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of bankruptcy. The Viceroy of Canton sanctioned, in the case of Hing-tai's bankruptcy, an arrangement to be made with his foreign creditors, but the latter rejected the terms offered. As the Chinese Government had originally appointed the Hong Merchants on the principle of mutual responsibility, had repeatedly insisted upon the payment of such debts, and imposed for many years past a special tax on foreign commerce in order to create a guarantee fund for their liquidation, the British merchants had both law and prescription on their side. Moreover, on a similar occasion (A.D. 1780), an officer in the service of the East India Company (Captain Panton) had succeeded, by means of a letter addressed to the Viceroy of Canton by a British Admiral (Sir Edward Vernon) and forwarded by a frigate (the Sea-horse), in obtaining (October, 1780) an Imperial Decree ordering partial repayment of a similar debt. Naturally enough, therefore, the British creditors of Hing-tai now argued that the simple intervention of the British Cabinet with the Imperial Government at Peking would facilitate the adjustment of the whole of their claims against the bankrupt Hongs. In this sense a memorial was addressed (March 21, 1838) to Lord Palmerston, signed by the following, firms, viz.: Dent, Turner, Bell, Lindsay, Dirom, Daniell, Cragg, Layton, Henderson, Stewart, Rustomjee, Fox Rawson, Nanabhoy Framjee, Eglinton Maclean, Bibby Adam, Gibb Livingston Gemmell, Macdonald, Wise Holliday, Kingsley and Jamieson How. Nevertheless, foreseeing the unwillingness of Lord Palmerston to press their claims with due promptitude upon the Chinese Government, the above-mentioned firms meanwhile applied directly to the Cantonese Authorities, without the intervention of Captain Elliot. A long and exasperating correspondence ensued, the upshot of which was that the British merchants obtained payment of their claims against the Hing-tai Hong at a reduced rate but by instalments secured by the Chinese Government, and further the Viceroy sanctioned, at their request, the liquidation of King-qua's debts. In fact, through firmness of purpose combined with a nominal submission