Departure From China and Breakdown of Relations
In 1841, Jardines had 19 intercontinental clipper ships, compared to close rival Dent and Company with 13. Jardines also had hundreds of small ships, lorchas and small smuggling crafts for coastal and upriver smuggling. The trading concerns of Jardine's included smuggling opium into China from India, trading spices and sugar from the Philippines, importing Chinese tea and silk into England, handling cargo papers and cargo insurance, renting of dockyard facilities and warehouse space, trade financing and other numerous lines of business and trade. During the mid-1830s, trade with China was becoming more difficult due to the Qing government's increasing restrictions on the narcotic trade in part to control the worsening outflow of silver. This trade imbalance stemmed from the fact that Western traders were importing more opium into China than they were exporting teas and silk.
Nevertheless, Dr. William Jardine wanted the opium trade to expand in China. In 1834, working with the Chief Superintendent of Trade representing the British Empire, William, Lord Napier, tried unsuccessfully to negotiate with the Chinese officials in Canton. The Chinese Viceroy ordered the Canton offices where Napier was staying to be blockaded and the inhabitants including Napier to be held hostages. Lord Napier, a broken and humiliated man, was allowed to return to Macao by land and not by ship as requested. Suffering a fever, he died a few days later.
Jardine, who had good relations with Lord Napier, a Scottish peer, and his family, then took the initiative to use the debacle as an opportunity to convince the British government to use force to further open trade. In early 1835 he ordered James Matheson to leave for Britain to persuade the Government to take up strong action to further open up trade in China. Matheson accompanied Napier's widow to England using an eye-infection as an excuse to return home. Matheson in England then extensively travelled to meet with several parties, both for government and for trade, to gather support for a war with China. Though in some ways unsuccessful in his forays in England, he was brushed aside by the "Iron Duke" (Duke of Wellington), the then British Foreign Secretary, and reported bitterly to Jardine of being insulted by an arrogant and stupid man. But his activities and widespread lobbying in several forums including Parliament bore the seeds that would eventually lead to war in a few years. Matheson returned to China in 1836 to prepare to take over the firm as Jardine was preparing to fulfill his temporarily delayed retirement. Jardine left Canton on January 26, 1839 for Britain as retirement but in actuality to try to continue Matheson's work. The respect shown by other foreign opium traders to Jardine before his departure can be best illustrated in the following passage from a book by William C. Hunter.
- “A few days before Mr. Jardine’s departure from Canton, the entire foreign community entertained him at a dinner in the dining room of the East India Company’s Factory. About eighty persons of all nationalities, including India, were present, and they did not separate until several hours after midnight. It was an event frequently referred to afterwards amongst the residents, and to this day there are a few of us who still speak of it.”
The farewell dinner to Jardine was held on January 22, 1839 with several members of the Foreign settlement in Canton mostly traders. Among the guests were the Forbes brothers of the prominent Forbes family and Warren Delano, a senior partner in the trading firm Russel & Co. and maternal grandfather of US President Franklin Delano Roosevelt.
The Qing government was pleased to hear of Jardine's departure, then proceeded to stop the opium trade. Lin Zexu, appointed specifically to suppress the drug trade in Guangzhou, stated, "The Iron-headed Old Rat, the sly and cunning ring-leader of the opium smugglers has left for The Land of Mist, of fear from the Middle Kingdom's wrath." He then ordered the surrender of all opium and the destruction of more than 20,000 cases of opium in Guangzhou. He also ordered the arrest of opium trader Lancelot Dent, the head of Dent and Company (a rival company to Jardine Matheson) since the Chinese were more familiar with Jardine as the trading head and were quite unfamiliar with Matheson. Lin also wrote to Queen Victoria, to submit in obeisance in the presence of the Chinese Emperor.
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