JOINT-STOCK COMPANIES 819 The Company were able to limit the quantity of tea imported wi and thus to control the price. The method of sale had been defined by the Act of 1784, when it was determined that the Company should, four times a year, put up for auction a quantity of tea, which they supposed would meet but the the demand. The upset price was to be such as would gras defray the prime cost, freight, etc. The Company however Cine calculated these various items on a system which gave rise to much complaint. It was held that, if they pushed the sale of English manufactures in China, they cculd procure the goods on far cheaper terms, that their charges for freight were excessive, and that their costly establishments were an un- necessary burden. The merchants pointed out that the price of tea in Hamburg was about half of that paid at the East India auctions in London; but the Company retorted that the critics took no account of the difference of quality. The interest of the English consumers prevailed, however, against a privileged body of traders; and the China trade was thrown open in 1833. The difficulties which have been found since that time, in maintaining satisfactory political relations with the Chinese authorities, and in affording protection to and exercising authority over European traders, have been very great: it may at least be doubted whether the old method of trading, through an exclusive company, was not after all well adapted bo the circumstances of the country. Till 1838 all trade be- i PO bween the Chinese and the outside world had been carried 18:3. on through the agency of a corporation of native merchants known as the Co-hong, who seem to have exercised the same sort of privileges which were formerly bestowed on Gilds merchant. They were responsible for one another's debts, an arrangement which enabled some of them to trade recklessly on credit, and caused frequent difficulty; and a Hongist was responsible for the good behaviour of each foreign merchant ®, An exclusive mercantile company, like the East India Com- and the pany, was organised on lines which they understood ; but the ment of ; -am well-order- Chinese had no respect for the civilisation, or powers, of ed trade European States. The policy of the East India Company, Tyo, the 1 J. F. Davis, The Chinese (1840), 46. 3 Ib. 47, 60. 52.9