We have been favoured with the following translation of a reply, by the Silk Guild, to Mr, Medhnrst's communication to the Taotai regarding the Rules formerly med by the Guild.
"The Committee of the Silk Guild present a petition in reply.
Since the commencement of commercial actions between Foreigners and Chinese up to the present time, although frequent delays have occurred in the payment of Silke purchased ly Foreigners, no complaint has been made on the part of Chinese merchants.
Jin Apri lat both, the Hongkong Bank and the Comptoir @'Escompte, acting upon
graph, withheld over Tls. 1 which tina bee hush they. reoateer by tele-Sietata alee & fod had. Tait over to certain Chinese merchants, thereby hope-Jessly embarrassing the altairs of these people, who have but little capital to embark in business, Subsequently, it is true, the money was paid in full, but not until legal proceedings lind been resorted te, much dis evasion had taken place, and the Silk merchants had experienced great trouble and This induced the merchants to take measures to gnard against. the recurrence of cases similar to this affair of Milsom and Tod's, and to this end they.drew up rules requiring immediate payment in all tra actions, which rules they requested should be transmitted to the Foreign Cor suls, This action was taken from no wish to lightly disregard old established rules, thereby causing injury to trade, Int because the Banks in consulting their own interests injured those of Silk merchants In the opinion of the writers, it is ciple of trade that, in investing either profits or losses may be expected, dus that the capital itself should be Jost. through some irregularity is net taken into calculation. Every Silkman has not the same amount of capital ein. forming a joint stoa while others may borrow frum the Banks at a certain monthly rate.of interest, both transactions involving no inconsiderable amount of responsibility.
Formerly the reliance to be put in good faith of Foreign merchants was substantial, and for many years delivery before payment was assented to by all Silk nierchants without hesitation; but now, since this affair of the two Bunks keeping Iyyek Milsom & Tod's Silk money, fears are entertained lest, in future, Silk brokers ed by self interest may unanthoedly dispose of Silk without regard to the interest of their principals. For this reason rules have been mutually agreed upon, imposing penalties on each other as a protec st future losses, but these rules ilicial to pure to in the have now further deliberated together, and come to the opinion that, in future, should it happen that before a bank order ha Foreign merchant may have given 'd, has been the bank in question' Jeans by aph that such and such a firm has failed—such failure, being as it would be the result of losses incurred in Foreign eountries, cannot be considered to have anything to do with the price paid for the Silk'sold by the Chinese merchant; and we accordingly beg that you will request the Treaty Consuls to impose upon all the Banks certain specific rules, requiring them, notwithstanding any news of anterior transactions which they may receive by telegraph, to pay the Chinese merchant'sSilk money without any deduction. Such rules will be evidence of gond faith, and cheerfully accepted by the Silkmen. But until the Consuls shall have framed these rules, all Silk transactions nest be carried on in accordance with the Guild's resolution _requiring immediate payment. Any Silk merchant wishing to make other arrangements has only himself to consult, but a warehouse-keeper who, owing to his long and friendly relations with 2 Foreign merchant, wishes to sell on other terms, must first consult the principal person concerned, and when both are agreed the transaction may take place.
In this way will the property of merchants-be respected and trade consolidated. The above representations of the Silk Guild are respectfully submitted in the hope that the Foreign Consuls may be requested to call upon all Foreign merchants to act in accordance therewith."
Translated by Acting Interpreter.
Text read from the printed page and cleaned; old type leaves the occasional error.