Page:Europe in China.djvu/472

454 and fast steamers, the first of which, the Colorado, arrived in Hongkong on January 31st, 1867. A Hotel Company was formed in January and commenced operations in July, 1867.

On the other hand, at the beginning of the year 1860, complaints were heard of increasing commercial depression in some branches of business. It was felt by many, that a serious financial crisis was approaching from abroad. In April, 1866, it was further stated that British vessels sailing from Hongkong had practically lost their hold on the trade along the coast of China, as among 20 European vessels engaged in this trade only 3 were British. The general gloom was intensified when the Agra Bank and the Commercial Bank suspended payment (June, 1866). In November, 1866, dulness was reported to reign in most branches of local trade and in December great anxiety prevailed in the Colony as to the stability of a number of local firms. The old and popular firm of Dent & Co. suspended payment on 1st January, 1867. The failure of Lyall, Still & Co. and some smaller firms followed soon after. In March, 1867, a panic seemed to be impending. There was a general lack of confidence in all mercantile branches. Even the scrip of the prosperous Hongkong & Shanghai Bank began and continued for some time to droop, although the directors denied (March 15, 1867) under threat of prosecution the reports current as to the cause of it, and declared (August 28, 1867), after providing for the losses entailed by the failure of Dent & Co., a dividend of 6 per cent. for the half year. This period of commercial stagnation was extraordinarily prolonged, as it continued from 1866 until the fall of the year 1869.

Meanwhile the temper of the community vented itself in complaints. In 1867 people commenced to lay the blame for the depression of trade on Sir Richard's legislative measures, ignoring the fact that a contemporaneous depression existed elsewhere and in places which were not in any way affected by local legislation. Various causes, however, added fuel to the irritation which naturally increased as the commercial atmosphere became more and more enveloped in gloom.