The purchases of the East India Company were divided amongst the Hong merchants proportionately, in shares, of which fourteen fell to the lot of Houqua.
The position of Hong merchant was obtained through the payment of large sums of money at Pekin. I have heard of as much as 200,000 taels, say 55,000l. sterling. If the 'license' thus acquired was costly, it secured to them uninterrupted and extraordinary pecuniary advantages; but, on the other hand, it subjected them to calls or 'squeezes' for contributions to public works or buildings, for the relief of districts suffering from a scarcity of rice, as well as for the often imaginary or over-estimated damage caused by the overflowing of the 'Yang-tsze-Keang' or the 'Yellow River.'
'Well, Houqua,' you would say on some visit, 'hav got news to-day?' 'Hav got too muchee bad news,' he would reply; 'Hwang Ho hav spilum too muchee' That sounded ominously. 'Man-ta-le[15] hav come see you?' 'He no come see my, he sendee come one piece "chop." He come to-mollo. He wantchee my two-lac[16] dollar.' It was the old complaint, a 'squeeze' and this time a formidable one. 'You pay he how mutchee?' 'My pay he fitty, sikky tousand so.' 'But s'pose he no contentee?' 'S'pose he, No. 1, no contentee, my pay he one lac.' This actual incident will show the sort of demands upon the senior Hong merchant (each one being called upon in his turn) and their pecuniary importance. They knew at the same time that the object of the 'squeeze' was exaggerated, and, even if necessary, that only a modest portion would go to the repairs of the banks of the river, the mandarin thinking that his own personal wants were far more pressing. They might try to parry the question, they might succeed in getting the sum asked for diminished, but they could not escape. Payments would also be made by them to the Hoppo on the occasion of his return to Pekin, on the appointment of a successor, as well as to the chiefs of the Revenue Board in that capital; but such as these had a raison d'être, they secured influence and protection, and besides, the sums paid were voluntary and comparatively moderate in amount.
As it added to their dignity and privileges, the Hong merchants purchased nominal rank, the insignia of which was denoted by a button or coloured globe attached to the apex of the cap. Of this they might be deprived for offences against the law or for bankruptcy; then a wearer of it in local parlance would be 'unbuttoned,' or deprived of this significant emblem of his social and public status.
The occupation of a 'merchant' in China is looked down upon by wealthy landed proprietors, by the literati, and by those who have risen to official rank through their own talents; but bankruptcy is considered degrading and even criminal.
Bankrupts are first deprived of any nominal rank they may possess before being so adjudged by law. Previous to my arrival at Canton one case of a bankrupt Hong merchant had taken place. The penalty for a member of the Co-Hong was transportation to E-Lee. Only one other occurred during the remainder of the period of the existence of the Co-Hong. The last exiled bankrupt was Mān-Hŏ. He had been a general favourite with the foreign community, was a person of courteous manners, and in every respect a well-bred and kindly man. He had borne on his cap the 'blue button' which denoted the third rank—principal—and it gave him the privilege of a certain title on his cards, &c. The books and affairs of his Hong passed into the charge of the Co-Hong for examination, the result proved most unsatisfactory, and when it was laid before the Hoppo he was declared bankrupt, and sentenced to transportation for life to E-Lee (the present Kuldja), on the north-west frontier. It is commonly spoken of by the Canton Chinese as the 'Colo'[17] country. Few know its geographical position. Preparations having been made for his departure, at a moment when some officials were leaving for that remote province, Mān-Hŏ, with other condemned persons, was placed under their charge. The boats, having all these on board, anchored off the Factories. Many of his old Chinese and foreign friends went on board to say goodbye. One of the latter handed him a letter, in which was expressed sympathy for his misfortunes. And it added that a sum of money, subscribed by the Hong merchants and themselves for his personal comfort, had been placed with reliable servants of his own, who were accompanying him of their own accord. Neither the Government nor the Hoppo objects to such aid being rendered by relations and friends to one who by misfortune or bad management has incurred the penalty of the law, if not excessive. In the present case the amount was 10,000 dollars.
In a few hours after, the convoy left on one of the most dreary journeys that can be imagined. It occupied several months, involving constant transhipment to other boats, now over execrable roads in the most comfortless of bamboo chairs, then on pony back, and frequently on foot.
A very long time after his departure we heard, by the return of one of his servants, that Mān-hŏ had been at first set to work as 'sweeper' in a temple, which he was able to compromise into a purely nominal 'office.' Again, that he had managed to get about him sundry comforts, such as E-Lee possessed, which is saying very little. Years passed, when we at once heard of his death and of the arrival of the body at Canton (in charge of the servants who had remained with him) for interment in his native place.
After Mān-hŏ left Canton I saw, in the hands of one of the above foreign contributors, his promissory note for $60,000, bearing interest at 5 per cent. per month. This was not exorbitant, under the circumstances in which it was given. The current rate of interest, with the best security, was 1 per cent. per month on running account, while 2 to 3 per cent. on temporary loans per month was common.
As a body of merchants, we found them honourable and reliable in all their dealings, faithful to their contracts, and large-minded. Their private residences, of which we visited several, were on a vast scale, comprising curiously laid-out gardens, with grottoes and lakes, crossed by carved stone bridges, pathways neatly paved with small stones of various colours forming designs of birds, or fish, or flowers.