Europe and America have been trading in China on an extended scale since in 1842 the Nanking Treaty opened up Canton and four other ports. Surprisingly few traders have learned the language. The home-rule principle has been recognized, and the Chinese have been allowed to run the trade in their own way on the compradore and shroff system. The foreign firm takes into its employ at a percentage, with a guaranteed minimum, a Chinese compradore, who speaks English, and who is bonded by the Chinese, and the compradore takes into his employ a shroff cashier, who is bonded to him by Chinese. The compradore pays the wages of his Chinese staff. The foreigner (Si Yang Jin--West Sea people) must deal with the Chinese customers only through the compradore, and the compradore must under no circumstances appeal to the head of the foreign firm in London, San Francisco, etc. He must deal with the agent or branch in the China port, in whose office he is located on the first floor, with a Chinese staff as large as the foreign staff up-stairs. One who enters the offices of the Pacific Mail, American (International) Bank, Standard Oil, P. & O., Butterfield and Swire, Jardine’s, Fearon’s, and other companies in China, might think at first that the concern was Chinese. No one but Celestials is to be seen. This system is an approximation of two views. The Chinese might desire to handle his own trade, in which case the compradore would set up for himself, and buy sewing-machines, oils, machinery, tobacco, cotton, etc., direct from the foreign agent at the treaty port, or he could ignore the foreign agent and send his Chinese buyer across to San Francisco, or over to London. Or the foreigner might learn the language, dismiss his compradore, and try to sell direct to the Chinese consumer and Chinese merchant.