And as

monopolist looked for his own price ;

which kept the rates both of raw and

Raw and prepared

drug always somewhat higher here than at the neighboring

anchorage of Oumsingmoon. The license system has

relieved this difficulty,

and we see the

benefit of it in opium becoming the favored

mode among

our industrial classes of

making

remittances

to the mainland . their petty remittances

The cause which obstructs

a larger wholesale traffic in the article

here is

clearly

this. That it does not suit

the two great houses to encourage it - and

they find it their interest to incur

even

heavy pecuniary sacrifices to counteract it.

Thus it is

in practice heavier

on their part, if they find that

a larger quantity of drug

than usual has been

taken off by the North east or West coast smuggling boats, to throw a proportion into the Market at greatly reduced rates .

This is bought up eagerly by the brokers, and sent

off

into the same districts as

the higher

priced drug,

where it undersells it - prices

come down and

the adventurer ( say he is

a Namoa smuggler ) is made to feel that

he has made a loss by his

speculation of coming to Hongkong for his Opium, instead of buying it at the nearest anchorage . He is made very slow in trying it again,

Keeps in future to his beaten track. But that effect is not the only effect .

The Market here is brought

down

completely thereon out of gear - the houses cannot sell a chest for a

long time, nor can

prices be got up

again to

the old level for weeks after

one

of these

tactical operations . Asked by a stranger what interest can these Houses have in discouraging

the

trade here, where they are themselves the

chief holders and Sellers !

Encouraged

and open

it might

be the chief.

The answer is

obvious - if they

encouraged the traffic here it would become

an open traffic in spite of them - not only would prices be laid down for them, but

they

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