Pacific Trade Growth in 1849

From The Chinese Question: The Gold Rushes and  Global Politics, by Mae Ngai (W. W. Norton, 2021), Kindle pp. 23-25:

Even as the forty-niners poured in from the eastern United States, California’s Pacific connections grew. Who would feed and provision the masses of gold seekers? There were entrepreneurs among the forty-niners, like Robert LeMott, who quickly sold a stock of pants and nails he had brought from Pennsylvania. But emigrants from the East could bring only small amounts of goods with them, and there was little farming in California to support the forty-niners, least of all in the hills. Most American merchants who sold provisions and amenities during the gold rush dealt in imported goods—dried fish and beef jerky, canvas and clothing, tools, lumber, candles, coffee, livestock, and even prefabricated houses—from Honolulu, Valparaiso, and Oregon; from Hong Kong and Sydney. LeMott, who speculated broadly, invested in clothing, especially that which was “heavy, well made, and of dark colors.” He wrote that merchants were making a 50 percent profit on everything they sold. Or more: in 1851 over 300,000 barrels of foreign flour—mostly from Chile—entered San Francisco, selling at an average price of thirteen dollars per barrel, compared to one dollar a barrel in New England.

The schooner Julia exemplified the changing Pacific trade of the era. She was a prize ship seized during the Mexican war, bought at auction by an American in December 1847 and registered in Honolulu. A decline in the number of Pacific whaling ships calling at Hawaiian ports had created an economic slump there in the spring of 1848, but the gold rush opened new opportunities, according to the Polynesian, for “an immense market for our products.” From June to October 1848, nearly thirty ships left Honolulu for San Francisco, carrying all manner of goods and provisions. The Julia’s voyage that summer commanded payments of $30,000 for cargo shipped by the Honolulu firm of Skinner and Company, which chartered the ship, and hefty sums from consignees, including $50,000 for Starkey Janion and Company and $6,700 for the Hudson’s Bay Company—all paid in gold. Soon the Julia would add a Honolulu-Guangzhou leg to her journeys across the Pacific.

The Julia’s transpacific travels linked Old and New World trade by connecting California to a longer history of British and American interests in China. The Hudson’s Bay agent in San Francisco who sent the gold sample to Hong Kong for advice on its quality knew it was much faster to get from San Francisco to Hong Kong than to London. The San Francisco-Honolulu-Hong Kong connection also was one of the main ways that people in both Hong Kong and California received news about each other. Just as the Hong Kong paper Friend of China reprinted news from California that was reported in the Honolulu Polynesian, the San Francisco newspaper the Californian reprinted news from the Friend of China, which traveled via Honolulu.

The gold rush dramatically changed the nature of the U.S.-China trade. Yankee merchants in Guangzhou and Hong Kong, anchored in the traditional U.S.-China trade to Boston and New York via the Indian and Atlantic Oceans, had already begun to establish transpacific routes in the 1830s and ’40s. They linked China to Hawaii and then to California, which was less a final destination than a transshipment point for goods headed to Acapulco, Valparaiso, or, via the Horn, New York. The gold rush represented a new opportunity for merchants in Hong Kong—both Euro-Americans and Chinese—to export diverse goods to California.

Hong Kong was a British colony and a free port—that is, imported goods from one place could be unloaded and reloaded for export to another place without payment of customs duty—and as such it quickly became the premier Asian entrepôt for both goods and emigrants headed for the gold mountains. For the year 1849 alone, twenty-three vessels exported nearly five thousand tons of goods from Hong Kong to San Francisco, including sugar, rice, and tea; beer, coffee, cigars, and chocolate; hats and clothing; furniture and canvas; tools and implements; timber logs and planks, window frames, bricks, and marble slabs. In 1849 Chinese imported and erected some 75 to 100 buildings, modular designs of premade frames and constructed with interlocking camphor wood panels. Most of these were built in San Francisco—including John Frémont’s home—but some were erected in the interior. One such “Chinese house” built in Double Springs, Calaveras County, was used as the county courthouse, then as the post office, and later as a chicken coop. In the early 1850s, Hong Kong merchants shipped thousands of blocks of granite, along with Chinese workers, for building the homes and businesses of San Francisco’s new elites.