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As mentioned in the introduction, the establishment of the Co-hong, in 1760, traditionally has been seen by historians as a monopolistic organization that forced itself on the trade, with the objective of hindering and restricting competition and commerce. If restricting trade was truly the Co-hong’s objective, how is it that the opposite happened? Trade was not hindered; output grew each year; and foreigners were not discouraged from going to China. Clearly, there is something missing from the story. Appendix 3D shows the Hong merchants who were active before and after the establishment of the Co-hong in 1760. Of the 17 houses that were active before the Co-hong, only seven have had partial histories written about them, and, of the remaining ten houses, we previously had little or no information. The present study (including this volume and subsequent volume) has expanded the coverage to 16 out of 17 houses, and it has added much new information to the stories of the other seven houses. With this new information comes a new picture of what the Co-hong was all about. The story begins in the 1740s. In the early 1740s, the junk trade to Batavia suddenly was brought to an end for a couple years, owing to the Chinese massacre. This matter will be discussed in more detail in the next chapter, but it is important to note here that it was not just foreign trade that experienced ups and downs. The disruption in the junk trade would have impacted some of the merchants in Canton. It weakened them and made them more vulnerable to fluctuations and changes in the European and Indian foreign trade. In the l740s and 1750s, the foreign export trade was suffering, but more from its own success than from failure. Table 3.1 shows the growth in terms of ship tonnages from the 1730s to the end of the 1760s. We know that most foreign ships completely emptied their hulls and then loaded to full capacity with Chinese wares. Consequently, the tonnages of these vessels are a fairly reliable estimate of the volume of trade. C H A P T E R T H R E E  GROWING PAINS, PARTNERSHIPS, AND THE CO-HONG Paul_03_ch03.indd 49 Paul_03_ch03.indd 49 11年9月8日 下午2:24 11年9月8日 下午2:24 50 Merchants of Canton and Macao Table 3.1 Growth of Trade from 1730s to 1760s1 Years Total tonnage Percentage change from previous decade Percentage change from 1730s 1730–1739 53,738 1740–1749 95,548 +78 +78 1750–1759 128,330 +34 +139 1760–1769 148,471 +16 +176 There were many ups and downs in the trade sector, with some years experiencing 60 percent increases or decreases from the year before. As Table 3.1 shows, the general trend from one decade to the next was one of expansion. These figures, of course, also represent the expansion of inland production. But the figures do not necessarily represent an expansion in an individual merchant’s trade. In years when there was much less volume than expected, competition was intense, resulting in some merchants being suppressed and others pushed out. With 20 to 30 houses handling most of the foreign trade from the 1730s to the 1750s, there was no room for passivity. In the years when more ships arrived, competition was still intense because merchants had to make up for inactivity in previous years. Because there was no way to predict the number of ships that would arrive each year, inland producers were reluctant to expand production. Hong merchants were likewise reluctant to stock up on inventories. Supercargo Charles Irvine of the Swedish East India Company was in China from 1745 to 1747 and reported how damaging it could be to merchants when there was a drop in trade. 1746, Jan 16: No Swedish ships have appear’d here [Canton] this season [1745]; & that there are 2 Eng[lish] and one Danish ship (the Crown Prince) likewise missing.2 1747, Jan 26: Last year [1745] the [Chinese] merchants of all ranks were great loosers for want of ships & this year [1746] has been still heavier on the top men (all but Shouqua) by too many ships arriving very late. You will no doubt be inform’d more particularly by other hands whose business it is as well as by your friends here [Canton].3 Five additional ships were expected in 1745 (two Swedish, two English and one Danish), but failed to arrive...

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