Dealing with Information Delay and Loss in the Early Nineteenth Century -- How did a Chinese Merchant Build up a Commercial Network across Three Continents?

• In Event: Trading Knowledge: Commerce, Science, and Networks across East Asian Ports in the Long Nineteenth Century

Abstract

The transmission of knowledge in the early nineteenth century was unsecured and dull. Those who suffered most seriously under the delay and even loss of valuable information might be the merchants involved in long-distance trade. Without any support of modern communicative technology like telegraph and telephone, they had to build up commercial networks to accomplish their business transactions.

This can be especially observed in the foreign trade in Canton (Guangzhou) in South China before the 1840s. The only bearer of commercial information between Canton and outside world was the written correspondence carried by foreign – mostly American and European – commercial ships with rather uncertain schedule. A mail between Canton and Boston took usually half a year. Since it was not allowed for Chinese to go abroad, business relations between Chinese and western traders were extremely vulnerable.

Nevertheless, there was one outstanding Chinese merchant in early 19th century – Houqua (Wu Bingjian 1769-1843), who not only established successfully his commercial network covering three continents (Asia, America and Europe), but also a long-term and trustworthy relationship with his American partners. Based on Houqua’s practices, this paper will firstly provide the working procedure of Houqua’s commercial network concerning the circulation and exchange of information. Secondly, I will try to figure out Houqua’s strategies to deal with the delay and loss of information and to stabilize his relation with some American partners, especially Russell & Company, who managed his oversea fortunes for almost half a century after his death.

Author

• Shuo Wang, University of Freiburg