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Rh openly defied the Company whilst profiting by its presence. The Portuguese (from Macao), the Spaniards (from Manila), and the Dutch (from Formosa) had preceded the East India Company in the Canton trade, and could not be ousted. Danish and Swedish merchants (A.D. 1732), French (A.D. 1736), Americans (A.D. 1784) and others forced their way in, and international comity on the one side and Chinese policy on the other protected them against the interference of the East India Company.

Soon, moreover, private British merchants also secured admission to Canton, and openly defied the Company's monopoly by taking out foreign naturalization papers. Thus, for instance, Mr. W. S. Davidson, an English merchant, visited Canton in the year 1807 and subsequently traded in Canton, on his own account and as agent of English firms, for eleven consecutive years (1811 to 1822), under a Portuguese certificate of naturalization, which he had obtained without fee in London, with the assistance of the British Ambassador to Brazil. Many others followed the example of Mr. Davidson.

The renewal of the East India Company's charter, in 1813, made no great difference in the conduct of its Chinese trade. But as the Company was from that date compelled to publish its commercial accounts separately from its territorial accounts, British merchants generally became aware of the profitable aspects of trade with China. Moreover the public press now began to undermine the Company's monopoly by suggesting on sundry occasions that trade with the East would be carried on more profitably by private merchants than by the Company. But the antagonistic forces of Monopoly and Free Trade, thus evoked, took years to gather strength for a final struggle.

The earliest pioneer of British free trade in Canton was Mr. William Jardine, founder of the still flourishing firm of Jardine, Matheson & Co., who visited China off and on between the years 1802 and 1818, and resided in Canton continuously from 1820 to January 31, 1839. Next in time and influence came W. S. Davidson (referred to above), R. Inglis of Dent & Co.