The Americans found their situation so unfavourable that for atime even the Consul was obliged to establisn his office in the BritishSettlement. Undoubtedly the exclusive privileges claimed by the Britishauthorities for their Settlement was the chief reason for the French andAmerican Governments wanting territory for the residence of theirown nationals.
The dissension between the first residents in regard to jurisdictionwas not， however， of so serious a nature as to cause real trouble. Ahealthy feeling grew up among the foreigners， and they recognizedfrom the start that they had similar interests， which could only beattained through a spirit of unity.
As we shall see later， in 1863 the American Settlement wasamalgamated with the British， and the present International Settlementcame into existence.
Acquisition of the Present British Consular SiteConsul Balfour， who at first was obliged to live in the nativecity， was anxious to acquire property in the Settlement for theBritish Consulate. At that time， according to the ruling of the HomeGovernment， the Consuls to foreign countries were not allowed topurchase land or erect buildings， but were obliged to carry on theirwork in rented Premises. In spite of this， Consul Balfour determined tosecure a proper site for the erection of consular offices.
On April 28th，1846 ， five months before he resigned， he madearrangements for the purchase of the Li Chia Chang property， northof the boundary of the Settlement， consisting of over a hundred mowof land， for ＄17，000. Not having authority from the Government， headvanced ＄4，000 of his own money. His successor， Mr. （afterwards Sir）
Rutherford Alcock， upon his arrival， proceeded with the matter andafter much difficulty persuaded the Home Government to sanctionthe purchase. In this way the splendidly situated piece of land nowoccupied by the consulate buildings was obtained， and on July 21st，1849， the consular offices were removed to this site.
The first Consulate， built in 185 2， was destroyed by fire onDecember 23rd， 1870， and most of the records were lost. The presentbuilding was erected in 1872.
The Making of The BundFrom time immemorial， trackers had used the tow path alongthe shore of the Whang-poo River and the Chinese authorities in thefirst Land Regulations issued by them reserved this right. A space of30 English feet was to be reserved between buildings erected on theforeshore and the edge of the river. Foreigners， therefore， when puttingup their buildings on river lots， drove in piles to that distance in frontof each lot， and filled it in. This was the origin of The Bund， now abeautiful promenade， but then a muddy road， not fit for walking. Oneof the features of Shanghai to-day is the wide open space between theriver and the buildings on the water front. It was secured， in the firstplace， not from any aesthetic sense， but because of the necessity ofleaving a path for the trackers.
Life in the Settlement during the First Few YearsThe foreign population of the Settlement gradually increased. In1844 it was 50， in the following year， 90， and after five years it hadgrown to 175 。 In addition there was a floating population， consistingof the men on shore from the ships in harbor.