Washington sentinel., 1898-10-22
BU INEss METHODS IN CHINA.
ETPineerfHg.

At the present time, when the affairs
of China are being so much spoken and
written about, it is absolutely necessary
that manufacturers and merchants
should make themselves acquainted
with the methods OF doing business IN
China, for they may rest assured that
unless they conform to them to very
great extt mt all their efforts will be in
vain. 1t is absolutely necessary that
manufacturers sending goods to China
should be represented there by intelli.
gent, respectable, and competent agents.
These agents should be authorized, and
be capable Of discussing industrial ques
tions, and OF availing themselves OF the
best markets, and they must also recog.
nize the conditions under which business
is usually done in China. The Belgian
Consul at Shanghai points cut that the
indispensable intermediary (or as they
are called in England, "middlemen'O y
between the European and Chinese
traders is the "compradore,' whose
name is derived from the Spanish com
byadoY--i. e. buyer. The earliest for
eigners who came to settle in China for
purposes of trade carried on business on
the principle Of exchange only, receiving
merchandise in return TOR that which
they brought with them. and, the inter
ior of China being closed to foreigners,
they were obliged to have recourse to
Intermediates to procure what they
required. This method has been ad-
hered to, and attained its greatest i'm
portance at the time of the merchant
princes" whose profits were so enor-
nous that the heads Of foreign firms did
not condescend to occupy themselves
with their business, but left the conduct
of their affairs 10 their "compradores. "
The natural result OF such an arrange
ment was that a large portion of the
profits was pocketed by the compra-
dores" Not only the purchases but he
sales were also entrusted to them, and,
as an explanation Of such state Of
affairs, It was urged that the Chinese
language is difficult, at the Chinese
pay with bills at long dates on banks in
the interior OF China, and that conse
quently a man Of business was required
,onversant with the commercial customs
of the country; but the true reason was
that, notwithstanding the personal pick.
iugs OF the "compradores, the profits
were so large that merchants only went
into business affairs when they had time.
The result was, that the "cOmpradores"
amassed wealth, and SaIned the i'm
portant position which is theirs today.
Atthe pres INT time,however, the method
OF conducting business has completely
changed, the merchant princes have
disappeared from the scene, leaving only
the memory of profits and extravagance;
but the results Of their methods are still
felt. Telegraphic communications, and
the opening up Of the Suez Canal. have
introduced a new generation in the Chi
ness markets, with small capital, and
sometimes with none at all, but with a
love Of work ard econ my. An enor-
nous rivalry has been created among
these newcome Sail workers. keen,
constant struggle, in which the old
wealthy firms have succumbed. The
role of "compradors" has thus been
modified he continues, as before, to
hold all the business in his hands, both
IN buying and selling markets; but to
these professions he has added an i'm
portant one-that OF money lender
Under these cOndit ons, and considering
the mercantile sp rit Of the Chinaman
It may be concluded that the firm who
employs the ''compradore" serves ioI
him only as a means OF speculation. II