The story of the development of the globe is part explorer and part trader. Exploring to see what there is and how wonderful the countries of the world are and that continues to be the best and romantic version of why people go travelling. The other reason is to be a trader and look for profit and that transforms countries. In the book the Opium War by Brian Inglis published by Hodder and Stoughton, London, England, 1976 he examines the United Kingdom relationship to India and China. Ever since the Portguese and Dutch traders went to the Indies and brought back spices at great profit, there was a motivation to see what else can be brought to markets to make profits. In England,companies were set up to do that and the most famous is the East India Company. The company had the rights to trade with India and fabrics, spices and tea came to England. Orginally tea was expensive, but duties were lowered and soon the masses were drinking tea which resulted in tea imports went from 1 million pounds to 20 million pounds. This was good for everyone, tea became a staple in England, the farmers were benefiting from increased usage and the Raj or Moguls enjoyed the tax on the tea to remain living well. In time, the East India Company was not making as much money as they thought they should or wanted, they were making money but not the 40% return on investment. People found about the poppy plants and opium and originally it was used on a small level or a small market for the effects are the same as they are now. It turns out there was a small market but it could grow bigger in China who had 300 million people in the 1830s.

The traders were interested in profit, they began slowly at first to bring in opium chests to China for silver, then the silver went back to England and it was not long the revenues for the country of England were dependant on the East India Company. In the book, the author reveals various senior members of government and what their reaction is and should be to the trade. Officially it was we know it is being harvested, but once it went on a ship away from India (by this time, England had taken over the administration of India) it was washed from their responsibilities. What of course is interesting is when the British traders included the famous firm Jardine Matheson (the biggest seller) irked the Chinese who wanted the trade stopped for the Chinese were running out of silver to pay for the opium, the British sent in their Navy which was the most powerful Navy in the world to protect British interests.

Linking to dividend paying stocks, all investors want to have a good return and it would be nice to have 40% returns all the time, however to achieve those high returns means people lives in general need to suffer. If you have a good conscious try to achieve lower returns in which more people benefit from the products and services or the relationship although not equal is more balanced. If you achieve returns above 40% on a consistent basis you may begin to rational similar to the British and the opium trade with China. The same arguments are being used where marijuana is becoming more legal.

There are more questions than answers, till the next time – to raising questions.