Tuesday, February 23, 2021

When Corporations, Churches, Newspaper Media, and Governments Collaborate

 


While we are still perusing the history of Russell & Co., let us see yet another connection to powers of other entities. Jointly along with their British counterparts they actively participated in community affairs to include supporting missionary publications and local newspapers. Sibing He observes,

 

“In 1869, Russell & Co. subscribed forty copies of the newly launched Church News (教會新報), the predecessor of The Chinese Globe Magazine (萬國公報), which became the most influential missionary journal in China during the 1870s and 80s. The total number of subscriptions of that magazine in 1869 was over 700 copies.33 From 1863-1865, Nichol Latimer, one of the managers of Russell & Company’s Shanghai Steam Navigation Co., was also the publisher of The North China Herald (北華捷報), the most important English newspaper published in treaty port China.34 The company also supported the effort to reissue the Chinese Repository (中國叢報), a Protestant journal published in Canton and Macao from 1832-1851, which had greatly contributed to American-Chinese intellectual exchanges.” (He, 2011, p. 11)

 


We now see a connection with Russell & Co., the same Russell & Co. that was the largest American trading house in the nineteenth (19th) century in China, and traded silk, tea, and opium. An opium trading firm working with the Church mission’s media and newspaper publications is quite interesting. We will take another look at Russell & Co.’s connection to key positions in government. We find also that due to Russell & Co.’s “… predominant financial position in American business communities in China and its partners' wide connections in Washington,40 Russell and Co. controlled the U.S. consulates in Shanghai and Canton, the most important treaty ports in China.41 (He, 2011, p. 13) We also learn that members of the company were consuls[1] in Canton for over twenty (20) years. Until 1854 the Russell & Co. era of sitting on the consulship ended when Paul S. Forbes of Russell & Co. was forced to resign as consul “… for public condemnation of his involvement in the opium trade …” Strange that this public condemnation did not come about earlier in history.



[1] An official appointed by a government to live in a foreign city and protect and promote the government's citizens and interests there. (Online, 2020)

 

I have concluded over the years in the form of a question with an immediate obvious answer to it. What do people do when they have an advantage? They use it. To demonstrate proof of this from a Russell & Co. perspective,

 

“Russell's domination of consular services greatly benefited its business since it not only enabled the firm to directly utilize government source to facilitate its business operation but also provided access to confidential information of its commercial rivals.” (He, 2011, p. 14)

 


So, let us get this straight. We become a powerful trading house with the chief product traded being opium. We use our profits to buy-off government. We then become key figures within government. We then collaborate with Church and Newspaper media. But some still argue against capitalism though upon further review from a Russell & Co’s perspective it looks like something altogether different than what we have come to understand as free market capitalism.[1] More on this later …



[1] “The free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions. Based on its political and legal rules, a country's free market economy may range between very large or entirely black market.” 

References

He, S. (2011). Russell and Company in Shanghai, 1843-1891: U.S. Trade and Diplomacy in Treaty Port China. Hong Kong University. Hong Kong: Hong Kong University. Retrieved February 22, 2021, from https://amstudy.hku.hk/news/treatyports2011/files/sibinghe.pdf

Janin, H. (1999). The India-China Opium Trade in the Nineteenth Century. Jefferson, North Carolina: McFarland & Company, Inc. Publishers.

Online, O. (2020, December). consul, n.1. Retrieved February 23, 2021, from https://www.lexico.com/en/definition/consul

Staff, I. (2020, April 28). Free Market. (B. Barnier, Editor) Retrieved February 13, 2021, from Investopedia: https://www.investopedia.com/terms/f/freemarket.asp


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