The Taiping Rebellion broke out in Canton in 1851 and graduallyspread northwards. At about the same time the “Small Swords，” abranch of the Triad Society， began its operations and succeeded incapturing Amoy. This society was repudiated by the Taipings because itdid not hold the same religious tenets and allowed the use of opium.
The Rebels Seize the CityIn 1853 a small body of these rebels came up to Shanghai， andby the following ruse obtained possession of the Chinese city. Early inthe morning of September 7th， which happened that year to be the dayof the Autumnal Sacrifice to Confucius， when the gates were opened600 men rushed in with the crowd going to witness the sacrifice， andattacked the Yamens. The city magistrate was put to death and theTaotai was kept under guard in his own residence. Sympathizers in thecity threw bundles of red cloth into the streets which the rebels usedfor making turbans， and from this headgear they became known as the“Hung T"ou” or “Red Heads.” The chief leader of the rebels was a mannamed Lew， a Cantonese who had been a sugar broker and who hadestablished the Triad Society in Shanghai a few years before. He was anemaciated opium smoker， but was reputed to be a man of capacity andresolution. The most active spirit， if not the actual leader， was a mannamed Chin-a-lin.
General dissatisfaction with the Government is a sufficientexplanation of the willingness of the people to support a movementhaving as its objeck the overthrow of the Manchus.
Before long， dissension broke out between two factions of therebels， the Cantonese and the Fukienese， the former claiming thatthe latter had obtained the greater share of the plunder. This led toincreased disorder， until the quarrel was settled by a compromise.
Two gentlemen from the Settlement， Dr. Hall and Mr. CaldecottSmith， succeeded in rescuing the Taotai. They entered the city andhaving gained access to the Taotai， disguised him and let him down byropes from the city wall. He was first taken to the home of Dr. M. T.
Yates， a missionary living close to the wall， and later was given refuge inMessrs. Russell and company"s Hong.
The Imperialists Attempt to Retake the CityThe Taotai， realizing what was in store for him from the PekingGovernment， attempted to regain favour by recapturing the city withthe aid of an Imperialist force which had made its headquarters on theSoochow Creek， a little above the Sinza Bridge. The Imperialists mighteasily have reduced the city， had it not been that supplies of all sortsfound their way inside of the city walls through the Settlement.
Wu Taotai purchased a small ship and fitted her out as a warvessel， and with that and some war junks that had come down fromSungkiang， bombarded the city in December， 1853 ， from the waterfront. Landing parties set fire to the Nantao suburb， but the attempt tobreach the walls was unsuccessful.
Shortly before this， the Imperialists， hearing that the rebels wereobtaining supplies of guns from a foreign firm， determined to invadethe Settlement and secure possession of them. A party penetrated as faras the Custom House， and was in the act of carrying off the guns whensome men from H. M. S. “Spartan” appeared on the scene and drovethe invaders away.
The Taotai was desirous of obtaining the aid of the Settlement andthe foreign Powers in driving the rebels out of the city， but the foreignauthorities deemed it wiser to adopt the policy of neutrality. Thisneutrality， however， as far as business was concerned， was not strictly，observed， and trade was carried on more or 1ess openly with bothsides.
The little community in the Settlement passed through an excitingperiod. Both Imperialists and rebels encroached upon the westernboundary， and missiles often fell within the Settlement area.
The hospital， situated on Shantung Road under the managementof Dr. Lockhart， was often in the line of fire but escaped from beingattacked， and the wounded from both Sides received treatment withinits walls.
Assaults by soldiers on foreigners who went into the westerndistrict were frequent， and the New Park and Race Course， situatedwhere Lloyd Road now is， became a dangerous locality.
Formation of a Volunteer CorpsThe peril arising from the proximity of the Imperialist campon the Soochow Creek and from the rebels in Shanghai city made itnecessary to provide some sort of a defence force for the Settlement.
On April 12th，1853， a general meeting of the whole communitywas convened， at which were present the Consuls and Naval Officers ofthe three Treaty Powers， England， France and America ； Mr. Alcock wasin the chair. It was determined to adopt a policy of armed neutralityand for that purpose to organize a volunteer corps.
Captain Tronson of the Second Bengal Fusiliers was appointed incommand， and immediately took in hand the drilling of the force.
Thus the Shanghai Volunteer Corps came into being， a forcewhich was destined in succeeding years to play an important part inthe defence of the International Settlement.
The Battle of Muddy FlatThe newly organized corps did not wait long for its baptismof fire， and soon saw active service in hostilities with the Imperialistforces.
The Provincial Judge and Governor of the Kiangsu Province，a Manchu official， named Keih-er-hangah（ Koerhangah） had beenappointed commander-in-chief of the camp at Sinza， consisting ofbetween twenty and thirty thousand men. Being a civil official， hefound it difficult to control the soldiers and camp followers.
The nearness of the camp to the western boundary of theSettlement brought about a grave situation， as bands of soldiers werecontinually invading the Settlement and committing serious assaultson the foreign residents. Moreover， a target had been erected so close tothe western boundary that stray shots frequently endangered the livesof foreigners using the Race Course， the western stretch of which wasat that time on the present Thibet Road.