Karl Marx in New York Daily Tribune
Articles On China, 1853-1860
A most profound yet fantastic speculator on the principles which govern the movements of Humanity was wont to extol as one of the ruling secrets of nature what he called the law of the contact of extremes. The homely proverb that “extremes meet” was, in his view, a grand and potent truth in every sphere of life; an axiom with which the philosopher could as little dispense as the astronomer with the laws of Kepler or the great discovery of Newton.
Whether the “contact of extremes” be such a universal principle or not, a striking illustration of it may be seen in the effect the Chinese revolution seems likely to exercise upon the civilized world. It may seem a very strange, and a very paradoxical assertion that the next uprising of the people of Europe, and their next movement for republican freedom and economy of Government, may depend more probably on what is now passing in the Celestial Empire — the very opposite of Europe — than on any other political cause that now exists — more even than on the menaces of Russia and the consequent likelihood of a general European war. But yet it is no paradox, as all may understand by attentively considering the circumstances of the case.
Whatever be the social causes, and whatever religious, dynastic, or national shape they may assume, that have brought about the chronic rebellions subsisting in China for about ten years past, and now gathered together in one formidable revolution the occasion of this outbreak has unquestionably been afforded by the English cannon forcing upon China that soporific drug called opium. Before the British arms the authority of the Manchu dynasty fell to pieces; the superstitious faith in the eternity of the Celestial Empire broke down; the barbarous and hermetic isolation from the civilized world was infringed; and an opening was made for that intercourse which has since proceeded so rapidly under the golden attractions of California and Australia. At the same time the silver coin of the Empire, its lifeblood, began to be drained away to the British East Indies.
Up to 1830, the balance of trade being continually in favour of the Chinese, there existed an uninterrupted importation of silver from India, Britain and the United States into China. Since 1833, and especially since 1840, the export of silver from China to India has become almost exhausting for the Celestial Empire. Hence the strong decrees of the Emperor against the opium trade, responded to by still stronger resistance to his measures. Besides this immediate economical consequence, the bribery connected with opium smuggling has entirely demoralized the Chinese State officers in the Southern provinces. Just as the Emperor was wont to be considered the father of all China, so his officers were looked upon as sustaining the paternal relation to their respective districts. But this patriarchal authority, the only moral link embracing the vast machinery of the State, has gradually been corroded by the corruption of those officers, who have made great gains by conniving at opium smuggling. This has occurred principally in the same Southern provinces where the rebellion commenced. It is almost needless to observe that, in the same measure in which opium has obtained the sovereignty over the Chinese, the Emperor and his staff of pedantic mandarins have become dispossessed of their own sovereignty. It would seem as though history had first to make this whole people drunk before it could rouse them out of their hereditary stupidity.
Though scarcely existing in former times, the import of English cottons, and to a small extent of English woollens, has rapidly risen since 1833, the epoch when the monopoly of trade with China was transferred from the East India Company to Private commerce, and on a much greater scale since 1840, the epoch when other nations, and especially our own, also obtained a share in the Chinese trade. This introduction of foreign manufactures has had a similar effect on the native industry to that which it formerly had on Asia Minor, Persia and India. In China the spinners and weavers have suffered greatly under this foreign competition, and the community has become unsettled in proportion.
The tribute to be paid to England after the unfortunate war of 1840, the great unproductive consumption of opium, the drain of the precious metals by this trade, the destructive influence of foreign competition on native manufactures, the demoralized condition of the public administration, produced two things: the old taxation became more burdensome and harassing, and new taxation was added to the old. Thus in a decree of the Emperor, dated Peking, Jan 5 1853, we find orders given to the viceroys and governors of the southern provinces of Wuchang and Hanyang to remit and defer the payment of taxes, and especially not in any case to exact more than the regular amount; for otherwise, says the decree, “how will the poor people be able to bear it?” And “Thus, perhaps,” continues the Emperor, “will my people, in a period of general hardship and distress, be exempted from the evils of being pursued and worried by the tax-gatherer.” Such language as this, and such concessions we remember to have heard from Austria, the China of Germany, in 1848.
All these dissolving agencies acting together on the finances, the morals, the industry, and political structure of China, received their full development under the English cannon in 1840, which broke down the authority of the Emperor, and forced the Celestial Empire into contact with the terrestrial world. Complete isolation was the prime condition of the preservation of Old China. That isolation having come to a violent end by the medium of England, dissolution must follow as surely as that of any mummy carefully preserved in a hermetically sealed coffin, whenever it is brought into contact with the open air. Now, England having brought about the revolution of China, the question is how that revolution will in time react on England, and through England on Europe. This question is not difficult of solution.
The attention of our readers has often been called to the unparalleled growth of British manufactures since 1850. Amid the most surprising prosperity, it has not been difficult to point out the clear symptoms of an approaching industrial crisis. Notwithstanding California and Australia, notwithstanding the immense and unprecedented emigration, there must ever, without any particular accident, in due time arrive a moment when the extension of the markets is unable to keep pace with the extension of British manufactures, and this disproportion must bring about a new crisis with the same certainty as it has done in the past. But, if one of the great markets suddenly becomes contracted, the arrival of the crisis is necessarily accelerated thereby. Now, the Chinese rebellion must, for the time being, have precisely this effect upon England. The necessity for opening new markets, or for extending the old ones, was one of the principle causes of the reduction of the British tea-duties, as, with an increased importation of tea, an increased exportation of manufactures to China was expected to take place. Now, the value of the annual exports from the United Kingdom to China amounted, before the repeal in 1834 of the trading monopoly possessed by the East India Company, to only £600,000; in 1836, it reached the sum of £1,326,388; in 1845, it had risen to £2,394,827; in 1852 it amounted to about £3,000,000. The quantity of tea imported from China did not exceed, in 1793, 16,167,331 lbs.; but in 1845, it amounted to 50,714,657 lbs.; in 1846, to 57,584,561 lbs.; it is now above 60,000,000 lbs. The tea crop of the last season will not prove short, as shown already by the export lists from Shanghai, of 2,000,000 lbs. above the preceding year. This excess is to be accounted for by two circumstances. On one hand, the state of the market at the close of 1851 was much depressed, and the large surplus stock left has been thrown into the export of 1852. On the other hand, the recent accounts of the altered British legislation with regard to imports of tea, reaching China, have brought forward all the available teas to a ready market, at greatly enhanced prices. But with respect to the coming crop, the case stands very differently. This is shown by the following extracts from the correspondence of a large tea-firm in London:
“In Shanghai the terror is described as extreme. Gold had advanced in value upwards of 25 per cent., being eagerly sought for hoarding; silver had so far disappeared that none could be obtained to pay the Chinese dues on the British vessels requiring port clearance; and in consequence of which Mr. Consul Alcock has consented to become responsible to the Chinese authorities for the payment of these dues, on receipt of East India Company’s bills, or other approved securities. The scarcity of the precious metals is one of the most unfavourable features, when viewed in reference to the immediate future of commerce, as this abstraction occurs precisely at that period when their use is most needed, to enable the tea and silk buyers to go into their interior and effect their purchases, for which a large portion of bullion if paid in advance, to enable the producers to carry on their operations.”
At this period of the year it is usual to begin making arrangements for the new teas, whereas at present nothing is talked of but the means of protecting person and property, all transactions being at a stand.
“...if the means are not applied to secure the leaves in April and May, the early crop, which includes all the finer descriptions, both of black and green teas, will be as much lost as unreaped wheat at Christmas.”
Now the means for securing the tea leaves will certainly not be given by the English, American or French squadrons stationed in the Chinese seas, but these may easily, by their interference, produce such complications as to cut off all transactions between the tea-producing interior and the tea exporting sea ports. Thus, for the present crop, a rise in the prices must be expected – speculation has already commenced in London – and for the crop to come a large deficit is as good as certain. Nor is this all. The Chinese, ready though they may be, as are all people in periods of revolutionary convulsion, to sell off to the foreigner all the bulky commodities they have on hand, will, as the Orientals are used to do in the apprehension of great changes, set to hoarding, not taking much in return for their tea and silk, except hard money. England has accordingly to expect a rise in the price of one of her chief articles of consumption, a drain of bullion, and a great contraction of an important market for her cotton and woollen goods. Even the Economist, that optimist conjurer of all things menacing the tranquil minds of the mercantile community, is compelled to use language like this:
“We must not flatter ourselves with finding as extensive a market as formerly for our exports to China ... It is more probable, therefore, that our export trade to China should suffer, and that there should be a diminished demand for the produce of Manchester and Glasgow.”
It must not be forgotten that the rise in the price of so indispensable an article as tea, and the contraction of so important a market as China, will coincide with a deficient harvest in Western Europe, and, therefore, with rising prices of meat, corn, and all other agricultural produce. Hence contracted markets for manufacturers, because every rise in the prices of the first necessaries of life is counterbalanced, at home and abroad, by a corresponding reduction in the demand for manufactures. From every part of Great Britain complaints have been received on the backward state of most of the crops. The Economist says on this subject:
In the South of England “not only will there be left much land unsown, until too late for a crop of any sort, but much of the sown land will prove to be foul, or otherwise in a bad state for corn-growing.” On the wet or poor soils destined for wheat, signs that mischief is going on are apparent. “The time for planting mangel-wurzel may now be said to have passed away, and very little has been planted, while the time for preparing land for turnips is rapidly going by, without any adequate preparation for this important crop having been accomplished ... oat-sowing has been much interfered with by the snow and rain. Few oats were sown early, and late-sown oats seldom produce a large crop.”
In many districts losses among the breeding flocks have been considerable. The price of other farm-produce than corn is from 20 to 30, and even 50 per cent. higher than last year. On the Continent, corn has risen comparatively more than in England. Rye has risen in Belgium and Holland a full 100 per cent. Wheat and other grains are following suit.
Under these circumstances, as the greater part of the regular commercial circle has already been run through by British trade, it may safely be augured that the Chinese revolution will throw the spark into the overloaded mine of the present industrial system and cause the explosion of the long-prepared general crisis, which, spreading abroad, will be closely followed by political revolutions on the Continent. It would be a curious spectacle, that of China sending disorder into the Western World while the Western Powers, by English, French and American war-steamers, are conveying “order” to Shanghai, Nanking and the mouths of the Great Canal. Do these order-mongering Powers, which would attempt to support the wavering Manchu dynasty, forget that the hatred against foreigners and their exclusion from the Empire, once the mere result of China’s geographical and ethnographical situation, have become a political system only since the conquest of the country by the race of the Manchu Tatars? There can be no doubt that the turbulent dissensions among the European nations who, at the later end of the 17th century, rivalled each other in the trade with China, lent a mighty aid to the exclusive policy adopted by the Manchus. But more than this was done by the fear of the new dynasty, lest the foreigners might favour the discontent existing among a large proportion of the Chinese during the first half-century or thereabouts of their subjection to the Tatars. From these considerations, foreigners were then prohibited from all communication with the Chinese, except through Canton, a town at a great distance from Peking and the tea-districts, and their commerce restricted to intercourse with the Hong merchants, licensed by the Government expressly for the foreign trade, in order to keep the rest of its subjects from all connection with the odious strangers. In any case an interference on the part of the Western Governments at this time can only serve to render the revolution more violent, and protract the stagnation of trade.
At the same time it is to be observed with regard to India that the British Government of that country depends for full one seventh of its revenue on the sale of opium to the Chinese while a considerable proportion of the Indian demand for British manufactures depends on the production of that opium in India. The Chinese, it is true, are no more likely to renounce the use of opium than are the Germans to forswear tobacco. But as the new Emperor is understood to be favourable to the culture of the poppy and the preparation of opium in China itself, it is evident that a death-blow is very likely to be struck at once at the business of opium-raising in India, the Indian revenue, and the commercial resources of Hindostan. Though this blow would not immediately be felt by the interests concerned, it would operate effectually in due time, and would come in to intensify and prolong the universal financial crisis whose horoscope we have cast above.
Since the commencement of the eighteenth century there has been no serious revolution in Europe which had not been preceded by a commercial and financial crisis. This applies no less to the revolution of 1789 than to that of 1848. It only that we every day behold more threatening s conflict between the ruling powers and their subjects the State and society, between the various classes; conflict of the existing powers among each other reaching that height where the sword must be drawn, and the ultima ratio of princes be recurred to. In the European capitals, every day brings despatches big with universal war, vanishing under the despatches of the following day, bearing the assurance of peace for a week or so. We may be sure, nevertheless, that to whatever height the conflict between the European powers may rise, however threatening the aspect of the diplomatic horizon may appear, whatever movements may be attempted by some enthusiastic fraction in this or that country, the rage of princes and the, fury of the people are alike enervated by the breath of prosperity. Neither wars nor revolutions are likely to put Europe by the ears, unless in consequence of a general commercial and industrial crisis, the signal of which has, as usual, to be given by England, the representative of European industry in the market of the world.
It is unnecessary to dwell on the political consequences such a crisis must produce in these times, with the unprecedented extension of factories in England, with the utter dissolution of her official parties, with the whole State machinery of France transformed into one immense swindling and stockjobbing concern, with Austria on the eve of bankruptcy, with wrongs everywhere accumulated to be revenged by the people, with the conflicting interests of the reactionary powers themselves, and with the Russian dream of conquest once more revealed to the world.