So much misconception has been displayed on this topic, both in the Press, and among Memorialists to the Foreign Office and H. M.'s Minister, that probably no excuse is needed for any attempt to cause the popular views to approximate a little nearer to the truth. The following remarks are put forth, not as absolutely correct, but in the hope that the contrast they present, to the prevailing vague notions on the subject, may give rise to discussion and enquiry.
In limite, I beg to protest against the use of the term "License" as utterly misleading. iis misleading in two ways first, im leading one to suppose that the fees imposed before the issue of a certain document are imposed as a source of revenue,—second, in making it almost impossible for an Englishman to disabuse his mind of the impression, that a legal prohibition lies against any parties engaging in certain trades without what I have alluded to, above, as a certain document. The result of my enquiries leads me to the opinion, that amore unfortunate expression could hardly have been chosen, as an epithet of the Ya-Hong, than "Licensed."
What are the Ya-Hongs? They are what merchants vaguely allude to by the terms "Silke Hongs," "Tea Hongs," " Cotton Honga," &c. An ides of their status may be gathered from the following description Any substantial trader may be enrolled in the list of "Ya Hongs." The routine to be followed is to present a petition, to the Magistrate of the district, applying to be enrolled as a Ya Hong, naming st the same time two good and sufficient sureties for the petitioner's solvency. The petition reaches the Throne through the usual channels, and thence a rescript is issued, ordering the Provincial Treasurer to grant the prayer of the petition, on payment of the proper fees. The whole expense is generally 20 or 90 taels, rarely as much as Tls. 100. The certificate of enrolment, issued by the Provincial Treasurer, holds good for the petitioner's lifetime, theoretically; praetically it is hereditary, if the descendants carry on the same business under the same Hong name. The certificate has this effect —it renders the holder responsible at law, for the performance of every contract in which he acts, as broker or middleman, and hence, responsible to a seller for the solvent ey of every purchaser whom he recommends and, in compensation for the above, it renders his brokerage (which is sometimes fixed, and sometimes not, in the document) claim which the law will enforce. Among other and minor incidents, the certificate makes the holder a sort of Purveyor to the Court," (or Viceroy as the case may be), as he is expected to supply the article in which he trades, to the Emperor or high authorities when on a tour.
Thecertificatedoes not preclude the holder from trading in the article he is broker for.
And there is no law against any party whatever, setting up as a broker or commission agent, without a certificate, None indeed is required, for an agriculturalist would be foolhardy if he went into the open market with his goods, or entrusted them to other than a Ya Hong, when the law relieves him of all risk and necessity for caus tion. The certificated brokers, too, are not likely to leave an intending seller ignorant of the status of a non-certificated agent. These certificated gentlemen would, naturally enough, desire to have even a greater security of monopoly than their position already allows them. At the time of the great Ewo Bank case in Shanghai, during 1867, an attempt was made, by the Chamber of Commerce, to ascertain how far they could fall in with the views of the silk guild, es to the measures to be taken to place the trade on a footing of greater stability. The silk guild, by their answer, appeared to think that one of the chief evils was the existence of a non-certificated class of Chinese brokers, and to wish the Latter put down by law.
The most serious aspect which the Ya Hong system bears towards foreign trade, (without mentioning the tendency to monopoly) is the readiness with which the Ya Hongs lend themselves to enforcing any and every kind of levy proclaimed by the Provincial authorities, It is through their means that triplicate passes have become of no use in the Soochow district, as the Provincial authorities, instead of waiting till goods were on their journey before taxing them, went nearer to the fountain head, and taxed the sales made through or by the Ya Hongs.
It will be evident that the term Broker is an inadequate translation of the phrase Ya Hong; the latter includes the function det credere commission agent for both sides, and much more.
Text read from the printed page and cleaned; old type leaves the occasional error.