Most of the trade between the European …

Years: 1840 - 1851

Most of the trade between the European and Asian merchants is handled by Chinese middlemen, who speak the necessary languages and know the needs of their customers.

Many of the middlemen had trained as clerks in the European trading firms of Malacca.

With their experience, contacts, business acumen, and willingness to take risks, the middlemen are indispensable to the merchants.

For the Chinese middlemen, the opportunities for substantial profit are great; but so are the risks.

Lacking capital, the middlemen buy large quantities of European goods on credit with the hope of reselling them to the Chinese or Bugis ship captains or themselves arranging to ship them to the markets of Siam or the eastern Malay Peninsula.

If, however, buyers cannot be found or ships are lost at sea, the middlemen face bankruptcy or prison.

Although the merchants also stand to lose under such circumstances, the advantages of the system and the profits to be made keep it flourishing.

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