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 unnecessary
 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