leave Canton or Macao until the opium question had been settled to his satisfaction. Even then English merchants and officials, who felt no great sympathy with the opium traffic, saw that these proceedings indicated an intention to put down the trade in other articles, and to render the position of foreigners untenable. Lin's demands culminated in the request for all stores of opium to be surrendered to him within three days. By the efforts of some of the merchants about a thousand chests were collected and handed over to the Chinese for destruction; but this did not satisfy Lin, who collected a large rabble force, encamped it outside the settlement, and threatened to carry the place by storm. In this crisis Captain Elliot, who had declared that his confidence in the justice and good faith of the provincial government was destroyed, and who had even drawn up a scheme for concentrating all his forces at Hongkong, called upon all the English merchants to surrender to him, for paramount considerations of the lives and property of every one concerned, all the stores of opium in their possession. More than 20,000 chests, of an estimated value of $10,000,000, were placed at his disposal, and in due course handed over by him to Commissioner Lin for destruction. This task was performed at Chuenpee, when the opium was placed in trenches, then mixed with salt and lime, and finally poured off into the sea. After this very considerable triumph, Lin wrote a letter to Queen Victoria—whose reign has witnessed the most critical periods of the China question and its satisfactory settlement—calling upon her Majesty to interdict the trade in opium forever. The letter was as offensive in its tone as it was weak in argument, and no answer was vouchsafed to it. Before any reply could be given, the situation, moreover, had developed into one of open hostilities.

But great as were the concessions made by Captain Elliot, in consequence of the threatening attitude of Commissioner Lin, the Chinese were not satisfied, and made fresh and more exacting demands of those who had been weak enough to make any concession at all. They reasserted their old pretension that Europeans in China must be subject to her laws, and as the sale of opium was a penal offense they claimed the right to punish those Englishmen who had been connected with the traffic. They accordingly drew up a list of sixteen of the principal merchants, some of whom had never had anything to do with opium, and they announced their intention to arrest them and to punish them with death. Not only did Commissioner Lin and the Canton authorities claim the right to condemn and punish British subjects, but they showed in the most insolent manner that they would take away their liberty and lives on the flimsiest and falsest pretext. Captain Elliot, weak and yielding as he was on many points, declared that "this law is incompatible with safe or honorable continuance at Canton." Apparently the Chinese authorities acted on the assumption that so long as there remained even one offending European the mass of his countrymen ought to be hindered in their avocations, and consequently petty restrictions and provocations continued to be enforced. Then Captain Elliot, seeing that the situation was hopeless and that there was no sign of improvement, took the bold, or at least the pronounced, step of ordering all British subjects to leave Canton or to stay at their own peril. It was on this occasion that he explained away, or put a new interpretation on, his action with regard to the opium surrendered for destruction, which most of the merchants thought represented an irrecoverable loss. It will be best to give the precise words used in his notice of the 22d of May, 1839. "Acting on behalf of her Majesty's Government in a momentous emergency, he has, in the first place, to signify that the demand he recently made to her Majesty's subjects for the surrender of British-owned opium under their control had no special reference to the circumstances of that property; but (beyond the actual pressure of necessity) that demand was founded on the principle that these violent compulsory measures being utterly unjust per se and of general application for the enforced surrender of any other property, or of human life, or for the constraint of any unsuitable terms or concessions, it became highly necessary to vest and leave the right of exacting effectual security and full indemnity for every loss directly in the queen." Unfortunately, Captain Elliot's language at the time of the surrender of the opium had undoubtedly led to the conclusion that he sympathized with Commissioner Lin, and that he took the same view as the Chinese officials of the moral iniquity of selling or using opium. The whole mercantile community adopted Captain Elliot's counsel, and the English factory at Canton, which had existed for nearly two hundred years, was abandoned. At the same time a memorial was sent home begging the government to protect the English merchants in China against "a capricious and corrupt government," and demanding compensation for the $10,000,000 worth of opium destroyed by Commissioner Lin. Pending the reply of the home government to that appeal, nothing could be more complete than the triumph of Commissioner Lin. The Emperor Taoukwang rewarded him with the important viceroyship of the Two Kiang, the seat of which administration is at Nankin.