LOAN SOCIETIES
In a country where money is only obtainable at such an exorbitant rate of interest as in China, it is but natural that some attempt should be made to obviate the necessity of appealing to a professional money-lender. Three per cent. per month is the maximum rate permitted by Chinese law, which cannot be regarded as excessive if the full risk of the lender is taken into consideration. He has the security of one or more "middlemen," generally shopkeepers whose solvency is unimpeachable; but these gentlemen may, and often do, repudiate their liability without deigning to explain either why or wherefore. His course is then not so plain as it ought to be under a system of government which has had some two thousand years to mature. Creditors as well as debtors shun the painted portals of the magistrate's yamen[*] as they would the gates of hell. Above them is traced the same desperate legend that frightened the soul of Dante when he stood before the entrance to the infernal regions. Truly there is no hope for those who enter here. Both sides are squeezed by the gate-keeper —a very lucrative post in all yamens—before they are allowed to present their petitions. It then becomes necessary for plaintiff and defendant alike to go through the process of (in Peking slang) "making a slit," i.e., making a present of money to the magistrate and his subordinates proportionate to the interests involved. In many yamens there is a regular scale of charges, answering to our Table of Fees, but this is almost always exceeded in practice. The case is then heard: occasionally, on its merits. We say occasionally, because nine times out of ten one of the parties bids privately for the benefit of his honour's good opinions. Sometimes both suitors do this, and then judgment is knocked down to the highest bidder. The loser departs incontinently cursing the law and its myrmidons to the very top of his bent, and perhaps meditating an appeal to a higher court, from which he is only deterred by prospects of further expense and repeated failure. As to the successful litigant, he would go on his way rejoicing, but that he has a duty to perform before which he is not a free man. The "slit" he made on entering the yamen needs to be repaired, and on him devolves the necessity of "sewing it up." The case is then at an end, and the prophecy fulfilled, which says:—
"The yamen doors are open wide
To those with money on their side."
[*] Official and private residence, all in one.
Wiser and more determined creditors take the law into their own hands. With a tea-pot, a pipe, and a mattress, they proceed to the shop of the recalcitrant debtor or security as circumstances may dictate, and there take up their abode until the amount is paid. If inability to meet the debt has been pleaded, then this self-made bailiff will insist on taking so much per cent. out of the daily receipts; if it is a mere case of obstinacy, a desire to shirk a just responsibility, the place is made so hot for its owner that he is glad to get rid of his visitor at any price whatever. Were manual violence resorted to, the interference of the local officials would be absolutely necessary; and in all cases where personal injuries are an element, their action is not characterised by the same tyranny and corruption as where only property is at stake. The chances are that the aggressor would come off worst.
To protect themselves, however, from such a prohibitive rate of usury as that mentioned above, Chinese merchants are in the habit of combining together and forming what are called Loan Societies for the mutual benefit of all concerned. Such a society may be started in the first instance by a deposit of so much per member, which sum, in the absence of a volunteer, is handed over to a manager, elected by a throw of dice, whose business it is to lay out the money during the ensuing month to the best possible advantage. Frequently one of the members, being himself in want of funds, will undertake the job; and he, in common with all managers, is held responsible for the safety of the loan. At the end of the month there is a meeting at which the past manager is bound to produce the entire sum entrusted to his charge, together with any profits that may have accrued meanwhile. Another member volunteers, or is elected manager, and so the thing goes on, a running fund from which any member may borrow, paying interest at a very low rate indeed. Dividends are never declared, and consequently some of these clubs are enormously rich; but any member is at liberty to withdraw whenever he likes, and he takes with him his share of all moneys in the hands of the Society at the moment of his retirement. To outsiders, the market rate of interest is charged, or perhaps a trifle less, but loans are only made upon the very best securities.
GUILDS
In every large Chinese city are to be found several spacious buildings which are generally reckoned among the sights of the place, and are known by foreigners under the name of guilds. Globe-trotters visit them, and admire the maximum of gold-leaf crowded into the minimum of space, their huge idols, and curious carving; of course passing over those relics which the natives themselves prize most highly, namely, sketches and scrolls painted or written by the hand of some departed celebrity. Foreign merchants regard them with a certain amount of awe, for they are often made to feel keenly enough the influence which these institutions exert over every branch of trade. They come into being in the following manner. If traders from any given province muster in sufficient numbers at any of the great centres of commerce, they club together and form a guild. A general subscription is first levied, land is bought, and the necessary building is erected. Regulations are then drawn up, and the tariff on goods is fixed, from which the institution is to derive its future revenue. For all the staples of trade there are usually separate guilds, mixed establishments being comparatively rare. It is the business of the members as a body to see that each individual contributes according to the amount of merchandise which passes through his hands, and the books of suspected defaulters are often examined at a moment's notice and without previous warning. The guild protects its constituents from commercial frauds by threatening the accused with legal proceedings which an individual plaintiff would never have dared to suggest; and the threat is no vain one when a mandarin, however tyrannical and rapacious, finds himself opposed by a body of united and resolute men. On the other hand, these guilds deal fairly enough with their own members, and not only refuse to support a bad case, but insist on just and equitable dealings with the outside world. To them are frequently referred questions involving nice points of law or custom, and one of the chief functions of a guild is that of a court of arbitration. In addition to this they fix the market rates of all kinds of produce, and woe be to any one who dares to undersell or otherwise disobey the injunctions of the guild. If recalcitrant, he is expelled at once from the fraternity, and should his hour of need arrive he will find no helping hand stretched out to save him from the clutches of the law. But if he acknowledges, as he almost always does, his breach of faith, he is punished according to the printed rules of the corporation. On a large strip of red paper his name and address are written, the offence of which he has been convicted, and the fine which the guild has determined to impose. This latter generally takes the form of a dinner to all members, to be held on some appointed day and accompanied by a theatrical entertainment, after which the erring brother is admitted as before to the enjoyment of those rights and privileges he would otherwise infallibly have lost.
On certain occasions, such as the birthday of a patron saint, the guild spends large sums from the public purse in providing a banquet for its members and hiring a theatrical troupe, with their everlasting tom-toms, to perform on the permanent stage to be found in every one of these establishments. The Anhui men celebrate the birthday of Chu Hsi, the great commentator, whose scholarship has won eternal honours for his native province; Swatow men hold high festival in memory of Han Wen-Kung, whose name is among the brightest on the page of Chinese history. All day long the fun goes on, and as soon as it begins to grow dusk innumerable paper lanterns are hung in festoons over the whole building. The crowd increases, farce succeeds farce without a moment's interval, and many a kettle of steaming wine warms up the spectators to the proper pitch of enthusiasm and delight. Before midnight the last song has been sung, a considerable number of people have quietly dispersed without accident of any kind, and the courtyard of the guild is once more deserted and still.
It is open to any trader to join the particular institution which represents his own province or trade without being either proposed, seconded, or balloted for. He is expected to make some present to the resources of the guild, in the shape of a new set of glass lanterns, a pair of valuable scrolls, some new tables, chairs, or in fact anything that may be needed for either use or ornament. Should he be in want of money, a loan will generally be issued to him even on doubtful security. Should he die in an impoverished condition, a coffin is always provided, the expenses of burial undertaken, and his wife and children sent to their distant home, with money voted for that purpose at a general meeting of the members. Were it not for the action of these guilds in regard to fire, life and property in Chinese cities would be more in danger than is now the case. Each one has its own fire-engine, which is brought out at the first alarm, no matter where or whose the building attacked. If belonging to one of themselves, men are posted round the scene of the conflagration to prevent looting on the part of the crowd, and the efforts of the brigade are stimulated by the reflection that their position and that of the present sufferers may at any moment be reversed. Picked men are appointed to perform the most important task of all, that of rescuing from the flames relics more precious to a respectable Chinaman than all the jade that K'un-kang has produced. For it often happens that an obstructive geomancer will reject site after site for the interment of some deceased relative, or perhaps that the day fixed upon as a lucky one for the ceremony of burial may be several months after death. Meanwhile a fire breaks out in the house where the body lies in its massive, air-tight coffin, and all is confusion and uproar. The first thought is for the corpse; but who is to lift such a heavy weight and carry it to a place of safety without the dreaded jolting, almost as painful to the survivors as would be cremation itself? Such harrowing thoughts are usually cut short by the entrance of six or eight sturdy men from the nearest guild, who, armed with the necessary ropes and poles, bear away the coffin through flame and smoke with the utmost gentleness and care.