Savannah morning news. [volume] (Savannah) 1868-1887, 1884-10-19
Chinese Business srstems.

The last issue OF the United States con =
sular reports is devoted wholly to the credit
and trade systems Of different countries.
These reports, as is welI-knOwn, are pub
lished monthly by the State Department.
They contain q vast amount Of infOrma-
tion gathered by our COnsuls in different
parts Of the world. This information is
often Of a special character, called for by
circulars sent out By the State Depart
ment. The facts furnished relative TO the
trade and credit systems are both inter
esting ard valuable.
The reports from the various Consuls
show that Europe has the most unlimited
credit system, and that the people pay
more for what they consume, comparing
the prices they pay with the prices paid
the wholesale dealer and the manufac-
turer, than the people Of any other cOun-
try. In Europe long credits are regarded
as necessary to secure business. Al
though the Chinese are regarded, to a GER
tain extent, with contempt, by nations
more advanced in civilization their busi-
ness system presents features that are
worthy Of imitation. Indeed, it would
not, perhaps, be too much to say that the
Chinese are model business men.
The report Of Charles Seymour, our
Consul at Canton, on the Chinese business
systems, while brief, presents the main
points Of these systems. 1t is as follows:
It seems to be the custom in Canton.
and. so far as l can learn, throughout
Southern China, to extend liberal credits
in business transactions, and with COM
paratiYely little inconvenience or disap-
pointment in settlements, which are gen
orally made semi-annually.
Before the beginning Of the new year,
which is in the second week of February.
the seals are almost universally locked
up, and remain so during that month. 1t
is customary 70 afiix the vermili0n seals
to all receipts for money payments. ac-
cOrdiug TO the commercial customs Of the
nations with which the Chinese had COM
merce over twenty centuries ago, in
Guiding not only the Romans and Per-
SLAMS, but TIE BabylOnians. The closing
OF the seals implies that all business mat
tiers have been adjusted. and such is the
fact with rare exceptions.
1t Is almost universally assumed in this
part Of China that the business or pecuni-
airy Obligations Of all solvent individuals,
firms and companies viii be hOnOrably
met and fully discharged before the end
Of the Chinese year. All delinquents then
pass AuAO tut uAsnUuDAEu E1d~Ss anu dlE
soon put under process of cOerciye termi-
nation Of business career, aud are sub
ject to punishment by bamboo blows.
By reference to the Chinese penal code,
il appears that the act OF obtaining prop
erty under false pretenses is treated as
theft, both as to the nature Of the crime
aud The severity Of punishment, No duti-
81 son feels absoiEed from discharging
his fathers debts. Adversely occasi0ned
Gahl i
with indulgence; failure caused by profit
gacy or hazardous ventures or reckless
ness admits of no countenance.
Besides the annual settlements, which
are full and clean, il is customary among
commercial men 70 demonstrate their sol
yency, and promote their mutual safety
and comfort, and approximately cover all
balances to their mutual satisfaction IN
the middle Of the Chinese year, or about
Aug. 1.
Thus, BY semi-annual settlement, all
CnlneSe business concerns with any pre-
tensions 10 solyency and solidIty attend
regularly and sacredly 10 these customs,
which serve to inspire all concerned with
mutual confidence, and this observance Of
good faith gives every man feeling Of Sc
curity which results in solid credit and
commercial safety.
A well-knOwn and verified case Of strict
merchants might be cited in the action Of
an extensive and opulent merchant named
HouQua, who was, during the middle OF
the present century, a leader in the COM
merce of Canton. and left an estate vari-
ously estimated at from So, 900 to $780,
00O, 600.
On the occasion of a Chinese firm fail
ing, with large Indebtedness to foreign
merchants, under circumstances that
were deemed dishOnOrable, Houqua called
upon half a dozen wealthy merchants to
join him in paying of the total indebted
ness of the insolvent Chinese firm, and
headed the subscription with S1,000,000,
remarking that "Chinese credit must re-
main untarnished.o
This is the same HOuqua who raised the
portion of the Sc, 600, 600 of Indemnity" or
''ransom" which had to be paid by the
Chinese authorities within fOrty-eight
hours to prevent the bombardment of
Canton by the English, when HOuqua
cheerfully contributed 81, 100, 00O; 100000
of which he gave in recognition of the
fidelity OF his son, S2O0, 900 OF which he do
mated in token of the affection of his be-
loved wife, and 5000 as a thank-offer-
ing for the prosperity that had invariably
attended him in his commercial enter
prises,'' as appears On public record.