ment, by withholding exemption certificates on native produce carried coastwise, arbitrarily imposed a duty on the conveyance of native produce coastwise equivalent to both. the full duty provided by tariff on the export of such to foreign countries, and to that payable in the case of their being imported from abroad. By proposing this extra tax, without any right to it, and then accepting of it an a compromise, as though the claim were founded, the introduction of the Coast Trade Duty' was facilitated. This extra tax was levied by the Chinese refusing to continue granting exemption certificates on native produce conveyed from one port to another. By so doing, the shipper had no documentary proof that the produce had paid duty, or that it had been shipped in regular form from a Chinese port, and it was consequently treated as though it were imported from another country and forced to pay accordingly, notwithstanding it having been already charged by the Chinese Government a full duty previously. This was such a barefaced attempt at extortion that it could not pass unnoticed. The Shanghai British Chamber of Commerce on 20th August, 1861, appealed the matter to Lord John Russell, and drew his attention to the harmful effect such a measure would have on the coast trade, and urged that the term merchandise in Article XIV of the Tientsin Treaty providing for the exemption certificates on whatever was sent from any of the coast ports to another coast port applied inclusively to all articles of trade, when ther of foreign or native production. It is self-evident that the interpretation given by the Chamber of Commerce to Article XI was the right one. It could only be tumed aside by introducing another element into the consideration of what the Treaty meant. This was done by starting the "previous question," and thereby casting a doubt as to whether the right of British ships to articipate in the coasting trade was secured the Treaty of Tientsin. Of course assuming such right not to exist, it became evident that all questions regarding the conditions under which it might be conceded were entirely dependent on the good will of the Chinese Government, and the door would be opened wider for the introduction
Text read from the printed page and cleaned; old type leaves the occasional error.