that such is the commercial integrity of both Russian and Chinese merchants in Mongolia, that although racial and religious antagonisms are strongly developed between them, they nevertheless often leave their balances outstanding for twelve months. Thus, when I was on the North-West Mongolian plateaus in Ig10, I frequently found Russian and Chinese traders who meet perhaps once a year in some wild spot in Mongolia, and exchange wool for silver or brick tea. If the accounts did not quite balance, they were left over for settlement till next year, and meanwhile there was nothing except mutual honour to ensure the fulfilment of obligations. The Russian traders who had also been in Manchuria told me that they could do this with a Chinaman but never with a Japanese.
(3) Russtan and Chinese Systems of Credit.
a. Chinese Hoshun Credit.—Transactions in cash, credit, and barter are carried on in Mongolia by the Russian and Chinese merchants in their dealings with the Mongol flock-owners and with each other. Of recent years credit terms have been largely induced by the heavy silver tribute levied on the Mongol khans by the Chinese officials through the medium of their Hoshuns. A system has therefore come into existence known as the Hoshun Credit System. The khan of the Hoshun, who is responsible for the tribute to the Chinese authorities, frequently obtains from the Chinese merchants an advance of silver with which he pays his tribute. In return for this he gives them the right to exploit his subjects, and to recoup their loaned capital with whatever interest they can get during that period. The debt is therefore paid off by the Mongols in the produce
