It’s important for Americans to understand that many elite colleges received endowments tied to the Old China Trade, including opium smuggling, because it uncovers the complex and often morally fraught origins of wealth, power, and educational institutions in the U.S. Here’s why this matters:

First, the Old China Trade, particularly from the late 18th to mid-19th century, was a significant driver of early American wealth. Merchants traded goods like furs and sandalwood initially, but many later turned to opium (often sourced from Turkey or India) to exchange for Chinese tea, silk, and porcelain. The profits were staggering and helped build the fortunes of families like the Perkins and Forbes in Boston, who then channeled some of that wealth into institutions, including endowments for elite colleges like Harvard and Yale. Knowing this shows that the financial bedrock of some prestigious schools isn’t as “clean” as often assumed—it’s tied to a trade with deep ethical implications.

Second, this history exposes the early dynamics of globalization and its moral costs. The opium trade didn’t just enrich American merchants; it caused widespread addiction and social devastation in China, contributing to events like the Opium Wars. For Americans, understanding this link means confronting the nation’s role in global history—not just as a beneficiary but as a participant in exploitative practices. It encourages a more honest reckoning with history, moving beyond simplistic narratives like “American exceptionalism.”

Third, it has implications for today’s society. The wealth from the Old China Trade didn’t vanish—it turned into banks, real estate, and endowments that still shape power structures. Recognizing this origin story prompts questions about wealth concentration, educational inequity, and how historical legacies affect modern systems. For instance, why do some elite colleges with massive endowments still struggle with accessibility and diversity? This awareness can fuel discussions about fairness in education and economic policy.

Finally, teaching this history fosters critical thinking. History isn’t black-and-white—knowing these endowments came from opium profits doesn’t erase the good these universities have done, but it adds nuance. It shows that positive outcomes can stem from problematic means, helping people grapple with modern ethical dilemmas, like corporate ethics or inequities in global trade, with greater clarity.