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 them were moored. At this point the supercargoes made the necessary arrangements with the customs officials for disposing of their cargoes, the first step being to procure a fiador, a person to become surety for the payment of the government duties and fees. This person was a licensed Chinese merchant. It was also necessary to secure a linguist, a Chinese, who acted as ship's broker and interpreter in all transactions with the custom-house, which was in the city where no foreigners were admitted, and he attended to the discharge and transportation of the cargo to Canton.

The trade or bartering of the merchandise brought by the ships was conducted by the co-hong, which consisted of a body of from ten to thirteen Chinese, called the hong merchants. These men ranked among the most wealthy and respectable inhabitants of Canton; they paid largely for the privilege of entering the co-hong, and when admitted became permanent members of it; they had extensive establishments and numerous and convenient warehouses; and the co-hong was made the medium of all communication of the authorities of Canton and the imperial government with the foreign merchants and other foreigners. The cargoes were unloaded at Whampoa into Chinese boats and taken to the landing outside the walls of Canton. Here the merchandise was transferred to the hong merchants, who agreed on the prices at which they would purchase, and fixed those of their own goods in return.

Notwithstanding the great power and advantage conferred upon the co-hong by this system, Consul Shaw reports to the Secretary of State that they "are a set