The "Small Swords" Occupy Shanghai, 1853.

The Taiping Rebellion broke out in Canton in 1851 and gradually spread no rthwards. At about the same time the "Small Swords," a branch of the Triad Society, began its operations and succeeded in capturing Amoy. This society was repudiated by the Taipings because it did not hold the same religious tenets and allowed the use of opium.

In 1853 a small body of these rebels came up to Shanghai, and by the following ruse obtained possession of the Chinese city.

Early in the morning of September 7, which happened that year to be the day of the Autumnal Sacrifice to Confucius, when the gates were opened, 600 men rushed in with the crowd going to witness the sacrifice, and attacked the Yamens. The city magistrate was put to death and the Taotai was kept under guard in his own residence. Sympathizers in the city threw bundles of red cloth into the streets which the rebels used for making turbans, and from this head-gear they became known as the "Hung T'ou" or "Red Heads." The chief leader of the rebels was a man named Lew, a Cantonese who had been a sugar broker and who had established the Triad Society in Shanghai a few years before. He was an emaciated opium smoker, but was reputed to be a man of capacity and resolution. The most active spirit, if not the actual leader, was a man named Chin-a-lin.

General dissatisfaction with the Government is a sufficient explanation of the willingness of the people to support a movement having as its object the overthrow of the Manchus.

Before long, dissension broke out between two factions of the rebels, the Cantonese and the Fukienese, the former claiming that the latter had obtained the greater share of the plunder. This led to increased disorder, until the quarrel was settled by a compromise.

Two gentlemen from the Settlement, Dr. Hall and Mr. Caldecott Smith, succeeded in rescuing the Taotai. They entered the city and having gained access to the Taotai, disguised him and let him down by ropes from the city wall. He was first taken to the home of Dr. M. T. Yates, a missionary living close to the wall, and later was given refuge in Messrs. Russell and Company's Hong.

The Taotai, realizing what was in store for him from the Peking Government, attempted to regain favour by recapturing the city with the aid of an Imperialist force which bad made its headquarters on the Soochow Creek, a little above the Sinza Bridge. The Imperialists might easily have reduced the city, had it not been that supplies of all sorts found their way inside of the city walls through the Settlement.

Wu Taotai purchased a small ship and fitted her out as a war vessel, and with that and some war junks that had come down from Sungkiang, bombarded the city in December, 1853, from the water front. Landing parties set fire to the Nantao suburb, but the attempt to breach the walls was unsuccessful.

Shortly before this, the Imperialists, hearing that the rebels were obtaining supplies of guns from a foreign firm, determined to invade the Settlement and secure possession of them. A party penetrated as far as the Custom House, and was in the act of carrying off the guns when some men from H.M.S. "Spartan" appeared on the scene and drove the invaders away.

The Taotai was desirous of obtaining the aid of the Settlement and the foreign Powers in driving the rebels out of the city, but the foreign authorities deemed it wiser to adopt the policy of neutrality. This neutrality, however, as far as business was concerned, was not strictly observed, and trade was carried on more or less openly with both sides.

The little community in the Settlement passed through an exciting period. Both Imperialists and rebels encroached upon the western boundary, and missiles often fell within the Settlement area.

The hospital, situated on Shantung Road under the management of Dr. Lockhart, was often in the line of fire but escaped from being attacked, and the wounded from both sides received treatment within its walls.

Assaults by soldiers on foreigners who went into the western district were frequent, and the New Park and Race Course, situated where Lloyd Road now is, became a dangerous locality.

The peril arising from the proximity of the Imperialist camp on the Soochow Creek and from the rebels in Shanghai city made it necessary to provide some sort of a defence force for the Settlement.

On April 12, 1853, a general meeting of the whole community was convened, at which were present the Consuls and Naval Officers of the three Treaty Powers, England, France and America; Mr. Alcock was in the chair. It was determined to adopt a policy of armed neutrality and for that purpose to organize a volunteer corps. Captain Tronson of the Second Bengal Fusiliers was appointed in command, and immediately took in hand the drilling of the force.

Thus the Shanghai Volunteer Corps came into being, a force which was destined in succeeding years to play an important part in the defence of the International Settlement.

The newly organized corps did not wait long for its baptism of fire, and soon saw active service in hostilities with the Imperialist forces.

The Provincial Judge and Governor of the Kiangsu Province, a Manchu official, named Keih-er-hangah (Koerhangah) had been appointed commander-in-chief of the camp at Sinza, consisting of between 20 and 30,000 men. Being a civil official, he found it difficult to control the soldiers and camp followers.

The nearness of the camp to the western boundary of the Settlement brought about a grave situation, as bands of soldiers were continually invading the Settlement and committing serious assaults on the foreign residents. Moreover, a target had been erected so close to the western boundary that stray shots frequently endangered the lives of foreigners using the Race Course, the western stretch of which was at that time on ttle present Thibet Road.

Owing to the danger thus arising from the location of the camps in the immediate vicinity of the Race Course, it was decided to request General Keih to remove his troops to the southern side of the native city, and on the morning of April 4, 1854, Consul Alcock sent an ultimatum, stating that if the camps were not removed before four o'clock in the afternoon, they would be attacked by the foreign forces. General Keih replied to this asking for delay, and entreating Consul Alcock not to resort precipitately to arms. His answer was regarded as a refusal to evacuate, and at three o'clock in the afternoon the various units of the foreign force assembled in front of the English Church, standing on the site of the present Holy Trinity Cathedral.

Captain Kelly of the U.S.S. "Plymouth" gives the following estimate of the numbers employed, "At 3.00 p.m. we landed, the English landing about 200 men, and our ships 75; the Volunteers, being all English, joined their countrymen, while the Americans with two field pieces placed themselves under my command, increasing my force to a hundred-the English to 250. About 30 sailors from the American merchant vessels were added to the American force." Altogether the attacking unit numbered 380 men.

Captain O'Callaghan of H.M.S. "Encounter," with Lieut. Roderick Dew as second in command, was in charge of the British contingent, the Volunteers being under Ex-Lieut. T. F. Wade, H.B.M.'s Vice-Consul; Captain Kelly was in charge of the American contingent.

At 3.30 p.m., with drums beating and flags flying, the advance was made up Park Lane (now Nanking Road) and the adventurous little army proceeded as far as the present junction of Nanking and Chekiang Roads (at that time the eastern stretch of the Race Course) and there the column halted. It was hoped that this display of force might be sufficient to cause General Keih to pay some attention to the ultimatum. When it was discovered that the situation was unchanged and that the small band would have to attack a force of some twenty thousand men, there was, according to an eyewitness, "a marked decline in the exuberance which had characterized the march out."

It was decided that the force should be split into two divisions, the Americans following the bend of the Race Course, and veering to the left so as to deliver a frontal attack on the camp, and the British proceeding straight ahead as far as possible, so as to take the enemy on the flank.

Mr. W. S. Wetmore, the eyewitness to whom we have referred, followed the movements of the Americans. They, with two guns, took up a position among the grave mounds, within two or three hundred yards of the camps in front of them. Precisely at four o'clock the engagement began, Captain Kelly opened with his guns, and the British did the same from the point which they had reached. No sooner had the guns begun to boom, when, according to Mr. Wetmore, one could see "the dreary waste of graves and mounds brighten up with scarlet spots moving rapidly in and out of the intricacies of the ground." These were the rebels from the city who had come to join in the fray and to assist in the attack on the Imperialists. The red turbans became more and more numerous, with the result that the Imperialists were seized with consternation and were soon in full retreat.

Captain Kelly immediately gave the order to charge, but his men were unex pectedly halted by a creek of mud and water four feet deep and 15 to 20 feet wide, which served as a moat to the camp parapets, six or seven feet high, on the far bank. As the force reached the brink of this creek, they were exposed to a lively fire, and were compelled to take cover again behind the grave mounds.

In a short time the humming of the bullets ceased, and for the Americans the battle was practically over. The creek which had checked the advance of the Americans was the Chow-king-pang which, in after years, formed a part of Defence Creek.

Turning to the British contingent, they had proceeded straight ahead and were able to cross the Chow-king-pang by a bridge. Then changing direction to the left they took the first camp in flank and delivered an assault. As it was defended by a cannon placed in the entrance, there were several casualties. The camp was reached, however, and Lieut. Dew was the first to enter it. After this there was little fighting as the Imperialists took to flight. The deserted camps were destroyed by fire.

Gallant as was the conduct of the small force against overwhelming odds, the determining factor causing the flight of the Imperialists was probably the sudden appearance of the rebels on the battlefield. There is some uncertainty as to whether the rebels took part in the operation of their own initiative, or whether the assistance of the rebel leaders had been invited by some of the foreigners.

Mr. Wetmore, while attributing the victory to the "unexpected co-operation of the rebels," thinks that General Keih, seeing the foreigners in earnest, may have given orders for his forces to retire.

The casualties of the British and American forces were two killed and 15 wounded, of whom two died later. The losses of the Imperialist troops were not more than 50.

This skirmish has always been known as the "Battle of Muddy Flat," but as it was fought in clear weather on perfectly dry ground, it is difficult to account for the origin of the name.

The battle produced the desired result, as the main force of the Imperialist army withdrew to the south side of the native city, and the western boundary of the Settlement was no longer disturbed by bands of marauding troops.

The native city remained in the hands of the "Small Swords," and it became evident that if the city was to be recaptured by the Imperialists, supplies from the Settlement must be cut off.

The French Admiral Laguerre held that the obstinate resistance of the rebels was due to foreign encouragement, and to supplies from the English Settlement, and criticized the English for not observing stricter neutrality.

When the rebels raised a battery near where Rue Tourane now is, Admiral Laguerre ordered it to be demolished, and upon their refusal to comply with his request, joined forces with the Imperialists in an attempt to take the city. An attack was made on the North Gate, close to the site of the present St. Joseph's Church, but although the French succeeded in making a breach in the walls and fought bravely, lack of support on the part of the Imperialists hindered them from accomplishing their object. The French casualties were two officers killed and four wounded, seven men killed and thirty-two wounded.

Later, a wall was built by the Imperialists from where the French Bund now is to where a bridge on Honan Road then crossed the Yangkingpang, to isolate the city from the Settlement. Cut off from supplies, the beleaguered city was soon reduced to sore straits, and the rebels evacuated it on February 17, 1854, as rapidly as they had entered, after having occupied the city for 17 months.

When the Imperialists obtained possession of the city, it was given over to three days' looting, and the eastern half was almost entirely destroyed by fire. The Imperialists showed no mercy to the rebels, and all who were captured were immediately executed.

The Settlement was affected in many ways by the struggle between the Impe rialists and the insurgents. Trade was greatly disorganized. The Taiping Rebellion, which is described in a later chapter, had closed the whole of the Yangtze basin from Chinkiang upwards, and the greater part of the Chekiang Province, so that there was no market for goods imported into Shanghai. Although the immediate vicinity of Shanghai had remained quiet, yet the feeling of uncertainty caused a decline in purchases. The result was that general imports, consisting mainly of cotton goods, remained unsold and accumulated in the merchants' godowns.

The amount of opium imported and sold, however, greatly increased at this time. The opium was delivered into receiving ships at Woosung and then smuggled into the country. Between 1847 and 1849 the average deliveries of opium amounted to 18,814 chests, the average value being $11,185,000 annually. In 1853 they had increased to 24,200 chests, valued at $14,400,000, and in the course of the next few years amounted to 33,069 chests.

Although conditions affected all imports except opium, the exports largely increased. Tea came to Shanghai, not by the Yangtze but over the mountains from Anhwei, Kiangsi, Fukien, and Chekiang. In 1853, 69,000,000 pounds were exported. This fell off in 1854 to 50,000,000 pounds, owing to the coming of the "Small Swords" to Shanghai, but increased again in 1855 to 80,000,000 pounds.

The same is true in regard to silk. In 1851, 20,360 bales were exported and in 1853, 58,319 bales. This was largely due to the fact that after Nanking fell into the hands of the Taipings the people were destitute and could no longer afford to purchase silk, and the output of the great silk producing district between Soochow and Hangchow was forced to seek a foreign market. Thus, for a considerable time, the exports exceeded the imports and this led to a large importation of silver dollars to balance the trade.

While Shanghai was in the hands of the Small Swords," all Imperial authority broke down. The Custom House was plundered and demolished and the Taotai was unsuccessful in his attempts to establish another place for the receipt of customs dues.

Many residents considered that as there was no longer any Imperial authority, it was not necessary to observe the Treaty. Neither the British nor the American officials concurred in this view, and held that the mere fact that the city had fallen into the hands of rebels was no just excuse for robbing the Chinese Government of its rights. It was arranged that both British and American Consuls should request their nationals to give guarantees for the payment of legal duties. This, of course, was not welcome to many of the merchants who were anxious to evade paying the regular charges. The French Consul, on the other band, intimated that he would clear ships of his nationality without calling on them to pay duties, and the Consuls of other nations, who were all merchants, took the same line.

The Customs authorities themselves were largely responsible for the confusion that arose, for they allowed vessels to enter and leave the port after making partial or no payment at all.

Wu Taotai made an attempt to set up a floating Custom House in the Whangpoo opposite what is now the Public Gardens, but this did not work well. He had not been allowed to re-establish the former Custom House in tbe Settlement, as it would have been subject to attacks from the rebels, and would have had to be defended. Claiming neutrality, the foreign merchants were unwilling to guard it and at the same time were equally unwilling to permit the Imperialists to protect it.

In January, 1854, the U.S. Vice-Consul gave notice that he would allow American ships to sail without requirmg the payment of duties, so long as ships of other nations were allowed to do so. Mr. Alcock, however, held out until the Taotai, being pressed for money, allowed a Bremen ship to clear on payment of only part of the duties.

On February 14, 1854, it was agreed that a Custom House should be placed on the Hongkew side of the Soochow Creek. As, however, it was discovered that certain ships managed to get in or to clear without paying dues, there was a determination on the part of many to regard Shanghai as a free port and to evade entirely the payment of duties.

Consul Alcock conceived the idea of bringing order out of chaos by placing the Chinese Customs under foreign supervision, so as to ensure integrity in administration. After consultation with the Taotai, the Consuls of the three Treaty Powers nominated delegates for the proposed foreign Inspectorate. The nominees were: Mr. T. F. Wade of the British consular staff, Mr. L. Carr of the American diplomatic service, and Monsieur A. Smith of the French consular service.

The Custom House was re-established on July 12, 1854, in a godown at the corner of Nanking and Kiangsi Roads. The new plan was successful beyond expectation and was a great improvement on the past corrupt native administration.

Mr. (afterwards Sir) Thomas Wade was later succeeded by Mr. H. A. Lay, who received from the Chinese Government the appointment of Inspector-General. The Imperial Maritime Customs, beginning thus at Shanghai, was, after the Taiping Rebellion, extended throughout China.

The promissory notes and securities for duties given by British and American merchants during the period when the Chinese Government was unable to make regular collections were eventually returned in 1855.