China

" Hi ya, my welly glad sabe that son my olo flen, Mr. Perkins, my very much chin chin you, maskee come ashore, come ashore ; as for dollar, can hab, yes, can hab lcckly."

- Houqua

By 1803, James and Thomas Handasyd Perkins had been involved in trading furs from the Northwest coast for Chinese tea in Canton for several years. James, one of the first Americans to master double entry bookkeeping, was the inside man, watching the money. Tom ran the operations, hiring crews, loading ships, making trades. It became apparent to them both that setting up a permanent office in Canton would help them trade their goods when market pricing was most advantageous.

The Chinese considered Americans "uncouth beings with fiery hair", part of "a ghostly tribe of barbarians." They were "wild, untamed men whose words are rough, and whose language is confused," "a strange people who came to the Flowery Kingdom from regions of mist and storm where the sun never shines." Clearly, if the Perkins firm was to find success in China, they would need an experienced hand.

They recruited twenty-six year old Ephraim Bumstead, who had apprenticed with their firm and had travelled to Canton as supercargo aboard the Thomas Russell in 1798, to set up an office. As an assistant, they sent along their nephew, sixteen year old John Perkins Cushing, with the hope he’d learn something along the way.

The Patterson arrived in Whampoa on New Years Day 1804, with Bumstead and Cushing and a substantial amount of gold and silver ($750,000 in today’s currency) on board. The Perkins brothers were highly enthusiastic back in Boston when the Patterson returned with a cargo of fine tea. They were already making arrangements to send additional ships and additional capital.
The Mandarin soon sailed with $300,000 in specie, the Montezuma was picking up $80,000 in Lisbon, the Hazard and Caroline were on the Oregon coast trading for furs, The Globe was on the Malay coast and the General Washington was at the Ile de France en route to China. Six large ships were due into Canton in the next few months.

It took four months to send a letter from China to Boston via a fast ship. Little additional news made its way back to Boston. In March 1805, the news did arrive (written in November) that Bumstead was desperately ill and intended to return to Boston. On April 5th word came that he had left China in November with his brother Samuel, captain of the Guatamozin, but that Samuel had been washed overboard and drowned between Java and Sumatra. On April 27th the Guatamozin arrived in Boston. Bumstead was not aboard; he had survived his brother by only a few days. Millions of dollars worth of business were now in the hands of seventeen year old John Cushing, eight thousand miles away.

The Perkins did all they could; they wrote fatherly letters of advice: “Your future well-being depends upon y’r conduct in this crisis. We shall calculate upon your throwing off all juvenile pursuits and acting up to the situation in wh. Circumstances have placed you.” They even invoked the spirit of the original “Captain” Perkins, “Let the sage counsels of y’r good grandmother still vibrate on your ear, and let them sink deep into your heart.”

Young Cushing (Ku-Shing to the Chinese) proved up to the challenge. He established himself at the American house at the “Thirteen Factories”, the small trading district on the banks of the Pearl River in Canton to which foreigners were confined. Teas and other merchandise were stored in these hongs until they are taken down the river to Whampoa and loaded on board the clipper ships. Here “Ku-Shing” dealt exclusively with Houqua, the head of the “Hong” in Canton which handled the Perkins brothers affairs. He bought excellent tea, imported rice during famine, loaned money at 18%, and diversified the firm’s operations. During the War of 1812 the Perkins' ship Jacob Jones captured 2 British merchant ships. The prizes both carried opium, and, when the profits involved were realized, changed the Perkins business model dramatically. The first cargo of Turkish opium, on board the brig Monkey, arrived in 1816; when that transaction proved profitable, the firm set up an opium buying operation in Leghorn, Italy.

“Short-arm Tom”, THP’s son came to Canton on one of the voyages. His cousin, John Cushing instructed him at breakfast soon after his arrival, " Tom, take an armed boat and go up to Mr. Houqua's, and say I wish him to send me, by you, a hundred thousand dollars."

Tom got ready to make the trip, and then waited for the paperwork. After some time Cushing said, "Tom, it is time for you to start, or you may lose the tide."

Tom protested, "You have given me no letter of introduction to Mr. Houqua, nor any written order for the money."

"Oh," said Cushing, "that is quite unnecessary; we do all our business with Houqua by word of mouth, and he does his with us in the same way."

Messrs. Perkins & Co., Canton -

We shall send a couple of fast schooners to Manilla, in all probability. We presume there is no difficulty in landing a cargo of teas there, to be exported, and without duty. This you must ascertain through some of the Spanish residents at Canton or Macao. What would a cargo of Congo tea cost, — say three thousand chests, which would load the " Levant," worth now, short price, $250,000, and cost say $36,000? Coming round Cape Horn, and arriving on the coast in winter, she would stand a good chance of getting in. We should be willing to try it, and hazard one-half, if Houqua would take the other . . . .

You say a cargo laid in at Canton would bring three for one in South America, and your copper would give two prices back. Thus, $30,000 laid out in China would give you $90,000 in South America; one-half of which, laid out in copper, would give one hundred per cent, or $90,000; making $135,000 for $30,000

60,000 pounds indigo, even at 80 cents ...................................$48,000
120 tons sugar, at ........................................................................7,200
Fill up with cotton, or some other light freight, say skin tea ....... 20,000
______

$75,000

would be worth here $400,000, and not employ the profits of the voyage to South America. Manilla sugar is worth $400 to $500 per ton clear of duty. The ship should be flying light, her bottom in good order, the greatest vigilance used on the passage, and make any port north of New York. Perhaps those on the eastern shore are easiest of access. There would be no very great chance but in the winter. We should not be surprised if the British send some frigates to the South-American coast, as one of our ships has been there ; but yet the danger cannot be very great of going to a single port In times like these, the resources of the head must make up for the limited state of trade. We have been fortunate in getting home our property from abroad, except what is in Canton; and that we think in good hands, under your care. We shall perhaps add to this. If the Chinese act with spirit, the supercargoes will prevent capture above Macao. This must be all-important. If not stopped at Macao, we think we shall see some other vessels along.