The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-06-18
Affairs In the East Indies.

Mr,ner of Doing Business-Bank of Calcutta-
Ear,hquake---i School, of ACCOMPLISHMENTS
~ India, &c, &c.
In commencing this series of letters, do not pro-
pose to restrict myself to any definite plan when
thore is you shall get it when there is none you
contrye to go without, contentIng yourself with
whatever may have to offer in the way of comment
an Infinite variety of subjects which will, probably,
many of them be new and at the same time interest
ing to large portion of your readers OF my ability
to do justice to my varied theme, have inordnate
opinion but heightened residence in this country,
under circumstances which have given peculiar OPP
portunites for observation leads to hope that my
letters will not be altogether worthless II worthless
they should turn out you will what to do with
them.
The mail from China came in yesterday, with Hong
Kong dates to the Goth of January. We had been OK
pectng to receive by this opportunity Keyings final
to the demands Of the British Pleuipoentary
but have been disappointed The is neither one
thing OF the other but there be immediate
prospect of do not enter into particulars since
Calcutta 80 far out OF the direct route between
and America that whatever might offer on this head
would he before you get it, shall only then
that whatever may be doing in China, here pre-
Kong and is generally understood that
has contracted with the Pennsuar ana Oriental Steam
kept in readiness to proceed at moments notice with
strong reinforcemeuts There now in Fort William
two Queens regiments of about 600 strong each There
is large force Of artillery at Dunn Dunn, seven miles
OF and at Barrackpore, sixteen miles from town. arc
three Spah regiments of 1900 strong eachthe flower
of the native army. They already sending troops
and black at Madras and along the Coromandcl coast
rea y to proceed on service at very short warming
The probability of Chinese war has already had Its
effect and that serious enough the opium market
OF late years the prices Of opium at the Calcutta sales
have averaged from IL to 1900 rupees per chest At the
last sale held two three weeks ag the drug only
fetched from $50 to 800 and these prices
only obtained owing to the loss of steamer with
500 chests board which of lost to the
market Should the depression in prices continue the
effect the public finances must BIO disastrous. Next
to it's land the opium monopoly is tho mainstay
Of the government Of Bengal. When the drug brings
1900 1900 rupees per chest the net annual revenue
from this source is above million and half sterling
that imagine how seriously must be felt the
present reduction in prices, and how embarrassing
further fall would prove Still the severest blow that
legalzation of the opium traffic by the government Of
China. Let the Of this drug be once permitted In
the Celestial Empire and 1t will soon be found more
to import it at heavy cost from abroad and thus the
enterprisng Chinese agricuursts would learn to
produce better and cheaper article than that now
imported There can be no doubt but that the Celes
tia eminent will before long, the policy of e
CALLING both the cultivation and the traffic. As the
trade goes now sadly the disadvantage of China
for the opium is nearly all paid for in bullion You
will observe that am speaking of this question merely
n matter of policy--withi its moral bearings have
nothing to do at present. although imagine there
be but one opinion on this head.
insoence Of the successor to Tharawadde is growing
day by and British Interference in some shape can
not be delayed much longer. Captain Crisp British
subject trading at Rangoou, has just been put in pri
and threatened with the stocks; and only
managed to escape on payment Of heavy sum- 1t Is
said that government intends to send resident
to Raugoon If he ia not we'll received he will proba
bly, be backed by credentials of the proper sort
couple of steamers would very soon settle the bust
ness. 80
You have, of course heard Of our recent mercantile
disasters About twenty houses. great and small have
suecumbed to to the pressure y during the past four
months and the total amount 4" failed for' cannot
fall short of five Of rupees or i've millions stcr-
ling These failures have taught Calcutta lesson
that she will not be in hurry to forget They have
put end and 1t to be hoped an efectual end to
the fragrant abuse of credit that has ever DIS
graced tho annals oftradea system which in enrich.
Ing HUI ndrads beggared thousands and that
Is exposed in all its hatefuness has made the int.
gritty Of the British merchant bye word among the
natives of Inda-the history of trade with Eng
land since tho renewal Of the charter is indeed extra
ordinary. The phases Of the markets have puzzled
the wscst among economists; none but the
practically initiated ever comprehended the matter
Manchester goods. such twists and calicees have
almost invariably been cheaper in Calcutta than in
Manchester and sugar indigo silk aud lac dye. always
dearer In Calcutta than in London You look incre-
duous. but am speaking from book" From year to
year the fact has been known and wondered att IL
now accounted for. and every body Is astonshed Mt
his stupidity in not having guessed at the truth be-
fore The solution Is easy enough. The London
merchant bought goods in Manchester for shipment
to India simply because he was in want of money He
Maid n the goods in bills Oh India at six months date
and as soon as they shipped, advance was OBJ
tainod again by bill at six months for large part Of
the first cost by the consgnee, who again In his turn
unfrequeuty drew upon the house in India against
the bills of ladng when transmitted. By this means
both parties put in funds months before they ac-
tuay paid for the goods and frequently those bills
we're renewed at maturity, pretence of allowing for
the returns in long trade" SO much for England
In India the thing done, only the abuse OF
credit was still more extravaganza People went into
the bazaar not because they had money to trade with
but because they wanted money to meet obligations
What way so simple" says knowing writer g to
r,nea of
London house at ten months date, transmit the ship
ping documents by the overland MALL and in less than
two months the goods the high perhaps not
yet passed. the mouth of the Hooghy were pawned In
Lombard street putting the London house in posses
sion of nds eight months before the drafts against
those goods fell due.u Indeed. I have known Of
ney being raised on bills of lading which signed
not only before the goods were on board but even be-
fore they had arrived in Calcutta from up the
try suppose there very few Calcutta merchants
whohave not been guilty Of the improprety of induc
ing captain to sign documents for goods not yet ship
ped Frequently have merchants drawn against
such fictitious documents, and taken the proceeds Of
the bills into to buy the very goods which
the documents pretended to represent. You may well
ask what is to be thought Of the captain who would
sign bills of lading for cargo not shipped; but you
must bear In mind that good dinner will make n LII
verpoo skipper wondrous kind when there is any thing
Of this sort to DO done
But as have said hope the system has been efcc-
tualy mashed. 1t was one which no house once in
vovcd in it could have hoped to escape from
harmed and ut could never have been broken up but
by the general crash we have just witnessed All the
damage Is not yet doneat least further failures seem to
be inevitable; but it is to be hoped that the cause
Of our disasters exists no longer.
Tho extrayaganc of the partners of many of the Cal
cutta firms. has fastened their ruin and deprived
them Of sympathy, now that they are down. Some II
those people have been living Mt the rate OF ElO00O
per annum and yet fully aware of their insolvency
What. you viii say, would be thought of London
merchant deeply implicated in horsc-racing! And yet
of the partners of Calcutta houses have been
head and involved in the spccuatons Of the
betting ring. They have not dared toilet their own
names appear the of horses and under
of their dcgaerrc have perhaps managed to keep
she secret from their correspondents In England; but
the thing has been for years the scandal of Calcutta
Extravaganza too in other shapes. has helped to get
rid Of their money, and at the time to keep up
too general belief that their resources were inox-
haustiblc. What tho business cstablt hmeut of the
firm of Cockcrcll Co.. which has failed for million
and a-haf sterling, may have cost cannot say: but
know that the bookkecper of the house received clio
FER annum and that two other clerks had e. 400 be-
tween them This firm may pay sixpence in the pound