Horatio Nelson Lay
Encyclopedia
Horatio Nelson Lay was a British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 diplomat, noted for his role in the ill-fated "Lay-Osborn Flotilla" during the Taiping Rebellion
Taiping Rebellion
The Taiping Rebellion was a widespread civil war in southern China from 1850 to 1864, led by heterodox Christian convert Hong Xiuquan, who, having received visions, maintained that he was the younger brother of Jesus Christ, against the ruling Manchu-led Qing Dynasty...

.

Early life

Horatio Nelson Lay was born in Forest Hill to George Tradescant Lay
George Tradescant Lay
George Tradescant Lay was a British naturalist, missionary and diplomat.Lay was a naturalist on the English sailing ship HMS Blossom under the command of Captain Frederick William Beechey from 1825 to 1828, where he collected specimens in the Pacific including California, Alaska, Kamchatka, China,...

, a naturalist and missionary, who served as British consul in the treaty port of Amoy
Amoy
Xiamen, or Amoy, is a city on the southeast coast of China.Amoy may also refer to:*Amoy dialect, a dialect of the Hokkien lects, which are part of the Southern Min group of Chinese languages...

 in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

. Lay's father inspired him to go to China, but he died in 1845 before Lay had a chance to join him.

In 1847, Lay was sent to China to study Chinese
Chinese language
The Chinese language is a language or language family consisting of varieties which are mutually intelligible to varying degrees. Originally the indigenous languages spoken by the Han Chinese in China, it forms one of the branches of Sino-Tibetan family of languages...

 under the German linguist and missionary Karl Gützlaff
Karl Gützlaff
Karl Friedrich August Gützlaff , anglicised as Charles Gutzlaff, was a German missionary to the Far East, notable as one of the first Protestant missionaries in Bangkok, Thailand and for his books about China. He was one of the first Protestant missionaries in China to dress like a Chinese...

. Lay's proficiency in the Chinese language soon earned him promotion in the British consular service and in 1854 he was appointed acting Vice-Consul in Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...

. The same year, Lay took part in the founding of the Imperial Maritime Customs Service
Chinese Maritime Customs Service
The Chinese Maritime Customs Service was a Chinese governmental tax collection agency and information service from its founding in 1854 until its bifurcation in 1949 into services operating in the Republic of China on Taiwan, and in the People's Republic of China...

 and he became the first Inspector General of the service the following year.

During the Second Opium War
Second Opium War
The Second Opium War, the Second Anglo-Chinese War, the Second China War, the Arrow War, or the Anglo-French expedition to China, was a war pitting the British Empire and the Second French Empire against the Qing Dynasty of China, lasting from 1856 to 1860...

, Lay served as Lord Elgin's
James Bruce, 8th Earl of Elgin
Sir James Bruce, 8th Earl of Elgin and 12th Earl of Kincardine, KT, GCB, PC , was a British colonial administrator and diplomat...

 interpreter and he participated in the negotiation of the Sino-British Treaty of Tianjin
Treaty of Tientsin
Several documents known as the "Treaty of Tien-tsin" were signed in Tianjin in June 1858, ending the first part of the Second Opium War . The Second French Empire, United Kingdom, Russian Empire, and the United States were the parties involved...

. Even though Lay was not in charge of designing the actual treaty, he was instrumental in intimidating the Qing
Qing Dynasty
The Qing Dynasty was the last dynasty of China, ruling from 1644 to 1912 with a brief, abortive restoration in 1917. It was preceded by the Ming Dynasty and followed by the Republic of China....

 delegation into signing it despite the highly unfavorable terms
Unequal Treaties
“Unequal treaty” is a term used in specific reference to a number of treaties imposed by Western powers, during the 19th and early 20th centuries, on Qing Dynasty China and late Tokugawa Japan...

 to the Chinese side. Among other things, Lay humiliated the Qing representative Qiying
Qiying
Qiying was a Manchu statesman during the Qing Dynasty.His name in Chinese means "brave man of about 60 or 70".-Background and early career:...

 by exposing recently captured documents, which revealed Qiying's hostility to the British. The disgraced Qiying later committed suicide.

Lay-Osborn Flotilla

During the Taiping Rebellion
Taiping Rebellion
The Taiping Rebellion was a widespread civil war in southern China from 1850 to 1864, led by heterodox Christian convert Hong Xiuquan, who, having received visions, maintained that he was the younger brother of Jesus Christ, against the ruling Manchu-led Qing Dynasty...

 the Chinese government wished to regain control over Nanjing
Nanjing
' is the capital of Jiangsu province in China and has a prominent place in Chinese history and culture, having been the capital of China on several occasions...

, which had been captured by the rebel forces in 1853 and declared their capital, but lacked the necessary ships to bring troops down the Yangtze River
Yangtze River
The Yangtze, Yangzi or Cháng Jiāng is the longest river in Asia, and the third-longest in the world. It flows for from the glaciers on the Tibetan Plateau in Qinghai eastward across southwest, central and eastern China before emptying into the East China Sea at Shanghai. It is also one of the...

 and to provide fire support. The Chinese government turned to the British for assistance, and British agreed to provide assistance in order to bring stability to their commerce in China.

The Chinese Emperor, exiled to Jehol
Jehol
Jehol could mean either a province or a city:* Jehol Province, former province in northeastern China* Chengde, the capital of above provinceNamed after the province:* Jehol Biota* Jeholodens* Jeholopterus* Jeholornis* Jeholosaurus...

, agreed to a proposal presented by British ambassador Sir Frederic Bruce in July 1861 to purchase British gunboat
Gunboat
A gunboat is a naval watercraft designed for the express purpose of carrying one or more guns to bombard coastal targets, as opposed to those military craft designed for naval warfare, or for ferrying troops or supplies.-History:...

s. Robert Hart, interpreter of Imperial Maritime Customs Service
Chinese Maritime Customs Service
The Chinese Maritime Customs Service was a Chinese governmental tax collection agency and information service from its founding in 1854 until its bifurcation in 1949 into services operating in the Republic of China on Taiwan, and in the People's Republic of China...

 is given credit for creating the proposal. Prince Gong, the head of the Zongli Yamen
Zongli Yamen
Zongli Yamen was the government body in charge of foreign affairs in imperial China during the late Qing dynasty. It was established by Prince Gong in 1861, following the Convention of Peking. It was abolished in 1901 and replaced with a Foreign Office of ministry rank.The former site of the...

, appointed Lay as Inspector General of the new flotilla. Lay left China for England on 14 March 1862 with written instructions from Prince Gong.

Queen Victoria agreed to the proposal on 2 September 1862 and gave permission to equip the vessels and hire crews. Lay appointed Captain Sherard Osborn
Sherard Osborn
Sherard Osborn , was a Royal Navy admiral and Arctic explorer.-Early life:Born in Madras, he was the son of an Indian army officer...

 as Commander of the flotilla.

It was felt that if the flotilla was to fly an internationally recognized ensign
Ensign
An ensign is a national flag when used at sea, in vexillology, or a distinguishing token, emblem, or badge, such as a symbol of office in heraldry...

 this might reduce the risk of capture and imprisonment, however, the British Admiralty would not sanction such an ensign unless China gave its explicit consent to such. Although the Tongzhi Emperor
Tongzhi Emperor
The Tongzhi Emperor , born Aisin-Gioro Dzai Šun, was the tenth emperor of the Manchu-led Qing Dynasty, and the eighth Qing emperor to rule over China, from 1861 to 1875. His reign, which effectively lasted through his adolescence, was largely overshadowed by the rule of his mother, the Empress...

 had decreed that the Chinese flag would be a yellow triangle with a blue dragon trying to catch a red ball, Prince Kong did not mention this in his written instructions to Lay, and thus Lay himself designed an ensign to be used by the flotilla.

On 13 February 1863 the “Lay-Osborn” flotilla, with seven steam cruiser
Cruiser
A cruiser is a type of warship. The term has been in use for several hundreds of years, and has had different meanings throughout this period...

s and a supply ship left England, arriving in China in September 1863. Upon reaching China, Osborn refused to take any orders from local Chinese officers, stating that his agreement with Lay stipulated that any Chinese orders must come directly from the Tongzhi Emperor, as transmitted via Lay. The Imperial court refused to ratify this, and Osborn resigned in pique on 9 November 1863, disbanded the flotilla, and sent the ships back to England without them having fired a shot. Lay was fired that same year by the Chinese government and replaced with Sir Robert Hart.

Subsequent career

In 1864, Lay resigned from the diplomatic service and returned to England where he engaged in financial affairs.

In December 1869, Lay was hired as an foreign advisor by the Meiji government of the Empire of Japan
Empire of Japan
The Empire of Japan is the name of the state of Japan that existed from the Meiji Restoration on 3 January 1868 to the enactment of the post-World War II Constitution of...

 to assist in raising its first foreign loan, for 1 million pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

 which was needed to finance the construction of Japan's first railways and telegraph lines. Having led the Japanese government to believe that he would raise the money through private investors, Lay instead floated Japanese sovereign bonds on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...

, arranging to have the interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....

 on the bonds credited to his private accounts. When the Japanese government discovered the fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...

, they cancelled his contract and appointed the British Oriental Bank in his place.

Two of Lay's brothers (Walter Thurlow Lay (1840–1917), Amoy Lay (1846–1911), two of his nephews (William George Lay (1862–1921), son of W.H. Lay, and Harry Lay (1894-?), son of Amoy Lay), and one grandnephew (Arthur Croall Hyde
Hyde (surname)
Hyde is a surname, and may refer to:* Anne Hyde , English noblewoman, mother of two British queens, Mary II and Anne* Arthur M. Hyde , American politician, Governor of Missouri, U.S. Secretary of Agriculture* DeWitt S...

 Lay (1900-) also served in the Chinese Maritime Customs Service
Chinese Maritime Customs Service
The Chinese Maritime Customs Service was a Chinese governmental tax collection agency and information service from its founding in 1854 until its bifurcation in 1949 into services operating in the Republic of China on Taiwan, and in the People's Republic of China...

.
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