The rebels advanced under cover of thickets， grave mounds andbuildings towards the South Gate， held by Captain Budd. When theattacking force came out into the open they were met with a brisk fireof rifles and of large guns which had been brought from the ships.
Driven from the South Gate， the Taipings moved toward thesouth-west corner of the wall， but there encountered a telling fire fromthe Marines and Sikhs， and the attacking force， numbering about 3，000，was obliged to retire.
During the night， parties were sent out from the city to fire thewestern and southern suburbs， which afforded shelter for an attackingforce.
Under cover of darkness the Taipings managed to get into Nantao，inhabited by leading Chinese merchants and containing a 1arge supplyof merchandise. Here they seized the Custom House， and proceeded topillage and massacre. The French force， as a defensive measure， set fireto the whole of this rich suburb.
Settlement ThreatenedOn the morning of the 20th， the Taipings advanced to the WestGate， and then turned toward the Settlements， whose defence wasin the hands of Colonel March. No sooner had they planted theirstandards close to the Race Course than they were attacked by shellsand rockets. The river despatch boat “Nimrod” sent shell after shellover the Settlements far out into the fields beyond， and the “Pioneer，”
which had taken up her position on the Soochow Creek， attackedthe rebel force with 13-inch shells. After submitting to a two-hourbombardment the rebels retreated towards Siccawei.
Within the Settlements， the Volunteers under Colonel Nealeguarded the barricades which had been erected at the entrance toevery street on the western boundary. Mr. Forrest， the Interpreter tothe British Consulate， rode out to the camp at Siccawei， accompaniedby an orderly named Phillips with a letter to the rebel chiefs in whichthey were told that the city of Shanghai was under the protection ofthe British and French， and that they could not be permitted to enterit. He was civilly received and invited into the camp. This invitationhe did not think it wise to accept， and departed after 1eaving hisdespatches.
Withdrawal of the RebelsIn consequence of the severe check suffered by his troops ChungWang decided to withdraw from Siccawei. Before doing so， however， hesent a letter to the foreign Consuls， threatening to stop the silk and teatrade if any further aid was given to the Imperialists， and stating thathe had come at the invitation of certain foreigners who sympathizedwith the Taipings， and that his object had been to negotiate a treaty.
On the next day， when Mr. Forrest returned to Siccawei for his answer，he found only a few ill-clad soldiers at the rebel camp. The army hadevacuated， leaving some stuffed straw figures to represent soldiers.
With the departure of Chung Wang， Shanghai enjoyed a briefrespite. Had it not been for the presence of the foreign forces gatheredin Shanghai at that time in connection with the expedition of the Alliesto the North， its fate might have been sealed.
Influx of Chinese into the SettlementsJust as when the “Small Swords” seized Shanghai there had been agreat influx of Chinese into the Settlements， so it was at the approachof the Taipings， only on a much 1arger scale. Officials and merchants，rich and poor， all alike rushed in， seeking a place of safety. Everyavailable space was soon occupied， even the creeks and the river beingcrowded with boats of all descriptions. The population of the nativecity fled into the Settlements or across to Pootung. Twenty dollarsbecame the regular price for conveying people across the river in asampan.
Soon the Chinese population had increased to 300，000 and thecost of living advanced rapidly. Real estate values also began to soar，and land purchased originally for ￡46 to ￡74 per acre was sold for￡8，000 to ￡12，000 per acre.
Visit of Vice-Admiral Sir James Hope to Nanking， February， 1861
After the war in the North came to an end， Vice-Admiral SirJames Hope， in February， 186 1， proceeded to Nanking and had aninterview with Tien Wang （Heavenly Emperor） i. e. ， Hung Hsiuch"uan，who was persuaded to agree that his forces shoud not approachShanghai nearer than a hundred li， or thirty miles. This promise，however， was given for a year only， and nothing was said of what mighthappen after that time had expired.
Shanghai consequently enjoyed a year of peace and steamers beganto ply on the Yangtze， which was opened to trade as far as Hankow.