392 Boundaries and Beyond
still engaged in the junk trade, but their main interest was in conducting
voyages to Vietnam and Siam.^162
All along the thriving overseas junk trade had been in the hands of the
Fujian men. With the reduction in trade, they often chose to retreat to
their native towns in Fujian where those who had become rich could live
a luxurious life among their fellow townsmen. For those who were not so
well-off, the cost of living in Fujian was just one-third of that in Canton.^163
Harry Parkes also discovered other reasons for the decline in the
junk trade. He points out that Canton society was no longer as thriving
as it had been in the past and consequently the consumption of imported
goods had shrunk. Formerly, the junk traders had the possibility to
make a proβit of 200 to 400 per cent, but around 1850 this had shrunk
to only one-tenth of the earlier βigures because of the competition from
foreign shipping. The interest rate on money advancement on bottomry
in Canton was about 20 to 25 per cent, just a fraction of the past amount.
Owing to the absence of insurance, the returns on investments were
insufβicient to cover the potential losses of the junk or cargoes during
the voyage. As Harry Parkes was informed by one of the largest of the
old Hongs continuing in the trade, the transactions had decreased by at
least one-half during the preceding ten years. While the business of the
βive principal Hongs was now worth just above one million dollars, the
proβits of the small establishments were even lower. In the estimate of
Parkes’ informant, the total value of trade of all the investors was just
above two million dollars. This amount seems to cover only the overseas
junk trade, and was quite close to Harry Parkes’ own estimate. Writing
about the overseas junk trade, Harry Parkes reckoned that, around 1850,
the junks entering Canton from Vietnam numbered 30, contributing to
a trade value of 240,000 dollars. There were 15 junks from Siam with
a value of 300,000 dollars. Twenty junks had come from the Straits
with a total value of 120,000 dollars each. In other words, this branch
of trade was worth 660,000 dollars. The situation was exacerbated by
the fact that the export trade from Canton to foreign countries was one-
half of the value of the imports. Therefore, the total value of the import
and export trade for Canton amounted to 990,000 dollars. If combined
with the Hainan trade, the amount would double the sum given above.^164
On the basis of the consular reports that he had received, John Bowring
- Ibid., pp. 56a‒57b.
- Ibid., p. 59.
- Ibid., pp. 59b‒61a, 85a.
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