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 51sT Congress, » SENATE. i Ex. Doc. 
 
 i . ( No. 54. 
 
 1st Session. 
 
 TRADE AND TRANSPORTATION 
 
 BETWEEN 
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 BY 
 
 WILLIAM ELEROY CURTIS, 
 
 Executive Officir, International AMERigAN Conference. 
 
 WASHINGTON : 
 
 GOVERNMENT PRINTING OFFICE. 
 
 1890.
 
 LETTER 
 
 THE SECRETARY OF STATE, 
 
 TRANSMITTING, 
 
 In compliance with law, a report on trade and transportation between the 
 United States and Latin America, prepared for the use of the Interna- 
 tional American Conference. 
 
 February 13, 1890. — Referred to the Committee on Foreign Relations and ordered to 
 
 be printed. 
 
 Department of State, 
 Washington, D. C, February 12, 1890. 
 The President of the Senate: 
 
 In accordance with section 5 of the act of Congress approved May 
 24, 1888, I transmit herewith, for the information of the Senate and 
 House of Representatives, a copy of a report entitled "Trade and 
 Transportation between the United States and Latin America," pre 
 pared by William Eleroy Curtis, for the use of the delegates to the 
 International American Conference. 
 
 I have the honor to be, sir, your obedient servant, 
 
 James G. Blaine. 

 
 c o isr T iH] N T s . 
 
 PAKT FIRST. 
 
 TRADE. 
 
 Page. 
 
 I. — Our Commerce with Latin Amkric.v 3 
 
 The population, manufactures, and protlncts of Latin America .» 3 
 
 Natural transportation facilities 4 
 
 Railways 5 
 
 The intercontinental railway 5 
 
 British investments - 7 
 
 Magnitude of the foreign commerce 8 
 
 The increase in sixteen years 9 
 
 Domestic development of the United States 9 
 
 Enormous increase in our exports to other countries, but a small increase 
 
 in those to Spanish America 10 
 
 Character of the Latin- American trade 11 
 
 The trade not afi'ected by our tariff 11 
 
 IL— What is sent to Latin America 15 
 
 List of articles composing the cargoes of ships. 15 
 
 Where these articles are produced 17 
 
 Sample cargoes 18 
 
 Proportion contributed by each State 18 
 
 Articles contributed by each State 18 
 
 III. — HiSTORT OF TBTE INTERNATIONAL CONGRESS 21 
 
 The movements of 1825 and 1S81 21 
 
 The South American Commission 22 
 
 Its conferences with merchants of the United States and those of Central 
 
 and South America 22 
 
 Its conferences with the several governments of Central and South 
 
 America 22 
 
 Results of the investigations 22 
 
 Obstacles in the way of trade 23 
 
 Lack of transportation facilities the fundamental obstacle 24 
 
 The commerce of 1888 24 
 
 Analysis of the carrying trade 25 
 
 An increase in our trade 26 
 
 Comparative statement of trade in 1868 and 1888 26 
 
 Exports of Great Britain, France, and the United States compared 27 
 
 The opinion of an expert 27 
 
 IV. — The Commerce op Mexico 29 
 
 Her exports 29 
 
 Her imports 30 
 
 The character of merchandise imported ! 30 
 
 The cotton trade 31
 
 VI CONTENTS. 
 
 PagB. 
 IV. — The Commkrck of Mexico— Continued. 
 
 Faults of American merchants and manufacturers 31 
 
 Annoying customs regulations 31 
 
 The commercial treaty with Mexico 32 
 
 Mexican sugar and coffee 32 
 
 The international coiu 32 
 
 V. — Thk Commerce of Centrax, America 33 
 
 Exports and imports 33 
 
 The trade in cotton goods 33 
 
 The great variety of imports 34 
 
 Reciprocity treaties 34 
 
 Proposed treaty with Guatemala 34 
 
 The sugar and tobacco of Central America 35 
 
 The opinion of an expert 36 
 
 Why our commerce is so small 36 
 
 ETidences of increased exports 36 
 
 How our imports are paid for 37 
 
 Difference in freight rates 37 
 
 Coinage and currency 38 
 
 Subsidies paid by Central America 39 
 
 VI. — The Commerce of Colombia 40 
 
 Exports and imports 40 
 
 The merchandise shipped to Colombia 40 
 
 Where our exports come from 41 
 
 The means of transportation 41 
 
 The proposed common coin 42 
 
 Views of Mr. F. G. Pierra 42 
 
 The port of Savanilla 42 
 
 Steam-ship facilities at Savanilla .• 43 
 
 Subsidized lines to Europe 43 
 
 Faults of American manufacturers 43 
 
 Interior transportation , 44 
 
 The trade of the Isthmus 44 
 
 Report of Thomas Adamson, consul-general 44 
 
 VII. — The Commerce of Venezuela 48 
 
 Trade increases where there is transportation 48 
 
 The exports and imports of Venezuela 48 
 
 Why England monopolizes the cotton trade 48 
 
 /Forgeries of United States trade-marks 49 
 
 Trade not affected by the tariff 49 
 
 Duties charged by Venezuela 49 
 
 Reciprocity treaties 49 
 
 How the Red " D" Line of steamers has built up trade 49 
 
 VIII.— The Commerce of Ecuador 51 
 
 Exports and imports 51 
 
 Merchandise sent from the United States 51 
 
 Where it is produced 51 
 
 Transportation facilities to Ecuador 52 
 
 Advantages of freight to Europe 52 
 
 Statement of Mr. F. G. Pierra 52 
 
 The tariff of Ecuador 52 
 
 A reciprocity treaty desirable 53 
 
 IX.— The Commkrcbt of Peru 54 
 
 Deplorable condition of the country 54 
 
 Statement of the foreign department 54
 
 CONTENTS. VII 
 
 P»g«. 
 
 IX.— The Commerce of Peru — Continued. 
 
 Hopeful outlook for the futuro 54 
 
 Former commerce af Peru 54 
 
 Peculiarities of the market 55 
 
 The prosperous era of the Republic 55 
 
 Where Peru buys her merchandise 55 
 
 Exportable products 56 
 
 Our exports to Peru 56 
 
 Reciprocity treaties 56 
 
 Transportation facilities and freights 56 
 
 X.— The Commerce of Bolivia 57 
 
 Her exports and imports 57 
 
 No commerce with the United States 57 
 
 Lack of statistics 57 
 
 The cotton goods trade 58 
 
 Statement of the Bolivian consul-general 58 
 
 Difficulties of transportation 58 
 
 Mistakes of American merchants 58 
 
 Reciprocity treaties 59 
 
 XL— The Commerce of Chili 60 
 
 Exports and imports in 1888 --- 60 
 
 Exports and imports in 1887 60 
 
 Where the imports come from 60 
 
 What they consist of 61 
 
 Share of the United States 61 
 
 Shipping statistics of Chili 61 
 
 United States flag seldom seen 61 
 
 The Chilian line of steamers 62 
 
 The wool product of Chili 62 
 
 How trade may be secured 63 
 
 Popularity of American goods 63 
 
 The question of freights 64 
 
 The international coin 64 
 
 XII.— The Commerce of the Argentine Republic 65 
 
 Enormous increase of late years 65 
 
 The division of trade 65 
 
 Imports and exports in 1888 65 
 
 Classification of exports - 66 
 
 Exports of cereals 66 
 
 Increase of agricultural population - 67 
 
 Agricultural advantages 67 
 
 The wool clip 68 
 
 A bounty on exports of beef 68 
 
 Trade with Germany 69 
 
 Trade with Belgium 70 
 
 Trade with France 71 
 
 Trade with Great Britain - 71 
 
 Trade with the United States 72 
 
 Increase in our exports 72 
 
 American sample-houses 73 
 
 Why we are so far behind 74 
 
 The carrying trade 74 
 
 No steamers from the United States 74 
 
 Steam-ship communication with Europe - 75 
 
 Reasons for commercial estrangement 75
 
 VIII CONTENTS. 
 
 Pagfc 
 XII. — The Commerce of the Argentine Republic — Continued. 
 
 The HouBtou subsidy to New York 75 
 
 Cost of uiaintaiuiug a line 76 
 
 Offer of the Argentine Government 76 
 
 Proposition of John Roach & Son 76 
 
 Message of the President 77 
 
 Peace and prosperity of the Republic 78 
 
 The Argentine population 78 
 
 Enormous immigration 79 
 
 Population of Buenos Ayres 80 
 
 The railway development 80 
 
 Banks of the Argentine Republic 80 
 
 Statement of William H. T, Hughes 82 
 
 Our exports to Buenos Ayres 82 
 
 The means of transportation 83 
 
 The question of prices 83 
 
 Reciprocity treaties 84 
 
 The lumber trade 84 
 
 Transportation line the first condition 85 
 
 A better acquaintance necessary 85 
 
 Observations of an Argentine 86 
 
 The question of transportation 86 
 
 Discriminating against Argentine wool 86 
 
 Enormous increase in wealth 87 
 
 The International Congress 87 
 
 XIII. — The Commerce of Uruguay 88 
 
 Resources of the Republic 88 
 
 The imports of Uruguay 89 
 
 The obstacle in the way of commerce .. 89 
 
 Statement of Don Jo86 Marti 89 
 
 Our want of faith in the people 89 
 
 Popularity of American goods 90 
 
 Increasing trade with the United States 90 
 
 XIV. — The Commerce of Paraguay 91 
 
 Devastatien of the country 91 
 
 Signs of a revival of industry 91 
 
 The exports and imports of Paraguay 91 
 
 XV.— The Commerce op Brazil 92 
 
 Enormous foreign trade 92 
 
 Exports and imports in 1888 92 
 
 A commercial phenomenon 92 
 
 Distribution of Brazil trade 92 
 
 How it is carried on 93 
 
 The triangular voyages 93 
 
 What our folly has cost 94 
 
 Some stupendous figures 94 
 
 All due to the lack of steam-ships 94 
 
 Preference for American goods 94 
 
 The imports of Brazil 95 
 
 Brazil desired reciprocity 96 
 
 Present condition of the Empire 96 
 
 Appendix A. Exports to Latin America in detail and by customs districts . 97
 
 CONTENTS. IX 
 
 PART SECOND. 
 
 TRANSPORTATION. 
 
 Page. 
 
 I.— The Carrying Trade op the World 105 
 
 Present couditiou of trausportation 105 
 
 Subsidies paid by all uations... 106 
 
 What we pay foreign ships 107 
 
 What our lack of steam-ships costs us 107 
 
 England's monopoly of the carrying trade 108 
 
 American vessels crowded out 108 
 
 Our trade with Cuba 109 
 
 Some significant figures 109 
 
 II. — The United States Postal Service 110 
 
 Total cost of our postal service 110 
 
 Postmaster-General Vilas on the encouragement of conmierce 110 
 
 Extension of our domestic service Ill 
 
 The Spanish-American service reduced Ill 
 
 Amounts paid to all steam-ships for forty years 112 
 
 Amounts paid to American steam-ships for forty years 112 
 
 Encouragement of commerce by land 112 
 
 Expenditures for special mail facilities 112 
 
 The inland steam-boat service 113 
 
 Inland steamers paid by distance 113 
 
 Ocean steamers paid only for letters carried 113 
 
 Inconsistency of our Congress 114 
 
 Statement ofW. H. T. Hughes 114 
 
 Amounts paid to inland steamers 115 
 
 An example of inconsistency 115 
 
 Mail facilities for summer resorts 116 
 
 The star-route service 116 
 
 Some odorous comparisons 116 
 
 Complaints concerning our steam-ship service 117 
 
 Appeal of the Gulf States merchants 119 
 
 An appeal from San Francisco 122 
 
 III.— History of our Forlign Mail Service 123 
 
 The act of 1845 123 
 
 Ten years' contracts made under it 123 
 
 The act of 1848 124 
 
 Ten years' contracts made under it 124 
 
 The act of 1851 124 
 
 Contracts made under it , 124 
 
 A remarkable contrast. . 124 
 
 The act of 1852 126 
 
 The act of 1855 126 
 
 The act of 18.58 127 
 
 Contracts made under them 127 
 
 The act of 1860 131 
 
 The act of 1864 132 
 
 The acts of 1865 and 1867 132
 
 X CONTENTS. 
 
 Page. 
 
 III. — History of our Foreign Mail Servick — Continued. 
 
 The Pacitic Mail subsidy 133 
 
 The Hawaiian Islands subsidy 133 
 
 Rates of postage before the Postal Union 134 
 
 The reduction of ocean postage in 1874 134 
 
 The compulsory law 135 
 
 Report of the Committee on Shipping 135 
 
 Some interesting facts and figures 13G 
 
 The facts in the case 136 
 
 Report of the Ship-Building Committee 13/ 
 
 The act of 1885 137 
 
 Profits of the Government on foreign mails 138 
 
 The Australian mail service 138 
 
 The Venezuela service compared. 138 
 
 Postmaster-General Vilas refuses to carry out the law 139 
 
 The steam-ships refuse to carry the mails 139 
 
 This action contrasted with that of foreign governments 140 
 
 American steamers take the mails, but decline the pay 140 
 
 Our Pacific Ocean service 141 
 
 Feeling of Australian colonies towards the United States 141 
 
 IV.— Steam-ship Policy of Foreign Nations 143 
 
 Former standing of the United States 143 
 
 How British shipping was built up 143 
 
 England's record for forty years 144 
 
 British mail pay to steam-ships for forty years 145 
 
 British subsidies to South American lines 145 
 
 New ships for South American trade 146 
 
 England's naval reserve 146 
 
 Naval reserve subsidies 147 
 
 British mail pay in 1888 147 
 
 v.— The Policy of Canada 149 
 
 Subsidies paid by the Dominion 149 
 
 Contracts with Canadian Pacific 149 
 
 Contracts for new steamers 149 
 
 Eftect upon the commerce of the United States 150 
 
 Canada seeking South American trade 1.50 
 
 VI.— The Policy of France 1.52 
 
 Subsidies paid by the French Re})ublic 152 
 
 Mail contracts with French companies .-. 152 
 
 The French bounty system 152 
 
 Amounts paid annually as bounties 153 
 
 French lines to South America 153 
 
 Trade between France and the Argentine Republic 154 
 
 VII. — The Policy of Germany 155 
 
 Germany adopts the subsidy policy 155 
 
 Amounts paid annually 155 
 
 German lines to South America 155 
 
 A German lloating commercial exposition 156 
 
 VIII.— The Policy of Spain 157 
 
 The Spanish subsidy system 157 
 
 Amounts paid under it 157 
 
 Additional bounties and mail compensation 157 
 
 A Spanish floating exposition 159 
 
 IX.— The Policy of Italy 160 
 
 The Italian subsidy system 160
 
 CONTENTS. XI 
 
 Page. 
 IX. — The Policy of Italy — Continued. 
 
 Amounts paid under it 160 
 
 Bounties on construction and repairs 160 
 
 Bounty on imported coal 161 
 
 Italian lines to South America 161 
 
 X.— The Policy of The Nkthehlands 162 
 
 Report of Hon. Samuel R. Thayer 162 
 
 Subsidies paid by The Netherlands 162 
 
 Steam-ship lines to South America 162 
 
 XI.— The Policy of Belgium 164 
 
 Compensation for carriage of mails 164 
 
 Report of Minister Terrell 164 
 
 Report of Consul Stewart 166 
 
 Steam-ship lines to South America. 166 
 
 Rates of freight charged : 167 
 
 XII.— Other European Countries 16-^ 
 
 Subsidies paid by — 
 
 Austria-Hungary 168 
 
 Norway and Sweden 168 
 
 Russia 168 
 
 Portugal 168 
 
 Japan 168 
 
 Turkey 168 
 
 XIII.— Policy of American Nations 169 
 
 Subsidies paid by — 
 
 Mexico 169 
 
 Guatemala 170 
 
 San Salvador 170 
 
 British Honduras 170 
 
 Honduras 170 
 
 Nicaragua , 170 
 
 Costa Rica - 170 
 
 Brazil 171 
 
 The Argentine Republic 171 
 
 Chili 172 
 
 The West India Islands 172 
 
 The Bahama Islands 172 
 
 The island of Trinidad 172 
 
 The island of Barbadoes - 173. 
 
 The island of Jamaica 173 
 
 The island of Tobago 173 
 
 Dutch Guiana 173 
 
 XIY.— Our Steam-ship Lines to Latin America 175 
 
 The Plant Steam-ship Line 175 
 
 The Morgan Company 176 
 
 Foreign lines 177 
 
 The Atlas Steam-ship Company 177 
 
 The Red Cross Line 178 
 
 The Booth Steam-ship Company 178 
 
 Royal Dutch West India Company 178 
 
 The Honduras and Central American Company 179 
 
 Sloman's New York and Brazil Line 179 
 
 The Spanish West India Line 179 
 
 New York and Porto Rico Steam-ship Lines 179 
 
 Quebec Steam-ship Company 179
 
 XII CONTENTS. 
 
 Page. 
 
 XIV. — Our Steam-ship Links to Latin America — Coutiuued. 
 
 New York and Jamaica Line 180 
 
 Trinidad Line 180 
 
 TheTanrus Line 180 
 
 People's Line for Hayti 180 
 
 New York and Yucatan Steam-ship Company 180 
 
 The Anchor Line 180 
 
 The Atlantic and West India Line 181 
 
 The Winchester , 181 
 
 The Ern Line 181 
 
 The New Orleans and Belize Royal Mail 181 
 
 Oteri's Pioneer Line 181 
 
 New Orleans and Colombia Line 181 
 
 Tramp steamers 181 
 
 Table of distances 182 
 
 XV. — The Pacific Mail Steam-ship Company , 183 
 
 Its beirinuino; and extension 183 
 
 The coni])auy's vessels 183 
 
 Lines and length of trips 184 
 
 Ports at which vessels touch 185 
 
 Competition 185 
 
 Growth of business with Central and South America 186 
 
 Mannfactures of the United States in demand 186 
 
 Mail subsidies 186 
 
 XVI. — The Ward Line of Steamers 188 
 
 Organization and fleet 168 
 
 Americanpolicy of the owners 188 
 
 Government obstacles to business 189 
 
 Present conditions more satisfactory 190 
 
 Extension of the line 190 
 
 Composition of cargoes 190 
 
 Competition of foreign subsidized line 191 
 
 The Spanish subsidy 191 
 
 What the United States paj'S 192 
 
 Result of the competition 193 
 
 The passenger travel 193 
 
 Mails carried at a loss 194 
 
 The cost of handling mails 194 
 
 Subsidies advocated 195 
 
 Exhibit A, correspondence with the Postmaster-Goueral 195 
 
 XVII. — United States and Brazil Mail .Steam-ship Company 198 
 
 History of the company from its origin 198 
 
 Difliculty of building up a fleet 198 
 
 Retrospective r6sum6 of trade 199 
 
 Fleet and voyages 200 
 
 Ports visited by Brazil line 201 
 
 Value of the line to the United States 202 
 
 Cost of construction and maintenance ofships 202 
 
 Features of competition — " Tramps" and subsidies 202 
 
 How tramp vessels are managed 203 
 
 Dangerous condition of the tramps 203 
 
 Mixing commercial business with transportation 204 
 
 How they cut the trade 205 
 
 Inspection of American shii>s 205
 
 CONTENTS. XIII 
 
 Page. 
 
 XVII. — United States and Brazil Mail Steam-ship Compant — Continued. 
 
 Condition of the coastwise traffic 206 
 
 The amount of competition from tramps 206 
 
 European competition 207 
 
 The English Belgian line 208 
 
 European vs. American Government aid 208 
 
 English mail packet service 209 
 
 The Spanish subsidies 210 
 
 Compensation for carrying United States mails 210 
 
 What the Brazil steamers receive 210 
 
 The controversy wi th Postmaster-General Vilas 211 
 
 How mails are handled 211 
 
 The promises of President Harrison 212 
 
 Compensation the Brazil Company has refused 212 
 
 Amount the line would have received under the old law 213 
 
 Advantages of coast and inland steamers 214 
 
 Cost and profit of handling mail 214 
 
 Brazilian mail contract 215 
 
 Increase of trade with the United States 216 
 
 Satisfactory changes in methods of busini'ss 216 
 
 Character of cargoes 217 
 
 How mail carriage should be paid for 217 
 
 List of United States and Brazil trade steamers 218 
 
 Cost, cargoes, and rates 219 
 
 Ships in the triangular trade 219 
 
 Conclusion 219 
 
 Exhibits 221 
 
 Exports by the Brazil ships 221 
 
 The British foreign mail service 221 
 
 Special subsidies paid by Great Britain 222 
 
 Address by William Eleroy Curtis 224 
 
 Reciprocity treaties 225 
 
 The carrying trade 225 
 
 America discovered by a subsidized ship 225 
 
 Pay should equal length of voyage 225 
 
 Some striking comparisons 226 
 
 Attitude of the administration 227 
 
 XVIII. — The EedD. Line of Steamers 228 
 
 Description of line by Ernest C. Bliss 228 
 
 Description of vessels composing line 228 
 
 The cost of construction and maintenance 229 
 
 Competing lines 229 
 
 Compensation for carrying the mails 230 
 
 The cost of carrying the mails 230 
 
 How trade can be developed 230 
 
 XIX.— The Proposed Naval Eeserve 233 
 
 Recommendations of Secretary Whitney 233 
 
 The question of coast defense 233 
 
 England's naval reserve 234 
 
 Recommendations of Admiral Porter 234 
 
 A tonnage bill the simplest plan 234 
 
 The question of free ships 235 
 
 What we have paid foreign ship-owners 235 
 
 The need of a mercantile navy ^ 235
 
 XIV CONTENTS. 
 
 PagB. 
 XIX.— The Proposed Naval Reserve— Continued. 
 
 Sbip-buikliug a plain matter of business 236 
 
 Enteri)iise ot the French Republic 236 
 
 Appendix A — Transportatiou facilities between the United States and Latin 
 
 America in 1888 237 
 
 Appendix B — Report of House Committee on Shipping .• 249 
 
 PART THIRD. 
 
 I.— TOPICS FOR DISCUSSION 286 
 
 Measures to preserve the peace 285 
 
 The proposed customs union 285 
 
 Reciprocity treaties .. 285 
 
 The question of wool 286 
 
 Trade not affected by the tariff 286 
 
 The question of transportation 287 
 
 Uniform weights and measures 287 
 
 The protection of patents and trade-marks 287 
 
 Cheap goods demanded by the people 288 
 
 The experience of a New York firm 288 
 
 The form of the forgeries 289 
 
 Trade-marks forgeries in Brazil 290 
 
 The proposed international coin 290 
 
 The lack of banking facilities 290 
 
 Testimony of an expert 290 
 
 The opinion of an Englishman 291 
 
 Views of a banker 291 
 
 II. — The Sugar Trade of the United States 293 
 
 Our imports of sugar 293 
 
 Revenues collected on sugar 294 
 
 Sugar imported from Spanish America 294 
 
 Sugar trade with Hawaii 294 
 
 Imports from the Hawaiian Islands 295 
 
 Exports of refined sugar 295 
 
 Fluctuation of trade for ten years 296 
 
 Consumption of sugar in the United States 297 
 
 Relation of duties to value of sugar 293 
 
 Exports of sugar to the Argentine Republic and Uruguay 299 
 
 Steady falling off in the trade 299 
 
 Displaced by the beet-root sugar of Europe 300 
 
 Beet-root sugar in the Argentine Republic 301 
 
 The sales of refined sugar in Brazil 301 
 
 An impending struggle 302 
 
 Sugar trade in the Argentine Republic 302 
 
 III.— The Wool Trade of the Unitkd States 304 
 
 Imports of various grades of wool 304 
 
 Carpet wools from South America 305 
 
 Wool imports by countries 306 
 
 Amount of carpet wool imported by the United States 306 
 
 Wool imports in 1888 306 
 
 Domestic production of wool 307 
 
 Benefit of the removal of the duty on carpet wools 308 
 
 Rapid growth of the carpet trade , ,,,., 308
 
 CONTENTS. XV 
 
 Page. 
 m. — The Wool Tradk op the Unitko Statks — Contiinu'cl. 
 
 Importance of steamship communication to the wool trade 309 
 
 Development of wool manufacture in the United States 310 
 
 rV. — Credit system in Spanish America 312 
 
 A requirement of the trade 312 
 
 Systems of credit in Europe - 313 
 
 Steamship facilities necessary 313 
 
 How it is done in England 313 
 
 The three essentials for increased trade 314 
 
 Mexico 315 
 
 Yucatan -. 315 
 
 Costa Rica 315 
 
 Honduras 315 
 
 Colombia 316 
 
 Venezuela 317 
 
 Brazil 317 
 
 Uruguay 317 
 
 Argentine Republic 318 
 
 Peru 318 
 
 Cuba 319 
 
 Porto Rico 319 
 
 Hayti 319 
 
 v.— Coinage and Precious Metals 320 
 
 An international silver coin 321 
 
 A method suggested 321 
 
 The effect of such an arrangement 322 
 
 Estimates of values of Spanish- American coins 323 
 
 Relative weight of silver coin 324 
 
 Production of gold and silver 324 
 
 Coinage in American countries 325 
 
 Coinage in the United States 326 
 
 Production of precious metals in the United States 326 
 
 Ratio of silver to gold 327 
 
 Product of Mexico 327 
 
 Coinage of Mexico 327 
 
 Recoinage of Mexican silver dollars 328 
 
 Product of Bolivia 329 
 
 Coinage of Peru 329 
 
 Coinage of Colombia 330 
 
 Uruguay 330 
 
 Central America 330 
 
 Brazil 330 
 
 Production of the world 331 
 
 VI.— Spanish American Customs Regulations 332 
 
 Little complaint in Central America 333 
 
 Customs regulations in Venezuela 334 
 
 Assessments by weight 334 
 
 A great cause of complaint 334 
 
 Goods shipped "in transit" 335 
 
 Discrimination 335 
 
 The tariff regulations of Mexico 336 
 
 The conditions in Chili 336 
 
 Remarkable rules in Peru 336 
 
 The tariff in Colombia 336 
 
 Appendix "A," trade-mark forgeries in South American countries 339
 
 XVI CONTENTS. 
 
 Page. 
 
 VII.— The Plant Stkaai-ship Line 343 
 
 Former service to Havana 344 
 
 Confereuce with postal authorities 345 
 
 The action of Congress 346 
 
 Establishment of fast-mail service 347 
 
 Correspondence with Postmaster-General 348 
 
 Present condition of the service 360 
 
 Steam-ships in use 352 
 
 Our foreign mail policy 353 
 
 The port of Tampa 354
 
 IP^RT I. 
 
 TRADE. 
 
 S. Ex. 5i 1
 
 I. 
 
 OUR COMMERCE WITH LATIN AMERICA. 
 
 The total population of Spanish America, including the West Indies 
 and Brazil, is nearly equal to that of the United States, being over 
 50,000,000, of whom not less than 5 per cent, are European subjects, 
 and not more than 3,000 natives of the United States. There are about 
 500,000 savage Indians, confined to the interior of the continent of 
 South America, and a few small tribes in Central America, numbering 
 not more than 5,000 all told. Thus nearly every inhabitant of the 
 two continents of Central and South America and the Antilles is a 
 contributor, directly or indirectly, to the exports of the country in which 
 he lives, and to a degree a consumer of imported merchandise. 
 
 PRODUCTS OF LATIN AMERICA. 
 
 The exi»orts are raw materials, the natural or cultivated products of 
 the several countries; and the imports are manufactured articles from 
 Europe and the United States, the results of mechanical industry. 
 Wherever there are manufactories, as in Mexico, Guatemala, Chili, and 
 Brazil, the local demand is invariably in excess of the j)roduct, and the 
 importing merchants are called upon to supply' the deficiency. But the 
 mechanical industries are so meager, and their output so small, that 
 they scarcely enter into trade calculations, and add but an atom to the 
 wealth and commerce of the countries. A few steamers would carry 
 the entire annual product of the factories of the two continents ; and 
 the increase is so small as to offer no competition to foreign i)roducers. 
 
 BREADSTUFFS AN EXCEPTION. 
 
 An exception should be noted, however, in the item of breadstuff's. 
 Chili has already driven the flour of the United States off" the west 
 coast of South America, and now supplies Peru, Ecuador, and Bolivia. 
 The California millers are also beginning to feel the competition of 
 Chili at Panama and along the west coast of Central America, and 
 unless cheaper freights are offered from San Francisco southward, we 
 shall lose a large and lucrative market. 
 
 3
 
 4 TRADE AND TRANSPORTATION BICTWEEN 
 
 The Aijjeiitiiio. Ke])iiblic was an iini)()rter of breadstutt's a few years 
 siuee, but the agricultural development of the pampas is so rapid and 
 exteusive that the present product not only supplies the local demaud 
 but furnishes an annual surplus, valued at $14,000,000, for export. 
 The same is true of Uruj;uay, which has also become au ex[)orter of 
 wheat and flour withiu the last two or three years, and has au enor- 
 mous productive capacity now being rapidly developed by Italian im- 
 migrants. The time is not far distant when these three countries will 
 deprive the United States of the greater portion of its flour market in 
 the West Indies and South America, and will enter into active com- 
 petition with us in Europe. 
 
 THE DRESSED-MEAT TRADE. 
 
 The same countries, Argentina, Uruguay, and Chili, are also large 
 l)roducers of sheep and cattle, and while Chili will supply the west 
 coast with beef and mutton, the Argentine Kepublic and Uruguay will 
 eventually have a serious effect upon our European trade, being able 
 f or , eir peculiar advantages to underbid the beef producers of the 
 United States anywhere in the world. Already refrigerator shi])s are 
 sailing nearly every day from the River Plate loaded with dressed beef 
 and mutton for England and Germany, and packing houses are being 
 erected on an extensi^'e scale under an $8,000,000 subsidy from the Ar- 
 gentine Government. The jerked-beef supply of Brazil and the West 
 Indies has long been furnished by Argentina and Uruguay, and the ex- 
 portatious to Europe already amount to millions of dollars annually. 
 
 PORK AND DAIRY PRODUCTS. 
 
 In pork products and dairy products the South American countries 
 will never be able to compete with us, owing to climatic reasons, and 
 will continue to be large and increasing consumers. With these ex- 
 ceptions, and some articles of luxury, they will eventually have a suffi- 
 cient local supply of food products, and become active rivals for the 
 trade the United States now enjoys in Europe. The River Plate Val- 
 ley is more to be feared than India, Russia, or Australia as a com- 
 petitor in breadstuffs and provisions. 
 
 NATURAL TRANSPORTATION FACILITIES. 
 
 Its possibilities are unmeasured ; its productive area is greater than 
 that of the Mississippi Valley, and its transportation facilities are so 
 convenient and extensive that vessels for Europe can literally enter the 
 wheat liclds and tlu- ranches. There is scarcely a spot in the River 
 Plate country, comprising Argentina, Uruguay, and Paraguay, more 
 than 500 miles distant from a navigable river, and our advantages in 
 this respect would not be greater than theirs if ocean steaniers could 
 load at I*ittsburgh, Kansas City, or St. Paul.
 
 THE UNITP:D stater and latin AMERICA. f) 
 
 The Rio de la Plata, or the River Phite, as it is coinmoiily known 
 otters a more exleusive system of unobstructed navigation iliaii any 
 river iu the world, and, with the exception of the Amazon, pours more 
 water into the oe(».an. It affords more miles of navigation llian all the 
 rivers of Europe combined, aud more than the Mississippi with its 
 several tributaries. The tide from the Atlantic reaches 2G0 miles up 
 the stream, and ocean ships of 24 feet draught can find water enough 
 the whole year at a distance of 1,000 miles from its mouth. Vessels of 
 from IC to 20 feet draught can go 2,700 miles into the interior of the 
 continent, and a comparatively small amount of money — a mere fraction 
 of the sum that has been spent upon the Mississippi — will furnish a path 
 for a 4,000 ton vessel from New York or Liverpool to the very heart of 
 Brazil, by way of Buenos Ayres. 
 
 The navigation of the Amazon is obstructed by natural obstacles, 
 which it will be difficult to remove ; but the Orinoco is open to large 
 vessels, and the Rio Negro, in the southern part of Argentina, afJbrds 
 access to Patagonia, as the Magdalena does to the interior of Colombia. 
 
 ARTIFICIAL TRANSPORTATION FACILITIES. 
 
 The Argentine Republic, Brazil, Chili, and Uruguay are supplement- 
 ing their natural transportation facilities by extensive railway systems, 
 and will soon in this respect be as well equipped for commerce as Kan- 
 sas or Colorado ; aud it is from them that we have cause to fear in find- 
 ing a market for our agricultural and pastoral products. They can place 
 wheat on board a Liverpool steamer at a lower price than we can place 
 it upon a lake steamer at Duluth, and cau stow away carcasses of 
 dressed beef and mutton in refrigerator ships cheaper than our West- 
 ern ranchmen can land their live stock at Chicago or Kansas City. Not 
 only are their transportation facilities cheaper and more convenient, 
 but their cost of production is much less than ours, so that as rivals in 
 the European food markets they will be formidable aud dangerous. 
 
 THE PROPOSED INTERCONTINENTAL RAILWAY. 
 
 In a very able and interesting dispatch to the Department of State, 
 Mr. JohnE. Bacon, United States minister to Uruguay, thus discusses 
 the proposed intercontinental railway : 
 
 Fortunately the United States is not confined to the ocean in order to recover this 
 immense South American commerce. An international railway would not only con- 
 trol but monopolize it, and in such a way as to defy all future competition. 
 
 Is it feasible ? When I began to study this question three years ago, I was in 
 clined to regard it as somewhat visionary. A close scrutiny, a more intimate ac- 
 quaintance with the people and the topography of the country, aconstant intercourse 
 and conversation with able and distinguished geologists aud topographical eno-ineers 
 here, some of whom have been over the ground more than once, and, above all, the 
 fact that within these three years railroads have been actually l>uilt and routes sur- 
 veyed for at least one-third of the distance between Buenos Ayre>f ami Bogota lead me 
 to believe that the great international highway (railroad) will be comideted much
 
 G TRADE AND TRANSPORTATION BETWEEN 
 
 sooner 1 ban Las been anticipated. This, I think, can be clearly demoufltrateil by a 
 detailed description of the distance and routes between Bueuos Ayres and Bogota, <ir 
 Cartagena, or Panama, and especially of the railways already built and surveyed 
 along the line ; and it will, I have little doubt, astonish many to know, as above 
 stated, that within only three years one-third of the whole line has been built, or is 
 under survey and construction ; in fact that there are two lines so built and under con- 
 struction, and concessions granted for at least two more, and these railways, together 
 with shorter ones already in operation in Peru, Ecuador, aud Bolivia, with which 
 connections might be easily made, would make the distance between the two cities, 
 Buenos Ayres and Bogota, to be filled up only about '2,000 miles. It is by no means 
 so gigantic an undertaking as the great Pacific road, connecting the Atlantic and 
 Pacific, over 3,000 miles. I allude to this to show how distance, time, obstacles, 
 visionary impediments, sneer, and ridicule vanish before concentrated determination, 
 energy, capital, and skill. 
 
 THE WORK ALREADY BEGUN. 
 
 Now, why can not this proposed international railway, one-third, or at least one- 
 fourth shorter than the Pacific, above alluded to, bo built, and built at •nee (five or 
 six years) in the same way and by the same means? The answer is apparent, and 
 is evident from the very fact that, within the short space of three years, one-third 
 of it has already been built, or built and being built, aud that over the worst part, 
 the "Gran Chaco," between the Argentine Republic and Bolivia. 
 
 Every possible encouragement is aud will be given for its construction by the 
 States through which it is to pass, not only in the way of concessions for railway 
 purposes, but by a guaranty of from 5 to 7 j)er cent, per annum interest on all 
 amounts invested in construction, as also oxteusive tracts of land on both sides of the- 
 road ; and. as the line would run through what has been always rcg.arded as the 
 richest auriferous regious of the world, to say nothing of its other niiueral and botani- 
 cal wealth, such tracts of land would, in all probability, prove invaluable. 
 
 To assert these facts is a matter of great ease. Let us prove them. I have be- 
 fore me a railroad map of South America, prepared with great care and at consider- 
 able expense, from which the roads already built, as also those in process of construc- 
 tion, etc., between Buenos Ayres and Bogota, can be distinctly traced, the distances 
 ascertained, etc. 
 
 [Note. — Mr. Bacon's description of the proposed lines will be found at the end of 
 this chapter, marked Appendix A.] 
 
 THE PRESENT OUTLOOK. 
 
 (1) Within the last three or four years about one-thii'd of the line has been built ; 
 that is, railways with which the international road could connect. 
 
 (2) Concessions are being annually granted in the different republics through 
 which it would pass for the construction of other railways that might form con- 
 necting links. 
 
 (3) These concessions are generally of the most liberal nature, such as a guaranty 
 of 5, G, and 7 per cent, per annum upon all sums invested in construction, and also liberal 
 grants of laud on both sides of the route, exemption from taxation, importation of 
 all needed railway supplies free of duty, etc. For instance, the late concession 
 granted by Paragnay to General Osborn (ex-United States minister to the Argentine 
 Republic) for a railway from the light bank of the Paraguay River across the Chaco 
 to the Bolivian frontier, concedes, among other things, along the whole length of the 
 line, 60 meters wide of land shall be delivered for the line, and also full proprietary 
 rights gratis of alternate lots of land on each side of the line, each lot to be of 10 
 kilometers fronting Ihc line and 20 kilometers iude))th, exemption from taxation for 
 forty years after the completion of the line, freedom of employ68 from military serv- 
 ice, etc.
 
 THE UNITED STATES AND LATIN AMERICA. 7 
 
 (4) The republics along tlio whole Hue are anxious for the coiistnu'tioii of riiil\v;iy i, 
 and are offering concessious so liberal that they nuist attract capital. 
 
 (5) The liberality of these concessioua is apparent from the fact lliat they are 
 generally sold by the origiual concessionaires at greatly adTauced prices. As an ex- 
 ample of this, the papers state that Dr. Stewart has been offered for his late couces- 
 sion of a railway, from Posadas to Villa Rica, in Paraguay, $100,000. 
 
 (6) European capital and immigration are steadily flowing to many of these 
 countries, and will, in all iirobability, continue to do so. 
 
 (7) The wish to buikl the whole line is general, and the feasibility admitted. Indeed, 
 the probability of its construction is occupying the public mind more and more every 
 year. 
 
 (8) The immense tracts of land granted to the concessionaires have made largo 
 fortunes. 
 
 (9) In some of these republics rival capitalists are striving for these concessions. 
 
 Many other reasons might be stated, if necessary, and time and space at our com- 
 mand. Indeed, it is par excellence the age of railways and railway investmeuts, 
 especially in South America. While writing I see it stated in the South American 
 Journal of last month that a "Registration company " has been formed in Loudon 
 for the construction of a line in Colombia from Santa Marca to Banco, on the Mag- 
 daleua River, with a capital of £600,000; and also a line, in the same republic, from 
 Santander to Bucuramaugo. 
 
 There are over twenty railways in operation in the Argentine Republic, and cou • 
 cessions granted for several more. The construction cost of those now in operation 
 is estimated at a little over $40,000 per mile. Taking this as a fair average, and es- 
 timating the international line from Buenos Ayres to Bogota to bo 3, GOO miles, and 
 deducting the lirst-class railway already in operation between Buenos Ayres and Ju- 
 juy, 993 miles, and which is the moat direct route to Bogota, there would be left to 
 be built, without deducting for the other links above referred to in describing this 
 route, 2,610 miles, at a cost of $40,000 per mile, or $104,400,000. 
 
 John E. Bacon. 
 Montevideo, January 11, 1888. 
 
 BRITISH INVESTMENTS IN SOUTH AMERICA. 
 
 European capital has regarded the immense profits paid by our cattle 
 industry with jealous eyes, and the amount invested in Texas, Colorado, 
 and the Territories shows how desirous they are to share it; but the 
 increasing price of land and cattle in this country has diverted their 
 attention elsewhere, and they have found in Argentina and Urnguay 
 a place where the same area of pasturage and an equal number of 
 cattle can be purchased for about one-half the money. Millions of 
 dollars are being invested by foreigners in this industry, the English- 
 men generally taking cattle ranches aiul the Irishmen and Scotchmen 
 sheep. There are now one hundred million sheep in the Argentine 
 Eepublic and eleven million in Uruguay, while there are thirty million 
 cattle in Argentina, seven million in Uruguay, and three million in 
 Paraguay. The significance of these figures can be better realized by 
 comparison. There are ninety-six sheep, eighteen cattle, and four 
 horses for each inhabitant of the River Plate country, and only eighty 
 sheep, seventy cattle, and twenty horses for every one hundred inhabit- 
 ants of the United States ; and their stock interests are growing faster 
 than ours.
 
 8 TRADE AND TRANSPORTATION BETWEEN 
 
 MAGNITUDE OF SPANISH AMERICAN COMMERCE. 
 
 People who have uot studied the subject have very little conceptiou, 
 of the magnitude and value of the foreign commerce of Central and 
 South America. The fifty millions of people south of the Rio Grande 
 and the Gulf of Mexico are engaged in a trade which amounts to 
 $1,000,000,000 annually, nearly evenly divided between exports and im- 
 ports ; and in the countries south of the Tropic of Capricorn, those of 
 the temperate zone of South America, the foreign commerce is increas- 
 ing with amazing rapidity. 
 
 The total value of the foreign commerce of these countries increased 
 from $709,000,000 in 1870 to $1,014,000,000 in 1884, a gain of $304,732,000, 
 or 43 per cent. This increase of commerce during the period indicated 
 compares favorably with the increase of the trade in merchandise of the 
 principal commercial nations of the globe, being greater than that of 
 Great Britain, which increased 27.2 per cent., and little less than that 
 of France, which increased 45.6 per cent. The trade in merchandise of 
 the United States increased from $828,730,000 in 1870 to $1,547,020,000 
 in 1884, showing an increase of 86.7 per cent. 
 
 The imports of Latin America during the same period increased from 
 $337,353,000 to $460,662,000, a gain of $123,309,000, or 36.6 per cent., and 
 the exports from $371,907,000 to $550,325,000, a gain of $178,418,000, 
 or 48 per cent. 
 
 The comparative magnitude of the foreign commerce in 1884 of the 
 countries was as follows : 
 
 Commerce of the year 1884. 
 
 Countries. 
 
 Brazil 
 
 Argentine Republic 
 
 Cuba 
 
 Chili 
 
 Mexico 
 
 Another 
 
 Total 
 
 Imports. 
 
 $100,525,802 
 77, 6-0, 57-i 
 58, 432, 105 
 49, 055, 720 
 27. 300, 856 
 147, 126, 488 
 
 400,661,005 
 
 Exports. 
 
 $118, 323, 551 
 58, 100, 097 
 00, 779, 204 
 72,710,088 
 41,807,505 
 102, 597, 415 
 
 550, 324, 550 
 
 Total 
 commerce. 
 
 $218. 849, 413 
 135,721,271 
 12.5,211,309 
 122,371,808 
 69,108,451 
 342, 728. 903 
 
 1,013,991,215 
 
 COMMERCE IN 1886. 
 
 In 1886, the latest year for which the complete statistics are available? 
 the foreign commerce of Latin America reached a total of $973,180,452, 
 of which $473,695,941 were imports, and $499,484,511 were exports. 
 
 Of this trade Brazil had the greater share, her imports amounting to 
 $107,835,819, her exports $105,449,044, and her total foreign commerce 
 $214,284,263. 
 
 The Argentine Kepublic stood second in importance, with $97,658,000 
 imports and $69,834,000 exports, making a total of $167,492,000. 
 
 The island of Cuba came third with a total commerce of $125,211,369, 
 divided into imports $58,432,165, and exports $66,779,204.
 
 THE UiNiTr.n stativS and latin America. 
 
 9 
 
 Cbili is the next on the list with $40,096,000 imports, $51,259,000 ex- 
 ports, a total of $91,355,000. 
 
 THE GAIN IN SIXTEEN YEARS. 
 
 During the period between 1870 and 1886 the total gain was 
 $203,921,098. The greatest increase was seen in the Argentine Repub- 
 lic ($99,375,599), the next in Cuba ($35,(;78,227), the next in Chili 
 {$24,099,970), and the next in Brazil ($20,707,000). The increase in Uru- 
 guay was $15,884,000, in Venezuela $14,077,000, and in Colombia 
 $10,314,000, while all the other nations shared in lesser proportions. 
 
 If a comparison could be made with the year 1888 a still greater in- 
 crease would be shown, for there is no doubt that during the last year 
 the commerce of Latin America surpassed even that of the year 1884 
 and exceeded a thousand millions. The increase in Chili and the 
 Argentine Republic alone would carry the total above that sum, while 
 all the other nations either held their own or showed progress. 
 
 MATERIAX, DEVELOPMENT OF THE UNITED STATES. 
 
 In this vast expansion of the commerce of the countries nearest us 
 and those which are our natural trade allies, the United States has had 
 but a trifling share. Our own growth has been phenomenal. The de- 
 velopment of our material resources and our increase in wealth has 
 astonished the world. 
 
 Our population has leaped from 38,900,000 in 1870 to 65,000,000 
 (estimated), in 1889. 
 
 The value of our manufactures, which in 1870 was four billions of 
 dollars, has increased to eight billions, and our natural wealth, which 
 in 1870 was thirty billions of dollars, is now estimated at fifty-six bil- 
 lions. 
 
 The following table from the American Economist shows some other 
 interesting comparisons: 
 
 Description. 
 
 Gold, silver, and paper currency 
 
 Gold coin 
 
 Silver coin 
 
 Foreign commerce 
 
 Miles of railroad 
 
 Annual railroad freight earnings 
 
 Annual railroad passenger earnings 
 
 Telegraph lines miles 
 
 Tons pig-iron produced 
 
 Tons steel rails produced 
 
 r>ari els petroleum produced 
 
 Tons sugar used 
 
 Tons coal mined 
 
 Bushels wheat raised 
 
 Bushels com raised 
 
 Bushels oats raised 
 
 Value farm animals 
 
 1870. 
 
 $900, 
 
 $130, 
 
 $30, 
 
 1,000, 
 
 $360, 
 $136, 
 
 50, 
 
 289, 
 
 1, 200, 
 
 320, 
 
 $1, 650, 
 
 000, 000 
 000, 000 
 000, 000 
 000, 000 
 
 77, 000 
 000, 000 
 000, 000 
 
 73, 000 
 000, ooo 
 750, 000 
 000, 000 
 750, 000 
 000, 000 
 000, 000 
 000, 000 
 000, 000 
 000, 000 
 
 $1, 700, 
 
 $705, 
 
 $380, 
 
 $1,500, 
 
 $040, 
 $240, 
 
 1, 
 
 110, 
 
 450, 
 
 2, 000, 
 
 700, 
 
 $2, 500, 
 
 000,000 
 000, 000 
 000, 000 
 000, 000 
 157, 000 
 000, 000 
 000, 000 
 171,000 
 000, 000 
 250, 000 
 000, 000 
 fOO, 000 
 000, 000 
 000, 000 
 000, 000 
 
 000, ooo 
 
 000, 000
 
 10 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 AN AMAZING CONTRAST. 
 
 But (iiiriiifj all tlicse prosperous years, amid all this prodigoiis devcl- 
 opineiit, our export trade to Latiu America almost stood still, and that 
 market was left to the Europeau traders. There was a heavy ^aiii in 
 our imports of raw material from those countries, however. In 1S08 
 they were but $S.i,409,000, in 1888 they had reached $181,058,()()(), an 
 increase of ninety-eight millions, while our ex[)ort trade increased on)}- 
 sixteen millions. 
 
 The following table shows the increase of our exports to all the world, 
 compared with the increase to Latin America from 1868 to 1888 : 
 
 Tear. 
 
 1808, 
 
 1870 
 
 1870. 
 
 Total ex- 
 ports. 
 
 $^75, 737, 000 
 450, 927, 000 
 596, .S90, 000 
 
 Exports 
 to South 
 AmiTica. 
 
 $33, 107, 000 
 r>0, 152. 000 
 57, 6i 0, 000 
 
 Tear. 
 
 1880 
 1880 
 
 1888 
 
 Total ex- 
 porta. 
 
 $85-2,781,000 
 751, 988, 000 
 742, 368, 000 
 
 Exports 
 to Soutli 
 Ainurica. 
 
 $58,451,000 
 60,310,000 
 69, 273, 000 
 
 It will be noticed that the greatest gain in our Spanish-American 
 commerce was during the last two years. 
 
 The difference between the growth in our export and our imjiort trade 
 with Spanish America is due to the fact that the transportation facili- 
 ties during this [)eriod have been contrplled by foreigners, chiefly Eng- 
 lishmen, who so regulated the voyages of their ships that, while there 
 were plenty of facilities for freight to reach the United States from all 
 the countries south of us, there was no way for merchandise from the 
 United States to reach some of them unless a sailing vessel was char- 
 tered. 
 
 CUE SHARE OF THE LATIN- AMERICAN TRADE. 
 
 The share of the United States in the commerce of Latin America 
 during the year 1888 was $244,219,000; of which our imports were valued 
 at $175,220,000, and our exports $08,990,000. Iir other words, we bought 
 35 per cent, of what our neighbors had to sell, and sold them less than 
 15 per cent, of what they iiurchased. 
 
 This phenomenon is not new, and it should not be suprising. It has 
 been exhibited for more than a quarter of a century. Since the close of 
 the war we have i)aid our neighbors in the settlement of these balances 
 a sum greater than the principal of the public debt, and the total con- 
 tinues to roll up at the rate of one hundred and ten millions a year. 
 During the last twenty years the balance against us in our trade with 
 Latin America has been nearly three thousand million dollars, which 
 we have jiaid in gold. 
 
 We have expended the profits of our European and Asiatic trade in 
 purchase of raw materials in Central and South America, while those of 
 whom we have been buying spend the proceeds in England, France
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 11 
 
 and Gorinany for niaiuiffictnred articles, 70 per cent, of which they migbt 
 XJurcliasu hereof better quality and at similar prices. 
 
 CIIAIJAGTER OF THE TRADE. 
 
 . Onr trade with Spanish America is confined to a few articles. The 
 following table shows the character and amount of merchandise im- 
 ported in 1887 : 
 
 Articles. 
 
 CliPiiiicals, (Iruirs, dyes, and mcdicinfis 
 Cocoa, crude and Icavea, and shells of. 
 
 (JoUce 
 
 Fruits including nuts , 
 
 Hides and skins, other than fur skins , 
 India rubber and gutta-ptTclia, crude . 
 
 Suaar and molasses 
 
 Tobacco, and inanufactupes of , 
 
 Wood, unmanufactured 
 
 Woiil, unniauufacturt'd 
 
 All other merchandise 
 
 Total imports 
 
 1887. 
 
 fi75, 063 
 557, 253 
 060, 026 
 619,920 
 409, 572 
 491, 300 
 560, 500 
 731, 663 
 154, 713 
 551, 907 
 756, 609 
 
 172, 468, 526 
 
 The following- table shows the character and amount of merchandise 
 exported from the United States to those countries during the same 
 year, and in 1880, by which the fluctuations in trade may be compared : 
 
 Articles. 
 
 1887. 
 
 1880. 
 
 Increase. 
 
 Decrease. 
 
 
 Dollars. 
 12, 726, 167 
 5, 463, 9.-9 
 
 7, 273, 100 
 2, 867, 052 
 
 8, 678, 710 
 7, 797, 272 
 
 20, 098, 189 
 
 Dollars. 
 
 14, 144, 660 
 3, 800, 541 
 6, 515, 993 
 1, 499, 860 
 8, 762, 860 
 6,203,515 
 
 17, 524, 425 
 
 Dollars. 
 
 Dollars. 
 1,418,493 
 
 
 1, 663, 448 
 757, 107 
 
 Iimi and steel, and manufactures of 
 
 
 
 1, 367, 192 
 
 
 Provisions, comprising meat and dairy products 
 
 84, 150 
 
 1,593,757 
 2, 573, 764 
 
 
 
 
 
 
 
 64, 904, 479 
 
 58.451,8.')4 
 
 6, 452, 625 
 
 
 
 
 THE TRADE NOT AFFECTED BY OUR TARIFF. 
 
 As will be noticed in the above table, our protective tarifl' system has 
 no influence whatever upon the trade, although the advocates of its 
 reduction or abolishment, in ignorance of the facts, continue to assert 
 and reiterate that the duties imposed upon imported goods prohibit us 
 from reaching the Latin- American markets. The cost of labor and the 
 wages paid to workingmen, which are from 50 to 100 per cent, higher 
 in the United States than in any other part of the world, naturally in- 
 crease the cost of production in a similar ratio, but it is dail^^ demon- 
 strated, nevertheless, by the actual experience of merchants engaged 
 in trade with every one of the countries on this hemisphere, that the 
 manufacturers of the United States can compete with those of Great 
 Britain, France, and Germany in nearly every article we export, and 
 the infringement of our patents and the forgery of our trade-marks 
 prove the superiority and popularity of American goods. Our mer-
 
 12 TRADE AND TRANSPORTATIOX BETWEEN 
 
 chants can not only meet those of Europe on equal teiu)s, but iniinense 
 quantities of merchandise are annually sent from the United States 
 to South America by way of Bremen, Hamburg, Antwerp, and Liver 
 pool, and are sold at a profit after crossing the Atlantic twice. 
 
 In a recent dispatch to his Government, Sir George Hugh Wyudham, 
 British minister to Brazil, complains of the preference shown by the 
 people of that empire for American manufactures, and says that out 
 of two hundred and fifty-two locomotives in use upon eighteen rail- 
 roads of the Brazilian Empire, two hundred and thirteen were manu- 
 factured in the United States and only twenty-eight in Great Britain. 
 
 Appendix A. 
 
 THE SEVERAL ROUTES OF THE PROPOSED INTERCONTINENTAL RAILWAY. 
 
 [From the Report of John E. Bacon, U. S. Minister to Uruguay.] 
 
 I will describe in detail three lines now projected, and in great jiart constructed, 
 between Buenos Ayres and the Bolivian frontier, a distance of about 1,100 miles, be- 
 ing one-third of the whole line between that city and Bogota. First, the railway 
 from Buenos Ayres to Kosario, 186 miles ; Rosario to Cordoba, 246 miles ; Cordoba to 
 Tucuman, 341 miles; Tucuman to Jujuy, 220 miles; total, 993 miles. The above is 
 now built and in operation. Then from Jujuy, almost on the Bolivian frontier, to La 
 Paz, the capital of Bolivia, 500 miles; from La Paz to Santa Rosa, Bolivia, built, 220 
 miles ; Sauta Rosa to Cuzco, not built, 190 miles ; Cuzco to Santa Rosa, Ecuatlor, not 
 built, 880 miles; Santa Rosa to Hiradot, Colombia, not built, 450 miles; Hiradot to 
 Bogota, built, 140 miles ; total, 2,430 miles. This line, it will be seen, gives 993 miles 
 in operation from Buenos Ayres to Jujuy, and 2,430 miles from Jujuy to Bo^jota, of 
 Avhich 360 miles are already constructed, leaving to be built 2,070 miles. The route 
 heads all the rivers, principally tributaries to the Amazon. 
 
 A SECOND ROUTE. 
 
 Second. Buenos Ayres to Santa Rosa, Argentine Republic, built, 450 miles ; Santa 
 Rosa to Posadas, surveyed and projected, not built, 220 miles; Posadas to Villa Rica, 
 Paraguay, surveyed and projected, not built, 175 miles; Villa Rica to Asuncion, 
 Paraguay, partly built and to bo finished by next spring, 175 miles ; Asuncion to 
 Sucre, Bolivia, projected and concession granted, 700 miles ; Sucre to La Paz, Bolivia, 
 220 miles ; total, 1,940 miles. From La Paz to Bogota, as indicated in the first route, 
 1,880 miles, of which there are in operation about 910 miles ; to this may be added 
 395 miles between Santa Rosa and Posadas, and Posadas and ViUa Rica, Paraguay, so 
 surveyed and projected as to bo sure to be built within two years and may bo assumed 
 to be built ; making a total of 2,515 miles. 
 
 THE THIRD ROUTE. 
 
 Tliird. A route from, at, or near Asuncion, Paraguay, as follows: Along the Pel - 
 comayo River, across the Gran Chaco, from near Asuncion to Salinas, near the Bolivian 
 frontier, 620 miles; Salinas to Potosi, Bolivia, 540 miles ; Potosi to La Paz, 385 miles, 
 not built; La Paz to Arequipa, Peru, built, 380 miles; Arequipa to Bogota, about 
 the same distance as from La Paz to Bolivia, 1,880 miles ; Asuncion to Buenos Ayres 
 HO surveyed and projected as to be presumed to be built; in fact, the greater part 
 built, 1,020 miles; from which may l)o reasonably deducted the distance from Buenoa 
 Ayres to Asuncion, 1,020 miles, and from La Paz to Arequipa, built, 480 miles, leaving 
 a total of 3,252 miles.
 
 THE UNITED STATES AND LATIN AMERICA. 18 
 
 This hitter route has been projected l>y the great Buenos Ayres railroad kiuj^s, the 
 Messrs. Clark, though only to Arequipa, and is called "The South American Itail- 
 ■way," 
 
 THE LINE FKOM BUICNOS AYRKS TQ VALPARAISO. 
 
 The whole line from Buenos Ayres to Vali)araiso will shortly be thrown open to 
 trade. This line, when liiiished, will revolutionize trade, and divert most of that of 
 the Pacific coastof Chili and Bolivia to Buenos Ayres, instead of around the cape, the 
 distance being miich less and the freights much cheaper. It will also greatly facili- 
 tate travel, the mail, specie, and valuable packages of merchandise to and from Aus- 
 tralia, putting Melbourne and London within a voyage of thirty -seven hours; in fact, 
 connecting the Pacific and Atlantic between Valparaiso and Buenos Ayres, the time 
 required being only forty hours. 
 
 This connection and communication has given rise to a fourth international pro- 
 jected route, as follows : Buenos Ayres to San Felipe, in the Argentine Republic, 
 built, 660 miles ; San Felipe to Coquimbo, partly built, 2.50 miles ; and from Coquimbo 
 to Lima, 1,320 miles ; Lima to Bogota, 1,100 miles ; total, 3,330 miles. Of this route — 
 Coquimbo to Bogota — parts have been built, notablj^ the line from Yea to Chaucay, 
 passing Lima, about 300 miles; other short connections, approximating 250 miles — a 
 total of 550 miles; deducting 660 miles already built, there is still to be constructed 
 2,120 miles. 
 
 This route, throughout its entire length, runs along the Andes, until it reaches 
 Quito, or Guayaquil, in i^cuador, whence it turns northeast towards Bogota. It is 
 said to be the richest mineral route of the world, including the regions of gold and 
 silver originally discovered by the Spaniards. 
 
 THE FIFTH ROUTE. 
 
 A fifth route has just been developed, and a concession granted therefor, called the 
 International Argentine and Bolivian Railway, to run from Buenos Ayres to some 
 point near Corrientes, thence to Oran, near the Bolivian frontier. This route pre- 
 sumes that the railway connections between Buenos Ayres and Corrientes will soon 
 be completed, a distance of about 700 miles ; Corrientes to Oran, 465 miles ; Oran to 
 Bolivian frontier, 96 miles; Bolivian frontier to La Paz, 550 miles ; La Paz to Bogota, 
 1,880 miles; total, 3,691 miles; deducting 700 miles presumed to be built from Buenos 
 Ayres to Corrientes, and about 365 miles of connections between La Paz and Bo- 
 gota already built, leaves still to be constructed 2,626 miles. 
 
 It will be observed that these five routes have been treated as international routes * 
 between Buenos Ayres and Bogota. By this we do not mean to say that they are 
 intended by the projectors as such, but are described because they all tend in that 
 direction, and, as far as they go, will, or might be, a part of that great international 
 highway, thus leaving so much the less to be constructed. 
 
 It will also be seen that of the five proposed routes between the two cities there 
 remains to be built as follows: Route from Buenos Ayres via Jujuy and La Paz, 
 2,070 miles; Buenos Ayres via Asuncion (Paraguay), La Paz, Sucre, etc., 2,515 miles ; 
 Buenos Ayres, connecting with the Clark South American Railway near Asuncion, 
 across the Gran Chaco, to Salinas, Sucre, La Paz, etc., 3,225 miles; Buenos Ayres to 
 San Felipe, thence along the Andes to Coquimbo, Lima, etc., 2,120 miles ; Buenos 
 Ayres via Corrientes, Oran. La Paz, etc., 2,626 miles. There are other routes pro- 
 jected, for which concessions have been granted, all tending toward Bogota ; but the 
 five already described are the principal. 
 
 AID FROM SOUTH AMERICAN GOVERNMENTS. 
 
 As above stated, every encouragement, both material and moral, will be given to 
 ^the construction of this interuational road by the different republics through which
 
 14 TRADE AND TRANSPORTATION BETWEEN 
 
 it will pass. The material aid, vrhicli is the most important, may be approximated 
 by the general rule in this regard adopted by the Argentine Republic and other South 
 American states — that is, a guaranty of from 5 to 7 per cent, per annum on all sums 
 invested in construction, and a most liberal grant of lands along the road. 
 
 The lino throughout its entire length would pass through countries teeming with 
 the most valuable articles of commerce, such as coflee, cacao, quinine, sugar, man- 
 dioca, vanilla, tobacco, botanical, medical, and dye-stuflfs, and timber and wood of 
 the most valuable sorts. 
 
 From time immemorial these countries have been regarded as the land of gold, 
 silver, and other precious metals, and also copper, lead, bismuth, salt, nitrate of soda, 
 magnesia, etc. 
 
 The hitherto unexplored regions of Bolivia were supposed to be especially rich in 
 deposits of gold and silver, and recent discoveries show that the fabled land of the 
 followers of Cabot, supposed to be somewhere in Bolivia, where " mighty griffins" 
 watched like "incarnate death" over " caves of gold and diamonds," has not been so 
 grossly exaggerated, but that, stripped of all poetry, immense mines and deposits of 
 the precious metals do exist in that country, though too remote from highway and 
 habitation to be explored or worked. 
 
 THE EL DORADO OP THE ANCIENTS. 
 
 In the report of the Director of the Mint for 1884 it is stated, upon information 
 from the United States minister to Bolivia, that Chili, Bolivia, and Peru, under ad- 
 vantageous circumstances, would " add 50,000,000 ounces of silver to the world's use 
 annually." " The basin of the Cerro Pasco, in Peru, of 2 miles in length by 1 in width, 
 is so prolific of silver that, without going deeper than 280 feet, over $'200,000,000 
 have have been extracted." ''Every spade that turns the clod reveals the silver." 
 Indeed, the South American Journal and kindred papers are filled with accounts 
 of the mines and deposits of the precious metals from the Argentine Republic to Colom- 
 bia; and when it is remembered that few, if any, of these republics have mints, but 
 export their gold to be coined, it can be easily imagined what this would amount to 
 in the way of freight. 
 
 The great diamond fields of the world are also along these routes or in proximity 
 thereto. 
 
 Even Colombia, not heretofore regarded as so abundant in these metals as Peru, 
 Bolivia, etc., seems, from recent accounts, to bo rich in mines and di'posits. Mr. 
 Charles Dunlop, writing in this regard in August last, says, among other things, that 
 "the immense value and extent of the mineral resources of Colombia are not a mere 
 matter of conjecture ; their reality lias long since been established on the basis of ex- 
 perience. * * * Of all fields for mining enterprise there are few equal to this 
 hitherto little known region." 
 
 Independent of gold and silver, diamond and emerald, however, the legitimate in- 
 ternal conmierce of the states through which this international road would directly 
 l)ass, and the adjacent country drained thereby, amounts, under the unfavorable con- 
 ditions now attached to it, to over $600,000,000 per annum. What would it not, 
 amount to when stimulated and developed by this proposed international line f
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 15 
 
 n. 
 
 WHAT IS SENT TO LATIN AMERICA. 
 
 Very few people have any idea of tbc infinite variety of the manufact- 
 ured merchandise sent to Central and South America. Coi)ies of mani- 
 fests have been furnished me by the managers of several of the steam ship 
 companies, which show each article included in the cargoes of their 
 ships, and from them the following list has been made up : 
 
 Agricultural implements. 
 
 Asbestos. 
 
 Anise seed. 
 
 Advertising matter. 
 
 Axle grease. 
 
 Apples. 
 
 Air guns. 
 
 Asliphalt. 
 
 Alcohol. 
 
 Acetate of lime. 
 
 Acid. 
 
 Arms. 
 
 Ammonia. 
 
 Ash. 
 
 Art leather. 
 
 Almonds. 
 
 Aniline dyes. 
 
 Butter, 
 
 Blacking. 
 
 Bread. 
 
 Bellows. 
 
 Books. 
 
 Bacon. 
 
 Beans. 
 
 Belting. 
 
 Beer. 
 
 Bicycles. 
 
 Batteries. 
 
 Baby cabs. 
 
 Brass. 
 
 Bottles. 
 
 Burial cases. 
 
 Bustles. 
 
 Bronzes. 
 
 Brass goods. 
 
 Beeswax. 
 
 Britannia ware. 
 
 Belt laces. 
 
 Buttons. 
 
 Bags. 
 
 Brushes. 
 
 Brimstone. 
 
 Blocks. 
 
 Bitters. 
 
 Broom-corn. 
 
 Barrows. 
 
 Bells. 
 
 Beef. 
 
 Bran. 
 
 Billiard cloth. 
 
 Bungs. 
 
 Billiard tables. 
 
 Boilers. 
 
 Bark. 
 
 Billiard strips. 
 
 Borax. 
 
 Billiard goods. 
 
 Bath-bricks. 
 
 Bath-tubs. 
 
 Cartridges. 
 
 Cotton goods. 
 
 Cheese. 
 
 Crucibles. 
 
 Cumin seed. 
 
 Canned goods. 
 
 Cattle. 
 
 Coffee. 
 
 Clocks. 
 
 Cocoa. 
 
 Candles. 
 
 Cutlery. 
 
 Corks. 
 
 Copper goods. 
 
 Corn. 
 
 Car material 
 
 Cartridge shells. 
 
 Cement. 
 
 Combs. 
 
 Car wheels. 
 
 Chalk. 
 
 Carriages. 
 
 Codfish. 
 
 Caviare. 
 
 Cane chairs. 
 
 Cane. 
 
 Cotton. 
 
 Cards. 
 
 Cuspadores. 
 
 Canary seed. 
 
 Carbons. 
 
 Coloring. 
 
 Cars. 
 
 Cyclostyles. 
 
 Cigar-maker's boards. 
 
 Cod sounds. 
 
 Candy. 
 
 Caustic potash. 
 
 Caustic soda. 
 
 Corsets. 
 
 Carriage material. 
 
 China. 
 
 Cages. 
 
 Crayons. 
 
 Cassia. 
 
 Corn meal. 
 
 Chvomos. 
 
 Cloves. 
 
 Cordage, 
 
 Clay. 
 
 Clothing. 
 
 Collars. 
 
 Corn flour. 
 
 Cotton-seed hulls. 
 
 Cigarettes. 
 
 Corn starch. 
 
 Castors. 
 
 Celluloid goods. 
 
 Cinnamon. 
 
 Dates. 
 
 Dental goods. 
 
 Dried fish. 
 
 Drugs. 
 
 Dry goods. 
 
 Domestics. 
 
 Druggists' ware. 
 
 Dried fruit. 
 
 Dyes. 
 
 Dental engine. 
 
 Dye-stuffs.
 
 16 
 
 TRADE AND TRANSPORTATION liKTWKEN 
 
 Emery cloth. 
 
 Extract Idi^wood. 
 
 Euaiiiele<l doth. 
 
 Enanuled duck. 
 
 Etifjiuos. 
 
 Electric light material. 
 
 Essential oils. 
 
 Eye-glasses. 
 
 Emi>ty shells. 
 
 Fiiruiture. 
 
 Flour. 
 
 Feather dusters. 
 
 Fliut. 
 
 Feed. 
 
 Feathers. 
 
 Fire-arms. 
 
 Fans. 
 
 Figs. 
 
 Fish-plates. 
 
 Fish. 
 
 Fancy goods. 
 
 Fire-crackers. 
 
 Fuse. 
 
 Frames. 
 
 Fishing-lines. 
 
 Fruit-presses. 
 
 Felt. 
 
 Fancy cards. 
 
 Furs. 
 
 Files. 
 
 Fish-oil. 
 
 Glassware. 
 
 Gelatine. 
 
 Glue. 
 
 Groceries. 
 
 Garlic. 
 
 Grapes. 
 
 Grease. 
 
 Grindstones. 
 
 Gas-fixtures. 
 
 Glass tubes. 
 
 Gum Senegal. 
 
 Galvanized goods. 
 
 Gums. 
 
 Gr i ndstone-fixtures. 
 
 Handcarts. 
 
 Hardware. 
 
 Hams. 
 
 Hops. 
 
 Hats. 
 
 Hogsheads, empty. 
 
 Hose. 
 
 Hoops. 
 
 Hay. 
 
 Household goods. 
 
 Handles. 
 
 Hides. 
 
 Heading. 
 
 Harness. 
 
 Horn tips. 
 
 Hog iiair. 
 
 Hemp. 
 
 Hectograjjhs. 
 
 Iron, manufactured. 
 
 Ink. 
 
 Iron bars. 
 
 Incuimtors. 
 
 Ice-cream freezers. 
 
 Iron safes. 
 
 Xroo tubes. 
 
 Igniting-tai>e3. 
 
 India-rubber. 
 
 .lewelry. 
 
 .Jute. 
 
 .Jai)anned ware. 
 
 Kalsouiiue. 
 
 Lamp goods. 
 
 Lamp-ware. 
 
 Lard. 
 
 Lard-oil. 
 
 Lumber. 
 
 Leather. 
 
 Lime. 
 
 Linseed-oil. 
 
 Locomotive springs. 
 
 Leather belting. 
 
 Lightning-rods. 
 
 Lead-pencils. 
 
 Liibricating-oil. 
 
 Lathe. 
 
 Locomotives. 
 
 Labels. 
 
 Leather bags. 
 
 Machinery. 
 
 Mats. 
 
 Maizena. 
 
 Manufactured wood. 
 
 Mattresses. 
 
 Manufactured tobacco. 
 
 Matches. 
 
 Marble-dust. 
 
 Music. 
 
 Manufactured hair. 
 
 Manufactured zinc. 
 
 Mast-hoops. 
 
 Manufactured copper. 
 
 Matting. 
 
 Minerals. 
 
 Mucilage. 
 
 Match-splints. 
 
 Molds. 
 
 Mineral water. 
 
 Metallic shells. 
 
 Machine-oil. 
 
 Mexican silver. 
 
 Mince-meat. 
 
 Millstones. 
 
 Malt. 
 
 Manufactured marble. 
 
 Notions. 
 
 Nails. 
 
 Nuts. 
 
 Newspapers. 
 
 Needles. 
 
 Oat«. 
 
 Onions. 
 
 Oakum. 
 
 Orguinettcs. 
 
 Oii-cloth. 
 
 Oars. 
 
 Oil-cake. 
 
 Oatmeal. 
 
 Olive-oil. 
 
 Oak. 
 
 Organs. 
 
 Olives. 
 
 Paint. 
 
 Photographer's material. 
 
 Paper. 
 
 Petroleum. 
 
 Plaster. 
 
 Primed shells. 
 
 Plated ware. 
 
 Pumps. 
 
 Porcelain bowls. 
 
 Pumice stone. 
 
 Packing. 
 
 Pork. 
 
 Peas. 
 
 Pimento. 
 
 Pictures. 
 
 Pickled fish. 
 
 Perfumery. 
 
 Pitch. 
 
 Pepper. 
 
 Potatoes. 
 
 Pencils. 
 
 Patent leather. 
 
 Post-ofhce lock-boxes. 
 
 Paper caps. 
 
 Paper boards. 
 
 Paper fashions. 
 
 Pop- corn. 
 
 Porcelain ware. 
 
 Percussion caps. 
 
 Pins. 
 
 Printing material. 
 
 Pianos. 
 
 Pickles. 
 
 Paraffine oil. 
 
 Parafline wax. 
 
 Printing types. 
 
 Paper hangings. 
 
 Rosin. 
 
 Railroad material 
 
 Rosin oil. 
 
 Revolvers. 
 
 Rubber belts. 
 
 Railroad cars. 
 
 Raisins. 
 
 Rivets. 
 
 Railroad spikes. 
 
 Refrigerators. 
 
 Rice. 
 
 Spikes. 
 
 Sausages. 
 
 Syringes. 
 
 S. board. 
 
 S. M.oil. 
 
 Stationery. 
 
 Shoes. 
 
 Shooks and heads. 
 
 Scales. 
 
 Sugar. 
 
 Sandpaper. 
 
 Sowing machines. 
 
 Soup paste. 
 
 S. cane spreaders. 
 
 Straw board. 
 
 Surgical instruments. 
 
 Shafts. 
 
 Stove [tolish. 
 
 Staples. 
 
 Saw teeth. 
 
 Salad dressing. 
 
 Slates. 
 
 Sperm oil. 
 
 Silverw.are. 
 
 Saddlery. 
 
 Specie.
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 17 
 
 Silex. 
 
 Snuflf. 
 
 SoiisHors. 
 
 Siliciito of soda. 
 
 Starch. 
 
 S. lighters. 
 
 Skins. 
 
 Spirits of turpentine. 
 
 Sewing-machine needles. 
 
 Shoe laces. 
 
 Saws. 
 
 Steel rails. 
 
 Sand. 
 
 Shot. 
 
 Soap-grease. 
 
 Shade fixtures. 
 
 S. nails. 
 
 S. trucks. 
 
 Sulphur. 
 
 S. M. parts. 
 
 Sponges. 
 
 Straw goods. 
 
 Scieutilic instruments. 
 
 Sickles, 
 
 Sabers. 
 
 Salves. 
 
 Shell-primers. 
 
 Sarsaparilla. 
 
 Shawl-straps. 
 
 Stearic acid. 
 
 Sheet-iron. 
 
 Straw covers. 
 
 Toys. 
 
 Trunks. 
 
 Tools. 
 
 Telegraph material. 
 
 Trucks. 
 
 Tin. 
 
 Tar. 
 
 Tobacco. 
 
 Toothpicks. 
 
 Tacks. 
 
 Tinware. 
 
 Toiletware. 
 
 Tea. 
 
 Tinfoil. 
 
 Tallow. 
 
 Toilet sets. 
 
 Typewriters. 
 
 Tongues. 
 
 T. hoops. 
 
 Tarpaulin. 
 
 Tiles. 
 
 Telephones. 
 
 Thread. 
 
 Tags. 
 
 Tallow scraps. 
 
 Twine. 
 
 Tent material. 
 
 Tin-plate. 
 
 Varnish. 
 
 Vegetables. 
 
 Velocipedes. 
 
 Valises. 
 
 Wood ware. 
 
 Wood, manufactured. 
 
 Wick. 
 
 Windmills. 
 
 Whalebone. 
 
 Wax. 
 
 Waste. 
 
 Wads. 
 
 Wood sticks. 
 
 Wire. 
 
 Whiting. 
 
 Wheat. 
 
 Window glass. 
 
 Whips. 
 
 Wheels. 
 
 Walnut. 
 
 Wine. 
 
 Wheelbarrows. 
 
 Watches. 
 
 Wall paper. 
 
 Whitewood. 
 
 Water-wheels. 
 
 Yellow metal. 
 
 Zinc. 
 
 WHERE THE ARTICLES COME FROM. 
 
 These articles are contributed by nearly every one of our States. 
 Thus not only the merchants and manufacturers of the sea-board cities 
 are interested in the extension of this commerce, but every producer in 
 the Central and Western States as well. Not long ago the Brazilian 
 Mail Steamship Company traced to its source every article that com- 
 posed the cargo carried by its steam-ships to Brazil, and the following 
 statement shows the share of each State, in the freights on one south- 
 ward voyage of the Finance : 
 
 states. 
 
 Per cent. 
 
 States. 
 
 Per cent. 
 
 States. 
 
 Per cent. 
 
 
 0.05 
 3.00 
 0.28 
 8.52 
 5.31 
 0.23 
 0.28 
 2. 75 
 0.27 
 
 
 0.28 
 10.07 
 4. 33 
 2.21 
 3.12 
 0.41 
 8.24 
 28.56 
 1.75 
 
 19. Peunsylv.ania ... 
 
 20. Nortli Carolina.. 
 
 21. South Oaroliua.. 
 
 22. Kliodc Island.... 
 
 23. Vermont 
 
 11 35 
 
 2. Couni'ctiiiit 
 
 3. Dolawiire 
 
 11. Mas.sacLusetta 
 
 12. Mis.soiiri 
 
 13. Michigan 
 
 0.45 
 0.45 
 0.70 
 
 
 1-1. Minnoaota 
 
 0.87 
 
 6. Iowa 
 
 0.05 
 
 7. Imliiina. 
 
 16. New Jersey 
 
 17. Kew York 
 
 18. Ohio 
 
 25. "Wisconsin 
 
 0.47 
 
 8. Kansas 
 
 
 100. 00 
 
 
 
 
 S. Ex. 5i-
 
 18 
 
 TRADE AND TKANISI'OKTATION BETWEEN 
 ANOTHER CABGO. 
 
 The followiug statemeut shows the share of each State in another 
 cargo that was carried to Brazil by the Finance : 
 
 states. 
 
 Per cent. 
 
 States. 
 
 Per cent. 
 
 States. 
 
 Per cent. 
 
 
 0.05 
 7.00 
 0.05 
 11.40 
 2.00 
 0.40 
 0.25 
 0.25 
 0.25 
 
 10. Micbigan 
 
 11. Massachusetts ... 
 
 12. Minnesota 
 
 3.00 
 14 00 
 0.90 
 1.85 
 0.10 
 0.60 
 4.75 
 25.75 
 2.00 
 
 19. Oregon 
 
 0.05 
 
 
 20. Pennsylvania 
 
 21. Rhode Island 
 
 22 South Carolina .. 
 23. Vermont 
 
 20.25 
 
 
 2.10 
 
 
 0.65 
 
 
 
 0.10 
 
 
 15. Noit h Carolira 
 
 16. New .lersey 
 
 17. New York 
 
 18. Ohio 
 
 0.50 
 
 
 25. Wisconsin 
 
 1.75 
 
 
 
 
 -100. 00 
 
 
 
 
 THE CARGO OF THE ALLIANCE. 
 
 The following statement shows the proportion contributed by each 
 State to the total value of the cargo of the steam-ship Alliance, which 
 sailed from New York for Brazil on April 2 last : 
 
 States. 
 
 Value. 
 
 ' States. 
 
 Value. 
 
 States. 
 
 Value. 
 
 New York 
 
 $74, 546. 00 
 96.00 
 20, 908. 00 
 19, 331. 47 
 17,054.40 
 43, 065. 00 
 11,874.00 
 11,332.00 
 9, 096. 00 
 7, 190. 00 
 6, 230. 00 
 6, 035. 00 
 5, 773. 00 
 
 
 $5, 096. 00 
 4, 020. 00 
 3, 732. 00 
 3, 704. 54 
 2, 765. 00 
 2, 668. 00 
 2, 647. 00 
 2, 359. 00 
 2, 056. 00 
 2,111.00 
 1, 800. 00 
 1, 183. 00 
 1, 150. 00 
 
 
 $807. 00 
 
 Vermont ■ 
 
 Rhode Island 
 
 South Carolina 
 
 Kentucky 
 
 Wisconsin 
 
 587.00 
 781.00 
 
 
 
 576. 00 
 
 
 
 239. 00 
 
 
 
 Dakota 
 
 220. 00 
 
 
 North Carolina 
 
 Texas 
 
 162. 00 
 
 
 
 125. 00 
 
 
 
 
 56.00 
 
 
 
 
 40.00 
 
 Ohio 
 
 
 Total 
 
 
 New Hampshire 
 
 
 301,417.41 
 
 
 
 
 
 
 From the above statement it appears that thirty-six States and Ter- 
 ritories participated in the shipment of goods to Brazil by a single 
 steamer, and that cargo was a type of others that are sent regularly. 
 These goods come from the South and Western Territories, from Texas 
 and from Maine, from Delaware and Minnesota, from Dakota as well as 
 Connecticut. 
 
 THE ARTICLES CONTRIBUTED BY EACH STATE. 
 
 I have before me the manifest of the cargo carried by the steamer 
 Finance upon a recent voyage to Brazil, each article of wliich has been 
 traced to its source. It is impossible within the limits of this paper to 
 give a complete copy of the invoice, but the following sample shipments 
 will show the character of the goods composing the cargo, and the States 
 from which they come :
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 19 
 
 SUtes. 
 
 Articles. 
 
 States. 
 
 Articles. 
 
 California 
 
 2 casks of wine. 
 
 Maine 
 
 15 packages cod-liver oiL 
 70 boxes canned fish. 
 
 Connecticut 
 
 P cases of cif;arH. 
 
 
 
 1 box trunk loclis. 
 
 Maryland 
 
 20 cases canned tomatoes. 
 
 
 10 caBCM of kitclicn lianlware. 
 
 
 195 cases lard. 
 
 
 1 l)un(lIo tubs. 
 
 Massachusetts.. 
 
 1 bale blue domestics. 
 
 
 50 cascts of axes. 
 
 
 2 cases ot silver philed ware. 
 
 
 53 packagoa clocks. 
 
 
 7 cases metiiUie. cartridges. 
 
 
 1 case straw goods. 
 
 
 35 cases j)rintinK ink. 
 
 
 22 cases axes. 
 
 Michigan 
 
 10 cases of furniture. 
 
 Dulinvare 
 
 59 packages car material. 
 20 Dales brown drills. 
 
 
 6 crates of oars. 
 
 Georgia 
 
 
 1,500 packages white pine 
 
 
 42 cases of priut drills. 
 
 
 shingles. 
 
 
 44 bales cof ton domestics. 
 
 Minnesota 
 
 410 barrels flour. 
 
 
 80 cases blue drills. 
 
 North Carolina . 
 
 980 barrels rosin. 
 
 
 1 barrel sewinguiacbiue oil. 
 
 
 20 barrels spirits tur})cutine. 
 
 
 60 cases sbeetiugs. 
 
 New Jersey 
 
 219 cases sewing machines. 
 
 
 1 package samples. 
 
 
 1, 000 boxes beans. 
 
 
 10 cases pin cbecks. 
 
 New York 
 
 9 barrels kero.seno oil. 
 
 
 30 bales gray sheeting. 
 
 
 2 cases of i)unip8. 
 
 
 20 bales duck. 
 
 
 49 packages stoves. 
 
 Illiuois 
 
 32 cases corn shellers. 
 
 
 32 trunks. 
 
 
 I case velocipedes. 
 
 
 1 case rowing machines. 
 
 
 9 bundles wheel plows. 
 
 
 30 cases perlumery. 
 
 
 1 bundle meatcnttbrs. 
 
 Ohio 
 
 200 boxes of maizena. 
 
 
 12 crates stoves. 
 
 
 1 keg oat-meal. 
 
 
 5 barrels pork. 
 
 
 2 cases cheese. 
 
 
 1 7 cases agricultural imple- 
 
 
 18 packages lamps. 
 
 
 ments. 
 
 
 10 cases house-turnishiug goods. 
 
 
 4 cases harrows. 
 
 Pennsylvania... 
 
 7 cases railroad brakes. 
 
 Iowa 
 
 5 cases plows. 
 18 coils wire. 
 
 
 70 barrels kerosene oil. 
 
 
 
 8 cases lamp chimneys. 
 
 
 7 kegs staples. 
 
 
 2 cases rubber car-springs. 
 
 
 90 reels barbed wire. 
 
 Rhode Island . . . 
 
 4 cases hardware. 
 
 
 4 bundles fleece dew. 
 
 South Carolina . 
 
 20 cases turpentine. 
 
 
 79 kegs nails. 
 
 Vermont 
 
 2 cases of prints. 
 
 
 1 case wire stretchers. 
 
 Virginia 
 
 5 bales of t«bacco. 
 
 
 2 cases butts. 
 
 
 2 cases smoking tobacco. 
 
 Louisiana 
 
 5 bales gray cotton. 
 
 
 40 barrels flour. 
 
 
 39 barreis pickled fish. 
 53 boxes dried fish. 
 
 
 75 barrels maize flour. 
 
 
 
 20 barrels rye flour. 
 
 And so on, the goods being contributed by nearly every State. It is 
 noticeable in this invoice that most of the cottons come from Georgia, 
 most of the flour from Minnesota, most of the barbed wire from Iowa, 
 most of the agricultural implements from Illinois, and most of the sew- 
 ing machines from New Jersey. 
 
 CAKGO OF STEAMER ALLIANCA. 
 
 From the invoice of the cargo of the steamer Alianca the following 
 notes are taken : 
 
 SUtes. 
 
 Articles. 
 
 states. 
 
 Articles. 
 
 
 1 case dancing cloth. 
 1 crate stump pullers. 
 
 
 1,260 cases blue drills. 
 
 
 
 
 20 cases white drills. 
 
 
 California 
 
 6 cases salmon. 
 
 
 100 cases cotton goods. 
 
 
 
 6 cases lobsters. 
 26 cases oysters. 
 
 
 5 crates corn shellers. 
 
 63 packages plow castings. 
 
 
 
 
 
 Dakota 
 
 50 bags oats. 
 30 bales hay. 
 
 
 41 cases hardware. 
 300 cases lard. 
 
 
 
 
 Connecticut 
 
 24 cases sowing machines 
 
 
 80 cases wheel barrows. 
 
 
 
 20 cases silver-plated ware 
 
 
 50 Ciises agricultural im p 1 
 
 e- 
 
 
 1 case paper fasteners. 
 
 
 meuts. 
 
 
 
 1 case seU-inking pads. 
 1 case gold penholders. 
 
 Indiana 
 
 10 crates refrigerators. 
 
 
 
 
 1 box locks. 
 
 
 
 27 cases clocks. 
 
 
 87 cases household utensils. 
 
 
 Delaware 
 
 5 bundles pump fixtures. 
 
 
 7 cases carpenter's tools. 
 
 
 
 4 packages brooms. 
 
 Iowa 
 
 70 boxes axes. 
 
 
 Florida 
 
 2 eases photographic gooda. - 
 
 
 1 case cut tacks. 

 
 20 
 
 TRADE AND TRANSPORTATION IJETWEEN 
 
 ■ '^nr 
 
 "■•T ■ ■* ■ '■'' 
 
 '= — 
 
 States. 
 
 Article. 
 
 States. 
 
 Article. 
 
 Iowa -. 
 
 1 case hardware. 
 
 New Hampshire 
 
 C cases phiid drills. 
 
 45 Ciise.s l)leaclied sheetings. 
 
 
 1 case blotting paper. 
 
 Kentucky 
 
 3 casi's bic.ycli's. 
 
 
 11 eases bhu< llanrels. 
 
 
 4 casi'8 medicine.' 
 
 New Jersey 
 
 10 eases preserved butter. 
 
 
 8 packages perfumery. 
 
 
 2:i0 cases medicines. 
 
 
 80 coils wire. 
 
 
 2 packages patent medicine. 
 
 
 1 horse (Prince Wilkes). 
 
 New York 
 
 l.l portable forges. 
 
 
 16 barrels wire tacks. 
 
 Missouri 
 
 10 packages fans. 
 
 
 1 package oencils. 
 
 
 10 packages pencils. 
 
 Kansas 
 
 8 corn shellers. 
 
 
 1 package locks. 
 6 cases woodworking machin- 
 ery. 
 
 
 30 cases plows. 
 20 feed cutters 
 
 Ohio 
 
 
 
 Louisiana 
 
 15 boxes Sapolio. 
 
 
 10 cases wooden ladders. 
 
 
 .") cases colored cloth. 
 
 
 30 sewing niachiaes. 
 
 
 10 boxes axes. 
 
 
 12 cases com shellers. 
 
 Maine ..--.. 
 
 53 cases shrimps. 
 
 16 cases blue sheetings. 
 
 1.957 pieces white pine. 
 
 
 4 cases pumps. 
 
 772 pieces wbito pine. 
 
 15 packages horse-car trim- 
 
 
 Oregon 
 
 
 Penn.sylvania... 
 
 
 12 cases cod-liver oil. 
 
 
 mings. 
 
 Maryland 
 
 30 barrels lard. 
 
 Rhode Island . . . 
 
 68 cases edged tools. 
 
 
 150 tierces lard. 
 
 
 10 ca.sos iudia-rubbor goods. 
 
 
 2 packages engraving paper. 
 
 
 1 case silver-plated ware. 
 
 
 500 cases lard'. 
 
 North Carolina. 
 
 361 barrels rosin. 
 
 
 2 cases shoes. 
 
 
 25 cases gray cotton. 
 
 
 20 packages biscuits. 
 
 Tennessee 
 
 6 cases slippers. 
 
 Massachusetts... 
 
 4 barrels beans. 
 
 
 2 cases pictures. 
 
 
 6 cases blue drillings. 
 
 
 4 packages druggists' sundries. 
 
 Michigan 
 
 21 cases household goods. 
 
 
 3 packages medicine. 
 
 
 24 packages medicine. 
 
 Texas 
 
 8 packages agricultural imple- 
 
 
 20 packages furniture. 
 
 
 ments. 
 
 Minnesota 
 
 1 case builders' hardware. 
 
 
 1 case photo-cotton. 
 
 
 10 ( ases sandpaper. 
 
 Virginia 
 
 25 cases manufactured tobacco. 
 
 
 3 cases crayons. 
 
 
 1 hogshead loaf tobacco. 
 
 
 700 barrels tlour. 
 
 
 30 baiTcls corn flour. 
 
 Mississippi 
 
 1,344 bundles staves. 
 
 Wisconsin 
 
 21 cases scales. 
 
 
 490 bundles hoops. 
 
 
 370 bundles staves. 
 
 
 10 bundles potato flour. 
 
 
 12 cases carpenters' tools. 
 
 Nebraska 
 
 1 box notions. 
 
 
 2 cases builders' hardware. 
 
 These cargoes were not selected, but were taken at random, and at- 
 tempts were made, which were successful in nearly every case, to discover 
 the origin of each article. The result which is given above shows very 
 clearly that every one of the Western and Central States, as well as 
 those of New York and New England, have a local interest in the de- 
 velopmeut of our trade with Brazil. The Southern States, particularly 
 Georgia, which is just now commencing to develop some mechanical 
 industries, have a great deal at stake in this movement to secure en- 
 larged markets. The cotton goods produced at the mills of Georgia 
 and the other States of the South are especially adapted to the trade 
 of South America, and the slightest effort only is necessary to build it 
 up to a profitable magnitude.
 
 THE UNITED STATES AND LATIN AMERTC'A. 21 
 
 III. 
 
 HISTORY OF THE INTERNATIONAL CONGRESS. 
 
 There have been two attempts to hold an International American 
 Congress. In 1825, during^ the administration of John Quincy Adams, 
 General Bolivar, who was then President of the United States of Colom- 
 bia, invited the several American nations to join in a congress to be 
 held at Panama in Jnne, 182G. 
 
 President Adams accepted the invitation, and nominated Richard C. 
 Anderson and John Sargent as delegates on the part of the United 
 States, and William B. Kochester as secretary to the mission. The 
 message containing the nominations was referred to the Committeee on 
 Foreign Eelations of the Senate, by whom a report was made on the 
 IGth of June, 182G, condemning the mission, and concluding with a res- 
 olution declaring it inexpedient for the United States to join the pro- 
 l)osed congress. 
 
 The report was rejected by the Senate, and on the 14th of March, 182G, 
 the recoramedations of the President were adopted by a vote of 24 to 
 10. On the 2Lst of April the House of Representatives, by a vote of 
 133 to Gl, passed a bill making appropriations for the mission. 
 
 Orders were transmitted to Mr. Anderson, who was then minister to 
 Colombia, to attend the congress, but on his way to Panama he died 
 of a malignant fever. His colleague, Mr. Sargent, found it impossible 
 to attend the congress, and thus the United States was not represented. 
 
 The congress was held, however, on Juue 22, 182G, and continued in 
 session until July, concluding a treaty of friendship widi all the Ameri- 
 can powers who had been invited tojoin. 
 
 The congress adjourned to meet in February, 1827, at Tacubaya, a 
 suburb of the city of Mexico. Mr. Poinsett, United States minister to 
 Mexico, was appointed commissioner to this congress in place of Mr. 
 Anderson (deceased), and Mr. Sargent, his colleague, went to Mexico, 
 but the congress did not assemble, owing to disturbing revolutions in 
 nearly all the countries invited tojoin. 
 
 In 1881, as will be remembered, Mr. Blaine sent invitations to the' 
 Spanish nations to meet the United States in a similar congress, and 
 they were generally accepted, but, subsequent to the retirement of Mr. 
 Blaine from the Cabinet, the enterprise was abandoned to be renewed
 
 ^2 TRADE AND TRANSPORTATIOX BETWEEN 
 
 by Air. Freliiigihuyseu, his suGce.ssor in office, through the South Anier- 
 icau Commission. 
 
 THE SOUTH AMERICAN COMMISSION. 
 
 The first serious attention given by the Government of the United 
 States to the condition of our longitudinal trade was in 1884, when the 
 Congress passed an act authorizing the President to appoint a com- 
 mission '' to ascertain and report upon the best modes of securing more 
 intimate international and commercial relations between the United 
 States and the several countries of Central and South America." 
 
 This commission, before leaving the United States, held public con- 
 ferences with the merchants of Boston, Baltimore, Philadelphia, New 
 York, New Orleans, and San Francisco, and then proceeded to visit the 
 several capital cities and commercial centers of Central and South 
 America. It was instructed by the Department of State to confer with 
 the proper officials of each of the governments to which it was accredited 
 concerning the advisability of calling such an International American 
 Congress as is to assemble on the 2nd of October next, and, wherever it 
 found a disposition to favor such a gathering, to invite suggestions as to 
 topics to be discussed. 
 
 At its official conferences with all of the governments visited, with a 
 single exception, the commission was honored with the presence of the 
 chief executive and his entire cabinet. This exception occurred in Costa 
 Eica, and was due to the fact that the late General Hernandez, then 
 President, was lying upon his death bed. The Primero Designado, or 
 first vice president, however, appeared as his representative, with full 
 powers. 
 
 AN INTERNATIONAL CONGRESS INDORSED. 
 
 It should be said, also, that all of the Governments visited cordially 
 indorsed the proposition for an international conference, with the ex- 
 ception of Chili, where the President announced that the subject would 
 be held under advisement. The act of Congress, approved May 24, 
 1888, under which a call was issued, includes a list of topics suggested 
 or assented to by all of the Governments except Chili. The only topic 
 which had the entire approval of that Government was the sixth, which 
 relates to the adoption of a common silver coin. This proposition met 
 the decided api)robation of the President of Chili and his entire cabinet, 
 and there was a unanimous expression of opinion that such a coin 
 would be of immense advantage to all silver-producing States and 
 greatly facilitate commerce, which is embarrassed by the lack of a uni- 
 form standard of value. 
 
 RESULTS OF THE INVESTIGATION. 
 
 The report of the Commission having been made to the Congress of 
 the United States, bills were introduced in botli Houses to carry out
 
 THE UNITED STATER AND LATIN AMERICA. ^ci 
 
 its recommendations, passing the Senate nnanimously, and the IToiiae 
 with veiy little opposition. 
 
 The Commission, also, in obedience, to its instructions " to ascer- 
 tain the best methods of promoting commercial relations between the 
 United States and the several countries of Central and South America," 
 invited conferences with the importing merchants and other business 
 men at all of the principal ports and commercial centers of the coun- 
 tries it visited, and from them gained much information and many sug- 
 gestions of great value to the merchants and manufacturers of the 
 United States. It is a matter of profound gratification that, with the 
 reports of the Commission, public interest in the extension of our trade 
 with Central and South America was revived and stimulated, and 
 greatly increased exportations to those continents have been the result. 
 
 The Commission in its investigations, which were continued for 
 about fourteen months, ascertained and reported to Congress that the 
 obstacles in the way of increased commercial relations between the 
 United States and the several countries of Central and South America 
 were: 
 
 OBSTACLES IN THE WAY OF TRADE. 
 
 (1) The failure of the manufacturers and merchants of this country 
 to understand and comply with the peculiar requirements of the trade, 
 both in the production of merchandise suitable to the markets and in 
 the preparation and packing of such merchandise for shipment. 
 
 (2) The failure of the manufacturers and merchants of the United 
 States to extend to their customers in Central and South America the 
 credits allowed them by European houses. 
 
 (3) The lack of banking facilities which makes it necessary to trans- 
 act all commercial business through the banks of London, and the pay- 
 ment of exorbitant rates of interest and exchange. 
 
 (4) The infringement of the patents and the forgery of trademarks of 
 the American manufacturers, and the manufacture in Europe of bogus 
 and inferior imitations of American merchandise for the purpose of de- 
 ceiving the people. 
 
 (5) The lack of a common system of weights and measures, and a uni- 
 form standard of value. 
 
 (6) The enormous, and in many cases almost i>rohibitory, duties 
 cbarged upon imported merchandise by most of the countries of Cen- 
 tral and South America, which, so far as they relate to the peculiar 
 products of the United States, might be removed or considerably re- 
 duced by arranging for reciprocal concessions, and under instructions 
 from the Department of State the Commission initiated the negotiation 
 of treaties to this end with several of the Governments it visited. 
 
 (7) The complex, and in many cases unreasonable, regulations of the 
 customs service in many of the ports of Central and South America, 
 the practice of imposing exorbitant fines and penalties for uuinten-
 
 24 TRADE AND TRANSPORTATION HETWEEN 
 
 tioiial violations of such re«;ulations, and tlic lack of a nniforni and just 
 method of appraising the value of goods iini)0ited at these ports. 
 
 LACK OF TRANSPORTATION THE FUNDAMENTAL OBSTACLE. 
 
 There were several other minor obstacles discovered and reported 
 upon, but the chief and fundamental reason for our lack of trade in the 
 Americau hemisphere was found to be the absence of facilities for rapid 
 and regular communication and transportation, which is due to the 
 failure of the Government of the United States to aiford the same en- 
 couragement and assistance to American steam-ship lines that are en- 
 joyed by their European rivals. 
 
 It was the conclusion of the Commission, based upon the current tes- 
 timony of several hundreds of merchants engaged in business upon the 
 three continents, that it is impracticable to attempt to extend our trade 
 in Central and South x\merica as long as the transportation fiicilities 
 are under the control of our rivals, and the few steam-shii) lines between 
 New York and the Latin-American ports are compelled to compete with 
 the heavily subsidized vessels of England, France, Germany, Italy, Hol- 
 land, and Spain. 
 
 The difference in the cost of maintaining and navigating steam-ships 
 under the flag of the United States is so great that our vessel- owners 
 are compelled to charge higher rates of transportation than competing 
 foreign lines or abandon the trade entirely. Every American steam-ship 
 that visits a port in Central and South America is required to enter into 
 direct competition with rivals that are not only able to maintain them- 
 selves at from .'50 to 50 per cent, less cost, but receive generous subsidies 
 from the treasuries of the nations whose flags they carry, to guarantee 
 them against loss, and in many instances it is cheaper to ship merchan- 
 dise from the ports of the United States via Europe, upon European 
 steamers, than to send them direct upon American steamers. Single 
 comi)eting foreign vessels in many cases receive for every voyage twice 
 and even four times as much compensation for carrying the mails as the 
 entire fleet of an Americau company is paid for the whole year. 
 
 That the expansion of our trade under similar advantages to those 
 enjoyed by our Euro])ean rivals was not only possible but natural was 
 the irresistible conclusion of the Commission, and it was based n])on the 
 unanimous testimony of every merchant with whom it conferred. That 
 we can sell at least as much as we buy in Latin America, if not a much 
 larger amount, was clearly demonstrated, and the desire of the people 
 of the countries visited for closer and enlarged commercial relations 
 with the United States was manifested in an unmistakable manner. 
 
 THE COMMERCE OF 1888. 
 
 Theexports of the Latin American nations, as has been stated, amount 
 to about $50(1,000,000 annuaUy, ami of them the United States in 1888
 
 THE IINITKD STATES AND LATIN AMERICA. 25 
 
 purchased $1 SI, 000,000; En^Hand, $01,000,000; France, ${»0,000,000; and 
 Germany, $30,000,000. Our imports consisted of coftee, $52,000,000 ; 
 sugar, $SO,000,000; tobacco, $18,000,000 ; rubber, $12,000,000; hides, 
 $11,000,000; ihix, jute, and hemp, $5,000,000; drugs, dyes, and chemi- 
 cals, $4,000,000 ; wool, $2,500,000, and fruits, $2,500,000. 
 
 During the same year Enghmd exported to Latin America manufact- 
 ured merchandise to the value of $116,000,000; France, $75,000,000, 
 and the United States, $71,000,000. 
 
 In Mexico* and Central America we sold goods to the value of 
 $14,300,000, and purchased goods to the value of $25,100,000. In 
 South America we sold $20,000,000 and bought $85,000,000. In the 
 West Indies we sold $27,000,000 and bought $71,000,000. 
 
 Of our purchases in all Spanish America $97,853,000 were brought 
 in foreign vessels, and $77,370,000 in American vessels. Of our sales 
 $28,000,000 (and this statement embraces only such merchandise as is 
 carried by sea) were sent in foreign vessels, and $40,000,000 in Ameri- 
 can vessels. 
 
 ANALYSIS OF THE CARRYING TRADE. 
 
 An analysis of the carrying trade between the United States and 
 Latin America is very interesting. With Mexico, the West Indies, 
 Central America, Venezuela, and Brazil we have direct steam-shi]> com- 
 munication. 
 
 Of our exports to Mexico $5,100,000 were sent in American vessels, 
 while only $1,849,000 were sent in foreign vessels. Of our imports 
 from Mexico $6,007,000 were brought in American and $4,832,000 in 
 foreign vessels. 
 
 Of our exports to Central America $3,027,000 were sent in American 
 vessels, and $1,504,000 in foreign vessels. Of our imi)orts from Central 
 America $4,947,000 were brought in American and $2,859,000 in foreign 
 vessels. 
 
 Of our exports to the West Indies $15,049,000 were sent in American 
 and $12,219,000 in foreign vessels, and of our imports from the West 
 Indies $37,015,000 were brought in American and $34,550,000 in foreign. 
 But ten millions and a half of our imports from the British West Indies 
 came in English, while only $2,082,000 came in American vessels. • 
 
 Of our imports from Brazil $10,000,000 came in American and $43,000,- 
 000 in foreign vessels. 
 
 Of our imports from Venezuela $9,384,000 came in American ?nd only 
 $007,000 in foreign vessels, and of our exports $2,035,000 were sent in 
 American and only $402,000 in foreign vessels. 
 
 Of our entire imports from South America $28,745,000 came in Amer- 
 ican and $55,010,000 in foreign vessels, and of our shipments thithtr 
 $16,432,000 were sent in American and $13,147,000 in foreign vessels. 
 
 * The statistics of our trade wltb Mexico are very defective.
 
 2G 
 
 TRADE AND TRANSPORTATION BET WREN 
 AN INCREASE IN OUR TRADE. 
 
 There has been some increase in our commerce with Latin America 
 within the last twenty years, notwithstanding the disadvantages und- r 
 which our merchants have labored, even if it has not kept up with our 
 national development in other directions, as the following comparative 
 table for 18G8 and 1888 will show : 
 
 CJonntries. 
 
 Mexico 
 
 Central American States 
 and British Honduras — 
 
 THE WK6T INDIES. 
 
 Onba 
 
 British West Indies 
 
 Porto Rico 
 
 Hayti 
 
 San Domingo 
 
 FreDch W^est Indies 
 
 Dutch West Indies 
 
 Danish West Indies 
 
 Swedish West Indies 
 
 Total 
 
 SOUTH AMERICA. 
 
 Brazil 
 
 United States of Colombia. . 
 
 Venezuela 
 
 Argentine Republic 
 
 Pnignay 
 
 Chi.i 
 
 British Guiana 
 
 Peru 
 
 Dutch Guiana 
 
 1 tench Guiana 
 
 All other South America . .. 
 
 Total 
 
 Grand total 
 
 Exports. 
 
 1868. 
 
 Dollars. 
 6, 441, 339 
 
 646, 347 
 
 14, 675, 697 
 6, 742, 381 
 
 2, 547, 536 
 
 3, 247, 500 
 
 66, 201 
 
 913, 121 
 
 507, 832 
 
 1, 170, 996 
 
 29, 699 
 
 1888. 
 
 Dollars. 
 9, 897, 772 
 
 4, 592, 080 
 
 10, 053, 560 
 
 7,611,533 
 
 1, 909, 618 
 
 4, 617, 125 
 
 817,707 
 
 1, 603, 827 
 
 583, 593 
 
 612, 139 
 
 29, 900, 963 j 27, 869, 102 
 
 5, 695, 104 
 3, 711, 796 
 
 901, 262 
 2, 732, 600 
 
 821, 006 
 1, ,580, 999 
 1,945,568 
 1, 606, 355 
 
 465, 523 
 
 36, 986 
 
 8,264 
 
 19, 625, 763 
 56, 614, 412 
 
 7, 137, 
 
 5, 023, 
 3, 038, 
 
 6, 643, 
 
 1 , 459, 
 
 2, 433, 
 1,717, 
 
 870, 
 26(i, 
 146, 
 843, 
 
 29, 579, 227 
 
 71, 938, 181 
 
 Imports. 
 
 1868. 
 
 Dollarg. 
 1, 590, 667 
 
 1, 271, 351 
 
 49, 774, 704 
 
 2,765,116 
 
 6, 345, 639 
 
 753, 866 
 
 83, 363 
 
 218, 953 
 
 289, 5-3 
 
 573, 004 
 
 2,136 
 
 1888. 
 
 Dollars. 
 17, 329, 889 
 
 7,807,013 
 
 49, 319, 087 
 
 12, 550, 940 
 
 4,412.483 
 
 2, 918, 8i;0 
 
 1, 459. 392 
 
 116,890 
 
 388, 834 
 
 399, 220 
 
 Total imports and ex- 
 ports. 
 
 Dollars. 
 8, 632, 006 
 
 1, 917, 698 
 
 64, 450, 401 
 
 9, 507, 497 
 
 8, 893. 175 
 
 4,001,366 
 
 149, 564 
 
 1,132,074 
 
 797, 405 
 
 1, 744, OOU 
 
 31, 835 
 
 1888. 
 
 Dollars. 
 27, 227, 661 
 
 12, 399, 093 
 
 59, 372, 647 
 20,162,473 
 
 6, 382, 101 
 
 7, 535, 945 
 2, 277, 099 
 1, 720, 717 
 
 972, 427 
 1,011,359 
 
 60,806,354 71,565,666 90,707,317 
 
 23, 595, 740 
 
 2, 538, 297 
 
 2, 368, 977 
 
 4, 806, 299 
 
 1, 179, 520 
 
 951, 767 
 
 2, 364, 082 
 
 1, 765, 397 
 
 422, 581 
 
 15, 477 
 
 2.366 
 
 40, Oil, 103 
 
 103, 679, 475 
 
 53, 710, 234 
 
 4, 393, 258 
 10, 051, 250 
 
 5, 902, 159 
 2, 711, 521 
 2, 894, 520 
 2, 822, 382 
 
 309, 040 
 
 430, 983 
 
 12, 424 
 
 1, 118. 627 
 
 84, 356, 398 
 
 181, 058, 966 
 
 29,291,144 
 
 6, 250, 093 
 
 3, 330, 239 
 
 7, 538, 899 
 2, 000, 526 
 
 2, 532. 706 
 
 4, 31", 250 
 
 3, 431, 752 
 888, 104 
 
 52, 463 
 10, 630 
 
 99, 434, 708 
 
 60 847, 242 
 9,417,138 
 13, 089, 765 
 12, 545, 712 
 4, 170,853 
 6, 327, 741 
 4,539,793 
 1, 179,211 
 697, 228 
 159. 181 
 1, 961, 761
 
 THE UNITED STATF.R AND LATIN AMERICA. 27 
 
 GRKAT BKITAIN, FRANCE, AND THE UNITED STATES COMPARED. 
 
 Tbe. following? statement shows the character of tbe principal articles 
 of merchandise purchased by the people of Central and South America, 
 and the sources from which they come : 
 
 Articles. 
 
 From the 
 United States. 
 
 From Great 
 Britain. 
 
 From France. 
 
 Agricultnral implements* 
 
 Bread-stuffs 
 
 Candles 
 
 Carriages, carts, and horse-cars.. 
 Chemicals, drugs, and dves 
 
 Coal ; 
 
 Cotton goods 
 
 £artben and china ware 
 
 Fancy artices 
 
 Fish 
 
 Flax and hemp, manufactures of. 
 Gunpowder and other explosives. 
 India rubber, manufactures of... 
 
 Iron and steel 
 
 Jewelry, gold and silver 
 
 Leather goods 
 
 Live animals 
 
 Musical instruments 
 
 !MaIt liquors 
 
 Oils 
 
 Paints 
 
 Paper and stationery 
 
 Provisions and dairy products . . . 
 
 SOk goods 
 
 Soap 
 
 Spirits, distilled 
 
 Suirar refined 
 
 Tobacco manufactures of 
 
 Watches 
 
 Weai-ing apparel 
 
 Wines 
 
 Woods, manufactures of 
 
 Woolen goods 
 
 $1, 0,")5, 000 
 
 7, 363, 000 
 
 64,000 
 
 703, 000 
 
 1,417,000 
 
 793, 000 
 
 4, 548, 000 
 213, 000 
 
 337. 000 
 444, 000 
 785, 000 
 479, 000 
 
 94,000 
 
 7, 509, OUO 
 
 127, 000 
 
 1, 507, 000 
 454, 000 
 
 38, 000 
 251, 000 
 
 2, 204, UOO 
 
 62, 000 
 633, (00 
 
 5, 695, (00 
 
 35, 000 
 165, 000 
 
 84,000 
 397, 000 
 
 281. 1 00 
 6,000 
 
 93, 000 
 
 6, 720, 000 
 
 89,000 
 
 $197, 000 
 1,469,000 
 1,181,000 
 4, 005, 000 
 4«, 48.''), 000 
 1, 450, 000 
 
 6, 511, 000 
 
 456, 000 
 21, 774, 000 
 
 1, 7G>:, 000 
 730, 000 
 
 306, 000 
 
 762, 000 
 564, 000 
 252, 000 
 292, 000 
 15, 000 
 
 1,615,000 
 '9,' 995,' 656' 
 
 $32, 000 
 
 41,000 
 
 1,391,000 
 
 318, 000 
 4, 202, 000 
 
 841.000 
 3, 269. Ol>0 
 
 386, 000 
 
 125, 000 
 
 2, 349, 000 
 1, 317, 000 
 5, 168, 000 
 
 38, 000 
 
 1, 369, 000 
 
 1, 401, 000 
 
 525, 000 
 
 878, 000 
 1, 419, 000 
 
 6,000 
 
 5, 7.">8, 000 
 
 11,689,000 
 
 920, 000 
 
 7, 894, 000 
 
 Note.— The returns from Great Britain and France are for the calendar year of 1888, and from the 
 United States for the fiscal year ending June 30, 1889. 
 
 Germany exported fancy articles to the amount of $1,857 ; iron and 
 steel, $1,322,000; chemicals, drugs, and dyes, $355,000; leather goods, 
 $484,000 ; silk goods, $274,000 ; wearing apparel, $273,000, and woolen 
 goods, $1,304,000. 
 
 Spain exported breadstuffs to the amount of $1,500,000 ; cotton manu- 
 factures, $2,101,000; fancy articles, $55,000; leather goods, $2,923,000; 
 paper and stationery, $739,000 ; soaps, $885,000, and wine, $8,264,000. 
 
 THE OPINION OF AN EXPERT. 
 
 Mr. William H. T. Hughes, of New York, who is one of the best in- 
 formed as well as one of the most enterprising men engaged in the Span- 
 ish-American trade, says : 
 
 My whole scheme rests upon the fundamental facts that onr merchants and manu- 
 facturers, and especially the latter, desire to enlarge the outlet for the products of 
 their factories in the foreign markets ; that they have that desire because they are 
 already produciug in excess of the requirements of the home markets ; and, more- 
 over, that they are willing and ready to take such steps as may lead them to the at- 
 tainment of that object. Do not statistics and trade reports show that, with very
 
 28 TRADE AND TRANSPORTATION BETWEEN 
 
 rare exceptions, oar producers are eitlii^r carrying a larger stock of their goods tbaa 
 is needed to supply the domestic markets or running their establishments on short 
 lime in order to avoid a glut? Again, do we not hear from all the great industrial 
 centers of the country clear and unmistakable voiced expressive of the want of wider 
 markets in order to enable the manufacturers to employ to their fullest extent the 
 great producing forces at their command. Does not this show that they are not satis- 
 lied ? Undoubtedly, because it does not pay them to run on short time. 
 
 It may, however, he urged that these are mere general statements. So they are, 
 and I offer them as such. It is not difticult to supply evidence in support of their cor- 
 rectness. Any one wishing to ascertain the truth they contain can easily do .so by 
 devoting a little time to examination of sundry publications representing each branch 
 of trade. In a short article of this kind I can not enter into details. 
 
 Now, taking for granted that we do want that foreign trade, the next question in 
 order is, how to get it. As a practical business man, and heing unfamiliar with the 
 fine and delicate doctrines of political economy, in attempting to answer the question 
 I had necessarily to be guided by what my ob.servations and experience have taught 
 me. Whether these have enabled me to suggest such means as will preserve me from 
 the danger of running against snags, of course I can not say. I hope, however, that 
 there will be ample time for counsel and advice when the snag does appear, ami 
 even for compromise among the commanders of our fleet, such as may enable us 
 safely to navigate and avoid the peril of nliipwreck. I therefore had no hesitation in 
 stating such means as I considered most conducive to the attainment of the object in 
 view. 
 They were plainly and simply the following : 
 
 First. To admit free the raw material needed by our manufacturers produced in 
 countries .south of us that are willing to admit our products and manufactures free 
 in return ; or, in other words, to make a fair trade with any country that is will- 
 ing to give us a fair trade in return. 
 Second. To establish frequent, regular, and cheap steam communication. 
 Third. To establish banking facilities. 
 
 Now, as to steam communication, it is a saying as trite as it is true that commerce 
 always follows the flag. Now, then, if we want foreign trade we must have steamers 
 flying our colors, and they must be as good as those of our European competitors. 
 Can we have them without Government aid — in plain terms, without subsidies? 
 Everybody familiar with the subject knows that we can not compete with the Euro- 
 peans, not a.s it is commonly supposed, because it costs us more to build the ships or 
 to run them. No ; that is not the main difficulty. The true, real difficulty lies in that 
 the European lines are subsidized. 
 
 I do not know whether this is protection or free trade. I simply know that it is 
 the fact, and I am to-day running American steamships in competition with a line 
 subsidized by the Spanish Government, and unless our steamship lines are placed on 
 the same footing competition is out of the question. Why can not our Government 
 adopt the same policy pursued by the English, the French, and the Germans, and 
 subsidize such steamers as may be built in conformity with the requirements neces- 
 sary to turn them into commerce destroyers in case of emergency? Would not this 
 be a more economical policy than the building and maintaining of a large fleet of 
 special cruisers? 
 
 In regard to banking .facilities, I can now say that since presenting my plan to the 
 Business Men's Republican Association I have been informed by gentlemen fully 
 competent and able to carry out the project that if the required steam-ship lines are 
 established they would, without any Government guaranty, take charge of founding 
 such banking institutions as may be needed, thus doing away with the necessity of 
 Government support.
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 29 
 
 IV. 
 
 THE COMMEPyCE OF MEXICO. 
 
 The statistics of our trade with Mexico are very defective, and repre- 
 stutonly the amount carried on by water. There is a large amount of 
 merchandise shipped annually across the border by the several railroads 
 which can not be included because there is no law authorizing the col- 
 lection of statistics concerning transportation in cars. 
 
 But the total annual commerce of the country amounts to about sev- 
 enty million dollars, of which forty millions are exports and thirty 
 millions are imports. The United States is the largest purchaser of 
 Mexican products and the largest contributor to her imports, az the 
 following statement of the trade of 1888 will show : — 
 
 EXPORTS FROM MEXICO. 
 
 Articles. 
 
 Chemicals, drugs, and dyes 
 
 CoflV^e ■ 
 
 Copper <iro ■ 
 
 Flax. hemp, jute, and other vegetable sub- 
 
 To the 
 United 
 
 States, 
 1888. 
 
 sta 
 
 Hides and skins 
 
 Honej' 
 
 Silvciore 
 
 Sugar 
 
 Tobacco, and maunfactures of: 
 
 Leaf 
 
 Maunlactureaof 
 
 Wood, aud manufactures of ... . 
 
 A 11 other articles 
 
 Total. 
 
 .$1,268,554 
 
 2, 111, i;w 
 
 10, 929 
 
 5, 239, 432 
 1. 562, 008 
 
 (a) 
 4, 803, 667 
 
 14, 653 
 
 7,278 
 
 13, 029 
 
 .539, 007 
 
 1, 760, 202 
 
 17, 329, 889 
 
 To Great 
 Britain, 
 
 1887. 
 
 $418, 036 
 1,796 
 
 277, 751 
 
 251, 180 
 99, 559 
 
 275, 965 
 812,812 
 169, 734 
 
 2, 306, 833 
 
 To France, To Ger- 
 1887. many, 1886. 
 
 $90, 418 
 329, 626 
 
 $4, 284 
 17, 012 
 
 176, 276 
 
 55,948 
 
 37, 474 
 
 81, 488 
 
 676, 871 
 
 91, 962 
 
 12 014 
 
 8,806 
 
 61, 471, 554 
 
 476 
 
 1,190 
 
 262, 752 
 
 9,044 
 
 1, 540, 063 cl, 788, 332 
 
 To 
 Spain 
 
 1888. 
 
 $24,256 
 18, 602 
 
 23, 144 
 57, 14C 
 
 17,404 
 
 140, 552 
 
 The exports of Mexico are limited because of the scarcity of labor 
 and capital to develop her natural resources. The productive capacity 
 of that republic is unmeasured. If the same energy-, industry, and 
 skill that has developed Kansas, Nebraska, Dakota, and other parts of 
 our great West were directed to the sugar and coftee lands of Mexico, 
 they would produce enough to supply the whole world. But now Mex- 
 ico imports refined sugar, and ships only about $2,500,0U0 worth of 
 coffee a year. 
 
 The Government is making efibrts to secure immigration, in order 
 that its lauds may be tilled. A bounty of $25 per capita is paid to
 
 30 
 
 TfiADl-: AND TRANSPORTATION KETWEEX 
 
 steamship lines that briug iiiimigrauts, and reeently a contract has 
 be»n concludecl with an l!>nglish company to run steamships between 
 the Pacific ports and the Chinese Emi)ire, for the i)urpose of transport- 
 ing coolies to be employed on the plantations. A treaty has been con- 
 cluded with the Chinese Government under which the immigrants are 
 guaranteed protection. 
 
 THE IMPORTS OF MEXICO. 
 
 The imports of Mexico come mostly from the United States. The 
 reports of the Bureau of Statistics for the year 1888 show a total of 
 $9,242,188, but this should be increased by at least six million dollars 
 in order to cover shipments by railway, which would bring the total 
 value of merchandise purchased in the United States up to fifteen 
 or sixteen millions of dollars. 
 
 The articles shipped to Mexico are of an almost infinite variety and 
 embrace examples of nearly every product of our mechanical industries, 
 with a considerable amount of breadstuffs, provisions, and raw cotton. 
 The following tabular statement giving the amounts of merchandise im- 
 ported by steamer from the United States in 1888, compared with the 
 imports from Great Britain in 1887, and from France, Germany, and 
 Spain in 1866, will show the character of the trade : 
 
 Articles. 
 
 Agricnltural implements 
 
 Auimals 
 
 Breadstuflfs 
 
 Candles 
 
 Chemicals, drugs, dyes, and medicines. 
 Coal. 
 
 Colton, manufacturers of 
 
 Earthen, china, and glass ware 
 
 Fancy articles 
 
 Fish 
 
 Flax, hemp, and juto, manufactures of. . . 
 
 Gunpowder and other explosives 
 
 India rubber and gutta-percha, manufac- 
 
 tures of 
 
 Instruments and apparatus for scientific 
 
 purpo.'ies 
 
 Iron and steel, and manufactures of. — 
 Jewelry, and manufactures of gold and 
 
 and silver 
 
 Leather, and manufactures of 
 
 Malt liquors 
 
 Musical iustniments 
 
 Oils: 
 
 Mineral, refined 
 
 All other 
 
 Papei and stationery 
 
 Provisions, comprising meat and dairy 
 
 producta 
 
 Quicksilver 
 
 Silk, manufactures of 
 
 Spirits, distilled , 
 
 Sugar, refined 
 
 'Jobacco, leaf 
 
 Watche.s 
 
 Wearing apparel 
 
 Wine 
 
 W^ood, and manufactures of 
 
 Wool, manufactures of 
 
 All other articles 
 
 Total. 
 
 From the 
 United 
 States. 
 
 $2.i, 365 
 
 427, 296 
 
 345, 048 
 
 21,544 
 
 264, 987 
 
 149, 635 
 
 1, 036, 462 
 
 87, 478 
 
 32, 576 
 
 33,918 
 
 50, 179 
 
 264, 875 
 
 41,413 
 
 67, 970 
 
 1, 94«i, 948 
 
 85, 144 
 144, 774 
 23, 945 
 
 175, 537 
 ]')7, 7.'">6 
 123, 226 
 
 390, 425 
 
 256. 357 
 
 2,658 
 
 10,648 
 
 58, 123 
 
 92, 581 
 
 4,887 
 
 (a) 
 
 32, 2.55 
 
 1,280,126 
 
 39,543 
 
 1, 569, 509 
 
 9, 242. 188 
 
 From the 
 
 United 
 Kingdom. 
 
 $128, 588 
 
 105, 905 
 
 2. 574, 802 
 
 133, 410 
 
 1, 050, 804 
 
 17, 232 
 
 32, 391 
 
 577,615 
 327, 350 
 
 5. 385. 313 
 
 From 
 France . 
 
 $17, 137 
 225, 677 
 318, 067 
 
 106, 250 
 422, 241 
 
 149, 382 
 
 316, 990 
 359,918 
 
 From 
 Germany. 
 
 $160, 650 
 
 185, 402 
 
 17, 850 
 
 138,754 
 
 31,416 
 
 4,284 
 
 41,888 
 57, 596 
 
 53,788 
 
 229, 040 
 
 64 
 62, 607 
 93, 082 
 
 5, 589 
 430, 091 
 473, 040 
 
 758, 426 
 489, 649 
 
 4, 457. 25U 
 
 714 
 6,188 
 
 16,660 
 
 17, 136 
 
 6,188 
 159, 222 
 62, 594 
 
 b960, 330 
 
 From 
 Spain. 
 
 $47, 284 
 
 21, 822 
 
 79, 506 
 
 a268, 501 
 
 91,843 
 41,814 
 
 63, 953 
 
 317, 024 
 
 112,003 
 1,043,810
 
 THE UNITED STATES AND J.ATIN AMERICA. 31 
 
 THE COTTON TRADE. 
 
 Mexico nmimiactures a good deal of cotton and imports over two 
 million dollars' worth of the raw material from the United States an- 
 nnally. There are large mills at Qiieretaro, that historic city where 
 Maximillian was captured and shot, and most of the raw cotton reaches 
 them from Texas by way of the Mexican Central and Mexican National 
 liailroads. 
 
 But our trade in cottons might be very much increased if the manu- 
 facturers of the United States would study the peculiar demands of the 
 market, and comply with them. The Mexican people want a cheaper 
 grade of drillings, sheetings, denims, and other fabrics than are called 
 for in our domestic markets, and purchase them in England because 
 they can not be bought in the United States. If our manufacturers 
 desire this trade they must send competent men to Mexico to make a 
 careful study of the whims and the peculiarities of the people. The 
 disposition of the French and Germans is to gratify the local taste, 
 while the manufacturers of the United States attempt to force ui)0u the 
 market goods that are popular at home, but are not suited to foreign 
 buyers. 
 
 Another reason why our trade is not larger is that the commission men 
 are not careful in filling orders. They will send what they happen to 
 have in stock, while the Mexican importer wants only what he calls for; 
 and as a usual thing goods sent from this country are indifferently 
 packed. Nearly all the interior transportation of Mexico is done by 
 men or mules, and packages have to -be arranged in bulk and weight so 
 as to meet this requirement. Another important consideration is thai 
 custom duties are levied upon the gross weight of the package, and the 
 importers do not care to pay duty upon a lot of heavy pine boards and 
 nails, and the waste that is often put in to fill up. All European goods 
 come into the country packed so as to economize weight, and in a form 
 that make them convenient for loading upon the backs of mules or car- 
 gadores, as well as lessens the duty. 
 
 THE CUSTOMS REGULATIONS. 
 
 But the chief obstacle in the way of an increased trade with Mexico 
 is the annoying and oppressive regulations imposed at the custom- 
 houses, particularly on the Eio Grande, which are intended to prevent 
 smuggling, but practically prohibit trade, as the fines imposed for their 
 unintentional violation eat up the profits on the sales. 
 
 The attention of the Mexican Government has been repeatedly called 
 to these complaints, and promises have been made of a reformation, but 
 very little improvement is noticed. President Diaz, Minister Eomero, 
 and other of&cials recognize the embarrassment to trade in this partic- 
 ular, but insist that stringent regulations are necessary to prevent 
 smuggling.
 
 32 TRADE AND TRANSPORTATION BETWEEN 
 
 Mauy people believe that the day will come wheu there will be no 
 custom-houses on the Kio Grande, wheu our trade with Mexico will be 
 as free as betweeu the States of the Union. The United States can well 
 afford to enter into a convention on this basis, and the commercial treaty 
 between the two countries— which, unfortunately, has not been carried 
 into effect because of the failure of our Oougress to enact the necessary 
 legislation — was a step in that direction. 
 
 As far as revenue is concerned, the loss to the United States would 
 be a mere trifle, the total amount of duties collected on goods imported 
 from IMexico being only about $500,000 annually. But with Mexico 
 the loss of revenue would be a more serious consideration. 
 
 If cotton goods were admitted into Mexico free of duty the revenues 
 of the Government would be curtailed to such an amount as to make 
 such a concession impossible, as the duty on them alone varies from 
 120 to ISO per cent., and the amount collected reaches from $12,000,000 
 to $15,000,000 a year; and the cotton mills of Mexico need the protec- 
 tion of this duty to exist. 
 
 MEXICAN SUGAR AND COFFEE. 
 
 But Mexico could afford to surrender the customs receipts on other 
 articles imported from the United States as a consideration for the 
 consumption of her sugar and coffee in this country. As every one 
 familiar with the subject knows, the Mexican coffee is superior to that 
 produced in Brazil, her sugar is as good as that of the West Indies, 
 and her capacity for the production of these articles is iiractically un- 
 limited. It would be many years, however, before her planters could 
 sui)ply more than a small portion of the sugar and coffee required by 
 this country. We consume about 3,000,000,000 pounds of sugar, while 
 Mexico does not now produce much more than enough to supply her 
 home demand. 
 
 To introduce Mexican sugar free into this country, in exchange for a 
 removal of her duties upon our manufactured merchandise (except cot- 
 tons), would stimulate the planters of that Republic, as it would stimu- 
 late the mechanical industries of this. It would increase our Hour 
 market in a decided degree, by placing wheat flour within the reach of 
 the common people of Mexico who are now prohibited from purchasing 
 it because of the excessive duty, and would extend the sale of nearly 
 every article we produce for exi)ort. 
 
 The JMexicau Government and the peoi)le will do anything in their 
 l)Ower to encourage the adoption of a common silver coin for circulation 
 through the several American nations. The Mexican dollar is found in 
 great quantities throughout both continents south of us, and at mauy 
 places is accepted as a standard of value,
 
 THK UNITED STATES AND DATIX AMEmCA. 
 
 3i5 
 
 V. 
 
 THE COMMERCE OF CENTRAL AMERICA. 
 
 The foreign commerce of the five Central American Republics varies 
 from thirty-six to forty millions a year, the exports beings twenty-one or 
 twenty-two millions, and the imports from fifteen to eighteen millions, 
 distributed as follows : 
 
 Countries. 
 
 Imports. 
 
 Exports. 
 
 Total. 
 
 Guatemala 
 
 Honduras 
 
 S.an Salvador 
 
 ^NicaTa-ina 
 
 Costa Kica 
 
 British Honduras 
 
 Total 
 
 $3, eoo, 000 
 
 1,500.000 
 3, 750, 000 
 
 2, 800, 000 
 
 3. 500, 000 
 1, 250, 000 
 
 16, 400, 000 
 
 $6, 750, 000 
 
 1, 600, 000 
 6, 000, 000 
 
 2, 800, 000 
 3,500,000 
 1, 250, 000 
 
 21, 900, 000 
 
 $10, 350. 000 
 
 8, IdO, 000 
 
 9, 750, 000 
 5, 600, 000 
 7, OUO, 000 
 2, 500, 000 
 
 38, 300, 000 
 
 The exports of the Central American States consist of coffeCj reach- 
 ing a value of eleven or twelve million dollars annually (more than half 
 the entire quantity), cocoa, sugar, hides, mahogany and other fine 
 woods, chemicals, drugs and dye-woods, silver bullion, rubber, and a 
 variety of other products of the soil and forest. In 1888 the exports 
 from Central America to the United States were valued at $7,023,338; 
 to Great Britain, $6,520,833, and to France, $2,127,054. 
 
 The imports of the Central American countries are sent chiefly from 
 the United States, with the exception of cotton goods in which Eng- 
 land enjoysalniost a monopoly for the same reasons mentioned in the pre- 
 ceding chapter as existing in Mexico. The cotton manufacturers in the 
 United States will not furnish the merchants engaged in trade with 
 Central and South America the sorts of goods that are demanded by 
 that market. Their fabrics are too good, are not cut in proper lengths, 
 and are not economically packed. 
 
 S. Ex. 54 3
 
 34 
 
 TRADE AND TRANSPORTATION BETWEEN 
 THE GREAT VAREETY OF mPORTS. 
 
 The great variety of articles entering into the Central American 
 trade is shown by the following table, in which the trade of the United 
 States and Great Britain in 1888 is compared : 
 
 Articles. 
 
 Froni 
 
 the United 
 
 States. 
 
 From Great 
 Britain. 
 
 Breaiistaffs .~.. 
 
 Candles ^ 
 
 Cotton, manufactures of , 
 
 Chomicals, drugs, dyes, and medicines.. 
 
 Earthen, china, and ghissware 
 
 Fancy articles 
 
 Flax, hemp, and jnte, manufactures of 
 Fish 
 
 Fruits 
 
 Gunpowder and other explosives. 
 
 Iron and steel, and manufactures of 
 
 Jewelry, and manufactures of gold and silver... 
 
 Leather, and manufactures of 
 
 Oils, vegetable 
 
 Pa]>er and stationery 
 
 Provisions, comprising meat and dairy producta. 
 
 Silk, manufactures of 
 
 Soap. 
 
 Spirits, distilled 
 
 Sugar, refined 
 
 "Wearing apparel 
 
 Wine 
 
 "Wood, and manufactures of , 
 
 "Wool, manufactures of 
 
 All other articles ..^... 
 
 Total. 
 
 $821, 318 
 
 14,061 
 
 446,800 
 
 217, 135 
 
 33.114 
 
 40, '287 
 
 45, 131 
 15, 570 
 21, 324 
 
 leo, 748 
 
 879, 020 
 
 8,416 
 
 59, 829 
 
 9,414 
 
 54, 611 
 
 265, 873 
 
 3,107 
 
 19, 865 
 
 29, 758 
 
 39, 4.')1 
 
 (6) 
 
 46, 670 
 205, 160 
 
 18, 035 
 733, 977 
 
 4, 131, 574 
 
 $28, 707 
 
 3, 103, 2«5 
 
 35,311 
 
 17, 826 
 
 131, 517 
 
 676, 906 
 "24 391 
 
 37. 112 
 14,594 
 
 106, 270 
 
 204, 203 
 328, 280 
 
 4, 708, 402 
 
 EECIPROOITY TREATIES. 
 
 Each of the Central American countries would willingly enter into 
 reciprocity treaties with the United States similar to that negotiated 
 several years ago with Mexico, provided there would be any assurance 
 of the ratification of such treaties by our Congress. They would con- 
 sent to the free admission into their ports of our peculiar products, such 
 as breadstuflfs, provisions, lumber, furniture, and refined petroleum, 
 provided we removed the duties of the sugar we import from them. 
 The difference in distance, the high rates of freight, and the cost of 
 labor make it impossible for the planters of Central America to com- 
 pete with those of Cuba, Trinidad, and the Guiana colonies, where 
 slaves and coolies are employed, and such a trade would be regarded 
 as a welcome stimulant to other depressed agricultural industries. 
 
 PROPOSED TREATY WITH GUATEMALA. 
 
 As is the case in nearly every other Spanish-American country, the 
 exorbitant duties charged upon flour and other necessaries of life render 
 their consumption impossible by the great masses of the people, and 
 ordinary white bread is as great a luxury among them as cake or wine. 
 J)uring the recent visit of the South American Commission to Guate-
 
 THE UXITEI) STATES AND LATIN AMERICA. 35 
 
 mala they held a conference with the Government there, represented by 
 the late President Barrios, Mr. Fernando Cruz, his secretary of state, 
 and Mr. Sanchez, minister of finance, who consented to enter into a 
 treaty under which Guatemala would admit free of duty mineral coal, 
 raw cotton, refined petroleum, wooden furniture, flour, agricultural im- 
 plements, cured and preserved meats, fruits and vegetables, dressed 
 lumber, woolen goods of all kinds, hardware of all kinds, lime for build- 
 ing purposes, tiles made of clay, salt, live stock of every kind, material 
 for coflee-sacks, provisions, lard, and such other articles as enter into 
 the domestic economy, provided sugar and tobacco from Guatemala were 
 admitted free into the United States. 
 
 These products are not produced in Guatemala or any of the other 
 States of Central America to any very considerable extent, and refined 
 sugar is now imported into Guatemala from the United States, little or 
 none being manufactured there. Were a market opened in this coun- 
 try for the sugar of Central America there would be in a few years an 
 immense development of the sugar interest on that continent. The 
 cane grows vigorously, and produces a very large percentage of sac- 
 charine matter, it being much more profitable than other products of 
 the five little republics. Before any great amount of it can be raised 
 for export, however, it would be necessary to import capital and labor, 
 because both are scarce. 
 
 Whether the tobacco interest would be likely to augment in the same 
 proportion is a question, and it is doubtful whether the product would 
 ever come in competition with that of Havana. 
 
 ENORMOUS FREIGHT CHARGES. 
 
 What is said of Guatemala will apply to every other one of the Cen- 
 tral American States. The greatest obtacles in the way of an increased 
 trade with Central America are the enormous freight charges, which 
 make the cost of everything imported very high, especially when the 
 duty, which is usually from 50 to 300 per cent., is added. But there are 
 no discriminations. No matter where the goods come from they are 
 taxed alike, and the merchants of the United States have no greater 
 advantage than those of Europe. 
 
 The lack of knowledge on the part of our merchants and manufact- 
 urers of the wants of the market, and their disinclination to comply 
 with them, stands in marked contrast with the assiduity with which 
 European merchants and manufacturers cultivate trade, and endeavor 
 to cater to the tastes and wants of the people, and also the favorable 
 terms which they are willing to give purchasers. The indillerence of 
 the merchants of the United States in packing goods for shipment is 
 also a great cause for complaint, and their carelessness is a constant 
 and serious source of injury and loss to the importer, and one of which 
 their European rivals are not guilty.
 
 36 TRADE AND TRANSPORTATION BETWEEN 
 
 THE OPINION OF AN EXPERT. 
 
 Mr. J. M. Munoz, of New York, who has been engaged in trade with 
 Central America for the last twenty-eight years, makes a very valuable 
 contribution to the information gained from other sources regarding our 
 trade with that continent, and says : 
 
 The exports from the United States to all the Central American oountriee consist 
 of natural products, such as lumber, flour, corn meal, hog and dairy products, canned 
 meats, fruits and vegetables, refined petroleum, rosin, pitch, tar, and tuipeutine, and 
 manufactured tobacco. There are also imported, in greater or less quantities, manu- 
 factured goods, such as sewing-machines, silver-plated ware, glassware and crockery, 
 watches and inferior jewelry, paints, oils, agricultural implements, tools of all kinds, 
 drugs, gunpowder, trunks, paper, mining machinery, carriages, carts and harness, 
 furniture, rubber goods, barbed wire, general hardware, boots and shoes, cotton 
 prints and white goods, leather goods, railway cars and locomotives, river boats, no- 
 tions, etc. 
 
 The manufactured goods and implements are generally made in the eastern sea-board 
 States — Massachusetts, Connecticut, New York, Pennsylvania, New Jersey, and Dela- 
 ware ; and Maryland, Virginia, and Kentucky furnish the tobacco. Within the last 
 few years some of the Western States, such as Ohio, Missouri, and Illinois have begun 
 to reach out for the export trade in such articles as furniture, carriages, agricultural 
 and other implements, hardware, canned goods, and meats. 
 
 WHY OUR COMMERCE IS 80 SMALL. 
 
 There has been a marked increase in our commerce with the Central American 
 States within the last twenty years, due principally to the increase of population 
 and the progress in material development of those countries. Within that period, 
 nevertheless, many lines of merchandise have fallen off in exports, principally manu- 
 facti:red articles, such as agricultural implements, tools, hardware, furniture, shoes, 
 cotton fabrics, paper, etc. This falling off can be clearly traced to the cheaper cost 
 of the European manufacturers of the same class competing in the same markets. 
 It is ondoubtedly true that the American products as a rule are superior in material, 
 workmanship, and finish, but these very qualities which make their superiority over 
 their European rivals increase their cost and value. 
 
 The general fact stau«ls out that the American goods, as a rule, are manufactured 
 for use principally in this country, where the consumer is richer, more appreciative 
 and exacting as to intrinsic value, fine finish, and material, and are made under con- 
 ditions that enable the manufacturers to disregard foreign competition in catering to 
 the taste and appreciation in those qualities by his principal cousumers. But when 
 these really superior articles and manufactures are otfered in the Sx»auish American 
 markets, where the consumers as a rule are poor, unappreciative of their intrinsic 
 superiority, and whose only desire and study is to fill their wants .at the most mod- 
 erate cost, the competition off'ered by the same articles of English, French, and 
 German make becomes irresistible, and the American article finds but a limited con- 
 sumption. The European manufacturer, in his constant struggles with liis competi- 
 tors for the supply of consuming markets, has reduced cheapness in materi.al and 
 make to a science, which enables him to take and hold the lion's share of the trade. It 
 is true that American genius and mechanical ingenuity overcomes in great part the 
 cheaper labor and materials of the European conipetitor, but up to now the conditions 
 at home are not calculated, in my opinion, to realize the aspirations to compete suc- 
 cessfully in foreign markets. 
 
 In connection with this eabject of the increase in our commerce with the Central
 
 THE tlNITED STATER AND LATIN AMERICA. 37 
 
 Aiiierican States, I may menticii the <rijitifyiiif; fact that Costa Rica has so much in- 
 creased lier tra<h) with this country that the secretary of the treasury and com- 
 merce in his recently issued report to Congress for last year calls attention to this 
 remariiahle increase in these words: 
 
 "I have already in previous report pointed out that the commerce of importation 
 with the United States of North America was increasing from year to year. In 1888 
 it has exceeded the business done with England in more than $100,000, and the ad- 
 vantages which that market offer to our country, once direct communication is 
 established from Port Limon to the interior (alluding to the completion of the rail- 
 road now being built), it will cause a yearly increase in our relations with the great 
 Kepublic." 
 
 HOW OUR IMPORTS ARE PAID FOR. 
 
 During the last six or eight years the exports to Central and Spanish America have 
 been paid for principally in produce imported from those countries. Fifteen or 
 twenty years ago the method was different. Then our importations from those coun- 
 tries were comparatively limited, and payment for our exports were effected indrafts 
 or credits on London. At that time drafts on the United States were so difficult of 
 sale that commission merchants in this country were compelled to provide credits on 
 London houses to their clients to pay for the prodrce shipped to this country and the 
 balance of trade against us. Now the greater part of these covering operations are 
 made in drafts on this country, and it is even becoming of frequent occuri-ence that 
 drafts on the United States are sent by merchants direct from Central America to 
 European houses in London, France, and Germany to pay for goods in)ported from 
 those countries. Europe undoubtedly gets the benefit of the large balances against 
 us in our trade with Spanish American States, as she is by far the heaviest customer 
 in supplying their needs as in consuming their products. 
 
 TRANSPORTATION FACILITIES. 
 
 The transportation between the United States and the countries mentioned is 
 furnished both by steam and sail. By steam are carried the more valuable merchan- 
 dise; by sail, the cheapest, such as kerosene, lumber, pitch, tar, ice, etc. I should 
 say the proportion carried in American vessels from this country exceeds that carried 
 in foreign bottoms. There are but few "tramps" in the trade, the bulk of it being 
 carried by regular lines, English and American. 
 
 The subsidized foreign lines of steamers to ports of Central America, Venezuela, 
 Colombia, Ecuador, etc., are the English Royal Mail Steamship Company, the Pacific 
 Steam Navigation Company, the French Compagnie General Transatlantic, the German 
 Hamburg American, and the Spanish Compania Transatlantica. I have not the data at 
 hand to be precise in the amoxints of the subsidies, but they are very heavy, as you are 
 doubtless aware. There are also other English lines, such as the Atlas Company, 
 that receive subsidies for carrying the mails from some of the British colonies, notably 
 Jamaica. The heavy subsidies to these lines enable them to carry the nu'nhandise 
 and produce to and from those States and Europe at a much cheaper rate in propor- 
 tion to distances than the American lines can do it for, to and from our ports. 
 
 DIFFERENCE IN FREIGHT RATES. 
 
 The difference in the rates of freight are about as follows : The Royal Mail Com- 
 pany, the French or German coni]>anie8, will give through bills of lading for coffee or 
 produce from any of the Pacific ports of Central America, in connection with the 
 American Pacific Mail, Central America liiies to Panama, and the Panama Railroad 
 over the Isthmus, say a total distance from the shipping to the landing ports of be- 
 tween 6,900 to 7,100 miles of navigation, for the freight rate of £4 10s. to £r> per ton 
 
 .'i'?^(i9':
 
 .'')8 TRADE AND TRANSPORTATION BETWEEN 
 
 weight, sivy from $21.80 to $24.25 of our money. But when it comes to shipping the 
 same article to New York, a distance from port to port of only about 3,000 or 8,500 
 miles, with the .same transfers to Aspinwall by the same carriers, and thence by the 
 Pacific Mail steamers to Now York, the rates of freight charged on the same produce 
 are an average of one cent to one and a quarter cents per hundred, or at the rate of 
 $22 40 to $2S per ton weight. About the same proi)ortions in the rates of freight ex- 
 ist on merchandise shipjjed from the European ports to the Pacitic Central American 
 ports, and rates on merchandise from New York to the same Central American ports. 
 
 CUSTOMS DUTIES IN CENTRAX AMERICA. 
 
 The tariff on American staples in the different Central and Spanish American 
 countries varies from 50 per cent, to 80 per cent, ad valorem, and the duties collected 
 on imports constitute the principal source of revenue in all of them. Outside of the 
 sugar-growing countries it is more than doubtful if the removal by the United States 
 of the duties on sugar, of which they barely produce enough for their local consump- 
 tion, wouM be to them of any practical benefit whatever, financially or commercially. 
 As the principal staple products of those republics, such aa coflFee, cocoa, hides, skins, 
 indigo, India rubber, etc., are duty free here, and uo amount of reduction in the duties 
 npou sugar here would bo of any advantage in stimulating the production of the 
 article in those countries in any very sensible degree, owing to adverse labor con- 
 ditions, I am fully convinced that those governments would consider it neither 
 profitable nor desirable to enter into reciprocity treaties with the United States that 
 would result in depriving them of an imi)ortant portion of their revenues without 
 any e(iuivalent advantage. Apart from these considerations, I am led to believe 
 that the several Spanish-American States have treaties with Euroiioau j)(>wers con- 
 taining the favored-nation clause, which would render it difficult to make any dis- 
 crimination in favor of the United States products. 
 
 COINAGE KND CURRENCY. 
 
 I am not jireparod to give any definite opinion as to the practicability of the adop 
 tiou of a common silver coin, to be a legal tender between the United States and 
 Spanish-American countries. 
 
 It is impossible for me to say what amount of paper money has been issued in those 
 countries during the last ten years. With the exception of Colombia and Costa Rica, 
 not much, if any, has been issued. I believe as a rule the interior indebtedness of 
 those countries have taken the shape of debentures or obligations bearing interest, 
 not that of treasury notes, like our greenbacks. In Colombia cousiderablo issue of 
 inodocmable i)aper money, and of a depreciated silver coin of 500 fineness, has been 
 resorted to by tho Government to cover its necessities. The rtssult in that (jountry has 
 been a heavy rise in the i)remium of exchange and of gold and silver, amounting from 
 11)0 to 225 })er cent. Besides the paper and spurious silver currencies, that country 
 has been further flooded by heavy issues of nickel small coins, all of which has been 
 working very serious evils upon the foreign commerce of tho country. Costa Rica 
 has also, within the last three or four years, entered upon the road of paper-money 
 issues, through one of its banks, but in neither case could I say what amount has 
 been issued. 
 
 In the Central American, Ecuadorian, and Colombian ports, the custom-house reg- 
 nlati(ms and methods of appraisement although exacting, are not usually embarrass- 
 ing nor unjust to the merchants. Not so with llie regulations, fines, and penalties, 
 of tho Venezuelan customs which are, many of thorn, arbitrary and unjust, highly 
 ond)arraHsing and confusing to merchants and shippers. It would undoubtedly be 
 to the advantage and relief of the exporters of the United States if some of the most 
 unjust and objectionable should be modified and simplified.
 
 THE UNTTKD STATES AND LATTTST AMERICA. 
 SUBSIDIES PAID BY CENTRAL AMERICA. 
 
 89 
 
 All of tbe Central American countries are under contract to pay the 
 Pacific Mail Steam-ship Company of the United States the following 
 amounts respectively for carrying the mails between their ports : 
 
 Coon tries. 
 
 Coata Kica 
 Nicaragua . 
 Honduras . 
 Salvador .. 
 Guatemala 
 
 Per year. 
 
 $12,000 
 
 6,000 
 
 5,000 
 
 24, 000 
 
 24,000
 
 40 TRADE AND TRANSPORTATION BETWEEN 
 
 VI. 
 
 THE COMMERCE OF COLOMBIA. 
 
 The normal commerce of the Eepublic of Colombia is about thirty 
 millions of dollars, and the exports and imports are usually about equal. 
 But since work was commenced upon the Pauam a Canal there has been 
 an enormous increase in the value of merchandise shipped both from 
 Europe and the United States to the port of Aspinwall. This trade, 
 however, is but temporary, and the statistical reports for the current 
 year will show a large falling off. 
 
 The exports from Colombia, which vary annually from thirteen to 
 sixteen millions, consist chiefly of coffee, cocoa, hides, fruits, and nuts, 
 rubber and chemicals, drugs and dyes. Most of the cocoa goes to the 
 chocolate manufacturers of France, and the same country takes two- 
 thirds of the coffee crop, the total exports to that country reaching 
 nearly live million. We buy nearly two million dollars worth of Colom- 
 bia's coffee, and take most of her hides and skins, the total of our im- 
 ports reaching $4,300,000. 
 
 The exports to England from that country are comparatively small, 
 averaging only about $1,500,000 annually, but the imports of Colombia 
 from England in 1888 reached $5,673,000, and consisted, as is the case 
 with Venezuela and other South American countries, chiefly of cotton 
 goods ($3,100,992) whi^h the manulacturers of the United States might 
 sell there if they would study the markets and comply with the tastes of 
 tlu^, people. I'^rance sends a large quantity of wearing ai)parel, boots 
 an<l shoes, wines, woolen I'abrcs, and fancy articles ; her exports in 1SS8 
 were nu)re than seven millions, but there will be a serious falling otF 
 now that work npon the Panaina Cainil has been suspended. 
 
 THE IVIERCHANDISE SHIPPED TO COLOMBIA. 
 
 A very large variety of articles is shi])ped to Colombia from the United 
 States. The people get all their breadstufls and j)rovisions here ; we 
 surpass both England, France, and Germany in our exports of iron 
 and st(M'l, and sell a large (piantity of furniture, for the woods of 
 that country l)eing hard and heavy are not adapted eitlier to household 
 articles or to building ])urposes. We can supply nearly every article
 
 THE UNITED STATES AND LATIN AJIERICA. 41 
 
 iKHilcd in (Joloinbiii at prices quite as low ami in quality equal, if not 
 sui)eri()r, to those imported from England, and the extension of our trade 
 in that direction rests almost solely upon the enterprise of our mer- 
 chants and the extension of our transportation facilities. 
 
 There is not an article that we import from Colombia taxed in our cus- 
 tom-houses. Some sugar is produced in the country, but not for export, 
 and we have little to offer in exchange for a removal of duties upon the 
 articles she imports from us. The financial condition of the country 
 also is such that the Government could ill afford to deprive itself of 
 any sources of revenue. The prices of all articles are high, and the 
 Government is compelled to tax the necessaries of life as well as the 
 luxuries to sustain itself. 
 
 WHERE OUR EXPORTS COME FROM. 
 
 The commodities taken by Colombia are so varied that all sections of 
 our country contribute more or less to supply them. The provisions 
 and breadstuff's we shii) there come from Illinois, Indiana, Iowa, Mis- 
 souri, Kansas, and Minnesota; much of the lumber from the Southern 
 States; the furniture from New York and Michigan; the leather goods 
 from New England; the machinery from Pennsylvania and Delaware; 
 the tobacco from the Southern States ; the iron and steel from Penn- 
 sylvania, Ohio, and Illinois, and the cotton goods from Massachusetts. 
 
 The trade with Colombia is done through commission merchants at 
 New York with credit on Europe, principally on London, as few of the 
 merchants of this country have branch houses in that country. 
 
 THE MEANS OF TRANSPORTATION. 
 
 The principal means of transportation between New York and the 
 ports of Colombia are furnished by the Pacific Mail Steam-ship Com- 
 pany, which goes direct to Asj)inwall, and the Atlas Steam-ship Com- 
 ])any, which sends steamers from New York to all of the Colombian 
 ports by way of Jamaica. 
 
 The former is an American and the latter an English Company. 
 There is also a steamer running between New Orleans and Colombia, 
 and sailing vessels are occasionally sent under special charter with as- 
 sorted cargoes. Of the imports from Colombia last year, $1,675,000 
 was sent in American ships, and $2,717 in foreign ships. Of our ex- 
 ports to that country $3,813,000 were sent in American vessels, and 
 $1,210,000 in foreign vessels. 
 
 This is the case everywhere. The raw materials of the South Ameri- 
 can countries are brought to the United States In foreign shii)s which 
 seldom carry cargoes back, and if we send any merchandise at all we 
 must depend upon our own vessels to carry it. The English shipmasters 
 «lo everything in their power to encourage the trade of their own mer- 
 chants. There is one line of steamers belonging to the Harrison Com-
 
 42 TRADE AND TRANSrORTATION BETWEEN 
 
 pany, of Liverpool, wliich twice a month carries cargoes of English mer- 
 chandise to the Columbian ports and there load with raw materials for 
 !New Orleans. From the latter city they return to Europe loaded with 
 cotton. The freights from Europe are cheaper than from the United 
 States, and the Atlas Steam-ship Company, having uo competitor, does 
 not fail to imi)rove the advantage. 
 
 THE PROPOSED COMMON SILVER COIN. 
 
 With reference to the adoption of a common silver coin, Mr. F. G. 
 Pierra, of New York, who is a merchant enjoying a very large trade 
 with Colombia, says: 
 
 I believe that the establishment of a common silver coin would greatly benefit 
 comqiorce between the United States and Spanish America aud Brazil; but it is 
 rather difficult to say how far the measure is practicable. 
 
 Judging by the references to the subject which I have noticed in the public press 
 of those countries, the measure does not seem to be viewed with much favor, although 
 I have not yet been able fully to understand the grounds of their objections. Where 
 the metal is produced to some extent, they seem to be apprehensive of the cfifect 
 which the great production of the United States would have on theirs ; while some 
 observe that not having ourselves yet come to an agreement in regard to the silver 
 question, the discussion of a common silver coin is somewhat preuiature. The pro- 
 duction of silver in Colombia is now about $2,000,000, and is increasing. Work has 
 been commenced during the last few months on several mines, which it is expected 
 will be very productive. 
 
 I am not sufficiently well-informed to speak with certainty about the coinage and 
 paper currency of that Republic. The matter seems to be one somewhat confused. 
 The monetary unit is the silver peso, 900 fine and of .801 ounce weight, equivalent to 
 about 70 cents American gold. There is besides a half peso, of a very much lower 
 standard, which, I understand, is causing no little confusion and trouble. 
 
 The same regulations that exist in other countries are found in the 
 custom-houses of Colombia, aud technical errors are punished with pen- 
 alties out of proportion to their importance, even where it is evident 
 that no fraud was intended. 
 
 THE COMMERCE OP SAVANTLLA. 
 
 The principal port of Colombia is Savanilla, which lies upon a low, 
 sandy bar, and is connected by railroad with Barranquilla, the chief 
 commercial city of the country. Barranquilla, is near the mouth of the 
 river Magdalena, the great thoroughfare to the interior, and to Bogota, 
 the capital, and has a population of about 25,000, a majority of whom 
 are foreigners. 
 
 The exports from the port of Savanilla are about $7,000,000, and the 
 imports $10,000,000. The other ports of the country, Carthagena, Santa 
 Marta, Buenaventura, Aspinwall (Colon), and Panama, each had its 
 share of the commerce of the country, but at Savanilla most of the busi- 
 ness of the interior is done. 
 
 The chief exports last year were : Silver and gold bullion, $3,548,533 ; 
 cofiee, $1,470,000; hides, $750,572; tobacco, $401,900; cinchona bark, 
 $233,037, and rubber, $179,808. Of these exports $2,949,225 went to
 
 THE UNITED STATES AND LATIN AMERICA. 43 
 
 England; $1,845,201 to the United States; $883,224 to France, and 
 $664,329 to Germany. 
 
 Of the imports ofSavanilla $2,743,366 came from England ; $1,356,412 
 from France; $643,859 from Germany, and $517,386 from the United 
 States. The chief articles of import last year were as follows : 
 
 Cotton goods P,2G5,705 
 
 Provisions 1,218,926 
 
 Iron and steel 1,344,812 
 
 Building materials 1 520,053 
 
 Wines and liquors 952,336 
 
 STEAM-SHIP FACILITIES. 
 
 Savanilla has direct steam communication with New York by the 
 Atlas line, which, although owned by an English company and operated 
 under the flag of Great Britain, and receives subsidies from the British 
 West India colonies, confines its voyages to American waters, and 
 touches at all the chief Atlantic ports of Colombia and Costa Eica and 
 several of the West India Islands, being the rival of the Pacific Mail 
 Company, and competing to a certain extent with the '' Eed D ^ line. 
 Where the Atlas steamers come into competition with those sailing 
 under the United States flag they are able to give lower rates of freight, 
 because the cost of maintaining them is lower, but to ports where it 
 enjoys a monoi)oly, its charges are sufficiently high to make up the dif- 
 ference. 
 
 Some merchandise is sent to Savanilla by the " Eed D " line, by way 
 of Cura^oa, where it is transshipped upon English, French, or German 
 vessels, the little Dutch island being an important rendezvous for the 
 steamers that ply along the Spanish Main. 
 
 SUBSIDIZED LINES TO EUROPE. 
 
 Savanilla has four lines of transportation to and from England, viz. 
 The Eoyal Mail Steam Packet line of Southampton, semi-monthly ; the 
 West India and Pacific line of Liverpool, semi-monthly ; the Harrison 
 and West India line of Liverpool, semi-monthly ; and a Spanish line 
 which touches at Liverpool en route, also semi-monthly. 
 
 There is also a line of steamers between Savanilla and Havre (the Com- 
 pagnie G6n^rale Transatlantique) tri-monthly ; a German semi-monthly 
 line to Hamburg, and the line to Spain above mentioned. All of these 
 lines are subsidizes. 
 
 This gives the port of Savanilla thirteen steamers a month to and 
 from Europe, or one nearly every other day, while the steamers to and 
 from New York sail only once in fifteen days. 
 
 FAULTS OF AMERICAN MANUFACTURERS. 
 
 One great obstacle to the extension of our trade to Savanilla, which 
 means the interior of Colombia, is the failure of American manufact-
 
 44 TRADE AND TRANSrORTATION BETWEEN 
 
 urers to appreciate the importance of packing their goods in such a 
 manner as to permit their transporation over the mountains upon the 
 backs of mules and men. In Europe the packing of merchandise for 
 the South American trade is a fine art, which has never been studied 
 or cultivated in the United States. Packages should be made of a 
 certain size, and weight not over 125 pounds, and there should be as 
 little waste lumber and other material as possible, so as to add to the 
 convenience and cheapen the cost of interior trausporta,tion, as well as 
 to avoid the payment of unnecessary duties, which are all assessed by 
 the pound, gross weight. 
 
 In Colombia, roads, properly so called, do not generally exist, and are 
 rei)resented merely by mule tracks. Military labor has, however, been 
 applied within the last two years to the repairing of the principal routes 
 in the country, and great improvements have been made. The first road 
 suitable for vehicles was opened last year. It extends from the Plain 
 of Bogota to the river Magdalena, and will serve for the conveyance of 
 heavy goods, such as machinery and pianos. The postal service in the 
 interior is well arranged, being safe and as speedy as the conformation 
 of the country will permit. About 2,800 miles of telegraph are in work- 
 ing order, and about 200 more in course of construction. There are also 
 eight railway lines, which, however, extend no farther than 148 miles 
 altogether. Congress has approved of the construction of a line from 
 Bogota to the Lower Magdalena. Such a line would shorten the time of 
 transit between Bogota and the coast by three or four days for passen- 
 gers and mails, and by about a fortnight for merchandise. A concession, 
 which is very important, has also been granted to a French company 
 for a line of railroad from Bogota to the sources of the Orinoco Kiver, 
 which, when completed, will give an outlet to the Atlantic Ocean. 
 
 THE TRADE OF THE ISTHMUS. 
 
 The trade of the Isthmus of Panama should not properly be included 
 in that of the Republic of Colombia, although that portion of the con- 
 tinent is under the political authority of the Governnient at Bogota. 
 Aspinwall and the city of Panama are the entrepots for a large amount 
 of comnx'Tce from the west coast of South America, and the merchan- 
 dise that passes over the Panama Railroad daily is enormous. These 
 cities have a larger commerce than any others in either Central or 
 South America, but their population is small, and the imports on one 
 side oi' the Isthmus are immediately transshipped on the other side. 
 
 The Isthmus being the great thoroughfare of commerce, the following 
 statement fVom Mr. Thomas Adamsoii, United States consul-general at 
 Panama, will be found of especial interest as it shows the number of 
 vessels employed, tonnage, dates of arrival and departures, rate of 
 freight charges, subsidies from foreign Governments for carrying 
 mails, etc. :
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 45 
 
 STEAM-SHIP FACIUTIES AT PANAMA. 
 
 The three lines of steam-ships trading to Panama are "The Pacific Mail Steam-ship 
 Company," "The Pacific Steam Navigation Company," and " The South American 
 Steam-ship Company." 
 
 The Pacific Mail Steam-ship Company maintains three lines on the west coast of 
 North America, namely : 
 
 The San Francisco line, plying between San Francisco and Panama, with inter- 
 mediate calls, which consists of six ships, having au aggregate tonnage of 10,230 tons, 
 makes two trips each way monthly, from June to November, and three trips each way 
 per month during the remainder of the year. 
 
 The Mexican line consists of two ships, having an aggregate tonnage of 2,450 tons, 
 which ply between Panama and Acapulco, making one trip each way daring the 
 month. 
 
 The Central American line, plying between Panama and the principal Pacific ports 
 of Costa Rica, Nicaragua, Honduras, Salvador, and Guatemala, consists of two ships 
 of an aggregate tonnage of 3,010 tons, which make two trips each way per month. 
 
 The vessels of the Pacific Mail Steam-ship Company on the Pacific side of this con- 
 tinent make connections by way of the Panama Railroad with the vessels of the sftme 
 company plying between Colon, on the Atlantic side of this Isthmus, and New York 
 City. 
 
 Arrivals and departures of steamer 8. 
 
 Arrivals at Aspinwall. 
 
 Departures from A-spinwall. 
 
 Royal Mail Steam Packet Company's steamer : 
 
 From Southampton via ^Ve8t Indies, fort- 
 nightly. 
 Compapnio G6n6rale Transatlantiqne steamer: 
 
 From Marseilles ard way ports, 8th. 
 
 From Havre, Bordeaux, and way ports, 18th. 
 
 From St.-Nazaire and way ports, 3nth. 
 Hamburg- American Packet Company's steamer : 
 
 From Hamburg, Havre, etc., 4th "and 2l8t. 
 Compaiiia Tran.satlantica do Barcelona steamer : 
 
 From Barcelona and way ports, 28th. 
 West India and Pacific Steam-ship Company's and 
 Harrison Line steamers : 
 
 From Liverpool and way ports, every Thurs- 
 day. 
 
 Prom Liverpool and Bordeaux, fortnightly. 
 
 Royal Mail Steam Packet Company's steamer : 
 For Plymouth, Cherbourg, and Southampton, 
 via West Indies, fortnightly. 
 Compagnie G6n6rale 'Transatlantiqne steamer : 
 For St.-Xazaire and way ports, 3d. 
 For Marseilles and way ports, 11th. 
 For Havre, Bordeaux, and way ports, 21 st. 
 Hamburg-AmericaQ Packet Company's steamer : 
 For Hamburg, Havre, and way ports, 7th and 
 24th. 
 Companla Transatlantica de Barcelona steamer: 
 
 For Barcelona and way ports, 2d. 
 West India and Pacific Steam-ship Company's and 
 Harrison Line steamers : 
 For Liverpool via Xew Orleans, every Satur- 
 day. 
 For Liverpool via Vera Cruz and New Orleans, 
 fortnightly. 
 
 SUBSIDIES OR PAYMENT FOR CARRTING MAILS. 
 
 The Pacific Mail Steam-ship Company has mail contracts with all of the Central 
 American Governments and Mexico, according to which the company receives certain 
 stipulated sums for carrying mails and to secure the calling of the steam-ships at 
 their ports, etc. 
 
 Costa Rica pays to the Pacific Mail Steam-ship Company $12,000 per annum on mail 
 contract; Nicaragua pays to the Pacific Mail Steam-ship Company $8,000 per annum 
 on mail contract; Honduras, $5,000; Salvador, $24,000; Guatemala, $19,500; Mexico, 
 $30,000. Colombia pays for carrying its mails to New York and San Francisco (but 
 not to intermediate points) at the rate of 10 cents a pound for newspapers, and .50 
 cents a pound for letters. 
 
 The transportation of mails from Panama to Central America and Mexican ports is 
 included in the contracts of those countries. 
 
 The Pacific Steam Navigation Company, of Liverpool, England, employs in its 
 trade on the west coast of South America, between Panama and Port Monte Chili, a 
 fleet of twenty-seven vessels, of which seven have an aggregate tonnage of 17,421
 
 46 
 
 TRADE AND TRANSrORTATION BETWEEN 
 
 tons; thirtepn, 21,805 tons; fivo, 3,n:50 tons; two (tentlors), 324 tons; making a total 
 af^gregate of 42,880 tons. 
 
 The vessels of this company make seventy-eight arrivals at, and seventy-eight de- 
 [>artnrcs from Panama during a year ; that is to say, the steamers of the through Hue 
 to Chili arrive and depart weekly (fifty-two times), ami the steamers which do not go 
 farther south than Guayaquil arrive and depart fortnightly (twenty-six times). 
 
 The Colombian Government pays the Pacific Steam Navigation Company $1,050 
 (pesos) per month for transportation of mails, but information as to the amounts is 
 not obtainable here. 
 
 The South American Steam-ship Compauy (Compaula Sud Americana de Vapores) 
 has its principal office at Valparaiso, the vessels sailing under the flag of Chili. 
 
 The fleet of this line consists of sixteen steam-ships and one steam-tug, which are 
 thus described by the company, namely: 
 
 Names of eteamera. 
 
 Imperial 
 
 Mapocho 
 
 Maipo 
 
 Cachapoal 
 
 Laja 
 
 Amazonas 
 
 Lautaro 
 
 Itata 
 
 "Valdiva 
 
 Copiapo 
 
 Limari 
 
 Biobio 
 
 Longari 
 
 Maule 
 
 Pudeto 
 
 Hnanay 
 
 Ardilla (tng-boat) 
 
 Aggregate tonnage 29,706 
 
 Freight 
 capacity. 
 
 Regis- 
 tered ton- 
 nage. 
 
 1,608 
 1, .i52 
 1, 500 
 1,484 
 1,335 
 1,300 
 1, 350 
 1,201 
 1,145 
 890 
 750 
 
 Speod- 
 
 MileK. 
 18 
 15 
 15 
 15 
 15 
 15 
 13 
 13 
 10 
 12 
 10 
 12 
 10 
 10 
 10 
 10 
 
 Light. 
 
 Electric. 
 Do. 
 Do. 
 Do. 
 Do. 
 
 A new vessel, the Aconcagua, of 3,500 tons and a speed of 18 miles per hour, will 
 soon be finished and added to the line, and another small vessel is now being built 
 for the trade between Guayaquil and Panama. I have been particular to describe 
 the foregoiug ships separately, because they would all become a part of the Chilian 
 navy in case that Chili should become engaged in war with a foreign power. 
 
 The principal vessels of this line are magnificent ships, replete with every modern 
 convenience, and altogether the most comfortable vessels I have ever traveled on. 
 
 At present the service of this conipanj'' consists only of the through line Itetweeu 
 Valparaiso and Panama. The ships leave from both ends of the lino fortnightly, ar- 
 riving at Panama on alternate Thursdays, and departing from Panama on alternate 
 Saturdays. 
 
 Leaving Panama they call at Guayaquil, Paita, Eten, Pacasmayo, Salavery, Gal- 
 lao, Tambo de Mora, Pisco, Lomas, Qnilca, Mollendo, Pisagna, Iqnique, Autofogasta, 
 Taltal, Chanaral, Caldera, Carrizal Biijo, Huasco, Coquimbo, Valparaiso. 
 
 In September a new line will be in operation, running between Callao and Pan- 
 ama bi-monthly trips each way, and calling at sill the intermediate ports of Peru, 
 Ecuador, and Colombia. 
 
 The freight tariff from Valparaiso to New York and San Francisco, by connection 
 with Pacific Mail Steam-ship Company, range from $15 to $37. .50, in United States 
 gold, per ton. The rate of freight from Panama to Guayaquil or to Paita is $15 (sil- 
 ver sols) per ton ; to Callao .and V.'ilparaiso, !ii;20 i)er ton. Tlio competition between 
 this line and the Pacific Steam Navigation Company has reduced the rates for freight 
 and passage from 50 to J80 per cent. For instance, the price of first-class passage
 
 THE UNITED STATES AND LATIN AMERICA. 47 
 
 from Panama to Callao was formerly f 190, and now it is a matter of bargain, rating 
 geiK'rally at about |40. 
 
 'I'lio cntilian Govcinnieufc pays to the South American Steam-ship Company for the 
 weekly line between Vali)araiH0 and Calhio and intermediate ports, $125,000 per an- 
 num. On the 1st of February, 1888, when the line was extended to Panama, with 
 bi-monthly trips, the Government of Chili agreed to increase the subsidy by an ad- 
 ditional $100,000 for each of the first two years, and $75,000 for each of the following 
 years until May, 1894. This, of course, includes the transportation of the Chilian 
 mails. 
 
 One small and very indifferent steamer, of about 300 tons carrying capacity, plies 
 monthly between the port of Panama and the port of David, the latter being the 
 chief town of the Chiriqni district, in the western part of the department of Panama, 
 and about 75 miles from the frontier of Costa Rica. It owes its main support to the 
 cattle trade, and serves to bring to market the few products of the western district. 
 
 Respectfully submitting the foregoing for your information, 
 I am, sir, your obedient servant, 
 
 Thomas Adamson, 
 United States Consul-General.
 
 48 TRADE AND TliANyi'OKTATlON BETWEEN 
 
 VII. 
 
 THE COMMERCE OF VENEZUELA. 
 
 It is shown by the statistics of our trade that where we have lines 
 of steamers our merchants have no difficulty in competing with those 
 of England, Germany, and France, and the increase of our commerce 
 is noted. Take as an example the Republic of Venezuela, with which 
 we had a commerce of only $3,300,000 twenty years ago. Then there 
 was but one house engaged in the trade; nearly all the imports were 
 brought from Europe and nearly all the exports were sold there. Now 
 we have a commerce with that country amounting to $13,080,000 in 
 1888, or nearly one-half the total foreign commerce of the country, which 
 is between twenty-seven and twenty-eight millions of dollars. 
 
 In 1868 our exports to Venezuela were only $901,000. Now they 
 amount to $3,038,000 annually, having increased more than 300 per cent, 
 since steam-ship communicationwas established. The exports from Eng- 
 land to Venezuela during the year 1888 were but $786,000 more than from 
 the United States, and the exports from France were only about one- 
 third of those from this country. 
 
 THE TRADE EN COTTON GOODS. 
 
 More than two-thirds of the exports from England to Venezuela were 
 cotton goods — $2,386,380 out of a total of $3,794,-403 — and the other large 
 item was railway iron and sujiplies. The latter is due to the fact that 
 the railways of Venezuela have been and are still being constructed 
 by English contractors, who naturally purchase their material in their 
 own country. Therefore this item should not be charged to any lack of 
 enterprise upon the part of the merchants of the United States. 
 
 The reason why Venezuela purchases her cotton goods in England— 
 and they constitute almost the exclusive wearing apparel of the common 
 people of both sexes — is that the manufacturers of the United States 
 have not and for some reason will not produce goods suitable to that 
 market. This is the uniform testimony of the merchants of Caracas 
 and other cities of that liepublic. In commenting u])on this fact the 
 South American Commission, in their report on Venezuela, said: 
 
 Our merchants and mannfactnrorH, if they desire to compete with those of Great 
 Britain, France, and Germany, shonld rely on the truly American coiuniercial and 
 nianufacturius enterprise and sagacity, which exhibit themselves in ascertaining 
 the wants and even prejudices of the customers they seek to win, in supplying such
 
 THE UNITED .STATES AND I.ATIN AMERICA. 49 
 
 goods as they are disposed to buy, and in avoiding all attempts to pass off inferior 
 or damaged wares upon people who, although not as advanced in general material 
 progress as ourselves, are noted for their perspicacity and individual independence. 
 
 Here our merchants and dealers have no serious obstacle in the credit system; 
 the Venezuelan importers and traders without exception, so far as we could learn, 
 buy for cash. Tbey ar« strong in resources, and havt} built u]) a profitable tradti, so 
 that though they give credit to interior dealers, yet they do not ask it for themselves. 
 
 The superiority of many of our American fabrics has led foreign manufacturers to 
 acts of dishonest imitations and labels. In a large dry-goods importing house in 
 Caracas we were shown by the pro])rietor bolts of cloth having an impress of the 
 American eagle and the words beneath "Best American drilling " turned out of the 
 looms of Manchester, England. The goods were inferior, and the label was designed 
 to injure the reputation of the American article, and yet gain for the dishonest manu- 
 facturer the price of the genuine fabric. 
 
 TRADE NOT AFFECTED BY THE TARIFF. 
 
 Our trade iii Venezuela is not affected by the tariff of the United 
 States, for we are able to compete in that market with the European 
 manufacturers in every line of merchandise that we produce for export. 
 A reciprocity treaty, by which the government of that Kepublic would 
 stipulate to admit free of duty our breadstuffs, provisions, refined 
 petroleum, and lumber, in excliange for the free admission of her sugar 
 into our ports, would greatly increase our trade in that direction and 
 might result in the development of her sugar industry. In order to en- 
 courage her planters the Venezuelan Congress some years ago imposed 
 a in'ohibitory duty on sugar, and the entire domestic supply is now pro- 
 duced within the limits of the Eepublic, but none is exi)orted. The un 
 productive area of available sugar land is enormous,. but the capital and 
 the labor, as well as the enterprise, are lacking. 
 
 The duty on breadstuffs is very high, the retail price of flour in the 
 markets on the sea-coast being $14 per barrel. Lumber is sold at $100 
 per thousand feet, and the cost of furniture, imported provisions, and 
 petroleum is such as to prohibit their purchase by the laboring classes. 
 Gas at Caracas, the only city in the Eepublic where it is made, is $8 
 per thousand feet. Electric lights have recently been introduced at 
 Caracas, Valencia, and Maracaibo, the principal cities. 
 
 Venezuela enjoys ample steam ship facilities, not only with Europe, 
 but is one of the few countries in Central and South America with which 
 we have regular and rapid communication. 
 
 The banking fiicilities and credit system between the United States 
 and Venezuela are adequate, but there is a great deal of complaint 
 about the extortions practiced upon imj)orters at the custom-houses of 
 that Kepublic for unintentional violations of the customs regulations. 
 
 THE RED D STEABIERS. 
 
 Wherever we have proper transportation facilities, as is the case 
 with Venezuela, our trade is in a satisfactory condition, and only needs 
 attention from our manufacturers and exporting merchants to be vastly 
 S. Ex. 54 4
 
 50 TRADE AND TRANSPORTATION BETWEEN 
 
 enlarged. Messrs. Boulton, Bliss & Dallett, of New York, who own and 
 operate the line of steamers to Venezuela, have found their trade in- 
 creased, and their steam-ships ])a.ving expenses after a brief experiment, 
 and this result has been reached even against the subsidized Koyal Mail 
 Steam Packet Company, of England, which receives nearly $500,000 
 from the British Government, and $90,000 from the Island of Barba- 
 does for making that place its rendezvous, and the heavily subsidized 
 French, Spanish, and Dutch lines. 
 
 The United States Government has paid but $13,070.73 to encourage 
 the " Eed D " line since its establishment. In 1884 it received for the 
 transportation of our mails $1,046.32; in 1885, $1,392.94; in 1886 no 
 money was received by these steamers for the transportation of mails, 
 the bulk of them being carried for nothing. In 1887 the amount of 
 business had increased so that even at the low rate of compensation 
 l)aid, the money received was $4,547.47 ; in 1888 the amount was $6,084. 
 The distance traveled by these steamers each round trip is 4,260 nauti- 
 cal miles, and the total distance traveled each year is 132,060 nauti- 
 cal miles. Their compensation for postal services in 1885 was only an 
 average of $41 per voyage, or $8.20 per visit, and it always cost them 
 more than tbis to transfer the mails between the post-office and the 
 steamers. The value of the trade that has been built up by this line of 
 steamers is shown by the fact that 10,000 bales of cotton goods were 
 shipped to Venezuela from the United States in 1888, while in 1880 
 but 1,200 bales were shipped there.
 
 THE UNITED STATES AND LATIN AMERICA. 51 
 
 VIIL 
 
 THE COMMERCE OF ECUADOR. 
 
 Our commercial relations with the Eepublic of Ecuador are so limited 
 that they do not appear in the reports of our Bureau of Statistics ; 
 yet that country has a foreign commerce amounting from twenty to 
 twenty-two million dollars a year, of which the exports are about 
 eleven million dollars and the imports about ten millions. 
 
 The most imijortant crop is that of cocoa, which amounts to about 
 five million dollars. The best quality and the greatest quantity goes to 
 Spain, the United States taking only about $350,000 worth annually. 
 We take all of the rubber and nearly all of the hides. Of the coffee 
 we take about one-seventh; of the Peruvian bark the same proportion. 
 
 Ecuador buys her goods abroad in this order: First, England, then 
 France, then Germany, then the United States. Last year England 
 sent her about $2,600,000, of which nearly the entire amount was cot- 
 ton goods, while the United States sent only about half as much, 
 chietly hardware, edged tools, kerosene oil, lard, and other provisions, 
 cotton goods,merchandise, lumber, and wheat flour. The cotton goods 
 were produced in New England, the hardware and machinery in the 
 Eastern and Middle States, the oil and provisions in the Western States, 
 the lumberin the Southern States, and the flour in California. 
 
 OUK EXPORTS TO ECUADOR. 
 
 Our exports to Ecuador may be said to have remained stationary 
 during the last few years, while our imports from that country have de- 
 creased, as the production of india rubber, which was formerly quite 
 an item there, has diminished considerably. But the importations of 
 cocoa, as well as those of cofiee, have increased somewhat of late. With 
 regard to the imports of breadstuff's, wood and manufactures of wood, 
 provisions, and similar commodities, the advantage is in favor of the 
 United States. In machinery our exports are as large, and often larger 
 than those of the European manufacturers, and in cotton goods the low 
 grades can be bought to the same advantage here as in Europe, al- 
 though a special effort is mude by the manufacturers of Manchester to 
 I)roduce a fabric suitable to that trade.
 
 52 TRADE AND TRANSPORTATION BETWEEN 
 
 Our means of communication with Ecuador are by the Pacific ISTail 
 Steamship Company to Aspinwall, thence by rail to Panama, and then 
 by the steamers of the Pacific Steam Navigation Company, ot Liver- 
 l)ool, or the Chilian Company, which has recently been established as 
 a rival to the English line. The lumber is all carried upon sailing ves- 
 sels around the Horn, and much of the bulk of goods goes in the same 
 way. The Pacific Steam Navigation Company is heavily subsidized by 
 the Englisli Government, and the Chilian line received a subsidy of 
 $225,000 a year from Chili. 
 
 THE QUESTION OF FREIGHTS. 
 
 In regard to the freights, the South American Commission speak as 
 follows in their report on Ecuador: 
 
 We gathered from several gentlemen information touching our trade at Guayaquil, 
 ■which we may summarize in the following manner: Referring to the freight ques- 
 tion, meutioniMl by the president, and reiterated by every merchant we conversed 
 with, we found that the usual charge per ton by steamer from New York to Guaya- 
 quil is |130, and from England it is a little less than $27, while for sailing vessels it is 
 only one-half to Liverpool, Bordeaux, or Hamburg what it is to New York. In the 
 case of heavy shipments these rates are subject to some modification. It will be seen 
 at once that, other things being equal, the foreign dealer has in this item a marked 
 advantage over those of our country, the difference in freight alone in some articles 
 being a fair profit. The same hindrance we found stood in the way of the flour of 
 California seeking a market here. The sni^ply comes almost wholly from Chili, 
 though the California article is much preferred. One importer told us that three 
 years ago Hour from San Francisco cost him $12 per ton in gold for freight, while the 
 Chili product cost only $8 and $10, and, when brought in sailing vessels, only $4 
 per ton. He was discouraged with the venture, and imported no more flour from 
 California. Were the freights less, California would monopolize the flour trade of 
 Ecuador, for, at the same price, its superiority would control the market. 
 
 So long as all the business of this coast is done in foreign ships, diverting trade to 
 their own countries and remaining unrestricted as to charges, it seems for that time 
 the balances of the business will go to other nations than our own. A line of steam- 
 ers, cared for and fostered by our people, limited as to charges, would soon absorb 
 the bulk of the business here, other things hereinafter mentioned being rectified. 
 Whether this shall be done by the direct intervention of the Government in some 
 form or shall be left to private enterprise aided to a certain limit by the Government 
 is a question we need not discuss since its settlement depends entirely upon Congress. 
 That the people here have a just ground of complaint appears obvious. From Panama 
 to Valparaiso is about the same distance as from New York to Liverpool. A passen- 
 ger pays for the latter trip about $75; for the former, $250. The same extraordinary 
 disproportion in freight charges exists. 
 
 STATEMENT OF MR. F. G. PIERRA. 
 
 Mr. F. G. Pierra, of New York, who has a very large trade with 
 Ecuador, in a communication to the writer, says: 
 
 The customs regulations of Ecuador are not the most defective of those of the 
 Spanish American Republics; still, I think that there is room for improvement. Tiie 
 articles of merchandise are classified under nine different heads. Class the first com- 
 prises Jirticles the importation of which is prohiliited; class the second, those admitted 
 free of duty ; clasa the third, those paying 1 cent of suore per kilogram, gross weight ;
 
 THE UNITED STATES AND LATIN AMERICA. 53 
 
 class the fourth, 2 cents ; class the fifth, 5 cents ; class the sixth, 10 cents; class the 
 eeveuth, 50 cents; class the eighth, 1 sucro; class the ninth, 2") ctsuts. 
 
 Among the articles coinpriscil in class the first whoso importation is forbidden are 
 rum, all kinds of munitions of war, rifles, cartridges, Imllets, bombs, hand-grenades, 
 etc.; as well as revolvers, carbines, pistols, powder, etc., dynamite and other explo- 
 sives ; petroleum under 150 degrees test, and other minor articles. 
 
 In the second are comprised, free of duty, travelers' baggage, pitch, tar, ropes, cotton 
 duck, and other articles intended for the construction or repair of vessels. Also the 
 natural or manufactured products of Colombia and Peru ; machinery and mining 
 tools, fire-engines, boats and other small crafts, coal, life-preservers, oars, etc. 
 
 In the third class are included, among other articles, Roman cement, bricks, stone 
 filters, slates, tiles, pig-iron, etc. 
 
 In class the fourth are included anchors, iron wire, plows, hoes, picks, shovels, iron 
 nails, store trucks, unmanufactured iron, steel, copper, tin, agricultural machines, 
 lumber (undressed boards and scantling), iron pipes, types and printers' materials, 
 paper for newspapers, etc. 
 
 In the fifth class are common harnesses, empty barrels, pipes, pails, iron chains 
 for vessels, common glassware, manilla and sisal rope, salt meats, petroleum, hams, 
 carriages, etc. 
 
 The sixth class comprises linseed-oil, varnishes, trunks, manufactured iron, me- 
 chanics' tools, butter, household furniture, paints, caudles, billiards, lard, writing 
 paper, etc. 
 
 In the seventh class : All kinds of woolen goods, and unmanufactured and manu- 
 factured tobacco. 
 
 In class the eighth: Chromes, artificial flowers, hats, shoes, etc. 
 
 In class the ninth : All non-enumerated articles, and consequently cotton prints, 
 drillings, white goods, etc. 
 
 Export duties on each 100 kilograms are charged, among others, on the following 
 articles: Oucocoa, 64 cents; on coffee, 44 cents; on india-rubber, .$5; on hides, 50 cents. 
 
 The objectionable feature of the customs tariff of Ecuador is the classification 
 which the exporter here is compelled to make of the goods which he ships. 
 
 The following duties are charged per kilogram of gross weight on wheat: Indian 
 corn and other flour, 5 cents; on wheat, barley, and Indian corn, 2 cents; on salted 
 and smoked meats, 5 cents; on lard and butter, 10 cents; on lumber (rough boards 
 and scantling), 2 cents. 
 
 A RECIPROCITY TREATY DESIRABLE. 
 
 In ray opinion it is very desirable that the United States should engage in reciproc- 
 ity treaties with the other American countries as the most effective way of obtaining 
 an immediate enlarged outlet both for our manufactures and for our farm and forest 
 products. From Ecuador, however, at present we do not import any article which 
 is not admitted duty free, and, conseiiuently, I do not see what could be oft'ered in re- 
 t«m for the concession which might be asked of that country. Moreover, we are not 
 very important consumers either of their cocoa and coffee or hides and ivory nuts. 
 The sugar produced in Ecuador is scarcely enough to supply the consumption of the 
 country. None comes here. 
 
 The monetary unit in Ecuador is the Sucre, a silver coin, I believe, of the same 
 standard and weight as the Colombian peso, and equivalent to 70 cents American 
 gold. The state of the currency, since the reform which was made four years ago, is 
 not bad; although I hear some complaints lately on account of the influx of worn- 
 out coins from adjoining countries. The paper currency consists of bank notes, re- 
 deemable in coin.
 
 54 TRADE AND TRANSPORTATION I'.ETWl^F.X 
 
 IX. 
 
 THE COMMERCE OF PERU. 
 
 The condition of Peru since the war with Chili has been that of com- 
 plete commercial and financial prostration. The industries of the Re- 
 ])nl)lic were paraly^^ed, the plantations were devastated, the mines were 
 flooded, and the machinery for working them destroyed, the laboring 
 population depleted, and the people as well as the Government reduced 
 to the utmost poverty. A large and profitable commerce was destroyed, 
 the productions of the country have beeu scarcely sufficient for local 
 consumption, and the imports of foreign merchandise limited to the 
 meager necessities of life. 
 
 But the Congress of Peru after a long struggle has recently accepted 
 a plan of compromise with the holders of the foreign debt which is 
 expected to result in the revival of prosperity in a laud of elastic con- 
 ditions and almost uulimited resources. It is hoped that there will be 
 an immediate resumption of activity in all lines of business, an influx of 
 immigration and foreign capital, and that a restoration of confidence in 
 commercial circles will follow the restoration of the national credit. 
 
 THE FORMER COMMERCE OF PERU. 
 
 In discussing the commerce of Peru I refer to the report of the South 
 American Commission, whose observations in that country were thorough 
 and hold good at the present date. It says: 
 
 Tho commerce of Peru with the Uuitecl States was formerly very large, but it has 
 now been reduced to a more nominal amount, including only those articles which can 
 not be X'urchased elsewhere. Before tho late war with Chili large imports of wheat, 
 lumber, lard, kerosene, canned goods, trunks, clocks, sowing-machines, railway and 
 8tre(;t car supplies, household utimsils, perfumery, patent nu^diciui's, cordage, sail- 
 cloth, and other articles, were made from the United States. But during the first six 
 months of 1884 less t.han $1500,000 worth was imported from our country, of which 
 $.'>,000 was lumber, $22,000 lard, $40,000 kerosene oil, $ir),000 wheat, and $130,000 
 geueral merchandise. In linen, cotton, and woolen goods the United States has no 
 hold on Peruvian commerce, nor can our merchants obtain one until the bnsinesa 
 system at houic is modified to meet the requirements of this coast, the chief obsta- 
 cle being found in tho matter of credits. English and continental importers, through 
 their agents and consignees in Peru, until tho recent financial crisis, gave credit to
 
 THE UNITED STATES AND LATIN AMERICA. 55 
 
 the purchasers, sometimes oxlondinp to eight, ten, and twelve nioiiths, and naturally 
 the pnrch;iser i)refer8 deal in;^ with niercbant.s granting Kuch privilisi^os. Tiii.s refers 
 particularly to linen, woolen, cotton, and other forms of wearin<r apparel, with which 
 the interior Peruvian markets are supplied by merchants on the coast, who are com- 
 pelled to give credit to their customers and expect credit from those of whom they 
 bny. 
 
 Custom and habit also have a great influence in Peru, as in other Spanish-American 
 countries. The purchaser becomes accustomed to a certain class of goods with a 
 peculiar trade-mark, or some special token or medal attached to the bale or parcel of 
 goods, and on no account will he invest in any other description of the material, if 
 the old one can be had. This conservatism of the Peruvians, which is especially 
 marked in the interior, is at once apparent from the fact that they use the same im- 
 plements of agriculture and husbandry that were employed at the time of the Span- 
 ish conquest. American hardware and agricultural machinery might be pushed in 
 the interior by means of active agents, and by paying attention to the form of pack- 
 ing necessary for transportation on mule back. 
 
 THE PROSPEKOUS ERA OF THE REPUBLIC. 
 
 From 1870 to 1880, before the war with Chili began, the exports from 
 the United States to Peru averaged nearly $2,000,000 annually, but 
 they have now fallen off until the average is less than $000,000. In 
 1875, for example, which was one of the average years, when Peru was 
 at peace, she imported $2,480,000 worth of merchandise from the United 
 States, consisting of iron and steel, $1,100,000; lumber and furniture, 
 $411,000; provisions, $200,000; petroleum, $105,000; breadstuff's, 
 $75,000; cotton manufactures, $26,000; cordage, $12,000; drugs, 
 $27,000; tobacco, $15,000; and about half a million dollars' worth of 
 other merchandise. This trade has so far fallen off that in 1888 we ex- 
 ported to Peru but $120,000 worth of iron and steel, $108,000 worth of 
 lumber and furniture, $114,000 worth of provisions, $820 worth of oil, 
 no drugs at all, no tobacco, $46,000 worth of breadstuff's, no cordage, and 
 $ 174,000 worth of cotton goods. 
 
 WHERE PERU BUYS HER MERCHANDISE. 
 
 As has been said above, no commercial statistics have been published 
 in Peyu since 1877, owing to revolutionary movements and the war with ' 
 Chili, and it is not possible to give any accurate estimate of the com- 
 merce of the country since that time. Hitherto Peru has got her cotton 
 goods mostly from England, some from France and Germany, and only 
 a few from the United States. Woolen goods have come mostly from 
 France and Germany, her linen goods from the same countries, and her 
 silk from France and China. Her furniture has mostly come from the 
 United States ; her ready-made clothing, from France and England; 
 her general merchandise, from England, France, Germany, and Italy, 
 with a considerable amount of what are commonly termed " Yankee 
 notions" from the United States. Most of her breadstuff's have come 
 from Chili and the United States; her fine preserved fruits, from Eng- 
 land and France ; and her preserved provisions from the United States.
 
 56 TRADE AND TRANSPORTATION BETWEEN 
 
 Eiij^laiicl, France, and (iermany liave controlled the drug trade. Tier 
 railnjad supplies have been divided between the United States and 
 England, the greater portiou of the railroad iron, locomotives, and en- 
 gines being bought in the latter country rnd the cars in the United 
 States. Her agricultural machinery and her sugar mills have come 
 from England and France, leaving to the United States a monopoly only 
 of lard and kerosene. 
 
 EXPORTABLE PRODUCTS 
 
 The exports of Peru formerly were very large, amounting oftentimes 
 to treble her imports. Of the exports the United States has had only 
 a small proportion, consisting of guano, nitrate of soda, hides, and 
 sugar. The principal articles exported, outside of guano and nitrate, 
 have been silver, copper, and sugar, which have gone to England, 
 France, and Germany. A little cotton has been sent to France, Eng- 
 land, and Chili ; rice to Chili and Panama ; cocoa to France, Germany, 
 and England; sarsaparilla to England, France, and Germany; choco- 
 late to England, France, and Germany ; wool to England and France j 
 tobacco to Chili and Ecuador; drugs and dyestuifs to German 3', Eng- 
 land, and France ; while the United States has taken a greater part of 
 the hides and goat-skins. 
 
 The exports from Peru to the United States in 188S were only $309,040, 
 and consisted chiefly of chemicals, drugs, hides, and skins. The exports 
 to England were valued at $7,9Sl,917, of which about half were chem- 
 icals and drugs ; $1,358,000 sugar, and $1,340,000 wool. The exports 
 to France amounted to $4,794,000, of wbich $3,890,000 were chemicals 
 and drugs ; and to Germany $2,029,000, of which $1,953,000 was silver 
 ore. 
 
 OUR EXPORTS TO PERU. 
 
 Our exports to Peru in 1888 reached $865,160, w^hile those of England 
 w^'re valued at $3,489,869, and those of France $1,055,625.- 
 
 It would be very easy for the United States to engage in a reciprocity 
 treaty with Peru, provided our Congress would consent to admit free 
 of duty the sugar and wool of that country, in consideration of similar 
 concessions on her part. 
 
 Peru has adequate steam-ship communication with Europe, but has 
 none with the United States. Touching her ports regularly are lines 
 of steamers from England, Germany, and France, all of which are sub- 
 sidized. Tlie freight rates to the United States are about $29 a ton, 
 while those to Liverpool are $14 or $15, and to Uamburg even less. 
 
 Being a silver-producing country, and having untouched deposits of 
 nnnieasured wealth, Peru would be glad to secure the adoption of a 
 common coin.
 
 THE UNITED STATES AND LATIX AIMKRTCA. ")? 
 
 THE COMMERCE OF BOLIVIA. 
 
 The foreign trade of Bolivia amounts to about $20,000,000 a year, and 
 is nearly equally divided between exports and imports. The principal 
 exports are silver bullion, hides, skins, Peruvian bark, coca, and other 
 drugs and medicines, coffee, and copper. The principal imports are 
 wearing apparel, machinery, hardware, cutlery, clocks, watches, and 
 canned provisions. England very nearly monopolizes the trade. 
 
 The commerce between the United States and Bolivia is not deemed 
 of a sufficient amount to enter into the competitions of our statistical 
 bureaus. We really have no direct commerce with that country, and 
 the merchants only i)urchase here what they can not elsewhere obtain. 
 
 The exports of Enghmd to Bolivia are mostly cotton goods, which is 
 the principal wearing apparel of the people, with some drugs, hard- 
 ware, machinery, and notions. France furnishes a large part of the 
 wearing apparel, jewelry, fancy goods, wines, and canned provisions. 
 
 HOW BOLIVIA IS REACHED. 
 
 Bolivia is the least accessible of all the South American countries, 
 which is due to the fact that her sea-coast was entirely absorbed by 
 Chili at the close of the recent war, and the commerce of the country 
 with the outside world is now entirely carried on through Chilian and 
 Peruvian ports on the west coast. The principal jwrt of entry is 
 Mollendo, from which there is a railroad to the interior of the country, 
 owned by an American, Mr. J. S. Tliorndyke, and operated by him until 
 recently, when it was seized by the Peruvian Government. Mr. Thorn- 
 dyke now has a claim before the Department of State for the recovery 
 of his road, but the case has not been settled. 
 
 Owing to the fact that all of the Bolivian trade is conducted through 
 the ports of other countries, statistics are difficult to obtain, and it is 
 believed that the commerce is larger than the figures given above, but 
 is credited to either Peru or Chili. Whatever has been said with refer-
 
 58 TRADE AND TRANSPORTATION BETWEEN 
 
 euce to Ecuador, Pern, or Chili, with regard to trade and steam- ship com- 
 iiHinicatiou, is equally applicable to Bolivia. 
 
 Mr. Melchor Obarra, consul-general of Chili at New York, in a re- 
 ceut interview with a representative of " Export and Finance," gives 
 some information which is very interesting and valuable, as follows: 
 
 THE COTTON GOODS TKADK. 
 
 The cotton goodH of the United States of all kinds arc much proferred Llironji,li 
 Sonlli Auiorica to those manufactured in Europe, but on account of the hi<;h freights, 
 which am the consequence of the want of din^ct steaui-ship conininnication, they 
 come so high as to put them out of the reach of the jioorer class of people. I have 
 read with great interest the articles in your paper contending that the Government 
 ishould do something to encourage its shipping, the same as European countries do. 
 It may he that a few of the short lines plying between New York and the West In- 
 dian ports are paying a fair return to their stockholders without subsidies, but sub- 
 sidies are necessary if you wish capital to invest in large ocean steamers going the 
 long distances between many of the ports of South America and New York. 
 
 DIFFICULTIES OF TRANSPORTATION. 
 
 W(! have only two ways of sending goods to Bolivia. One is by sending them by 
 the Pacific Mail steamers to Colon, thence across the Isthmus of Panama, where they 
 ;ire tranship]ied to another steamer. The freight consequently comes extremely 
 high. The company charge by volume where the freight is bulky, and by weight 
 where it is heavy. They charge so as to make the rate by the higher scale. Myex- 
 jierience in sending goods has not been a fortunate one. Out of a consignmeut of 40 
 stoves which I shipped by way of the Isthmus, not one reached Arica without being 
 smashed. I sent down two pianos, and when they arrived they were only fit for 
 kindling wood, and my last venture was with a turbine wheel, that was ordered 
 for the electric works that light the city of La Paz. What became of it I never 
 knew. It reached Colon safely, but it never got to Panama, and it is probably lying 
 in the swamps of the Isthmus. 
 
 The other way of sending goods is to ship them from hero to Hamburg and from 
 Hamburg to Arica. This is becoming the favorite method of transporting goods. 
 Whatever I have shipped in this way has arrived safe and in good condition at Arica, 
 including household furniture and things very likely to be injured in transit. The 
 freight, too, is much less this way, and what an important consideration freight is, 
 you may understand when I tell you that I bought a wine press for $200, and the 
 freight on it by way of Panama amounted to $250. 
 
 MISTAKES OF AMERICAN MERCHANTS. 
 
 There is another thing that you people should do, send agents into those countries 
 of South America you wish to trade with, to study the commercial habits of the peo- 
 ple. The question of transport in South America is a very important one, yet here 
 you never seem to consider it for a moment. The greater part of the transport in 
 South America, and especially in countries like Bolivia, is done by pack-mules. A 
 mule can not carry more than from 100 to ir)0 pounds, yet your merchants go on put- 
 ting uj) your goods in immense packages, which have to be reopened and repacked in 
 smaller packages when they reach the port of destination. 
 
 Then as to this matter of credit. In many cases European houses give as much as 
 twenty-four months' credit. This enables the South American merchant to sell at 
 six months' credit to the smaller merchants in the interior parts of the country, and, 
 as he is willing to pay higher for the long credit given, the European exporter rarely 
 suffers any loss.
 
 THE UNITED STATES AND LATIN AMERICA. 59 
 
 RECIPROCITY TREATIES. 
 
 Our i)PO])In are anxious to trade largely with the United States, and wo believe our 
 Government weuld be willing to go so far as to consent to a treaty of reciprocity. 
 Of course reciprocity is altogether against us, because the main support of the Gov- 
 ernment of Bolivia, in common with the majority of South American countries, is 
 derived from the custom-house. The taking off by your Government of the high 
 tariff imposed on cotton and wool, our chief exports, would hardly compensate for 
 the loss of the customs dues on the quantity of goods which the United States 
 might send into Bolivia. Bolivia now has no coast line, it havipg been part of the 
 indemnity paid to Chili at the conclusion of the last war. All the imports into the 
 country are made by way of Arica and Antofagasta.
 
 XI. 
 
 THE COMMERCE OF CHILI. 
 
 The foreign commerce of Chili in 1888 amounted to $128,000,000, of 
 which the exports were $78,000,000 and the imports $50,000,000. Of 
 this commerce the United States furnished but $2,L*00,000 of the im- 
 ports, and took but $2,450,000 of the exports. Wool and nitrate were 
 the chief articles exported to the United States, and the im[)orts con- 
 sisted of a variety of articles, but a small quantity of each. England 
 had the lion's share of the trade — about 50 per cent., and France about 
 30 per cent. 
 
 The exports of Chili consisted entirely of raw materials, $63,200,030 
 coming from her mines, mostly nitrate, copper, and silver, and $8,784,- 
 3(;() representing the products of agriculture, of which $6,000,000 was 
 wheat and other cereals. 
 
 THE COMMERCE OF 1887. 
 
 The commerce of Chili in 1887 was valued at $108,180,848, of which 
 $59,540,958 were exports and $48,030,862 were imports. The imports 
 in 1886 were $44,170,147, which shows an increase of more than four and 
 one-half millions during the year. Of the irni)()rts in 1887 Great Britain 
 contributed $20,403,584; Germany, $11,631,891 ; France, $5,500,949, and 
 the United States, $3,242,314. 
 
 The exi)orts of Chili can be classified as follows: 
 
 Cla.s8iflcation. 
 
 Value in 1886. 
 
 Value in 1887. 
 
 
 $40, 264, 340 
 9, 710, 747 
 66, 521 
 107,391 
 446, 734 
 644, 416 
 
 $40, 449, 015 
 
 
 y, :iOit, 247 
 
 Maiiiira<-tiireH 
 
 40,081 
 
 MiHci'llaueoua .... 
 
 40, 655 
 
 Re-exportation 
 
 321,475 
 
 
 317,485 
 
 
 
 
 Total 
 
 51, 240, 149 
 
 59, 649, 958 
 
 
 
 60
 
 THE UNITED STATES AND LATIN AMERICA. 
 The imports are clasified as follows: 
 
 (A 
 
 Classification. 
 
 1887. 
 
 Footl 1)10(1 ucts 
 
 Tex tiles 
 
 Kaw TnatciiaLs 
 
 Clotliiii}:, jewelry, Pto 
 
 Mat liiiierj-, tools, etc 
 
 Fiiriiituin aii'l household goods. 
 Kailway and telt;t;raph aupplii-s 
 
 Wines and liiiuors , 
 
 Siiiitr, tobacco, etc 
 
 I'recious nielals 
 
 Fine arts . 
 
 Drills, medicines, etc 
 
 Arms andninmuuition , 
 
 Miscellaneous 
 
 ■Specie iiud bank-notes 
 
 Total 
 
 $12, 300, 402 
 0, t;78, 205 
 4, 886, lO:) 
 
 2, 429, 273 
 4, 246, 300 
 2,871, 176 
 
 850, 78!) 
 01.5, 8-.'7 
 413,009 
 110,336 
 693, 384 
 615,398 
 59, 864 
 
 3, 877, 925 
 213, 000 
 
 44, 170, 147 
 
 $10, 184, .MO 
 l],4(i9, 28-J 
 0,221, 190 
 
 2, 569, 394 
 5,648,557 
 
 3, 304, 323 
 1,443,827 
 1, 079, 905 
 
 447, 534 
 
 10,279 
 
 016,716 
 
 686, 446 
 
 72, 879 
 
 4, 777, 136 
 
 98, 854 
 
 48, 630. 862 
 
 THE SHARE OP THE UNITED STATES. 
 
 The following statement shows the meager share of these imports 
 furnished by the United States : 
 
 Articles. 
 
 Keflned sugar... 
 
 Kice 
 
 Plows 
 
 Turpentine 
 
 lUnckiug 
 
 Pitch 
 
 Iron safes 
 
 Carriages 
 
 Beer 
 
 Nails 
 
 Cooking ranges . 
 Cotton ticking. . 
 
 Glass-ware 
 
 Cutlery 
 
 Cotton drills.... 
 Drugs 
 
 Shoe pegs 
 
 Lucifer matches 
 
 Flannels 
 
 Paraffine .... 
 
 Carpenters' tools 
 
 Total value. 
 
 $2,949,216 
 460, 088 
 24, 306 
 53, 544 
 24, 973 
 34, 401 
 9, 544 
 17,417 
 83, 135 
 
 266, 793 
 2-J, 287 
 120, 746 
 196, 436 
 33, 488 
 190, 013 
 556,811 
 
 11, 740 
 
 224, 174 
 
 270, 521 
 
 581,755 
 
 75, 175 
 
 From the 
 United 
 States. 
 
 $61,188 
 
 681 
 
 11,993 
 
 40, 042 
 
 2, 709 
 
 1,941 
 
 180 
 
 3,371 
 
 1,500 
 
 108, 330 
 8,018 
 3,435 
 4,599 
 1,124 
 1,454 
 19, 719 
 
 2,519 
 
 20 
 
 155, 404 
 
 545, 734 
 
 12, 090 
 
 Articles. 
 
 Common soap 
 
 Hope 
 
 AVhite shirtiufis 
 
 Ticu.serings 
 
 Cotton bagging 
 
 Canvas 
 
 Railwaj' materials 
 
 Telegraiih materials .. 
 
 Agricultural machin- 
 ery. 
 
 Sewing-machines 
 
 Machinery 
 
 Hardware 
 
 J^iirniture 
 
 Wick 
 
 Writing-paper 
 
 Printing-paper, supe- 
 rior. 
 
 Printing-paper, ordi 
 nary. 
 
 Prints 
 
 Bags 
 
 Chairs 
 
 Calicoes 
 
 Total value. 
 
 $8, 490 
 
 60, 057 
 
 1, 923, 340 
 
 1, 067, 224 
 
 38o, 506 
 
 3fi, 499 
 
 1, 095, or.7 
 
 30, 683 
 
 33, 772 
 
 128, 742 
 469, 069 
 
 1, 431, 635 
 134,213 
 
 34,836 
 60, 023 
 38, 041 
 
 191, 739 
 
 2. 268, 903 
 1, 188, 758 
 
 96, 430 
 978, 211 
 
 From the 
 United 
 States. 
 
 $2, 646 
 14,207 
 33, 08:i 
 40, ,532 
 141,834 
 4,712 
 98,391 
 
 2, 78 1 
 16, 632 
 
 7, 780 
 45,115 
 94, 232 
 27,57) 
 
 2,290 
 
 3, 5;!3 
 2,083 
 
 16, 123 
 
 14, .308 
 
 27, 131 
 
 119, 749 
 
 SHIPPING STATISTICS 
 
 The following shipping statistics show the relative position of the 
 United States flag to the total tonnage entered and cleared at Chilian 
 ports in 1887 : 
 
 Vessels. 
 
 Foreign— 
 
 Sailing vessels entered 
 Sailing vessels cleared 
 
 Steamers entered 
 
 Steamers cleared 
 
 Coasting — 
 
 Sailing vessels entered 
 Sailing vessels cleared . 
 
 Stiainers entered 
 
 Stu.imera cleared , 
 
 All flags. 
 
 No. 
 753 
 678 
 049 
 761 
 
 1,784 
 1, 768 
 i,469 
 4,254 
 
 Tont. 
 557,136 
 581,603 
 987, 844 
 ,100,049 
 
 908, 939 
 
 873, 595 
 
 , 425, 673 
 
 » 287, 613 
 
 United States flag. 
 
 A^o. 
 
 Tont. 
 
 27,440 
 19, 848 
 1, 712 
 4,169 
 
 46, 760 
 
 36, 060 
 
 2,401 
 
 826
 
 62 TRADE AND TRANSPORTATION IJKTWEKN 
 
 The exports from the United States to Chili are likely to be much 
 .larger during the present and succeeding years because of a contract 
 recently awarded by the Government to a firm of American contraetors 
 for the construction of about 750 miles of railroad at a cost of about 
 $15,000,000, and it is stipulated that the rolling stock shall be of the 
 American pattern. 
 
 THE CHILIAN LINE OF STEAMERS. 
 
 Chili has adequate steam communication with Europe and an excel- 
 lent line of steamers of her own. The South American Steam-ship 
 Company (Compania Sud-Americano de Vapores) is a Chilian organi- 
 zation. It has a capital of $3,500,000, which received an annual com- 
 pensation of $225,000 in silver, payable monthly, from the Govern- 
 ment of Chili, for the transportation of mails between Valparaiso 
 and Panama, which is a guarantied dividend of 6^ per cent, upon 
 the authorized capital of the company, or more than 10 per cent, 
 upon the actual investment. The contract covers a term of ten years, 
 and the vessels are required to sail twice a month. The fleet of the 
 company comprises eighteen first-class steamers, constructed in En- 
 gland especially for this service. Their tonnage varies from 1,200 to 
 2,000, and their horse-power from 1,000 to 1,500. The officers and en- 
 gineers are mostly Englishmen and Americans. This company was 
 organized to afford competition with the vessels of the Pacific Steam 
 Navigation Company, which for a long time had a monopoly of trans- 
 portation upon the west coast of South America, and have been effect- 
 ive in reducing freights and passenger rates to reasonable sums. 
 
 THE WOOL PRODUCT OF CHILL 
 
 There are very few products of Chili that can be exported with profit 
 to the United States; and they are guano, nitrate, and wool. The 
 same remarks that have been made regarding the wool of Peru ap- 
 X)ly to the product of Chili. It does not compete with the merino wool 
 of the United States, but is of a much coarser variety, and is used ex- 
 clusively in th^ manufacture of cari)ets. The sheep growers of the 
 United States do not attempt to produce this wool, and therefore need 
 not be protected against it. 
 
 The chief export of Chili to-day is nitrate of soda, and always will 
 be, as the deposits in that country are so great as to be practically in- 
 exhaustible. The nitrate is not utilized in the United States to the 
 same extent as it is in Europe, but will eventually become a large arti- 
 cle of exportation to our country. Experiments are being conducted 
 for the purpose of discovering some method by which nitrate can be 
 utilized for fertilizing material, and if they are successful the purchase 
 of that article in the United States will be much larger than now. 
 
 All the guano now remaining on the west coast of South America be- 
 longs to Chili, and it is claimed that there is very little left of a high
 
 THE UNITE tJ STATES AND LATIN AJUEKICA. 63 
 
 grade such as was formerly shipped in large quantities. The Govern- 
 ment of Chili owns all the guano, and contracts for its sale to private 
 parties. 
 
 Chili exports a great deal of flour, and supplies the west coast of 
 South America with that article. 
 
 HOW TRADE MAY BE SECURED. 
 
 The import trade of Chili, as has been shown, is very large, and if 
 proper means could be provided for the shipment of goods the mer- 
 chants of the United States might secure a large share of it ; but before 
 any efforts can be profitably made in this direction, some means must 
 be devised of securing steam-ship communication with that country. 
 Lower freights, quicker time, longer credits, banking facilities, the 
 selection of goods suitable to the demaiids of this market, and better 
 packing are all necessary elements in any effort that may be made to 
 build up a trade. It is also necessary for our merchants to have agen- 
 cies or branch houses in Chili which shall carry such stocks of goods 
 as shall enable their representatives to fill orders when they are re- 
 ceived. 
 
 Cotton goods are especially needed in Chili, but the American manu- 
 facturers do not produce the fabric that is demanded in that country. 
 The people want a cheaper article than our mills now produce. They 
 want the same sort of fabric that they get from Europe, a mixture of 
 cotton, pipe-clay, and starch, which sells for 5 cents a yard, while the 
 American article approaching nearest it costs 7 cents a yard. 
 
 POPULARITY OF AMERICAN GOODS. 
 
 A recent article in a New York paper asserted that the reason our 
 cottons were not sold in Chili was that our prices are too high. This 
 IS not true. English goods of the same weight and texture sell for 
 quite as much and often more than those from the United States. But 
 very few of the better class of goods are sold. Nearly all the railroad 
 supplies of Chili are furnished by the United States, and were the ques- 
 tion of freights more in our favor we should have almost a monopoly, 
 for there is an entire concurrence of testimony from experienced men as 
 to the great superiority of our engines, cars, and other supplies, with the 
 single exception of steel rails ; but the tedious delay in getting freight 
 from New York gives our English competitors the advantage. 
 
 For all farm work our machinery is preferred as it is more conven- 
 ient and better adapted to its use, but there is a complaint that it is 
 not heavy enough to be handled by men so careless and stupid as the 
 Chilian laborers. It will pay manufacturers of agricultural machinery 
 and implements to send agents to Chili to study the demands of that 
 market and see wherein the goods they now furnish fail to give satis- 
 faction.
 
 64 TRADE AND TRANSPORTATION BHTWKEN 
 
 American sewinj:^-machines are considered the best by all the mer- 
 chants of Ghili, and are so good and popular that the Germans have 
 driven them out of the market with cheap iaiitations. In many other 
 articles, snch as paints, oils, drugs, stationery, and hardware, we can 
 compete with the English manufacturers even under the present freight 
 disadvantages, and there is no doubt whatever that a large trade might 
 be built up if proper facilities were afforded. 
 
 THE QUESTION OF FREIGHTS. 
 
 Freights via the Isthmus are so high that few goods are sent from the 
 United States to Chili, except by sailing vessels, or steamers via Eu- 
 rope. There are two houses in Chili, branches of W. 11. Grace & Co., of 
 New York, and Ilemmingway & Brown, of Boston, who have lines of 
 sailing vessels arriving and departing with regularity, carrying down 
 merchandise and taking back guano, nitrate, and wool, but these vessels 
 are used by the houses who own them and do not do a regular transpor- 
 tation business. 
 
 The frequent complaint of the breaking of parcels and boxes on the 
 Isthmus show that New York shippers in this item alone tind the loss 
 so serious as to deprive them of their x^rofits on goods that go that way. 
 The steamship lines of the Old World are a controlling power in direct- 
 ing trade, and not only do they offer low rates and sail regularly, but 
 discriminate in other ways in favor of European merchandise. Not one 
 of these lines was started or could ^lave been maintained without assist- 
 ance from the government under whose flags it sails, and if the mer- 
 chants of the United States expect to compete with the merchants of 
 Europe, whoever establishes steam communication must have the same 
 amount of assistance. 
 
 THE INTERNATIONAL COIN. 
 
 The Government of Chili is heartily in favor of the adoption of a 
 common international coin, audit was the only topic of the several to 
 be discussed at the approaching Congress that was indorsed and ap- 
 proved. In the conference that was held between the President and 
 his Cabinet and the South American Commission in 1885, the former 
 stated very frankly that his Government did not care to enter into a 
 reciprocal treaty with the United States, as he did not see any advan- 
 tage to be derived from it. 
 
 There are no customs-house exactions to be complained of in Chili, 
 but tlie patent laws and treaties are very defective, and the markets of 
 that country' are flooded with fraudulent goods of English and German 
 make bearing the forged trade-marks of the manufacturers of the United 
 States.
 
 THE UNITED STATES AND LATIN AMERICA. 65 
 
 XIL 
 
 COMMERCE OF THE ARGENTINE REPUBLIC. 
 
 The total foreign commerce of the Argentine Republic in 1888 reached 
 the enormous amount of $280,600,000, of which $172,410,000 represented 
 the imports, including $44,000,000 coin, and $108,280,000 the exports. 
 
 Much of the increase in 1888 represents railway material, of which 
 there was imported the value of $13,600,000 against $3,500,000 in 1887. 
 There was a similar increase in building materials, machinery, and ag- 
 ricultural implements. 
 
 The progress of home production in agricultural products is shown in 
 the falling off of imports in 1888 as compared with 1887, as follows: 
 Food products, $1,500,000; wines and spirits, $3,100,000; tobacco, 
 $00,000. This falling off in agricultural products is made up by the 
 increased importations of manufactures of iron, agricultural implements, 
 and machinery, which increased in 1888 over 1887 $3,200,000. The ex- 
 ports, exclusive of coin and metal, in 1887 amounted $84,200,000 ; and 
 in 1888 to $99,500,000. 
 
 THE DIVISION OF TRADE. 
 
 This trade was divided among the several foreign countries as fol- 
 lows: 
 
 IMPORTS. 
 
 From England, inchiding specie $6:5,700,000 
 
 Germany.... 29, 155,000 
 
 X'"rance , '- 27,7.S1,000 
 
 J3elgium 11,177,000 
 
 United States 9,934,000 
 
 Italy 7,7:52.000 
 
 Spain 3,902,000 
 
 Prazil 2,428,000 
 
 Urnguay 8,83:5,000 
 
 Paraguay 1,724,000 
 
 Other countries 5,981,000 
 
 KXPORTS. 
 
 To France $28,141,000 
 
 ' England 17,697,000 
 
 IJelgiura 10,682,000 
 
 periuauy ,,,,.,.,.,. r,. ,,„.,,„.,,,„,„„,.,. 1:5,246,00Q 
 
 s.i3x,r>i"^a
 
 6Q TRADE AND TRANSPORTATION BETWEEN 
 
 To United States $6,668,000 
 
 Brazil 4,801,000 
 
 Spain 3, 300, 000 
 
 Italy ■- 2,734,000 
 
 Uru-uay 7,925,000 
 
 Chili 1,681,000 
 
 Other countries 6,012,000 
 
 • 
 
 For some reason the returns in detail for 1888 can not be obtained, but 
 those of 1887, so clearly analyzed by Mr, E. L. Baker, the United States 
 consul at Buenos Ayres, will give an idea of the trade. 
 
 CLASSIFICATION OF EXPORTS. 
 
 The relative value of the dift'erent classes of exports of 1887, com- 
 pared with those of 188G, was as follows: 
 
 Articles. 
 
 Products of the cattle industry. 
 
 Atrrit-ultiiral products 
 
 Industrial products 
 
 Timber exported 
 
 Minirals 
 
 Products of wild animals 
 
 Variirus exports 
 
 1886. 
 
 $52, 003, 347 
 
 8,341,336 
 
 6, 600, 257 
 
 326, 6.'3 
 
 155, 0J9 
 
 351, OJl 
 
 1, 514, 538 
 
 1887, 
 
 $55, 282, 
 
 21, 257, 
 
 4, 23!», 
 
 277. 
 
 1R6, 
 
 606, 
 
 1, 802, 
 
 Difference. 
 
 678, 755 
 915,984 
 3611. 323 
 148, 679 
 *31, 121 
 253, .537 
 432, 456 
 
 More. 
 
 t Less. 
 
 The wonderful increase in the exports of agricultural products as ex- 
 hibited in the above table is all the more gratifying, as onlj'^ a few years 
 ago it was generally proclaimed that it was impossible for the Argen- 
 tine Kepublic ever to be an agricultural or grain-producing country. 
 
 EXPORTS OF CEREALS. 
 
 The production of cereals is getting to be a most important industry, 
 the crops now not only supplying the demands of the home market, 
 which hitherto were supplied from abroad, but the surplus now every 
 year adds largely to the aggregate of exports. With the annual in- 
 crease of an agricultural immigration from Europe, it will not be very 
 long before the ])roducts of the farm will contend for first place with 
 those of the pastoral industry. 
 
 In regard to the exports of grain, the official figures are as follows; 
 
 Tona. 
 Exports of wheat 237,866 
 
 Exports of corn 361,848 
 
 Exi)ort8 of liuKeed 81,208 
 
 The shipments to the United Kingdom were as follows : 
 
 Tons. 
 
 Shipment of wheat to Great Britain 145,948 
 
 Shipments of corn to Great Britain , 177,769 
 
 Shij»ment8 of Jingepi} to Great Britain.., ^. .,,.. 62,975
 
 THE UNITED STATES AND LATIN AMERICA. 67 
 
 INCREASE OF AGEICULTUEAL POPULATljON. 
 
 There is a line of steamers running from Genoa to Buenos Ayres 
 which carries very little else than passengers, and receives from the 
 Argentine Government a subsidy per cai)ita for every immigrant car- 
 ried. Those immigrants wlio choose to go into the agricultural section 
 are given free lands and seed and $6 a month for the first j'ear, or un- 
 til the first crop enables them to become self-supporting. There are 
 also large numbers of people going to the Argentine llepublic from the 
 vast provinces of Spain, and quite a number also from the same local- 
 ity to the Republic of Uruguay, which lies across the river from the 
 Argentine Republic. A large proportion of the laboring classes and 
 mechanics in both of these countries are Spanish Basques, and those 
 people appear to find the country and the climate especially adapted to 
 their tastes. 
 
 The rush commenced about 1884, when they received about 100,000 
 people from Europe, most of them, as I said, being Italians and Span- 
 ish Basques. In 1886 the immigration had largely increased, and it 
 has been increasing rapidly ever since, until last year the number of 
 arrivals was 155,000, and during the six months of the present year the 
 arrivals numbered 150,000. These statistics do not look very large 
 beside those given in our own tables of immigration statistics, but it 
 must be understood that in the Argentine Republic the population is 
 only 4,000,000, while we have 65,000,000 here. 
 
 AGRICULTURAL ADVANTAGES. 
 
 The Argentine Republic has the advantage of having a fertile prairie 
 land near their ports, which is easily cultivated and whicli is being de- 
 veloped by the rajjidly increasing population. Lines of railroad are 
 being built through the country. The climate is temjierate and favor- 
 able to agriculture. Its farmers have the advantage over those of our 
 Northwest in that they can raise four or five crops of alfalfa or clover 
 a year. Their stock does not require shelter, therefore they do not have 
 to divert their energy in harvesting for a long winter. Owing to these 
 special advantages they are large producers of wool. They export two 
 and a half million hides per annum, which hides are of the best quality 
 shipped from any part of the world. 
 
 Fifteen years ago all the flour consumed in the River Plate countries 
 came from the United States and Chili. Kow they not only provide for 
 the increased consumption of their own country, but are exporting 
 cereals ; and the wheat fields and corn farms of the River Plate are 
 destined to rival in extent and productiveness those of our own North- 
 west. The Argentine Republic has this advantage in supplying bread- 
 stuffs to Europe : As the wheat fields of the Argentine are near the 
 ports, and, owing to the new railroads and a surplus tonnage for home- 
 ward business, the freights on products from the wheat fields of the 
 Argentine Republic to Europe is from 20 to 40 per cent, less than it ia
 
 68 TRADE AND TRANSPORTATION BETWEEN 
 
 from tlie wheat fields of the Northwest to Europe, the preseut quota- 
 tions being $6 a ton from the Argentine Eepublic and $9.50 a ton from 
 Milwaukee. 
 
 THE WOOL CLIP. 
 
 " If it be true, as it is now officially computed," writes Consul Baker, 
 " that there are 100,000,000 of sheep in the country, it will be seen from 
 the amount of shipments that the average yield is only a little more 
 than 2 pounds to the sheep. And this is wool in the dirt, two-thirds 
 of it being dirt and one-third of it being wool. In other words, taking 
 the shipments of 1887 as the average annual product of the country, it 
 is about 75,000,000 pounds of washed wool. 
 
 " The shipments to the United States were exclusively of the long 
 carpet wools from Cordoba, it being the only class that it is possible to 
 send to our market under our tariff law with profit. Our tariff, so far 
 as the clothing and finer qualities are concerned, is prohibitive. While 
 those from Australia come in, those from the Argentine Eepublic, owing 
 to the greater amount of grease and dirt they contain, are quite ex- 
 cluded, our tariff law making no allowance or reduction whatever for 
 such excess. I referred at length to this discrimination against the 
 Argentine Eepublic in fiivor of Great Britain in my annual report of 
 1886. It appears that the amount of dirt and grease in the wools of 
 the Argentine Eepublic reaches to more than 70 per cent., while the 
 wools of Australia and New Zealand have only about 50 per cent. In 
 other words, while the average yield of Argentine wools scoured is 
 only 30 per cent., that of the other countries named is 50 per cent." 
 
 " If, as I have heretofore remarked," continues Consul Baker, " the 
 mills of the United States did not use foreign clothing wools at once, this 
 would make no difference. The discrimination would be of no practical 
 significance. But they do use foreign wools, and just such classes of 
 clothing wools as the Argentine Eepublic can furnish ; and, owing to 
 the more intimate trade relations which we are striving to cultivate with 
 the latter country, we should avoid the appearance of favoring other 
 nations to the prejudice of the Argentine Eepublic." 
 
 A BOUNTY ON EXPORTS OF BEEF. 
 
 The Argentine Eepublic has recently passed a law granting a bounty 
 on the export of dressed beef. It is in the form of a guaranty of 5 
 l)cr cent, for ten years on the capital of companies formed for that pur- 
 pose, the total capital of such companies being limited to $8,000,000 iu 
 gold. 
 
 Under the regulations it appears that the entire amount to be guar- 
 antied shall not exceed $8,000,000 of national money ; that parties ap- 
 plying for the guaranty for any imrticular establishment must give full 
 details as to owners, the form of operation, the amount invested, the 
 quantity of meat it is proposed to export annually, estimates of coats 
 per ton, etc.; that all applications for the benefit of the law must be 
 made to the minister of finance j that the largest amount of capital
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 69 
 
 guarantied in any one establishment will bo $1,000,000 and the small- 
 est $500,000 ; that when two or more parties ask for the guaranty in 
 the same district the wants and particular circumstances of the district 
 will bo taken into account, so as to make the privilege as extensive as 
 l)0ssible; that where an application is granted the petitioners must 
 deposit the sum of $5,000 in the national bank as a guaranty of good 
 iaith on their part ; that all establishments which come under the guar- 
 anty must present a quarterly account of operations ; that a board of 
 inspectors shall be appointed to supervise them. 
 
 REFRIGERATOR SHIPS READY FOR THE TRADE. 
 
 Consul Baker reports several establishments are now preparing to 
 take advantage of the guaranty thus provided by the Government, and 
 that they are going into the export of fresh beef on a very large scale, 
 with special steamers duly fitted up with all necessary machinery for 
 freezing and stowing their cargoes. They will have warehouses both 
 in England and France for receiving and marketing the beef. The 
 average time of passage of these steamers will be about twenty-five 
 days. It is hardly necessary to add that the Argentines are expecting 
 wonders from the benefits which these bounties will confer upon the 
 cattle industry of the country, and are already anticipating that it will 
 now take a new departure of prosperity. 
 
 "How far the Argentines will be able to interfere with the fresh beef 
 shippers of the United States remains to be seen ; but, until new meth- 
 ods are adopted here for the preparation of beef for exportation, I do 
 not think that the law will produce any great competition. At present 
 what is known as stall-fed cattle are quite unknown in this countrj^ ; 
 all bullocks for the market are taken directly off" the grass, and, of 
 course, the meat is soft and watery. Until they discover that such 
 meat will not bear profitable exportation, and learn that dry food is 
 absolntely necessary in order to prepare fresh meat for foreign markets, 
 especially for the long distance which it has to be transported, I doubt 
 if the present movement of the Argentine Government for a 5 per cent, 
 guaranty on the exports will have any perceptible effect upon the cat- 
 tle business of the United States." 
 
 ARGENTINE TRADE WITH GERMANY. 
 
 The recent development of the trade with Germany is attracting gen- 
 eral attention. Its extent will appear from the following table : 
 
 Year. 
 
 Imports. 
 
 Exports. 
 
 Total. 
 
 1880 
 
 $2, 365, 152 
 
 3, 527, 570 
 
 4, 764, 622 
 
 7, 028, 051 
 
 8, 868, 930 
 
 7, 262, 999 
 
 8, 04-1, 875 
 12, 108, 456 
 29, 115, 000 
 
 $2, 541, 828 
 4, 004, 887 
 4, 803, 951 
 4, 823, 827 
 6, 81.3, 713 
 
 8, 512, 443 
 C, 950, 908 
 
 9, 835, 754 
 13, 246, 000 
 
 $4,906,980 
 
 1881 
 
 7, 532, 457 
 
 1882 
 
 9, 568, 584 
 
 1883 
 
 11, 851, 878 
 
 1884 ... 
 
 15, 682, 643 
 
 1885.. 
 
 1.5, 77i>, 442 
 
 1886 .. 
 
 14, 59.5, 783 
 
 1887 
 
 21, 944, 210 
 
 1888 
 
 42, 351, 000 
 

 
 70 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 This increase is iu great part, if not entirely, Mr. Baker reports, 
 owing to the trade metlioils which Germany some time since adopted 
 with reference to the Argentine Republic, being, indeed, exactly those 
 which years ago I suggested for the adoption of our own country, to 
 wit: First, quick and regular steam communication between the two 
 countries; second, the establishment of branch houses here interested 
 in the sale of German manufactures, and, third, the opening of a Ger- 
 man-Argentine bank in this city to facilitate exchange, etc. The lines 
 of goods imported from Germany during 1887 were as follows: 
 
 Articlea. 
 
 Comestibles and groceries. - 
 
 Ijiquors 
 
 Tobacco 
 
 Woven goods 
 
 Drugs and clicinicals 
 
 "VVoodiu ware, furniture, etc 
 Paper ^ 
 
 Value. 
 
 $1, 157, 204 
 686, 585 
 157, 834 
 4, 5:50, 674 
 604, 262 
 C:i7, 247 
 724, 314 
 
 Articles. 
 
 Mannfactnres of iron.. 
 
 Jewelry, etc 
 
 Crockery and glassware 
 other imports 
 
 TaftuJ imports 
 
 Value. 
 
 $1, 252, 630 
 
 359, 593 
 
 628, 230 
 
 1, 379, 883 
 
 12, 108, 456 
 
 Included in these imports are 16,725 sewing-machines and 1,074 
 pianos. 
 
 ARaENTINE TRADE WITH BELGIUM. 
 
 While the trade returns with Belgium show a gradual decrease in 
 the volume of exports to that country, there has been a progressive in- 
 crease in the amount of imports from there. These in 1880 amounted 
 to only $2,483,105 ; in 1887, they amounted to $10,947,955, and iu 1888 
 to $11,117,000. On the other hand the exports, which in 1880 reached 
 to $14,350,458, amounted to only $12,111,531 in 1887. The total volume 
 of trade, however, which amounted to $16,839,565 in 1880 has now 
 reached to $27,799,000. The following are the imports of 1887 : 
 
 Articles. 
 
 Groceries and comestibles 
 
 Liquors 
 
 Woven goods, etc 
 
 Paper 
 
 Iron and iron goods 
 
 Chemicals 
 
 Value. 
 
 $1, 60S, 669 
 474, 356 
 
 1, 052, 007 
 .')03, 084 
 
 3, •74, 786 
 188, 373 
 
 Articlea. 
 
 Boots and shoes 
 
 Stone, glassware, etc 
 All other articles ... 
 
 Total 
 
 Value. 
 
 $373, 084 
 952, 402 
 830, 194 
 
 10, 947, 955 
 
 Among the imports were 13,198 tons of iron beams and joists, amount- 
 ing to $527,928, articles which are here rapidly superseding the use of 
 timber in house-building. In the item of woven goods is included ready- 
 made clothing, which amounted to $482,971.
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 71 
 
 ARGENTINE TRADE "WITH FRANCE. 
 
 The trade of the Argentine Republic with France shows a most 
 wonderful progression, the amount having more than doubled in the 
 last ten j^ears, while the imports have more than trebled. I give the 
 figures below. 
 
 Tear. 
 
 Imports. 
 
 ExportB. 
 
 ToUl. 
 
 1880 
 
 $8, 292, 872 
 10, 279, 793 
 12, 180, 824 
 15,418,997 
 
 16, 785, 590 
 14, 54.5, 193 
 
 17, 002, 038 
 22, 743, 550 
 27, 781, 000 
 
 $10,10.3,202 
 16, 654. 403 
 16, 398, 992 
 
 21, 041, 495 
 22,518,371 
 24, 164, S29 
 
 22. 342, 183 
 24, 871, 354 
 28, 141, 000 
 
 $24, 396, 104 
 
 1881 
 
 26,934,196 
 
 1882 
 
 28,585,816 
 
 1883 
 
 36, 460, 492 
 
 1884 •■ 
 
 39, 303, 961 
 
 IJ-So 
 
 30,710,024 
 
 1886 
 
 39. 344, 221 
 
 1887 
 
 47, 614, 904 
 
 1888 
 
 55, 922. OUO 
 
 
 
 The imports of 1887 consisted of the following lines of goods : 
 
 Articles. 
 
 Groceries and comestible? 
 Wines and other liquors.. 
 
 Woven goods 
 
 Ready-made clothing 
 
 Chemicals, etc 
 
 Furniture 
 
 Value. 
 
 $3,154,771 
 6, 825, 544 
 3, 172, 902 
 2, 079, 555 
 971, 705 
 542, 597 
 
 Articles. 
 
 Paper etc 
 
 lion ware..... 
 
 Jewelry 
 
 other imports 
 
 Total ... 
 
 Value. 
 
 $470, 781 
 1, 058. 012 
 1, 463, 085 
 3, 993, 298 
 
 22, 743, 550 
 
 ARGENTINE TRADE WITH GREAT BRITAIN. 
 
 If the trade with France shows a remarkable progression, that with 
 England presents a still more surprising increase. In the last eight 
 years it has quadrupled, since from $i7,272,193 in 1880, it has reached 
 to $51,864,220 in 1887, and $81,397,000 in 1888. In 1880 the imports 
 from Great Britain amounted to only $12,103,400; in 1887 they were 
 $34,779,211 ; in 1888, $63,700,000. In 1880 the exports to Great Britain 
 were $5,168,732 ; in 1887 they were $17,085,001, and in 1888 $17,697,000. 
 The imports from Great Britain were as follows : 
 
 Articles. 
 
 Live-stock 
 
 Groceries and comestibles 
 
 Liquors 
 
 Woven floods 
 
 Eoady-niade clotbind 
 
 Chemical.s and drugs 
 
 Furniture 
 
 Paper 
 
 Value. 
 
 $200, 160 
 
 1, 297, 330 
 
 470, 556 
 
 12, 50,5, 481 
 
 2, 1.50, 035 
 
 1,227, 134 
 
 2-J7, 587 
 
 328, 890 
 
 Articles. 
 
 Boots and shoes 
 
 Iron and iron utensils ... 
 
 Jewelry, etc 
 
 Glass and crockery ware 
 
 Stone coal 
 
 All other imports 
 
 Total imports 
 
 Value. 
 
 $304, 54a 
 
 10, 088, 224 
 
 515,717 
 
 860, 516 
 
 3, 854, 422 
 
 762, 620 
 
 34, 779, 219
 
 72 
 
 TRADE AND TRANSPORTATION BETWEEN 
 ARGENTINE TRADE WITH THE UNITED STATES. 
 
 The trade with the United States has grown, l)ut not in these propor- 
 tions. The following are the returns : 
 
 Year. 
 
 Imports. 
 
 Exports. 
 
 Totel. 
 
 1880 .a 
 
 $3, 224, 743 
 4,268,110 
 5, 094, 764 
 4, 933, 054 
 7, 454, 832 
 7,006,719 
 7, 673, 284 
 
 11,004,553 
 9. 934, 000 
 
 $5, 126, 440 
 4, 035, 714 
 
 2, 956, 582 
 
 3, 510, 574 
 
 4, 064, 848 
 
 5, 563, 841 
 3, 580, 406 
 
 5, 938, 808 
 
 6, 668, 000 
 
 $8, 351, 183 
 8. 323, 824 
 
 1881 
 
 1882 
 
 8, 051, 346 
 8, 443, 628 
 
 1883 
 
 1884 
 
 11,519,680 
 
 1885 
 
 12, 570, .560 
 
 1886 
 
 11,253,690 
 
 1887 
 
 16, 943, 361 
 
 1888 
 
 16, 602, 000 
 
 
 
 " Considering how unfortunately our export trade is handicapped," 
 writes Consul Baker, " in lacking all the facilities for a close and inti- 
 mate intercommunication, without steam-ship lines, without banking ad- 
 vantages, without distinctive American business houses here, the returns 
 for the last year are very satisfactory. The wonder is that the figures 
 are so large. While it can not be said that the trade presents any new 
 features, yet it shows a very considerable increase in its proportions; 
 and while the great bulk of our shipments to the river Plate still con- 
 sists of crude articles and raw materials of prime necessity which can 
 not be obtained in other markets, the returns show the beginning of a 
 trade in other lines of goods, which promises better things for the 
 future." 
 
 The following table presents a comparison of the shipment of leading 
 articles for the last four years : 
 
 Articles. 
 
 Turpentine 
 
 Starch 
 
 Afiricultnral implements.. 
 
 Lamps and gas-nxtures 
 
 Lumber 
 
 Furniture 
 
 Cotton floods 
 
 Hardware, etc 
 
 Lard 
 
 Kerosene 
 
 Railway machinery, etc 
 
 Dmgs, chemicals, etc 
 
 Hempen and woolen goods 
 Tobacco, etc 
 
 $34, 
 
 49, 
 136, 
 
 66, 
 ,817, 
 
 92, 
 178, 
 240, 
 
 40, 
 866, 
 834, 
 
 62, 
 189, 
 208, 
 
 1885. 
 
 1886. 
 
 $25, 152 
 
 $48, 933 
 
 45, 438 
 
 41,071 
 
 611,002 
 
 4,55, 4.50 
 
 80, 590 
 
 69, 404 
 
 3, 453, 719 
 
 3, 352, 620 
 
 129, 792 
 
 289, 246 
 
 200, 697 
 
 238, 716 
 
 226, 073 
 
 542, 824 
 
 33, 731 
 
 55, 958 
 
 341,891 
 
 707, 220 
 
 392,119 
 
 165, 020 
 
 82, 224 
 
 342, 658 
 
 165, 534 
 
 417, 207 
 
 98, 542 
 
 77, 856 
 
 1887. 
 
 $110,546 
 42, 879 
 
 580, 891 
 70, ,508 
 
 6, 117, 847 
 248, 396 
 36C, 695 
 .562, 447 
 150,210 
 
 1,109, .540 
 248, 940 
 360, 118 
 171,455 
 100, 703 
 
 THE INCREASE IN OUR EXPORTS. 
 
 It will bo observed that the great increase in our exports has been 
 in lumber and kerosene, the articles for which the Argentine Republic 
 is entirely dependent upon the United States; but the steady growth 
 of our trade in agricultural implements and machinery is deserving of 
 notice. The increase in these lines is entirely owing to the fact that 
 we furnish far better or more serviceable articles than can be obtained
 
 THE UNITED STATES AND LATIN AMERICA. 73 
 
 in the markets of Europe; and, after trial, ours are forcing themselves 
 upon the attention of this country in spite of the fact that, owing to 
 superior finish and style, it may cost a little more to put them down 
 here. 
 
 " The increase which we have seen in the trade between the United 
 States and the Argentine Republic is not the result of any of the modern 
 methods usually adopted for the promotion of international commerce. 
 On the contrary, whatever development there is has taken place in spite 
 of the fact that we are entirely lacking in all the facilities now employed 
 by the commercial nations of the world for the establishment and main- 
 tenance of trade. After many years of persistent discussion," writes 
 Mr. Baker, "we are still as far as ever from even the prospect of steam 
 navigation with the Argentine Republic. Not a single regular merchant 
 steamer arrived here from the United States during the past year, and 
 our trade continues to be dependent upon the slow and uncertain me- 
 dium of sailing vessels. We are still, also, without any proper bank- 
 ing facilities with the Argentine Republic. All our exchange and com- 
 mercial business continues to be transacted through English banking 
 houses, thus increasing the charges and complicating the settlement of 
 balances. And worse than all, as I have already stated, we are quite 
 without distinctive American importimg houses in this city, our entire 
 trade being thus made to depend, not upon our ability to supply any 
 given line of goods, but upon the question whether it will not pay the 
 importing merchants better to buy an inferior article in Europe rather 
 than a superior one in the United States." 
 
 AMERICAN SAMPLE HOUSES. 
 
 "The American sample houses, which have been lately established 
 here, are, I believe, doing very well, and exhibit no little energy and 
 enterprise in pushing our manufactures. Indeed, it is in part owing to 
 their eflbrt to procure orders that our imports during the last year have 
 footed up so well, but it is a fact that there is at the present time but a 
 single distinctive American importing house in the city of Buenos 
 Ayres. There are a number of large and wealthy firms that are doing 
 an immense business with the United States, and probably ofler our 
 goods on the best terms possible ; but they are either English or Ger- 
 man houses, whose most intimate connections are with Europe, and 
 which do business with the United States simply because it pays them 
 well to do so."
 
 74 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 WHY WE ARE SO FAR BEHIND. 
 
 The reason why tbe United States is so far beliintl in the trade of the 
 Argentine Republic is found in the following table for 1887: 
 Arrivals and departures from each country. 
 
 To and from — 
 
 Arriv.ils. 
 
 Sailing vessels. 
 
 steamers. 
 
 Germany 
 
 Asia 
 
 West Indies . 
 
 j;(li;iiiBi 
 
 J!i;i/.il 
 
 Canada 
 
 Chili 
 
 Spain 
 
 United States. .. 
 
 France 
 
 Norway 
 
 Paiaj;nay 
 
 Glial llritain... 
 
 Sweden 
 
 Uruguay 
 
 Iialy 
 
 I'ortusal 
 
 Other Countries. 
 
 Total 
 
 No. 
 41 
 
 4 
 31 
 92 
 44 
 
 48 
 
 310 
 
 9(i 
 
 7 
 
 247 
 
 602 
 
 1 
 
 4, 030 
 
 20 
 
 2 
 
 42 
 
 Tons. 
 
 17, 861 
 
 2,620 
 
 934 
 
 13, 827 
 
 18,956 
 
 28, 043 
 
 529 
 
 22, 517 
 
 198, 671 
 
 39, 370 
 
 3,689 
 
 14,219 
 
 333, 719 
 
 ■^9 
 
 294,910 
 
 8,461 
 
 1,505 
 
 6,181 
 
 No. 
 151 
 
 130 
 184 
 
 3 
 
 43 
 
 7 
 172 
 
 1, 269 
 363 
 
 4,186 
 
 5, 694 1, 010, 731 
 
 6,607 
 
 Tang. 
 211,211 
 
 148, 020 
 30, 990 
 
 3,758 
 
 53, 170 
 
 6, 762 
 
 264, 968 
 
 391, 217 
 725, 333 
 
 1,401,948 
 163,893 
 
 3, 460, 870 
 
 The statistics of the arrivals and departures of sailing vessels and 
 steamers at the ports of the Argentine Republic show that of the 5,094 
 sailing vessels arriving but 74 belonged to the United States, and of 
 the sailing vessels departing but GO belonged to the United States ; the 
 difference of 14 representing the number of sailing vessels which were 
 sold upon their arrival there. 
 
 THE STEAMERS OF ALL NATIONS BUT OURS. 
 
 But the most significant fact is that in the table of statistics showing 
 the nationality of steamers the United States is blank. Not one 
 steamer bearing the flag of the United States arrived at or departed 
 from the ports of the Argentine Republic during the last year. Buenos 
 Ayres is connected with Europe by seventeen different steam-ship com- 
 panies, controlling twenty-three different lines. The transatlauticliues 
 are as follows : 
 
 From France : 
 
 Les Messageries Maritimea. 
 Lea Chargenrs R6unis. 
 Lert Transports Maritimes. 
 La ligne CyprioTi Fabre et Cie. 
 Allan Line. 
 
 From England : 
 
 The Royal Mail. 
 
 Allan Line. 
 
 Houston & Co. 
 
 Lamport & Holt. 
 
 The Waliord Line. 
 
 The Pacific Steam Navigation Co. 
 
 lies Ghargcurs R<iunis. 
 
 From Italy : 
 
 The Rubattino Co. 
 
 Tlie Yeloce. 
 
 Tlie Navigazione Geuerale. 
 
 From Spain : 
 
 La Linea EspaDola. 
 
 The Marquis de Campo's Line. 
 
 From Germany : 
 
 The Nord Deutscber Lloyd. 
 The Siid-Amerioaniache.
 
 THE UNITED STATES AND LATIN AMERICA. 75 
 
 During the last year G62 sailing vessels arrived at Buenos Ayres from 
 Great Britain, which is about 13 a week, and 3G3 steamers, or one 
 for every day in the year except Christmas and New Year's. Two 
 hundred and twenty-one steamers left the Argentine Republic for France 
 during the same year, and 140 for Germany, but only 7 steamers ar- 
 rived from the United States, and they were all tramps, representing 
 only 6,162 tons. 
 
 Nearly every one of the lines of steamers mentioned above are sub- 
 sidized by the Governments under whose flag they sail, and before 
 the end of the present year there will be at least three more lines estab- 
 lished. The travelers and shippers in Europe always have the choice 
 of seven or eight steamers a week for the Argentine Republic, but there 
 is no way to get there from this country except by way of Europe or 
 by the Brazil line, which sails from New York once a month. This is a 
 very strange situation when we consider the fact that the arrivals at the 
 port of Buenos Ayres last year included 6,607 steamers, which is 127 a 
 week, or 18 a day. It is doubtful whether as many steamers arrive at 
 the port of New York or Liverpool, and Buenos Ayres is thus placed 
 in the front rank of the maritime cities of the world. 
 
 A TERY CLEAR CASE. 
 
 The reason for the commercial estrangement between the United 
 States and the River Plate is thus very plain. Trade is necessarily 
 dependent upon transportation facilities, and the cheaper and more 
 convenient the greater the stimulus to commerce. The company that 
 gives the lowest rates gets the largest cargo. This is the reason why 
 the three great commercial nations of Europe enjoy a monoi^oly of the 
 South American carrying trade, and it is divided between them in pro- 
 portion to the encouragement the respective Governments have given to 
 capitalists to furnish transportation facilities. Having produce to sell 
 and produce to buy England, France, Germany, Spain, and Italy have had 
 the wisdom and prudence to encourage private capital by government aid 
 to furnish the ways and means necessary to transact the business. Even 
 the little 7 per cent, of its imports which the Argentine Republic takes 
 from the United States is carried to that country in foreign ships. New 
 York is nearer to the ports of Argentine than Europe, but our total 
 trade, imports and exports, amounted to only $12,544,712, because Eng- 
 lish, French, German, Spanish, and Italian steamers are so heavily sub- 
 sidized that they can control freights. 
 
 ' THE HOUSTON CONTRACT. 
 
 Last year the Argentine Government entered into a contract with 
 Mr. Robert P. Houston, of England, by which, according to an English 
 newspaper which I quote : 
 
 The latter agrees to construct ten steamers of at least 4,000 tons burden and 16 knots 
 per bottr eaeb, to ply between the north of Europe and the ports of the Argentine Re-
 
 76 TRADE AND TRANSPORTATION BETWEEN 
 
 public, and four steam launclies for fmij^rant service in Europe. Also four steamers 
 to ply between the United States and the ports of the Argentine Republic. 
 
 The principal conditions of the agreement are the following : The Government of 
 the Argentine Republic gnaranties a loan of 5 per cent. i>ev annum on $5,750,000 for 
 the European service, and 5 per cent, per annum on $1,800,000 for the United States 
 lino. The contractor for the European service agrees that these steamers shall always 
 flj' the flag of the Argentine Republic, and that in case of war the Government shall 
 have the option of buying them at a sum not greater than their original cost. Ex- 
 ceptionally good accommodations are to bo provided for emigrants, who shall come 
 from England, Sweden, Norway, Germany, Denmark, Netherlands, Belgium, France, 
 and any other country indicated by the Argentine Government. 
 
 In case the revenues of the contracting company exceed 5 per cent, it will refund 
 to the Government from this excess the sums which it has received as guaranties, and 
 in case the revenues reach 10 per cent, the excess is to be divided between the Gov- 
 ernment and the company. The guaranty terminates at the end of eighteen years. 
 
 It is stipulated that in going from Europe the steamers must not call at any port 
 except Montevideo and places where it is customary to take coal, but on the return 
 trip they may call at anj' port. One of the steamers must arrive in the Argentine Re- 
 public at least once a week. Passengers and freight rates are to be fixed by an agree- 
 ment between the Government and the corai)any. The company also agrees to furnish 
 each steamer with a refrigerator capable of holding at least throe thousand dressed 
 Kheep or an equivalent amount of beef. The service will commence in February 
 next, and by the following November all the steamers must be running. 
 
 The United.States service will be performed imder very similar conditions as the 
 European service, except that this service will begin within six months from Jan- 
 uary last, and that no refrigerators are reqnired to be placed on these vessels. 
 
 For some reason which has not been explained Mr. Houston has 
 failed to carr y out his contract, but it is said that he expected to secure 
 an additional su bsidy from the United States when he undertook this 
 contract. 
 
 COST OF MAINTAINING A LINE. 
 
 It is estimated by those familiar with the cost of maintaining a line 
 of steamers between the United States and the Argentine Kepublic 
 that a subsidy of $20,000 for each round trip would bo necessary to se- 
 cure them against loss. The Argentine Kepublic, with only a popula- 
 tion of 4,000,000, would be willing to pay half of this sum if the United 
 States Government will pay the other half. 
 
 OFFER OF THE ARGENTINE GOVERNMENT. 
 
 The Argentine Government, understanding the importance of a line 
 of steamers between this country and the United States, and anxious 
 lot contribute to its establishment, issued a decree so far back as 1865 
 granting a subsidy of $20,000 a year to the first line that would solve 
 the problem. This sum not being found adequate to meet the expenses 
 of a regular line of steamers, at least until the traffic between the two 
 countries had assumed larger proportions, the law remained a dead 
 letter. During the administration of General Sarmieuto the matter 
 was again taken into consideration without its leading to any results, 
 and it was only during the last year of the presidency of Dr. Avellaneda
 
 THE UNITED STATES AND LATIN AMERICA. 77 
 
 that an American company volunteered to make a contract to establish 
 monthly steamers against a subsidy of $100,000 a year. The executive 
 power sent a message to Congress to this effect, but it was never dis- 
 cussed ; the actual President, General Koca, renewed its request to Con- 
 gress, which is still in abeyance. 
 
 STKAM-SIIir COMMUNICATION WITH THE UNITED STATES. 
 
 Translated troni the luossago of the executive power iu 1879 to tbe National Congress of the Argen- 
 tine llepublic.J 
 To the honuiiihh' National Congress : 
 
 It was always a jMsrsistciit design of the public powers of the nation to establish 
 the direct navij^atiou between the ports of the llepublic and the United States, in 
 order to thus complete our system of exterior comnuuiicatiou. 
 
 In 18(55 the Congress passed a law granting a subsidy for this object. 
 
 The President, Sarmiento, announced in one of his annual messages that this sub- 
 sidy would at last be applied, and the actual administration renewed for two years 
 this business, asking Congress to augment th^ subsidy granted, and which had 
 proved insufiQcient, when all was suspended, because the company that has under- 
 taken this enterprise could not obtain from the United States Senate the pecuniary 
 auxiliary that was indispensable for its attempt. 
 
 For the first time, after an expectation so long delayed, a responsible company di- 
 rected by the fiim that constructs vessels of the best reputation in the United States, 
 and it has conditions to realize the communication that has been sought with so 
 much reason. 
 
 The executive power considers it useless to dilate on the considerations upon the 
 advantages of a direct communication with the most powerful, commercial, and free 
 nation that has best realized the forms of government that we have accepted, follow- 
 ing ])recisely its example. This other market that opens itself is a new interchange 
 for the men, the ideas, and the products. 
 
 But the conditions of the enterprise are onerous, and the executive power complies 
 with its duty in submitting to the honorable Congress in order that it resolve itself 
 upon the subject. 
 
 The enterprise asks 10,000 francs monthly, and the maintaining of this subsidy for 
 ten years. After divers conferences with the minister of the interior it has reduced 
 its conditions to 100,000 francs per annum, the subsidy lasting seven years. 
 
 The executive power incloses with this message all the antecedent writings of the 
 business. 
 
 May God guard the honorable Congress of the nation. 
 
 N. AVELLENADA. 
 B. LORRILLA. 
 PROPOSITION OF THE COMPANY. 
 
 The Argentine Government, in view of the services which this line lends, that will 
 be the iirst step in uniting the Republic with the grand North American Continent, 
 will pay to Messrs. John Roach & Son the sum of $S,000 — eight thousand hard dollars, 
 gold — for every round voyage for the term of eight years, paid on the return of each 
 steamer from the round trip, with a corres[>onding receipt from the administration of 
 post-ofhces on its having duly delivei'ed the mails. 
 
 The steamers will be subject to the laws and ordinances that exist in the Republic 
 for steam-packets; they shall carry the correspondence of the Argentine Republic to 
 whatever point at which they touch without any remuneration ; making a rebaie of 
 3oJ per cent, in prices of passage of the immigrants, and 50 per cent, on the passage 
 of each employ6 of the Government who can justly show that his voyage is on ac- 
 count of the Government. They will also make a rebate of 25 per cent, on whatever 
 ffeiglit tUejr na^y carry pu heUi^lf of tUe Gpverowettt, such aa materials of war, etc,
 
 78 TRADE AND TRANSPORTATION BETWEEN 
 
 MESSAGE OF THE PRESIDENT. 
 
 Translation from tho message of tbo executive power to honorable National Congress of the Argen- 
 tine Republic, 1882.] 
 
 To the honorable Congress of the na ion : 
 
 Our commerce with the United States of North America has taken a favorable de- 
 velopment that it is convenient to encourage by menus of the establishment of a reg- 
 ular line of communication. 
 
 This necessity has been felt since some time past, and a law of 1S65 destined the 
 sum of |i'20,0U0 (fuertes) to subsidize the first line of steamers that was established 
 between the ports of Buenos Ayres and New York. Tho executive power does not 
 believe it necessary to enlarge in considerations upon this subject, that, if promjitly 
 favored, is bound to influence in a most powerful manuer the national commerce. 
 
 The interests of our country will be benefited by a more intimate contact with the 
 great producing and manufacturing nation of North America, in whose markets the 
 Argentine products will find easy and abundant collocation. 
 
 An enterprise has solicited of the executive power its consent for a subsidy with 
 the object of establishing this line of communication, and ho remits to your honorable 
 body the petition presented by it. 
 
 In view of the preceding considerations, the executive power solicits of your hon- 
 orable body the sanction of the accompanying project. 
 
 May God guard your honorable body. 
 
 ROCA. 
 
 Bernaudo de Irigoyen. 
 The Senate and House of Deputies, etc. : 
 
 Article 1. It authorizes the Executive power to grant a sum not exceeding ninety- 
 six thousand dollars (fuertes) annually, the subsidy otfered by the law of the 18th of 
 August of 1865 to a line of steam navigation between the ports of Buenos Ayres and 
 New York. 
 Article 2. Communicate, etc. 
 
 Irigoyen. 
 
 I am tempted to make some furtber extracts from the last report of 
 Mr. Edwaid L. Baker, United States consul at Buenos Ayres, who has 
 no superior in the service and whose dispatches to the Department are 
 unequaled in their interest and importance. Speaking of the jirogress 
 of the country, he says : 
 
 PEACE AND progress. 
 
 What greatly adds to the business impulse and spirit of development which now- 
 adays more than ever characterizes the people, is tho political quiet which pervades 
 the country. Revolutions and attempts at revolution are matters of the past. All 
 through the extent of tho Argt>iitine Republic the guaranties of tho constitution now 
 liave the sanction of the i>eople and the laws are permitted to be peacefully executed. 
 Labor is more and more respected and honored, and capital finds ready investment 
 with more confidence than ever before. No one any longer thinks of or fears internal 
 commotions or civil disturbances. The Argentine citizen's lovo of country no longer 
 manifests itself by trying to get forcible possession of the Government, but rather by 
 seeking to increase tho wealth and production of the Republic, 
 
 I'HE ARGENTINE POPULATION. 
 
 It appears from recent investij;ations by M. Galarce, a French writer, 
 that there are 257 English houses in the city ajad 402 German. The
 
 THE UNITED STATES AND LATIN AMERICA. 79 
 
 Eiigiisli capital employed afjgregato.s $121,952,000, the fiennan $16,- 
 010,070. The Italians outnumber all other forei<j:n uationalities, even 
 surpassing the Argentines themselves. The following figures show it : 
 There are 7,729 Italian firms doing business, with a capital of $150,- 
 584,730 J Argentine, 1,357 firms, with $241,700,550 capital. 
 
 As traders and merchants the Spanish far outnumber the French, the 
 Spanish numbering 2,223, with $74,031,930 capital ; the French 1,870. 
 with a cajiital of $32,840,040. The French monopolize the cafes and 
 baaars ; the Spanish the more substantial grocery and general supply 
 trade. Jewish merchants are almost unknown here. United States 
 investment in trade figures very low Indeed, amounting in all to but 
 26 business ])laces, with a capital reckoned at $2,189,900. 
 
 In capital the Argentines stand foremost, the Italians next, and the 
 English third ; but as regards numbers the Italians are first, Spanish 
 second, French third, Argentines fourth, Germans fifth, and the En- 
 glish sixth. So it appears, while the English stand sixth in number 
 they stand third on the list of capitalists. The Germans not only out- 
 number the English, but with much less capital transact far greater 
 business. Mr. Galarce accounts for this result quite sensibly — that the 
 Germans act on their own volition according to emergencies, while 
 English enterprise is conducted more cautiously by trading syndicates 
 abroad, chiefly located at Manchester and Liverpool. The Germans are 
 driving the English steadily and surely ; they feel it themselves and 
 realize they must go or change their tactics. Our traders, more ener- 
 getic, less timid, and thoroughly progressive, could hold the Germans 
 in check, but the English are too conservative in their present mood to 
 go through the struggle successfully. 
 
 THE ENORMOUS IMMIGrRATION. 
 
 In a recent dispatch to the Department of State, Mr. Hanna, the 
 United States minister at Buenos Ayres, said: 
 
 The immiuration from European countries to these shores, hitherto chiefly Italian, 
 Spanish, and French, is now rapidly setting in from other quarters — England, Scot- 
 land, Ireland, Holland, and Germany. It is marvelous, indeed, in what gi-eat num- 
 bers they are arriving. This element of new-comers will work a great change in 
 agricultural development. 
 
 All this immigration is assisted by the Government by payment of the passage of 
 the immigrants. In this way they are easily persuaded to leave the overdone Old 
 AVorld for the brilliant outlook of New. The amount the Argentine Government 
 paid last mouth for immigrants' passage is reckoned at $500,000. This, kept up 
 throughout the year, would reach $0,000,000. Already this vast influx is beginning 
 to tell on the volume of grain exports. Last year the country shipped 44.5,000 tons 
 of corn ; this year it will go above 2,000,000 tons. In addition to the vast sum paid 
 out by the Government in the encouragement of immigration there is another great 
 outlay. The Government lauds the immigrant, keeps him and his family some days 
 at the Immigrants' Hotel, pays his passage in river steamers'and on railroad trains to 
 reach the colonies or join the farms or estancias where emploj^ment has been secured 
 for him. This probably costs the Gcvernment fully as much more as the cost of the 
 ocean passage, say $12,000,000 in all, paid in enconr3,gement of immigration in one 
 year alone.
 
 80 TRADE AND TRANSPORTATION BETWEEN 
 
 In tlio vast fleet of merchant ships and great steamers coming here to trade from 
 every European port the United States flag is rarely seen, but it is hoped and be- 
 lieved that the ])olicy of the new administration on the subject of an encouraged 
 steam navigation between the United States and the South American ports will suc- 
 cessfully solve this embarrassment. 
 
 POPULATION OF BUENOS AYRES. 
 
 Tlie population of Buenos A;^rres on the 15tb day of September, 1887, 
 when the census was taken, reached 433,375, and the growth since has 
 been greater than before. 
 
 The growth of population and trade is shown by the increased busi- 
 ness transacted by the postal service, the increase in letters duriug 
 the last five years being more than 92 per cent., in printed matter over 
 151 per cent., and in telegrams about 60 per cent. In 1884 17,427,431 
 letters passed through the Argentine post-office, and in 1888 the total 
 was 33,554,841. In 1884 10,625,218 packages of printed matter passed 
 through the post-office, and in 1888 27,974,999 packages. 
 
 THE RAILWAY SERVICE. 
 
 The statistics of the railway service show a similar increase. In 
 1878 the railway systems traveled 2,261 kilometers, and in 1887 it 
 reached 7,415 kilometers. In 1878 the number of passengers carried 
 was 2,644,022, and in 1887 8,229,150. In 1878 31,823 tons of merchan- 
 dise was carried, and in 1887 3,732,709 tons. 
 
 There continues to be a great movement through the Argentine Ee- 
 I)ublic in the construction of railways. So great are the number of 
 new concessions granted by the national Congress and by the different 
 provincial legislatures, that I find it impossible to name them all. Up 
 to the meeting of the last Congress there were national concessions for 
 several different lines, of w^hich thirteen enjoy the guaranty of the gov- 
 ernment. These guarantied lines represent a total length of 7,961 kil- 
 ometers (4,975 miles), and the aggregate length of the other lines 1,272 
 kilometers (795 miles), making a total of 5,770 miles. 
 
 The last session of the Argentine Congress, in response to the recom- 
 mendations of the President, made a very firm stand agaiust the grant- 
 ing of any more charters or concessions with government guaranties ; 
 and the fact that numerous applications were made for new lines with- 
 out such guaranties shows that the condition of the country is now so 
 promising, that capital is ready to embark in such enterprises without 
 government aid. 
 
 THE BANKS OF THE ARGENTINE REPUBLIC. 
 
 A dispatch, dated the 26th January last, has been published from Mr. 
 G. Jenner, Her Majesty's charge d'affaires at Buenos Ayros, inclosing 
 a translated abstract of an article which appeared in the Buenos Ayres 
 Haodels-Zeitving, giving a brief account of the banking s^n^ otlier
 
 THE UNITED STATES AND LATIN AMERICA. 81 
 
 financial companies at work in the Argentine Eepablic. '' The following 
 is a co])y of the translation in question : 
 
 The following is a list of the national and provincial banks of the Argentine Repub- 
 lic, with the authorized, but not the paid-up, capitals, as the latter can not as yet be 
 ascertained with complete accuracy. The majority of these banks, as is already 
 known, are of quite recent foundation, having sprung hito existence in accordance 
 with the provisions of the free-banking act of 1887. Under that act large additions 
 have been niatlo within the last few months to the capital of all those already in 
 existence. In the case of the national bank, the central government is a lar'>-e share- 
 holder, and most of the provincial governments hold a considerable number of shares 
 in the bank of their respective provinces : 
 
 Capital (paper dollars). 
 
 Provincial Bank of Buenos Ayres .'. ^ 50 OOO 000 
 
 National Bank 43,273,400 
 
 ProA'incial Bank of Cordova „ 25 000 000 
 
 Provincial Bank of Santa F6 20 000 000 
 
 Provincial Bank of Salta __ 10,000 000 
 
 Provincial Bank of Eutre Rios 9 ooo 000 
 
 Provincial Bank of Tucuman » (] qoO 000 
 
 Provincial Bank of Santiago del Estero 6 000 000 
 
 Provincial Bank of Mendoza 5,000 000 
 
 Provincial Bank of Catamarca 5 ooO 000 
 
 Provincial Bank of Corrientes , 5 ooO 000 
 
 Povincial Bank of La Rioja 4,000 000 
 
 Provincial Bank of San Juan 3^ 000 000 
 
 Provincial Bank of San Luis __ 2 500 000 
 
 Total 193,773,400 
 
 Next to the State banks are to be considered the joint-stock banks, -which are di- 
 vided into two classes ; first, those whose nominal capital is in gold, as below : 
 
 Capital (gold dollars). 
 
 Loudon and River Plate Bank 10 080 000 
 
 Santa F6 Territorial and Agricultural Bank 10,000 000 
 
 River Plato Society of Bills, Loans, and Agency 6^ 300,000 
 
 Englisli Bank of the River Plate 5 040 000 
 
 English Bank of Rio de Janeiro 5 040 000 
 
 French Bank of the River Plate y^ 000 000 
 
 Bank of Italy and the River Plate 3,050 000 
 
 German Transatlantic Bank 1 250 000 
 
 Total 43,760,000 
 
 And, secondly, the far more numerous class, mostly of recent establishment, whose 
 nominal capital is computed in paper dollars aa follows : 
 
 Capital (paper dollars). 
 
 The River Plate Agricultural and Commercial Bank 20, 000, 000 
 
 Building Bank of River Plate 20, (.00, 000 
 
 Mortgage Bank of the Capital 20,000,000 
 
 South American Bank 10, 000, 000 
 
 Stock Exchange Bank 10,000,000 
 
 Territorial Bank of La Plata 10,000 000 
 
 Mercantile Bank of La Plata 8, 000, 000 
 
 Argentine Colonization Bank 8,000,000 
 
 Bank of Spain and Rosario de Sante V6 6,000,000 
 
 Credit Bank 5,000,000 
 
 S. Ex. 54 G
 
 82 TRADE AKD TRANSPORTATION BETWEEN 
 
 Capital (paper dollars). 
 
 New Italian Bank of River Plate 5,000,000 
 
 Nutioual Colonization Bank 5,000,000 
 
 Commercial Bauk of La Plata 5,000,000 
 
 Industrial and Commercial Bauk 5,000,000 
 
 Commercial Bank 3,000,000 
 
 Spauuish Bankof tke River Plate 3,000,000 
 
 Bank of Buenos Ayres 3,000,000 
 
 Bnildinj; Bauk of Cordova 3,000,000 
 
 Industrial and Building Bank 3,000,000 
 
 Real Property Bauk '2,000,000 
 
 Popular Colonization Bank 2, 000, 000 
 
 Argentine Bank 1,085,000 
 
 Bank of Recoveries and Loans 1,000,000 
 
 Building Bank of Santa F6 1,000,000 
 
 Discount Bauk 1,000,000 
 
 National Credit Bank 1,000,000 
 
 Total 161,085,000 
 
 TOTAL BANKING CAPITA!,, 
 
 The joint capital of the banking institutions of the Argentine Republic, therefore, 
 amounts to about 420,000,000 paper dollars (or about £56,000,000), viz: 
 
 Dollars. 
 
 State banks 193,773,400 
 
 Private banks (with gold capital) 65,000,000 
 
 Private banks (with paper capital) 161,085,000 
 
 Total '. 419,858,400 
 
 If we put the average net return of these establishments at only 12 per cent, the 
 amount of annual profits would be about 50,000,000 paper dollars (about £6,660,000). 
 The foregoing figures are, moreover, constantly subject to increase, not only owing 
 to the foundatiou of new companies, but also to the development of the existing in- 
 stitutions. 
 
 THE OPITs'ION OF AN EXPERT. 
 
 There is no man in the United States more familiar with the Argen- 
 tine Republic, its conditions, and its commerce, than Mr. William H. 
 T. Hughes, of the firm of James E. Ward & Co., Xew York City, and 
 he, in reply to a series of inquiries addressed to him, writes as follows : 
 
 New York, ScjJtemher 1'2, 1889. 
 My Dear Sir: In reply to your favor of the 29th of July last, which I must apol- 
 ogize for not answering before, I would repeat what I verbally said to you some time 
 since, that, as regards Brazil, our mutual friend, Mr. Charles R. Flint, is much better 
 able to give you information than I am. As to the Argentine Republic, I had in- 
 tended to answer your letter more fully than I shall be able to, but, owing to press 
 of business, it has been impossible for me to give it the required time. 
 
 OUR EXPORTS TO BUENOS AYRES. 
 
 In reply to your first question, I would say that the exports from the United States 
 to the Argentine Republic consist of all classes of agricultural implements, all kinds 
 of hardware, lumber in every sense of the word, white piue, pitch pine, oak, ash, wal-
 
 THE UNITED STATES AND LATIN AMERICA. 83 
 
 nut, and spruce, ])ctruleuiu in all its products, rosin, lard, starch, cotton duck, and 
 dry jjood^- generally to a smaller extent, canned goods of every description, and a list 
 of smaller commodities altogether too numerous to mention. These gltods are produced 
 all over this country, and, of late years, there has been included in the exports of 
 lumber quite a quantity of Oregon i^ine, which seems to be growing in favor, as the 
 exports of the same a'.e increasing. The agricultural implements, such as mowers, 
 reapers, plows, etc., are largely manufactured in the West and Northwest, and much 
 of the lumber exported also comes from these regions. A large part of the white jjino 
 that is shipped from ports in the United States to those of Uruguay and the Argentine 
 Republic is really the product of Canada. 
 
 In answer to your second question, I would say that there has been a marked in- 
 crease in our commerce with the Argentine Republic and Uruguay in so far as ex- 
 jjorts are concerned, and the Increase in the last few years has been largely in the 
 variety of articles exported. The reason for this increase I would ascribe in a great 
 measure — beyond the natural one of the increase of population of those countries, 
 which you are well aware has been very considerable — to a somewhat better dispo- 
 sition on the part of our manufacturers to adapt themselves to the wants and re- 
 quirements of our foreign trade ; and what is most needed to increase this business 
 is that our manufacturing interest should learn that it is absolutely necessary that 
 they should make the goods as our customers want them, and not endeavor to make 
 our customers adapt themselves to the goods. 
 
 In answer to your third question, I would say that all our imports from the Argen- 
 tine Republic and Uruguay, with very few exceptions, so few that they are hardly 
 worth attention, came in foreign sailing vessels, principally English, and they are 
 paid for with credits on London. As to the jjercentage that comes on American ships, 
 I have not the figures before me to give them exactly, but from a general knowledge 
 of the business, I should say not one-quarter. 
 
 ■ THE MEANS OF TRANSPOKTATION. 
 
 In answer to your fourth question, I would say that the exports of the Argentine 
 Republic and Uruguay go almost entirely in sailing vessels, the proportion of Ameri- 
 can to foreign ships being about the same as given in my previous answer. The pro- 
 portion of our exports carried on steam-ships, until within a few months, is absolutely 
 none. Within the last few months I have made an attempt to work up a steam-ship 
 business, but have been obliged to do it entirely with English tramps, there being no 
 regular line whatsoever. A great many goods, especially of the more expensive class, 
 such as dry goods and the like, are sent to Uruguay and the Argentine Republic by 
 way of Europe, the English, French, and German lines all issuing through bills of 
 lading, via Europe, at a very slight advance in rates from what is charged from here 
 by any steamer going direct. All the principal lines running from Europe to Uruguay 
 and the Argentine Republic, many of which touch at Brazil on the way up, are sub- 
 sidized by the respective Governments. 
 
 A line of very fast steamers has lately been started from Genoa, subsidized by the 
 Italian Government. 
 
 THE QUESTION OF PRICES. 
 
 In answer to your fifth question, I would say that as far as a comparison of the 
 prices of the principal articles exported from the United States to Uruguay and the 
 Argentine Republic is concerned, our goods, especially when quality is taken into 
 consideration, are cheaper than those exported from Europe of a like character. One 
 great difficulty is to get our manufacturers in many lines to make cheap enough 
 goods for the requirements of the trade. The merchants of Uruguay and the Argen- 
 tine Republic can, as a rule, buy manufactured articles as cheaply in the United States 
 as they can in Europe, but they can not obtain the credit that they can in Europe, 
 and as we have no direct banking facilities, our manufacturers and commission mer-
 
 84 TRADE AND TKAN.srORTATlON BLVrWEEN 
 
 chants here can not do as well for them in the way of tiuie as their opponents in Eu- 
 rope. Any shipper of standing in Europe can ship his goods and go with his bill of 
 lading to any of the many banking establishments doing that business and get his 
 draft against the receiver cashed without any dithculty, whether it be drawn at 
 sixty or ninety days, or six months. 
 
 In answer to your question as to what extent do tlie manufacturers of the United 
 States produce articles especially adapted to the trade, I would add to my previous 
 remarks that may apply to the question that they do not make them to the extent 
 that they might, the reason being, as I have stated before, that they wish the people 
 of the countries south of us to adapt themselves to what they make, rather than to 
 make their goods adapted to the wants of these people, and here is whereour Spanish- 
 American commercial union, about which you know, will do a great work, if it can 
 succeed in educating the American manufacturer as to the wants of our southern 
 neighbors. 
 
 RECIPROCITY TREATIES. 
 
 In answer to your sixth question, I would say that I am not sure as to the tariff on 
 breadstuffs and provisions of tlie Argentine Republic or Uruguay, as they are so 
 seldom shipped from here that I have not paid any great attention to the matter. As 
 a rule, the duty in both those countries is high, the free trade monomaniac not hav- 
 ing been able to got in his work, and the people generally being believers iu protec- 
 tion. Refined petroleum pays a duty of about $1.10 per case of 10 gallons ; white 
 pine about $3 per 1,000 feet, reduced to our money ; hard wood pays from $12 to $13 
 per 1,000. 
 
 I fully believe that reciprocity treaties could bo negotiated with all the South 
 American countries if the proper means are taken to do so, and that we could there- 
 by bring up the raw material produced in those countries and re-export them iu 
 manufactured goods. I do not know of the Argentine Republic or Uruguay having 
 any treaty which would prohibit them from discriminating in favor of the United 
 States, and, if wo would only go half-way and extend the hand of friendship to them 
 by opening up communication with them and lotting them believe that we desire to 
 treat Avith them, they would be only too delighted to extend their business relations 
 with us. 
 
 If the duty were taken off, say, our stai>le products, such as petroleum, lumber, and 
 the like, in Argentine Republic, it would result in a large increase of the business, 
 and the only way, in my opinion, to bring this about is by reciprocity treaties, and 
 the establishment of direct, rapid, and frequent communication by steam. 
 
 THE LUMBEIl TRADE. 
 
 In answer to your seventh question, I would say that the exports of lumber from 
 the United States to the river Plate territory reach very close to 150,000,000 feet per 
 annum, say about 60,000,000 feet of white pine, a like quantity of pitch i)ine, about 
 40,000,000 feet of spruce, and about 5,000,000 feet of hardwoods of other kinds. In 
 so far as the other lumber-producing nations are concerned, wo have very little com- 
 petition waged against us, the principal one being the exports of Baltic pine, which 
 is a species of spruce. The exporters in those countries do not enjoy any siiecial ad- 
 vantages over us. 
 
 The eighth question that you ask mo can bo better answered by some of the dele- 
 gates which you will have at your conference than I can answer it. 
 
 If a common coin, be it gold or silver, would bo adopted that would circulate any- 
 where on this continent, I am satisfied that it would be a great assistance to com- 
 merce. 
 
 In answer to your ninth question, I would say, in so far as the Argentine Republic 
 and Uruguay are concerned, their customs regulations and methods of appraisement 
 are very simple and fair, and there is no system of fines or penalties in their ports
 
 THE UNITED STATES AND LATIN AMERICA. 85 
 
 that aro not mot with everywhere, their Governments, as a rule, doing everything in 
 their power to avoid any eomplicatious or unfriendly acts to foreign vessels visiting 
 their ports, 
 
 TRANSPORTATION LINES THE FIRST CONDITION. 
 
 As regards my opinion generally, which you ask, I would say that if your coming 
 congress will simply show to the nations represented there that this Government, or 
 our people, desire to extend their relations, any or all of these Governments will only 
 bo too glad to take any action in their power which will bring about such a result ; 
 but unless some action is taken by your congress which will lead to the bringing 
 about of the necessary steam communication between these ports and ours, it is abso- 
 utely useless to think of extending our business in any way near the proportion that 
 it can bo extended. 
 
 Take as an example our husiuess with Mexico. Since the establishment of the 
 railroads and regular rapid steam-ship communication, it has been steadily increasing. 
 One great advantage that the Germans, English, and French have over us in those 
 countries, and it is no small one, is that they send their sous and establish them in 
 these countries. It is only natural that a merchant in a foreign country should pre- 
 fer to import the products of his native land to those of a foreign country. 
 
 Your trip through South America, a few years ago, will have shown you very plainly 
 how rare it is to find an American house in any of the cities of South America of any 
 prominence or standing. 
 
 Another very important point in the dev elopment of our trade is that our consular 
 and diplomatic service in all these ports of >South America should he greatly improved ; 
 and if these people are to judge of us by the representatives that we have heretofore 
 sent them they must certainly think that we are not a desirahle people to deal with. 
 
 A BETTER ACQUAINTANCE NECESSARY. 
 
 I believe that, were a regular line of first-class steam-ships started to ply hetween 
 New York and Uruguay and the Argentine Republic, within five years our business 
 with these countries would very nearly have doubled ; and if we could negotiate rec- 
 iprocity treaties with them, whereby their wool would be admitted free to this coun- 
 try in exchange for the admission of our staple articles and manufactures free at their 
 ports, I believe that it would quadruple in the same time. An experience of over 
 twenty years in New York as a commission merchant doing business with these coun- 
 tries, has proven to me that the way to increase our business is to get those people to 
 visit us. I have never known a single instance where one of their merchants with 
 whom I have been doing business has come on here wherethe business with that firm 
 has not increased in a marked manner. As we are to-day situated, they can not come 
 here, except at considerable inconvenience, coming around by way of Europe, and mak- 
 ing the tri'iJ a long and tedious one ; whereas, if we had direct rapid steam communica- 
 tion, we would turn the line of travel from these ports of Euroj)e to ourselves, and it 
 would result in an immense benefit to our commercial relations. 
 
 Again apologizing for not having answered your letter before, and regretting that 
 I am not able to do it at the length I should have wished, and with my heartiest 
 wishes for the success of your congress and the enlargement of our trade with the 
 countries south of ns, believe me, my dear sir, very sincerely, yours, 
 
 William H. T. Hughes. 
 
 William E. Curtis, 
 
 Special Agent, Department of State, Washington, D. C.
 
 86 TRADE AND TRANSPORTATION BETWEEN 
 
 OBSERVATIONS OP AN ARGENTINE. 
 
 Senor Adolfo G. Calvo, cousiil-general of the Argentine Eepublic 
 at New York, in a recent interview with a reporter of "export and 
 finance," said : 
 
 So fiir as the Argentine Repnblic is concerned, there is a brisk and lively demand 
 for American mannfactures, and this demand is yearly increasing. The demand con- 
 sists chielly for agricultural implements, and it is safe to say that the United States 
 can not ship into the Argentine Republic more of this class of machinery than there 
 will be found a brisk demand for. Want of direct communication, as has been pointed 
 out by yonr paper, is a great drawback to the development of this trade, and in fact 
 of any extensive trade between the Argentine Republic and the United States. To 
 get direct communipation, we are obliged to ship goods from here by a sailing line 
 owned by Norton & Co., except when an old tramp steamer comes along and can be 
 chartered. We ship considerably by the United States and Brazil Steam-ship Com- 
 pany to Rio, but, of course, you know that is not direct communication, as the goods 
 have to be transshipped at Rio on to English, French, or German steamers that con- 
 nect with the Argentine Republic. Sometimes we ship goods to Liverpool or to Ham- 
 burg from New York and reach our country with American goods in that roundaboot 
 way. 
 
 THE QUESTION OF TRANSPORTATION. 
 
 It is not the fault of the Argentine Republic that direct communication with the 
 port of New York does not exist. Our Government agreed to subsidize the Houston 
 Line from this port to Buenos Ayres, giving it a gross sura of $100,000 and 5 per cent, 
 on the capital invested in the Hue for a term of years. The only provision made was 
 that the United States should give an equal amount of money to start the line. Our 
 Congress voted this money in 18S7, but the United States would give nothing, and so 
 the project of a direct line fell to the ground. The agreement was, so far as our 
 Government was concerned, that the line should have at least four vessels of over 
 4,000 tons register, and that they should carry a number of young lads as naval 
 cadets, sail under the Argentine flag, and h^ve a speed of not less than 16 knots an 
 hour. 
 
 This project of course is now at an end, but we have a contract with a Mr. Vasquez, 
 who represents an American syndicate, to establish a line between us and Bordeaux, 
 France, the vessels of which will be subsidized by the Argentine Government, will 
 sail under its flag, be capable of being converted into war cruisers at a short notice, 
 and will have a speed of not less than 20 knots an hour. 
 
 RECIPROCITY TREATIES. 
 
 As to the matter of reciprocity, it is one that concerns the Argentine Repnblic very 
 seriously. Wo want the United States to take its present heavy tarifl' duties off" of our 
 wool. We think this is only just to us in view of the fact that wool-growing is one 
 of our most imjiortant iudustries. Why, Buenos Ayres alone has 100,000,000 sheep, 
 and from that fact you can judge how v»ry important this matter is to us if we are to 
 find an export market in the United States. 
 
 Outside of agricultural implements, there is a class of goods manufactured in the 
 United States that is absolutely at a premium in South America. I allude to your 
 furniture. In design, in worknianship, and in finish, it is perfectly uni(iue, and far 
 Hnri)assfH anything that is imported from Europe. It can not be equaled. Among 
 other inaTinfactures, as you can see by the manifests I have here, there is a pretty 
 good trade in olectricil machinery and appliances, hardware, stationery, and notions, 
 between tlie United States and the Argentine Republic. 
 
 Aitierican goods .are not too good for the Argentine market, because the people of 
 the Argentine Republic, like the peojjlo of the United States, are rich, and want to 
 get good things, even though they have to pay good prices for them.
 
 THE UNITED STATES AND LATIN AMERICA. 87" 
 
 ENORMOUS IKCREA8E IN WEALTH. 
 
 The extraordinary increase in the wealth of the people of the Argentine Republic 
 can hardly be estimated by outsiders, but two personal examples will give you an 
 idea of the boom that Republic is enjoying. Three years ago, when I was in Buenos 
 Ayres, I paid a man for talcing care of my horse the sum of .|'24 a month. Tliree 
 months ago I met that man in Paris, taking in the Exposition, and worth $300,000. 
 You ask me how he made the money ? Simply by speculating in real estate. A young 
 man whom I knew at the same time as a clerk in a bank was pointed out to me on 
 the streets of Buenos Ayres as a millionaire. "No," I said, " he is not a millionaire, 
 he is only a bank clerk." The reply was, " It is easy to see you have not been here 
 for the last few years, or you would know he is now a capitalist, and worth a good 
 deal over a million dollars." He made this money, too, in real estate speculation. 
 That real estate speculation is a pretty good thing in the Argeutine Republic you can 
 see at a glance when you reflect that the monthly immigration into the country is 
 from fifteen to twenty thousand, and that from January the Ist to June Ist of the 
 present year 156,000 people have been landed on our shores. 
 
 In regard to the question of subsidies, I am thoroughly in accord with the views of 
 your paper. No direct line between the United States and the Argentine Republic 
 could pay expenses until at least three or four years after it had been established. 
 Therefore I consider that it would be only right and proper for your Government to 
 liberally subsidize steam lines to South American ports, reserving to itself the right 
 of withdrawing such subsidies or reducing them when the lines became profitable to 
 the companies running them. 
 
 THE INTERNATIONAL CONGRESS. 
 
 I consider that the approaching Pan-American Conference will be of the greatest 
 advantage to all the Spanish speaking peoples of South America. I regret to see 
 that a few papers published in the Spanish language in this city, and in other parts 
 of the United States, are trying to belittle the work which the Conference is designed 
 to accomplish. It is well, however, that the American people should understand that 
 these papers do not represent the feelings of the Spanish-American people. These 
 papers are Spanish. They are not American. And it would be as absurd for us to think 
 that they would approve of a movement designed to create a strong fraternal feeling 
 and an increased commercial intercourse among the peoples living on this continent 
 of America as it would be to dream that England would hail with joy the supremacy 
 of the United States once more upon the ocean. Just as the people of England will 
 never really forgive the people of the United States for winning their independence 
 from her, neitjier will Spain ever forgive the Spanish-American peoples for winning 
 their independence in the same manner. If you want to understand the true senti- 
 ments of the Spanish-American peoples as regards the Congress, you must read our 
 own papers and not the papers published in the interest of the Spanish Goverument.
 
 8S 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 XIII. 
 
 THE COMMERCE OF URUGUAY. 
 
 The total commerce of Uruguay during the calendar year of 1888 
 was $57,'i 85,702, of wliich $29,477,448 were imports and $28,008,254 
 were exports. The commerce of Uruguay, like that of other South 
 American countries, is expanding rapidly, as the following table will 
 show: 
 
 Tear. 
 
 Total. 
 
 Tear. 
 
 Total. 
 
 1 8C4 
 
 $14, 7W, 873 
 27, 782, 393 
 32, 426, 455 
 
 1880 
 
 $39,231,069 
 51, 045, 257 
 
 1870 
 
 1884 
 
 1874 
 
 1888 
 
 57, 485, 702 
 
 
 
 
 The exports of Uruguay are entirely raw products, with the exception 
 of cured beef. The imports are exclusively manufactured merchandise 
 and the increasing consumption of the people is shown by the rapid 
 increase during the last twenty-five years. In 18G4 the imports were 
 but $8,384,1G7; in 1874 they had increased to $17,181,072, in 1884 to 
 $25,414,238, and in 1888 to $29,477,448. 
 
 In proportion to its population Uruguay has a larger foreign com- 
 merce than any other nation on the globe. 
 
 RESOURCES OF THE REPUBLIC. 
 
 Its resources are enormous. There is no other country more ])roduc- 
 tive, and iu none can a greater amount of profit be derived from the 
 same amount of capital and labor. The country is a rolling prairie, the 
 soil a bhick loam, the landscape is nearly treeless, except where groves 
 and orchards have been planted, and it resembles the fertile sections 
 of Indian Territory or southern Kansas. 
 
 The wealth of the country is almost entirely in wool, hides, and the 
 viuious parts of the beef, reduced to the most condensed form. Fray- 
 bentos, on the Uruguay River, a port admitting ocean steamers, is the 
 site of one of the largest slaughtering establishments in the world, the 
 LiebigExtractof Beef Company, an English corporation with $2,500,000 
 capital, which has been doing business there for twenty-five years, and 
 declaring an average dividend of 20 per cent, annually.
 
 THE UNITED STATES AND LATIN AMERICA. 89 
 
 The slieep industry of Uruguay is no less important tban the cattle, 
 and the largest article of export is wool. The most of it is sent to 
 France and Belgium, but a considerable quantity comes to the United 
 States. 
 
 THE IMPORTS OF URUGUAY. 
 
 The imports of Uruguay are furnished mostly by England, Germany, 
 and France ; England having the lion's share. Of the articles imported 
 into the country cotton goods and other wearing apparel stands first, 
 wines and provisions second, and the manufactures of iron and steel 
 third ; but being a country without manufactures the people are com- 
 pelled to import every little article that enters into their daily life. 
 
 All that has been said concerning the steam-ship question in the chap- 
 ter devoted to the Argentine Republic may be applied to Uruguay, for 
 her capital and principal seaport stan ds immediately opposite Buenos 
 Ayres, across the Rio de la Plata, about the same distance as Cleve- 
 land from Detroit. The trade relations between the two cities are very 
 close, and all the steam-ships for Buenos Ayres stop at Montevideo both 
 coming in and going out of the Rio de la Plata. 
 
 The Government of Uruguay would willingly enter into a commercial 
 treaty with the United States provided her wools could be admitted 
 free into this country, and during the visit of the South American Com- 
 sion to Montevideo in 1885 the President of that Republic assured it that 
 he would gladly join in any arrangement with the other South Ameri- 
 can nations that would result in the issue of an international coin. 
 
 NO OBSTACLE BUT LACK OF TRANSPORTATION. 
 
 There are no obstacles in the way of our commerce with Uruguay 
 except the lack of steam-ship communication and the absence of bank- 
 ing facilities. American goods are popular there as in other countries. 
 The people are highly educated, refined in their tastes, and extravagant 
 in their expenditures. The cost of living is less than in almost any 
 other country, while the profit of labor is greater, and therefore the 
 people are enabled to spend more than the ordinary proportion of their 
 incomes for articles of comfort and luxury. 
 
 Seilor Don Jose Marti, consul-general of Uruguay at New York, in a 
 recent interview with a reporter of Export and Finance, said : 
 
 OUR WANT OF FAITH IN THE PEOPLE. 
 
 In my opiuiou, the reasou whj^ trade is uot larger between tbe United States and 
 the Republics of South and Central America, is that American merchants have shown 
 a want of faith in our people that is uot displayed by those of either England, Ger- 
 many, or France. The Spanish-Americans are a highly sensitive people. Nothing 
 can alienate them more than to make them feel that you believe that they can not be 
 fully trusted in every particular. American merchants have failed to recognize this 
 quality of the Spanish-American race. The truth is they have been so ill instructed 
 that they have imagined that we all are semi-barbarians, a mixture of Spanish, Indian, 
 and even negro blood. They have done nothing, or next to nothing, to develop the
 
 90 TRADE AND TRANSPORTATION BETWEEN 
 
 resonrces of any oue of the South American countries. On the other liand, England, 
 Germany, and France have poured their capital into every country of South and Cen- 
 tral America. They have lent us large sums of money ; they have developed our re- 
 sources, and they seem to ho only too anxious to find auy and every opportunity to 
 engage in new industrial projects. The South American people are not ungrateful, 
 and years of experience have taught them to fear nothing from the European countries 
 and to be grateful for many advantages they enjoy by their intercourse -with them. 
 
 POPULARITY OF AMERICAN GOODS. 
 
 As a matter of fact, however, so far as sentiment is concerned, all the Republics of 
 South America look on the United States as being their friend, and this country has 
 been alluded to proverbially as the " Mother of Republics." This sentiment would 
 induce a large increase of trade if the United States was in a position to afford the 
 same facilities to South American buyers as are afforded by European countries. Of 
 course, sentiment will not make a man buy inferior goods at a higher price when he 
 can get better goods at a lower price. It would, be absurd to expect this. 
 
 Now, as to the means to be taken to improve trade relations with South America 
 and Mexico, I would say that certainly direct communication by steam-ship lines is 
 highly desirable, and that the policy pursued by England and other countries in 
 this regard will have to be followed in order to place goods from the United States 
 as cheaply in the foreign market as those of European countries. We must do some- 
 thing on the lines which have built up the trade of Europe with South America in 
 order to become an active competitor. 
 
 THE QUESTION OF RECIPROCITY. 
 
 As to this question of reciprocity, it is one which no doubt will be carefully con- 
 sidered in the coming Congress. I think that it should be based on irade already 
 existing and not on political considerations. What I mean is, that politics, or even 
 the suspicion of politics, should not be allowed to enter into the discussions of the 
 Congress or any action which might bo subsequently takeu by treaty growing out of 
 its deliberations. It has annoyed me very much to observe that some papers and a 
 few individuals have been endeavoring to alarm the South American Republics with 
 the idea that the United States is trying to compel them to trade with this country, 
 as being their natural market to buy in, and with alluding more or less vaguely to 
 some occult designs in trade by the United States against their commercial independ- 
 ence. This is altogether wrong, and the only effect it can have, if it should become 
 generally believed in by the South Americans, would be to destroy the sympathy for 
 the United States that I previously spoke of, and if such a change was brought about 
 there would be no hope of an increased commerce. 
 
 INCREASING TRADE WITH THE UNITED STATES. 
 
 As regards the trade of Uruguay and the United States, it has been growing greatly 
 within the past few months. A largo quantity of wheat and flour has been shipped 
 from here to Uruguay, due to a failure of the crop in that country. There has been 
 a revival in the trade also of agricultural implements. It is a fault among American 
 exporters that they have a tendency to overflow the market. Two years ago they 
 sent down a large stock of these agricultural implements to Uruguay, and it is only 
 now that that stock had to bo replenished. There has also been a considerable trade 
 in lumber, hardware, and patent mediciuea. A beginning has been made in export- 
 ing American beer into Uruguay, but the quantity shipped has not been large, and 
 in fact it is «mly an experiment. 
 
 I will add in regard to the long credits given by European merchants that they are 
 not given to every one, but are the outcome of a sure knowledge of the people they 
 are trading with, for in some republics a man's credit is better than in others. The 
 English have made a special study of the credit system in South America, and they 
 make few mistakes.
 
 THE UNITED STATES AND LATIN AMERICA. 91 
 
 XIV. 
 
 THE COMMERCE OF PARAGUA.Y. 
 
 The trade of Paraguay, necessarily passing through the ports of 
 Uruguay to the Argentine Republic, is almost entirely included in the 
 statistics of the two latter countries. There is a small direct trade, 
 which, during the calendar year of 1888, amounted to $5,878,306, show- 
 ing an increase over 1887 of $1,430,640. The value of the imports in 
 1888 was $3,289,757, and the exports were $2,588,608. 
 
 These figures show progress and prosperity. Kot long ago the little 
 republic of Paraguay was almost entirely devastated by a war, and the 
 population was nearly exterminated. In fact, the most reliable statisti- 
 cians assert that there were less than twenty thousand men in all the 
 country at the end of the struggle, which was carried on for nine years 
 against overwhelming odds to sustain the despotism of the most cruel 
 and intolerant tyrant of modern history. 
 
 SIGNS OF A REVIVAL OF INDUSTRY. 
 
 But it appears from a recent message of the President that the coun- 
 try is making considerable progress. Immigrants are coming in, capi- 
 tal and labor each find employment, and under the encouragement of 
 the Government every possible effort is being made to develoi) its won- 
 derful resources. The public lands and those which were left ownerless 
 by the extermination of the inhabitants have passed into the hands of 
 an English syndicate, who hold the bonds of the country. This syndi- 
 cate is doing much towards colonizing the country, and in a few years 
 Paraguay will doubtless be resettled and resume her place among the 
 prosperous nations of America. 
 
 THE EXPORTS AND IMPORTS. 
 
 The exports of the country are mostly hides and yerbe mate, or "Jes- 
 uit's tea." But some sugar and tobacco are being grown, and the timber 
 resources of the country will soon be developed by the introduction of 
 steam saw-mills. The imports are mostly cotton goodi^, wines, jewelry, 
 furniture, and articles of household use.
 
 92 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 XV. 
 
 THE COMMERCE OF BRAZIL. 
 
 The foreign trade of Brazil in 1887 amounted to $212,816,250 and in 
 1888 to $237,000,000, the imports being $122,000,000 and tlie exports 
 $115,000,000. Tbe large excess of imports was due to the shipments 
 of coin from England and heavy cargoes of railway supplies for inter- 
 nal improvemeuts. 
 
 Of the exijort trade the United States has altogether the largest 
 share, taking nearly one-half the total, in the form of coffee, sugar, 
 hides, and rubber, while the remainder is divided between France and 
 England, and a few million dollars' worth of raw material go to Spain 
 and Germany. 
 
 Of the import trade England enjoys about one-half, while the rest is 
 divided between France, Germany, and Spain, with a few million from 
 the United States. 
 
 EXPORTS AND IMPORTS. 
 
 Without including the imports of coin the commerce of Brazil in mer- 
 chandise is divided about as follows : 
 
 Countries. 
 
 Imports ffom 
 Brazil. 
 
 Exports to 
 Brazil. 
 
 England 
 
 France 
 
 Germany 
 
 Spain 
 
 United States 
 
 $2C, 177, 259 
 
 22, 538, 478 
 
 7, 2C0, 722 
 
 5, G80. 821 
 
 53, 710, 234 
 
 $:}9, G54, 720 
 
 21,112,617 
 
 13,321,412 
 
 8,316,811 
 
 7, 063, 892 
 
 A COMMERCIAL PHENOMENON. 
 
 This, as will be noticed, is a most remarkable commercial phenomenon. 
 The consumers of raw products in the United States furnish one-half 
 the money the consumers of manufactured merchandise iu Brazil ex- 
 pend in Europe. But it is easily exi)lained. Trade follows transpor- 
 tation. There are five steam-sliip lines making regular voyages and a 
 large number of " tramps" making irregular voyages from Brazil to the 
 United States and bringing us her coli'ee, sugar, rubber, and hides,
 
 THE UNITED STATES AND LATIN AMERICA. 93 
 
 while there is only one line of steamers, and that sending a ship only 
 once a mouth, from the United States to Brazil. 
 
 HOW IT IS CARRIED ON. 
 
 The exports from Brazil to the United States in 1888 were brought 
 in 71 American vessels of 57,808 tons and 497 foreign vessels of 331,985 
 tons. 
 
 Our exports to Brazil were sent iu 75 American vessels of G3,581 
 tons and 151 foreign vessels of 83,728 tons. Most of the foreign vessels 
 were small sailing craft and partially loaded. 
 
 Of our imports from Brazil $43,018,788 were brought in foreign ves- 
 sels and $10,691,440 iu American vessels, while nearly all our exports 
 to Brazil were carried in American vessels. 
 
 THE TRIANGULAR VOYAGES. 
 
 One of the greatest obstacles in the way of an extended trade in 
 South America, particularly in Brazil and the valley of the Rio de la 
 Plata, is the system of triangular voyages made by English and Ger- 
 man ships. The Liverpool, Brazil and River Plate Steam Navigation 
 Comjiany is a good illustration. 
 
 This company has a large number of fine steamers which sail every week 
 from Liverpool and Antwerp. They proceed to Brazil and the River 
 Plate and discharge their cargoes of European manufactures. These 
 steamers take coft'ee, etc., and other Brazilian produce direct from Sau- 
 tos, Rio, and Bahia to the United States, where they load again for Eng- 
 land or Antwerp, taking cargo for Brazil and River Plate, via England. 
 This company is uotorious for their discrimination iu rates of freight in 
 favor of certain shij)pers, and is thus enabled to underbid an American 
 ship in carrying Brazilian products to the United States. The steamers 
 also have liberal mail pay from England and Belgium. 
 
 There are several other companies engaged in the same trade and it 
 is impossible for American ships to compete with them. It is this sys- 
 tem of triaugular voyages which causes the great difference between 
 our exj)orts to and our imports from Brazil. These steamers arrive 
 every week at New York with the raw products of Brazil, but never 
 carry any merchandise the other way. At least eight steamers come 
 from Rio de Janeiro to New York for every one that sails from New York 
 'to Rio de Janeiro.
 
 94 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 WHAT CUE FOLLY HAS COST. 
 This sort of thing has been going on for a century, and the balance 
 of trade has been piling up all the time. The following statement shows 
 the result for thirty years: 
 
 Year. 
 
 Imports from 
 Brazil. 
 
 Exports to 
 Brazil. 
 
 Year. 
 
 Imports from 
 Brazil. 
 
 Exports to 
 Brazil. 
 
 1859 
 
 $22, 419, 000 
 21,204,000 
 18,100,0110 
 12, 747, 000 
 10, 945, 000 
 14, 388, 000 
 9, 784, 000 
 16, 816, 000 
 19, 100, OOo 
 
 23, 595, 000 
 
 24, 837, 000 
 25, 161, 000 
 30, 551, 000 
 30, 122, 000 
 38, 540, 000 
 43, 888, 000 
 
 $6, 018, 000 
 6, 021, 000 
 4, 973, 000 
 
 3, 858, 000 
 
 4, 940, 000 
 
 5, 354, 000 
 
 6, 580, 000 
 5, 691, 000 
 5, 099, 000 
 5, 695, 000 
 .5, 806, 000 
 
 5, 774, 000 
 
 6, 013, 000 
 5, 912, 000 
 
 7, 197. 000 
 7, 702, 000 
 
 1875 
 
 $42, 027, 000 
 45, 440, 000 
 43, 408, 000 
 42, 968, 000 
 36, 375, 000 
 
 51, 970,000 
 
 52, 8727000 
 48, 801, 000 
 44, 488, 000 
 50, 265, 000 
 45, 203, 000 
 41,907,000 
 52, 953, 000 
 53,710,000 
 
 $7, 742, 000 
 
 1860 . - 
 
 1876 
 
 7, 310, 000 
 
 18(51 
 
 1877 
 
 7, .'■jS 1,000 
 
 ]8rt2 
 
 1878 
 
 8, 6.S(>, OOo 
 
 1863 
 
 1879 
 
 8, 194, 000 
 
 1864 
 
 1880 
 
 8, 0ll5, 000 
 
 1865 
 
 1881 
 
 9 252 000 
 
 18(56 
 
 1882 
 
 9, 152, 000 
 
 1867 ... . 
 
 1883 
 
 9, 252, 000 
 
 1868 
 
 1884 
 
 8, 695, 000 
 
 1809 
 
 1885 
 
 1886 
 
 7,317,000 
 
 1870 
 
 6, 451, 000 
 
 1^71 
 
 1887 
 
 8, 127, 000 
 
 3872 
 
 1888 
 
 Total 30 years. 
 
 7. 137, 000 
 
 
 
 1874 
 
 1, 014, 740, 000 
 
 210, 230, 000 
 
 
 
 SOME STUPENDOUS FIGURES. 
 
 This table shows that during the past thirty years we have paid Bra- 
 zil in cash over and above the value of what we have furnished her in 
 merchandise the enormous sum of $708,510,000, and every cent of it has 
 gone into the j)Ockets of the British merchants and manufacturers. Nor 
 is this all. During all this time wo have paid the owners of English 
 ships for the transportation of this produce, have paid interest to her 
 bankers who have advanced the money, and exchange to her brokers 
 on the drafts which settled the balances. 
 
 The exchange alone, which amounts to three-quarters of one per cent, 
 on the balance of trade as above stated, reaches the enormous sum of 
 $402,820.75 for a single year, and $7,610,550 for the thirty years; while 
 at the rate of $10 a ton we have paid in freight to the English ship-own- 
 ers the sum of $24,464,380 during the last thirty years. 
 
 ALL DUE TO A LACK OF STEAM-SHIPS. 
 
 The trade with Brazil, as has been said, illustrates as well as any 
 other example that may be found, the fact that trade follows freight 
 facilities. The goods purchased sind consumed by the people of Brazil 
 can be furnished by the manufacturers of the United States of as good 
 a quality and at as low a price as they can be purchased in Ijugland, 
 and the i)refcrences of the people for the products of this country has 
 been emphasized by the manufacturers of Germany and England, who 
 have forged our trade-marks and violated our patent laws in order to 
 deceive their customers into the belief that they were purchasing Amer- 
 ican goods. 
 
 PREFERENCE FOR AMERICAN GOODS. 
 
 The preference for American goods by the people of Brazil was re- 
 cently made the subject of a long dispatch to his Government by Mr. 
 George Hugh Windom, the British minister to that country.. In this
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 95 
 
 commuuicatiou he remiuds Lord Salisbury, bis official superior, that 
 mercbaudise sent from tbe Uuited States to Brazil is much more 
 popular and suitable to tbe tastes of tbe people tban tbat exported from 
 England, and he particularly mentions railway supplies, which are sup- 
 posed to be produced cheaper in Enjjlaud tban in the United States. 
 " Tbe railway plants of Euglaud," be said, " are not adapted to the wants 
 of a country such as Brazil, where tbe roads are full of curves and steep 
 grades. Tbe consequence is that out of 252 locomotives in use on 
 eighteen Brazilian lines 213 were made in the United States and only 
 28 in Great Britain." 
 
 The exports from Brazil are mostly coffee, rubber, hides, sugar, fruits, 
 and chemicals and drugs. 
 
 THE IMPORTS OF BRAZIL. 
 
 The imports of Brazil comprise nearly every article that enters into 
 the consumption of tbe people. The following table shows the exports 
 to that country from the United States in 1888, compared with the 
 exports from England the previous year, and the merchants and manu- 
 facturers of this country can notice tbat there is no difficulty in compe- 
 tition in nearly every article mentioned : 
 
 Articles. 
 
 Agricultural implements 
 
 Breadstutis 
 
 Candles 
 
 Carriages, carts, and cars 
 
 Cheniical.s, drugs, dyes, and medicines 
 Coal 
 
 Copper, and manufactures of . 
 
 Cotton, manui'actures of 
 
 Earthen, cbina, and glasssvare 
 
 Fancy articles 
 
 Fish 
 
 Flax, hemp, and jute, manufactures of 
 
 Fruits 
 
 Gunpowder and other explosives 
 
 Hair, and manufactures of 
 
 India-rubber and gutta-percha, manufactures of. 
 
 Instruments for scientitic purposes 
 
 Iron and steel, and manufrctures of 
 
 Jewelry and manufactures of gold and silver. ... 
 
 Lead, and manufactures of 
 
 Leather, and manufactures of 
 
 Lime and cement 
 
 Malt liquors 
 
 Musical instruments 
 
 Oils: 
 
 Mineral, refined 
 
 All other 
 
 Paints and painters' colors 
 
 Paper and stationery , 
 
 Provisions, comprising meat and dairy products. 
 Salt. 
 
 From the 
 United 
 
 States. 
 
 $20, 
 
 2, 812, 
 
 20, 
 
 665, 
 35, 
 51, 
 35, 
 38, 
 6, 
 IV, 
 
 11, 
 29, 
 679, 
 58, 
 12, 
 20, 
 
 13, 
 
 7, 
 
 832, 
 
 37, 
 
 5, 
 
 37, 
 
 438. 
 
 From the 
 
 Unite4 
 Kingdom. 
 
 $122, 402 
 192, 110 
 328, 255 
 1, 312, G63 
 180,601 
 14, ] 15, 069 
 537, 296 
 
 1, 205, 763 
 
 138, 213 
 '4,'998,"246 
 
 73, 912 
 1, 058, 454 
 
 86,964 
 
 142, 910 
 
 C8, 934 
 
 125, 249 
 
 Seeds 
 
 Silk, manufactures of. 
 Soap . 
 
 Spirits, distilled 
 
 Umbrellas and parasols 
 
 Veixetables, including pickles, etc. 
 
 Wearing apparel 
 
 Wine 
 
 Wood, and manufactures of 
 
 Wool, manufactures of 
 
 AU other articles 
 
 1,! 
 (a) 
 
 384,^ 
 
 476,: 
 
 171, 607 
 
 34,927 
 366,' 307 
 
 Total 
 
 7, 063, 892 
 
 36, 776 
 
 1, 514, 056 
 1, 599, 868 
 
 28, 3t^ 482
 
 96 TKADE AND TKANSPORTATJON BETWEEN 
 
 BRAZIL DESIRES RECIPROCITY. 
 
 As the United States is the largest customer of Brazil, and takes half 
 the products of her soil and forest, the people of that Empire should show 
 an inclination to discriminate in favor of our merchandise in the pur- 
 chase of the goods they consume, and they have done so by subsidizing 
 an American steam-ship line to New York to which the United States 
 Government would pay nothing. There is a very strong feeling in 
 Brazil in favor of a reciprocity treaty with the United States, and if 
 our Government will remove the duty from sugar the Parliament of 
 Brazil would willingly remove the duties from some of our peculiar 
 products, which are all taxed at an exorbitant figure. Flour pays a 
 heavy duty j kerosene is taxed IGO per cent. ; lumber, 90 i)er cent. ; lum- 
 ber, 52 per cent. ; while there is scarcely anything sent from this country 
 that is admitted at a lower rate of duty. 
 
 PRESENT CONDITION OF THE EMPIRE. 
 
 lirazil is just now in a critical financial condition because of the par- 
 tial failure of the coffee crop last year and the abolition of slavery. 
 On the 13th of May last every slave in the Empire was emancipated, 
 and the result is that to-day it is almost iraj^ossible to secure labor on 
 the plantations for the proper culture and gathering of the crops of 
 coffee and other products. The uncertainty on this point has caused 
 a large increase in the rate of interest and much discontent among the 
 people. The Government lias come to the rescue and has made an 
 agreement with the banks of the several large cities to guaranty loans 
 to planters to the maximum sum of $6,600,000 at 6 per cent, interest. 
 At the same time the Government has authorized the expenditure of 
 $5,500,000 to promote immigration, and thus supply the necessary labor 
 to cultivate the plantations. 
 
 The industrial condition of Brazil otherwise is encouraging. Her 
 railroads are being extended and are considered profitable property. 
 
 The export tax on sugar has been recently abolished, and that on 
 coffee has been steadily reduced for the last twenty years.
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 97 
 
 Appendix A to Part First. 
 
 OUR EXPORTS TO SPANISH AMERICA IN DETAIL. 
 
 Statement showing the valuen of the vrincipal and all other articles of domestic merohaiu 
 dise exported from the helow-vamed Southern customs districts of the United States to 
 Mexico, Central America, the fFest Indies, and South America, during the year ending 
 June 30, 1888. 
 
 MEXICO. 
 
 
 a 
 1 
 
 1 
 
 Cotton, and man- 
 ufactures of. 
 
 es o 
 
 d B H 
 O C8 p 
 
 h£5 
 
 O MP* 
 
 00 
 
 B t 
 
 1 
 
 
 Customs dis- 
 tricts. 
 
 id 
 
 a5 
 
 p<2 
 
 4i 
 
 if 
 
 3 
 
 New Orleans, La . 
 
 Brazos de Santi- 
 ago, Tex 
 
 Corpus Christi, 
 Tex 
 
 Dollars. 
 
 51, 042 
 
 152, 551 
 4,065 
 
 Dollars. 
 10, 509 
 
 58, 234 
 
 34, 597 
 3,090 
 
 Dollars. 
 
 3,728 
 
 28, 550 
 519, 340 
 
 Dollars. 
 225 
 
 179, 300 
 
 lOS, 657 
 27 
 
 Dollars. 
 1,384 
 
 29, 505 
 
 286, 837 
 3,617 
 
 DoUars. 
 2, 391 
 
 32, 147 
 
 19,275 
 1,646 
 
 Dollars. 
 
 26, 921 
 
 27, 274 
 
 519, 109 
 1,129 
 
 Dollars. 
 16, 172 
 
 211, 010 
 
 424, 425 
 
 38, 185 
 
 1, 500 
 
 1,540 
 
 1,074 
 17, 585 
 
 Dollars. 
 61,330 
 
 588, 512 
 
 1, 574, 001 
 
 571, 099 
 
 1,500 
 
 Galveston, Tex... 
 Kev West, Fla. .. 
 
 
 
 
 
 
 
 
 8,278 
 
 195 
 
 77,435 
 
 11,473 
 
 281,218 
 
 2,817 
 
 2,651 
 
 321,626 
 
 9,818 
 
 Pass del Xorte, 
 Tex 
 
 
 773 
 121 
 
 
 
 59 
 1,894 
 
 120 
 23 
 
 2,221 
 99, 109 
 
 
 1,573 
 
 478 
 
 
 
 
 11, 473 
 
 Salnria, Tex 
 
 Teche, La 
 
 82,396 
 
 14,816 
 
 1.311 
 
 26,723 
 
 248, 480 
 
 11, 753 
 
 343, 756 
 50 
 
 1, 010, 453 
 2,867 
 2,651 
 
 5, 307, 154 
 
 Wilmington, N. C. 
 
 
 
 
 
 
 
 All other dis- 
 
 135, 609 
 427, 296 
 
 222, 908 
 
 12, 784 
 
 
 
 721, 530 
 
 1, 377, 172 
 
 323, 070 
 
 2, 192, 395 
 
 
 Total 
 
 345, 048 
 
 566,191 
 
 1, 036, 462 
 
 1, 948, 948 
 
 390, 425 
 
 1, 280, 126 
 
 3, 247, 692 
 
 9, 242, 188 
 
 CENTRAL AMERICA. 
 
 Caatoms districts. 
 
 Bread- 
 stufl's. 
 
 Cotton, 
 manu- 
 factures 
 of. 
 
 Iron and 
 steel, and 
 
 manu- 
 factures 
 of. 
 
 Pro- 
 visions, 
 compris- 
 ing meat 
 and dairy 
 products. 
 
 Wood, 
 and man- 
 ufactures 
 of. 
 
 All other 
 articles. 
 
 Total. 
 
 
 Dollars. 
 
 184.497 
 
 1,915 
 
 Dollars. 
 
 60,915 
 
 167 
 
 Dollars. 
 33,459 
 
 77 
 
 Dollars. 
 
 130, 293 
 
 2,091 
 
 Dollars. 
 
 56, 999 
 
 9,272 
 
 3,652 
 
 280 
 
 153, 487 
 
 Dollars. 
 
 220, 138 
 
 3,140 
 
 DoUars. 
 
 686, 301 
 
 16, 662 
 
 3, 552 
 
 32 524 
 
 Mobile, Ala 
 
 Pearl River, Miss 
 
 Teche, La 
 
 
 31, 589 
 386, 473 
 
 
 
 655 
 1, 391, 555 
 
 A 11 other districts 
 
 693, 402 
 
 856, 445 
 
 232, 698 
 
 3, 714. 060 
 
 
 Total 
 
 879, 814 
 
 479, 144 
 
 889,981 
 
 365, 082 
 
 223, 590 
 
 1,615,488 
 
 4, 453, 099 
 
 
 S. Ex. 54-
 
 98 
 
 TRADE AND TRANSPORTATION HETWEKN 
 
 Statement ahowitig the values of the principal and all other articles of domeatic merchandin« 
 
 exported, etc. — Continued. 
 
 BRITISH WEST INDIES. 
 
 CustotuB districts. 
 
 Baltimore. Md 
 
 New Orleans, La 
 
 Apalaehicola, Fla 
 
 Brunsvs-ick, Ga 
 
 Charleston, S. O 
 
 Fernandina, Fla 
 
 Georgetown. S. C 
 
 Key West, Fla 
 
 Mobile, Ala 
 
 Newport News, Va . 
 
 Norfolk and Portsmouth, Va. 
 
 Pamlico, N. C 
 
 Pearl River, Miss 
 
 St. Augustine, Fla 
 
 St. John's, Fla 
 
 Savannah, Ga 
 
 Wilmington, N. C 
 
 All other districts 
 
 Total. 
 
 Breads tuffs. 
 
 Dollars. 
 27, 063 
 316 
 
 2,920 
 44 
 
 52 
 356 
 525 
 
 530 
 45 
 
 198 
 2,358 
 
 36 
 2, 682, 341 
 
 2, 716, 784 
 
 Coal. 
 
 DoUars. 
 
 260 
 
 2,080 
 618 
 
 16, 363 
 
 19, 321 
 
 Wood, and 
 manufact- 
 ures of. 
 
 Dollars. 
 
 9,785 
 
 21!) 
 
 4,899 
 
 13, 903 
 
 24, >-67 
 
 70, 5f'8 
 
 280 
 
 647 
 
 24, 376 
 
 64, 862 
 
 «, 798 
 
 1,200 
 
 440 
 
 14,913 
 
 8,514 
 
 34, 933 
 
 470, 106 
 
 753, 330 
 
 All other 
 ai-ticles. 
 
 Dollars. 
 
 22, 715 
 1,370 
 
 691 
 231 
 
 30 
 
 1,234 
 
 650 
 
 384 
 434 
 
 32^ 
 1,810 
 
 178 
 3, 930, 5'.'8 
 
 3, 960, 583 
 
 DUTCH WEST INDIES. 
 
 Fernandina, Fla 
 
 Georgetown, S. C . . . 
 Newport News, Va. 
 All other districts. . 
 
 Total. 
 
 179, 028 
 
 179, 028 
 
 1,935 
 345 
 
 2.280 
 
 6,460 
 6,938 
 
 29, 973 
 
 43, 371 
 
 72 
 '356,'364 
 
 356, 376 
 
 FRENCH WEST INDIES. 
 
 Baltimore, Md 
 
 Brunswick, Ga 
 
 Fernandina, Fla 
 
 Geo^geto^vll, S. C 
 
 Norfolk and Portsmouth, Va. 
 
 Pearl River, Miss 
 
 St. John'.s Fla . . . .^ 
 
 Wilmmiugton, N. C 
 
 All other districts 
 
 Total. 
 
 541, 531 
 
 541, 531 
 
 43, 358 
 
 43, 358 
 
 17, 393 
 2, 476 
 
 12, 559 
 2,899 
 
 26, ."iOC 
 3,518 
 
 13,628 
 
 40,241 
 233, 338 
 
 352, 552 
 
 637, 287 
 637, 287 
 
 HATTI, 
 
 
 
 
 2,439 
 67, 627 
 159, 845 
 
 
 2,439 
 
 
 345 
 634,784 
 
 
 4,710 
 3, 452, 782 
 
 72, 682 
 
 
 i2i 
 
 4, 247, 532 
 
 
 
 Total 
 
 635, 129 
 
 121 
 
 229,911 
 
 3, 457, 492 
 
 4, 322, 653 
 

 
 THE UNITED STATES AND LATIN AMERICA, 
 
 99 
 
 Statement ahotoing the values of the principal and all other articles of domestic merchandise 
 
 exported, etc. — Continued. 
 
 CUBA. 
 
 Caatoms districts. 
 
 Baltimore, Md 
 
 Alexandria, Va 
 
 Apalachicoiii, Fla 
 
 BnitiHwick, Ga 
 
 Charleston, S. C 
 
 Feruandina, Fla 
 
 Galveston, Tex 
 
 Key West, Fla 
 
 Mobile, Ala 
 
 Js'ewport News, Va 
 
 Norfolk and Portsmouth, Va. 
 
 Pearl River, Miss 
 
 Pensacola, Fla 
 
 Kichmond, Va 
 
 Savannah, Ga 
 
 All other districts 
 
 Total. 
 
 Breadstnffs. 
 
 Dollars. 
 2,000 
 
 125 
 
 465, 705 
 
 919, 922 
 
 1,387,752 
 
 Coal. 
 
 Dollars. 
 80,246 
 3,285 
 
 1,400 
 
 21 
 
 200 
 
 10, 069 
 
 24,996 
 
 460, 5U 
 
 Wood, and 
 
 manofact- 
 
 ures of. 
 
 Dollars. 
 47, 480 
 30, 460 
 8,301 
 1,936 
 3,666 
 8,488 
 
 1,183 
 55, 975 
 
 30,964 
 
 61,954 
 
 6,232 
 
 5,664 
 
 1,058,233 
 
 1, 320, 636 
 
 All other 
 atticlcs. 
 
 Dollars. 
 14,171 
 
 742 
 
 59,687 
 
 67 
 
 500 
 6, 480, 085 
 
 6, 555, 252 
 
 Total 
 
 Dollars. 
 
 , 143,897 
 
 33, 745 
 
 8,301 
 
 1,936 
 
 4, 533 
 
 8,488 
 
 1,400 
 
 526, 596 
 
 56, 175 
 
 10, 069 
 
 24,996 
 
 31, 031 
 
 61,954 
 
 6,232 
 
 6,164 
 
 8, 798, 607 
 
 9, 724, 124 
 
 DANISH WEST INDIES. 
 
 
 
 
 1,300 
 
 
 1,300 
 
 
 
 19, 524 
 1,990 
 
 
 19 524 
 
 
 
 
 16 
 
 2,006 
 
 St John's Fla . . 
 
 
 4,357 
 
 1,454 
 
 37, 832 
 
 4,357 
 
 Wilmington N. C .... 
 
 
 
 
 1,454 
 
 
 209,964 
 
 50,924 
 
 275, 779 
 
 574, 499 
 
 
 
 Total 
 
 209, 964 
 
 72,438 
 
 44,943 
 
 275, 795 
 
 603, 140 
 
 
 
 PORTO EICO. 
 
 Baltimore, Md 
 
 Brunswick, Ga 
 
 Newport News, Va . 
 Pearl River, Miss . . 
 
 Pensacola, Fla 
 
 Savannah, Ga 
 
 Wilmington, N. C .. 
 All other districts. . 
 
 Total. 
 
 640, 190 
 
 C40, 190 
 
 3,376 
 
 2,224 
 
 1,139 
 
 6,739 
 
 3,545 
 
 3,510 
 
 3,573 
 
 7,557 
 
 43, 484 
 
 231, 402 
 
 293, 071 
 
 115 
 980, 243 
 
 980, 358 
 
 3,376 
 .3,545 
 2, 224 
 3.510 
 3,573 
 7,557 
 43, 599 
 1, 852, 974 
 
 1, 920, 358 
 
 SAN DOMINGO. 
 
 Wilmington N. C 
 
 
 "^ 
 
 5,985 
 70, 608 
 
 
 5,985 
 
 All other districts... 
 
 143,633 
 
 2,677 
 
 569, 657 
 
 786, 575 
 
 Total 
 
 143,633 
 
 2,677 
 
 76, 593 
 
 569, 657 
 
 792, 560 
 

 
 100 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 Stalement showing the values of the principal and all other articles of domctlic tnerchnndise 
 
 exported, etc. — Continued. 
 
 ARGENTINE REPUBLIC. 
 
 Customs districts. 
 
 ApalachicolA, Fla . 
 
 Brunswick, Ga 
 
 rernandina, Fla... 
 
 Mobile, Ala 
 
 Pi'arl Kiver, Miss . 
 
 Pensacola, Fla 
 
 St. Mary's, Ga 
 
 Savannah, Ga 
 
 Wilmington, N. C . 
 All other districts 
 
 Total. 
 
 Wheat 
 flonr. 
 
 Dollars. 
 
 740 
 
 740 
 
 Provis- 
 iona, com- 
 
 prisiug 
 meat and 
 
 dairy 
 products. 
 
 DoUart. 
 
 49, 431 
 
 49, 431 
 
 Wood, 
 and manu- 
 factures 
 of. 
 
 Dollars. 
 
 28,289 
 
 189, 833 
 
 37, 136 
 
 25, 926 
 
 135, 582 
 
 417, 778 
 
 24, 275 
 
 45, 270 
 
 16, 793 
 
 918, 130 
 
 1, 839, 012 
 
 All other 
 articles. 
 
 Dollars. 
 
 18, 870 
 1,200 
 
 16, 796 
 
 3,997 
 
 4, 169, 365 
 
 4, 210, 228 
 
 Total. 
 
 Dollars. 
 
 28,289 
 
 208, 703 
 
 38, 336 
 
 25, 926 
 
 135, 582 
 
 417, 778 
 
 24, 275 
 
 62, 066 
 
 20,790 
 
 5, 137, 666 
 
 6, 099, 4J 1 
 
 BRAZIL. 
 
 Baltimore, Md 
 
 Brunswick, Ga 
 
 Pearl Kiver, Miss . . 
 
 Pensacola, Fla 
 
 St. Mary's. Ga 
 
 Savannah, Ga 
 
 Richmond, Va 
 
 Newport News, Va. 
 All other districts . . 
 
 Total. 
 
 1,620, 279 
 
 300, 430 
 209, 221 
 648, 423 
 
 2,778,353 
 
 214, 890 
 
 1,708 
 106, 094 
 115, 703 
 
 438, 395 
 
 50 
 82,584 
 5,108 
 53,653 
 10,114 
 11,500 
 
 325 
 221, 101 
 
 384, 495 
 
 32, 123 
 3,158 
 
 6,250 
 
 237 
 
 51,649 
 
 3, 369. 232 
 
 3, 462, 649 
 
 1, 867, 342 
 
 85, 742 
 
 5, 108 
 
 53, 653 
 
 10, 114 
 
 17, 750 
 
 302, 375 
 
 367, 289 
 
 4, 354, 519 
 
 7, 063, 892 
 
 ECUADOR. 
 
 
 
 
 30, 750 
 17,701 
 
 
 30, 750 
 
 
 28, 604 
 
 174, 592 
 
 558, 920 
 
 779, 817 
 
 
 
 Total 
 
 28, 604 
 
 174,592 
 
 48, 451 
 
 558,920 
 
 810, 567 
 
 
 
 BRITISH GUIANA. 
 
 Baltimore, Md 
 
 Brunswick, Ga 
 
 Femandina, Fla 
 
 Georgetown, S. C 
 
 Norfolk :md Portsmouth, Va. 
 
 St. Mary's, Ga 
 
 All other districts 
 
 Total. 
 
 102, 819 
 
 506, 068 
 
 COO, 487 
 
 29, 893 
 
 409, 447 
 
 439, 340 
 
 25, 200 
 3,912 
 21, 148 
 12, 130 
 
 34, 650 
 2,181 
 92, 989 
 
 192, 210 
 
 42,490 
 
 75 
 368,169 
 
 410, 674 
 
 200, 402 
 
 3,912 
 
 21, 148 
 
 12, 130 
 
 34, 725 
 
 2,181 
 
 1,377,213 
 
 1,651,711 
 
 DUTCH GUIANA. 
 
 
 
 
 2,924 
 6,985 
 
 141 
 91, 579 
 
 3,065 
 
 
 02, 821 
 
 99, 646 
 
 261, 031 
 
 
 
 Total 
 
 62, 821 
 
 99, 646 
 
 9,909 
 
 91, 720 
 
 264,096 
 

 
 THE TTNITED STATES AND LATIN AMERICA. 
 
 101 
 
 Statement showing the values of the principal and all other articles of domestic merchandine 
 
 exported, etc. — Continued. 
 
 REPUBLIC OF COLOMBIA. 
 
 Costoms distriota. 
 
 Wheat 
 flour. 
 
 Provis- 
 ions, com- 
 
 prisine 
 meat and 
 
 dairy 
 products. 
 
 Wood, 
 and manu- 
 factures 
 of. 
 
 All other 
 articles. 
 
 TotaL 
 
 Baltimore, Md 
 
 New Orleans, La 
 
 Brunswick, Ga 
 
 Fernandina, Fla 
 
 Mobile, Ala 
 
 Newport News, Va 
 
 Norfolk and Portsmouth, Va. 
 
 Pearl lUver, Miss 
 
 Pensacola, Fla 
 
 Wilmington, N.C 
 
 All other districts 
 
 Dollars. 
 
 1,185 
 
 29, 276 
 
 Dollars. 
 2, 0C2 
 14, 720 
 
 Dollars. 
 10, 797 
 51,311 
 11, 777 
 27, 935 
 13, 871 
 
 Dollars. 
 42,453 
 54,696 
 
 Total. 
 
 312, 521 
 
 590, 092 
 
 342, 982 
 
 607, 474 
 
 47, 242 
 
 20, 750 
 
 4, 736 
 
 269, 050 
 
 457, 519 
 
 *78, 187 
 *24, 890 
 
 3, 315, 058 
 
 Dollars. 
 57, 079 
 150, 003 
 11, 777 
 27, 985 
 13, 871 
 78, 187 
 24, 890 
 47, 242 
 20, 750 
 4,736 
 
 4, 486, 721 
 
 3, 515, 284 
 
 4, 923, 259 
 
 ' Bituminous coal. 
 URIJGUAT. 
 
 
 
 1,172 
 
 
 
 1,172 
 
 
 
 7,988 
 
 9,854 
 
 8,500 
 
 11, 863 
 
 136, 453 
 
 21, 115 
 
 216, 609 
 
 
 7,988 
 
 Charleston, S. C ■ 
 
 
 
 418 
 600 
 
 10, 272 
 
 
 
 
 9; 100 
 
 
 
 
 11, 863 
 
 Pensacola, Fla 
 
 
 
 
 136, 453 
 
 Savannah, Ga 
 
 
 
 5, 322 
 
 876, 648 
 
 26, 437 
 
 All other districts 
 
 
 40,888 
 
 1, 134, 145 
 
 
 
 
 Total 
 
 
 42, 060 
 
 412, 382 
 
 882, 988 
 
 1, 337, 430 
 
 
 
 
 VENEZUELA. 
 
 Newport News, Va 
 
 
 
 
 5,027 
 1, 776, 672 
 
 5 027 
 
 A 11 other districts 
 
 599. 221 
 
 554, 653 
 
 72, 763 
 
 3, 003, 309 
 
 
 Total 
 
 699,221 
 
 554.063 
 
 72, 763 
 
 1. 781, 699 
 
 3,008,336 

 
 P^RT II. 
 
 TRANSPORTATION. 
 
 103
 
 THE CARRYING TRADE OF THE WORLD. 
 
 The conditions of commerce have entirely changed within the last 
 quarter of a century. The methods of the production and distribution 
 of the results of agricultural as well as mechanical industries have been 
 completely revolutionized by the introduction of labor-saving and multi- 
 plying machinery, and those now indispensible agents of the human 
 will, electricity and steam. Our power of production has multiplied 
 much more rapidly than our capacity of consumption, and we have come 
 to the point where we must make less or sell more. The first alternative 
 is impossible; the second is imperative, and so we stand upon the 
 threshold of a new century of national life confronted with a problem as 
 serious as that of slavery, which vexed the nation thirty years ago. 
 
 PRESENT CONDITIONS OF TRANSPORTATION. 
 
 The exchange of productions between nations has come to be gov- 
 erned by two laws : that of demand and supply, and that of transpor- 
 tation. If a scarcity exists in any part of the world the news is flashed 
 under the ocean and across hemispheres to the favored point of supply, 
 and steam hurries the needed commodity to the point where it is de- 
 manded. 
 
 The merchants and manufacturers of New England and Philadelphia 
 no longer load clipper ships with merchandise they can not sell at 
 home and start them off across the seas to exchange it for such prod- 
 ucts as their customers have to offer. But the merchants in every 
 country buy what they want where they can buy it most conveniently 
 and to the best advantage. The merchant in Indiana will go to New 
 York if he can buy on better terms there than in Chicago or St. Louis, 
 and the question of transportation enters into all his calculations. 
 
 The merchants of South America do their buying upon the same con- 
 ditions. They will send to ports from which they can get the best rates 
 of freight, and the most rapid means of transportation. The interstate- 
 commerce law was passed by our Congress to relieve the shippers of the 
 United States from the same difficulty at home that they continue to 
 labor under in their foreign commerce. Other laws have been enacted 
 
 105
 
 106 TRADE AND TRANSPORTATION BETWEEN 
 
 to meet the new conditions of our internal trade, but nothing has been 
 done to increase the facilities for reaching our foreign markets. 
 
 That trade will follow lines of transportation is demonstrated by 
 every commercial center in the world, and the necessity of govern- 
 mental aid for the encouragement of commerce is recognized by every 
 nation on the earth except the United States. We apply the i)rincii)le 
 to our internal commerce, but have forbid its use in our foreign com- 
 merce during the last few years, except in two specific cases. 
 
 SUBSIDIES PAID BY ALL NATIONS. 
 
 The following table shows the amount of money paid for the encour- 
 agement of foreign commerce in the form of subsidies, bounties, and 
 for the transportation of mails by the governments named : 
 
 France '. $0,792,778 
 
 England 4,269,874 
 
 Italy 3,503,035 
 
 Germany 3, 131,610 
 
 Argentine Republic (estimated) 3,000,000 
 
 Brazil '1,700,000 
 
 Spain 1,571,035 
 
 Netherlands 775,191 
 
 Mexico 1758,000 
 
 Canada 730,000 
 
 Japan 500,000 
 
 Russia 454,306 
 
 Belgium 430,127 
 
 Austria-Hungary 363,000 
 
 Australian Colonies 280,000 
 
 Chili .. 225,000 
 
 Portugal 108,000 
 
 Trinidad 98,000 
 
 Barbadoes 90,000 
 
 Jamaica 72, 000 
 
 Various West India Islands 72, 000 
 
 New Zealand 56,000 
 
 United States (to its own ships) t48, 966 
 
 Norway and Sweden 41, 655 
 
 Guatemala 34,000 
 
 The Island of Tobago 25,000 
 
 San Salvador 24,000 
 
 Bahama Islands 18, 500 
 
 Nicaragua 16, 000 
 
 Honduras 12,500 
 
 Costa Rica 12,000 
 
 British Honduras 7,500 
 
 The several governments of Latin America are now paying $219,500 
 annually as subsidies to American 8hii)s, or more than five times as 
 much as these ships receive from their own government. 
 
 * Not including $5,500,000 bounty on immigrants. 
 
 t Not including bounty on immigrants. « 
 
 } To foreign ships, $415,954.
 
 THE TTNITED STATES AND LATIN AMERICA. 107 
 
 While all these suras are being speut by other nations to furnish the 
 means of communication and transportation to foreign lands for the 
 benefit of their merchants and manufacturers, the United States per- 
 mits its letters and its freight to be carried by foreign ships at an enor- 
 mous annual cost. 
 
 WHAT WE PAT FOREIGN SHIPS. 
 
 From the report of the United States Bureau of Statistics, which 
 gives the imports and exports for the twelve months ending June 30, 
 1889, I have compiled the number of tons of merchandise imported into 
 and exported from this country during that period. The total tonnage 
 both ways represents 19,787,000 tons. 
 
 Estimating the freight on this immense quantity of merchandise at 
 $J.O per ton (and that is probably a fair estimate, if we take into ac- 
 count all classes of goods), it shows that we paid for freight alone the 
 large sum of $197,787,000. The statistical report referred to also shows 
 that American vessels only carried 14J percent, of this amount. From 
 this it will be seen that we paid foreign ship-owners for freight during 
 the past twelve months, $169,178,850, and American ship-owners re- 
 ceived only $28,691,150. 
 
 In 1858 American vessels carried 71 per cent, of all our exports and 
 imports. In the winter of 1858 the Collins Line of steamers applied for 
 a continuance of its mail pay at the rate of $385,000 jjer annum. This 
 was refused, and a law was passed that no more than " sea and inland" 
 postage should be paid for carrying the United States mails. This 
 killed the Collins Line. England, however, during that same year 
 increased the pay of the Cunard Line from about $785,000 to nearly 
 $900,000 annually, and the preamble of the bill in the English Parlia- 
 ment increasing the amount paid gave as a reason that the competition 
 of the Collins Line made it necessary in order to maintain the line. 
 
 WHAT OUR LACK OP STEAMSHIPS COSTS US. 
 
 It is estimated that — 
 
 To foreign ships for freights and passenger* rates we pay annually an 
 average of $150,000,000 
 
 To remittances abroad for railroad and general securities other than Gov- 
 ernment interest we pay over 100,000,000 
 
 To amount expended by American tourists, and by those traveling for 
 
 other purposes in Europe, we pay '. 80,000,000 
 
 To amounts expended abroad for education we pay 4, 500, 000 
 
 To United States Treasury remittances, annually, interest on United 
 
 States bonds (at present) 5,000,000 
 
 To foreign exchange we pay more than would be believed. 
 
 Making a yearly drain of cash paid from the United States of 339, 500, 000 
 
 As an offset against this we have a return by emigration estimated at not 
 less than 59,000,000 
 
 Leaving a clear balance of outgo from the United States annually 
 of, in round numbera, over 280,500,000
 
 108 TRADE AND TRANSPORTATION BETWEEN 
 
 If we had direct and frequent steam-sbip communication with the 
 South American countries there would be no doubt or delay about the 
 arrangement of banking facilities and the extension of credits, the ab- 
 sence of which at present is a great obstacle to the extension of our 
 trade, as well as a heavy expense to our merchants. With Venezuela, 
 where we have direct steam-ship communication once in ten days, there 
 is no complaint as to the lack of banking facilities. They are just as 
 good as between any of our States, and the same would be the condi- 
 tion with other countries if we had means of communication. Take 
 Brazil, for example, where we only send a steamer once a month : Fig- 
 uriDg the exchange at three-quarters of one per cent., during the last 
 thirty years we have paid the English bankers $7,010,550 for handling 
 the remittances to pay for the products we have purchased of Brazil, 
 and, at the rate of $10 per ton, which is the average price, we have paid 
 British ship-owners, $24,464,380 for carrying these goods. 
 
 ENGLAND'S MONOPOLY OF THE CARRYING TRADE. 
 
 Great Britain now enjoys a practical monopoly of the ocean carrying 
 trade of the world, and the United States has almost entirely disap- 
 peared from competition. The reason for this is that ever since the 
 successful adaptation of steam to water transportation Great Britain 
 has pursued a policy of systematic and intelligent aid to her steamship 
 interests, while the policy of the United States has been narrow, unsta- 
 ble, and actually hostile to her merchant marine. There are now en- 
 gaged in the foreign trade under the American flag about 56 steamers, 
 representing a capital of $15,000,000 and a tonnage of 158,155; while 
 on the other hand England has a merchant marine amounting to 5,190 
 steam-vessels with a capacity of 7,304,815 tons, representing a capital 
 of $1,100,000,000. 
 
 John Cardwell, consul at Cairo, Egypt, sends some interesting figures 
 to the State Department in regard to American commerce during the 
 past year. Eecords kept at the mouth of the Suez Canal show that 
 only 3 American vessels entered Port Said during the year. Only 
 two other nations are so low in the scale, viz, Denmark, 3 ; Japan, 2. 
 England leads the list with 2,730 steamers. Then follow France, 293 ; 
 Germany, 155 ; Holland, 139 ; Italy, 109 ; Austria, 71 ; Russia, 31 ; 
 Spain, 26; Norway, 25; Egypt, 13; Turkey, 10; Portugal, 5; Sweden, 
 4. England sent 4,341,792 tons of freight, while America sent 2,149. 
 
 AMERICAN VESSELS CROWDED OUT. 
 
 The figures of our own Bureau of Statistics as well as those of all the, 
 Central and South American nations show that where there is any 
 foreign trade worth competing for, American vessels have been crowded 
 out by foreign vessels, and that the tonnage of our vessels engaged in 
 the foreign trade has gradually decreased. In 1884 we had 1,276,972 
 tons engaged in the foreign trade ; in 1888 it was 919,302 tons.
 
 THE UNITED STATES AN» LATIN AMERICA. 109 
 
 Our trade with Mexico on the Pacific iu 1888 was carried on by 212 
 American vessels. All our trade with Guatemala on the Pacific was 
 carried on by 4 American vessels. Only 2 American vessels entered Peru 
 in 1888. We only sent 19 American vessels to Chili, and all went under 
 sail. The total number of vessels clearing from all ports in the United 
 States for Chili in 1888 was 19, while 30 American vessels cleared from 
 Chili for the United States, all of them under sail. 
 
 OUR TRADE WITH CUBA. 
 
 In the trade with Cuba American vessels have the preference. In 
 1888 there were entered from that island 873 American vessels, of 
 531,206 tons, and 781 American vessels of 487,239 tons, were cleared 
 for Cuba. The number of foreign vessels, entered was 573, of 427,692 
 tons, and 307 foreign vessels, of 211,450 tons, were cleared. And yet 
 the number of American vessels in the Cuban trade was less in 1888 
 than in 1884. In 1884 there were entered at New York from Cuba 564 
 American vessels, of 301,422 tons. In 1888 there were entered at the 
 same port from Cuba 222 American sailing vessels of 98,314 tons, and 
 92 American steamers of 141,891 tons ; total, 314 vessels, of 250,205 
 tons. In 1884 there were cleared at New York for Cuba 358 American 
 vessels, of 231,476 tons. In 1888 there were cleared at the same port 
 for Cuba 140 American sailing-vessels, of 63,357 tons, and 86 American 
 steamers, of 143,355 tons ; total, 226 vessels, of 206,712 tons. 
 
 SOME SIGNIFICANT FIGURES. 
 
 As a natural result of our transportation diflBculties in 1888, we ex- 
 ported twelve times as much merchandise to England as to all the 
 South American continent, and more to Ireland than to all the coun- 
 tries on the east coast (Brazil, Argentine Republic, Uruguay, and Para- 
 guay) and Chili and Peru combined. 
 
 We exported twice as much to France as to all these countries, and 
 more to France than to all the Latin American states, with the excep- 
 tion of Mexico. 
 
 We exported to Belgium only $1,370 less than to all South America, 
 and more to Holland than to all the countries on the east coast of South 
 America ; more to Italy than Brazil, the Argentine Republic, Para- 
 guay, and Peru combined ; more to Portugal than to all the countries 
 on the west coast ; more to Spain than to Chili, Peru, Bolivia, Argen- 
 tine Republic, Uruguay, and Paraguay combined ; more to Spain than 
 to Central America, and all the nations of the Spanish Main ; more to 
 Russia than to Brazil, the Argentine Republic, Uruguay, Paraguay, 
 Chili, Peru, Bolivia, and Ecuador,
 
 110 TRADE AND TRANSPORTATION BETWEEN 
 
 II. 
 
 THE UNITED STATES POSTAL SERVICE. 
 
 In 1888 the total cost of our postal service was $58,126,004, and the 
 cost ill 1889 will be halfa million more. Nothing the Government could 
 do to promote the convenience and profit of our people in their internal 
 commerce has been left undone. Fast mails have been established be- 
 tween the East and West at an enormous expense, and no one has stopped 
 to ask whether the revenues meet the expenditures. As fast as a little 
 settlement has sprung up on the western frontier the Postmaster-Gen- 
 eral has provided mail facilities for the people, for the encouragement 
 of commerce. By the aid of Government money the people have not 
 only enjoyed frequent and regular mail communication, but the lines of 
 transportation thus encouraged and sustained have afforded them the 
 means of reaching markets for the sale of their products and the pur- 
 chase of their supplies. 
 
 POSTMASTER-GENERAL VILAS ON "THE ENCOURAGEMENT OF COM- 
 MERCE." 
 
 The late Postmaster-General Vilas recognized the necessity of " en- 
 couraging commerce and maintaining intercourse on land and upon our 
 internal waters and coast lines," but declined to afford the same en- 
 couragement to those who were striving to extend our trade in foreign 
 lands. In a report to Congress he said : 
 
 Post-Offick Department, 
 Office of the Postmasteb-Genebal, 
 
 Washington, D. C, June IG, 1886. 
 Sir : I have the honor to acknowledge receipt, on the 15th instant, of certified copy 
 of the following resolution adopted by the Senate of the United States on the 14th 
 instant, viz : 
 
 '^ Eeaolved, That the Postmaster-General be directed to transmit to the Senate a 
 statement, showing the inland water routes over which the United States mails are 
 transported, the length of each of the same, the number of trips per week, the amount 
 paid as compensation on each of said routes, and the total expenditures therefor per 
 annum, and the amount of mail-matter tran8port€4."
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 Ill 
 
 And in response thereto I transmit herewith a tabular statement showing all the 
 points of information mentioned in the resolntion except the last. These routes of 
 inland water service are each governed by peculiar circumstances, and it is impossible 
 that there can be any uniformity of rule or compensation regarding them. The car- 
 riers who render the service would, in many instances, not be found upon the route 
 at all but for the Government contract, and would in few instances be found making 
 the regular trips which the Government requires. Wherever there is either passen- 
 ger or freight traffic sufficient to keep a carrier in existence, independently of the 
 mails, the latter will be found to be generally transported at a moderate price, not- 
 withstanding the exaction by the Government of regular trips at stated hours subject 
 to deduction or fine for any omission or faihire. Higher prices are necessary on those 
 routes where the carrier would not exist, or if to bo found at all would make only 
 irregular trips, but for his employment in the i^ostal service. And as all these routes 
 are compensated at a gross or an annual rate, pursuant to contracts made under the 
 requirements of the statutes, there is no necessity for keeping an account of the 
 weights of the mail actually carried, nor any advantage to be gained suflicioutly 
 desirable to requite the cost of gathering such statistics. It is therefore impossible 
 for the Department to transmit the information required in the last phrase of the 
 resolution. 
 
 I have the honor to be, sir, very respectfully, yours, 
 
 Wm. F. Vilas, 
 
 Postmaster- General. 
 
 The President pro tempore, 
 
 United States Senate. 
 
 THE EXTENSION OF OUR INTERIOR SERVICE. 
 
 The facts concerning the extension of the domestic mail service are 
 familiar, and it is not necessary to point out the energy and industry 
 with which our transatlantic mails have been dispatched. But during 
 all these years nothing has been done to promote communication with 
 Central and South America where our most profitable markets lie. 
 The following table shows that those who have been engaged in extend- 
 ing our trade in these markets have not shared with the general public 
 the encouragement of the Government : 
 
 Tear. 
 
 Total cost of 
 mail service. 
 
 Amoaot paid 
 
 for caiiyin2 
 mails to .Span- 
 ish America. 
 
 1850 
 
 $5, 212, 953 
 19, 170, 610 
 23, 988, 837 
 36, 542, 804 
 55, 795, 357 
 
 $514, 000 
 7(i7 244 
 
 I860. 
 
 1870 
 
 799, 388 
 38, 779 
 48, 966 
 
 1880 > 
 
 1888 

 
 112 
 
 tradp: and transportation between 
 the record of forty tears. 
 
 The following: table shows the amounts of money paid annually by 
 the United States for the transportation ot mails for the last forty years 
 to vessels of all lines, and also to vessels sailing under the American flag : 
 
 Fiscal years. 
 
 Total amount 
 paid vessiils 
 of all lines. 
 
 Amonnt paid 
 
 vea.scls sail- 
 
 iiiK uiitltT 
 
 American flag. 
 
 Fiscal years. 
 
 Total amount 
 paid ve.isela 
 of all Hues. 
 
 Amonnt paid 
 vessels sail- 
 ing under 
 
 American flag. 
 
 1848 
 
 $100, 500. 00 
 
 235, 086. 22 
 
 619,923 62 
 
 1,465 818.48 
 
 1,65.',, 240. 59 
 
 1, 880, 273. 33 
 
 1, 903, 286. 36 
 
 1, 936, 714. 62 
 
 1,880,765.63 
 
 1,589,152.65 
 
 1,211,061.49 
 
 1, 204, 569. 62 
 
 8.',4, 329. 93 
 
 806, 885. 36 
 
 374, 617. 67 
 
 416,074.07 
 
 440, 440. 94 
 
 475,428.16 
 
 713, 927. 70 
 
 867, 202. 65 
 
 1, 016, 146. 19 
 
 $100, 500. 00 
 
 23.5, 08(i. 22 
 
 619, 923. 62 
 
 1,465,818.48 
 
 1 655,240.59 
 
 1, 880, 273. 33 
 
 1, 903. 286. 36 
 
 1, 936, 714. 62 
 
 1, 886, 765. 63 
 
 1, 589, 152. 65 
 
 1, 177, 303. 01 
 
 1, 075, 220. 09 
 
 707, 244. 59 
 
 570, 9,52. 86 
 
 89, 686. 04 
 
 79, 397. 05 
 
 64.356.11 
 
 66, 571. 50 
 
 245, 600. 88 
 
 411, 064. 59 
 
 625, 239. 47 
 
 1809 
 
 $1, 101, 689. 54 
 1,115,333.36 
 
 975, 024. 73 
 1, 026, 891. 26, 
 !, 044, 156. 92 
 
 988, 393. 54 
 
 976, 643. 77 
 753, 610. 02 
 a8, 896. 41 
 199, 979. 87 
 200, 026. 45 
 199, 809. 28 
 240, 066. 78 
 280, 500. 67 
 316,358.15 
 332, 221. 21 
 331,903.33 
 350, 882. 13 
 429, 036. 11 
 481, 058. 55 
 
 $757, 963. 90 
 799, 388. 90 
 699, 661. 37 
 805 788. 16 
 
 1819 
 
 1870 
 
 1850 
 
 1871 
 
 1851 
 
 1872 
 
 1852 
 
 1873 
 
 815, 400. 26 
 750 205 50 
 
 ]858 
 
 1874 
 
 18.54 
 
 1875 
 
 740, 360. 69 
 580, 062. 53 
 286, 834. 97 
 40 152 48 
 
 18.55 
 
 1876 
 
 1856 
 
 1877 
 
 18.57 
 
 1878 
 
 1858 
 
 1879 
 
 41, 251. 46 
 
 18.59 
 
 1880 
 
 38,779 89 
 
 I860 
 
 1881 
 
 42, 552. 13 
 
 1861 
 
 1882 
 
 40 645 42 
 
 1862 
 
 1883 
 
 48, 076. 58 
 
 1863 
 
 1884 
 
 53, 169. 92 
 
 1864 
 
 1885 
 
 49,048.01 
 43,318.81 
 
 1865 
 
 1886 
 
 1866 
 
 1887 
 
 76, 727. 28 
 
 1867 
 
 1888 
 
 86, 890. 45 
 
 1868 
 
 
 
 
 
 ENCOURAGEMENT OF COMMERCE BY LAND. 
 
 For a single fast mail-train between New York and Springfield the 
 New York, New Haven and Hartford Kailroad receives the sum of 
 $17,647 annually, or as much as is paid to all the American steam-ships 
 that ply between our ports and those of South America. 
 
 A similar amount is paid for special mail facilities between Baltimore 
 and Hagerstown, Md., between Richmond, Va., and Quantico, Md., be- 
 tween Charleston and Florence Junction, S. C. ; between Jacksonville 
 and Sanford, Fla., and between Sanford and Tampa in the same State. 
 
 For special mail facilities between Charleston and Savannah the sum 
 of $19,710 is annually paid; $20,075 for a similar service between Wil- 
 mington and Florence, N. C; $20,000 between Philadelphia and Bay 
 View; $21,000 between Bay View and Quantico, Md. ; $31,298 between 
 Savannah and Jacksonville ; $29,577 between Wilmington and Weldon, 
 N.C., and 25,000 between Albany and New York City. 
 
 EXPENDITURES FOR SPECIAL MAIL FACILITIES. 
 
 The annual appropriation for this special service, which is simply to 
 hasten the carriage of the mails at a greater speed than the ordinary 
 passenger trains give between the places named, for the convenience of 
 the patrons of our postal system, amounts to over $300,000 a year, while 
 only the paltry sum of $48,966, or within a few dollars of the amount 
 expended for this service between Weldon and Florence, N. 0., is ap-
 
 THE UNITED STATES AND LATIN AMERICA. 113 
 
 jiropiiatcd to promote communication between the United States and 
 all Spanish America, including Mexico and the West India Islands. 
 
 Great liberality is shown in making provisions tor communication 
 by stagecoach between the frontier settlements of the West. The an- 
 nual expenditure for this service exceeds five millions of dollars, the 
 number of routes in 1888 being 14,146, of an aggregate length of 225,600 
 miles, while the ocean steam-ships receive only $49,000 for a service of 
 1,981,309 miles. The stage-coaches received 6 cents per mile for the 
 distance they carried the mails, but the ocean steamers, which cost in- 
 finitely more to maintain, received only 2 cents per mile. No one con- 
 tends that the star-route service is self-supporting. The revenues from 
 it amount to only a small fraction of its cost, and the money is paid from 
 the public treasury simply to maintain necessary communication. The 
 ocean service is not only self-supporting, but the Government received, 
 a profit of two cents and a half upon every letter carried while the 
 steamers receive only a similar amount — one half the value of the stamp 
 each letter bears. 
 
 If the same principle were applied to the stage-coaches and the in- 
 land steamers, or even to the railroads, a large proportion of the towns 
 in the thinly settled sections of the country would be entirely destitute 
 of mail facilities. 
 
 The merchants engaged in trade with Central and South America 
 simply ask the same advantages given the merchants in the far West. 
 
 THE INLAND STEAM-BOAT SERVICE. 
 
 During the year 1888 the sum of $438,942 was expended for the in- 
 land steam-boat service. The number of routes was 127, of an aggregate 
 length of 11,058 miles, and an annual travel of 3,216,000 miles. The 
 cost per mile was 13.6 cents, while the ocean steamers received but 2 
 cents per mile. The inland steamers do not receive a certain amount — 
 2^ cents per letter — but are permitted to bid for the service. There is 
 no competition, and if the bids are reasonable they are accepted. 
 
 Before taking up the inland steam-boat service by items, it is well to 
 recall what is paid for mail transportation to Central and South Amer- 
 ica. Last year the Pacific Mail Company for a service of 681,887 miles 
 received $22,688. The "Red D" line for a service of 158,000 miles re- 
 ceived a sum of $6,084 ; the Brazilian Mail Sleam-ship Company for a 
 service of 140,000 miles received but $11,733, while the Ward Steam- 
 ship Line for a service of 128,960 miles received but $195. 
 
 INLAND STEAMERS PAID BY DISTANCE. 
 
 The shippers engaged upon the inland waters of the United States 
 and in the coasting trade are treated by the Post-Office Department 
 like the railroads and stage-coaches, and paid for the service performed 
 under contracts which are awarded to the lowest bidder. But if a ves- 
 sel be engaged in the foreign trade the owner is obliged to take the 
 S. Ex. 54 8
 
 114 TRADE AND TRANSPORTATION BETAVEEN 
 
 mails and carry them to their destination at 2^ cents per letter, regard- 
 less whether the destination is 50 or 5,000 miles. 
 
 American steam-ships engaged in the foreign trade will never be fairly 
 paid until their compensation is reckoned by the length of the voyage 
 instead of the number of letters carried, and capitalists will not invest 
 their money in ships until contracts for the transportation of mails are 
 made for more than a single year. When the rates of foreign postage 
 were reduced under the treaty of Berne, under the International Postal 
 Union, no one expected that the reduction would be made at the expense 
 of the steam-ship owners, but such is the fact. Before the adoption of 
 uniform postage laws, letters were paid for according to the distance 
 they were carried, and not by their weight, and a vessel got 25 cents for 
 taking a letter to Australia or the Argentine Republic, where now it 
 only gets two cents and one-half. The interstate commerce law pro- 
 hibits railroad owners from charging as much for a short haul as a long 
 haul, and the compensation given to the stage-coaches in the West is 
 measured by the distance they travel and the cost of the trips. Still 
 the Government of the United States refuses to recognize this principle 
 in paying for its foreign mails, but insists that a steamer shall be paid 
 no more for a long haul than for a short haul when it carries the mails 
 
 STATEMENT OP WILLIAjVI H. T. HUGHES. 
 
 This inconsistency in our Congress which does everything possible to 
 iencourage domestic and nothing whatever to encourage foreign trade, 
 is bitterly complained of bythemerchants who are endeavoring to iind 
 markets in Spanish America for our surplus products. Speaking on 
 this point, Mr. William H. T. Hughes, of the firm of James E. Ward & 
 Co., said : 
 
 Unless some arrangement is made by tbe Government to establish regular and fre- 
 quent steam-ship communication -with South America, it is absolutely impossible to 
 increase our trade with those countries to the extent that it can and ought to be done. 
 
 The system pursued by foreign Governments is entirely antagonistic to all American 
 steam-ship lines engaged in foreign trade. It is not a question of individuals lighting 
 individuals, but it is a question of Government versus Government. Take, for 
 instance, our own line to Havana and Mexico. We are running in competition with 
 the Compania Transatlantica, whose steamers receive from the Spanish Government 
 about $1,750,000 per annum in subsidies. 
 
 The present system of payment for carrying foreign mails is not only unfair, but 
 absolutely mean. To give you an idea of the compensation paid for carrying mails I 
 quote from a letter received from the Acting Superintendent of Foreign Mails, dated 
 July 25, 1889 : " I have to inform you that the Postmaster-General has recognized the 
 services of the American steamers Santiago, City of Washington, Saratoga, Xiagara, 
 Cienfuegos, City of Alexandria, Manlmttan, City of Columbia, City of Atlanta, and 
 Seneca, of the New York and Cuba Mail Steam-ship Lino, in transporting the United 
 States mails from New York to Cuba and Mexico during the quarter ended June 30, 
 1889, at (he sum of $3:34.80." It is unnecessary to say anything farther. You can 
 readily seo that on such liberal pay not many dividends could be declared. 
 
 The subsidies granted by the Spanish Government to steamers plying to Caban 
 ports have had the natural effect of lowering rates of freight to such an extent that, 
 notwithstanding the geu»-r;il advance in freights all over the world within the last 
 year, we are to-day carrying goods in small lots to Cuban ports at a less rate than a 
 steamer can be chartered to make the voyage.
 
 THE UNITED STATES AND LATIN AMERICA. 
 AMOUNTS PAID TO INLAND STEAMERS. 
 
 115 
 
 The following statistics will demonstrate how the law operates and 
 its iDJiistice to American ships engaged in the foreign trade compared 
 with the treatment of steam-ships upon the inland waters: 
 
 state. 
 
 Maine 
 
 New Hampshire 
 Massachusetts .. 
 
 Rhode Island 
 
 New York 
 
 Maryland 
 
 Virginia 
 
 North Carolina.. 
 South CaroliHa . 
 
 Georgia 
 
 Florida 
 
 Alabama 
 
 Mississippi 
 
 Kentucky 
 
 Ohio 
 
 Michigan 
 
 Wisconsin 
 
 Missouri 
 
 Arkansas 
 
 Louisiana 
 
 Texas 
 
 Washington 
 
 Oregon 
 
 California 
 
 Alaska 
 
 Distance 
 traveled. 
 
 Amount 
 paid. 
 
 Service. 
 
 MiUs. 
 
 
 
 384 
 
 $5, 894 
 
 Six months. 
 
 147 
 
 3, 325 
 
 Do. 
 
 89 
 
 12, 093 
 
 Do. 
 
 83 
 
 12, 707 
 
 Do. 
 
 220 
 
 11,096 
 
 Do. 
 
 1,119 
 
 13,518 
 
 Four months. 
 
 737 
 
 36, 021 
 
 Twelve months. 
 
 426 
 
 12, 863 
 
 Do. 
 
 99 
 
 2, 214 
 
 Do. 
 
 12 
 
 COO 
 
 Do. 
 
 867 
 
 79, 636 
 
 Six months. 
 
 647 
 
 9,350 
 
 Do. 
 
 476 
 
 5, 900 
 
 Twelve months. 
 
 674 
 
 24, 879 
 
 Do. 
 
 127 
 
 9,000 
 
 Do. 
 
 203 
 
 5,176 
 
 Six months. 
 
 85 
 
 410 
 
 Do. 
 
 173 
 
 7,000 
 
 Twelve months. 
 
 700 
 
 44, 500 
 
 Do. 
 
 1,084 
 
 42, 240 
 
 Do. 
 
 39 
 
 576 
 
 Do. 
 
 955 
 
 54,701 
 
 Do. 
 
 154 
 
 11,074 
 
 Do. 
 
 403 
 
 16,944 
 
 Six months. 
 
 1,050 
 
 18,000 
 
 Two trips per month. 
 
 AN EXAMPLE OF INCONSISTENCY. 
 
 Previous to 1885 the Havana mails were included in the foreign serv- 
 ice and cost $7,143. That year they were transferred to what is called 
 the inland steam-boat service, and $58,339 is now paid to the steamer 
 that carries them from Tampa via Key West to Havana. This is just 
 $10,000 more than is paid by the United States Government to the 
 ships of all nations to carry mails to all the parts of this hemisphere. 
 This steamer Mascotte, for a voyage of but 366 miles, receives two-thirds 
 as much money annually as is paid to all the other American ships that 
 float upon all the oceans of the world. Previous to this the average 
 annual cost of the Key West service for seventeen years was about 
 $47,000. Were these same terms offered to other ocean steamers the 
 Stars and Stripes woiild not be so rare a sight in the harbors of other 
 lands. 
 
 During the last year the Post-Office Department paid $44,500 for the 
 transportion of the mails on the rivers of Arkansas, and only $13,715 
 for the transportation of mails to Japan ; $.54,701 on the rivers of Wash- 
 ington Territory, and only $42,593 to all the Asiatic and Australian 
 ports. We paid $79,637 for carrying the mails on the rivers of Florida, 
 but only $47,997 for sending them to all Central and South America 
 and to the entire West Indies, with the exception of Havana. We paid 
 ,,879 on the Ohio Kiver between Paducah and Louisville; $101,566
 
 116 TRAD?: AND TRANSPORTATION BETWEEN 
 
 to subsidized stage-coaches in Nevada; $239,568 in Washington Terri- 
 tory; $103,893 in Idaho, and $417,000 in Colorado, and but $89,890 to 
 encourage American steamers all over the world. 
 
 MAIL FACILITIES PROVIDED FOR SUMMER RESORTS. 
 
 During the summer season of 1888, in order that tDe good people who 
 go to Xanlucket and Martha's Vineyard might get their letters regu- 
 larly, the Government of the United States paid a subsidy amounting 
 to $12,093. This for five months. During the same time it paid $4,885— 
 a little more than one third as much — to build up a trade with Brazil. 
 The little steam-boat on the Androscoggin lakes would have received 
 a third more than the Red D line 'to Venezuela had it kept going the 
 entire year, but it stopped when the summer boarders went home, and 
 was satisfied with a subsidy of $3,700 for four months, while the Vene- 
 zuela line got $6,000 for twelve months. 
 
 The excursion boat that plies between Watkins Glen and Geneva, 
 N. Y., got twice as much in 1884 as the Venezuela steamers, and the 
 ferry between Norfolk and Cape Charles got as much last year alone as 
 the Red D Line has received in five years. The steamers of the Chesa- 
 peake Bay and its tributaries get $49,539 annually, or more than is paid 
 to all the Central and South American lines, while the boat between 
 iSToiforlk and Baltimore got $13,518 or $2,000 more than the line to Bra- 
 zil. The coastwise steamers got $563,000 last year for less than 500,000 
 miles traveled, which is more than $1 a mile, while the steamers to 
 South America and the West Indies traveled more than 2,000,000 miles, 
 and got less than $48,000, 2 cents and 4 mills a mile. 
 
 SOME "odorous" comparisons. 
 
 During the fiscal year of 1889 the Government of the United States 
 paid $48,996 to sustain our commerce with all of the countries in Cen- 
 tral and South America. Of this sum the Pacific Mail Steam-ship 
 Company received $22,688 ; the Brazilian Mail Steam ship line $11,733 ; 
 the " Red D " line $6,084, and the several steamers from New Orleans 
 to Centnil America $3,893. These four steam-ship lines, which consti- 
 tute our entire communication with Central and South America under 
 the American flag, traveled a distance of 2,052,686 miles, which was 
 just about 2 cents a mile. At the same time the coastwise steamers re- 
 ceived $563,000 for sailing less than 500,000 miles, which is at the rate 
 of more thnn $1 a mile. During the same year we ])aid $12,783 to carry 
 the mails on the rivers of North Carolina, which was $950 more than 
 was received by the line to Brazil. 
 
 We paid $79,636 to carry the mails on the rivers of Florida, which 
 was $31,041 more than was paid for the entire service to Central 
 America. 
 
 We paid $24,870 to carry the mails on the rivers of Kentucky, which
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 117 
 
 was $2,200 more than the Pacific Mail Steam-ship Company received 
 for its entire service to Central and South America. 
 
 We paid the little steam-boat that runs between Louisville and 
 Evansville $10,000 for its services for the fiscal year ending June 30, 
 1888, or very nearly as much as was paid to the Brazilian line ; while 
 the line running between Evansville and Paducah, Ky., got $10,879. . 
 
 The steam-boat that runs between Cairo and Elmont, Ark., received 
 $1,000 more than was paid to encourage commerce with Central Amer- 
 ica. 
 
 The steam-boat running between ]!iew Orleans and Partridge re- 
 ceived $300 more than was paid to the line to Brazil, and the steam- 
 boat between Tacoma and Port Townsend, Wash., got $29,700, which 
 was more than was paid to both the Pacific Mail and the Red D Line, 
 and more than twice as much as was paid to encourage commerce be- 
 tween San Francisco and Japan. 
 
 We paid $44,500 for mail transportation on the rivers of Arkansas, 
 and $42,240 on the interior rivers of Louisiana, while we paid but 
 $42,593 for our entire service upon the Pacific Ocean. 
 
 We paid $54,701 for mail service on the rivers of Washington Terri- 
 tory, or nearly tbree times as much as was paid to encourage com- 
 merce with Australia. 
 
 The following statement shows the cost of transportation of mails 
 upon the star routes and inland steam-boats of the United States as 
 compared with our ocean service on all American steamers during the 
 last five years : 
 
 Routes. 
 
 1884. 
 
 1885. 
 
 1886. 
 
 1887. 
 
 1888. 
 
 
 $5, 089, 941 
 
 596, 573 
 
 53, 169 
 
 $5, 414, 804 
 563, 002 
 49,048 
 
 $5, 900, 000 
 
 615, 000 
 
 43, 318 
 
 $5, 850, 000 
 575, 000 
 76, 727 
 
 $4,959,192 
 
 438, 942 
 
 86,890 
 
 
 Ocean service 
 
 
 COMPLAINTS CONCERNING OUR STEAMSHIP SERVICE. 
 
 There is a great deal of complaint from most of the Central and South 
 American ports ^bout delays in the transjiortation of the mails to and 
 from the United States. Under a sarcastic title of "A Great and Pro- 
 gressive Country," the Panama Star and Herald in a recent issue says: 
 
 The little steamer Lucy P. Miller left New Orleans on Sunday, 7th iust., and arrived 
 at Colon on the 14th. It was reasonable to expect a mail by this direct arrival from 
 the great and progressive United States of North America, seeing that so much has 
 been said by the Post-Office Department at Washington about the splendi^ facilities 
 for quick dispatch for Central and South America via New Orleans. But the public 
 is doomed to disappointment. Only one small bag of mail matter, mostly newspa- 
 pers, was brought by the Lucy F. Miller. The previous mail from the States came 
 via Jamaica, and included dales up to about January 20. It is diflScult to foretell 
 with any degree of certainty when or from what point of the compass the next mail 
 may arrive. If it could be expected that so lofty an official being as the Postmaster-
 
 118 TRADE AND TRANSPORTATION BETWEEN 
 
 General of the aforesaid great and progressive United States of North America conld 
 descend so low as to consider the requirements of a whole continent that is dependent 
 upon the high and mighty official whim it would seem possible that the present 
 shameful disregard of the necessities of the public might be brought to an end. 
 
 THE HAVANA MALLS. 
 
 A recent number of the New York Times, which is opposed to " sub- 
 sidies," contains the following: 
 
 The postmaster at Havana, Cuba, has been called upon by the Havana Boletin Co- 
 mercial to demand from the post-ofSce authorities at Washington a remedy for delays 
 in the transition of mail matter from the United States to Cuba. It was stated in 
 the article, which was published on April 21), that sixty bags of delayed mails had 
 arrived on the steamer Mascotte, and that no mails had been received during the pre- 
 vious eight days, owing to the lack of transportation. " It is outrageous," the article 
 further says, " that it should take from eight to ten days for a letter mailed at New 
 York to reach Havana." 
 
 THE MAILS TO THE WEST COAST. 
 
 The New York Herald, which is also opposed to subsidies, in a recent 
 issue, remarks : 
 
 Take for example the mails for Callao and Valparaiso. They formerly went by the 
 Pacific Mail steamships direct to Colon at regular intervals, and thence across the 
 Isthmus to Panama, where they seldom failed of a speedy connection with the British 
 Pacific Steam Navigation Company's vessels down the South American coast. Now 
 they go to Jamaica and await opportunity there to get to Colon by the Royal Mail 
 steamships which touch at Kingston on their way from England to the Isthmus, or 
 by any tramp sttamer that may come along. The consequences are frequent failure 
 of connections, much irregularity in the receipt of mails from New York at the west 
 coast i)orts, and detriment to trade. There are electric cables, to be sure, to which 
 resort can be had, but their rates are so high (several dollars per word) to the South 
 Pacific that they are not available as a substitute for regular postal communication, 
 by reason of the expense, apart from other considerations. 
 
 THE MAILS TO CHILI AND PERU. 
 
 The New York Tribune of a late date contains the following: 
 
 Daniel H. Davis, of No. 19, South William street, representing Davis Brothers, of 
 Linja, Peru, yesterday showed an envelope which had contained a letter to his house 
 in Peru, and which is ample testimony of the inefficiency of the mail service between 
 New York and that country. The post-mark on the envelope indicates that it was re- 
 ceived at the New York post-offico April 13, and as the foreign mail post-office schedule 
 had announced that the steamer Foxhall, sailing from New Orleans, would transport 
 all mail received on thafc date it was marked "viaNew Orleans." The letter reached 
 New Orleans April 16. On April 19 it was returned to New York, where it remained 
 in the post office until the next mail steamer from this port for South American points, 
 and finally reached Lima on May 26, occupying forty-three d-ays in traveling a dis- 
 tance ordinarily covered iu twenty days. • Mr. Davis brought the matter to the at- 
 tention of Postmaster Pearson, by whom he was informed that " owing to quarantine 
 regulations the steamship Foxhall had in the mean time discontinued her trips from 
 that port to Colon, thus necessitating the return of your letter, with other corre- 
 spondence similarly addressed, to this office for dispatch via Kingston, Jamaica." 
 "Luckily the envelope merely contained tissuecopies of letters dispatched by a pri- 
 vate means," said Mr. Davis yesterday ; " but this is only one instance of many."
 
 THE UNITED STATES AND LATIN AMERICA. 11^ 
 
 On one occasion I had worked late into the night to prepare my mail for a steamer 
 of one of the fruit lines by which the mails were advertised to be sent the following 
 day. The next morning I learned upon scanning the post-ofiQce schedule that the 
 sailing of that steamer had been indefinitely postponed. After the usual red-tape 
 process I was permitted to withdraw my letters and sent them in another way. Most 
 of the mails for Southern Pacific ports are shipped from here to Jamaica by steamers 
 of the Atlas or Wessell lines, the latter of which is very irregular in its sailings, and 
 the passage consumes about seven days. At Jamaica the bags are held over from one 
 to fifteen days to await the touching at that port of a vessel of the Royal Mail or 
 some other of the foreign lines stopping there en route to Colon. Thus all the impor- 
 tant mail matter destined to the thirty-eight ports between Panama and Valparaiso 
 touched by the steamers of the Pacific Steam Navigation Company is left for an in- 
 definite period of time at Jamaica to trust to the arrival sooner or later of some for- 
 eign vessel to give it another lift. I have no interest in the Pacific Mail Steamship 
 Company, but I think, for the preservation of the commerce of South America with 
 this country, which has been so much courted, that the Postmaster-General should 
 give the Pacific Mail people a fair compensation for carrying the mails, and that a 
 law should be passed compelling that company to carry them. At present our mail 
 is confided to private hands to be carried to Panama and it is there posted to its des- 
 tination. 
 
 Michael Grace, of W. R. Grace & Co., said that his firm had long since given up as 
 hopeless the making of complaints regarding the mail service to the South Pacific 
 coast and had started a little mail route of their own. Their letters are inclosed in a 
 private bag and intrusted to the care of a passenger on a Pacific mail steamer or a 
 private messenger and posted at Panama. 
 
 Joseph Agostini, of No. 20 Beaver street, sends his mail by "Wells, Fargo & Co.'s 
 express to Panama, as do De Castro & Co., of No. 54 William street. The average 
 cost of transmission in this way is about 30 cents a letter as against 5 cents' postage 
 from New York. De Castro & Co. complain that the delay in the transmission of 
 their letters when they used the mails caused considerable loss to them owing to the 
 strict regulations in vogue in South American custom-houses. Because the invoices 
 were not on hand when the goods arrived the customs authorities placed valuations 
 on them of from 10 to 20 per cent, in excess of their actual value and the consignees 
 held the consignors responsible for the difference. 
 
 APPEAL OF THE GULF STATES MERCHANTS. 
 
 In May, 1886, the commercial bodies of the several Gulf ports of the 
 United States i)resented a memorial to the Postmaster-General, which 
 represents the view of the people of that section with regard to the dis- 
 advantage under which they suffer, because of our limited and irregu- 
 lar mail facilities. This memoral was as follows : 
 
 Hon. W. F. Vilas, 
 
 Postmaster-General of the United States : 
 
 Sir: Your memorialists, undersigned, would respectfully state that they have 
 been delegated to represent a maritime interest of great positive and prospective im- 
 portance, but to which increased and adequate facilities of commercial correspond- 
 ence and intercourse are indispensable. , 
 
 The Gulf front of this Republic constitutes the ocean boundary of the last tier of 
 Southern States. It extends to the boundary of Mexico, a distance of 1,500 miles. 
 Its principal ports are deep, capacious, safe, and adequate to the demands of any extent 
 of commerce. These ports have an aggregate population of half a million and export 
 little less than half the values exported by the whole Republic. 
 
 This Gulf front confronts all the chief ports of the Atlantic side of the American
 
 120 TRADE AND TRANSPORTATION BETWEEI^ 
 
 continent, its islands/and its isthmus. These Gulf ports communicate with the wet<t- 
 ern interior of the Union by the Mississipjii River and its 18,0U0 miles of uavigublo 
 tributaries, by the Alabama and the Chattahoochee Rivers, as also by a system of 
 railroads which concentrate at New Orleans alone, 7,000 miles of lineal rail, and fur- 
 nishes to Galveston, Mobile, and Pensacola complete communication with the same 
 interior; thus all these ports are in regular mail and commercial correspondence with 
 over 130,000 miles of American railroad, and are especially and directly connected 
 with the great western commercial centers of Kansas City, St. Louis, St. Paul, Min- 
 neapolis, Milwaukee, Chicago, Detroit, Cleveland, Cincinnati, and Louisville, and 
 also with the whole of Canada West, now filling so rapidly with population, indus- 
 try, and wealth. 
 
 We will not tabulate the agricultural and manufacturing productions of this im- 
 mense interior, but we maj' remark that it is the anxious inquiry of every civilized 
 nation how the foreign market may be found for the productive surplus with which 
 it is burdened. Happily this Republic is not under the necessity of acquiring such 
 foreign market by conquest or by colonization. We occupy the temperate region of 
 a continent whose tropical products lie at our side. The Gulf front ports are the 
 gates through which this complimentary and reciprocal commerce should be con- 
 ducted. 
 
 VALUE OF THE COMMERCE. 
 
 Already this commerce has attained large proportions. The foreign trade of the 
 tropical and semi-tropical regions is estimated at a little less than $1,000,000,000; 
 their aggregate population at 50,000,000. The commerce of the United States with 
 these countries amounts to about $250,000,000. The necessity and the material for a 
 direct interchange of commodities between these producers and consumers has been 
 demonstrated. It would, therefore, be supposed that the intercourse between them 
 would be intimate and unlimited, yet such is not the fact. An analysis of the articles. 
 of which our existing trade is composed undoubtedly comprehends cereals and ani- 
 mal food, much of which must have been derived from the western regions specified 
 in this paper. We can even find in the manifest of cargoes shipped from our easteru 
 Atlantic ports for Brazil goods from Illinois, Michigan, Indiana, Kansas, and even 
 from Louisiana, on the shores of the Gulf of Mexico. This proves that the interior 
 West is compelled to conduct its tropical exports over Eastern ways and around dis- 
 tant and dangerous coasts at an enhanced cost of time, freight, and insurance, and to 
 the detriment of its own longitudinal transportation by rail and river, which would 
 be the proper carriers of their tropical trade by way of the Gulf ports. A general 
 proof of this abnormal disturbance of the laws of trade may be found in the general 
 fact that New Orleans, the principal Gulf port proper for conducting the commerce of 
 the West, has found her export of flour declined from ()00,000 to 32,000 barrels, whilst 
 St. Louis and Minneapolis send almost all their flour for foreign export across the 
 Mississippi for Eastern shipment. 
 
 Another evidence of this perversion of trade is found in the following fact: Ac- 
 cording to the proportion of coffee and sugar consumed per capita by the people of 
 the United States, the population of the western interior would be entitled to about 
 two-fifths of the whole import of those articles. 
 
 TRADE OF THE GULF PORTS. 
 
 Assuming the coffee annually imported into the United States at 5,000,000 sacks, 
 2,000,000 thereof ought to be imported through the Gulf ports. It does not, how- 
 ever, >»^ppear that they received more than one-half million sacks, the greater part of 
 which is imported through New Orleans, though that port exports no Western produce 
 whatever in exchange. The j)roportion of the sugar imported through the Gulf ports 
 is also small, while the dry hides, furniture, and medicinal woods, so valuable to the 
 growing manufactures of the West, are imported almost entirely through the easteru 
 Atlantic ports. We may add to these evidences of a perverted trade that the whole
 
 THE UNITED STATES AND LATIN AMERICA. 121 
 
 correspondence and travel between tbe reciprocal regions treated of are compelled to 
 sei'k the same indirect mode of communication. Now, if instead of the indirect 
 counounication between our western interior and South, Central, and Mexican Amer- 
 ica, the lines and direct longitudinal connection were extended by ocean steam, the 
 time and cost of this commerce would be greatly economized and its profits placed 
 with the inland carriers, to whom it justly belongs. 
 
 Would it not appear that, with perfected facilities for delivering the products of 
 our own region and distributing those of the tropics — with Havana and Vera Cruz 
 witbin two and a half days, and Panama within five and a half, of the port of New 
 Orleans — that this connection would be made with the celerity of an electric circuit t 
 
 What, however, is the commercial fact t That the whole foreign export trade of 
 the Gulf ports in Western produce has dwindled to insignificance, whilst the imports 
 of tropical goods are wholly inadequate to the supply of the population geograph- 
 ically dependent upon them. We may give the fact that in the construction of the 
 ship-canal at Panama the Western provisions, work animals, and other supplies 
 chiefly of Western production, have been furnished to the contractors from eastern 
 Atlantic ports and even from Europe, so that, with the exception of some lumber 
 dispatched from the Gulf ports of Pensacola, Mobile, and New Orleans, little of the 
 material furnished by our Western interior for the construction of this vast inter- 
 oceanic work has been derived directly from the natural source of such supplies, but 
 has been exported by the indirect route which we have described. Suppose, for ex- 
 ample, we say that with proper overland and ocean facilities the city of Winnipeg, 
 on the Red River of the Norih, could be placed within seven days of Panama, is it just 
 to condemn our great Western cities and centers to employ opposition land lines to 
 an Eastern port of tropical commerce, actually longer than the land line to New Or- 
 leans, a point directly on their way to that tropical commerce? 
 
 WHY THE GULF PORTS ARE BLOCKADED. 
 
 Do you ask a solution of this extraordinary blockade of our Gulf ports and perver- 
 sion of its legitimate trade, travel, and correspondence ? 
 
 It is to be found in the want of regular and adequate ocean steam postal service 
 connecting the Gulf ports of the United States with those of the tropical regions 
 of this continent. 
 
 That the people of the interior are not to blame for apathy upon this subject is 
 shown by the conquest of a wilderness, their contribution to the wars and wealth of 
 the Republic, and by the construction of some thousands of millions of dollars' worth 
 of railroads. They have done their part on land. But they are not amphibious; 
 they have not the capital nor the experience essential to build up a maritime inter- 
 est without some aid and instruction. Congress has power " to regulate commerce 
 between the States and with foreign nations," and to " establish post-ofiices and post 
 roads." 
 
 Having thus made known to you, honorable sir, the fatal obstruction of direct 
 trade between the interior west and the tropics, with the obvious mode of its re- 
 moval, we have respectfully to submit that we need the establishment of a line of 
 ocean postal steamers to run semi-monthly between the Gulf port of New Orleans and 
 some port in the Windward Islands (W. I.). And we have respectfully to ask your 
 recommendation to Congress for the same, upon such terms and schedules as in your 
 official duty, judgment, and patriotism your may deem proper. 
 
 Respectfully submitted. 
 
 Wm. M. Burwell, of New Orleans. 
 RoBT. C. Wood, of Louisiana. 
 S. C. Cobb, of Pensacola. 
 D. McRae, of Arkansas. 
 
 Washington, D. C, May 22, 1886.
 
 122 TRADE AND TRANSPORTATION BETWEEN 
 AN APPEAL FEOM SAN FRANCISCO. 
 
 There has recently been held iu San Francisco a conference of busi- 
 ness men to consider the best means of extending trade on the Pacific 
 coast. Among other reports presented was one on the subject of estab. 
 lishiug and maintaining permanent ocean mail steamship lines. The 
 first reference was to the mail service of San Francisco and Vancouver 
 with China and Japan. The Canadian Pacific three steamers are sub- 
 sidized at the rate of nearly $38,000 per round trip for each steamer, 
 while the eight steamers of the two American companies running from 
 San Francisco are allowed $400 apiece for the round trip. The report 
 declares that the statement of the fact is enough to condemn the parsi- 
 monious conduct of our Government in respect to the ocean commerce, 
 and to excite admiration for the liberal and progressive policy of Eng- 
 land and Canada. 
 
 Among other striking features presented is the fact that the Austra- 
 lian and New Zealand mails to and from San Francisco are carried by 
 the American Steamship Company, which receives $24,000 yearly from 
 the Hawaiian Government, $200,000 from the Australian and New 
 Zealand, and about $4,000 from the United States, which latter sum 
 has lately been increased to $47,000, owing to dissatisfaction of the 
 New Zealand Government. 
 
 Kesolutions were submitted, calling upon Congress to enact the nec- 
 essary laws and appropriate a sufficient sum of money to enable Amer- 
 ican steam-ship lines to compete with the foreign subsidized lines run- 
 ning to China and Japan, South American points, New Zealand and 
 Australia, and Mexican, Central American, and British Columbian 
 l)oints. Resolutions also favor the adoption of the French scale of 
 navigation construction, naval bounties. for ships, provided that the 
 ahips be built with a view to being enrolled in the naval reserve list.
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 123 
 
 III. 
 
 HISTORY OF OUR FOREIGN MAIL SERVICE. 
 
 Previous to 1845 the United States had no regular mail service on 
 the ocean, but letters were sent upon sailing-ships that happened to be 
 bound for the ports to which they were addressed. 
 
 On the 3rd of March of that year, however, an act was passed by 
 Congress authorizing the Postmaster-General to make contracts with 
 the owners of American vessels, steam-ships preferred, for terms of not 
 less than four nor more than ten years, for the regular transportation 
 of mails upon the sea. The rates of compensation as fixed by the law 
 were as follows : 
 
 For each letter or package weighing not more than one-half ounce 
 to France or England, or any other country not more than 3,000 miles 
 distant, 24 cents, with the inland postage added if the letter were mailed 
 at any interior i^ost-oflSce. 
 
 Upon letters and packages weighing more than one-half ounce and 
 less than one ounce, 48 cents, and 15 cents for each one-half ounce ad- 
 ditional. 
 
 Upon letters and packages for the West India Islands or the ports 
 (m the Gulf of Mexico, 10 cents, with double postage if they exceeded 
 one-half ounce, and 5 ceuts for every half ounce additional, with the 
 inland postage added if they were mailed at an interior post-ofifice. 
 
 Upon newspapers and other second-class matter the rate was 3 cents 
 per ounce to all ports, with inland postage added. 
 
 For distances greater than 3,000 miles these rates were doubled. 
 
 TEN years' contracts IN 1845. 
 
 Under the authority of this act the Postmaster- General entered into 
 n contract for ten years with "The Ocean Steam Navigation Company" 
 for the transportation of the United States mails to Southampton, 
 Havre, and Bremen. The arrangement went into effect in 1848, and 
 under it the following suras of money were annually paid: 
 
 Tear. 
 
 Amount. 
 
 Year. 
 
 Amonnt. 
 
 1848 
 
 $100, 500 
 200, 000 
 200, 000 
 16(5,416 
 200, 000 
 
 1853... 
 
 $183, 333 
 183, 333 
 200.000 
 200 000 
 
 1849 
 
 1854 
 
 1860 
 
 1851 . 
 
 1855 
 
 1856 
 
 1862 . . ■- 
 
 1 857 
 
 200 000 
 
 
 ., ., -. . . 
 

 
 124 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 And it may be said that daring the last year the entire sum paid for^ 
 the transportation of mails to all ocean ports was only a little more 
 than double the amount paid for the service to these three ports in 1849, 
 although the foreign commerce of the United States has increased from 
 $293,000,000 in 1849 to $1,525,603,000 in 1888. 
 
 Then no limit was placed upon the amount of money to be expended 
 for the foreign mail service. It was left entirely to the discretion of 
 the Postmaster-General, and he was allowed to extend it " whenever in 
 his opinion the public interests would be promoted." Now he is limited 
 by Congress to a fixed sum. 
 
 THE ACT OP 1848. 
 
 On the 3d of March, 1848, another law was passed authorizing the 
 expenditure of $130,000 annually under similar contracts for weekly 
 mails, "or oftener if he thinks the public interests require," to the ports 
 of Mexico and the West Indies, and he was authorized to use a naval 
 vessel if necessary. 
 
 During the last year the sum of $1,062 was paid for a similar service. 
 
 The same act of March 3, 1848, authorized the Postmaster- General to 
 make a contract for ten years for the establishment of a regular weekly 
 service between the United States, Havana, and the Isthmus of Panama, 
 for which $100,000 was annually appro[>riated. 
 
 Last year we paid $20,153 for a similar service from New York. 
 
 THE ACT OF 1851. 
 
 Then, on the 3d of March, 1851, a general law was passed authorizing 
 the Postmaster-General to make contracts " for better postal intercourse 
 with foreign countries " whenever in his opinion the public interests 
 could be promoted. 
 
 Under this authority contracts covering a period of eleven years were 
 entered into between the Postmaster-General and M. C. Mordecai, con- 
 tractor for the conveyance of the United States mails between the ports 
 of Charleston, Savannah, Key West, and Havana; and the total sum 
 granted in compensation for said service amounted to an aggregate of 
 $573,418.22, amounting to annual compensation as follows : 
 
 Year. CorapenHation. 
 
 1 
 
 Year. 
 
 Coinpeuaation. 
 
 1849 
 
 $35, 086. 22 
 50, OiiO. 00 
 50, 000. 00 
 50, 000. 00 
 50, 000. 00 
 50, 000. 00 
 
 1855 
 
 $58, 332. 00 
 
 1850 
 
 18.')0 
 
 50, 000. 00 
 
 1851 
 
 1857 
 
 60. 000. 00 
 
 1852 
 
 1858 
 
 60, 000. 00 
 
 1853 
 
 1859 
 
 60,000.00 
 
 1854 
 
 
 
 
 
 SERVICE TO FRANCE. 
 
 Contracts were also executed between the Postmaster-General and 
 the Ocean Steam Navigation Company for the conveyance of the United
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 125 
 
 states mail from New York to Havre, for which the sum $1,000,378.19 
 was paid, amountiug to annual compensation as follows: 
 
 Tear. 
 
 1851 
 1852 
 1853 
 1854 
 
 Compensation. 
 
 $73, 550. 00 
 150, 000. 00 
 150, 000. 00 
 137, 500. 00 
 
 Tear. 
 
 1855 
 1856 
 1857 
 1858 
 
 Compensation. 
 
 $1.')0, 000. 00 
 
 no, oof). 00 
 
 149, 500. 00 
 99, 828. IS 
 
 SERVICE TO LIVERPOOL. 
 
 And with E. K. Collins and associates for the conveyance of the 
 CTnited Slates mails between New York and Liverpool, for which the 
 sum of $5,212,091.89 was paid, amounting to annual compensation as 
 follows : 
 
 Tear. 
 
 Compensation. 
 
 Year. 
 
 Compensation. 
 
 1850 
 
 $57, 750. CO 
 385, 000. 00 
 621, 500. 00 
 858, 000. 00 
 858, 000. 00 
 
 1855 
 
 $858, 000. 00 
 822, 000. 00 
 501 256 89 
 
 18.51 
 
 1856 
 
 1852 
 
 1857 
 
 1853 
 
 1858 
 
 250i 585. 00 
 
 1854 
 
 
 
 
 SERVICE TO PANAMA. 
 
 Contracts were entered into with C. H. Aspinwall for the conveyance 
 of the United States mails between San Francisco, Astoria, and Panama, 
 agreeable to the acts of March 3, 1847, and March 3, 1851, for which the 
 sum of $3,467,763.93, was paid, amounting to annual compensation as 
 follows : 
 
 Year, 
 
 Compensation. 
 
 Tear. 
 
 Compensation. 
 
 1850 
 
 $308, 173. 62 
 275, 425. 90 
 357, 346. 41 
 346, 250. 00 
 348, 250. 00 
 346, 379. 50 
 
 1 1856 
 
 $347, 650. 00 
 348, 250. 00 
 348, 250. 00 
 348, 250. 00 
 931 108 50 
 
 1851 
 
 1857 
 
 18E2 
 
 1858 
 
 18.-)3 
 
 1859 
 
 1854 
 
 1860 
 
 1855 
 
 
 
 
 
 SERVICE TO ASPINWALL. 
 
 And between the Secretary of the Navy and George Law and asso- 
 ciates for the conveyance of the United States mails from New York to 
 Aspinwall, for which the sum of $2,889,510.79 was paid, amounting to 
 annual compensation as follows: 
 
 Tear. 
 
 Compensation. 
 
 Tear. 
 
 Compensation. 
 
 
 1848, to June 30, 1851.... 
 
 $515,425.90 
 276, 394. 18 
 284, 500. 00 
 289, 000. 00 
 290, 000. 00 
 
 1856 
 
 $286, 600. 00 
 
 288, 450. 00 
 
 289, 000. 00 
 
 290, 000. 00 
 80, 130. 71 
 
 1853 
 
 1857 
 
 1853 
 
 1858 
 
 1854 
 
 1859 
 
 1856 
 
 1860 
 

 
 126 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 A REMARKABLE CONTRAST. 
 
 As a contrast between the mail pay of our West India steam-sbips to- 
 day and that of forty years ago, let me insert here the following, which 
 explains itself: 
 
 Post-Office Department, Offick of Foreign Mails, 
 
 Jiashingtotr, D. C, July 'io, 1889. 
 
 Gentlemen : I have to inform you that the Postfuasier-General has recognized the 
 service of American steamers Santiago, City of Wanhingion, Saratoga, Niagara, Cien- 
 fiiegos, City of Alexandria, Manhattan, City of Colum'bia, City of Atlanta, and Stneda, of 
 the New York and Cuba Mail Line, in transporting the United States mails from New- 
 York to Cuba and Mexico during the quarter ended June 30, 1889, at the sum of 
 $334. 80, being the amount of the United States sea and inland postageson the mails 
 conveyed by American steamers, calculated at $1.60 per pound for letters and 8 cents 
 per pound for newspapers, etc., and that the same will be referred to the Auditor for 
 payment to you at New York, N. Y. 
 The separate earnings of each steamer are stated on the sheets hereto annexed. 
 I am, very respectfully, your obedient servant, 
 
 S. W. Brooks, 
 Acting Superintendent Foreign Mails. 
 Messrs. James E. Ward & Co., 
 
 Agents, etc. 
 
 THE ACT OF 1852. 
 
 The act of August 30, 1852, provided as follows : 
 
 Postmaster- General authorized to contract for a term of five years and for a sum 
 not exceeding $100,000 per year for a tri-monthly mail from New Orleans via Tampico 
 to Vera Crnz and back in steam-vessels not less than 500 tons burden. 
 
 And was the authority for the contract between the Postmaster-General 
 and E. H. Carmick for the conveyance of United States mails from 
 New Orleans to Vera Cruz, for which the sum of $167,584.96 was paid, 
 amounting to annual payment as follows: 
 
 Year. 
 
 1853 
 1854 
 
 1855 
 
 Compensar 
 
 tiOD. 
 
 $7, 750. 00 
 37, 200. 00 
 34, 003. 12 
 
 Tear. 
 
 1856 
 1857 
 1858 
 
 Compensa- 
 tion. 
 
 $30, 515. 63 
 29, 062. 32 
 29,053.89 
 
 THE ACT OF 1855. 
 
 The act of March 3, 1855, provides as follows : 
 
 Sec. 8. Appropriation for transportation of mails from New York to Liverpool for 
 year ending June 30, 185(i, $819,500 ; New York to New Orleans, Charleston, Savannah, 
 Havana, and Chagres and back, $2(51,000; Panama to California and Oregon and 
 back, $328,3.50; for carrying out contract under provisions of act approved August 
 30, lft52, for tri-monthly mail by steam-vessels from New Orleans and Vera Cruz via 
 Tampico, $09,750. 
 
 Sec. 9. Appropriation, transportation of mails in two steam-ships from New York 
 by Sonthainptoii to Bremen and back, $100,000 foi each sjhip, and in two steam-ships 
 from New York by Cowes to Havre and back, $75,000; for each ship under contract
 
 THE UNITED STATES AND LATIN AMERICA. 127 
 
 with Oregon Steaiu Navigation Company, of Now York, for $^550,000 ; transportation 
 from Charleston to Havana, |50,000; across Isthmus of Panama, $150,000. 
 
 Skc. 10. Appropriated to supply rleficieuces from New York to Liverpool and back, 
 $5r)9,238.6r> ; from New York to New Orleans, Charleston, .and Savannah, Havana and 
 Chagres and back, $202,378.'2l ; from Panama to California and Oregon and back 
 $249,242.02. 
 
 Skc. 11. Appropriated for transportation of mails ending Juno 30, 18r)r>, for trans- 
 portation of mails in two steam-ships from New York by Southampton to Bremen, 
 $100,000 for each ship, and in two steam-shijjs from New York by Cowes to Havre and 
 back, $7.5,000 for each ship, under contract with Oregon Steam Navigation Company, 
 of New York, $350,000 ; for transportation of the mails between Charleston and 
 Havana, under contract with M. C. Mordecai, $50,000; for transportation across the 
 Isthmus of Panama, $120,000. 
 
 Under this authority the followlDg contract between the Postmaster- 
 General and the Louisiana and Tehuantepec Steam-shii) Company was 
 made for the conveyance of the United States mails from New Orleans 
 to San Francisco via the Isthmus of Tehuantepec, for which the sum 
 of $227,381.53 was paid, amounting to annual compensation as follows : 
 
 1859 $161,684.79 
 
 1860 65,896.74 
 
 THE ACT OF 1858. 
 
 The act of June 14, 1858, restricted the compensation to the postages 
 on the mails transported, and reads as follows : 
 
 Sec. 1. From New York to Liverpool and back, $346,500, and it is provided that 
 there be paid Post-OflSce Department out of said appropriation such sums as may be 
 required to procure the transportation of the mails from New York to Liverpool and 
 back ou such days as Collins' Line may fail to take them from New York, For trans- 
 portation from New York to New Orleans, Charleston, Savannah, Havana, and Chagres 
 and back, $261,000. For transportation from Panama to California and Oregon 
 and back, $328,350. 
 
 Sec. 2. Paid to Post-Office Department out of appropriation of $346,500, granted 
 first section of act of March, 1857, for transportation of mails from New York to Liv- 
 erpool and back, $16,757.75, for five outward trips from New York to Liverpool, 
 * * * when Collins' Line failed to perform service, and further sum $35,000 out of 
 aforesaid appropriation to procure transportation of mails from New York to Liver- 
 pool and back, on 24th April, 8th and 22d of May, 5th and 19th of June, 1858, if Col- 
 lins' Line fails to perform service. 
 
 Sec. 3. For transportation from New York, by Southampton or Cowes to Havre, 
 $230,000. For transportation between Charleston and Havana, $50,000. For trans- 
 portation across Isthmus of Panama, $100,000. 
 
 Sec. 4. Postmaster-General not to contract for carrying mails by sea for more than 
 two years, nor for other pay than sea and inland postage. 
 
 Sec. 5. Postmaster-General may cause mails to be transported between the United 
 States and foreign ports by steam-ship for the sea and United States inland postage 
 and sea postage only if by a foreign vessel ; preference to be given American vessels. 
 
 (Approved June 14, 1858. 11 U. S. S. at L., 364.) 
 
 This act authorized the contracts between the Postmaster-General 
 and the following companies and American citizens : 
 
 SERVICE TO SOUTELA.MPTON AND BREMEN. 
 
 Cornelius Vanderbiit, for conveyance of United States mails from New York to South- 
 ampton and Bremen, for which iiayment was made as follows : 
 
 1658 $100,585.93
 
 128 TEADE AND TRANSPORTATION BETWEEN 
 
 SERVICE TO SOUTnAMTON AND HAVRE. 
 
 Cornelius Vanderbilt, for the conveyance of the United States mails from New Vork 
 to Southampton and Havre, for which the sum of |260,144.55 was paid, amounting 
 to annual compensation aa follows: 
 
 18r)9 $104,283.65 
 
 1860 119,365.20 
 
 1861 36,495.70 
 
 SBKVICE TO HAVANA AND KEW ORLEANS. 
 
 The New York and New Orleans Steam-ship Company, for the conveyance of United 
 States mails from New York to Havana and New Orleans, for which the sum of 
 $67,261.24 was paid, amounting to annual compensation as follows: 
 
 1859 $17,213.48 
 
 1860 20,414.41 
 
 1861 29,633.35 
 
 SERVICE TO SOUTHAMPTON AND HAVRE. 
 
 The New York and Havre Steam-ship Company, for the conveyance of United States 
 mails from New York to Southampton and Havre, for which the sum of $310,081.03 
 was paid, amounting to annual compensation as follows : 
 
 1859 $94,977.44 
 
 1860 94,489.77 
 
 1861 87.104.12 
 
 1862 33,509.70 
 
 SERVICE TO SOUTHAMPTON AND HAVRE. 
 
 The North Atlantic Steam-ship Company, for the conveyance of the United States 
 mails from New York to South'ampton and Havre, for which the sum of $47,869 
 was paid, amounting to annual compensation as follows : 
 
 1860 $14,294.73 
 
 1861 33,574.27 
 
 SERVICE TO HAVANA. 
 
 M. O. Roberts, for the conveyance of United States mails from New York to Havana, 
 
 for which the sum of $23,556.55 was paid, amounting to annual compensation as 
 
 follows : 
 
 1860 $15,062.43 
 
 1861 8,494.12 
 
 SERVICE TO THE ISTHMUS AND SOUTH PACIFIC. 
 
 Cornelius Vanderbilt, for the conveyance of the United States mails to the Isthmus 
 and South Pacific, for which the sum of $69,892.56 was paid, amounting to auuual 
 compensation as follows : 
 
 1861 $8,001.26 
 
 1862 17,912.91 
 
 1863 15,078.26 
 
 1864 14,208.51 
 
 1865 14,691.62 
 
 SERVICE TO HAVANA. 
 
 Hargous &, Co., for the conveyance of the United States mails from New York to 
 Havana, as follows : 
 
 1861 $11,894.75
 
 THE UNITED STA'l'ES AND J.AITN AMERICA. 129 
 
 SERVICE TO HAVANA. 
 
 8])nrionl, TiloHon & Co., for tlie conveyance of the United States inailn from New 
 York to Havana, for which the sum of $155,534.80 was paid, amounting to annual 
 compensation as follows : 
 
 1862 $22,290.47 
 
 1863 34,600.88 
 
 1864 26,769.10 
 
 1865 34,417.29 
 
 18G6 37,391.12 
 
 SERVICE TO HAVANA. 
 
 Lndlow, ITcineken & Co., for the conveyance of the United States mails from New 
 York to Havana, for which the sum of $39,882.60 was paid, amounting to annual 
 compensation as foHows : 
 
 1863 121,608.85 
 
 1864 13,219.18 
 
 1865 5,054.57 
 
 SERVICE TO HAVANA. 
 
 James E. Eaynor, for the conveyance of the United States mails from New York to 
 Havana, as follows: 
 
 1864 $5,331.85 
 
 SERVICE TO THE ISTHMUS AND SOUTH PACIFIC. 
 
 The Atlantic Steam-ship Company, for the conveyance of the United States mails to 
 the Isthmus and South Pacific, for which the sum of $12,836.97 was paid, amount- 
 ing to annual compensation as follows : 
 
 1865 $7,769.57 
 
 1866 5,067.40 
 
 SERVICE TO HAVAJ^A. 
 
 Smith & Dunning, for the conveyance of the United States mails from New York to 
 Havana, as follows: 
 
 1876 $14,936.42 
 
 SERVICE TO HAVANA. 
 
 Garrison & Allen, for conveyance of the United States mails from New York to Ha- 
 vana, as follows: 
 
 1876 $8,184.15 
 
 SERVICE TO HAVANA. 
 
 The American and Mexican Steam-ship Conii)any, for the conveyance of the United 
 States mails from New York to Havana, as follows: 
 
 1866 $6,130.63 
 
 SERVICE TO HAVANA. 
 
 The West India Mails Steam-ship Company, for the conveyance of United States mails 
 from New York to Havana, for which the sum of $51,608.43 was paid, amounting 
 to annual compensation as follows : 
 
 1867 $28,310.29 
 
 1868 23,298.14 
 
 S. Ex. 54 9
 
 130 TRADE AND TRANSPORTATION BETWEEN 
 
 SEBVICE TO HAVRE. 
 
 The New York and Havre Steam-ship Company (Isaac Bell, president), for the con- 
 veyance of the Uuiled States mails from New York to Havre, for which the sum 
 of 9153, 207. 43 was paid, amouutiug to annual compensation as follows: 
 
 1866 $49,162.65 
 
 1867 73,052.92 
 
 1868 30,984.86 
 
 8ER\aCE TO BREMEN. 
 
 Tlie North American Lloyds Steam-ship Company, for the conveyance of the United 
 Stat OH mails from New York to Bremen, for which the sum of $24,838.21 was paid, 
 amouutiug to annual compensation as follows: 
 
 1866 $8,471.09 
 
 1867 16,367.12 
 
 SERVICE TO LIVERPOOL. 
 
 The Baltimore and Liverpool Steam-ship. Company, for the conveyance of the United 
 States mails from Baltimore to Liverpool, for which compensation was made as 
 follows : 
 
 1867 $6,500.77 
 
 eBR\TtCE TO HAVANA. 
 
 The Atlantic Steam-ship Company, for the conveyance of the United States mails from 
 New York to Havana, for which the sum of $226,775.09 was paid, amounting to 
 annual compensation as follows : 
 
 1868 $16,278.86 
 
 1869 ■ 62,847.18 
 
 1870 60.802.06 
 
 1871 35,484.00 
 
 1872 1 35,4.56.60 
 
 1873 15,906.39 
 
 SERVICE TO THE ISTHMUS AND SOUTH PACIFIC. 
 
 The Pacific Mail Steam-ship Company, for the conveyance of United States mails to 
 the Isthmus and South Pacific, for which the sum of $256,030.38 was paid, amount- 
 ing to annual comiiousation as follows : 
 
 1866 $12,310.05 
 
 1867 22,921.33 
 
 1868 19,476.89 
 
 1869 7,907.86 
 
 1871 21,76.'-).97 
 
 1872 24,576.22 
 
 1873 27,571.78 
 
 1874 26,2,56.50 
 
 1875 27,728.74 
 
 1876 16,104.52 
 
 1877 15,115.07 
 
 1878 19,237.01 
 
 1879 .,,.,,..,., 14,958.44
 
 THE UNITKl) HTATIOS AND LATIN AMERICA. 131 
 
 SEIiVICE TO HAVANA AND VERA CRUZ. 
 
 The New York, Havana and Mexican Steara-sbip Company, for the conveyance of 
 tlie United States mails from New York to Havana and Vera Cruz, for which the 
 sum of $14d/J40.43 was paid, amounting to annual compensation as follows ; 
 
 1871 $7,770.67 
 
 1872 11,178.57 
 
 1873 27,137.39 
 
 1874 33,828.83 
 
 1875 31,920.14 
 
 1876 12,859.89 
 
 1877 11,675.30 
 
 1878 5.954.07 
 
 1879 6,615.57 
 
 SERVICE TO HAVANA. 
 
 The New York and Havana direct line for the conveyance of United States mails from 
 New York to Havana, for which the sum of $31,439.46 was paid, amounting to an- 
 nual comijensation as follows: 
 
 1875 $20,069.16 
 
 1876 6,113.98 
 
 1877 5,256.32 
 
 SERVICE TO JAPAN AND CHINA. 
 
 The Pacific Mail Steam-ship Company, for the conveyance of the United States mails 
 from San Francisco to Japan and China and Australia, for which the sum of $17,592.69 
 was paid, amounting to annual compensation as follows : 
 
 1878 $8,017.83 
 
 1879 A 9,574.86 
 
 A temporary contract was entered into by the Postmaster-General and 
 Cornelius Yanderbilt for tlie conveyance of the United States mails 
 from New York to New Orleans and San Francisco, via Havana and 
 Aspinwall, from October 1, 1859, to June 30, 1860, for which the sum 
 
 of 1187,500 was paid. 
 
 THE ACT OF 1860. 
 
 The act of June 15, 1860, authorized thePostmaster-General to cause 
 mails to be transported between the United States and any foreign port 
 or ports, or between any port of United States and any other port of 
 United States, touching at foreign ports, by steamship; allowing and 
 paying therefor, if by an American vessel, the sea and inland United 
 States postage ; if by foreign vessel, sea postage only. Preference given 
 American steam-ships. 
 
 The act of February 19, 1861, appropriated for carrying mails from 
 New York, via Panama, to San Francisco, three times a month, from 
 July 1, 1860, to July 1, 1861, at a rate of $350,000 per annum, which 
 (sum shall be deducted from amount of postage received oa said route.
 
 132 
 
 TRADE AND TliANSPOKTATION BETWEEN 
 
 This was authority for a coutract between the Postmaster-General 
 and Cornelius Vauderbilt tor the conveyance of the United States 
 mails from New York to !San Francisco, via Panama, for which a com- 
 pensation of $350,000 was made. 
 
 THE ACT OF 1864. 
 
 The act of May 28, 1864, authorized monthly mail communication be- 
 tween Brazil by first-class sea-going steam-ships, not less than 2,000 
 tous burden, sufficient in number to perform twelve round trips or voy- 
 ages per annum between a port of the United States north of Potomac 
 Eiver and. Rio Janeiro in Brazil, touching at St, Thomas, at Bahiu, 
 Pernambuco; expense to be divided; portion of the United States 
 not to exceed $150,000 per year for twelve trips ; the Postmaster-Gen- 
 eral to invite proposals and contracts to lowest responsible bidder for a 
 term of ten years, to go into eflect September 1, 1865 ; steam-ships to be 
 mostapprov^ed model, etc. ; steam-ships to be exempted from port charges 
 and custom-house dues at port of departures and arrival at the United 
 States, provided similar exemption is granted by Brazil. 
 
 THE SERVICE TO BRAZIL. 
 
 This was authority for a contract, covering a period of ten years, be- 
 tween the Postmaster-General and the New York and Brazil Steam-ship 
 Company for the conveyance of the United States mail from New York 
 to St. Thomas and Rio de Janeiro, for which a sum of $1,500,000 was 
 paid, amounting to an annual compensation as follows : 
 
 Year. 
 
 1861) 
 1867 
 1868 
 1869 
 1870 
 1871 
 
 Compen- 
 sation. 
 
 $112, 500 
 150, 000 
 150, 000 
 150,000 
 150, 000 
 150, 000 
 
 Tear. 
 
 1872 
 1873 
 1874 
 1875 
 1876 
 
 C cm pea- 
 sation. 
 
 $150, 000 
 150, 000 
 150,000 
 150,000 
 37, 500 
 
 SEBVIOB TO CHINA AND JAPAN, 
 
 The acts of February 17, 1865, and February 18, 1867, authorized 
 tlie Postmaster-General to invite proposals for mail steam-ship service 
 between the United States and China and Japan, from San Francisco, 
 monthly trips ; lowest responsible bidder to have contract for ten 
 years; bids from all citizens, and not to call for over $500,000 per year 
 for twelve round trips, nor unless by a citizen of the United States, 
 and accompanied by offer of good sureties ; contract to go into eftect 
 January 1, 1867 ; ships constructed on best approved model, subject 
 to inspection by Secretary of Navy and Postmaster-General.
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 133 
 
 THE PACIFIC MAIL SUBSIDY. 
 
 The act of February 18, 18G7, appropriated for mail steamship service 
 between the United States and Brazil $150,000, and for mail steam-ship 
 service between San Francisco, Japan, and China, $500,000, to be by 
 American vessels. Under this authority a contract was made between 
 the Postmaster-General and the " Pacific Mail Steam-ship Company," 
 covering a period of ten years, for the conveyance of the United States 
 mails from San Francisco to China aud Japau via the Sandwich Islands, 
 for which service the sum of $4,583,333.32 was paid, amounting to an 
 annual compensation as follows : 
 
 Year. 
 
 Compenaa- 
 tion. 
 
 Year. 
 
 Compensa- 
 tion. 
 
 1867 , 
 
 $83, 333. 33 
 291, 666. 66 
 458, 333. 33 
 500, 000. 00 
 500, 000. 00 
 500, 000. 00 
 
 1873 
 
 $500, 000. 00 
 
 1868 ; 
 
 1874 
 
 500, 000. 00 
 
 1869 
 
 1875 
 
 500, 000. 00 
 
 1870 
 
 1876 
 
 500, 000. 00 
 
 1871 
 
 1 877 
 
 250, 000. 00 
 
 1872 
 
 
 
 
 
 THE HAWAIIAN ISLANDS SUBSIDY. 
 
 The act of March 2, 1867, authorized the Postmaster-General to ad- 
 vertise for proposals for monthly steam-ship service between San Fran- 
 cisco and Honolulu, by means of first-class American sea-going steam- 
 ships not less than 1,000 tons burden, to be given to the lowest bidder, 
 but no bids considered which amount to more than $75,000 for twelve 
 round trips, to be made by American citizens, with good sureties. 
 
 This was authority for a contract between the Postmaster General 
 and the California, Oregon, and Mexican Steam-ship Company, for the 
 conveyance of the United States mails from San Francisco to Hono- 
 lulu, for which the sum of $425,000 was paid, amounting to an annual 
 compensation as follows : 
 
 Years. 
 
 Compensa- 
 tion. 
 
 Years. 
 
 Compensa- 
 tion. 
 
 1868 
 
 $56, 250 
 68, 750 
 62, 500 
 75, 000 
 
 1872 
 
 $7.5, 000 
 
 1869 
 
 1873 
 
 75, 000 
 
 1870 
 
 1874 
 
 12, 500 
 
 1871 
 
 
 

 
 134 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 In 18G4 Congress passed what was known as " The Compulsory Act," 
 which required all steam-ships bearing the flag of the United States to 
 accept mails from an}' port in this country or from any foreign port to 
 the United States before they could obtain a clearance, and their com- 
 pensation was limited to sea postage, which at that time was as follows: 
 
 THE OLD RATES OF POSTAGE. 
 
 Bates of postage from the United States before the adoption of the uniform rate under the 
 
 postal union system. 
 
 
 
 Newspapers. 
 
 
 other printed matter. 
 
 
 go 
 
 
 <D 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Countries or places of 
 
 O 
 
 a 
 
 c 
 1 
 
 IS 
 
 a 
 © 
 
 u 
 
 a 
 
 o 
 
 a 
 
 o 
 a 
 
 ■• a 
 
 o 
 
 .2 =8 
 
 o 
 
 2 
 
 
 destisatioiL, 
 
 a 
 o 
 
 £ 
 
 |5 
 
 .a 
 '3 
 
 % 
 
 It 
 
 o u 
 
 
 is 
 
 4> a g 
 
 
 B a^ b 
 
 ill 
 
 ■2S« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 m ■ 
 
 ea^ 
 
 
 >■ 
 
 (* 
 
 
 
 08 «■« 
 
 
 h] 
 
 H 
 
 W 
 
 ;z5 
 
 o 
 
 o 
 
 Pi) 
 
 h 
 
 (W 
 
 
 GU. 
 
 OU. 
 
 Cti. 
 
 ou. 
 
 Cte. 
 
 Oto. 
 
 Cts. 
 
 cu. 
 
 c««. 
 
 
 10 
 
 .2 
 
 
 *2 
 
 •2 
 
 '2 
 
 *2 
 
 *2 
 
 
 Australia, British mail via 
 
 
 
 
 
 
 
 
 
 
 Soutlianipton and Suez. . 
 Australia, British mail via 
 
 16 
 
 
 4 
 
 4 
 
 8 
 
 14 
 
 14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 22 
 
 
 8 
 
 
 
 
 
 20 
 
 t20 
 
 Isew Zealand, British mail 
 
 
 
 
 
 
 via Soiithamptou 
 
 16 
 
 
 4 
 
 4 
 
 8 
 
 14 
 
 14 
 
 
 
 New Zealand, British mail 
 
 
 
 
 
 
 
 
 
 
 
 22 
 10 
 
 15 
 
 
 8 
 •2 
 C) 
 4 
 4 
 4 
 
 
 
 
 
 20 
 
 t20 
 
 
 *2 
 (t) 
 
 •2 
 
 *2 
 (I) 
 
 •2 
 C) 
 
 
 
 
 
 
 18 
 22 
 22 
 
 
 10 
 10 
 10 
 
 10 
 
 Callao ............. 
 
 
 
 
 
 10 
 
 
 
 
 
 
 10 
 
 
 
 
 
 
 
 * Two cents per 2 ounces. t Book packet rate. 
 
 t Domestic rates, adding 1 cent for each newspaper, and 1 cent per ounce on other printed mattor. 
 
 THE REDUCTION OP OCEAN POSTAGE IN 1874. 
 
 In 1874 the United States entered what is known as the Postal 
 Union, under which postage was fixed at 5 cents per one-half ounce 
 to every port in the world, and the compensation paid for the transi)or- 
 tation of the mails was thereby greatly reduced. The steamers to Japan 
 were paid 8 cents less i>er letter ; to Australia via the Suez Canal 14 
 cents less, and via Brindisi 20 cents less ; to Panama the compensation 
 was reduced 8 cents ; to Brazil 18 cents ; to Buenos Ayres IC cents, and to 
 Callao and Valparaiso 20 cents — for the steamship companies received 
 but 2 cents per letter, that being the diilerence between inland and 
 foreign postage, and no distinction was made for the distance a letter was 
 carried. 
 
 It was never intended to make this reduction of postage at the ex- 
 pense of the steam-ship companies, but nevertheless they alone suft'ered, 
 for Congress, when the Berne treaty was ratified, made no change in the
 
 THE UNITED STATES AND LATIN AMERICA. 135 
 
 law fixing tlie compensation for the transportation of ocean mails, and 
 lias made none since. 
 
 In the winter of 1884 the compulsory law was repealed. The re[)Oits 
 of the South American Commission awakened an interest in the exten- 
 sion of our trade and Congress made an effort to be fair. A joint select 
 committee on American sliipping was appointed, which, after spending 
 several months in an examination of the subject, reported as follows: 
 
 REPORT OF THE COMMITTEE ON AMERICAN SHIPPING. 
 
 The law, as it exists (section 3976, Rev. Stat.), compels the master of every Ameri- 
 cau vessel eiijragod in the foreign trade to carry such United States mails as may be 
 tendered bim by the Post-OfBce Department, and allows him as compensation for 
 Buch service a sum not exceeding 2 cents per letter carried. In no case is this an 
 adequate compensation, and in some instances it does not pay the cost to the vessel 
 of delivering the mails at the post-oflice in the port of arrival. The pay to United 
 States vessels in the foreign trade for transporting the mails in 1880 was only 2^ 
 cents per mile, while at the same time the steamers on our coast which contracted 
 to carry the mails received 57^ cents per mile for mail service. The contrast be- 
 tween our inadequate mail pay to American vessels engaged in the foreign trade and 
 the very liberal mail pay given by Great Britain to her steam-ship'lines only serves 
 to »how more clearly the injustice and lack of wisdom of our policy. Since 1840 
 England has paid more than $250,000,000 for mail service, with the deliberate purpose 
 of establishing and maintaining steam-ship lines to connect the United Kingdom with 
 all ports of the world. Even in the last year she paid about $3,000,000 to her steam- 
 ship lines for mail service, which was $1,641,300 more than she received from mail 
 matter transported by them. 
 
 THE ''COMPULSORY" LAW. 
 
 This report also called attention to the remarkable fact that sections 
 3976 and 4203 provided that no American ship bound to or Irom a for- 
 eign port could obtain a clearance until it had taken on board any mail 
 which should be offered it either by the United States Government or 
 any of its representatives, so that American steam-ship companies 
 were obliged to call for mails at all post-offices at i)orts of departures, 
 and deliver them at all post-offices at the ports of entry at their own 
 expense. 
 
 The payment which the carrier was entitled to receive was 2 cents 
 per letter, irrespective of weight or the distance it might be transported, 
 or, at the option of the Government, the carrier might receive the sea 
 postage, amounting to about 1§ cents per half ounce — this payment 
 being also made without regard to the extent or character of the service 
 rendered. 
 
 Comi)ulsory laws did not apply to foreign ships plying between 
 American and foreign ports, which in many instances were heavily sub- 
 sidized, nor to American ships engaged in the coastwise trade, which 
 are by law kept free from competition from foreign ships. Foreign 
 steamers earned from the United States Government, in some instances^ 
 as much as 80 cents per mile for mail service i)erformed by them, and
 
 136 TRADE AND TRANSPORTATION BETWEEN 
 
 single lines of Anioi'ic;ui ships engaged in the coastwise trade earned 
 as nuich for mail service as all the American foreign-bound steamships 
 put together, so that in the year 1JS84 the i)roscribed American steam- 
 ships, foreign bound, received for an aggregate mileage of 1,750,000 
 miles the sum of $50,000, or about three cents a mile, while at the same 
 time the Government paid over $."^50,000 to foreign ships for carrying 
 the mails over only a slightly greater distance, and American coast- 
 wise steamers earned an average of about C6 cents per mile. 
 
 SOME INTERESTING FIGURES. 
 
 In the course of debate it was developed that the compensation of 
 the principal railway routes was from $375 to $1,155 per mile per an- 
 num, and that of the routes of smaller importance from $45 to $350 
 pel- annum ; that of the thousands of railway routes only two hundred 
 or three hundred earned the compensation paid by the Government, 
 and that it was likewise true that in a great majority of cases postage 
 on the mails carried on the railroads fell very far short of reimbursing the 
 Government for the cost of service over them ; that in the payment for 
 internal steam-boat service, upon star routes, stage-coaches, and other 
 m^ans of transportation, millions of dollars were yearly expended, for 
 which, probably, in no single instance, was the Government compen- 
 sated by the jjostage received. 
 
 THE FACTS IN THE CASE. 
 
 It seemed to be generally conceded that the service to be rendered 
 by American ships engaged in the foreign trade for carrying the mail 
 should be paid for on the basis of the distance actually traveled, rather 
 than upon the basis of the amount of mail actually, carried, for the fol- 
 lowing, among other reasons : 
 
 (1) American mail carriers meet with the competition of foreign ships 
 usually heavily subsidized, and all operated at far less expense than 
 American ships could be, the latter being obliged to pay larger wages 
 to/)fficers and men and to afford better subsistence to their crews. 
 
 (2) American ships which contracted to carry the mails would prob- 
 ably be obliged, by the terms of their contract, to perform the service 
 at prescril)ed rates of speed and at specified and regular days, so that 
 the transit should be performed by them whether freight and passenger 
 traffic were obtained or not. 
 
 (3) Unlike railroads, which can and do build up large local business 
 in addition to the through business between termini, the mail-carrying 
 steam ship, besides running much greater risks than a railroad, nuist 
 rely solely on its through business, and can make no earnings, but only 
 large disbursincnts during trii)s, which, in the case of ships engaged in 
 the Australian and Chinese trade, cover a period of twenty-six days. 
 
 (1) Tlie mileage basis is that which has been assume<l by all the lead- 
 ing nations in making contracts of a similar nature. And
 
 THE UNITED STATES AND LATIN AMERICA. loi 
 
 Fhiwlly. Tlie weight of mail or number of letters carried, it was con- 
 <«'(lc(l was no fair criterion of the amount of payment to be made since 
 the II mount of mail matter carried to Central and S(juth American, 
 IMexiean, Pacific, and Sonth Pacific ports, the places with whicli it was 
 most desirable tha;t commerce should be maintained, would necessarily 
 for many years be comparatively small while the distance traversed 
 would be very great. 
 
 These reasons appeared so cogent that when the bill was originally 
 reported to the Senate that committee unanimously recommended that 
 the Postmaster-General be authorized to enter into contracts with Amer- 
 ican steam-sbips engaged in the foreign trade, and to pay them not ex- 
 ceeding $1 a mile for the trip outward and inward, and this provision 
 passed the Senate, after several days of discussion, by a vote of 45 to 11. 
 
 REPORT OF THE SHIP-BUIJLDING COMMITTEE. 
 
 The Special Committee on Ship-Building and Ship-Owning Interests 
 of the House of Eepresentatives, of which General Slocum was chair- 
 man, unanimously reported, through Mr. Hunt, of Louisiana,* a bill em- 
 bodying the substance of the Senate amendment above referred to and 
 which, although at the head of the Calendar and made an early special 
 order, failed to be reached for consideration. Its substance, however, 
 was embodied as a part of the Post- Office Appropriation bill, but being 
 by many members of the House believed not to be germane to that bill 
 and for other reasons was defeated by a voted of 130 to 112. This ap- 
 propriation bill, when it came to the Senate, was amended by a provis- 
 ion as follows : 
 
 THE ACT OF 1885. 
 
 For transportation of foreign mails, including transit across the Isthmus of Pan- 
 auiu, $800,000. And the Postmaster-General is hereby authorized to enter into con- 
 tracts for the transportation of any part of said foreign mails, after legal advertise- 
 ment, with the lowest responsible bidder, at a rate not exceeding 50 cents a nautical 
 iiiiie on the trip each way actually traveled between the terminal points, i)rovided 
 that the mails so contracted shall be carried on American steam-ships, and that the 
 aggregate of such contracts shall not exceed one-half of the sum hereby appropriated. 
 
 In the course of debate upon this amendment, which passed the Sen- 
 ate by a vote of 30 to 18, it was demonstrated that the revenue of the 
 Government from its foreign mails for the year 1884 was $2,157,022.63, 
 the expenditures entailed therein $362,804.22, leaving as a net rev- 
 enue, without charge for estimated cost of interior service, the sum of 
 $1,794,818.41. It was claimed that this was not entirely a profit to 
 the Government, because the estimated cost of interior domestic mail 
 service should be deducted. This was estimated at $1,009,080.59, leav- 
 ing, at the very least, a profit to the Government upon its foreign mail 
 service of $725,728.82. That this overplus (the only overplus existing 
 in the mail business of the Government) should be devoted in part to 
 the encouragement of commerce was believed to be only fair. 
 * The full report will be found in the Appendix.
 
 138 TRADE AND TRANSPORTATION BETWEEN 
 
 PROFITS TO THE GOVEBNMENT ON FOREIGN POSTAGE. 
 
 As an example of how this profit is earued by the Goverunient, and 
 as a fit illustration of the policj'^ of the United States as distinguished 
 from that pursued by other Governments, the following instance was 
 referred to, and may be cited : 
 
 In 1875 a postal contract was entered into between the Colonial Govern- 
 ments of Xew Zealand and New South Wales and the Pacific Mail Steam- 
 ship Company, whereby the former agreed to pay the latter a subsidy 
 of $400,000 per annum for a monthly service of four ships to be main- 
 tained between San Francisco and the colonies. This subsidy was paid 
 for the transportation of the colonial mails to America, and the British 
 overland mails from San Francisco to the colonies. With this large 
 payment the line was just about self-sustaining. Without it it could not 
 have existed. The Government of the United States paid for its outward 
 mails for six months the amount of $5,802.82. The United States Govern- 
 ment received for letters to the colonies 12 cents per half ounce, and for 
 newspapers 2 cents per half ounce. It paid to the Pacific Mai4 Company 
 G cents per half ounce on letters and nothing upon newspapers, so that 
 during the year 1884 the amount of postage receiv^ed by the Government 
 on United States mail sent from San Francisco to Australian colonies was 
 $30,479.30. The whole amount paid for transportation was $11,479.68, 
 leaving a net profit to the Government of $24,999.62. 
 
 THE AUSTRALIAN MAIL SERVICE. 
 
 The United States received from the British Government for the 
 transportation of the Australian British closed mails, conveyed between 
 Few York and San Francisco, 6 francs per kilogram for letters, 2 francs 
 per kilogram for papers, or 52.J cents per pound for letters and 17i cents 
 per pound for papers. Out of this the Government paid to overland 
 roads for transportation of the mail, which it never opened, handled, or 
 inspected, only the sum of 26 cents per pound for letters, pocketing the 
 residue and paying not one cent to the steam-ship company for the con- 
 veyance of the mails from San Francisco to Australia, so that the 
 Government earned a clear i)rofit of 20i cents per pound on the mails 
 for doing nothing. The overland railroads received 26 cents per pound 
 for carrying the mails 3,000 miles, and the Pacific Mail Steam-shii) Com- 
 pany, for transporting them 7,000 miles from San Francisco to Aus- 
 tralia, received nothing from this Government, so that it may be fairly 
 estimated that at every departure of a Pacific Mail steamer from the 
 port of San Francisco for Australia the Government realized a profit 
 of $5,000 and upwards. 
 
 THE VENEZUELA SERVICE COMPARED 
 
 The pay given to the Ked " U " line during the same year will also 
 aflford a fair illustration of the inadequacy of compensation. It per-
 
 THE UNITED STATES AND LATIN AMERICA. 130 
 
 formed thirty-one trips, traveled 127,800 miles, received $1,236.40, 
 equal to about 1 cent per mile, or $10 for each round trip of 4,260 miles, 
 or $8 for each of the five ports called at. The entire sea and inland 
 postage proffered by the Postmaster-General for future service would 
 not quite triple this sum, and would be about $24 for each port. 
 
 The Senate amendment passed the House by a vote of 98 to 89, and 
 a motion to reconsider was voted down by yeas 102, nays 79. . 
 
 The appropriation of $800,000 was not available until the commence- 
 ment of the new fiscal year, July 1, 1885. The repeal of the compul- 
 sory law took effect on the 1st of April preceding*. The steam-ship 
 companies were not obliged to receive the mails, but continued to carry 
 them at the compensation formerly paid, which, in several instances, 
 did not re-imburse them for their expenditures for cartage and lighter- 
 age. 
 
 POSTMASTER-GENERAL VILAS REFUSES TO CARRY OUT THE LAW. 
 
 Representatives of several of the steam-ship companies called upon 
 the Postmaster-General to ascertain the policy he intended to pursue 
 and were encouraged to believe that he would give them the same op- 
 portunity to bid for the service as was annually granted to inland and 
 coastwise steamers. But, a few days before the 1st of July, without 
 any notice to the companies whatever, a communication appeared in the 
 newspapers stating that the Postmaster-General would decline to carry 
 out the act of 1885. His objection appeared to be mainly that the 
 amount of the appropriation being only $400,000, and the service per- 
 formed by the American steamers during the preceding year nearly 
 2,000,000 of miles, it was apparent that if the full allowance of 50 cents 
 I^er mile was to be made to all lines that the appropriation would be 
 greatly exceeded. 
 
 To remove this embarrassment, the representatives of the Brazil Line, 
 the Pacific Mail Steam-ship Line, the Eed " D " Line, the Kew York and 
 Cuba Mail Steam-ship Company Line, the New York, Havana and Mexi- 
 can Line, the lines to the Sandwich Islands, and the Clyde Lines called 
 together upon the Postmaster-General to suggest that he, in his adver- 
 tisement, restrict all contracts to a maximum not exceeding 20 cents 
 per mile, so that even if every steam-ship line should receive a contract 
 for the year the appropriation would not be exceeded. 
 
 THE STEAM-SHIPS REFUSE TO CARRY THE MAILS. 
 
 When the representatives of the companies left Washington, no offer 
 or suggestion as to the compensation which the Government intended 
 to pay was made, and the companies might then have refrained from 
 continuing the carriage of the mails. Instead of this, they permitted 
 their vessels to be placed upon the Government's schedule for the month 
 of July at the old rates, and sent a communication stating that they
 
 140 TRADE AND TRANSPORTATION BETWEEN 
 
 expected on or before the 15tli of July to receive some intiuiation from 
 the Postmaster-General as to the course ho intended to pursue, so that 
 if no arranj^emeut was arrived at by that time the companies might 
 refrain from carrying the mails after the 1st of August without injury 
 to the public. 
 
 About the 15th day of July the Postmaster-General protested against 
 their notification, but made no definite suggestion as to the rate ofcom- 
 l)ensation. The companies then acted individually, some ofleriug to take 
 the mail at what would have been equiv'aleut to about 20 cents per 
 mile, others asking for more definite information, and about the end 
 of the month they were informed that in lieu of the rates previously 
 paid the Postmaster-General would give the sea and inland postage on 
 mail actually transported. When a suggestion of this character had 
 previously been made to representatives of these companies at Wash- 
 ington they had unanimously declined it. 
 
 A CONTRACT WITH FOREIGN POWERS. 
 
 As has been stated, the sea and inland postage when the compulsory 
 law was passed was 40 cents to half the foreign ports, 25 cents to 
 China and Japan, and 30 cents to Australia. The great nations of the 
 earth met at Paris and at Berne, agreed upon postal regulations, and 
 cut down the sea and inland postage to about 5 cents per half ounce. 
 This was conceded as an international courtesy, and as a boon to the 
 people of the world. No one pretended that this act of generosity should 
 be made at the expense of the carrier. Every other nation except the 
 United States entered into fair arrangements with the carriers foi- the 
 transportation of tbe mail, entirely irrespective of the postage ])ai(l 
 thereon. Austria jiaid 5,000,000 francs per annum ; England, 15,000,000 
 francs per annum ; France, 32,000,000 francs per annum ; Spain, 5,000,- 
 000 francs; Belgium, 1,000,000 francs; Holland, 2,000,000 francs; Italy, 
 8,000,000 francs. 
 
 The United States took the 5 cents for each letter, and arbitrarily 
 gave one-third of it to the American steam-ships, entirely indifferent as 
 to the extent, character, regularity, or nature of the service rendered, 
 paying as much from Key West to Havana, or from Boston to Halifiix, 
 a^ from San Francisco to China or from New York to Brazil. 
 
 AMERICAN STEAMERS TAKE THE MAILS, BUT DECLINE THE PAY. 
 
 Several of the steam-ship companies declined to accept that payment 
 and refused to receive the mails. Others took the mails as before, but 
 returned their compensation checks to the Post-OflBce Department on 
 the ground that they were inadequate, and appealed to Congress for 
 just compensation. Thus far it has not been granted. Tlie Senate has 
 passed several bills for that purpose, but the House of Representatives 
 has declined to concur in them. 
 
 Where the American ships de<;lined to take the mails, the Postmas-
 
 THti tJNitED STATES AND LATIN AilERICA. 141 
 
 ter-Geiienil intrusted theiu to foreign vessels, usually "tramps," which 
 hati no regular sailing- days, and whose voyages werealways indefinite. 
 There was so much inconvenience suflenid by the merchants engaged in 
 trade with Central and South America that the next year the steam- 
 ships consented to carry the mails, trusting to Congress to grant them 
 just compensation. 
 
 The tieatment of their Qommercial, marine by JEngland, France, and 
 other nations in the payment for mail transportation is in striking con- 
 trast with that of the United States^ 
 
 OITR PAOli'IO OCEAN SERVICE. 
 
 Concerning out Pacific Ocean service, Mr. H. Blackiston, a wealthy 
 merchant of New South Wales, recently remarked to the rei^orter of a 
 San Francisco paper : ,,,, 
 
 You eee we have four regular Hues of steamers — the Orient, the Messageries, the P. 
 and O., and the German— all ydying between London and Sydney, via Adelaide and 
 Melbourne, aud only one to the Unite<l States. 
 
 Now, while we can take a steamer but once a mouth direct to America, we have 
 one every week to London. In consequence travelers who would really much rather 
 go via the Pacific coasl^cross the United States are forced to take the hot route via 
 the Suez Canal. 
 
 The United States is losing a great deal by this. Every one of the steamers of 
 these four lines is loaded down with 600 or 700 passengers that might just as well 
 come and go via this conutry. If we had a fortnightly steamer to America there 
 would be a great change immediately. The fare from Sydney to London aud return 
 is $525 by either of the four lines mentioned. By way of San Francisco it is $330, 
 from Sydney to London. 
 
 The overland American railroads ought to stand in and reduce the rate to the same 
 figure as by way of Suez. Then with those fortnightly steamers you would have 
 heavy trans-Pacific travel. 
 
 Those two things would revolutionize the passenger business, and in a little while 
 you and we would want a steamer not ouly every two weeks, but every week. 
 
 The American railroads, instead of having oue hundred passengers a month, might 
 just as well have from aix to eight hundred or one thousand. As it is, if you are in 
 Sydney and miss a boat, you must wait a solid month or go. via Suez, and as that can 
 be done any week, passengers brave the hot weather and go by that route when they 
 really want to come by this. It is the same way with mails. We can't hear from 
 the Uaited States as wo would like. 
 
 There is nothing to see, either, on the other route. It is a long, dreary one, while 
 here there are a thousand things, of interest. 
 
 IN TOUCH WITH AMERICA. 
 
 This is a field for capitalists, and many from Australia are coming here, even as 
 things are, and making investnfeuts. In the last twenty-five years many Australians 
 have grown rich. They are now traveling. These steamers would do a great deal 
 for both countries. The people of Australia are in touch with the United States, 
 We were never so much so as now. We speak one language and are of one faith. I 
 was in a theater in Sydney on the night of May 14. An American flag was displayed 
 there on the stage. Why, cheers went up from four thousand tljrouts. 
 
 The recent heroic action of the men aboard the American ship Trenton at Samoa in 
 cheering the escape of the British war-ship Calliope when they themselves were just
 
 142 TRADE AND TRANSPORTATION BETWEEN 
 
 going down in the waves has shown us what a valiant i>eople you have here, and, 
 believe me, it has engendered a kinder feeling than over toward the United States. 
 
 Aside from this, we ought to do business with you and you with ns. We want your 
 canned meats and tlour and mining machinery, and a thousand other things, and you 
 want our line merino wool, New Zealand tin, kangaroo leather, and so on. These 
 fortnightly steamers would have all the freight and passengers thoy could carry, and 
 I firmly believe it would be an exceedingly brief time until wo would need, and would 
 have a weekly steamer. The Australian colonies, as you know, are ready to give 
 £40,000 toward the fortnightly steamers. The steamers want to be larger and 
 faster. 
 
 THE PACIFIC CABLE. 
 
 The Pacific cable we need verj^ badly too. Australian merchants want your mar- 
 ket quotations every day, and those they could get by the cable. The United 
 States, San Francisco, Honolulu, and the Australian ought to contribute jointly to- 
 ward this. The United States ought to give the most. Australia is ready to do her 
 share. 
 
 Australia is growing very fast and will be a republic soon. I wouldn't like to set 
 a date, but it is not far o^. Look how you put your foot down with Bismarck on that 
 Sanioan matter. There isn't another nation under the sun that Bismarck would have 
 stood that from. He doesn't want to fight the United States. 
 
 We in Australia have only two countries we can trade with — England and the 
 United States. We feel as though the entire regiou here west of Chicago, or at least 
 west of the Rocky Mountains, and Australia ought to bcftrading together. Both 
 countries would be greatly benefited.
 
 THE UNITED STATES AND LATIN AMERICA. 143 
 
 IV. 
 
 THE STEAMSHIP POLICY OF ENGLAND. 
 
 Before the war, or rather before the introduction of steam into the 
 world's navy, when all ocean transportation depended upon wind and 
 sail, no nation exceeded the United States in skillful and daring enter- 
 prises upon the sea, but since that introduction, and more especially 
 since our civil war, we have lost position both in our naval power and 
 our merchant marine. But it is not strange that, although in 1860 the 
 United States was the second nation on the ocean, carrying 84 per cent, 
 of our own commerce, we are now only carrying 14 per cent. Our people 
 are considered the most practical, the most enterprising, and the most 
 intelligent in the world. They have built up wealth at an amazing rate; 
 they have extended their facilities for communication in every direction 
 until there is not a village or a hamlet in the United States without the 
 means of reaching the coasts of both oceans. The supremacy of the 
 Government has been everywhere established, and our flag stands first 
 among those of all nations everywhere except upon ships. We have 
 more surplus products to sell in foreign lands than any other nation ; 
 we have more coal, iron, and timber for the building of ships, and yet 
 we have none and build none ; and are paying $150,000,000 a year for 
 freight on our carrying trade, thus giving employment and profits to 
 hundreds of thousands of foreigners, where our own people might be 
 engaged. 
 
 We began as a ship-building and a ship-owning nation, and during 
 the early life of our Government were rapidly approaching the first 
 place when the jealousy of England was aroused, and the war of 1812 
 occurred, which was nothing more or less than a dispute for the pos- 
 session of the ocean. There is not an instance where a nation ever 
 made such progress in ship building as the United States between the 
 years 1814 and 1840. In 1837, thirteen years after the war, our ton- 
 nage had increased over 300 per cent., while England's, in the same 
 time, only increased about 50 per cent. 
 
 HOW THE BRITISH SHIPPING WAS BUILT UP. 
 
 For two hundred years previous England had been the mistress of 
 the ocean and her statesmen saw that something must be done to crip- 
 gjp tb^ j9:!{:panding power of the ypung Republic, They had tried war
 
 144 TRADE AND TliANSrOKTATlOxN BETWEEN 
 
 and diplomacy without success, aud a new policy must be initiated. In 
 1848, therefore, she repealed her navigation laws and corameuced sub- 
 sidizing steam vessels to replace sail, and iron to replace wood. From 
 1848 to 1854 England spent $23,390,000 and brought her steam fleet up 
 to 304,559 tons, which was equal to a subsidj' of $93 per ton. 
 
 The money was expended by a board of admiralty, and wherever the 
 most opposition to English shii>ping existed there the most money was 
 spent to enable the British ship-owners to reduce freights aud break 
 down competition. When two of her great steam ship companies could 
 not maintain competition with the ships of other nations, although one 
 was receiving a subsidy of two million dollars and the other two million 
 and a half, a commission was appointed by Parliament to examine the 
 situation aud report the result of their inquiries. This commission drew 
 two new contracts, suspending the subsidies and oflering a dividend of 
 8 per cent, on the English capital invested in steam-ships. Other con- 
 tracts were made, with n fixed bonus per mile traveled, so as to enable 
 English lines to cut freight rates below all competitors. 
 
 Then, in 1850, when Great Britain undertook to obtain the trade the ^ 
 United States is now seeking, the first thing she did was to make a 
 contract for two lines of steam-ships, one to the West Indies and the 
 other to Brazil, the River Plate country, and the west coast of South 
 America. The first of these companies, the Royal Mail Steam Packet 
 Company of Southampton, was originally paid a subsidy of $1,350,000 
 a year and has continued to receive one from that day to tliis, although 
 the amounts have been gradually reduced as the increased traffic en- 
 abled it to become self-sustaining. The other company was the Pacific 
 Steam Navigation Company, established by William Wheelright, an 
 American citizen, which still receives a subsidy of $225,000 i)er year 
 for a semi-monthly service. 
 
 ENGLAND'S RECORD FOR FORTY TEARS. 
 
 From 1854 to 1860 England spent over $36,000,000 in building np a 
 steam merchant marine. During our war she cut off many of her sub- 
 sidies and reduced others, because of the absence of competition, until 
 in 1865 she paid less than at any time since 1849; but in the following 
 year she saw danger of a renewal of competition from the United 
 States and at once began to increase the compensation to her steamers. 
 The United States did nothing until 1870, when a small subsidy was 
 granted the Pacific Mail Company by our Congress. Fearing that this 
 policy would become general, England increased her subsidies until 
 they reached over $6,000,000 a year and kept them at that figure until 
 the United States in 1873 abandoned heri)olicy, when England returned 
 to her old system. In 1854 England had 300,000 tons of ocean ship- 
 I)ing. . Since that time, she lias spent $225,000,000 in the form of subsi- 
 dies for the avowed purpose of extending lier commerce, and now has 
 over 7,000,000 tons. 
 
 During the year 1888, 765 vessels were built and launched ia the vi^
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 145 
 
 rious yards ol the workl. The total tonnage of vessels built in Great 
 Britain was 9-57,000, or about 85 per cent, of the whole. The United 
 States yards built and launched 73 vessels, having' a. tonnage of 38,000. 
 Forty years ago there were built in New York alone vessels whose ag- 
 gregate tonnage exceeded that of all Great Britain. That England has 
 l)roftted by her subsidizing methods is evidenced by the fact that out 
 of the world's 33,000 steam and sailing ships, with a tonnage of over 
 21,000,000, about 12,000 vessels, with a tonnage of over 11,000,000, be- 
 long to Great Britain, without taking into consideration the great num- 
 ber of vessels that are owned in that country, but which, for various 
 reasons, are sailed under the flags of other nations. 
 
 BRITISH MAIL PAY TO BRITISH SHIPS. 
 The following table shows tlie amount of assistance given by the 
 British Government to British ships from 1848 to 1888, in the form of 
 mail pay : 
 
 Tears. 
 
 1848 
 1849 
 1850 
 1851 
 1852 
 1853 
 1854 
 1855 
 I8!J6 
 1857 
 1858 
 1859 
 1860 
 1861 
 1862 
 1803 
 1864 
 1865 
 1866 
 1867 
 1868 
 
 Mail pay. 
 
 $3, 250, 
 3, 180, 
 5,313, 
 5, 330, 
 5, 510, 
 5, 804, 
 5, 950, 
 5, 741, 
 5, 713, 
 5, 133, 
 4, 079, 
 4, 740, 
 4, 349, 
 4, 703, 
 4, 105, 
 4, 188, 
 4, 503, 
 
 3, 981, 
 
 4, 277, 
 4, 079, 
 4, 047, 
 
 Years. 
 
 1869 
 1870 
 1871 
 1872 
 1873 
 1874 
 1875 
 1876 
 1877 
 1878 
 1879 
 1880 
 1881 
 1882 
 1883 
 1884 
 1885 
 1886 
 1887 
 1888 
 
 Mail pay. 
 
 690 
 761 
 
 741 
 5('0 
 296 
 346 
 000 
 261 
 580 
 990 
 230 
 130 
 350 
 
 8;;5 
 
 L'9I 
 510 
 CJ5 
 
 987 
 756 
 874 
 
 BRITISH SUBSIDIES TO SPANISH-AMERICAN LINES. 
 
 The following statement shows the annual subsidies England has paid 
 to acquire the trade she now enjoys with Central and South America, 
 but the amounts given do not include bounties to vessels in the Eoyal 
 l!^aval Eeserve : 
 
 Tears. 
 
 AmouDt of 
 subsidy. 
 
 Tears. 
 
 Amount of 
 subsidy. 
 
 1862 
 
 $1,471,215 
 1,471,215 
 1,471,215 
 1, 157, 070 
 1, 134, 570 
 1,125,520 
 1, 149, 860 
 1, 147, 745 
 1, 207, 295 
 1,238,120 
 1,252,840 
 1, 266, 760 
 1, 243, 485 
 1, 245, 090 
 698, 260 
 
 1877 
 
 $652, 495 
 
 1863 
 
 1878 
 
 615,420 
 
 1864 
 
 1879 
 
 518, 530 
 
 1865 
 
 1880 
 
 474, 335 
 
 1866 
 
 1 881 
 
 49(i, 775 
 
 1867 
 
 1882 
 
 485, 070 
 
 1868 
 
 1883 
 
 483, 925 
 
 1869 
 
 1884 
 
 482, 800 
 
 1870 
 
 1885 . 
 
 488 765 
 
 1871 
 
 1886 
 
 525, 727 
 
 1872 
 
 1887 
 
 543,814 
 
 1873 
 
 1888 
 
 550, 446 
 
 1874 
 
 Total 
 
 
 1875 
 
 24. 664, 312 
 
 1876 
 
 
 
 
 S. Ex. 54
 
 146 TRADE AXI) TRANSPORTATION BETWEEN 
 
 NEW SHIPS FOR THE SOUTH-AMERICAN TRADE. 
 
 The grand new ships which are now entering the port of New York 
 are not the only ones England is building for the purpose of keeping 
 her hold upon the commerce of the world. The Pacific Steam Naviga- 
 tion Company, which, under a subsidy from the British Government, 
 sends its vessels from Liverpool to Pauama through the Straits of Ma- 
 gellan, has recently launched four magnificent steamers to enter her 
 regular line and keep her South American trade. Two of them, the 
 Oratava and the Auraba, are the largest, finest, and fastest steamers 
 that have ever been engaged in the South American waters. They are 
 450 feet long, 49 feet beam, 37 feet in depth, with a capacity of 0,000 
 tons, and 6,500 horse-power; triple-expansion engines, and five double- 
 ended steel boilers capable of sustaining a pressure of 160 pounds. The 
 average speed of these vessels, when full ladened, will be 16 knots. 
 They are lighted with electric light, have large refrigerating machines 
 capable of cooling 40,000 cubic feet of air per hour, and are fitted out 
 with every modern convenience for both passenger and freight traffic. 
 The third steamer is the China, of the same description, 460 feet long, 
 48 feet beam, and 36 feet deep, registering 5,200 tons, with engines of 
 5,500 horse-power. The fourth steamer is the Santiago, 350 feet by 45 
 feet beam and 31 feet deep, with 5,000 tons capacity and 4,500 horse- 
 power, with a guarantied speed of 4^ knots. 
 
 All of these vessels are built of steel, and have four complete decks, 
 two of which are steel. 
 
 ENGLAND'S NAVAL RESERVE. 
 
 England has recently adopted the new policy of establishing a Naval 
 Eeserve, which was inaugurated shortly after the complications that 
 arose with Eussia in 1885. The British Admiraltj^ has acted on the 
 principle that true economy will be best promoted by securing the 
 construction of such vessels as will be most serviceable for commerce 
 during peace and at the same time capable of cruiser service during 
 war. In 1885 the sum of $3,000,000 was expended in retaining several 
 fast merchant ships so as to prevent them becoming available for the 
 service of any other power inimical to Great Britain, and under this 
 policy the Admiralty have since made contracts with the Cunard and 
 White Star Steam-ship Lines for the construction of a fleet of naval re- 
 servo cruisers to be used in the transatlantic traffic during peace and 
 available at any time during war. 
 
 The White Star Line undertake to hold at the disposition of the Ad- 
 miralty at any time during the continuance of this agreement all its 
 vessels, the Britannic, Germanic, Asiatic, Celtic, Teutonic, and the new 
 vessel wliich has recently been launched, called the Majestic, which is 
 582 feet in length, 52 feet 6 inches in width, 30 feet in depth, with a 
 capacity of 10,000 tons, and 12,000 horse-power.
 
 • THE UNITED STATES AND LATIN AMERICA. 147 
 
 A similar contract has been made with the Cuuard Line, and under it 
 the Etruria, Umbria, Aurania, jServia, Gallia, and other steamers are in- 
 cluded. 
 
 NAVAL RESERVE SUBSIDIES. 
 
 In consideration for the construction of these steamers and holding 
 them ready at any time for her Majesty's service, the companies are to 
 receive an annual subvention of 15s. per gross registered ton per annum 
 during the next five years. This subvention will amount to an average 
 of $35,000 annually for each of the vessels named above, and is entirely 
 distinct from their compensation for the transportation of the mails. 
 
 The steam-ships City of New Yorlc, City of Paris, and other modern 
 vessels belonging to other lines also receive similar subsidies, the pay- 
 ment to each of the two vessels mentioned being $50,000 a year. 
 
 The English Government also pays a certain portion of the wages of 
 the officers and crews of such vessels as are enrolled in the list of the 
 royal naval reserve. 
 
 The steam-ships of the Peninsula and Oriental Steam-ship Company 
 receive a subsidy of 6s. 8d. per knot to India, and 3s. 8d. per knot to 
 Australia, which is equivalent to $1.26 a nautical mile. This subsidy 
 is in addition to the mail pay, and is equivalent to over 12 per cent, of 
 the capital of the company. A few years ago this same company was 
 receiving annually a subsidy of nearly $3,000,000, which was more than 
 20 per cent, dividend upon its capital. 
 
 BRITISH MAIL PAY IN 1888. 
 
 The following statement shows the exact sums paid by the British 
 post-oflfice department for the transportation of its foreign mails. These 
 sums do not include the subsidies above alluded to: 
 
 To Europe : 
 
 Year 1888. 
 
 Dover and Calais £13.200 
 
 Dover and Ostend 4,500 
 
 Total for conveyance of mails, Europe 17,700 
 
 To America : 
 
 • United Kingdom to United States 85,000 
 
 New York and Bermuda 300 
 
 United Kingdom and West Indies - 90,250 
 
 Belize and New Orleans 1,600 
 
 Newfoundland 4,000 
 
 Liverpool to Callao , 11,500 
 
 Liverpool to West Indies and Mexico 1, 100 
 
 Southampton to Brazil and River Platte 5, 500 
 
 Panama to Vali)araiso 3, 500 
 
 202, 750 
 
 Deduct estimated amount of penalties 50 
 
 Total for conveyance of mails, America 202, 700 
 
 • =====
 
 148 TRADE AND TKANSPOKTATlUN 151:TWEKN 
 
 To Africa : 
 
 United Kinjjdoiu aud West Coast of Africa £9, r)00 
 
 United Kingdom and St. Helena and Ascension 4, 474 
 
 13, 974 
 Deduct estimated amount of penalties 50 
 
 Total for loiiveyanco of mails, Africa 13,924 
 
 To In»lia, China, aud Australia : 
 
 Between Brindiei, Bombay (via Suez Canal), calling at Aden.. 
 
 Between Brindisi and Shanghai (via Suez Caual), calling at Aden, ^ '^65, 000 
 
 Colombo, Penang, Singapore, and Hong-Kong 
 
 Between Brindisi and Adelaide and between Naples and Adelaide (via 
 
 Suez Caual) 170,000 
 
 1, ? y65,( 
 
 435,000 
 Deduct estimated amount of penalties 200 
 
 Total for conveyance of mails, India, China, and Australia 434,800 
 
 RECAPITULATION. 
 
 Europe 17,700 
 
 America 202,700 
 
 Africa 13,924 
 
 Asia and Australia - 434. HOO 
 
 Total 669,124 
 
 Less repaid by colonies : 
 
 West Indies £22, SW 
 
 East Indies 63,000 
 
 Australia 75,000 
 
 160, 360 
 
 Net payment by the Imperial Government for foreign post-office 
 
 packet service 508,764
 
 THE UNITED STATES AND LATIN AMEKICA. 149 
 
 V. 
 
 THE POLICY OF CANADA. 
 
 The Canadian Government is imitating the mother country in build 
 ing up a merchant marine, paying a total of $730,000 in the way of sub- 
 sidies and compensation for mail carriage annually. 
 
 The British Government has recently entered into a ten years' con- 
 tract with the Canadian Pacific Railway for a steam-ship service between 
 Vancouver and the Asiatic ports of the Pacific, for which the company 
 is to receive a Bubsidy of $300,000 a year from the British post-oifice 
 department, $125,000 from the Canadian treasury, and the regular rate 
 of bounty that is paid vessels complying with the requirements of the 
 naval reserve law, which is 15 shillings per ton gross measurement per 
 annum for five years. The contract runs for ten years from the first 
 departure from Hong-Kong; it will be terminable on the 31st of Janu- 
 ary, 1898, if notice is given six months beforehand, and on payment of 
 £20,000 by the ])ostmaster- general. The first departure from Hong- 
 Kong is not to be fixed without consent of the company earlier than 
 eighteen months from the date of the agreement. The company under- 
 take to construct all vessels engaged for the service with gun platforms 
 and other fittings required by the admiralty and to sell them to the ad- 
 miralty if required. The vessels are to run 17i^ knots on the measured 
 mile and 16 knots on sea trial. The company undertake to employ, as 
 far as possible, members of the royal naval reserve. 
 
 CONTRACTS FOR NEW STEAMERS. 
 
 T. G. Shaughnessey, assistant president of the Canadian Pacific Rail- 
 road, is now in England making a contract for the construction of these 
 steamers. They are to be of the same model and design as the new 
 North German Lloyd steamers, will cost a million dollars each, and are 
 to be delivered at Vancouver by the 1st of May, 1891. 
 
 In addition to this line of steamers the Canadian Government pays 
 $50,000 a year to maintain a fortnightly service between Halifax and 
 Havre.
 
 150 TRADE AND TRANSPORTATION BETWEEN 
 
 It also subsidizes the Halifax and West India Company at tlie rate of 
 $75,000 per annum. 
 
 The AUan Line receives a subsidy from Canada of $100,000 a year, 
 and Messrs. Anderson & Co., July 17, 1889, made a contract for a new 
 steam-shii) service between Montreal and Liverpool in connection with 
 the Canadian Pacific Railway and its Pacific steamship lines and in 
 competition with the New York steamers. The Anderson Company 
 l)ropose to have a weekly service by steamers of 7,000 tons register, 13,- 
 000 horse-power engines, with a speed of 20 knots, and expect to divert 
 much of the New York traflBc iii that way. This company will receive 
 a subsidy of £100,000 or $500,000 sterling annually for ten years, pay- 
 ment to be divided equally between the British and the colonial Gov- 
 ernments. 
 
 THE EFFECT UPON OUR COMMERCE. 
 
 The construction of the Canadian Pacific steamers means a great deal 
 more than appears on the surface. They will not only rob the Pacific 
 Mail Company of most of its transpacific passenger traffic, but having 
 a liberal subsidy, will be enabled to cut under any rates of freight it 
 may charge. Four hundred and twenty-five thousand dollars a year is 
 equivalent to 10 j^er cent, upon four and a quarter million dollars, which 
 is just about what the steamers will cost, so that the share-holders will 
 have a dividend of this amount, even if the vessels only pay their own 
 expenses. The transpacific traffic has always made San Francisco its 
 entrepot and passed through the United States on the way eastward to 
 New York and Europe, but it will now be diverted over the Canadian 
 Pacific. Vancouver will enjoy the trade San Francisco has ha<l, and 
 the business that has been going to New York will go to Montreal. 
 
 CANADA SEEKING SOUTH AMERICAN TRADE. 
 
 The Canadian Gazette, in its issue of the 21st of February last, with 
 respect to the efforts of the Canadian Parliament to promote the trade 
 relations between Canada and South America, says : 
 
 Tho Dominion parliament now has before it the report of Mr. Simeon Jones upon 
 trade relations between Canada and South America. Mr. Jones was deputed by the 
 Dominion goverumeut to proceed to the Argentine Republic and Uruguay to inquire 
 into the subject, and his report will doubtless stimulate the movement now on foot 
 in Canada for the establishment, under government auspices, of a direct steam-ship 
 line. At present, Mr. Jones reports, lumber is the great staple article that Canada 
 could export to these South American countries. In 1886 the Argentine Republic im- 
 ported i¥> less than 212,000,000 superficial feet, and of this Canada supplitid direct only 
 34,000,000, though a large amount of the spruce and pine shipped from the United 
 States originally came from Canadian forests; lienco Mr. Jones's suggestion that 
 Canadian ]nmb(!r merchants should cultivate South American markets and cease to 
 depend ho largely ui>on the more fickle markets of Europe. There is also every prob- 
 ability that Canada could supply some of the immense South American demand for 
 coal, wliicli is now nift, ulmost entirely by Great Britain, for at many points in Nova 
 Scolia foal could bo put on board direct steamers and conveyed to South American 
 porta much more cheaply than can be done from Great Britain.
 
 THE UNITED STATES AND LATIN AMERICA. lf)l 
 
 An export trade might also bo developed in cbeese, agricultnral implements, ;uh1 
 light cotton goods ; while in return Canada would be glad to receive sugar, tobacco, 
 and Huch raw material as wool. The movement is, it seems, regarded favorably by 
 the Argentine authorities, and Mr. Jours reports the assurance of the foreign minis- 
 ter that his Government would no doubt grant a subsidy to a direct line between 
 Canada and Brazil equal in amount to that given by the Dominion government. 
 The Dominion government has shown in the speech from the throne at the opening 
 of the Dominion parliament that it is prepared to do its part, and we may therefore 
 hope for an early and successful development of Canadian trade in that direction.
 
 152 
 
 TRADE AND TRAXSl'OiriA'nON l^.I-TWEEN 
 
 VI. 
 
 THE POLICY OF FRANCE. 
 
 During the past twenty years France has paid $90,000,000 as subsi- 
 dies to her shipping. In 1870 her steam tonnage was 154,415 tons ; 
 in 1880 it was 277,759 tons ; in 1883 it rose to 667,444 tons, and in 1889 
 it reached 740,325 tons. As a direct result of this policy her foreign 
 commerce has increased $500,000,000 since 1878. 
 
 The following statement shows the amount of subsidies paid annually 
 by France in her steam-ship lines in the form of mail contracts. 
 
 Mail contracts to French companies. 
 
 Service. 
 
 Japan, Cbiiia, and India. . 
 
 South America 
 
 Mediterranean 
 
 Mediterranean 
 
 West Indies, Mexico, etc 
 
 United States 
 
 Englisb Channel 
 
 Total 
 
 Miles per 
 year. 
 
 225, 
 09, 
 
 14fi, 
 :!6, 
 
 138, 
 
 82, 
 
 5, 
 
 88i} 
 
 .'5r)2 
 
 553i 
 
 018J 
 
 400 
 
 6661 
 
 353J 
 
 734, 388J 
 
 Rate per 
 mile. 
 
 Dollarg. 
 7. f)9J 
 7.32J 
 5.98 
 2.08 
 5.71 
 5.71 
 3.73J 
 
 *6.37 
 
 Subsidy per 
 annnm. 
 
 Dollarg. 
 
 1,71 4, 604. 80 
 
 728, 800. 00 
 
 876, 452. 00 
 
 75, 000. 00 
 
 790,6.51.40 
 
 472, 209. 00 
 
 20, 000. 00 
 
 4. 677, 778. 40 
 
 'Average. 
 
 In addition to this mail pay the Government pays a bounty upon 
 construction and navigation, which made a total of $0,792,778 paid 
 during the year 1888, to encourage its mercantile marine. Of this sum 
 $3,203,183 was paid to maintain communication with the several coun- 
 tries of Central and South America. 
 
 THE FRENCH BOUNTY SYSTEM. 
 
 The bounties paid to French ships were authorized by act of January 
 29, 1881. The bounty for construction is as follows: Wooden ships 
 under 200 tons, 10 francs per ton ; wooden ships over 200 tons, 20 francs 
 per ton ; for mixed iron and wooden ships, 40 francs per ton ; for iron 
 and steel ships, 60 francs per ton ; for machinery, per 100 kilograms, 12 
 francs ; for boilers, per 100 kilograms, 8 francs.
 
 THE UNITED STATES AND LATIN AMERICA. 153 
 
 111 18S6 $507,534 was paid as bounty to the Transatlautique Compauy 
 for the construction of the four vessels, La Champagne, La Bretagne^ 
 La GasGoigne, and La Bourgoyne. 
 
 AMOUNTS PAID ANNUALLY AS BOUNTIES. 
 
 The total amounts paid annually under this act for the construction 
 of ships by France are as follows : 
 
 1881 1190,160 1887 $712,180 
 
 1882 908,100 1888 872,100 
 
 1883 632,040 1889 (estimated) 927,840 
 
 1884 886,980 
 
 188o 222,820 
 
 1886 901,120 
 
 Total 6,253,400 
 
 In addition to the construction bounties a navigation bounty is paid 
 of 1 franc and 50 centimes per ton for every 1,000 miles traveled by 
 French ships during the first year of their construction, with a deduc- 
 tion of 5 centimes jjer ton per 1,000 miles during each succeeding year. 
 
 For steam-ships built upon plans approved by the naval department, 
 and of a character adapted for use by the Government in time of war, 
 an additional bounty of 15 per cent, upon the cost of the vessel is paid 
 to the constructor. 
 
 The amount of bounties paid for navigation in 1884 was $1,717,866; 
 in 1885, $1,513,556; in 1886, $1,515,669; in 1888, $1,232,840. 
 
 The total bounty paid for both construction and navigation was, in 
 1886, $2,115,211 ; in 1887, $2,200,000, and in 1888, $2,115,000. 
 
 These figures show that France is now paying more money than any 
 nation on the earth for the encouragement of her mercantile marine, 
 and the effect is plainly apparent in her prosperity. 
 
 FRENCH LINES TO SOUTH AMERICA. 
 
 There are five lines of steam-ships connecting Marseilles, France, 
 with the ports of Brazil, Uruguay, and the Argentine Republic : 
 
 (1) Compagnie Faixsinet. — Steamer leaves Marseilles the Ist of each month for 
 Montevideo and Buenos Ayres. 
 
 (2) Compagnie Nationale. — Leaves Marseilles the 25th of each mouth for Montevideo 
 aud Buenos Ayres. 
 
 (3) Compagnie Florio-Rubattino (Italian). Steamer every fortnight from Mar- 
 seilles via Genoa for Montevideo and Buenos Ayres, aud one each month for Val- 
 paraiso and other Pacific ports. 
 
 (4) Soci6t6 G6u6rale de Transports Maritimes. — Steamer each ten days from Mar- 
 seilles for Santos, Rio Janeiro, Montevideo, aud Buenos Ayres. 
 
 (5) Compagnie Cyprien-Fabro. — Steamer each mouth from Marseilles for Monte- 
 video, Buenos Ayres, and Rosario. 
 
 The steamers of these lines are of iron, and range from 2,000 to 
 2,800 tons register, and from 1,800 to 2,500 horse-power. 
 
 In addition to these there is a line between Havre and the ports of 
 the east coast and north coast of South America. The best ships run-
 
 154 TRADE AND TRANSPORTATTOX BETWEEN 
 
 iiiu<:i: to Kio de Janeiro, Buenos Ayres and Aspinwall are those of the 
 Fnuicli companies. 
 
 TRADE BETWEEN FRANCE AND THE ARGENTINE REPUBLIC. 
 
 The trade between the Argentine Republic and France has grown 
 amazingly during the last ten years, the increase being 152 per cent, 
 in imports and 153 per cent, in exports. She now holds the second 
 l)lace, her aggregate trade with the Republic being four million dollars 
 less than that of Great Britain. The principal articles of export from 
 France to the Argentine Republic in 1887 were wine $7,000,000 ; sugar, 
 $1,900,000; dry goods, $5,300,000 ; jewelry and fancy wares, $2,600,000. 
 
 Besides the construction and navigation bounty which it received 
 from the Government, the Messageries Maritimes of France receives a, 
 special subsidy of $20,000 for each round trip, semi-monthly, between 
 Bordeaux, France, and Buenos Ayres.
 
 THE UNITED STATES AND LATIN AMETilCA. 155 
 
 VII. 
 
 THE POLICY OF GERMANY. 
 
 The German Government has not paid subsidies until recently, but 
 was compelled to adopt the policy to maintain itself in competition with 
 England and France, and she has found it to be eminently successful. 
 
 In a late number of the German Trade Eeview, published at Berlin, 
 appears a statement showing the results of aiding theGerman steam-ship 
 lines. It says that " the expectations which the friends of the subsi- 
 dized steam-ship lines had formed of their success have been more 
 largely realized in the second year of their existence than in the first." 
 It refers particularly to the lines established for the trade between 
 Germany and East Asian ports and between Germany and the Austral- 
 ian and intermediate ports. The losses the first year aggregated about 
 $160,000, while in the second year they were reduced to $10,000, and 
 this year the lines are expected to show a profit. 
 
 Last year (1888) the North German Lloyd Company received a sub- 
 sidy of $1,100,000 and $984,410 was paid to other companies, making a 
 total of $2,084,410. In addition to this $1,047,200 was paid for mail 
 transportation, making a grand total of $3,131 ,610 for the year. 
 
 GERMAN LINES TO SOUTH AMERICA. 
 
 There are lines of German steamers from Hamburg running through 
 the Straits of Magellan up the west coast of South America as far as 
 Guatemala, bringing merchandise of all sorts, not only from Germany, 
 but other European countries, and taking as return cargoes coffee, dye- 
 wood, and other merchandise. These vessels being subsidized by the 
 German Government, and being maintained upon a very economical 
 basis, are able to cut under the freight charges of the other -nations. 
 The Germans do not pay the officers and seamen of their vessels more 
 than one-third of the wages paid those who sail in American ships. 
 
 There are also German lines to the West Indies, the Spanish maiu^ 
 and the ejist coast of South America.
 
 15G TRADE AND TRANSPORTATIOX BETWEEN 
 
 A GERMAN FLOATING COMMERCIAL EXPOSITION. 
 
 Sir H. Barron, Bart, C. M. G., Her Majesty's minister at Stuttgart, in 
 a dispatch, dated the 24th January last, with reference to the establish- 
 ment of a German floating commercial museum, says : 
 
 It 18 announced in the official Gewerbeblatt that in order to open new markets for 
 German manufacturers, it has been determined to create a permanent traveling float- 
 ing " Musterlager " or display of goods. A gigantic steamer is to be built for the pur- 
 ]>ose of a floating exhibition palace, and is to visit at regular periods all the great 
 harbors of the world, the rotation lasting two years. 
 
 It is expected to attract purchasers and visitors in great numbers, not only by its 
 size and novelty, but by concerts and refreshments. 
 
 This vessel is to sail from Hamburg in the spring of 1890, and thence around the 
 world by North and South America, California, Japan, China, Australia, India, and 
 the Mediterranean Sea. The dimensions are to be, length, 172 meters; breadth, 21 
 meters; depth, 14 meters. The capital required is estimated at .^),000,000 marks 
 (£250,000). 
 
 The German Export Union takes a warm interest in this undertaking, and appeals 
 to all who may desire to contribute capital, goods, or personal services to communi- 
 cate with that s(»ciety at Berlin. 
 
 With reference to the formation of this floating museum the German Journal fiir 
 Ex-import, Industrie, Handel uud Gewerbe says that a gigantic steamer is to be con- 
 structed, which, following a regular itinerary, will visit the principal foreign ports of 
 the world in succession, and will be accessible not only to buyers, but to all persons 
 interested. This steamer, by its great size as well as by the novelty of its purpose, 
 is expected to attract large crowds at the ports at which it touches. After careful con- 
 sideration it has been decided that each voyage of the steamer should, to be of real 
 use, last two years. Under these conditions the steamer would bo able to .stay in 
 each of the commercial centers which it visits long enough to be of ))ractical service 
 to German trade, and it could so time its visits as to arrive at favorable periods of 
 the year. 
 
 Hamburg has been chosen as the point of departure. Exhibitors and others in- 
 terested in the enterprise will have an opportunity of seeing the steamer in that city 
 before she starts on her voyage aronnd the world. The route has been decided upon, 
 and the ports mentioned below will be visited in the following order : 
 
 Copenhagen, Kronstadt, Stockholm, Gothenburg, London, Amsterdam, Rotterdam, 
 Antwerp, New York, Philadelphia, Baltimore, New Orlean.s, Vera Cruz, Havana, 
 Laquapa, Bahia, Rio do Janeiro, Santos, Montevideo, Buenos Ayres, Valdivia, Val- 
 paraiso, Callao, Guatemala, Mauzanillo, San Francisco, Yokohama, Nagasaki, Shang- 
 hai, Hong-Kong, Bjiugkok, Singapore, Calcutta, Jiombay, Madras. Colombo, Batavia, 
 Port Adelaide, Melbourne, Sydney, Cape Town, Tamatave, Zanzibar, Aden, Suez, Port 
 Said, Jaffa, Beyrout, Smyrna, Constantinople, Odessa, Athens, Messina, Palermo, 
 Naples, Civita Vecchia (.for Rome), Genoa, Barcelona, Malaga, Tangiers, Lisbon, 
 and back to Hamburg. •
 
 THE UNITED STATES AND LATIN AMERICA. 157 
 
 VIII. 
 
 THE POLICY OF SPAIN. 
 
 Spain pays a bouuty of 32s. per tou on vessels bailt in that country, 
 and admits duty free all materials required in the constru<;tion, repair, 
 and equipment of their vessels. 
 
 The Spanish Government subsidizes three divisions of steam-ships, 
 all of which interfere greatly with the trade of this country with the 
 West Indies and South America. The service in the first division is be 
 tween Cadiz, Spain, to Vera Cruz, and is paid for at the rate of $18,501.13 
 per voyage. This first division costs the Spanish Government annually 
 $556,939.50. 
 
 The second division includes what is known as the Spanish Mail or 
 West Indies, and is subsidized with $222,013.15 per annum. 
 
 The third division embraces the steamship line plying between 
 Havana, the United States, and Quebec, Canada. The subsidy for this 
 line annually is $243,687.60. These steamers carry cargoes to New York 
 from Havana, Cienfuegos, Matanzas, Cardenas, Caibarien, in Cuba; 
 from Vera Cruz and Progresso ; from Porto Kico, St. Johns, and other 
 ports ; from Hayti, Port au Prince, and in the Republic of Colombia, 
 from Savanilla. These Spanish steamers run in direct opposition to 
 the American steam ship lines. They take freight and passengers from 
 the Ward line and the '' Eed D " line, besides depriving a large num- 
 ber of American sailing vessels trading regularly with the West Indies, 
 Central and South America of the business they have formerly done. 
 
 The Spanish Government also pays a bounty of $1.83 per mile trav- 
 eled to its West India line; $1.40 to the line to the Philippine Isl- 
 ands, and $1.10 per mile to the line to Buenos Ayres. 
 
 In addition to the subsidies above noted Spain paid her steam-ships 
 $436,180 last year for the transportation of mails. 
 
 PRINCIPAL POINTS OF CONTRACT BETWEEN SPANISH GOVERNMENT 
 AND THE COMPANIA TRANSATLInTICA ESPANOLA, PROVIDED 17 
 NOVEMBER, 1886. 
 
 Last part of article 4. — Contracts shall continue twenty years and 
 shall be (;onsid('ied prorogued for two years before its termination, 
 '^bivjh shall not be denounced by either of the parties. Prorogation
 
 158 TRADE AND TRANSPORTATION BETWEEN 
 
 shall not extend longer than two years, at the end of which the State 
 can terminate the contract if it deems proper. 
 
 Article 5. — The State agrees to pay a subvention of 10.18 pesetas 
 (say two dollars and some cents) per mile on the American line, 7.15 
 pesetas per mile on the line of the Philippine Islands, .73 of a peseta 
 per mile of service on the connecting lines. On the opening of the 
 Panama Canal the Government should not pay on the extended branch 
 from Colon to Guayaquil more than the canal dues. 
 
 For the service to Buenos Ayres, 5.93 peseutas per mile (say one dol- 
 lar and eighteen cents). 
 
 For the service from Fernando Po, same compensation. 
 
 From Marruecos, the same. 
 
 The payment by the State must be paid in coin money without any 
 discount whatever. • 
 
 Article 6. — The Government obliges itself to not make another con- 
 tract during the existence of this; not to give a subvention to any other 
 new line of steam-ships between these points. 
 
 The company shall enjoy all the privileges and advantages given by 
 general laws in favor of the Spanish merchant marine. 
 
 Likewise it shall not be subjected to any special impost. 
 
 If the Government desires to increase or diminish the number of an- 
 nual trips, this can be done by increasing or decreasing the proportion- 
 ate payment. 
 
 Article 7. — If at the end of five years the treasury of the company ' 
 shows a surplus of profits, the Government may demand that one third 
 of this excess shall be employed in extending new lines or increasing 
 the accommodation of the existing lines. To determine the existence of 
 this excess the company shall keep a special account regarding each 
 of the vessels, in which they shall carefully state: 
 
 (1) The coming running expenses of the ship. 
 
 (2) The proportional part of the general expense in the operation of 
 the contracted lines. 
 
 (3) Six per cent, of the value of the vessel as insurance premium. 
 
 (4) Five per cent, of the capital of the vessel and 20 per cent, of the 
 fittings, as a sinking fund. 
 
 (5) Five per cent, of the value of the inventory of the boat. 
 
 (6) Five per cent, as a reserve fund. 
 
 (7) Expenses of crew, coal, machinery, etc. 
 
 The difference between the receipts and these expenses shall be the 
 excess. 
 
 Article 8. — When the company, in the performance of this contract, 
 l)resents vessels purchased abroad, they shall be relieved of the pay- 
 ment of the duties which belong to the State on their introduction, 
 change of flag and matriculation, as also those which belong on the ton- 
 nage of each vessel acciording to their mejisnrement ; butif any of these 
 vessels are destined to other service or transferred to another individ- 
 ual, these said duties shall be immediately paid.
 
 THE UNITED S'J'ATES AND LATIN AMERICA. 159 
 
 In article 50, all agents of the company shall be provided by the 
 Government with samples of the products of the Peninsula (Spain) 
 and her possessions in seas, with statements of the prices of the same. 
 
 These agents shall be obliged to insure, at the usual rates and condi- 
 tions, all merchandise intrusted to the company for carriage, and trans- 
 fer to the producers of the goods, which seem most similar by the 
 samples, all requests which may be made to them for such goods, and 
 to remit in payment the value of all fabrics sold by them at the most 
 favorable rates of exchange to the producer. 
 
 A SPANISH FLOATING EXPOSITION. 
 
 In the spring of 1889 the steamship Conde de Wilana (which is in- 
 tended for a floating exposition of Spanish industrial products, like that 
 which is being arranged under the auspicies of the German Govern- 
 ment, and will visit the ports of Central and South America) was in- 
 augurated at Varsalona by the Most Excellent and Most Illustrious 
 Marquis dfe Pena-Plata, Captain-General of the Province of Catalonia. 
 This shij) was built for Count Vilana, a Spanish grandee of the first 
 class, who proclaimed to all traders and manufacturers of Spain that 
 he would be ready to receive on board all sorts of manufactured articles 
 for shipment to Latin America, such exhibits to be sold there or to be 
 used as sample for orders from the merchants of the places visited. 
 
 This most excellent hidalgo published a rather fantastical list of ar- 
 ticles, which he desired to carry as samples to Spanish America, and 
 l)romised to greatly increase the trade between Spain and her former 
 colonies across the sea. The floating exposition is expected to reach 
 South America by the first of January, 1890, and will remain there for 
 several years, cruising from port to port.
 
 160 TRADE AND TRANSPORTATION BETWEEN 
 
 IX. 
 
 THE POLICY OF ITALY. 
 
 An Italian law, passed on the 6th of December, 1885, provided a 
 bounty, for a term of ten jears from the date of the passage of the act, 
 on the construction of steam-ships and sailing vessels of either iron or 
 steel and on sailing vessels ot wood. The bounty on iron or steel vessels 
 was fixed at the rate of 48s. per ton of gross measurement, and the bounty 
 on sailing vessels built of wood at 12s. })er ton. The bounty upon ships 
 built for the internal or coasting commerce of the country is 24s. a ton. 
 An additional bounty for ten years is paid upon the construction of 
 marine engines and boilers ; on engines Ss. per horse-power, and on 
 boilers 4s. lOd. per quintal (212 pounds) in weight. 
 
 The above bounty is also extended to repairs executed in Italy, and 
 article 4 of the act provides that bounties on the construction of all 
 steamers, engines, and boilers shall be increased from 10 to 20 per cent, 
 if the steam-ships are constructed so as to be useful for military pur- 
 poses. In order to qualify for this special bounty the steam-ships must 
 be divided into a sufiQcient number of water-tight compartments, to be 
 able to float when one compartment has been invaded by the sea, and 
 must show not less than 14 miles per hour, and the engines must be pro- 
 tected by coal-bunkers. A sufficient space must also be allowed for the 
 storage of coal for steaming 4,000 miles. 
 
 BOUNTIES ON CONSTRUCTION AND REPAIRS. 
 
 The report of the minister of marine shows that during 1886 $22,165 
 was paid as bounties on construction, and $22,935 in 1887. The amount 
 of bounty paid for repairs in 1886 was $30,175, and in 1887, $36,050. No 
 expenditure, up to the latest reports, has been made on account of the 
 special bounty payable to steam-ships adapted to military i)ur[)Oses. 
 The total amount paid under the law during the last two years has been 
 $111,325. 
 
 On the 14th of July, 1887, a law was passed establishing additional 
 bounties for the construction of ships. To the bounty of 48s. on iron and 
 steel ships allowed by the law of 1885, 13s. 9^/. is added. To the bount^^ 
 of 12s. a ton for wooden ships 2s. is added. To the bounty for coasting 
 and internal vessels of 24«., Gs. is added. For marine engines 2s. per
 
 THE UNITED STATES AND LATIN AMERICA. 161 
 
 liorse-power is added, and for boilers 2s. per quintal, and the act of 1887 
 allows £2 per ton of gross measurement for vessels suitable for militaiy 
 purposes ; (is. per horse-power for marine engines on such vessels ; 8.v. on 
 the construction or repair of boilers, per quintal ; and 8.s'. per quintal for 
 sundry ax)paratus, and subsidiary engines used on board. 
 
 BOUNTY ON IMPORTED COAL. 
 
 The law also provides for a bounty of i)s. (M. per ton on coal imported 
 into the country from foreign nations, and an additional bounty on navi- 
 gation of 12J cents United States money, per ton of gross measure- 
 ment, for every thousand miles made by sailing-vessels or steamships, 
 the number of miles run to be reckoned according to the shortest sea 
 routes between ports. 
 
 The number of vessels which earned the bounty for importing coal in 
 1886 was 1G4, and in 1887, 118. The bounty earned in 1886 was $27- 
 635 ; in 1887, $33,655. 
 
 The bounty earned by steam- vessels for navigation in 1886 was $166,- 
 685, and in 1887, $224,780. 
 
 The bounty earned by sailing-vessels in 1886 was $499,100, and in 
 1887, $481,445. 
 
 The total amount of bounty i^aid in 1888 by Italy to its steam-ships 
 was $1,570,938. The steamers in 1888 received additional compensa- 
 tion amounting to $1,732,876 for the transportation of mails ; the boun- 
 ties being granted by the marine and not by the post-office depart- 
 ment. 
 
 ITALIAN LINES TO SOUTH AMERICA. ^ 
 
 The Compagnie Florio-Rubattino under contract with the Italian 
 Government sends a steamer every fortnight from Genoa to Monte- 
 video and Buenos Ayre8,.and one each month to Valparaiso, Chili. 
 The steamers are of iron, from 2,000 to 2,800 tons register, and from 
 1,500 to 2,500 horse-power. 
 
 S. ^x. 54 11
 
 162 TRADE AND TRANSPORTATION BETWEEN 
 
 X. 
 
 THE POLICY OF THE NETHERLANDS. 
 
 Under tiate of August 24, 1889, the Hon. Samuel E. Thayer, United 
 States minister to the Netherlands, informs the Secretary of State that 
 he has made inquiries of the minister of foreign affairs of the Nether- 
 lands concerning the subsidies, mail pay, and other forms of compensa- 
 tion granted by the Government of the Netherlands to encourage steam- 
 ship lines, and has received the following reply : 
 
 I hasten to bring to your knowledge that the service between the Netherlands and 
 the West Indies is carried on by the " Royal Mail to the West Indies," whose times 
 of sailing are given in the above-mentioned list, while the " Netherlauds-Anierican 
 Steam-ship Navigation Company," running between Amsterdam or Rotterdam and 
 New York, established during the month of December of last year a monthly service 
 to Buenos Ayres, connecting also with Brazilian ports. 
 
 These two lines are the only ones maintained between our ports and those of South 
 and Central America. 
 
 Regarding transportation between the Netherlands and South and Central America 
 there is no fixed tariff applied by our companies, the freight rates varying constantly. 
 According to information received from the Nelhorlands- American Compauy, the 
 fluctuations for this year have varied in the cost of sugar from 458. to GOs. per 1,000 
 kilograms. 
 
 Other merchandise paying according to weight from 25«. to 388. per 1,000 kilogramd. 
 
 Other merchandise paying according to the space occupied from 22^8. to 38^8. per 40 
 English cubic feet. 
 
 The statement attached to the report of the minister shows that the 
 Zealand Steam-ship Company from Flushing to Queensborough, and 
 vice versa, receives a subsidy of $10,000 annually, for carrying the mails 
 of the Netherlands. For carrying the mails of other countries the 
 Government guaranties the sum of $104,000 annually, and for carrying 
 post packages the company receives 2 cents for every package of 3 
 kilograms and under. 
 
 The Royal Mail of the West Indies from Amsterdam to Demerara, 
 Trinidad, and Curasao receives a subsidy of $14,400 monthly. 
 
 The " Red D" Line of New York, for carrying the mails between the 
 colony of Curasao and the coast of South America receives a subsidy of 
 $480 annually. 
 
 The Netherlands Steam-ship Company, between Amsterdam and Ba- 
 tavia, receives a subsidy of $03,400 annually, and a-u ad.ditioiial sum for
 
 THE UNITED STATES AND LATIN AMERICA. 163 
 
 mail post packages. Besides this, the Government guaranties a certain 
 amount of return freight every voyage. 
 
 The Rotterdam Lloyd Steam-ship Company receives a subsidy of 
 $10,000 annually for fortnightly trips between Rotterdam and Batavia, 
 besides the usual compensation for the transportation of mails. 
 
 The Dutch West Indies Steam-ship Company receives $1.56 for every 
 geographical mile sailed in its voyages, the subsidy amounting to 
 from $132,000 to $140,000 annually. 
 
 The Royal Packet Company receives a bounty varying from 60 cents 
 to $8 per geographical mile sailed in its voyages, which amounted last 
 year to $269,511.40, besides the ordinary compensation for the trans- 
 portation of mails.
 
 1G4 TRADE AND TRANSPORTATION BETWEEN 
 
 XI. 
 
 THE POLICY OF BELGIUM. 
 
 The Hon. Edwin H. Terrell, under date of August 19, 1889, informs 
 the Secretary of State that the Belgian Government has recently entered 
 into a contract with the German Australian Steam-ship Company of 
 Hamburg, under which that companj^ engages that its steamers in the 
 regular service between Hamburg and the ports of Australia shall stop 
 en route at the port of Antwerp, and that for this service the Belgian 
 Government engages to pay a subvention of 1,500 francs for each trip 
 going and coming. 
 
 The Belgian postal reports show that the Government paid $172,927 
 in 1888 for the transportation of mails, $48,250 of which was paid for 
 the service to Central and South America. This, it will be noticed, is 
 about the same amount paid by the United States for the carriage of 
 its mails to Central and South America. 
 
 Belgium also has a semi-monthly steam-ship service to Brazil and the 
 Argentine Kepublic, and next year will increase the service to thirty- 
 six round trips per year, instead of twenty-four as now, paying the 
 steamers the whole postal revenue and gu aran tying $250,000 a year for 
 six consecutive years. 
 
 The Belgian Government admits free of duty all materialised in the 
 construction of ships. 
 
 BEPOET OF MINISTER TERRELL. 
 
 Legation of the United States. 
 
 Brussels, Septejnher 13, 1889. 
 Sir : I have the honor to forward this day, under separate cover, printed copies of 
 different contracts made by the Belgian Government with steam-ship companies, 
 granting subsidies, bounties and privileges for the encouragement of commerce as 
 follows : 
 
 (1) Convention for the establishment of steam-poatal service between Antwerp and 
 South America. 
 
 (lo) Convention of June 18,1885, modifying and supplementary to the foregoing 
 convention (of January 20, 1876). 
 
 (2) Convention of March 10, 1887, relative to service between Antwerp and New 
 York, made between the Belgian Government and the Belgian-American Navigation 
 Association aod the International Navigation Company of Philadelphia,
 
 THE UNITED STATES AND LATIN AMERICA. 165 
 
 C3) Convention of the Ist of March, 188G, with the North German Lloyd, for the 
 establishment of regular communication between Eastern Asia and Australia and the 
 port of Antwerp. 
 
 (4) Convention of August 17, 1887, between the Belgian Government and the For- 
 ende Steam-ship Company of Copenhagen, establishing regular communication be- 
 tween Antwerp and ports in the Baltic and Black seas. 
 
 (.'>) Convention concluded June 24, 1889, with the German- Australian Steam-ship 
 Company, providing for regular communication between Antwerp and ports of Aus- 
 tralia. 
 
 Eeferriug to your dispatch No. 10, of July 23, 1889, asking for information as to what 
 subsidies, bounties, mail-pay, and other compensation are given by the Belgian Gov- 
 ernment for the encouragement of commerce, I beg respectfully to make the following 
 report : 
 
 THE SOUTH AMERICAN SERVICE. 
 
 On the 24th of January, 1876, the Belgian Government entered into a contract with 
 a steam-ship company of Liverpool, operating under the firm name of Lamport & Holt, 
 and engaged in trade with various ports of South America (contract No. 1). 
 
 This contract provides for regular steam service semi-monthly, and after two years, 
 every ten days, between Antwerp and the ports of Rio de Janeiro, Montevideo, and 
 Buenos Ayres. The steamers are to carry the Belgian flag, convey the mails and all 
 passengers and freight. 
 
 Careful provisions are made as to days and hours of departure, other stopping 
 ports, time of voyage, price of freight and passenger tariff, transport of the mails, etc. 
 
 In compensation for the service the Government gives a bounty of 50 francs for 
 every hour in advance of time that a ship reaches its destination. In addition the 
 Government grants to the company all postal charges due the Treasury for mails 
 carried by their steamers, guarantying the company from this source an annual rev- 
 enue of two hun dred and fifty thousand francs. This contract is to hold for fifteen 
 years from January 1, 1876. 
 
 The Government also agrees to reimburse the company for all pilot, light-house and 
 signal charges which it may be compelled to pay in navigating the Schelde under 
 local regulations. 
 
 Stringent provisions are incor^wrated, requiring bond of two hundred thousand 
 francs from the company to insure the faithful execution of the contract, regulating 
 the quality of steamers, their machinery, life-saving and fire service, food supply, 
 complement of seamen, etc. The domicil of the compianyis to be at Antwerp during 
 the operation of the contract. Ample provisions are made for fines and penalties, 
 for loss or damage to mails, delays in departure, or other infractions of the contract. 
 
 June 18, 1885, the foregoing convention was modified somewhat (see contract la), 
 in additional articles, mainly increasing the number of porta at which steamers 
 could stop en route. 
 
 THE NEW YORK SERVICE. 
 
 March 10, 1887 (see contract No. 2), the Belgian Government concluded a conven- 
 tion with two steam-ship companies, providing for the establishment of regular serv- 
 ice for mails, passengers and merchandise between Antwerp and New York. Weekly 
 trips are to be made each way, and in the main the principal features of the contract 
 are substantially the same as those of the contract with the Liverpool company 
 hereinbefore set forth. 
 
 The Government guaranties to the companies an annual revenue of 380,000 francs 
 for carrying the mails, remitting to them the postal charges due the Government for 
 the same. The ships are to be of Belgian nationality, and the contract is to run five 
 years.
 
 166 TRADE AND TRANSPORTATION BETWEEN 
 
 THE ASIATIC SERVICE. 
 
 March 1, 1836, the Goyernment contracted with the North German Lloyd that the 
 compaoy's steamers in their regular service between Bremerhaven and ports of East- 
 em Asia and between Bremerhaven and Australia, going and returning, should stop 
 at Antwerp. For this service the Government pays to the company the annual sub- 
 vention of 80,000 francs, and, furthermore, agrees to reimburse the company all pilot, 
 light-house and signal charges which it may be compelled to pay in navigating the 
 Schelde. 
 
 This contract, although originally made but for one year, is still in force. 
 
 THE BALTIC SERVICE. 
 
 August 17, 1887, the Government arranged (Contract No. 4) with a Copenhagen 
 Bteam-ship line that its steamers should continue a weekly line between Antwerp and 
 the ports in the Baltic ; and that its steamers, plying between the Baltic and Batoum, 
 should stop, going and returning, at Antwerp. For this the Government is under no 
 pecuniary obligation whatever, but simply grants its governmental patronagei 
 
 June 24, 1889, the Government entered into contract with the German-Australian 
 Steam-ship Company for the establishment of regular communication between Ant- 
 werp and ports in Australia. 
 
 I have already furnished the Department with a detailed statement of the provis- 
 ions and conditions of this contract in my dispatch No. 20, The subvention paid by 
 the Belgian Government for this service is 1,500 francs for each trip, trips being made 
 every twenty-eight days from Antwerp. 
 
 In addition to the foregoing special contracts entered into by the Government for 
 the purpose of developing the trade interests of Antwerp, it grants, without any con- 
 tract to the " Kosmos" Company of Hamburg, all postal charges due the Treasury, 
 and all claims of pilotage, light-houses and signals, in the Schelde, whenever its 
 steamers, plying between Hamburg and porta in Chili and Peru, transport regularly 
 from Antwerp, dispatches, passengers and freight, at dates agreed upon in advance, 
 and after preliminary understanding. 
 
 With the hope that the foregoing data will sufficiently answer and comply with 
 the request of the Department, I have the honor to be, sir, your obedient servant 
 
 Edwin H. Terrell. 
 
 Hon. James G. Blaine, 
 
 Secretary of State. 
 
 REPORT OP CONSUL STEUART. 
 
 Mr. John H. Steuart, United States consul at Antwerp, writes the 
 Secretary of State as follows, under date of August 8, 1889 : 
 
 The volume of trade between Antwerp and South America is very heavy and the 
 connections are frequent. 
 
 There are two regular lines of steamers from this port to the River Plato and to 
 Brazil — namely, the North German Lloyd and the Lampert &, Holt. The former em- 
 ploys about eleven steamers in the South American trade, ranging from 2,300 to 3,000 
 tons each ; they can take about 25 first-class passengers and 1,000 steerage. The lat- 
 ter line employs about nine steamers and from 1,.500 to 2,800 tons each; they can carry 
 aboni 20 first-class passengers, and do not take emigrants. The Royal Mail Line also 
 makes Antwerp a port of call on the homeward voyage, but has no departures from 
 here. 
 
 In addition to the above-mentioned lines there are at least three steamers leaving 
 regularly each month for the River Plate, and also as many irregular steamers chartered 
 as occasion offers, generally of light draught, taking freight for the amaller porta ;
 
 THE UNITED STATES AND LATIN AMERICA. 167 
 
 these latter take heavy cargoes and horses, but no passengers. There are probably in 
 all nine or ten departures per month from this port for the Argentine Republic. 
 
 The departures of the regular steamers are as follows : 
 
 Lamport & Holt, for tho Kiver Plate, the Ist and 15th of each month. 
 
 North German Lloyd on the 14th and 28th of each month. 
 
 For Brazil, Lamport & Holt on the 8th and North German Lloyd on the '29th of each 
 month. Both of these lines can furnish other steamers if necessary. 
 
 For the west coast of South America there are two regular lines, namely the Ham- 
 burg Pacific and the Kosmos, each having semi-monthly sailings, and the same lines 
 send each (from September to April) a steamer once a month to Central America. 
 The former line employs about eleven steamers, ranging up to about 3, .500 tons, and 
 the latter thirteen steamers, ranging up to about 2,500 tons ; these steamers have 
 capacity for 24 first-class, 60 second-class, and 250 third-class passengers. Besides 
 the two lines mentioned there are steamers chartered and sent out to ports on the 
 west coast of South America or Central America as freight may oiler. 
 
 There are no regular lines of steamers from here to the West Indies, but there are 
 frequently charters made and vessels dispatched to the different ports of the West In- 
 dies as freight offers. 
 
 RATES OF FREIGHT TO SOUTH AMERICA. 
 
 The average rate of freight for the Argentine Republic and Brazil is from 25«. to 30a. 
 per ton, for heavy cargo or 358. to 458. for light cargo, with 10 per cent, primage. For 
 Chili and Peru from 408. to 45s., and to Central America 508. per ton. 
 
 The only two lines deriving any benefit from the Belgian Government are the Lam- 
 pert & Holt and the Kosmos. The former company has a contract by which they re- 
 ceive about £20,000 per annum, under the condition that they carry the mail free ; 
 this contract expires in 1890, and whether it will be renewed at all, or under what 
 conditions, will then be decided. 
 
 The benefit of the Kosmos line consists in free pilotage and exemption from light 
 house dues, under tho condition that the departures of their vessels are fixed for reg 
 nlar dates ; any detention would deprive them of this benefit and make them liable 
 to the same charges as any ordinary vessel. These steamers also carry a mail, the 
 amount paid, therefore, depending upon the quantity of matter carried, which is 
 generally very light. 
 I am, etc., 
 
 John H. Steuart, 
 
 Consul.
 
 1C8 TRADE AND TRANSPORTATION BETWEEN 
 
 XII. 
 
 OTHER EUROPEAN COUNTRIES. 
 
 AUSTRIA-HUNGARY. 
 
 Austria-Hungary pays $823.40 per trip between Trieste and the ports 
 of Central and South America, the sum being a mileage rate, and the 
 total amounts to about $300,000 a year. 
 
 The Government has also granted an annual subsidy of 120,000 florins 
 to the steam-ship line running between Trieste and Brazil. 
 
 NORWAY AND SWEDEN. 
 
 Norway and Sweden admit duty free all material used in the con- 
 struction of vessels. 
 
 The Storthing (Parliament) of Norway on the 17th of June, 1889, 
 granted a subsidy of $41,G55per annum for a mail steamer twice a week 
 between Bergen, Norway, and Newcastle, England, and a similar sum 
 for a weekly mail between Trondhjem and England. 
 
 RUSSIA. 
 
 The Russian Government has loaned money to its ship-builders at a 
 very low rate of interest to encourage construction, and paid subsidies 
 to the amount of $389,300 in 1888. 
 
 The Government of Russia on September 26, 1888, granted an addi- 
 tional subsidy of $05,000 annually to a line of steamers running between 
 the Russian Pacific ports and Corea, Japan, and China. 
 
 PORTUGAL. 
 
 Portugal pays an annual subsidy of $108,000 to a steam-ship line be- 
 tween Lisbon and her African colonies. 
 
 JAPAN. 
 
 Japan pays $500,000 a year for ocean postage. 
 
 TURKEY. 
 
 The Ottoman Government has never paid bounties or subsidies, but 
 timber for the construction of vessels is furnished free of charge by the 
 Government, and vessels engaged in the foreign trade are exempt from 
 harbor dues.
 
 Jlii; UNITED STATES AND LATIN AMERICA. 169 
 
 XIII. 
 
 POLICY OF THE AMERICAN NATIONS. 
 
 JIEXICO. 
 
 The Mexican Government is very enterprisin*; and liberal in its en- 
 couragement of steamship companies. It paj^s $420,000 a year to the 
 Spanish Transatlantique Line from Vera Cruz eastward ; $18,000 a 
 year to Mr. Gandencio de Llave, and has recently entered into a con- 
 tract with the Mexican International Steam-ship Company to run semi- 
 monthly steamers of not less than 800 tons register from San Diego, in 
 the United States, down the Pacific coast of Mexico as far as San Jos6 
 de Guatemala, touching all the intermediate ports, which are twenty- 
 two in number. The company is to receive $8,000 per round voyage 
 for the first five years for semi-monthly trips, which amounts to $192,000 
 a year; $6,000 per round voyage for the second five years, or $144,000 
 a year ; and $4,000 per round voyage for the next ten years, or $96,000 
 a year; which make a total of $2,640,000 pledged to this company for 
 the next twenty years. The steamers are also paid $60 per head for 
 each colonist brought into Mexico for the first five years ; $50 per head 
 for each colonist brought in the following five years, and $40 per head 
 for the remaining ten years. The steamers are to enjoy an exemption 
 from all tonnage and port dues during the continuance of the contract ; 
 are to carry the mails free ; all Government ofiicials, civil and military, 
 troops and employes, at half the rates paid by the public for the same 
 service. These subsidies are to be paid by the Mexican Government 
 from the import and export duties collected from goods imported and 
 exported in the steamers of this company. 
 
 The Government also pays a subsidy of $2,500 per month, or $30,000 
 a year, to the Pacific Mail Steam-ship Company of the United States for 
 its service on the west coast of Mexico, and $48,000 to the New York 
 and Yucatan line. 
 
 Mexico also pays European steam-ship companies, under whatever 
 flag they sail, $25 per capita upon all immigrants they bring into the 
 country. The Government has also offered a subsidy of $18,000 per 
 round trip once a month for the establishment of a line of steamers be-
 
 170 TRADE AND TRANSPORTATION BETWEEN 
 
 tween Vera Cruz and the Argentine and Brazilian ports, touching at 
 the West Indies en ronte. 
 President Diaz, in liis hist message to Congress, speaks as follows: 
 
 The contract term for the service of the Pacific mail steamers haviug expired by 
 limitation, the concession was renewed, as was also that of the steaiucr Campechano, 
 running between Vera Cruz, Progrcso, and other iuternicdiato ports. 
 
 A contract has been made with Mr. John C. Furnian for the establishment of a line 
 of steamers which will make at least monthly tri)ts between New York and Projjreso, 
 touching at Vera Crnz. The said contract iirovides for the gratuitous carrying of 
 the correspondence and other small advantages without any subvention whatever, 
 while in exchange the line enjoys only the privileges and exemptions of ordinary 
 mail steamers. 
 
 The Alexandre &, Sons line of steamers for long years has discharged the postal 
 service between Mexico, the United States, and Havana, receiving therefor a lieavy 
 subvention. Arrangements have now been completed with Mr. John Ritter, the 
 agent of the company, to continue the said service without subvention. 
 
 GUATEMALA. 
 
 Guatemala pays a subsidy of $24,000 a year to the Pacific Mail Steam- 
 ship Company, and $10,000 a year to the Honduras and Central Amer- 
 ican Steam-ship Company. The former sailing under the American Hag 
 touches her Pacific ports, and the latter sailing under the British flag 
 her ports on the Caribbean Sea. 
 
 SAN SALVADOR. 
 
 San Salvador, with a population of 600,000, pays an annual subsidy of 
 $24,000 to the Pacific Mail Steam-ship Company, about the same amount 
 that company receives from the United States. 
 
 BRITISH HONDURAS. 
 
 British Honduras pays subsidies to the amount of $7,500 annually. 
 
 HONDURAS. 
 
 The Eepublic of Honduras pays a subsidy of $5,000 a year to the Pa- 
 cific Mail Steam-ship Company for touching at her Pacific ports, and 
 $7,500 to the Honduras and Central American Steam-ship Company, 
 which touches her ports on the Caribbean Sea. 
 
 NICARAGUA. 
 
 Nicaragua pays a subsidy of $0,000 a year to the Pacific Mail Steam- 
 ship Company, and $10,000 a year to the Honduras and Central Ameri- 
 can Line. 
 
 COSTA RICA. 
 
 This little republic of 250,000 inhabitants pays a subsidy of $12,000 
 a year to the Pacific Mail Steam-ship Company, and gives a reduction
 
 THE UNITED STATES AND LATIN AISIEPJCA. 171 
 
 of duties on all merchandise brought to her Caribbean port by the 
 Royal Mail Steam Packet Company of England. 
 
 BRAZEL. 
 
 Brazil pays about two million dollars annually in subsidies, and of 
 this sum $502,000 goes to maintain communication with the United 
 States, while our Government last year paid only $11,743 to encourage 
 commerce with Brazil. 
 
 Of this sum the United States and Brazil Mail Steam-ship Company 
 received $100,000; the Red Cross Line (English), $150,000; the Booth 
 line (English), $168,000; and Sloman's line (English), $84,000. 
 
 Brazil is increasing her subsidies and has recently gi-anted a subsidy 
 to Admiral Baron de Jaequay to run two lines of steamers, one between 
 Santos and Hamburg, via Lisbon and Havre ; and one between Santos 
 and Genoa, via Marseilles, for which the contractor is to get $150,000 
 a year for twelve voyages to Europe and back. A decree imposes the 
 following conditions among others : Besides the regular run of the two 
 lines the contractor may use the steamers in bringing immigrants from 
 any port of Europe, and from the Azores, Madeira, or the Canary Isl- 
 ands to any other Brazilian port. For such journey the contractor 
 will be paid a subvention of $12,500, besides which the passages of the 
 immigrants will be paid to him either by the general or one of the pro- 
 vincial governments. A clause, too, allows the baron to begin, from and 
 after January 1, 1889, bringing immigrants at the expense of the state, 
 and at the rate of $20,000 a year for five years; and until his own 
 steamers are ready he may hire others for this purpose, but his own 
 steamers must be ready within thirty months from January 1, 1889. 
 The concession is to last fifteen years, and the contractor enjoys a pref- 
 erence in respect of any other lines of transatlantic navigation which 
 the Government may think well to set up, and he likewise enjoys pref- 
 erence in the event of this line being continued after fifteen years. On 
 his steamers arriving at any Brazilian port they are to be unloaded and 
 loaded in priority to any other ship. 
 
 The Brazilian Parliament has also voted the sum of eleven million 
 dollars to encourage the immigration of labor, the most of which will 
 go to the steam-ship companies for transportation. 
 
 The Austria-Hungary Government pays an annual subsidy of 120,000 
 florins to the steam-ship line running between Trieste and Brazil. 
 
 THE ARGENTINE REPUBLIC. 
 
 The Argentine Republic has recently made a contract with the Hous- 
 ton Steam-ship Company of Liverpool to furnish a semi-monthly service 
 between Buenos Ayres and New York^ but for some reason it has not 
 been carried out. Under this contract it guarantied 5 per cent, interest 
 per annum upon an investment of $7,500,000 in steam-ships.
 
 172 TRADE AND TRANSPORTATION BETWEEN 
 
 The Government pays a bounty to steam-ships for every immigrant 
 brought to its ports and upon all dressed beef exported to Brazil and 
 Europe. The sum of $509,004 was disbursed in this manner for a single 
 month recently, which, if the same rate is maintained during the year, 
 will make a yearly expenditure of $0,828,000. 
 
 CHILI. 
 
 The Republic of Chili pays an annual subsidy of $225,000 to the South 
 American Steam-ship Company, which performs a tri-monthly service 
 between Valparaiso and Panama. 
 
 Until the depletion of her treasury by the war with Chili the Peruvian 
 Government paid a subsidy of $100,000 a year to the Pacific Steam 
 Navigation Company. 
 
 THE WEST INDIA ISLANDS. 
 
 The various West India Islands pay an aggregate sudsidy of $72,000 
 annually for maintaining communication with New York City to the 
 Quebec and West India Steam-ship Company. 
 
 THE BAHAMA ISLANDS. 
 
 The people of the Bahama Islands are endeavoring to secure steam- 
 ship communication with the CTnited States, and the colonial secretary 
 has been advertising in the 'New York papers for proposals from parties 
 willing to run a mail, passenger, and freight steamer between Nassau 
 and certain islands of the Bahama group, every fortnight for five years 
 to come. In order that there be no mistake about it the word "sub- 
 sidy" is plainly used, the language being: "tenders to state the sum 
 per annum which the tenderers are willing to accept as a Government 
 subsidy." , 
 
 THE ISLAND OF TRINIDAD. 
 
 On the first of January, 1887, a contract was entered into between 
 the colonial government of Trinidad and Tumbull, Stewart & Co., of 
 Port of Spain, for the establishment of a line of steamers between that 
 island and the city of New York, for which a subsidy of five thousand 
 pounds ($25,000) a year for a term of seven years is to be paid. The 
 steamers are required by the contract to be equipped with suitable ac- 
 commodations for passengers, to sail semi-monthly, and the service 
 began the first of April. All postal matter and all postal, customs, 
 and police officials are to be carried free of cost. A fine of $100 is to 
 be assessed, and deducted from the monthly installments of the subsidy 
 for each day's delay in the arrival and departure of steamers under a 
 fortnightly schedule adopted by the Government, and the contract sets
 
 THE UNITED STATES AND LATIN AMERICA. 173 
 
 forth in detail the rates of freight and passage that may be ^jharged 
 between the ports of Trinidad and New York. 
 
 Trinidad also pays $25,000 a year to the "Trinidad Line" to New 
 York, and $48,000 to the Atlantic and West India Company. 
 
 THE ISLAND OF BARBADOES. 
 
 The English colony of Barbadoes, West Indies, pays an annual sub- 
 sidy of £18,000 ($1)0,000) to the iioyal Mail Steam Packet Company of 
 Southampton, England, as an inducement for that company to make its 
 principal port the rendezvous of its fleet and the distributing station 
 for its West Indian transportation. St. Thomas formerly enjoyed that 
 advantage. The Royal Mail Steam Packet Company has three fleets 
 of steamers engaged in the Central and South American trade under an 
 annual subsidy of about $400,000 from Great Britain. One fleet sails 
 directly between Southampton and the ports of Brazil, Uruguay, and 
 the Argentine Republic. A second fleet sails between Southampton and 
 Aspiuwall, via Barbadoes, touching at La Guayra and other ports of 
 the northern coast of South America. The third fleet receives and dis- 
 charges its freight from and for Europe at Barbadoes and sails via the 
 Leeward and Windward Islands to Havana and Vera Cruz, the vessels 
 being constructed especially for the West Indian service. 
 
 JAMAICA. 
 
 During 1888 eleven American steamers, aggregating 4,097 tons, 
 entered the port of New York from Jamaica, while 245 foreign vessels, 
 of 119,153 tons, kept up communication between the two ports. Thir- 
 teen American steamers, aggregating 7,620 tons, sailed from New York 
 for Jamaica, and 204 foreign steamers of 80,735 tons. 
 
 Jatnaica pays a subsidy of $72,000 a year to the Atlas Steam-ship 
 Com])auy for maintaining communication between Kingston and New 
 York. 
 
 TOBAGO, 
 
 The Island of Tobago has recently contracted for steam-ship connec- 
 .tion with New York, for which it agrees to pay $25,000 a year. 
 
 DUTCH GUIANA. 
 
 Under a subsidy from the Government of the Netherlands the Royal 
 West India Mail Service has been for some time running a monthly line 
 of steamers from Amsterdam to Paramaribo, Dutch Guiana, from there 
 to New York, and from New York to Amsterdam. This service has 
 been supplemented by another line with steamers of greater tonnage 
 and speed and better passenger accommodations, and the intervals be- 
 tween sailing days Rave been shortened to three weeks. Besides touch- 
 ing- at Paramaribo these steamers will visit La Guayra and other ports
 
 174 TRADE AND TRANSPORTATION BETWEEN 
 
 on the Spanish Main, and sail from there to New York, thus offering 
 another and serious competition both in freights and passenger traffic 
 to the " Eed D" Line that sails under the American flag. These Dutch 
 steamers take no merchandise from the United States to the ports of 
 South America, but sail the other way, bringing sugar and other pro- 
 duce, which adds to our imports but does not affect our exports. A 
 similar triangular system has been going on for years between Brazil 
 and Euroi)e. English ships bring the raw products of that empire to 
 New York, and with the proceeds of their sale purchase manufactured 
 merchandise in England,
 
 THE UNITED STATES AND LATIN AMERICA. 175 
 
 XIV. 
 
 OUR STEAMSHIP LINES TO LATIN AMERICA. 
 
 There are but seven regular lines of steam-ships sailing under the flag 
 of the United States between the ports of this country and those of 
 Latin America. These are owned and operated by — 
 
 (1) The Pacific Mail Steam-ship Company, sending vessels every ten 
 days between Xew York and Aspinwall and between San Francisco and 
 Panama. 
 
 (2) The Brazilian Mail Steam-ship Company, sending vessels monthly 
 between New York and the ports of Brazil. 
 
 (3) The "Red D" Steam-ship Company (Boulton, Bliss & Dallett), 
 sending steamers three times a month between New York and the ports 
 of Venezuela. 
 
 (4) The New York and Cuba Mail Steam-§hip Company (James E. 
 Ward & Co.), maintaining a weekly service between New York and the 
 ports of Cuba, a weekly service between New York and the ports of 
 Mexico, and a semi-monthly service between New York and Nassau 
 and other West India ports. 
 
 (5) Clyde's West India Line (William P. Clyde & Co.), sending steam- 
 ers once a month to San Domingo, Hayti^ and other West India Islands. 
 
 (6) The Morgan Steamship Company, sending steamers once a week 
 between New Orleans and Cuba. 
 
 (7) The Plant Steam-ship Company, sending steamers twice a week 
 between Tampa, Fla., and Havana. 
 
 THE PLANT STEAM-SHIP LINE. 
 
 The amount of money paid the Plant line of steamers is not contained 
 in this statement given below, for although they ply between the United 
 States and a foreign port their service is contracted for by the Post- 
 OfiBce Department under the same system that is applied to the inland 
 steam-ship service. 
 
 The Plant line service has existed between Tampa, Key West, and 
 Havana for the last three years. It has two fast steamers in commission, 
 the Alasoottej 520 tons, and the Olivette, 1,105 tons. The Mascotte runs
 
 17G 
 
 TRADE AM) TRAXSPOUTATIOX BETWKEN 
 
 twice it week the whole year rouud. The Olivet is only used to accom- 
 modate the heavy wiuter travel to the West Indies. Durinp; the sununer 
 mouths the Olivet sails between Boston and Bar Harbor. The steamers 
 leave Tami)a upon the arrival of the through trains from New York 
 and arrive in Ilavaiia the following morning. The amount paid this 
 company for carrying the mails three times a week during the winter 
 months and twice a week during the summer months is $58,500 a year, ■ 
 or $10,000 more than is paid to all the other steam -ship lines between 
 the United States, the West Indies, and Central and South America. 
 If similar compensation were guaranteed other lines we would have 
 regular weekly communication between the ports of the United States 
 and all the South American countries. 
 
 THE MORGAN COMPANY. 
 
 The Morgan line sends steamers between New York and New Or- 
 leans every ten days, and between New Orleans, Havana, and the 
 Mexican ports. This line has seven steamers, the Morgan City, 1,291 
 tons ; the Arlmnsas, 1,157 tons ; the Algiers, 1,287 tons ; the Sutehin- 
 sow, 910 tons; the (7/ia?»ie;(^ 1,931 tons ; the Excelsior, 2,4,07 tons; and 
 the New York, 1,259 tons. For the fiscal year ending June 30, 1888, 
 the line carried 334 pounds United States letters and 23I24 pounds 
 prints, for which the compensation was $703.58. 
 
 There are several other comi)anies sending vessels more or less reg- 
 ularly between the ports of the United States and those of Central and 
 South America, all of which are embraced in the following list, taken 
 from the report of the Postmaster-General for 1888. The statement 
 also shows the amount of money each company received daring that 
 year for the transportation of the United States mail : 
 
 Name of steam-sbip line. 
 
 Destination. 
 
 Compen 
 sat ion. 
 
 Pacific Mail (from New Tort) 
 
 Pacific Mail (from San Francisco). 
 
 New Yorlc and Cuba Mail 
 
 Steamer Ilaytien Republic 
 
 Lord & Austin 
 
 Chde 
 
 l{od"D" 
 
 AVincbester &,Co 
 
 New York, Havana and Mexican.. 
 
 Kityal Mail 
 
 Morj;an 
 
 Do 
 
 1)0 
 
 Otcri's Pioneer 
 
 United States and Brazil Mail 
 
 Now Orleans and Colombia 
 
 Pacific Mail 
 
 United States of Colombia 
 
 do 
 
 Cuba 
 
 nayti and Turk's Isjland 
 
 do 
 
 Ilayti and San Domingo 
 
 Venezuela and Cura9oa 
 
 Pi)rto llico - 
 
 Mexico 
 
 Ceil tral America 
 
 Cuba 
 
 Mexico 
 
 Central America 
 
 Honduras and Ouatoraala 
 
 Brazil and Windward Islands... 
 
 United States of Colombia 
 
 Inward service 
 
 Total , 
 
 $20, 153 
 
 2,S35 
 
 195 
 
 :{07 
 
 175 
 
 1, 124 
 
 C, (184 
 
 49 
 
 664 
 
 3,893 
 
 156 
 
 64 
 
 482 
 
 360 
 
 11, 733 
 
 14 
 
 76 
 
 48, 072
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 177 
 
 FOREIGN LINES. 
 
 There are also a large number of steam-sliip lines owned by foreign 
 conii)anles and operated under the flags of foreign nations, funiisliiug 
 transi)ortation between the ports of the United States and those of 
 Central and South America. 
 
 THE ATLAS STEAM- SHIP COMPANY. 
 
 One of the most successful foreign lines, as well as the most danger- 
 ous competitor to American steam-ships, is the Atlas Company, owned 
 by English stockholders and sailing under the British flag. 
 
 The Athis Company has a fleet of eleven steamers in service at pres- 
 ent, with one on the stocks which will be launched shortly, and another 
 at the bottom of the North Eiver, where it was sunk by collision some 
 months ago. Arrangements are being made to raise it, and it will 
 probably be in the ship-yards for repairs before this report is printed. 
 The following is a list of the steamers engaged at i^resent in the service 
 of the Atlas Company : 
 
 steamers. 
 
 Tons. 
 
 steamers. 
 
 Tons. 
 
 
 2,700 
 2,200 
 2, 200 
 2, 200 
 2,200 
 2,000 
 500 
 
 
 2,000 
 1 800 
 
 
 
 
 Atlas .. 
 
 1 600 
 
 Alvo 
 
 
 1 500 
 
 
 
 1 100 
 
 
 
 600 
 
 
 
 
 
 
 These vessels are all of iron and steel, were built by the most cele- 
 brated contractors in Scotland, and each fit for the passenger trade. 
 By reason of their ability to maintain their steamers cheaper than the 
 American steamer can be maintained and the subsidy received from the 
 colonial government of Jamaica, the Atlas Line is able to carry freight- 
 at much less than is charged by the competing American lines, and has 
 been very prosperous. It is a matter of common report that the profits 
 on its last year's business will more than pay the cost of the new steamer 
 that is now building and the repairs of that which was sunk last spring. 
 
 The service of the Atlas Company covers the West Indies and the 
 Spanish Miiin. The steamers Sail from New York to Hayti, Jamaica, 
 and other West India islands, and all the principal ports on the north 
 coast of South America, and carry the United States mails. During 
 the year 1888 the Atlas Company received $2,172 compensation from 
 the United States Government for the transportation of the mails. 
 iS. Ex. 51 12
 
 178 
 
 TRADE AND TRANSPORTATION P.ETWEEN 
 THE BED CROSS LINE. 
 
 The Red Cross Steamship Company, which is owned by English cap- 
 ital, runs between New York City via Baltimore and the ports of Bra- 
 zil. Its steamers are of first-class English construction, of two thousand 
 tons or more. It receives a subsidy of $150,000 a year from the Bra- 
 zilian Government, and received $189 from the (Juited States last year 
 for carrying the mails to Brazil. 
 
 THE BOOTH STEAM SHIP COMPANY. 
 
 The Booth Steam-ship Company, which is owned by English capital 
 and sails under the British flag, sends one steamer monthly between 
 New York and the ports of Brazil, and bi-monthly steamers to the ports 
 of the Amazon, for which it receiv^es $7,000 per voyage from the Bra- 
 zilian Government, or a total of $168,000 a year. 
 
 ROYAL DUTCH WEST INDIA COMPANY. 
 
 This company, which is owned by Holland capitalists and sails un- 
 der the flag of the Netherlands, is engaged in what is known as the 
 triangular service, sailing from Amsterdam to the ports of the West 
 Indies, Venezuela and Colombia, and then returns to Amsterdam by 
 way of New York. It receives a subsidy from the Government of the 
 Netherlands of $14,400 monthly for the transportation of the mails to 
 Demarara, and also a bounty of $1.56 for every geographical mile sailed 
 in its voyages, which amounts annually from $132,000 to $140,000. Its 
 aggregate subsidies average $150,000 a year. This company has four 
 fine steamers, as follows : 
 
 steamer. 
 
 Tons. 
 
 steamer. 
 
 Tons. 
 
 Prins Wiliom I 
 
 1, 250 
 1,500 
 
 
 1 250 
 
 
 
 1,250 
 
 
 
 
 By reason of its subsidy this company is enabled to cut under the 
 rates charged by the Red D Line to Venezuela, and is its most danger- 
 ous competitor. It carries no freight from New York to the South 
 American ports direct, and therefore contributes little or nothing to 
 our exports, but comes here loaded with the sugar of Dutch Guiana and 
 other products of the South American countries, which it leaves at 
 New York, and therefore adds largely to our imports from those coun- 
 tries. It also carries a good deal of freight to the South American 
 countries by way of Amsterdam, and is able to give a rate from New 
 York across the Atlantic and then to South America cheaper than 
 a direct American line can aftbrd to offer. It is said that our imports 
 from South America by this line last year were $14,442,000 and oyu: 
 exports $11,497,000.
 
 THE UNITED STATES AND LATIN AMERICA. 179 
 THE HONDURAS AND CENTRAL AMERICAN COMPANY. 
 
 The Honduras tiud Ceutral American Company, which sails under 
 the British flat?, sends two steamers a month from New York by way of 
 Jamaica to the Central American ports on the Caribbean Sea. It has 
 two tine steamers, the Auguan^ 1,213 tons, and the Hondo, 1,200 tons, 
 built of steel in 1887, with fine passenger accommodations. The time 
 of i)assage from New York to Jamaica is five and one-half days, and 
 from Balize, Honduras, to New York, six days. A new steamer of 
 1,800 tons is being built for this line, and will be put in commission 
 during the coming winter. 
 
 This company receives a subsidy of $10,000 a year from Guatemala, 
 $10,000 a year from Nicaragua, $7,500 a year from Spanish Honduras, 
 and $5,000 a year from British Honduras, making a total of $32,500 a 
 year, and comes in direct competition with the Pacific Mail Company 
 and the New York and Cuba Mail Steamshij) Company, which sail 
 under the -A merican flag. It receives in subsidies from the Central 
 American governments, as will be seen, $10,000 more per year than is 
 paid by the United States to the competing lines which sail under 
 its flag. 
 
 SLOMAN'S NEW YORK AND BRAZIL LINE. 
 
 The Eobert N. Sloman New York and Brazil Line sends a steamer 
 every month between New York and Baltimore and the ports of Brazil. 
 It has four steamers of about 1,500 tons burden, which carry freight 
 alone, and take neither passengers nor mails. It receives the sum of 
 $7,000 per voyage from the Brazilian Government, or a total of $84,000 
 per year. 
 
 THE SPANISH WEST INDIA LINE. 
 
 The Comj)aiiia Transatl^ntica Espanola receives a subsidy of $430,180 
 from the Government of Spain, and $420,000 annually from the Gov- 
 ernment of Mexico, or a total subsidy of $856,180, or eighteen times 
 more than is paid by the United States to al,l the foreign steamers that 
 sail under its flag. 
 
 Three steamers a mouth leave New York for Havana and Vera Cruz, 
 touching at the principal ports of the West Indies and the Spanish 
 Main. It has a large number of steamers of greater tonnage than any 
 sailing under the United States flag. 
 
 NEW YORK AND PORTO RICO STEAM-SHIP LINE. 
 
 This company sends a steamer every three weeks between New York 
 and Porto Eico. 
 
 QUEBEC STEAM- SHIP COMPANY. 
 
 This company operates a line of steamers between New York, Ber- 
 muda, and the West India Islands, sailing once a week, and receives a 
 subsidy aggregating $2,000 a voyage, or $72,000 a year, from the
 
 180 TRADE AND TRANSPORTATION BETWEEN 
 
 various West India Islauds at whose ports it touches. It has five 
 steamers, fitted up for passenger travel, uamely : 
 
 steamer. 
 
 The Orinoco . . 
 
 Trinidad 
 
 Flamborough . 
 
 Tons. 
 
 1.200 
 
 1,500 
 
 750 
 
 Steamer. 
 
 Bermuda 
 Muriel 
 
 Tons. 
 
 1,000 
 1,000 
 
 Last year this company received $1 ,CG5 for carrying the United States 
 mails. 
 
 NEW YORK AND JAMAICA LINE. 
 
 This line sends steamers irregularly, under the English flag, between 
 New York and the ports of Jamaica. As a rule they go down in bal- 
 last and return laden with sugar and fruits. 
 
 TRINIDAD LINE. 
 
 This company, which sails under the English flag, owns two steamers, 
 and charters a third, which sail every alternate Thursday from New 
 York to Port of Spain, Trinidad. It receives a subsidy of $25,000 a 
 year from the colonial government of Trinidad, or more than half as 
 much as is paid by the Government of the United States to all 
 steamers that sail under its flag. 
 
 THE TAURUS LINE. 
 
 This line belongs to an English company, and sends a steamer 
 monthly', or oftener if necessary, to the ports of Porto Rico, and carries 
 freight only. 
 
 THE people's LINE FOR HAYTI. 
 
 This is an English company which sends a steamer once a month, or 
 oftener if the freight demand warrants it, between New York and the 
 ports of Ilayti. It carries no passengers or mails. 
 
 NEW YORK AND YUCATAN STEAM-SHIP COMPANY. 
 
 This company operates under the English flag, and has two steamers, 
 the East Gate^ 1,000 tons, and the Tangier, 1,260 tons, which sail semi- 
 monthly between New York and the ports of Mexico, and receives a 
 subsidy of $2,000 per trip from the Mexican Government. 
 
 THE ANCHOR LINE. 
 
 The Anchor Line, which is owned by an English company, has a 
 fortnightly service between New York and Jamaica with two steamers 
 of about 1,000 tons, but it takes no freight or mails and receives no 
 subsidy.
 
 THE UNITED STATES AND LATIN AMERICA. 181 
 
 THE ATLANTIC AND WEST INDIA LINE. 
 
 Thislineisownedby an English company, and sends steamers monthly 
 between New York and Trinidad, slopping at other ports of the West 
 Indies, and receives a subsidy of $48,000 from the colonial government 
 of Trinidad. 
 
 THE WINCHESTER. 
 
 Messrs. J. W. Winchester & Company, English capitalists, send a 
 steamer under the British flag every two weeks between New York and 
 the West Indies, and a steamer once a month from New York to Brazil. 
 Its steamers are of 1,200 tons burden, but take no passengers or mails. 
 
 THE ERN LINE. 
 
 The Ern Line has a fleet of three steamers, owned by English capi- 
 talists, which ply between Philadelphia and St. Jago ; they carry no 
 passengers or mails, but usually go out loaded in ballast and come back 
 loaded with iron ore. 
 
 THE NEW ORLEANS AND BALIZE ROYAL MAIL. 
 
 This is an English company which operates a weekly service between 
 New Orleans and the northern ports of Central America, and receives 
 a small subsidy from the Government of British Honduras. It has 
 three steamers — the Breakwater^ City of Dallas^ and the Wanderer — 
 with a total tonnage of 2,500 tons, and last year received $3,393 from 
 the United States for carrying the mails. 
 
 OTERl'S PIONEER LINE. 
 
 This company, which has one American vessel of C95 tons and three 
 steamers wliich sail under the English flag, operates a semi-monthly 
 service between New Orleans and the northern ports of Central America. 
 It carries no passengers or mails. 
 
 NEW ORLEANS AND COLUMBIA LINE. 
 
 This line belongs to an English company which sends steamers twice 
 a month during the freight season between Aspinwall and other ports 
 of Colombia and New Orleans. 
 
 THE TRAMP NUISANCE. 
 
 The most serious competition which steamers bearing the flag of the 
 United States are compelled to contend wiUi comes from so-called tramp 
 vessels — the guerillas of the sea. They are generally worn-out hulks, 
 discarded by the companies who owned them, and sent out as a matter 
 of speculation to pick up what freights they can from port to port, like 
 an old and worthless horse turned out of the regular pasture to find his 
 living by the roadside.
 
 182 
 
 TRADE AND TEANSPORTATION BETWEEN 
 
 These tramps leave their native countries, principally England, Ger- 
 many, and Spain, a few months before their annual certificates of in- 
 spection exiiire. They can and do remain away for years, and as long 
 as they do so there is no power to compel them to undergo survey and 
 inspection. Some of these tramps visit the colonial ports of the coun- 
 trj^ under whose flag they sail, but this is a very small x^ortion of their 
 business. Their principal business is done between the United States 
 and foreign ports, and as the cost of maintaining them is merely nom- 
 inal, they are enabled to cut under the regular lines of steamers to any 
 extent that may be necessary to get the trade. Many of them unite a 
 commercial business with the transportation business, and when they 
 can not obtain cargoes in the regular way they purchase goods, or take 
 them upon consignment, to be sold at the ports they visit. The Amer- 
 ican steam-ship lines with which they compete sell transportation pure 
 and simple, and are not allowed by law to discriminate in rates of 
 freight. 
 
 TABLE OF DISTANCES. 
 
 In connection with the question of establishing additional lines of 
 steamers between th e United States and Central and South America, 
 the following table of distances in statute miles, by steamer routes, from 
 New York and from New Orleans, respectively, to the ports named, 
 will prove of interest : 
 
 [Famished by the Hydrographic OflBce of the United States Navy Department] 
 
 From New York to — 
 
 Havana. Cuha 
 
 Maracaibo, Venezuela 
 
 Georgftown, British Guiana 
 
 Paramaribo, Dutch Guiana 
 
 Para, Brazil 
 
 Pemambuco, Brazil 
 
 Bahia, Brazil 
 
 Kio Janeiro, Brazil 
 
 Montuviileo, Uruguay 
 
 Burnos Ayres, Argentine Republic 
 
 Valparaiso, Chili* 
 
 Callao (Lima), Peru* 
 
 Carthagena, tinited States of Colombia 
 
 Miles. 
 
 1,451 
 2, :!03 
 
 2, COS 
 2,741 
 
 3, 455 
 4,319 
 4,733 
 5, 528 
 0, 690 
 0, 794 
 9,789 
 
 11,274 
 2, 337 
 
 From New Orleans to — 
 
 Havana, Cuba 
 
 Maracaibo, Venezuela 
 
 Georgetown, British Guiana 
 
 Paramaribo, Dutch G uiana 
 
 Para, Brazil 
 
 Pemambuco, Brazil 
 
 Bahia, Brazil 
 
 Rio Janeiro, Brazil 
 
 Ikloiitc video, Uruguay 
 
 Bu(>ii()s Ayres, Argentine Republic 
 
 Val]i;u:ii.s(), Chili* 
 
 Callao (Lima), Pern* 
 
 Carthagena, United States of Colombia 
 
 Miles. 
 
 714 
 2,048 
 2,879 
 3, 052 
 3, 915 
 5. 009 
 5, 412 
 6,218 
 7,393 
 7,508 
 10, 438 
 11, 988 
 1,612 
 
 ' Through Straights to Gulf of Penas.
 
 THI-: UNITED STATES AND LATIN AMERICA. 183 
 
 XV. 
 
 THE PACIFIC MAIL STEAMSHIP COMPANY. 
 
 New York, September 18, 1889. 
 Sir : Your favor of July 26, 1889, has been referred to me, and in an- 
 swer to the questions submitted therein I beg leave to reply as fol- 
 lows : • 
 
 ITS BEGINNING AND EXTENSION. 
 
 The Pacific Mail Steam-ship Company is a corporation chartered by 
 a special act of the legislature of the State of New York, passed in 
 1848, the charter having been extended by supplemental acts passed in 
 1868 and 1888. At the time of the commencement of business by the 
 company there was a large and growing passenger traffic between the 
 port of New York and California, culminating in 1849, during the time 
 of the gold fever, in a business which was devoted almost exclusively 
 to the carrying of passengers, there being little or no freight to be for- 
 warded between the port of New York and what subsequently became 
 San Francisco. 
 
 The nature of the company's business was determined by the fact 
 that there was little or no commerce between the port of New York and 
 the Central American and Mexican States. The ships of the company 
 which were in use at the commencement of its business were, there- 
 fore, fitted up and run to meet the rush of people from the Eastern 
 States to the gold fields of California. Since that time there has been 
 a great change in the nature of the traffic carried on by this com- 
 pany, and it has extended its routes by taking in not only a coast trade 
 on the western coast of Central America and Mexico, but also a trans- 
 Pacific trade to Japan and China. This extension of its business, as 
 well as the large increase of the volume of merchandise imported from 
 and exported to the ports above mentioned, has called for an increase 
 in the number as well as in the tonnage of the vessels of this com- 
 pany. 
 
 THE company's VESSELS. 
 
 • 
 
 The company is now the owner of seventeen vessels, as follows : 
 The Citu of Peking, a freight and passenger screw-steamer, of 6,079 
 tons, built by John Roach at his yards, and costing $1,437,397.04.
 
 184 TRADE AND TRANSPORTATION BETWEEN 
 
 The City of Rio de Janeiro, a freight and passenger screw-steamer, of 
 3,548 tons, built by John Koach at his yards, and costing $522,123.21. 
 
 The City of Para, a freight and passenger screw-steamer of 3,532 
 tons, built by John Roach at his yards, and costing $554,903.98. 
 
 The City of New YorJc, a freight and passenger screw-stea*uer of 3,019 
 tons, built by John Roach at his yards, and costing $763,157.24. 
 
 The City of iSydney, a freight and passenger screw-steamer of 3,01G 
 tons, built by flohn Roach at his yards and costing $700,820.23. 
 
 The Colima, a freight and passenger screw-steamer of 2,905 tons, built 
 by John Roach at his yards, and costing $488,380.08. 
 
 The Neicport, a freight and passenger screw-steamer of 2,735 tons, 
 built by John Roach at his yards, and costing $300,034.85. 
 
 The Colon, a freight and passenger screw-steamer of 2,685 tons, built 
 by John Roach at his yards, and costing $004,750.52. 
 
 The Acapulco, a freight and passenger screw-steamer of 2,572 tons, 
 built by tiie Harlan & Hollingsworth Company, at Wilmington, Del., 
 and costing $000,232.81. 
 
 The San Jose, a freight and passenger screw-steamer of 2,180 tons, 
 built by John Roach at his yards, and costing $367,256.08. 
 
 The San Bias, a freight and passenger screw- steamer of 2,180 tons, 
 built by John Roach at his yards, and costing $350,057.78. 
 
 The StarhucJc, a freight and passenger screw-steamer of 2,157 tons. 
 This vessel was a foreign vessel which had been built over and repaired 
 sufficiently to comply with the law authorizing her being registered as 
 an American vessel, and she cost the company $320,920.43. 
 
 The South Carolina, a freight and passenger screw-steamer of 2,099 
 tons, built at Boston, Mass., and costing $270,000. 
 
 The San Juan, a freight and passenger screw-steamer of 2,076 tons, 
 built by John Roach at his yards, and costing $351,044.88. 
 
 The Clyde, a freight and passenger screw-steamer of 2,016 tons, built 
 by the Messrs. Cramp at rhiladelphia, and costing $325,386.29. 
 
 The Crescent City, a freight and passenger screw-steamer of 2,003 
 tons, built at South Boston, and costing $314,352.94. 
 
 The City of Panama, a freight and passenger screw-steamer of 1,490 
 tons, built by John Roach at his yards, and costing $332,429.05. 
 
 LINES AND LENGTH OP TRirS. 
 
 These vessels run on four lines: first, between New York and Aspin- 
 wall ; second, between Panama and various Central American ports ; 
 third, between Panama and various Mexican ports ; fourth, between 
 Panama and San Francisco; and, fifth, between San Francisco and 
 Yokahama and Hong-Koog. , 
 
 The trip between New York and Aspiuwall occupies on an average 
 eight days, and there is communication between those ports, by steamers 
 of this company, three times per month. 
 
 The length off the trip from Panama to the Central American ports
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 185 
 
 depends largely upon the season of the year and the amount of freight 
 carried, but averages ten days ; and a vessel starts from Panama, on 
 her round trip, on an average of three times a month. 
 
 The length of the trip between Panama and the Mexican ports is also 
 dependent upon the amount of freight to be had, but averages eighteen 
 days ; and a vessel starts from Panama, on the round trip, on an aver- 
 age of once a month. 
 
 The trip from Panama to San Francisco ordinarily occupies about 
 twenty days, and there is a vessel each way three times a month. 
 
 The vessels of this company cross the Pacific from San Francisco to 
 Yokohama and Hong-Kong every twenty days, and the time occupied 
 by them in so doing averages from twenty -five to twenty-eight or twenty- 
 nine days. 
 
 PORTS AT WHICH VESSELS TOUCH. 
 
 The following are the i)orts at which the vessels of this company call : 
 
 ipinwall, United States of Colombia. San Bias, Mexico. 
 
 Aspinwall, United States of Colombia 
 
 Panama, United States of Colombia. 
 
 Punta Arenas, Costa Rica. 
 
 La Libertad, Salvador. 
 
 Acajutia, Salvador. 
 
 San Jose de Guatemala, Guatemala. 
 
 Cbamperico, Guatemala. 
 
 Acapulco, Mexico. 
 
 Mauzanillo, Mexico. 
 
 San Bias, Mexico. 
 Mazatlan, Mexico. 
 San Juan, Nicaragua. 
 Corinto, Nicaragua. 
 Amapala, Honduras. 
 La Union, Salvador. 
 Yokohama, Japan. 
 Hong-Kong, China. 
 San Francisco, California. 
 
 COMPETITION. 
 
 In carrying on this business the company, as in the case of most car- 
 riers, has met competition from various sources, from time to time. In 
 every port of call, the vessels of this company meet a competition aris- 
 ing from sailing vessels, the amount of such competition being depend- 
 ent upon the activity of freight rates for such, vessels. Of late there 
 has also arisen a competition from the class of steam-vessels known as 
 " tramps," which turn up at all points, and at times are active bidders, 
 at extremely low rates, for freight of every kind and nature. In addi- 
 tion to the^se competitors, this company meets, at Aspiuwall, the ves- 
 sels of the Atlas Steam-ship Company, running between this port and 
 the Central and South American States, and those of the West India 
 and Pacific Steam-ship Company and the Harrison Line, running be- 
 tween New Orleans and the ports of the Central American and South 
 American States. In addition to these, there are also various lines of 
 steamers running to Euroi^ean pofts from Aspiuwall, which, although 
 not in direct competition for freight seeking this port, are always de- 
 sirous of obtaining through freights from China or California, by way 
 of the Isthmus.
 
 186 TRADE A"ND TRANSPORTATION BETWEEN 
 
 Ou the western coast of Central America and Mexico this company 
 meets the steamers of English, Mexican, German, and Hawaiian lines, 
 notably those of the Kosmos and Kirsten lines. At San Francisco this 
 company meets active competition from the steamers of the Occidental 
 and Oriental Steam-ship Company, ships chartered by the overland 
 railroad companies, viz: The Central Pacific and Southern Pacific 
 Kailroads ; also from the sailing vessels chartered by the Northern 
 Pacific Railroad, and the ships chartered by the Canadian Pacific 
 Eailway. 
 
 GROWTH OF BUSINESS WITH CENTRAL AND SOUTH AMERICA. 
 
 As intimated above, there has been a large increase in the charac- 
 ter and volume of the business of this company, particularly that car- 
 ried on with the Central and South American States. This increase 
 has been brought about by the growth of mercantile intercourse with 
 these countries, and also by the development of the foreign states them- 
 selves. 
 
 MANUFACTURES OF THE UNITED STATES IN DEMAND. 
 
 The cargoes carried by the steamers sailing outward from ports of 
 the United States are as varied in their character as the manufacturing 
 industries of the States themselves. There is at the present time, we 
 should infer from the nature of our cargoes, an active demand in the 
 South American, Central American, and Mexican States, for all sorts 
 of American manufactures, including cotton goods, woolen goods? 
 machinery" of all descriptions, canned goods, etc. It is, however, the 
 amount of machinery exported by our line which calls for attention. 
 This class of goods includes not only mining and milling machinery, 
 but agricultural implements of every kind and nature, gathered from 
 the manufactories of the East and West. For your information on this 
 subject, we inclose, as requested, a copy of our manifests, one each 
 from the port of San Francisco and the port of New York. 
 
 • MAIL SUBSIDIES. 
 
 It has always been the contention of this company, and it desires to 
 be clearly understood upon this subject, that any compensation made 
 to it for carrying the mails should be on as fair and reasonable a basis 
 as that made to vessels engaged in the coastwise trade, and also to the 
 various railroads employed in the United States mail service. The 
 company has never called for any specific method of determining the 
 rate of such compensation. All it desires is that any rate established 
 as a basis for compensation to other carriers doing mail service shall 
 be extended to this company for a like service; that- is, that an equal 
 service shall receive an equal compensation. Due regard should also
 
 THE QNITED STATES AND LATIN AMERICA. 187 
 
 be had to the fact that the vessels of this comiiany arc competing at 
 various ports with steamers of foreign countries which arc heavily sub- 
 sidized. 
 
 Ed. Lauteebach. 
 
 Note. — The Pacific Mail Steam-sliip Company receives subsidies from tbo several 
 Ceutral American Republics as follows: 
 
 Mexico $30,000 
 
 Gnateraala 24,000 
 
 Salvador 24,000 
 
 Nicaragua „ <>, 000 
 
 Honduras : 5, 000 
 
 Costa Rica 12,000
 
 188 TRADE AND TRANSPORTATION BETWEEN 
 
 XVI. 
 
 THE WARD LINE OF STEAMERS. 
 
 113 Wall Street, New York, 
 
 September 4, 1889. 
 Dear Sir : In reply to your inquiry regarding our line of steamers, 
 we beg to submit the following statement : 
 
 ORGANIZATION AND FLEET. 
 
 The Ward Line, though properly established under its present stand- 
 ard in 1877, had been in existence, iu a more or less irregular way, for 
 several years previous. 
 
 In 1877 the present line was started with two steamers, to which ad- 
 ditions have been made periodically until 1888. 
 
 In 188 L the business was incorporated under the laws ot the State o 
 New York, under the title of the New York and Cuba Mail Steam-ship 
 Company, and this company in 1888 bought out the Alexandre Line, 
 taking iiossession of two steamers, so that at present it owns the follow- 
 ing fleet : 
 
 Niagara tous, gross.. 2, '2(55 
 
 Saratoga do 2, 426 
 
 Santiago ; do 2, 359 
 
 Cieufnegos do 2, 302 
 
 City of Washington do 2, 035 
 
 City of Alexandria do 2,480 
 
 All of which are first-class iron steamers, built by John Koach, at 
 Chester, Pa. 
 
 AMERICAN POLICY OP THE OWNERS. 
 
 From the very first it has been the desire of the owners to keep a 
 strictly American line, and this record has never been broken, notwith- 
 standing the constant opposition — so considered — received from our 
 own Government. 
 
 It had been the intention of its owners to encircle the entire island of 
 Cuba and other West India islands with lines of purely American ships, 
 built in the United States and manned by American citizens, and from 
 1877 to 1882 this policy was carried out, and would have been continued
 
 THE UNITED STATES AND LATIN AMERICA. 180 
 
 had not a sudden stop been put to it by the action of Congress and by 
 special legislation by heads of Government departments, which kept 
 the owners of this line in constant fear of direct legislation against 
 American ships, so that during a period of from six to seven years they 
 simply floated on, waiting to see what would be the result of the mar- 
 velous bills, which from time to time were introduced into Congress, 
 and how long the antedeluviau laws, made for a time when there were 
 no steamers nor vessels much larger than the ordinary fishing smack 
 of the present age, were to be made to apply to the large ships now de- 
 manded by our general commerce. 
 
 GOVERNMENTAL OBSTACLES TO BUSINESS. 
 
 When the late Democratic administration went into power bills were 
 already pending in Congress to admit foreign-built ships under the 
 American flag, ships that, being built at considerable less expense, and 
 by their very construction could be used in the same trade at very much 
 smaller cost; and there were statutes under which Government oflicers 
 were constantly harassing American steamers, carrying out, not the 
 spirit, but the technicality of the law. There was a poor, very poor, 
 compensation for the transportation of the mails, and there existed 
 numerous taxes and fees which, taken all together, really seemed as if 
 our Government was intent upon wiping out entirely f^om the ocean 
 the very little that was left of the American merchant marine. No 
 sooner had President Cleveland organized his Cabinet than a system of 
 antagonism was established, under which all American shipowners 
 bowed down and resigned to lose all that they had invested, and allow 
 our British cousins to take possession of the oceans and the commerce 
 of the world. 
 
 It was at this time that all the American steam-ship owners called in a 
 body upon Postmaster-General Vilas, presented their grievances, and 
 asked that the $400,000 that had just been appropriated by Congress 
 for the transportation of foreign mails be divided among them in pro 
 rata proportion to the number of miles traveled by each line, which sum, 
 small as it was, was, if not greater, yet morally much better than the 
 paltry amount that had just been settled upon for sea conveyance of 
 mails. The history of this controversy is well known to every Congress- 
 man and oflQcer of the Government. We will simply state that the 
 Postmaster-General rejected the commands of Congress and refused to 
 pay that sum to the steam ship lines, and that upon their refusing to con- 
 vey the mails unless they were reasonably i)aid, he inaugurated a system 
 of most disgraceful mail routes, awarded the United States mails to any 
 and every foreign vessel that he could obtain, and finally helped to the 
 establishment of the overland route to Havana, now known as the Plant 
 system, which naturally came into open competition with the Ward 
 Line. 
 
 Notwithstanding the repeated complaints of the northern merchants
 
 190 TRADE AND TRANSPORTATION BETWEEN 
 
 he persistently refused to permit the steamers to take regular mails, 
 and that — it is so reported in Cuba — through bis recommendation the re- 
 ceivers of letters privately carried by the steamers were heavily taxed 
 there, until it became almost impossible to communicate with Cuba by 
 the steamers. (See copy of letter written to Mr. Wanamaker upon the 
 advent of the present administration.) Again, during all that i)eriod 
 of what certainly looked like open hostility, we were compelled to call 
 upon the State Department for adjustment and legislation regarding 
 numerous outrages, which from time to time were being committed by 
 Spanish authorities in direct violatiftn of commercial treaties, and Mr. 
 Bayard seemed to carry out the same warlike ideas of the Postmaster- 
 General, taking no notice of our just claims and not even replying to 
 numerous letters written to him. 
 
 PRESENT CONDITIONS MORE SATISFACTORY. 
 
 With these remarks, we think that it will be admitted that we have 
 reason to state that we considered the United States Government to be 
 acting under direct opposition to the American steamers. We will now 
 proceed with our general information, only calling your attention to the 
 fact that since the change of administration, with only the encouraging 
 words of the President and the better disposition of the Cabinet, Con- 
 gress, and the people at large towards the re-establishment of the 
 American flag on the high seas, the American lines, and particularly 
 the Ward Line, have already moved to increase their fleet and their busi- 
 ness, the latter now having under construction three steel steamers of 
 the most modern type, and larger than any of the fleet already named. 
 
 EXTENSION OF THE LINE. 
 
 In 1877, when the line was started, the two steamers ran only be- 
 tween New York and Havana; afterward the line was extended to San- 
 tiago de Cuba and Cienfuegos, then to l!fassnu in the Bahamas, and to 
 these other ports were gradually added, so that at i)resent the Ward 
 Line may be found at Havana, Matanzas, Cardenas, Sagua, Santiago 
 de Cuba, and Cienfuegos, in Cuba ; Nassau, in the Bahamas ; Progreso, 
 Campeche, Frontera, Tampico, Tuxpam and Vera Cruz, in Mexico. 
 
 All these places are strictly producing (countries and not manufact- 
 urers. That is, in Cuba, sugar, tobacco, fruit, and woods are produced ; 
 in Nassau, fruit and sponge; in Mexico, hemp, coflee, tobacco, and 
 woods ; and all these countries are large consumers of manufactured 
 goods, from the world over. 
 
 COMPOSITION OF CARGOES. 
 
 The question lias been asked, ''What do our steamers carry out!" and 
 the answer is " every imaginable thing ;" the wheat, corn and other grain 
 ^rown in the far West ; the flour milled principally on the Missouri and
 
 THE UNITED STATES AND LATIN AMERICA. 191 
 
 Mississippi Rivers; the lard, bacon, ham, beef, and butter from Ohio; 
 the manufactured agricultural implements, glass, earthen andiron ware 
 from Pennsylvania, and the innumerable articles of every description 
 produced or made all round us; machinery taking quite a i)romiuent 
 part in a ship's cargo. With every article, our shippers, manufacturers, 
 and producers are in direct competition with Europe, from where 
 numerous lines have been started to those very ports, under large sub- 
 sidies paid them by their respective Governments, thus enabling them 
 to carry at a cheaper rate of freight. Take, for instance, Spain, a manu- 
 facturing country as well as a producer of almost every article shipped 
 from here. In the one item of flour the competition is tremendous, and 
 necessarily so, owing to its very good quality, and which we are told is 
 only equaled here at St. Louis, Mo., from where shiiiments are being 
 made via rail to New York and to Kew Orleans. 
 
 COMPETITION OF FOREIGN SUBSIDIZED LINES. 
 
 The point has often been raised, in opposing any Government aid to 
 steam-ship lines, that the country at large was not benefited, but only 
 the port of New York. Is it not as much to the interest of the west- 
 ern miller on the Missouri and other western sections to secure these 
 markets for their flour, and to the western farmers to find and secure 
 the same for their grain, and to the Ohio pork packer to add and hold 
 onto a new consumer for his lard, his butter, and his meats,, and to every 
 manufacturer all over the country to find increasing demand for his 
 products? It can not but be conceded that unless American lines are 
 placed on some equality with foreigners, and particularly those coming 
 directly to the West India ports, American lines can not increase and 
 open new routes — indeed, can not live — and, if they can not live, the 
 commerce of this section must decline and gradually drift over to 
 England, Germany, France, and Spain. 
 
 Take the Cuba and Mexican trade, to which the Ward Line caters, 
 and examine the great advantages that a foreign line, heavily subsidized, 
 has. The Spanish Government pays this line $2,036 per mile, and the 
 Mexican Government $o,006 per trip between Vera Cruz and New 
 York, via Havana, Cuba. 
 
 The distance from Havana to New York is 1,240 miles. 
 
 Round voyage, 2,480 miles, at $2.036 $5,049.28 
 
 Proportion of Mexican subsidy 3,018. 00 
 
 Total 8,067.28 
 
 THE SPANISH SUBSIDY. 
 
 By their contracts the Spanish line has to make, and does make, 
 three such round trips per mouth, so that for the thirty-six trips made 
 in a year that company receives $290,422.08, without carrying anything 
 but the mails. Two steamers of a second grade perform the service,
 
 192 TKADE AND TKANSPORTATION BETWEEN 
 
 and f^iving them tlie very liberal valuation of a half million dollars, 
 they have a net and clear iirofit of 58 per cent, without doing a stroke 
 of work in the carrying of freight or passengers. Very true, there is a 
 condition in the Spanish contract which binds the steam-ship company 
 to use the excess of earnings allowed by the Government in the exten- 
 sion of lines; but before this can be demanded the following percent- 
 ages are allowed the company, which, as we will explain presently, can 
 be made as elastic as the company may wish : 
 
 (1) Deduct all running expenses of ships. 
 
 (2) A corresponding proportion for extension of routes and managing 
 the business. 
 
 (3) Six i)er cent, of the value of each ship for insurance. 
 
 (4) Five per cent, ou the value and 20 per cent, on its fixtures for de- 
 terioration. 
 
 (5) Five per cent, from the inventory of the ship. 
 (G) Five per cent, for a reserve fund. 
 
 (7) Expenses for board of crew, for coal, repairing machinery, etc. 
 
 Here we have 21 per cent, fixed and contingent percentage, which can 
 easily be made enough to cover entirely any excess, as, for instance, 
 " all running expenses, keeping up machinery," etc., and then no 
 figuring ife to be done until after the expiration of five years, or after 
 the subsidy has reached the enormous amount of 81,452,110. Add to 
 this that the Si)anivSh Government agrees to give the company any and 
 all the privileges that the Government may see fit to grant and will not 
 be subjected to any special tax. 
 
 WHAT THE UNITED STATES PAYS. 
 
 Compare this with the amount received from the United States by 
 the Ward Line, viz, the sea postage, and that is all. During the quar- 
 ter ending June 30, 1.S89, the Post-Oflice Department has paid the Ward 
 Line the sum of $334.80 for the service performed between New York 
 and alltlie ports before mentioned (see Post-Office letter*), which amount, 
 allowing that it will be the same during the entire year, gives $1,330.20, 
 against $290,422 received by the Spanish Line. On the top of this we 
 must not forget that the United States accords to the Spanish Line the 
 same rights and conditions that are in force for American ships, whereas 
 in Spanish domain every advantage is given to the one, and every pos- 
 sible obstacle placed before the other. Does it not appear .as if by such 
 proceeding that the United States was aiding a competing foreign lino by 
 tolerating such action against our ships ? So much for the Spanish Line. 
 
 The Compagnie G6nerale Transatlantique, heavily subsidized by the 
 French Government, and a lately established German line, well paid 
 by the German Emi)ire, are running regularly to Cuba and to Mexico, 
 carrying there just the very goods that our manufacturers and producers 
 
 * See Chapter III, Part II.
 
 THE UNITED STATES AND LATIN AMERICA. 193 
 
 are trying to compete with, constantly making new markets and new 
 consumers for them, and England runs, in her usual fashion, number- 
 less tramps, which, if not subsidized out and out, perhaps receive equal 
 benefits, because they run them under the Spanish flag. 
 
 RESULT OF THE COMPETITION. 
 
 Let us now see the result of this competition. In 1883, when the Cuba 
 trade from the United States was supplied almost entirely by American 
 lines, a tierce of lard weighing a quarter of a ton was taken to Havana 
 for $1.25; or, say, $5 a ton. It cost for handling in and out of the ship 15 
 cents per tierce, and a tax was paid to the fTOvernment of Spain of 62^ 
 cents per ton, so that it netted the steamship $3.78 per ton to pay the 
 running expenses of the ship and leave a fair profit to the owner tliereof. 
 
 With the subsidized competition of the Si)anish lines, and the French, 
 English, and Germans, the same article has been put down to 40 cents 
 per tierce, or $1.C0 per ton, which, less cost of handling, leaves $1 per 
 ton. What we say of lard holds good for flour, for grain, for meats, for 
 manufactured goods, and even for passengers ; and who receives this 
 benefit *? Could it be proved that the result of this great reduction went 
 into the pockets of our people, or even into the pockets of the Cuban 
 consumer, we might consider one as profitable and the other as charit- 
 able ; but neither is the case. Goods are no longer sent to those coun- 
 tries on consignment, thus permitting the consignee to sell at a fair 
 profit over cost. The system of trade has changed completely within 
 the last ten years, and goods are now shipped on clean orders from 
 dealers who sell to the consumer, and to-day the general price of for- 
 eign goods in Cuba, allowing for differences of exchange, custom-house 
 duties and other Government fees, is about the same as it was ten years 
 ago ; so that the difference in the freight simply goes into the pockets of 
 the Spanish dealers. 
 
 THE PASSENGER TRAVEL. 
 
 The same state of affairs rules with regard to passengers. The Ward 
 Line, in building their ships, devoted considerable money in elaborate 
 cabins, fitted with every modern improvement and luxury, and, until 
 1885, received $60 for a first class passage to Havana. Travel between 
 the United States and Cuba is of a limited character, and yet the ex- 
 pense of fittings and fixtures and maintenance of a first-class service is 
 nearly as much as on the transatlantic ships carrying passengers by 
 hundreds, for which reason the rate to Cuba must be correspondingly 
 high. In 1885 it was fixed at $50, which is the rate now supposed to 
 be in force. With the advent of a line which comes here with a secured 
 profit of over $8,000 per trip, however, the rate has been marked down, 
 and it is not uncommon to have passages sold at $35 to Havana, the 
 same subsidized competition having reduced the rates between Mexico, 
 Vera Cruz, and New York to an average of $G0, against $85 ruling in 
 1885. 
 
 S. Ex. 54 — ^13
 
 194 TRADE AND TRANSPORTATION BETWEEN 
 
 The anuual travel to Havana, up to 1885, averaged about 3,000 each 
 way. The subsidized route inaugurated by Postmaster Vihis took, prob- 
 ably, one-third from the steamship lines, and the remaining two- thirds 
 are now divided between a foreign line that has no price, because, being 
 heavily paid in advance, it naturally takes the passenger at the i)as8eu- 
 ger's price, throwing in free wines during the trip. 
 
 The American Ward Line is running handicapped, and yet giving 
 honest returns for the reduced prices obtained. The bulk of travel is 
 composed of Spanish peoi)le. The few Americans who go to Cuba are 
 patriotic enough to stand by the American flag, but the Spanish ele- 
 ment is bound to favor the cheapest route every time. 
 
 MAILS CARRIED AT A LOSS. 
 
 The question is asked, What is the difference between the amount 
 paid by the United States under the jjresent system and what was paid 
 before the Postal Union took effect? We can not determine this, because 
 at that time we only ran to Havana, and now we take mails i'oT many 
 other places; but we are under the impression that we get now, for all 
 ports, not more, and perhaps less, than we did before that law went 
 into effect. Under the present law the United States Government 
 treats mails like any ordinary merchandise, and the argument was 
 brought out plainly during the controversy with Mr. Vilas, when he 
 claimed that he could see no reason why we would take merchandise at 
 $4 or $5 per ton, and did not want to carry mails on the same basis. 
 Perhaps that idea might be remunerative to Liverpool lines, which carry 
 an enormous quantity of mail matter, but to the Ward Line the result is 
 palpable, the mail being comparatively small, particularly with the rail- 
 roads running as they now do into the very heart of Mexico. 
 
 The accompanying letter to our present Postmaster-General shows 
 the advantage of the mails being carried by the steamers. The ad- 
 vantages that the New York merchant shipper or middleman receives 
 by it are identical with those of the manufacturer or j)roducer. 
 
 THE COST OF HANDLING MAILS. 
 
 We have stated that for a quarter of a year the compensation for 
 the conveyance of mails to all the ports mentioned was $334. In three 
 months we have 28 departures and 28 arrivals, and we are compelled 
 to sustain horse, wagon, and man, at a heavy expense, to take and 
 to bring the mails for every movement, and during the three months of 
 summer, quarantine time, we are compelled to bring mails from Sandy 
 Hook by special boat at a cost of $80 per week. Now, four quarters 
 at a like rate would bring us $1,336, and the cost of a year's handling, 
 as explained, is $1,490. This, too, without taking into consideration 
 the amount of money we have to pay for every ship inward and out- 
 ward for Government fees in various ways, such as pilotage (compul- 
 sory), custom-house entrance aud clearance lees, tax on passengers,
 
 THE UNITED STATES AND LAl'IN AMERICA. 195 
 
 port warden, tomiajfe tax of 15 cents per ton, which on cacli s'lip 
 ainoiiuts to about $4,000 per year. 
 
 We do not know wliat compensation is allowed to the Plant steam- 
 ers under (Joverniiient contract to carry the Havana mails, but we are 
 told that through the combination with the railroad companies the 
 division gives them for a run of twenty-four hours about $58,339 per 
 year. 
 
 The Ward Line is under a contract with the Bahama government for 
 the transportation of mails, making seventeen trips between New York 
 and Nassau, for which the British Government pays the sura of £3,700 
 l)er year. 
 
 SUBSIDIES ADVOCATED. 
 
 A subsidy policy may be objected to, and our free-trade friends un- 
 doubtedly i)reseut strong arguments against it, but let us not forget 
 this fact: For ten years the great question of how to restore the 
 American rtag on the high seas, how to increase our commerce, and how 
 to bring in the South American coutitries has been discussed, and dur- 
 ing these ten years the free-trade side of the house has had its way, all 
 the while trying to make us believe that under their system all these 
 blessings would come ; but, after ten years, where do we stand ? Lower 
 than ever, and sinking lower and lower every day. 
 
 Give the other side a chance ; encourage our shipping interests, and 
 we will present to the people of the United States American ships equal 
 to the best or better, running to every important i)ort in the West 
 IndieSj'and to our South American " extension," and you will see thou- 
 sands of traders from those now unknown regions coming over here to 
 tind the goods they want, better made, more easily to be had, and just 
 as cheap as they can be bought in the old country. Give Americans a 
 chance, and let the foreign nations understand clearly' that if they do 
 not accord the American flag the same privileges that we Americans 
 give to their flag in our ports, these rights must cease. Now, how to 
 encourage all this, and how to materialize it ? 
 
 In our opinion the bounty bill, now before Congress, is the best meas- 
 ure. If passed there is no doubt in our minds that in two or three 
 years the country will have first class lines of American ships running 
 in every direction, and the trade now virtually in the hands of our 
 neighbors across the water will find its way to this side. 
 Eespectfully yours, 
 
 James E. Ward & Co. 
 
 Exhibit A. 
 
 Correspondence with the Postmaster- General. 
 
 April 16, 1889. 
 Sir: Referring to the conversation that our Mr. Hughes had with your good self a 
 few days ago regarding the West India mail service, we now beg to submit for your 
 cousideration a few remarks showing the workings of the present system, and reasons
 
 106 TRADE AND TRANSPORTATION BETWEEN 
 
 why the regular steamers plying between this port and the Island of Cuba should be 
 employed by the Goveiunieut for the couveyance of mails, with a fair compensation 
 for the same. We also hand you the itiuerarj' of onr line up to the end of May next, 
 it being the inteutiou of our company to continue in like order for the present. 
 
 Trusting that the matter will meet with your approval and favorable decision, we 
 are, dear sir, very truly yours, 
 
 James E. Ward & Co. 
 Hon. JouN Wanamaker, 
 
 Postmaster-General, Washington, D. C. 
 
 ARGUMENT. 
 
 (1) The regular mail route, via Tampa, advertised to be a daily one between New 
 York and Havana, has never performed more than three times per week, often only 
 once per week, and for over a year has been only twice per week, as may be readily 
 understood by examining the Plant Line schedule of steamers which sail from Tampa, 
 Fla., on Mondays and Thursdays only, the mails intended for these sailings leaving 
 New York on Tuesdays and Saturdays at 9 p. m., and should arrive at Havana on 
 Wednesday and Saturdays in the morning. 
 
 For return of mails the steamers of the Plant Line leave Havana twice per week, 
 on Wednesdays and Saturdays, reaching New York on Sundays and Wednesdays. 
 
 (2) The Ward Line steamers leave New York on Wednesdays and Saturdays, and , 
 can deliver the mails on Mondays and Thursdays, the latter often on Wednesdays in 
 the afternoon, and for return they leave Havana on Thursdays and Saturdays, reach- 
 ing New York on Mondays and Wednesdays. 
 
 (3) It must be assumed that the bulk of mail is a business one, much of it referring 
 to merchandise shipped by the steamers that sail from New York, as already explained ; 
 say, papers and shipping docum nts necessary to make entries at the Cuban custom- 
 house, and the failure to produce which in twenty-four hours after arrival of the 
 vessel is punishable by the customs regulations by tine impose<l upon the consignee, 
 and causing delays in the discharge of cargo and annoying detentions in the move- 
 ments of the ships which have to go to other ports in Cuba and to various Mexican 
 ports. 
 
 If the ship carried these mails shipping documents would be in the hands of con- 
 signees invariably at the same time that the goods reach Havana, and all fines, 
 delays, and detentions would be at once avoided. 
 
 (4) Saturday mail. — If a train to Tampa fails to make all connections promptly, the 
 Plant steamer leaves without the mails, which have to wait at Tampa until the next 
 sailing, three days later, reaching Havana on Saturday in place of Wednesday, while 
 the steamer leaving New York the same day is at Havana on Wednesday afternoon. 
 
 Tuesday mail. — As the steamers leave New York on Wednesday, said Tuesday mail 
 call have no reference, or, at all events, but little, to the cargo then being made up 
 in New York for the steamer which leaves the following day, and the mails referring 
 to such cargo, invoices, and other valuable information are consequently held until 
 Saturday, reaching Havana on Wednesday, against the arrival of the steamer early 
 on Monday, and the only salvation against tines has b(MMi and is the sending by New 
 York shippers of a large bulk of mail matter by the steamers which take it at great 
 inconvenience and expense without remuneration whatever, and simply to help the 
 New York Cuban trade. 
 
 (5) Up-mails. — The Florida route mail leaves Havana on Wednesday, closing at 
 Havana post-ofiQce at 11 a. m,, and therefore can have no reference to the cargo then 
 being prepared for the regular steamer, which sails on Thursday evening. Said 
 Wednesday mail reaches New York on Sunday, and is practically in the hands of 
 merchants on Monday morning. The steamer that sails Thursday at 6 i). m. arrives 
 at New York on Monday morning, so that the mails by the steamer, 29 hours ^ater 
 from Havana, are delivered in New York at the same timOi
 
 UtE UNITED STATES AND LATIN AMERICA. 197 
 
 The next mail leaves Havana on Saturday, reaching New York for delivery on 
 Wednesday morning at the same time that the steamer that leaves Havana Satur- 
 day at 6 p. m. 
 
 There is, therefore, nothing gained actually by the up-mail system, via Tampa, 
 and the Havana postmaster, knowing this, makes a mail for each steamer and sends 
 it direct to New York. 
 
 (fi) These steamers have been running a number of years with the greatest regu- 
 larity, and at all seasons of the year perfortn their voyages generally on time, while 
 the Tampa steamers have been withdrawn during the summer months, reducing the 
 communication to one per week, and, as was the case last year, the moment that the 
 health authorities of Florida apprehend any danger of yellow fever the railroad con- 
 nections are broken, and the mails are from five to ten days in transit. 
 
 The steamers arriving in New York during the summer deliver their mails always 
 on time, even if the ships are quarantined. 
 
 (7) Merchants here and vicinity, in their anxiety to avoid fines in Cuba for the non- 
 arrival of their shipping documents, have been in the habit of sending such special 
 mail by the steamers, which was delivered at Havana by messengers, at considerable 
 expense, until the Havana post-office, acting under advice of the United States postal 
 authorities, demanded the delivery at the post-office of all such majl, and notwith- 
 standing that they are covered by the proper stamped envelopes, have been demand- 
 ing and collecting triple postage as a fine, a tax which creates great dissatisfaction, 
 and is the cause of constant complaint ; the steam-ship line, though entirely innocent 
 in the matter, coming in for considerable of the blame. 
 
 (8) Compensation. — The rates allowed steamers have never been adequate, and this 
 is particularly noticeable in the West India service, because the expense of carrying 
 and delivering was the same — and we are not sure but what it was greater — as the 
 European mails, being so much larger, naturally i>roduce more in dollars and cents; 
 and, so far as the West India mails were concerned, the Government never made 
 allowance for the expense of the ships which had to send after the mails, carry it, 
 deliver it, and, during four months of the year, pay for steamboats to bring it from 
 quarantine at a heavy expense and always the same, no matter whether there was 
 one or one hundred bags, to say nothing of the responsibility involved. The Post- 
 Office Department is always on the qui vive and holding us responsible for the 
 slightest delay or discrepancy in its delivery. The Government's claim that these 
 American ships were greatly benefited by reason of having mail certificates in West 
 India por^ falls to the ground by simply stating that for a period of four years we 
 have been running without them and have not had the slightest ripple in those for- 
 eign waters. 
 
 June 5, 1889. 
 Dkar Sir : As an illustration 'of the facts pointed out to you in previous corre- 
 spoiidence, regarding the Havana mails via Tampa, we have now to mention what 
 has just occurred. Owing to interruptions along the line of the railroad south, the 
 mails that left Havana Wednesday, May 29, at 1 p. m., did not reach New York 
 until yesterday, Tuesday, June 4, at noon ; whereas our steamer. City of fVash- 
 ington, which left Havana, Thursday, May 30, delivered what mails she brought 
 on Monday, June 3, at .5 p. m. 
 
 Upon orders sent via Tampa depended the freight to be forwarded by our steamer 
 leaving to-morrow, which, in consequence of the delay, is materially reduced, causing 
 us, as carriers, considerable loss, and to the merchants of the Cuba trade much in- 
 convenience, as there wil! be no departure for Santiago de Cuba and Cieufuegos until 
 July 5, after to-naorrow's ship. 
 Respectfully yours, 
 
 James E. Ward «t Co. 
 Hon. John Wanamaker, 
 
 Poatmaater-General, Washington, D, C.
 
 108 TRADE AND TRANSPORTATION BETWEEN 
 
 XVII. 
 
 UNITED STATES AND BRAZIL MAIL STEAM SHIP COMPANY. 
 
 New York City, September 20, 1889. 
 Dear Sir : I think the best mauner to furnish you the desired in- 
 formation asked for by you would be to answer your categories in the 
 rotation statefl in your letter. 
 
 HISTORY OF THE COMPANY FROM ITS ORIGIN. 
 
 To answer this correctly it will be necessary to give briefly a retro- 
 spective r^sum6 of the previous line that was engaged in Brazilian 
 trade and the reason for its withdrawal. 
 
 In 1877 the late Mr. John Roach, with persevering industry, procured 
 a ten-j^ear contract with the Brazilian Government — a monthly mail 
 contract averaging (at the then rate of exchange) about $G,0()0 per 
 voyage— and it was fully expected that the United States Government 
 would supplement fairly the Brazilian Government in mail pay. You 
 will please bear in mind the long steam is through the tropics, where 
 the evaporation is very great, hence the density of the sea- water is very 
 great; this, with the heated water alongside, used for cir(uilating pur- 
 I)0se8, requiring great speed of circulating pump for condensing pur- 
 poses, and, as stated above, the salt-feed renders this service heavy and 
 expensive on engines and boilers. The heavy cost of coal in Brazilian 
 ports, the heavy port charges, and the absence of wharves to lie at, 
 cause all cargoes to be lightered at ship's expense. 
 
 DIFFICULTY OF BUILDING UP A TRADE. 
 
 And where a steam-ship has to inaugurate a new channel of trade 
 and divcnt the same from other routes who are subsidized by their gov- 
 ernments for the very purpose of <liverting to their oicu countries the 
 valuable trade of South America, it requires energy and perseverance 
 and great outlay of time and money to divert from already established 
 routes to one of our own country. It may be asked, why go into trade 
 that does not show an immediate prospect of giving a fair return to the 
 investors'? The answer is that it is only by patient, persevering, Intel-
 
 THE UNITED STATES AND LATIN AMERICA. 199 
 
 ligent (ay, and costly) work tliat you can divert coinmcrce from au 
 already established channel. It takes years to do it. You have to sat- 
 isfy the Brazilian merchant of the sure permanency of your line before 
 he will change his established business relations. 
 
 Now the advantage that is derived from the opening up of a new 
 direct market for our own country and our own citizens is so apparent 
 that no further comment is necessary. Our owu country and our own 
 citizens are immediately benefited. And to silence at once and for- 
 ever the cry that this nation can not compete with cheap labor coun- 
 tries I herewith inclose you as an appendix to this letter certified 
 copies of manifests and the state that originally produced the article. 
 Please bear in mind that these are certified copies, and are matters of 
 public record and verification.* And no merchant — Brazilian, Euro- 
 pean, or American — will purchase from this country if he can get his 
 goods cheaper elsewhere with stated regularity. And the latter is one 
 of the most important factors in this great question. If the line is run 
 regularly, systeniatically, and punctually the consignee docs not require 
 to lay in more than he requires or more than the demands of his mar- 
 ket justifies; he calculates the requirements of his market until the 
 next arrival, knowing that it will be on baud on a specified day ; and 
 just as the requirements justify so the shipments are made. This en- 
 genders the only safe, legitimate, and conservative manner of trading 
 and doing business. It shuts off speculation and cornering, with its 
 attendant results (nearly always sending in a disaster to some one, and 
 breeding an unhealthy feeling in the market), because the actual wants 
 are supplied as required. 
 
 It was a just conclusion and expectation that the late Mr. John Roach 
 arrived at, namely, that where this nation derived so much benefit at 
 once from the establishment of a line to Brazil, and which, as I have 
 imperfectly endeavored to show, could not pay him for some years aft- 
 erwards, and where he was competing against foreign lines who were 
 sufficiently and adequately paid by their Governments at once ; it was 
 a just expectation and conclusion to arrive at, namely, that the United 
 States Government would supplement the Brazilian Government and 
 give adequate compensation for the mail service. 
 
 RETROSPECTIVE R:6sUME OF TRADE. 
 
 It is a matter of history that Congress did not take that view, and in 
 consequence Mr. Roach was obliged to withdraw his ships, and he sold 
 same to the Pacific Mail Steam-ship Company at a loss of C6 per cent. 
 During the time Mr. Roach's line was running the imports increased 
 very rapidly ; directly it was withdrawn as quickly they fell off, and 
 the Brazilian trade became speculative and unhealthy, and it is a mat- 
 ter of record which the mercantile agencies can confirm, that during 
 the interval between the existence of Mr. Koach's line and the perma- 
 
 *Abstracts of these manifeets appear in a preceding chapter
 
 200 TRADE AND TRANSPORTATION BETWEEN 
 
 nent establisliment of the United States and Brazil Mail Steamship 
 Company that there were more failures of mercantile houses doing 
 business with Brazil in this country than at any other period. 
 
 Therefore, a number of prominent citizens and merchants doing busi- 
 ness principally with South America, seeing that attention was again 
 being drawn by Congress to this very important matter, they reasonably 
 inferred that our legislators, the more they investigated, the more they 
 would see the absolute necessity of adopting an intelligent policy (as 
 other nations do) in this respect. Confident in this belief, these patri- 
 otic gentlemen, in the desire to see their own country in the possession 
 of its natural markets, which, from their geographic and climatic con- 
 ditions, want what we produce and manufacture, and from the same 
 causes we want what they produce (and it is needless to say these are 
 the very best conditions under the sun to bring nations together in 
 trade), determined to establish the CTnited States and Brazil Mail Steam- 
 ship Company, as before stated, under the belief that Congress, with its 
 awakened interest would adequately pay for carrying its. own mails 
 (which they are bound to do under the postal convention of Berne), and 
 a patriotic desire to foster trade to our legitimate markets and retain 
 our flag on the ocean. 
 
 Please bear in mind that these American gentlemen have not received 
 one cent from their investment from the date of its charter, April 1882, 
 up to date. And they paid 100 cents on the dollar for every share they 
 own. This comi)any has gone sturdily on, and by persevering, econom- 
 ical, efficient policy suceeded in increasing the value of exports steadily. 
 Does this not show that what is here recited is true, and that these 
 patriotic gentlemen were right in their deductions ? 
 
 FLEET AND VOYAGES. 
 
 You also ask "the number and character of your ships ; their tonnage; 
 where they were constructed ; their freight and passenger capacity ; 
 the ports at which they touch ; and the frequency and length of the 
 voyages." ^ 
 
 This company own three steam ships and two now building, namely. 
 
 Steam-ship Advance, rated A 1, highest class, 2,G0o tons gross, eighty 
 saloon, one hundred steerage passengers. Cargo capacity 2,900 tons 
 weight and measurejnent, and 000 tons coal in bunkers. 
 
 Steam-ship Finance, rated A 1, highest class, 2,G03 tons gross, eighty 
 saloon, one hundred steerage passengers. Cargo capacity 2,900 tons 
 weight and measurement, and 900 tons coal in bunkers. 
 
 Steam ship AUi<tnca, rated A 1, highest class, 2,!>8.") tons gross, one 
 hundred and twenty saloon, one hundi-ed and fifty steerage i)ass<'iiger8. 
 Cargo capacity 3,500 tons weight and measurement, and 1,200 tons 
 coal in bunkers. 
 
 Steam-ship Seguranca (now building), 3,500 tons gross, two hundred
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 201 
 
 saloon, two hundred steerage pasvsengers. Cirgo capacity 4,000 tons 
 weight and measurement, and 1,200 tons coal in bunkers. 
 
 Steam-ship Vigilanca (now building), 3,500 tons gross, two hundred 
 saloon, two hundred steerage passengers. Cargo capacity 4,000 tons 
 weight and measurement, and 1,200 tons coal in bunkers. 
 
 The above steam-ships were built and are building on the Delaware 
 River, by the Delaware River Trou Ship Building and Engine Works, 
 Chester, Pa. 
 
 These steam-ships leave New York at about twenty-ode days' inter- 
 vals, and generally on the third day afterwards leave Newport News, 
 Va., with United States mails and manufacturers' produce from a cen- 
 tral point in this* country, and enable correspondents to take advan- 
 tage of the latest hour for mailing (by fast mail trains to Newport 
 News, Va). 
 
 PORTS VISITED BY THE BRAZIL LINE. 
 
 The following is a tabulated statement of ports of call after leaving 
 Newport News, embraced in the United States and Brazil Mail Steam- 
 ship Company's system, also correspondin g distances from said ports 
 of call from Liverpool ; population of said ports and monthly consump- 
 tion of flour : 
 
 Ports. 
 
 St. Thomas (disf ribntiug i)oint Danish We.st 
 Indies to several adjacent islands) 
 
 Martinique, French VVoat Indies 
 
 Barbadoes (disriibutiiig point for British 
 West Indies mail and lueichaudise) 
 
 Para (7.5 miles up Para River, Brazil branch 
 of Amazon. Distributing point for Ama- 
 zonian Valley and River; extends 3,000 
 miles) 
 
 Maranhara. capital of province ; Brazil a 
 tidal harbor. Distributing point for ad- 
 jacent provinces 
 
 Pernambuco, capital of province ; Brazil a 
 tidal harbor. Distributing point for ad- 
 jacent provinces 
 
 Bahia, capital of province ; Brazil easy of 
 access. Distributing point for adjacent 
 provinces 
 
 Rio De Janeiro, capital of Brazil : Brazil 
 easy of access. Distributes to alt points 
 south 
 
 Santos, Brazil 
 
 Population. 
 
 40, 000 
 32, 000 
 
 180,000 
 
 4f>, 000 
 32, 000 
 130, 000 
 140, 000 
 400, 000 
 
 Distance 
 
 from 
 
 New York. 
 
 1,440 
 1,717 
 
 1,880 
 
 3,022 
 3,397 
 4.177 
 4,563 
 
 5,308 
 5,516 
 
 Distance 
 
 from 
 Liverpool. 
 
 3, 560 
 3,626 
 
 3, 682 
 
 4,062 
 
 4,150 
 
 4,886 
 
 5,200 
 
 5.350 
 5,280 
 
 Barrels of 
 
 flour 
 per month. 
 
 500 
 
 10. 000 
 12, 000 
 40, 000 
 
 Names of ports that immediately connect in distribution and for- 
 warding mail and cargo on through bills of lading with this company's 
 steamers from St. Thomas, Danish West Indies, and Barbadoes, British 
 West Indies, in Caribbean Sea : Antigua, St. Kitts, St. Lucia, Mont 
 Serrat, St. Vincent, Guadeloupe, Dominica, Trinidad, Demerara, Porto 
 Rico, Martinique. 
 
 Names of ports that immediate and close connection is made with in 
 distribution and forwarding mail and cargo on through bills of hiding 
 with this company's steamers from points of call in Brazil: Cear4, Pax-.
 
 202 TRADE AND TRANSPOUTATtON fiHTWEEN 
 
 anagua, Antonia, Santa Catharina, Rio Grande do Sul, Pilotas, Porto 
 Alegre, Brazil, Montevideo (Uruguay), Buenos Ay res, Rosario (Argen- 
 tine Republic). 
 
 VALUE OF THIS LINE TO THE UNITED STATES. 
 
 It may be an interesting, as it is an incontrovertible fact, to mention 
 here that since the establishment of this line the freight on coffee has 
 never gone above 50 cents per bag (of 132 pounds) from Brazil to New 
 York, and the latter only by one ship once. The average freight since 
 the establishment of this line has been 28 cents per bag. Before the 
 establishment of this line $1 per bag was the niaxiuium and GO cents 
 the average freight per bag, the difference in money value to our citi- 
 zens in this item alone amounting to $3,800,000 since the establishment 
 of the United States and Brazil Mail Steam-ship Company. Other 
 items of import and export can be summarized in the same manner in 
 a lesser degree. 
 
 COST OF CONSTRUCTION AND MAINTENANCE OF SHIPS. 
 
 Second query: "What is the cost of constructing and maintaining 
 your ships as compared with European ships of same description?" 
 
 The cost of similar steam-ships built and classed in the same manner 
 with the same accommodations and mechanical appliances for rapid 
 handling of cargo in Great Britain would be 18 per cent, less than in 
 this country. The steam-ships Finance and Advance cost $350,000 each ; 
 the AUianca cost $380,000 ; the new steam-ships Segnranea and Vig- 
 ilanca will cost, as per contract, nearly $450,000 each. 
 
 The cost of maintenance is about 25 per cent, more in favor of Euro- 
 pean steamers generally, ship for ship, in all respects equal in speed, 
 power, passenger accommodation, etc. ; but from the very many me- 
 chanical appliances, also the application of a patented device for cir- 
 culating and generating, also an improved hot blast (.^Iain's system) 
 this company can and does operate its ships on almost equal terms, as 
 regards expense, with foreign ships of the same class and character. 
 Please bear in mind I am jiow quoting in comparison shii)s of the same 
 class as this company owns, not ships of the genus " tram])," that are 
 simply pot-metal boxes afloat. 
 
 FEATURES OF COMPETITION — " TRAMPS " AND SUBSIDIES. 
 
 Third query: " What competition do you meet with, either from New 
 York or Europe, either by " tramps " or by regular lines of American 
 ships?" 
 
 This question is a most prolific one. Besides the great and substan- 
 tial mail pay given by European nations to regular lines, the accursed 
 systems or laws that allow these irresponsible foreign " tramps " to 
 .trade from our own country to other countries other than their own,
 
 THE UNITED STATES AND LATIN AMERICA. 203 
 
 making this country their base of operations and headquarters, and 
 where they are not amenable to our laws as our ships are, is the gross- 
 est injury and injustice that has ever been perpetrated. 
 
 We have as competitors two English and one German (so-called) 
 lines, both "tramps" pure and simple, which unite invariably with 
 their transportation business a commercial one. In nearly every case 
 their ships are old (very old) vessels, and in some instances "off their 
 letters "j in other words, have no class in any classification society. 
 
 HOW TRAMP VESSELS ARE MANAGED. 
 
 These vessels leave their native country where they are amenable to 
 the inspection laws, wherein at stated periods the hull, boilers, and en- 
 gines are inspected, and the necessary repairs required must be made. 
 They come to this country and ply so-called lines, manned by their own 
 countrymen (naturally), who are paid at a much lower rate of wages 
 than is paid American seamen. They generally lay in a very large 
 supply of salted provisions and all they require in this country is small 
 supplies of fresh beef, etc., coal, and a limited amount of stevedore 
 labor. Now, the statement may be made that these seamen whom these 
 foreigners ship would desert in our ports where they can by so doing- 
 get higher wages; to a very limited extent this is true; but they take 
 care, if possible, to ship married men, and with offer of allotment notes, 
 leaving half i)ay to their families, and these seamen must invariably 
 find sureties that they will not desert the ship during the period agreed 
 upon in the ship's articles. You can readily see by this method that 
 they do keep these crews at the low rate of pay. If repairs are re- 
 quired to their machinery, they invariably send for duplicate parts or 
 send the damaged part to their own country for renewal or repairs. 
 
 DANGEROUS CONDITION OF THE TRAMPS. 
 
 These " tramps" run year after year — old vessels subject to no law 
 here by which legal supervision can be exercised. Their boilers may 
 be on the point of explosion, their machinery may be in a dangerous 
 condition, their hulls may be in the last stage of decay, their ships 
 may be undermanned, their boats may not be fit to float when lowered 
 from the davits, yet there is no law in this country to reach these for- 
 eigners as long as they keep away from their own country, and as long 
 as it suits the convenience or cupidity of their owners. It no doubt 
 will surprise you to learn that there is little if any difference made in 
 the rate of premiums on cargo policies charged by our local insurance 
 companies. This is due to the keen competition amongst them. As a 
 natural sequence these ships, to get cargo at all, must take, and do 
 take, a lower rate of freight. I state here as a positive fact that the 
 writer asked the mate of one of these " tramps " " if it was not positively 
 dangerous to go to sea in the steamer he was in," and I further asked
 
 204 TRADE AND TRANSPORTATION BETWEEN 
 
 him " how many men he had in his watch." His reply was "the lookout 
 and the man at the wheel." I asked him then " how do you handle your 
 canvass f The mate replied, " 1 take the man off the lookout, lash the 
 wheel, and take the man from there, and I go also." He further added, 
 " Nothing but dire necessity keeps me at this dog's life." 
 
 Now in a case such as this is, here is this under manned ship going 
 on ahead, no one steering, no one on the lookout, yawing about, abso- 
 lutely dangerous toother craft on the ocean. We have no law to reach 
 these vessels, although their cargoes may be wholly owned by United 
 States citizens and insured in United States insurance companies. 
 Does it not strike you that these "tramps" are absolutely uusea- 
 worthy ? If these ships would only carry passengers, our laws would 
 reach them, and all the requirements of our laws would have to be met 
 fully, but when these crafts do carry passengers, they evade our laws 
 by putting these passengers on their articles in fictitious positions. 
 Being foreigners, this country has no control over their articles ; they 
 are deposited at their consulates, and their consul's certificate to our 
 custom-house is all that is produced. 
 
 MIXING COMMERCIAL BUSINESS INTO TRANSPORTATION. 
 
 To show you another phase of this gross outrage upon our country : 
 We have as competitors in our system and route these so-called lines, 
 who are merchants and exporters dealing in Brazil, etc. These mer- 
 chants and exporters are located in Europe ; their interests lie there, 
 their extended credits are located there. Does it not stand to reason 
 that they will (and they do) discriminate in favor of themselves ? For 
 instance, to secure a constituent from an American house they will 
 carry American produce and manufactures at a lower rate than the fair 
 trader can do ; ostensibly they will quote a freight rate, but they will 
 so wrap up their cost, freight, and charges that it will be difficult to dis- 
 integrate them. Again, where an item of commerce enhances in value, 
 how easy to shut out other dealers and then fill their ship. Now, the 
 writer contends that it is the grossest injustice in any company, steamer, 
 or vessel that advertises for patronage before the public, to discrimi- 
 nate in rates either in their own or any one's else favor. It is supposed 
 by the merchant that he is competing for business; that he is doing so 
 upon equal terms with all. He does not suppose, and ought not to be 
 subjected to the supposition, that where by his energy, skill, fore- 
 thought, and enterprise, he ships and consigns items of commerce, that 
 he is laying bare all he has striven for to his competitor. The owner of 
 these accursed " tramps," knowing the character of the merchant I have 
 described, immediately ships the same article, nominally under another 
 name, and is it not natural that this "tramp" owner should give him- 
 self a lower rate of freight and completely nullify the efforts of the fair 
 trader above described, and send him disgusted oft' the field?
 
 THE UNITED STATE.S AND LATIN AMERICA. 205 
 
 HOW THEY CUT INTO THE TRADE. 
 
 These "tramps" know by the published schedule the sailiugs of this 
 company (the same rules apply to other regular Anierican lines) ; 
 they then advertise to leave a day or so ahead of this company's date, 
 knowing fully they can not possibly sail. Then they wait for the orders 
 the regular American mail steam-ship brings in, postponing their trip 
 for theonly reason they are not fully loaded, and just sail as suits their 
 convenience. These vessels never keep faith with the public unless it 
 suits their convenience and pocket. True, postponements at rare inter- 
 vals are made even by the regular mail steam-ships, but it is for an un- 
 foreseen and unpreventable cause. Now take the case of an exporter 
 in this country who has to deliver a line of goods within a specified 
 time. He ships his goods upon the faith of the " tramp" advertise- 
 ment that shows that ample time is left for his shipment to be deliv- 
 ered. Perhaps the merchant owner of that tramp wants that order, 
 and knows the conditions of delivery in the sale. He can have that 
 order canceled by nondelivery within the limit, and he then steps in. 
 I can multiply case after case to show the harm, unfairness, injustice, 
 and wrong these foreign merchant-owned ships do, not only, to regu- 
 larly-organized American mail steam-ship companies, but to our own 
 merchant citizens. 
 
 INSPECTION OF AMERICAN SHIPS. 
 
 Now let us take the other phase of this question as it affects the regu- 
 lar American mail steam-ship company. 1 want to emphatically state 
 that 1 have no desire to be understood as complaining of our inspection 
 and other laws relating to American steam-ships. They are just and 
 proper, and are a guaranty to the public that these ships are seawor- 
 thy, of the competency of their officers, either on deck or in the engine- 
 room, and that the hulls, boilers, engines, equipments, fire and life- 
 saving apparatus are all in good order as shown by actually made tests 
 and inspection by experts at stated periods. Our captains and officers, 
 whether deck or engineer, have to undergo a rigid examination after 
 producing proofs of their i^revious service and moral character. Boilers 
 are tested by hydrostatic pressure far beyond their allowed steam press- 
 ure. The very fire-hose is subjected to the requisite test, so that when 
 a fire does take place they know the fire-hose can stand the proper 
 pressure for its extinguishment. The life-boats are carefully examined ; 
 every life-preserver (and there must be one for each person the ship is 
 allowed to carry) is severally examined, and if a tie strap is out of 
 place that must be put on. All this is proper, just, and fair. In the 
 intervals of the stated periods of inspection, if the American steam- 
 ships have sustained- damage of any kind, written notice must be sent 
 (under penalty if not sent) detailing said damage, from whatever cause. 
 United States inspectors are sent immediately to the ship, a survey held, 
 and repairs ordered, and this is done under their surveillance quite
 
 206 TRADE AND TRANSPORTATION BETWEEN 
 
 independent of what nuderwriter or ship's surveyor or expert may 
 wish to do. All this is right, proper, and just ; this is ])rotection to the 
 passenger, crew, shipper, underwriters, and the public, and I have yet 
 to hear of any reputable American objecting to these laws. 
 
 CONDITION OF THE COASTWISE TRAFFIC. 
 
 1 have thought it best to make this long primary explanation and ask 
 comparison between governing conditions extant between the Ameri- 
 can mail steamer and the foreign "tramp" as to the ecpialilyof terms 
 upon which they compete. The American mail steamship lias to sufler 
 from the laxity of our laws that permit a state of things to exist that has 
 o[)eratcd and is now operating against our own tax-paying citizens. 
 And (in parentheses) I would like to ask wherein lies the ditference be- 
 tween the fully protected coastwise ship and the American foreign-going 
 ships "? Both are equal under the law. Now the American mail steam- 
 ship company (take this company if you will) makes out a sailing sched- 
 ule six months ahead, giving dates of departures and arrivals at the 
 various ])orts embraced in their system, and, full or not full, the ships 
 sail upon those dates. Faith is kept with the public, and, above all, no 
 discrimination whatever is made, or ever has been made, in rates of 
 freight ; each shipper stands equal, no matter who he is, and can com- 
 pete for business on equal terms with his neighbor. To exemplify this 
 a classified tariff is published and circulated. 
 
 Now suppose (as in a few instances did occur) cargo engagements are 
 made up to a certain point, and it is found by cable <]uotation at this 
 time that the principal article of export has fallen in value ; a reduction 
 in rate must be made to leave a margin to the shipper ; if it is done for 
 this last shipper, then cverv other shipper of the same article is at once 
 notified of the reduction and his previously agreed upon rate reduced 
 equally with the last shipper alluded to and all stand equal. This is 
 our rule and invariable practice. Further, no matter who it is, no one 
 shipper, or any one else, will get the slightest infbrination as to what 
 class of goods or quantity anyone else is shipping; the questioner must 
 get this information from the public documents at the customs after the 
 ship has cleared. Again, this company, and all American steam-ship 
 companies, sell transportation pure and simide, an<l not one of its offi- 
 cers or employes is allowed to trade. It is one of the fundamental rules 
 of this company. Please understand, no nuuit is claimed for this action, 
 it being the only fair and proper manner of honorably conducting this 
 business, but when this action honestly carried out gives these mer- 
 chant foreign-owned "tramps" an opportunity to unfairly compete, I 
 think fair to draw the comparison. 
 
 THE AMOUNT OF COMPETITION FROM TRAMPS. 
 
 To answer your query of the class and character of the competition 
 from tramps, I have tried to answer the part of your query so far »^
 
 THE UNITED STATES AND LATIN AMEiilCA. 207 
 
 New York aiid the United States is concerned, and will endeavor to an- 
 swer balance of qnery in reference to Europe. As you are no doubt 
 fully aware, the Austrian-Hungarian flour enters, or did enter, seri- 
 ously into competition with our j^roducts, and there is no doubt that 
 the quality of that flour approaches, if not in some instances excels, 
 our own flour. (You will please understand that flour must be specially 
 milled for Brazilian markets to overcome the climatic changes in trans- 
 portation and subsequent domicile it is subjected to.) Again, the low 
 price of labor in Austria-Hungary enables the Austrian merchant at 
 Trieste (Adriatic Sea) to bring to tide water his flour more cheaply ; 
 cheaper at one time than we could; but our millers soon by their in- 
 genuity, inventive faculties, and enteri)rise, coupled with our magnifi- 
 cent railway system, enabled our own citizens to whip the Austrian. 
 But right here came in the statesmanship of the European legislators, 
 and they subsidized mail steamers. In other words, they taxed the 
 -whole nation to open and keep open communication with a market they 
 hitherto held. "Why? By so doing the whole nation was benefited. 
 Which, by the way, answers an oft repeated solecism made by a portion 
 of our newspapers in writing of mail pay "taxing the whole nation for 
 the benefit of a few," and right here competition comes in. This mail 
 nay enables European steam-ships to lower their freight, and they do 
 sa lower it to meet American competitors. It is a fact that up to the 
 time this company commenced running that over 50 per cent, of the 
 flour consumed in Brazil was Austrian flour. Now at this date there 
 is only one port (Pernambuco) to which Austrian flour is exported. I 
 make the statement that this company has been the principal means of 
 securing this result to our citizens, and by which nearly the whole 
 Union is more or less benefited 5 but this result has been attained at 
 the expense of the stockholders of this company, who are demanding, 
 and justly, too, that justice be done to our mercantile marine. 
 
 EUROPEAN COMPETITION. 
 
 You ask also as to competition from regular lines of American or foreign 
 ships. As to the American lines, it would be fair, because all the condi- 
 tions would be equal, and it would simply be a question as to which man- 
 aged better and served the public better that would secure payingpat- 
 rouage. We have also European competition derived from merchant 
 " tramp" owners, of the same ships that are comijeting here. Their great 
 object is to flood Brazilian markets with European manufactures. When 
 this company was first inaugurated, a threat was made by their repre- 
 sentatives in a port in Brazil that they would flood that port with their 
 country's manufactures if they did not stop importing from the United 
 States, or by any other ships than theirs. Again, take an instance that 
 occurred here a very short time ago, where a cable order from Europe 
 was sent to load one of their ships with a certain class of large-sized 
 timber. This nearly filled the " tramp," but they advertised the ship
 
 208 TRADE AND rRANSPORTATION BETWEEN 
 
 as being on the berth for freight. They could take but little of any one's 
 else but their own. In point of fact, these ships are run just to suit the 
 individual interests of that particular tirm. And so it is with the others 
 also. Suppose under the faith of that particular advertisement a mer- 
 chant bought a large consignment of goods, relying upon that adver- 
 tisement of sailing, published before her arrival here, and finds that 
 the owners have filled her with their own goods. It requires no exten- 
 sive stretch of imagination to arrive at just such a case. He is placed 
 in a peculiar predicament by this want of faith and unfair dealing on 
 the part of these foreign-owned " tramps." 
 
 THE ENGLISH-BELGIAN LINE. 
 
 There is a line of steamers owned in Liverpool subsidized by the 
 British Government. The same owners place some of their ships under 
 the Belgian flag, which that government also subsidizes for mail serv- 
 ice. These vessels leave Europe with their own manufactures and sail 
 for River Platte principally and certain ports in Brazil. Then they un- 
 load and proceed to the coffee ports and load for ports in the United 
 States. By the receipt of mail pay they are enabled to cut under current 
 rates of freight and do so. This particular company is notorious for its 
 discrimination in rates ; in one instance a 25 per cent, reduction was 
 made lo one coffee firm in this very city. These ships discharge here, 
 then load up for England or Belgium and take cargo for southern ports 
 in Brazil and River Platte via Europe by this triangular route. They 
 thus succeed in doing our mercantile marine great harm. It is a fairly 
 equipped line and carries passengers on some of the ships, consequently 
 must have English Board of Trade certificates. To induce shippers to 
 ship by this roundabout route to River Platte or Brazil, they reduce 
 their rates. 
 
 In concluding my reply to this part of your queries, I do not think 
 I ever regretted more my inability to do full justice to. this most impor- 
 tant subject, and I am afraid that my crude remarks will not have the 
 weight they ought to have, and which this very important subject de- 
 mands. I am fully conversant with the subject and could recite page 
 after page in fortification of the argument assumed in answering your 
 queries. 
 
 EUROPEAN VERSUS AMERICAN GOVERNMENT AID. 
 
 I now pass to the fourth query : "What European steamers visit the 
 same ports and what assistance do such steamers receive from the gov- 
 ernments under whose flags they. sail?" "What compensation have 
 you received annually fi om the United States for the transportation of 
 mails or otherwise during'' the last ten years and under what conditions 
 is it paid ?" The steame. s that visit Brazil are those of the Royal Mail 
 Steam-Packet Ships, sailing every IGth and 30tli of each month from 
 Southampton and calling at Pernambuco, Maceio,Bahia, Rio de Janeiro,
 
 THE UNITED STATES AND LA'ITX AMERICA. 209 
 
 Santos, Brazil; Montevideo, Buenos Ayres; and Eosario, in the Argen- 
 tine Republic. 
 
 The Pacific Steam ITavigation Company's steamers leave Liverpool 
 about the 6th or 7th, 20th or 23d of each month for Bahia, Rio de Ja- 
 neiro, Brazil, and River Platte ports, en route to west coast of South 
 America via Straits of Magellan. Tlie steamers of the Massagerie's Mar- 
 itimes Company (French) leave a French port on the 11th and 25th of 
 each month, calling at Bahia, Rio de Janeiro, and all River Platte ports. 
 In addition to the above, there are Italian, German, and Belgian steam- 
 ships (all subsidized) sailing on different dates in each month, and there 
 is also the Triangular route of steam ships (Lamport and Holt) alluded 
 to in latter portion of answer to third query. This company's legal title 
 is the Liverpool, Brazil, and River Platte Steam Navigation Company, 
 limited. This company (Triangular route) run almost weekly, and have 
 over forty steam-ships, several under the Belgian flag, which are subsi- 
 dized by the English and Belgian Governments as mail ships. There 
 are other English, French, and Italian lines that ply on the same route, 
 but whose sailing schedules or data I have been unable to procure. 
 
 ENGLISH MAIL PACKET SERVICE. 
 
 I am totally unable to give you from official documents the amount 
 paid as mail pay to the Italian, German, and Belgian mail steamers by 
 their respective Governments. But herewith I hand you as an ap- 
 pendix to this query an extract transcript from the " Blue Book," con- 
 taining the " Thirty -fourth Report of the (British) Postmaster- General 
 for 1888," " presented to both houses of Parliament by command of Her 
 Majesty." (Appendix G, pages 28 and 29.) You will there see the actual 
 amounts paid by the British Government for all of what they call their 
 Mail Packet Service. The total amount paid by the British Govern- 
 ment for mail pay on lines in competition with our own is £109,653, 
 equal to $531,817.05. Now please understand that this amount only 
 represents what is paid by one Government (the British), and please 
 further note that the Exhibit B is a copy of a document that was made 
 out by the writer at the request and for H. K. Thurber, esq., the prin- 
 cipal object being to refute by true public documentary evidence an 
 article that appeared in the New York Evening Post, where a statement 
 was made that tliey had received from the British treasury [sic] by 
 letter the statement it had published. Now, the merest tyro is aware 
 that the " treasury" was not the department to apply to for the infor- 
 mation sought, and this part of the article was just as true as the balance 
 of their garbled article. Besides the postal pay included in the Exhibit 
 B, you will find also the payments to certain steam-ships made by the 
 British Admiralty " or a subvention of merchant steamers for state pur- 
 poses" by that body and extracts from the United States superintend- 
 ent of foreign mails (June 30, 1888, page 6) showing the amounts paid 
 foreign steamers for mail pay and also to American steamers. Although 
 S. Ex. 54 14
 
 210 TRADE AND TRANSPORTATION BETWEEN 
 
 tiie whole of tliis exhibit is not in accord with your question, I hantly 
 see how I can dl.siutegrate the same, aud therefore forward it iu its en- 
 tirety for you to deal with as you deem best. 
 
 THE SPANISH SUBSIDIES. 
 
 Finally, to conclude this part of your fourth query, I forward you a 
 little pamphlet marked Exhibit B, entitled " You are interested," issued 
 by Mr. H. K. Thurber, that contains the whole of the mail pay paid by 
 the Spanish Government. This "subsidy" law passed the Spanish 
 Cortes November 1, 1886, and the contract was signed November 18, 
 1886. This law was passed by the Spanish Cortes with. hardly a dis- 
 sentient voice. It allows their Spanish steamships 10 to 18 pesetas per 
 mile (the pesetas being worth 19^ cents), or $1.95 per nautical mile. I 
 ask 3'our attention to the report contained iu the pamphlet and Mr. 
 Thurber's remarks, and please allow me to ask, does it not speak 
 trumpet-tongued ? This matter was kept very quiet in Spain until they 
 ascertained that the then United States Congress would do nothing for 
 the relief of our mercantile marine, especially after a repoi t made by 
 the then chairman of the Committee on Commerce, a gentleman from 
 Arkansas (save the mark), who, from the locality he came from, must 
 have had a very great knowledge of maritime affairs, which I presume 
 was the reason he was selected for that office by Speaker Carlisle. 
 
 COMPENSATION FOR CARRYING UNITED STATES MAILS. 
 
 If you will recollect, the compulsory law compelling United States 
 ships to carry United States mails was repealed, and an act dated 
 March 3, 1885, was passed, authorizing the Postmaster General to call 
 for bids for United States mails, not to exceed 50 cents per nautical 
 mile, making an appropriation of $400,000. Steam-ships were invited 
 to give all the information respecting their routes, etc. All this was 
 done and many interviews held, but previous to this the Postal Depart- 
 ment issued a letter dated March 21, 18S5 (see page 102 of Postmaster- 
 General's Report for 1885). In that letter the Postmaster-General asked 
 for time (a proper request), but if you will follow the letter to the fif- 
 teenth line you will see that it states as follows : " The arrangement 
 contemplated by the act of March will have been completed." Does 
 not that show conclusively that the then Postmaster-General fully in- 
 tended to carry out the laws 1 And I think you will find very few i)ar- 
 allel cases to this, where a merely executive oflicial did (or could) defy 
 the will of Congress, as exemplified in the action of the Postmaster 
 General at that time. 
 
 WHAT THE BRAZIL STEAMERS RECEIVE. 
 
 Upon the arrival, shortly after March 21, of some of the prominent 
 members of Congress of the same party as the administration a decided 
 revulsion of feeling took place in this matter, so far as the Postmaster-
 
 THE UNITED STATES AND LATIN AMERICA. 211 
 
 General was concerned, aiul he certainly displayed great adroitness in 
 slipping out and taking an entirely opposite view, and, to make a long 
 stor^' short, refused to carry out the above law. The time that had been 
 asked for exi)ired June 30; up to that time (June 30) this company, as 
 it had promised, accepted the amount tendered by the Postal Depart- 
 ment under the old law as follows: For voyage of 5,200 miles, calling 
 and delivering mails at seven ports, two voyages of steam-ship ArZi;ance 
 21-22 and 23-24, $273.77 each voyage ; total for Advance, $547.54 ; for 
 steam-ship Finance, voyage 23-24, $273.77; for steam-ship MerrimoG 
 voyage 5-6, $273.78 ; a total payment of $1,095.09, for a total distance 
 of 20,800 nautical miles traveled and delivering United States mails at 
 twenty-eight ports. 1 think this recital carries its own comments, and 
 the unqualified statement is made by the writer that it cost this com- 
 pany just twice as much to handle these mails as we received. Much 
 discussion ensued between all the steam-ship companies and the Post- 
 master General. 
 
 THE CONTROVERSY WITH POSTMASTER-GENERAL VILAS. 
 
 The companies came to a quasi agreement amongst themselves not 
 to carry the mails unless fairly compensated upon a mileage basis. I 
 refer you to the Postmaster-General's report for 1885, wherein you will 
 see that that astute legal gentleman gradually wriggles away from his 
 letter of March 21 and assumes an entirely different attitude. The 
 Postmaster-General also accused the mercantile steam marine of this 
 country of "contumacy" for presuming to do what they pleased with 
 their own private property. On July 27, 1885, we received a tele- 
 graphic dispatch (see page 140, Postmaster-General's report for 1885). 
 Our reply is on page 141, signed by company's agent for us (P. F. Ger- 
 hard & Co.), wherein we state, " Put our steamers on August schedule 
 if you are prepared to pay adequate compensation." The Department 
 did put our steamers on the August and all schedules ever since, and 
 regularly ever since have tendered us the quarterly recognitions giving 
 sea and inland postage, which have been consistently and regularly re- 
 turned as being inadequate for the service rendered. We are perfectly 
 aware that until the law is complied with and competitive bids called 
 ^or by the Postmaster- General in 1885, that this action rendered the 
 law of March 3, 1885, inoperative, and we are perfectly aware that no 
 other resource is left until legislation is had upon this subject that the 
 old law of 1858 must be acted under. But we are also aware of its 
 gross injustice, and reserve our right to claim adequate compensation 
 from Congress for work duly and faithfully performed for the United 
 States. 
 
 HOW MAILS ARE HANDLED. 
 
 Now it would cause the shipper and general public untold inconven- 
 ience if we had refused (the law being Jio longer compulsory) to trans- 
 port United States mails to Windward Islands and Brazil. It was
 
 212 TRADE AND TRANSPORTATION BETWEEN 
 
 because of the sentiment and feeling among our public men and the 
 respectable press of the country, that simple justice would be accorded 
 to us, that we decided to carry the mails. We have hitherto been treated 
 as marine pariahs, without honor or truth, called " subsidy grabbers," 
 etc. This mud slinging has helped in a great measure to deter our citi- 
 zens from investing in the foreign steam marine of our country, which, 
 I am thankful to say, is rai)idly passing away, and the two hundred trades 
 represented in steam-ship building, together with the morale of the mer- 
 cantile marine of our country, have conjointly aroused their energies 
 and have compelled recognition of their just rights. Postmaster-General 
 Vilas termed United States mails " inanimate freight." All cargo is 
 inanimate except live stock, and upon that account we could " put mails 
 in a dark room." As a matter of fact, we have two heavy zinc lined 
 rooms properly filled with ventilators to keep seals from melting, and 
 double locked. On the main deck one room is for the regular mails ; the 
 other, that is made still more secure, for the registered mails. This fact 
 has become known to our bankers, etc., and the carriage of " valuable 
 packages," on which this company formerly derived a revenue, is now 
 done by the Post-OflBce, for which they receive the usual fees, but for 
 which no recognition has ever yet been made.' 
 
 THE PROMISES OF PRESIDENT HARRISON. 
 
 In point of fact, the Government is competing with the tax-paying 
 citizens — asks the latter to do the work by transporting securely their 
 registered mails (for which special receipt is taken) and retains the fees. 
 Please bear in mind that at no time have the registration fees ever been 
 even mentioned in any recognition sent to this company. But allow 
 me to state that the mercantile marine of this country have now the 
 opening of a bright dawn, the first rift in the clouds being seen in the 
 letter of acceptance of the nomination for the high office of President 
 by Benjamin Harrison. There is no equivocation in that letter, no 
 double construction could be put upon its contents. It gave us renewed 
 hope that at last our mercantile marine would receive justice and this 
 native industry would receive its just recognition and that we were 
 equal with our fellow-citizens under the law. All honor to Mr. Harrison 
 that he had the courage of his convictions and the still greater courage 
 to express them in such a conspicuous manner. There was no prevari- 
 cation before a vote was cast for him ; the whole of our country knew 
 his sentiments on this and all other vital questions. What is the con- 
 sequence ? There is not an iron-ship yard to-day that is not full of 
 work and other yards are springing into existence. It will not be long 
 before we are abreast, in cost, with European builders, even if our labor 
 does cost more. 
 
 COMPENSATION THE BRAZIL COMPANY HAS REFUSED. 
 
 Fifth query : " How much greater would your present compensation 
 have been under the old law, before the Postal Union under which for-
 
 THE UNITED STATES AND LATIN AMERICA. 213 
 
 eign postage was fixed at an uniform rate, regardless of the distance a 
 letter is carried ? It is assumed that when the rates of foreign postage 
 were reduced the intention was to benefit the people, not at the ex- 
 pense of the steam-ship companies, but at the expense of the Govern- 
 ment." 
 
 It seems to the writer that your assumption attached to this query is 
 very tersely and concisely answered, and is the gist of your query. 
 But as you put the question, I will endeavor to answer it as best I can. 
 The postage for a letter to Brazil under the old law was 25 cents ; now, 
 under the Berne Postal Convention, it is 5 cents, or in other words a de- 
 crease of 80 per cent. We have been tendered, as detailed above, and 
 refused acceptance, from June 30, 1885, to June 30, 1889, four years, a 
 total sum of $43,117.06. This sum was divided by years as follows : 
 
 First year, from June 30, 1885, to June, 1886, three steam-ships, sixteen 
 voyages, 82,200 miles outward $6, 592. 24 
 
 Second year, Juno 30, 1885, to June 30, 1887, three steam-ships, nine ports 
 of call. (Note. — Ships proceed now to Santos and call at Martinique, 
 distance 89,600 miles outward)- 10,069.08 
 
 Third year, June 30, 1887, to June 30, 1888, sixteen voyages, nine ports of 
 call, 89,600 miles outward 11,733.44 
 
 Fourth year, June 30, 1888, to June 30, 1889, sixteen voyages, nine ports of 
 call, 89,600 miles outward 13,722.90 
 
 Total 43,117.00 
 
 Or, in other words, three steam-ships receive this sum for transport- 
 ing United States mails 352,000 nautical miles (without the loss of a 
 single letter), calling thirty-four times outward (and homeward, too) at 
 ports described above. Without deducting what it costs this company 
 to handle United States mails, the amount is 2| cents per mile, but 
 after deducting that sum the residue does not pay what it has already 
 cost. ' 
 
 AMOUNT THE LINE WOULD HAVE RECEIVED UNDER THE OLD LAW. 
 
 If the law stood the same as before the Berue Postal Convention we 
 would have received $215,586.80, or, per mile, 61^ cents. In other 
 words, for the whole country to enjoy an uniform cheap postage, the 
 steam-ship lines which actually do the work have to bear the brunt of 
 this reduction. By what right does any Government appropriate pri- 
 vate conveyances for public uses without their consent in this arbitrary 
 way, unless in a public emergency ? When I say " without consent" 
 I, of course, mean as to the private individual having not a word to 
 say as to compensation. We make a tariff for freight and passage ; 
 the shii)per and passenger see the same, and, if they wish, pay what is 
 asked. As it is in all businesses, a price is named, and if agreed upon, 
 paid ;' it is a mutual bargain. Of course, to get the lowest price, a call 
 for bids in open market would be requisite. Having heard you speak
 
 214 TRADE AND TRANSPORTATION BETWEEN 
 
 publicly and knowing your sentiments upon these vital questions, it 
 seems superfluous in me to comment further; but I would like to ask, 
 "Is there any parallel of injustice anywhere extant?" 
 
 ADVANTAGES OF COAST AND INLAND STEAMERS. 
 
 Sixth query. " What advantages do steam-ships employed upon coast 
 and inland waters enjoy over you in mail contracts and other respects?" 
 In a speech delivered by you at the Spanish- American Commercial Union 
 Dinner in the Brunswick Hotel in this city on May 1 last, I do not 
 think a better answer (in the writer's judgment) to this question could 
 l»ossibly be given. We have taken the liberty to print this speech, and 
 I have taken also the liberty of putting same in as part of this answer, 
 and mark same as Exhibit C, and can only add to what you have tersely 
 and ably stated — showing such a thorough knowledge of the subject — 
 a few remarks. A contract must be entered into with any steam-ship 
 or other craft engaged in coastal or inland waters. The mails are sent 
 alongside and taken from their vessels at the cost of the Government, 
 in addition to the contract carrying price, unless the vessels lie within 
 a specified number of rods of the post-ofiBce. A foreign-going American 
 steam-ship must send for and deliver all foreign mails at its own cost. 
 For the life of me I never could discover why this is done, and where 
 the difference exists between the coastwise ship and the foreign going 
 ship. They are equally citizens under the law. 
 
 I believe this discrimination was caused by some action of the late 
 Commodore Vanderbilt in a controversy had with the Government jn 
 reference to mails ; and, judging by the traditional history of this mat- 
 ter, it showed a very petty spirit to continue it. This law has been kept 
 on our statute-books, which in its unfair discrimination is a historical 
 disgrace. Punishing " the children for the sins of their fathers unto the 
 third generation." 
 
 COST AND PROFIT OF HANDLING MAILS. 
 
 Seventh query. " What expenses are you subjected to in receiving 
 and delivering the mails; and after deducting this amount from your 
 gross receipts from the Posfc-Office Department, what is your net com- 
 pensation, both annually, per voyage and per mile?" 
 
 This question has been partially answered in reply to query fifth, and 
 under the su[)position that we had accepted the amounts tendered by 
 the Post-Office Department quarterly. 1 can only give you the actual 
 cash outlay that is incurred and paid by this company, taken from the 
 books and vouchers of this comj)any, and herewith show the cost of 
 handling United States mails, and think it better to give you a detailed 
 statement that will show on its face the actual items: 
 
 Newport News, Va. : 
 
 Use of eiigiuc and flat car to trauHfer rnaila from Pier 2 to I $5.00 
 
 Use of tug-boat in winter (5 nio.s. ), $100, or per trip 8.00 
 
 Deteotiou, say 7 Lours on aver age, at $2',iJ>2 per hoar 1G4. G4 
 
 ■ ' $177. 64
 
 THE UI^ITFJ) STATES AND LATIN. AMERICA. 215 
 
 St. Thomas, D. W. I. : 
 
 Boat hire and porterage $12.00 
 
 Barbadoes : 
 
 Boat hire aud porterage 1 6. 00 
 
 Para, Brazil 
 
 Steam-launch R40,000 
 
 Purser and one man in charge of mail 40, 000 
 
 Porterage .'. 30,000 
 
 at 55 110,000 = 60.50 
 Maranhao, Brazil : « 
 
 Landing mails aud porterage 20,000 
 
 Use of tug-boat part of time, average per trip 60, 000 
 
 80, 000 = 44. 00 
 Peruambuco, Brazil : 
 
 Boat hire 32,000 
 
 Porterage, 15,000 
 
 Purser aud one man in charge of mail 30, 000 
 
 77,000 =: 42.35 
 
 Bahia. Brazil : 
 
 Boat hire aud porterage 72,000 = 39.60 
 
 Rio de Janeiro : 
 
 Steam-lauuch, 46,000 
 
 Porterage aud boat hire 115, 460 
 
 161,460 = 88.80 
 Santos, Brazil: 
 
 Steam-lanuch 23,000 
 
 Porterage 37,730 
 
 Boat hire 1 20,000 
 
 80,730 = 44.40 
 New York, U. S. A. : 
 
 Cartage to post-office $2.50 
 
 One man to post-office 3. 50 
 
 Labor landing mails 2.50 
 
 7.00 
 
 Mail room : 
 
 Lined with iron, capable carrying .520 cubic feet, at 35 cents two 
 
 ways 364.00 
 
 Per trip, total «86.29 
 
 Four years, sixty- four ;trips, at $886.29 56, 722. 56 
 
 Amount tendered l)y United States Post-Office Department for four years' 
 transportation of United States mails, ending June 30, 1889, but not 
 accepted - 43, 117. 66 
 
 Balance l 13,604.90 
 
 In other words, we have i)ni(l $56,722.56 to liaudle United States mails, 
 and are offered ^but refused) $43,117.66 for that service. 
 I am ready to make afiHdavit to the truth of this statement. 
 
 BRAZILIAN MAIL CONTRACT. 
 
 Eighth query. " Do you receive compensation for mails carried or a 
 subsidy from any other Governments 1 If so, what amount, under what
 
 216 TRADE ^ AND TRANSPORTATION BETWEEN 
 
 conditions, and what concessions, if any, in respect to harbor dues do 
 you enjoy from foreign Governments?" 
 
 This company have a mail contract with the Brazilian Government 
 for ten years from November, 1887, amounting to $95,000 per annum in 
 United States currency for a monthly service, but we make sixteen 
 voyages under the same conditions, which amounts per voyage to 
 $5,937. 
 
 The only concessions granted are permissions to discharge and load 
 at once, night or day, Sundays, national or provincial holidays, festas, 
 etc. (but for which we have to pay extra compensation to customs oflB- 
 cers), provided the ship arrives before sundown and in time to receive 
 the health officer; if not, she must wait without communication until 
 sunrise next day. We receive no exemption from any public charges 
 or tax, national or provincial, our voyage payments for public charges 
 for light dues, northern and southern hospital taxes (Casa Misoricor- 
 dia) in each province, harbor and other dues. Customs, etc., amount 
 to $2,346.54 per round voyage, or per voyage $1,173.27. We receive 
 from the Bardados Colonial Government for United States mails about 
 $15 per voyage, but for mails to adjacent islands (intermediary) we re- 
 ceive nothing. 
 
 There is hardly a voyage but what we carry large United States mails 
 to West Indian Islands, Trinidad, etc., other than for the ports we 
 touch at, and mails always for Uruguay, Argentine Republic, and for 
 Chili via Buenos Ayres, thence by Transandine Railway across Pampas. 
 
 INCREASE OF TRADE WITH THE UNITED STATES. 
 
 Ninth query. "What increase in trade has there been between the 
 United States and the ports you visit since your line was established f '' 
 
 I do not think I could do better than hand you a small slip (marked 
 Exhibit D) called for by the president of this company (H. K. 
 Thurber, esq.) in answer to the very same question. This slip briefly 
 gives the percentage each year, and the average of each State in value 
 and average percentage, embracing twenty-five States. 
 
 SATISFACTORY CHANGES IN METHODS OF BUSINESS. 
 
 Tenth query. "Have there been any changes in the methods of com- 
 merce? As I understand it, goods are no longer sent upon consign- 
 ment, but upon orders." 
 
 There has been an entire and almost radical change in the manner of 
 doing business since the establishment of this regnlar line, and an 
 almost entire absence of speculation. Orders for actual wants are the 
 predominant features, consequently a more healthy and secure business, 
 and what is of equal imi)ortance, a sure turning of the trade to this 
 country, which merely requires more frequent and regular communica- 
 tion to secure the majority of the trade, as each country wants what 
 the other produces and manufactures.
 
 THE UNITED STATES AND LATIN AMERICA. / 217 
 
 OfiARACTER OF CARGOES. 
 
 Eleventh query. ''What is the character of your cargoes, and where 
 are the goods produced ? 
 
 " As it is believed that the people of the interior are as much inter- 
 ested in promoting steam-ship communication as those of the sea-board 
 cities, it is important to show the source from which the merchandise 
 you carry comes, and if you give the States and cities in which it is pro- 
 duced, the information will be of great importance. Please furnish 
 sample copies of manifests showing the character of your cargoes." 
 
 The cargoes exported in this company's ships, with the exception of 
 only one or two items, principally Canadian codfish (under bond), are the 
 products and manufactures of the United States. I have sent certified 
 copies of manifests for your verification. 
 
 HOW MAIL CARRIAGE SHOULD BE PAID FOR. 
 
 Twelfth query. "Is it your opinion that steam ships should be paid 
 for the distance sailed and not by the weight and number of letters car- 
 ried ? If not, what would be your plan for the payment of mail trans- 
 portation ? Is it practicable to subsidize steam-ships upon the amount 
 of freight carried or the tonnage of the vessel ? " 
 
 My opinion is that mails should be paid for upon a mileage basis. Is 
 it fair to pay the same (as now is done) for mails from Portland, Me., 
 to Halifax, Canada, as from New York to Santos (5,600 miles) *? Now, 
 with reference to weight of mails. The mails from South America are 
 very rarely of a social character, and, not speaking the English language, 
 "prints" are not a large adjunct to the South American mails, which 
 consist of a purely commercial character, orders for merchandise, 
 invoices, drafts, etc., consequently the intrinsic value, bag for bag, from 
 the bulk, is of far more importance commercially to this country than 
 a transatlantic mail, the gross bulk of which consists largely of social 
 letters and prints. What I would deem a fair method would be pay- 
 ment upon a mileage basis, and the consequent advantage accruing to 
 the whole nation in securing a new and lucrative market for the suri)lus 
 productions of our country. 
 
 I do not think it practicable to subsidize upon a basis of amount of 
 freight, for the reason that a mail steamer should absolutely insure 
 stated regularity at frequent periods of departures and arrivals at each 
 port called at (the dangers and perils of the seas and navigation ex- 
 cepted) ; hence full or not full the ship should sail upon her schedule 
 date. The cargo already shipped on board, mayhap upon the faith of 
 schedule, may be cargo to be delivered within a given date ; drafts may 
 have been accepted or paid upon which the merchant or banker may 
 have predicated, relying upon faith being kept as to schedule, which, 
 if departed from, might involve bankruptcy to firms, etc. All this is 
 against the method of payment upon a cargo basis. The steam-ship
 
 218 TRADE A.ND TRANSPORTATION BETWEEN 
 
 company, if they have auy knowledge of their business, will soon fill 
 up the gap with extra tonnage (short ships) to meet the requirements 
 of their trade. 
 
 LIST OF UNITED STATES-BRAZIL TRADE STEAMERS. 
 
 Thirteenth query : " Can you furnish me a list of foreign steamers, 
 both tramps and those belonging to regular lines, that are engaged in 
 the trade between the United States and Central and South America, 
 with their size, tonnage, nationality and ordinary rates of freight, in 
 comparison to those charged by the regularly established American 
 lines ? " 
 
 The names of the steamers — all tramps, every one of them — running on 
 the Brazilian coast from the United States, and which make this coun- 
 try their headquarters, never going home to their native countries un- 
 less for repairs, etc., where they spend the earnings made by so doing, 
 are : 
 
 English ships : Amazonese, built in 1869, twenty years old ; Maran- 
 hense, built in 1880, nine years old ; Gearense, built in 1869, twenty 
 years old; from a so-called Ked Cross Line owned in Liverpool. 
 
 English ships : Ambrose, built in 1869, twenty years old ; Bernard, 
 built in 1870, nineteen years old; Basil, built in 1871, eighteen years 
 old; Cyril, hnilt in 1882, seven years old; Augustine, built in 1865, 
 twenty four years old ; Jerome, built in 1866, twenty-three years old ; 
 compose the Booth Line owned in Liverpool. 
 
 German ships: ProcMa, built in 1871, eighteen years old, been sent 
 home for repairs, was libeled here for $30,0(i0 for damage to cargo ; 
 Catania, built in 1881, nine years old ; Savona, built in 1871, eighteen 
 years old ; Capua (new), built in 1889. This line is owned in Hamburg. 
 
 I desire, as emphatically as language can convey the fact, to say that 
 the majority of foreign ships came into this trade after this company 
 had demonstrated by perseverance and energy that in time the Bra- 
 zilian trade could be diverted to this country, and this was done at a 
 loss to this company of $237,564.98. This latter fact can be verified by 
 this company's books. 
 
 Then these piratical, irresponsible tramps, obsolete in their own coun- 
 try, came in and are in now. Their ordinary rates of freight are always 
 quoted far below current rates, otherwise they would not get cargo from 
 the general public, except what their owners, who are nearly all mer- 
 chants or dealers, would supply. (See remarks in answer to third query, 
 applicable to this query.) These foreign crafts, which make their head- 
 quarters in this country, which do not contribute one cent, in taxes, 
 should be rated by qualified inspectors as to their seaworthiness, and 
 made to pay a tonnage tax of $1 per ton ev^ry time they cleared for 
 any port other than their own country or colonies. I fear that inter- 
 national treaties would prevent this, but there is surely a way that our 
 legislators can devise to help this native industry by which the whole 
 nation will be benefited.
 
 THE UNITED STATES AND LATIN AMERICA. 210 
 
 COST, CARGOES, AND RATES. 
 
 -) 
 
 Fourteenth query: " Where do these 'tramp' steamers come from, 
 and how much does it cose to run one, compared with the American 
 steamer of the same size upon a regular line ? Please state also, if 
 possible, the amount of American goods carried to Brazil by American 
 steamers within the last few years, and the amount carried by foreign 
 steamers; also please state the amount of imports brought by the 
 United States. " 
 
 It would be very difficult to give you an estimate of the cost of run- 
 ning a "tramp;" it lies a gieat deal, in the writer's estimatiim, in 
 what the crews will stand and do without, and how long they can 
 chance running the old boilers and engines and stagger home for re- 
 pairs. 
 
 The bulk of valuable cargo is always shipped by our lines. I could 
 not give you an estimate of the proportion. These "tramps" are 
 loaded, outside of their owner's goods, with flour and lard principally. 
 
 As to rates asked for by some, it is just simply what they can get. 
 
 SHIPS IN THE TRIANGULAR TRADE. 
 
 Fifteenth query: " How many foreign, lines of steamers are regularly 
 engaged in the triangular trade from Europe to Brazil, to New York, 
 to Europe again, and how many ' tramps?' What rates of freight do 
 they charge compared with those the Brazilian line is compelled to 
 charge in order to survive ? What subsidies, if any, do these triangular 
 line ships receive, and what is the cost of maintaining them as com- 
 pared with that of maintaining American ships'?" 
 
 Answered, principally, in reply to query third. There are forty-three 
 steamers owned bj^ a Liverpool company engaged in the triangular 
 route under the Belgian and English flags and subsidized by both Gov- 
 ernments (see Exhibit B). I am unable to reply to the query as to cost 
 of running this triangular route. The British Government give so 
 many aids to shipping and commerce to make their burdens lighter 
 that this country does not possess, that I find it impossible to give a 
 competent answer, such as you require. 
 
 CONCLUSION. 
 
 In conclusion I desire to state that my statements are all facts de- 
 duced from actual daily and hourly experience, and I respectfully desire 
 that no one in this company but the writer shall be held res]>onsible for 
 the various comments that I have interpolated throughout this letter. 
 You, no doubt, can see that I feel strongly upon this matter, but how- 
 ever imperfectly the ideas may be expressed they are none the less true, 
 and knowing the intense interest you have always taken and shown in 
 this important subject, I venture to ask your advocacy on behalf of our 
 mercantile marine. We have just the same grit, energy, and enterprise
 
 220 TRADE AND TRANSPORTATION BETWEEN 
 
 we erer had. If Congress will bestow some attention to this matter, 
 you will soon see the old flag once more where it once was — predomi- 
 nant on the ocean — and you will see a naval reserve and a fleet of un- 
 armored cruisers grow up that will be always ready when wanted, and 
 it will make quarrelsome nations pause before they venture giving an 
 insult, knowing we had the means and men who would quickly resent it. 
 
 I have not given any data relating to other lines, as I deem it their 
 duty to present their own case, as they are more familiar with the same, 
 but the principle involved applies in a greater or lesser degree to all 
 Americans engaged in the foreign trade. Our brothers on the Pacific 
 Slope have a subsidized line running to the terminus of the Canadian 
 Pacific, that, in consequence of that subsidy, is eating the very vitals of 
 the trade they worked so hard to gain from the Orient. England's 
 strategetic policy is rampant in her mercantile marine everywhere, but 
 it is for her own glory and aggrandizement, and greatly at our expense 
 and loss. What is the object of the latter subsidy paid by England? 
 Canada had little trade with China and Japan. The object is to divert 
 it to herself and secure a way to the East in case of war (in case the Suez 
 Canal and Red Sea are blockaded), and to get traffic for the Canadian 
 Pacific Railway, the very existence of which depends upon the trade 
 she wrests from us. 
 
 On subject more, as it is not touched upon in your letter. This com- 
 pany at its own ejpeuse and at its initiation, sent samples of Georgia 
 drills and jeans and Massachusetts domestics to Brazil ; they were 
 tested alongside Manchester goods. Since that time the exj)ort of these 
 two articles is increasing month by month, and holding more than their 
 own against English goods of the same character. You see by the 
 diversified nature of the exports as shown in the certified copies of 
 manifests forwarded you that we can compete successfully (or our busi- 
 ness would cease) with any country, notwithstanding the ignorant, 
 flatulent, and effervescing articles that are from time to time issued by 
 a portion of our press. The inwardness of the inception of these ar- 
 ticles is a truckling subservience to the foreign importer and foreign 
 shipping agent for advertisement; the former's only desire being that 
 he import, break packages, and distribute from a center, but it is a 
 matter for congratulation that although they are persevering and loud- 
 mouthed, they are few. 
 
 Yours, very respectfully, 
 
 J. M. Lachlan, 
 Oeneral Manager United States and Brazil Mail Steamship Co.
 
 THE UNITED STATES AND LATIN AMERICA. 
 Exhibit A. 
 
 221 
 
 EXPORTS BY THK BRAZIL SHIPS. 
 
 Exports to St. Thomas, W. I.; Para, Maranham, Pernamhwo, Bahia, Rio de Janeiro, San 
 tos, Pnranagua, Antonina, Sania Catliarina, Rio Grande do Sul, Pelotas, Porto Alegro, 
 Brazil; Montevideo, Uruguay; Buenos Ayres, Argentine Republic. 
 
 Tear. 
 
 1885 
 18S6 
 1887 
 1888 
 
 Average 
 
 amonnt, 
 
 one ship 
 
 per voyage. 
 
 $155, 000 
 195, 000 
 250, 000 
 310, 000 
 
 Three ships, 
 
 16 trips 
 per aunum. 
 
 $2, 480, 000 
 3,120,000 
 4, 00(1, 000 
 4, 960, 000 
 
 Increase 
 
 against 
 
 each 
 
 preceding 
 
 year. 
 
 Per cent. 
 
 lucreane 
 
 against 
 
 1885. 
 
 Per cent. 
 
 26 
 61 
 100 
 
 No. 
 
 Name of State manufactured 
 or produced in. 
 
 California 
 
 Connecticut... 
 
 Delaware 
 
 Georgia 
 
 lUiuuis 
 
 Iowa 
 
 Kansas 
 
 Louisana 
 
 Maryland 
 
 Michigan 
 
 Massachusetts 
 
 Minnesota 
 
 Missouri 
 
 Average 
 percentage. 
 
 0.05 
 7.00 
 0.05 
 
 11.40 
 2.00 
 0.40 
 0.25 
 0.25 
 0.25 
 3.00 
 
 14.00 
 C.90 
 1.85 
 
 No. 
 
 Name of State manufactured 
 or produced in. 
 
 Average 
 percentage. 
 
 Maine... 
 
 North Carolina 
 
 Ne^« Jersey 
 
 New Tork 
 
 Ohio 
 
 Oregon , 
 
 Pennsylvania ., 
 Rhode Island . 
 South Carolina 
 
 Vermont 
 
 Virginia , 
 
 Wisconsin 
 
 0.10 
 0.60 
 4.75 
 
 25.75 
 2.00 
 0.05 
 
 20. 25 
 2.10 
 0.65 
 0.10 
 0.50 
 1.75 
 
 Exhibit B. 
 
 THE BRITISH FOREIGN MAIL, SERVICE. 
 
 In the Blue Book, 34th Report of the (British) Postmaster-General for 1888, pre- 
 sented to both Houses of Parliament by command of Her Majesty, Appendix G, pages 
 28 and 29, the following is a literal and verbatim transcript : 
 
 « 
 Australia: ' 
 
 Colombo and Melbourne, Suez and Sydney, 
 Aden and Brisbane, San Francisco and 
 Sydney, London and Sydney and interme- 
 
 mediate Australian ports £1,175 
 
 Brazil River Platte and Chile : 
 
 Bimonthly service from Southampton . £5,2.54 
 
 Fortnightly service from Liverpool £11,439 
 
 Cape Good Hope and Natal contracts : 
 
 With colonial governments 
 
 Cape Good Hope and Natal : 
 
 For calls at St. Helena and Ascension £2, 774 
 
 Natal parcel post £36 o 
 
 East India and China , £360,000 
 
 East India and China: 
 
 Parcel £265,000 
 
 Post 2,075
 
 'J22 TRADE AND TRANSPORTATION BETWEEN 
 
 Ea«t Coast Africa : 
 
 Aden and Zanzibar service provided under 
 
 arrangement with foreign office. 
 
 Enrope : 
 
 Dover and Calais £12,440 
 
 Dover and Ostend 4,500 
 
 Liverpool, Constantinople, and Smyrna, par- 
 cel post 11 
 
 London to Hamburg, parcel post 141 
 
 North America : 
 
 Queenstown to New York 82,741 
 
 Bermuda to New York 300 
 
 Panama to Valparaiso 3,160 
 
 West Indies : 
 
 Fortnightly service 90,000 
 
 Additional services (non-contract service).. 233 
 
 Liverpool to West Indies and Mexico 1,127 
 
 Belize and New Orleans 1,600 
 
 West Coast of Africa 9,369 
 
 853,375 
 Add for Australian, etc., service now under 
 consideration and negotiation, say 200,000 
 
 1,053,375 0= $5,151,003^ 
 
 THE SPECIAL SUBSIDIES PAID BY GREAT BRITAIN. 
 
 Besides the above, there is paid by the British admiralty a subvention to merchant 
 steamers for state purposes. To Cunard Line for steam-ships Umhria, Etruria, and 
 Aurania, 158. per gross register ton per annum as long as they have mail contract 
 from Queenstown to New York, or 20*. if same is withdrawn. 
 S. S. Aurania : 
 
 Gross tonnage, 7,269 tons, at 15«. (with contract) £5,451 15 
 
 20». (without contract) 7,269 
 
 S. S. Umhria : 
 
 Gross tonnage, 7,798 tons, at 158. (with contract) , 5,848 10 
 
 208. (without contract) 7,798 
 
 S. S. Etruria : 
 
 Gross tonnage, 7,790 tone, at 158. (with contract) 5,842 
 
 20«. (without contract), 7,790 
 
 The Oceanic Steam Narigaiion Co., ttd. 
 
 The 2 new ships of this company : 
 
 With contract, £0,,'><)0; on 2 steamers £13,000 
 
 Without contract, 208., £8,.500; two steamers 17,000 
 
 Extract from Report of the Superintendent of Foreign Mails, June 30lh, 1888, page 6. 
 
 North-German Lloyd (from New York) $174,022.89 
 
 Cunard (from New York) 88,385.17 
 
 White Star (from New York) 14,204.76 
 
 Liverpool and Great Western (from New York) 28,505.44 
 
 Anchor (from New York) 3,, 094. 40
 
 • THE UNITED STATES AND LATIN AMERICA. 223 
 
 Hamburg- American (from Now York) $14,G2ri. 76 
 
 Inmau (from New York) 1,263.44 
 
 Cuuard (from Boston) ' 1,911.0:? 
 
 Thiugvalla (from New York ) 4.7!! 
 
 Steamer Cumbrian ( to Africa) 
 
 Geufral Transatlantic (from Now York) 2.'), 134.53 
 
 RodStar (from New York) ^ 18.93 
 
 Netherlands Steam Navigation Company (from New York) 3. 13 
 
 Total 353,258.61 
 
 EEC APITI7L ATION. 
 
 Total amount received by Cunard and Oceanic Steam Navigation Companies from 
 Biitish admiralty subvention for state purposes per annum, with contract 158. per 
 gross ton, and postal authorities of Great Britain and United States : 
 
 Cunard Line. 
 
 S. a. Jnrania £5,45115 
 
 a. ii. Umbria 5,848 10 
 
 a.H.Etruria 5,842 
 
 £17.142 5 0=$83,825.58 
 
 Total am't rec'dfrom Brit. Gov't for Q'town 
 
 mail to New York as per British post- 
 
 master-gen'l report (34th), say, half of 
 
 £82,741 £41,370 10 0=$202,301.75 
 
 Paid by U. S. postal authorities as per 
 
 Snp't Foreign Mails Report, 1888, p. 6, 
 
 annexed herewith $88,385.17 
 
 Distance froniN. Y. to Q'town, average winter and summer routes ..miles.. 2,850 
 
 Both, ways do 5,700 
 
 52 voyages per annum do 296, 400 
 
 Amount per mile received in subsidy, etc., by Cunard Line do $1.26 
 
 The Oceanic Steam Navigation Co., Ld. 
 
 Total amount to be received by above co'y for 2 new steamers from British admi- 
 ralty subvention for state purposes, with contract, 15s. per gross ton per annum : 
 2 new steamers as per copies correspondence respecting 
 the subvenlaou of merchant steamers for state pur- 
 poses presented to both houses of Parliament by com- 
 mand of Her Majesty (C. 5006) £13,000. 0=$63,570.00 
 
 Total amount rec'd from British Gov't for Q'town 
 mail to New York as per British postmaster-gen'l report 
 
 (34th), say, half of £82,741 41,370 10 0=202,301.75 
 
 Paid by U. S. postal authorities as per Supt. Foreign 
 Mails Report, 1888, page 6, annexed herewith 14,204.76 
 
 280.076.51 
 Distance from N. Y. to Q'stown average winter and sum- 
 mer routes miles. . 2, 850 
 
 Both ways do 5,700 
 
 52 voyages per annum do 296,400 
 
 Amount per mile received in subsidy, etc., by above co'y $0.94
 
 224 TRADE AND TKANSPORTATION BETWEEN 
 
 North German Lloyd S. S. Co. 
 
 Amount paid above Co'}' by U. S.postal authorities, as per Bupt. foreign 
 
 mails, report 1888, page 6 $174,022.69 
 
 Subsidy paid by German Gov't (unknown) 
 
 Query. Amt. rec'd from Brit. Govt, soa postages 
 
 Inward letters (unknown) 
 
 Amt. paid per mile one way by U. S. Gov't postal authorities alone 1. 05 
 
 Query. What is paid by other Gov'ts? 
 
 Total amt. paid by British Government in 1888 for foreign and colonial 
 
 mail packet service f), 1.51, 003.75 
 
 Total amt. paid by U. S. Gov't for the trans-Atlantic service alone to 
 
 foreign steamers for 1888 353, 258. 61 
 
 Total amt. paid by U. S. for trans-Pacific service vessels of American" 
 register for 1888 37,302.86 
 
 For miscellaneous service — 
 
 Vessels of American register for 1888 $49, 506. 19 
 
 Less 11,73.3.44 
 
 Tendered to and refused acceptance by U. S. and B. 
 
 M.S. S. Co'y as inadequate 37,772,75 
 
 Total amt. paid to American ships by U. S. Gov't for 1888 75, 075. 61 
 
 do. do. foreign closed mails 685.38 
 
 Grand total amt. paid American ships 75, 760. 99 
 
 Trans-Pacific service paid by U. S. Gov't to vessels of foreign register. 5, 290. 27 
 
 Miscellaneous service do. do 9,047.42 
 
 14,337.69 
 
 Total amt. paid by U. S. Gov't to foreign ships for mails 367, 596. 30 
 
 For foreign closed mail service Trans- Atlantic 25, ^63. 71 
 
 Miscellaneous do. do. 100.64 
 
 Total amt. paid by U. S. Govt, to foreign ships 393, 560. 65 
 
 Exhibit C. 
 
 ADDRESS BY WILLIAM ELEROT CURTIS AT THE BAN^QUET OF THE SPANISH- 
 AMERICAN COMMERCIAL UNION, MAY 1, 1880. 
 
 Mr. President: I am asked to speak of our manufacturing industries. It is a 
 mighty subject; bigger than most men suppose. Nobody knows what our forges and 
 factories produced in 1888. We will have to wait until the census of 18iK) lor accurate 
 returns, but putting this and that and the other thing together, the statisticians 
 figure out an estimate and make the total $8,000,000,000— $8,000,000,000 worth of 
 manufactured merchandise — to eat, to wear, to use, and to sell ; and we sold but 
 $130,000,000 outside the limits of this fair land last year. 
 
 I do not include as manufactured merchandise the products of agriculture, of which 
 ■we exported $500,000,000 in 1888, nor the products of the mines, or forests, or fisheries, 
 of which we sold some $50,000,000 ; but it is well that every man should know that we 
 did not sell enough by $40,000,000 to pay for the raw material import ed for the use in the 
 production of this merchandise. I haven't the figures of England's trade in 1888, but 
 a previous year she sold $765,000,000 worth of the same class of goods, $365,000,000 of 
 ^hich were cotton fabrics, $125,000,000 of iron, nearly as much of woolen, and soon,
 
 THE UNITED STATES AND LATIN AMERICA. 225 
 
 in proportion. And a great part of this export went to South America, to markets 
 that by all natural laws should be our own, and would be, had we cultivated them 
 as England has done. 
 
 This association, as I understand it, is intended to do that thing. It in composed 
 of men who understand what the trouble is and seek a correction. 
 
 RKCIPROCITT TREATIES. 
 
 Our sales of provisions, breadstuffs, lumber, petroleum, and some other articles 
 might be enormously increased if we could make reciprocity treaties by which the 
 duties upon these articles would be removed by our neighbors, so that they might be 
 bought and used by the common people, and we remove our duties on wool and sugar 
 from countries that make such a concession. I had the honor to be a member of a 
 commission that discussed this subject with most of the Central and South American 
 Governments, and all but one of them agreed to the proposition. We need direct 
 banking facilities, too, simpler customs regulations down there, and better packing up 
 here, but the greatest obstacle in the waj"^ of increased trade is the lack of transpor- 
 tation; and that can not be removed without encouragement on the part of ourGov- 
 emment. 
 
 THE CARRYING TRADE. 
 
 The cry of ♦' subsidy" has frightened Congress. But, Mr. Chairman, the United 
 States is one of the most liberal nations on earth in giving subsidies. I intend no 
 sarcasm. A subsidy, as we understand it, is pecuniary assistance to facilitate com- 
 merce, and our Congress offers it to most everything but ships. We subsidize the 
 sheep of Ohio and the sugar cane of the South, the iron of Pennsylvania, and the lum- 
 ber of Michigan. Every railroad is subsidized, every stage coach and every steam- 
 boat that plies our inland waters or skirts our coast. 
 
 Every town in which a post-office is established or a Government building erected 
 is subsidized at the expense of the tax-payers for the convenience of commerce, but 
 when it comes to ocean mails the practice stops. Every commercial nation but our 
 own assists its ocean steamers, and the experience of ages has taught that it is the 
 only way to establish lines of foreign trade. 
 
 AMERICA DISCOVERED BT A SUBSIDIZED SHIP. 
 
 Why, Mr. Chairman, America was discovered from the deck of a subsidized ship. 
 [Laughter and applause.] A woman left her jewels with a banker of Seville to 
 secure its payment, and a clerk in the counting-room of that banker, perhaps the 
 very one who counted out the gold, afterward gave his name to this hemisphere. 
 England secured her commercial supremacy by subsidy. Nor has she given her 
 service to the lowest bidder, but to the best, and in long contracts, so that the ship- 
 owners might know what to depend upon in the future. Some years ago an attempt 
 was made by a rival line to get the mails away from the Cunarders by underbidding; 
 but that British postmaster-general whose eyes were sightless, but who saw with his 
 mind much that other men overlooked, said " No." The Cunarders had done the 
 service satisfactorily for half a century, he said, and had built a Heet of staunch and 
 Bwift ships with the expectation of a continuance, and they should keep the con- 
 tract. The same policy was pursued in reference to the Royal Mail Company, whose 
 vessels carry the mails of England to the West Indies and South American ports. 
 The attempt of a rival company to underbid them was rebuked. 
 
 But we don't do things that way in the United States. 
 
 PAY SHOULD EQUAL THE LENGTH OF THE VOYAGE. 
 
 American steam-ships will never be fairly paid until their compensation is reckoned 
 by the length of the voyage, instead of the number of letters carried, and we will 
 S. Ex. 54 15
 
 ':2(] TRADE AND TRANSPORTATION BETWEEN 
 
 have few steamers until contracts are made for more than a single year. When rates 
 of foreign postage were reduced under the treaty of Berne — under the lutemationa- 
 Postal Union — no one intended that the reduction should be made at the expense of 
 the steamship owners. The interstate commerce law prohibits the railroad own- 
 ers from charging as much for a short haul as for a long haul, and the compensation 
 given to the stage-coaches in the West is measured by the distance they travel and 
 the cost of the trips. The ocean service is the only branch of our postal system that 
 is self-supporting, and Mr. Vilas confessed that he had to pay the boats on the rivers 
 of the South excessive compensation in order to provide planters with facilities for 
 reaching market. 
 
 Is there any greater wrong in affording the merchants of New York facilities for 
 transportation to the South American ports than in furnishing the same to the mer- 
 chants of Evansville, Ind., or the planters of the Chattahoochee, or the market garden- 
 ers along the Chesapeake, or the summer visitors of Buzzard's Bay and Bar Harbor? 
 Let me cite a few illustratious. During the last year the Post-Office Department paid. 
 $44,500 for the transportation of mails on the rivers of Arkansas, and only $13,715 
 for the transportation of mails to Japan; $54,701 on the rivers of Washington Terri- 
 tory, and only $42,593 to all the Asiatic and Australian ports. We paid $79,637 for 
 carrying the mails on the rivers of Florida, but only $47,997 for sending them to all 
 Central and South America and to the eutire West Indies, with the exception of 
 Havana. We paid $20,879 on the Ohio River, between Paducah and Louisville; 
 $101,566 to subsidize stage-coaches in Nevada; $239,.568 in Washington Territory; 
 $163,893 in Idaho; and $417,000 in Colorado, and but $86,890 to encourage American 
 steamers all over the world. 
 
 SOME STRIKING COMPARISONS. 
 
 During the summer season of 1888, in order that the good people who go to Nan- 
 tucket and Martha's Vineyard might get their letters regularly, the Government of 
 the United States paid a subsidy amounting to $12,093. This for five months. Dur- 
 ing the same time it paid $4,88.5, a little more than one-third as much, to build up a 
 trade with Brazil. The little steam-boat ou the Androscoggin Lakes would have re- 
 ceived a third more than the Red D Line to Venezuela had it kept going the entire 
 year, but it stopped when the summer boarders went homo, and was satisfied with 
 a subsidy of $3,700 for four months, while the Venezuela Line got $6,000 for twelve 
 mouths. 
 
 The excursion boat that plies between Watkins Glen and Geneva, N. Y., got twice 
 as much in 1884 as the Venezuela steamers, and the ferry between Norfolk and Cape 
 Charles got as much last year alone as the Red D Line has received in five years. 
 The steamers of the Chesapeake Bay and its tributaries get $49,539 annually, or more 
 than is paid to all the Central and South American lines, while the boat between Nor- 
 folk and Baltimore got $13,518, or $2,000 more than tlie line to Brazil. The coastwise 
 steamers got $563,000 last year for less than 500,000 miles traveled, which is more than 
 $1 a mile, while the steamers to South America and the West Indies traveled more 
 than 2,000,000 miles and got less than $48,000, 2 cents and 4 mills a mile. 
 
 Nor are you alone interested in this question. This city has just witnessed one of 
 the most monstrous and impressive demonstrations the world has overseen, coumiemo- 
 rating the end of an old and the conimoncemeut of a new epoch. But demonstrations 
 of even greater significance than balls and banquets and marching columns and fiag- 
 covered fleets, more typical of American progress, more prophetic of future prosperity, 
 are found in almost every village in tlie land. Inventive genius has so multiplied 
 our capacity of production that one skillful hand can accomplish more than one hun- 
 dred could a century ago. This is an age of miracles. No obstacle to human progress 
 arises without a suggestion from some genius to clear it away, and a million brains 
 will bo at work again to-morrow seeking methods by which our capacity of produc- 
 tion may be made greater still.
 
 THE UNITED STATES AND LATIN AMERICA. 227 
 
 ATTITUDE OF THE ADMINISTRATION. 
 
 We must make less or sell more. The first alternative is impossible ; the second 
 imperative. Neither capital nor labor wonkl permit anything else, and so we stand 
 upon the threshold of a now century of national life with a problem as serious as that 
 of slavery, which vexed the nation thirty years ago. And yet the solution is simple 
 enough, and I think is understood by those upon whom the responsibility rests. I 
 can say for the President that he knows where the trouble lies, and has the courage 
 to correct it so far as his authority and influence can reach. It is violating no confi- 
 dence to say that the expansion of American commerce on longitudinal lines is to be 
 the feature of his administration, and Mr. Blaine and Mr. Wanamaker are entirely 
 and heartily in sympathy with him. I think, too, that in the next House of Repre- 
 sentatives will be found the same spirit of enterprise and justice that exists in the 
 Senate; but everybody here who knows a Congressman should make it a business to 
 educate him. 
 
 I expect great good from the conference of delegates from the American nations 
 that is to assemble in October. It was my privilege to prepare and secure the pass- 
 age by Congress of the bill that authorized it, in accordance with recommenda- 
 tions of the South American Commission. [Applause.] Right here I want to make 
 an important suggestion. The impression is abroad in South America, and is assid- 
 uously encouraged by the many newspapers of that continent, which are under Eu- 
 '■opean influence, that the United States has fixed a diplomatic trap to catch its neigh- 
 bors in ; that Mr. Blaine has some profound political conspiracy to carry out, and the 
 apprehensions of some of the governments have been so excited that their delegates 
 are coming here with the spirit of resistance to everything that may be proposed. 
 This is a serious mistake, and those of you who have correspondents in South Amer- 
 ica should correct it. There is no political purpose in this conference whatever be- 
 yond the discussion of methods of arbitration by which war may be avoided and 
 peace preserved, and that, I take it, is one of the most important commercial topics 
 that could be discussed. 
 
 Thanking you for the opportunity of coming here, and pledging myself to the pro- 
 motion of your interests at Washington, I am, Mr. Chairman and gentlemen, your, 
 most obedient servant. [Applause.]
 
 228 TRADE AND TRANSPORTATION BETWEEN 
 
 XVIII. 
 
 THE RED "D" LINE OF STEAMERS. 
 
 New York, September 25, 1889. 
 Dear Sir: The Red " D" Line may be said to have been estf. Wished 
 about the year 1838, as that is the date when the first vessel was dis- 
 patched. For many years sailing vessels alone were employed. In the 
 autumn of 1879 it was decided to substitute steam for sail and three 
 German steamers were chartered. The first of them, the Felicia, 1125 
 tons gross, was dispatched on November 15, 1879. These boats were 
 subsequently replaced by American steamers and the line is now com- 
 posed of the following steam-ships, all specially built for the trade: 
 
 On line from New York to Cura^oa Puerto Cabello, La Guayra: 
 
 S. S. Valencia tons gross.. 1,598 
 
 S.S.Philadelphia do.... 2,100 
 
 S.S.Cardcas do.... 2,600 
 
 S. S. Feneziiela (building) do 3,000 
 
 On branch line between Cura^oa and Maracaibo : 
 
 S. S. Maracaibo tons gross.. 1,262 
 
 S.S.Merida do 517 
 
 The steam-ships on the main line are iron, and were built by The 
 William Cramp & Son Ship Engine Building Company, of Philadelphia, 
 tinder the supervision of the American Record and British Lloyds, hav- 
 ing the highest classification in both. 
 
 The Maracaibo and Merida are wooden steamers, built in Philadel- 
 phia — the hulls by Charles Hillman & Co., and the machinery by Neafie 
 & Levy. 
 
 All the steamers are provided with very superior accommodations 
 for passengers and every approved modern improvement for safety, 
 convenience, and comfort ; the latest additions to the fleet being lit by 
 Edison's incandescent electric light. 
 
 The main line is from New York to the Island of Cura5oa, from thence 
 to Puerto Cabello, and thence to La Guayra, Venezuela, returning over 
 the same route. The branch line is from the Dutch Island of Cura5oa 
 to Maracaibo, Venezuela. At Curaeoa regular connection is made with 
 the steamers of the main line from and to New York.
 
 THE UNITED STATES AND LATIN AMERICA. 229 
 
 Steamers leave New York every twelve days, and if the trade con- 
 tinues to increase and encouragement is given by our Government, the 
 frequency of the service may be increased. 
 
 THE COST OF CONSTEUCTION AND MAINTENANCE. 
 
 It is diflBcult to state the difference in the cost of constructing 
 American ships as compared with those built in Europe. There is a 
 great difference in the style of building ships and finishing them, be- 
 sides which the textile strength of American iron is greater than the 
 English, and an American boat built according to same specifications 
 would be stronger than an English one. Almost all boats built in this 
 country are intended for a special trade, and it is doubtful if an English 
 builder would construct a steamer from American plans and specifica- 
 tions for much less than she could be built here. 
 
 On the other hand it is very doubtful if you could get an American 
 builder to bid on a boat to be constructed on the plan of the English 
 "tramp." 
 
 It is estimated that the difference in cost in this country and England 
 between strictly first-class passenger-steamers is not more than about 
 15 per cent., while no doubt it would be much greater in the case of 
 the cheap freight- boat kuown as a "tramp." 
 
 The principal difference in cost of running the ships is due to the 
 wages paid the officers and crew, and the cost of feeding them. Ameri- 
 cans are not willing to work for the same wages that are paid on Euro- 
 pean steamers, nor are they willing to live in the same manner. 
 
 On the same wages paid Europeans it would be impossible for Amer- 
 ican officers to support their families in this country. As a rule the 
 oflBcers and crews of American ships work harder and keep their ships 
 in better condition than foreigners. This is especially true in regard 
 to machinery. In this way they earn a portion of the additional wages 
 paid them. 
 
 COMPETING LINES. 
 
 There are two regular lines of foreign steamers running from New 
 York to ports called at by our steamers, both of which receive subsi- 
 dies from their governments, namely. The Koninklijke West ludische 
 Maildienst (Dutch) and the Compaiiia Transatldntica Espaiiola (Span- 
 ish). 
 
 The steam-ship lines from European ports to the ports reached by our 
 steamers are: The French line from Marseilles, San Nazaire, and Bor- 
 deaux ; the Dutch line from Amsterdam • the royal mail from South- 
 ampton j the Spanish line from Spain, Cuba. All of these receive sub- 
 sidies. 
 
 In addition to the foregoing there are two English lines and one Ger- 
 man, carrying cargo only, that are not subsidized.
 
 230 tkade and transportation between 
 
 COMPENSATION FOR CARRYING THE MALLS. 
 
 Compensation paid the Eed "D" Line for carrying mails is as follows : 
 
 Year ending December 31, 1887 $5,849,21 
 
 Year ending December 31, 1888 6,374.66 
 
 The number of voyages per year was about thirty. Previous to 1886 
 the compensation paid was sea postage ; since that date sea and inland 
 postage has been allowed. 
 
 Before Venezuela joined the Postal Union the rate of postage to that 
 country was 10 cents per half ounce. It is now 5 cents. 
 
 The advantage which steam-ships employed upon the coast and in- 
 land waters enjoy over us in mail contracts is best shown by the fact 
 that when the mails were forwarded to Havana from New York the 
 service was under the charge of the superintendent of foreign mails, 
 and the total amount allowed was $0,833.06. In 1886 a change was 
 made, and the mails have since been sent by rail to Tampa Bay, and 
 from thence by steamers to Havana. A law having been passed by 
 Congress which enabled the Postmaster-General to transfer this route 
 to the steamboat seivice, the Postmaster-General, after paying for the 
 transportation by rail to Tampa Bay, contracted to pay the steamer 
 for carrying them from there to Key West and Havana the sum of 
 $58,000, the distance being only 183 miles, against 1,210 miles from New 
 York. 
 
 THE COST OF CARRYING THE MAILS. 
 
 It is not practical to divide the expenses of a steamer and thus 
 ascertain the cost of carrying the mails. With American steamers 
 engaged in the foreign trade, the Government acts as a dead-head and 
 practically asks them to work for nothing. We would not do the same 
 amount of work for a private concern for anything like the miserable 
 pittance paid us for carrying the United States mails. 
 
 The only payment made to us by any foreign Government for carry- 
 ing the mails is a nominal sum allowed by Curajoa. 
 
 Almost all goods shipped to Venezuela are on orders received from 
 merchants of that country. The principal goods shipped are flour, corn, 
 meal, lard, butter, kerosene, tobacco, cotton goods, wooden ware, ma- 
 chinery, agricultural implements, railroad and street cars, clocks, safes, 
 glassware, furniture, and in fact almost everything that we have to 
 export. 
 
 If our Government wants to develop the trade between this country 
 and South and Central America and the West Indies it must do as 
 every pjuropean country has done, which is establish and maintain reg- 
 ular mail communication with them. We may theorize as much as we 
 please, but the fact remains that the countries that have the trade are 
 those that have established reguhir mail communication, and if we 
 want any share of it we must follow suit.
 
 THE UNITED STATES AND LATIN AMERICA. 231 
 
 If our great object is to save a few dollars, then we should continue 
 to give our mails to any tramp that may happen to be going to one of 
 these countries, and sponge on the few American lines that are fighting 
 against great odds ; but if we want to develop our trade we must be 
 willing to pay a fair amount for good service, and see that we get it. 
 I am yours, very truly, 
 
 • Ernest C. Bliss. 
 
 New York, December 26, 1889. 
 
 Dear Sir : Since my letter of September 25 was written the Ham- 
 burg American Steam Packet Company have advertised that they will 
 dispatch steamers between New York and La Guayra, Puerto, Cabello, 
 Cura^oa, etc., twice a month, beginning in January. 
 
 This will make the third line of foreign steamers running in direct 
 competition with ours. The headquarters of these three lines are in 
 Europe, and Euroi)eans alone are employed on board the ships, their 
 wages being paid and their families supported out of the freight col 
 lected from the merchants of this country and South America. 
 
 The Hamburg American Comi^auy now practically monopolizes the 
 trade between this country and Hamburg, and also between Hamburg 
 and Venezuela, Colombia, and the West Indies. 
 
 Not satisfied with doing all the carrying trade between her own ports 
 and ours, Germany now seeks to divide with England the trade that 
 has been built up between the United States and South and Central 
 America and the West India Islands. In endeavoring to do so her 
 shipowners are encouraged by the sympathy, if not the active support, 
 of their Government. 
 
 Yours, very truly, 
 
 Ernest C. Bliss. 
 
 William E. Curtis, Esq., 
 
 Washington, D. G.
 
 THE UNITED STATES AND LATIN AMERICA. 233 
 
 XIX. 
 
 THE PROPOSED NAVAL RESERVE. 
 
 In a recent report to Congress, the Hon. William 0. Whitney, late 
 Secretary of the Xavy, spoke as follows : 
 
 The policy of this country has always been opposed to the establishment of large 
 permanent naval and military organizations. This policy, for a country with a great 
 coast-line and important commercial interests, almost necessitates the maintenance of 
 auxiliaries in the way of naval and military reserves. The land forces have such 
 auxiliaries in the shape of State militia or national guards. These constitute large 
 bodies of troops, well organized and equipped, thoroughly well trained and disci- 
 plined, ready to take the field and to become a part of a regular military establish- 
 ment when required. 
 
 A public feeling seems to exist for the creation of a naval reserve. 
 
 Committees of the Chambers of Commerce of New York and San Francisco havt 
 passed resolutions urging the organization of such a force as a means for providing 
 for the coast defense and meeting the increased demands of the regular naval estab- 
 lishment for men and vessels upon the outbreak of war. Inquiries have also been 
 made at the Department from cities of the Great Lakes, and meetings have been held 
 in cities of the South indorsing the formation of such a national organization. 
 
 THE QUESTION OF COAST DEFENSE. 
 
 The Department has informed itself fully of the different systems of organization 
 for coast defense and naval reserves at present in force in foreign couutries, and is 
 prepared to formulate a general plan for a similar organization to meet the require- 
 ments and conditions of our own institutions. It should resemble in organization 
 that of the militia or national guard, rest upon the foundation of local interest, con- 
 template the employment and rapid mobilization of steamers enrolled on an auxiliary 
 navy list, and be calculated to produce the best results upon a comparatively small 
 national expenditure. I ask for this question the earnest consideration of Congress. 
 
 It may not be out of place as a branch of this subject to call attention to one of the 
 incidental consequences of the policy pursued by other countries in this matter of a 
 naval reserve. In time of war troop ships or transports are in great demand. Sev- 
 eral European governments make an anaual contribution, based on tonnage, to com- 
 panies constructing new vessels. The consideration to the government is a counter 
 agreement, permitting the goverument to take such a vessel for a transport in time 
 of war upon terms named in the agreement. The government officials are also con- 
 sulted as to her mode of construction, and she goes onto the naval reserve list. 
 These payments are incidentally in the nature of a subsidy to the ship-owner, and 
 this, with the liberal payments for goverument transportaticm of mails, etc., keeps a 
 large fleet of merchantmen afloat as a reserve ready for a time of war. Without 
 ships and trained seamen there can be no naval reserve.
 
 234 TRADE AND TRANSPORTATION BETWEEN 
 
 ENGLAND'S NAVAL KESEUVE. 
 
 A notable illustration of tho generosity and courage with which England pushes 
 her shipping interest is seen in the manner in which she is at this moment dealing 
 with the trade of the North Pacific. It has been thus far principally under tl e 
 American flajr and contributory to Sau Francisco and tho United States. The British 
 Government iind Canada together are proposing for the establishment of a line of 
 first-class steamers from Vancouver to Japan. Tho subsidy is likely to bo $:W0,000 
 annually— £45,000 from England and £ir),000 from Canada. There will also be con- 
 tributed from the naval reserve fund probably f.5 per ton annually for each ship con- 
 structed for the route, which will increase the sum by probably $125,000. Under 
 such competition it is quite easy to conjecture what will become of tho American flag 
 and our resources in the way of a naval reserve in the North Pacific. 
 
 RECOMMENDATION OF ADMIRAL PORTER. 
 
 David D. Porter, Admiral of the Navy, in a recent report says : 
 
 Every merchant knows that a line of American ocean steam-ships can not be main- 
 tained without subsidies from tiie Government. In regard to this a misapprehension 
 prevails among the uninformed, who consider it a proposition for the Government to 
 " foster monopolies." 
 
 Now, there is a great difference between granting a subsidy and fostering a mo- 
 nopoly. In the latter case, the sole power and permission to deal with a certain 
 place or in a certain article is granted, while the case of a subsidy is simply an assist- 
 since to an enterprise from which a return is expected, and such subsidies as I have 
 advocated should not be confined to any particular line of steamers, but should bo 
 given to all ship-owners who are willing to make their ships conform, in a prescribed 
 degree, to the re(iuirements of a vessel of war, said ships to be constructed under the 
 supervision of the Secretary of the Navy. 
 
 This is what other commercial nations do, and it is only justice to the Navy and 
 the country that we should pursue a course that will double or treble the number of 
 our cruisers in time of war. One way of granting a subsidy would be to enact the 
 " tonnage bill" several times brought before Congress, This bill iirovides that 30 
 cents per ton shall be allowed every vessel propelled by sail or steam and built and 
 owned in the United States and trading with foreign countries, for every thousand 
 miles sailed or steamed, the contract to hold good for a term of years, with such re- 
 strictions regarding the vessels as the Government shall impose. 
 
 A TONNAGE BILL THE SIMPLEST PLAN. 
 
 This would be the simplest plan for resurrecting the mercantile marine, and the 
 Government would have at its disposal a class of vessels little inferior to the regular 
 cruising ships of war. In fact, the chances are the steam merchant vessels would be 
 superior in speed, which would be the chief desideratum with commerce destroyers. 
 By a proper subsidy, such as I have indicated, many industries would be assisted, 
 those of iron and steel, coal mining, ship-yards, canvas, boat-building, hardware, 
 glass-making, pottery, furniture^ painters, engine-builders; in short, a hundred dif- 
 ferent branches of trade which combine to make a complete vessel, industries that 
 are now languishing for want of this very stimulus which they would enjoy but for 
 the lack of forethought in those who should labor to advance every employment in 
 which our citizens are engaged. 
 
 It is not so much tho building proper of American steam-ships that makes them cost 
 more than vessels constructed abroad as it is the expense of fitting them out, for 
 there is not sufficient competition in this country to bring that kind of work down to 
 the standard of foreign countries where labor is so much cheaper. Ships built in 
 Great Britain cost 10 percent. loss, but ■when the better finish of American ships and
 
 THE UNITED STATES AND LATIN AMERICA. 235 
 
 the snperiority of our iron are cousidered, the statements that it would be better for 
 us to build ships on the Clyde or Mersey are seen to be fallacious. 
 
 THE QUESTION OF FREE SHIPS. 
 
 With all these facta staring our legislators in the face, they should not hesitate a 
 moment between the proposition to abolish the shipping laws so that vessels conld 
 be built abroad for us by British mechanics, and that to foster the industries of our 
 own country and have our own ocean steamers constructed in the United States under 
 the supervision of naval officers, so that the Government would have vessels of suit- 
 able character to perform the service required of them as commerce destroyers in time 
 of war. 
 
 This argument doubtless conflicts with the theories of the free-traders of Great Brit- 
 ain and the United States, who require that England shall do all our carrying trade 
 aud reap the profits; but, leaving sentimentality out of the question, we will get 
 better ships built in our own country, although the first cost may be rather more, aud 
 we shall have the satisfaction of liuowing that the vessels can, if necessary, be Tised 
 for naval purposes. That is what advocates for increasing our naval resources aim 
 at iu supporting the subsidy measure, for we see how little disposition there has been 
 in this country to build up a navy adequate to its wants and dignity ; but the officers 
 of the Navy hope to see some plan adopted without delay, by which, in the event of 
 war, they can afford the necessary protection to our own commerce and inflict damage 
 on that of the enemy. 
 
 There is a growing feeling in the country with regard to the neglect which has been 
 manifested in building up our ocean mercantile marine, and it is to be hoped that 
 this feeling will spread until the thousands of unemployed workmen have a chance to 
 earn good wages aud the American ocean steamers have a fair share of the $150,000,000 
 annually paid to foreigners for carrying our goods. 
 
 WHAT WE HAVE PAID FOREIGN SHIP-OWNERS. 
 
 In the last eight years no less than one billion two' hundred millions of dollars have 
 been paid to foreign steam-ships, a sum almost equal to our national debt, and a bur- 
 den that is only made tolerable owing to the immense resources of our country. We 
 should be still further depleted but for the fact that we are sustained by the tariff on 
 foreign merchandise and the protection of our manufactures, which prevents us from 
 being undersold by foreigners and enables us to give employment to our working 
 people, so that with all our drawbacks we grow rich. 
 
 It would be hardlj' fair to accuse the American people of a want of energy for fail- 
 ing to revive their ocean commerce when they are exhibiting so much of this quality 
 in other directions in developing the resources of the country. It seems to be a law 
 of nature that decadence shall overtake every nation in the course of time, but there 
 is no instance on record of a nation giving up her position in the race for supremacy 
 without a struggle to retrieve herself. The decadence which has afflicted our ocean 
 carrying trade is not for want of energy on the part of our people, or for the want of 
 ^aws, but perhaps from a plethora of both which has hampered those who would have 
 labored for its revival. 
 
 While our present illiberal policy is pursued we stand no chance of ever becomiug 
 anything more than a fifth-rate power upon the ocean. If we go on at the present 
 rate our country will lose much of the strength which it owes to the cohesion of its 
 individual atoms, and, like a soulless machine working on at random, it will meet 
 the fate of many other nations that have flourished for a time and then fallen by 
 their own weight. 
 
 THE NEED OF A MERCANTILE NAVY. 
 
 Laying aside all arguments in favor of a x^ercantile marine, it is necessary for the 
 assistance of the Navy in time of war. Wo need additional and enlarged markets for 
 ouv surplus products, but foreign vessels with their subsidies are fast closing all tho
 
 236 TRADE AN£> TPtANSPORTATIOJi BETWEEN 
 
 channels of trade against U8, and our manufacturers, -who would otherwise heir to 
 supply the world, are shut off by British rivals. British steam-ships have taken pos- 
 session of all the routes of trade, fostered by the British Government and protected 
 by British guns. This is creditable to the British Government, which looks out for 
 the interests of Englishmen all the world over, and it would seem as if the parent 
 stock of the English-speaking race had more energy than their transatlantic offspring, 
 for their steam mercantile marine not only monopolizes the foreign trade of the 
 United States, but encircles the earth, for there is not a port in the world where there 
 is a chance of finding a market for manufactured articles that a British steam-ship 
 does not penetrate. 
 
 All that is left to us in the way of foreign commerce are the gleanings in the by- 
 ways of trade, about which our great rivals give themselves little concern, and a few 
 second-rate vessels may now and then be encountered trying to make a living under 
 our flag, struggling along like the crows at Pensacola, which have to go to sea to get 
 something to eat. That kind of commerce is of little benefit to a nation. It is nec- 
 essary to move on the great thoroughfares of the ocean to have an extensive trade, 
 and Great Britain, in recognition of this fact, pays her steam lines liberal subsidies. 
 
 SHIP-BUILDING A PLAIN MATTER OF BUSINESS. 
 
 What would ten millions a year be to this country if given by Congress to help 
 build up our commercial marine? It would more than return the equivalent in the 
 shape of customs dues. It would more than pay if we could retain in the United 
 States twenty out of the one hundred and fifty millions which are yearly carried out 
 of the country for freights without benefits to our citizens. Why should not Amer- 
 ican commerce be allowed the same opportunities that are afforded the other indus- 
 tries of the country, which have reached a development such as the most far-seeing 
 never dreamed of? We are not tied down by foreign subsidized competitors on land, 
 and therefore our progress has been marvelous, and so it would be upon the ocean if 
 the bonds were once cut which confine our ship-builders. 
 
 ENTERPRISE OF THE FRENCH REPUBLIC. 
 
 We will take, for instance, the French merchant steam-ships of over 8,000 tons, 
 which of late years have become a feature of transatlantic travel. These vessels were 
 encouraged by their Government as a set-off to the British steam-strips, which it was 
 seen could be turned into vessels of war at short notice in case of hostilities with 
 France, just as on the late occasion the Russians, when threatened with a war with 
 England, fitted up several large steamers in this country as commerce destroyers. 
 France pays to these steamers |14,000 for every round trip between Havre and New 
 York. What chance could an American line have against such a competition as that, 
 receiving no assistance from the Government, and probably not being paid to carry 
 the mails, which the foreigners would carry for nothing rather than an American ship 
 should receive aid from the Government ? Even giving us "free ships and free ma- 
 terials " would not surmount the difficulty. 
 
 After all, the amount required to subsidize a line of steamers is not so very great. 
 Suppose the United States started to subsidize forty ocean steamers the size of those 
 that cross the Atlantic. Putting the vessels at 8,000 tons each, and allowing 30 cents 
 per ton for every 1,000 miles traveled, the expense would bo $2,400 per 1,000 miles for 
 the 3,000 miles, or $7,200 for the voyage, return trip the same, or $14,400 for the 
 round trip. Assuming eight round trips a year would give $115,200 annually for each 
 steamer, or for the whole forty vessels $4,008,000 for a grand fleet of ships worthy of 
 this Repul)lic, any two of which would bo worth more in time of war than all the 
 cruisers wo have at present in the Navy. 
 
 Yet, $4,.')00,000 is no great anioimt for a nation to pay that has so many millions 
 locked up in her Treasury doing no good, while every legitimate opportunity should 
 be taken to enlarge the avenues of trade by land and sea in order that our country 
 may fnllill the grand destiny marked out for it.
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 237 
 
 Appendix A to Part IL 
 
 TRANSPORTATION FACILITIES IN 1888. 
 
 Statement shoicing the ntnnifr and tonnage of American and foreign sailing and steam 
 vessels entered and cleared in the foreign trade at the principal and all other customs dis- 
 tricts from and for each island in the West Indies, from and for Mexico, and from and 
 for each country in Central and South America during the year ending June 30, 1888. 
 
 Conntries and islands. 
 
 Nationality and 
 motive power. 
 
 Customs districts. 
 
 Entered. 
 
 Cleared. 
 
 THE WE6T INDIES. 
 
 Brituh •• 
 
 American sail 
 
 Foreign sail 
 
 Foreign steam — 
 
 American sail — 
 
 American steam.. 
 Foreign sail.. 
 
 Foreign steam — 
 American sail 
 
 Now York 
 
 No. 
 13 
 
 1 
 
 T071S. 
 
 4,577 
 328 
 398 
 
 No. 
 7 
 
 1 
 3 
 
 1 
 
 Tone. 
 1,918 
 
 
 
 485 
 
 
 All other Atlantic. .. 
 All other Gulf 
 
 983 
 75 
 
 
 Total American.. 
 
 
 
 
 
 16 
 
 5,303 
 
 12 
 
 3,461 
 
 
 
 
 1 
 6 
 
 231 
 
 
 
 6 
 
 1 
 1 
 1 
 
 1,679 
 338 
 509 
 882 
 
 1,761 
 
 
 Philadelphia 
 
 All other Atlantic. . . 
 
 
 
 2 
 
 1 
 
 540 
 987 
 
 
 Total foreign 
 
 Total Antigua 
 
 
 
 9 
 
 3,408 
 
 10 
 
 3,519 
 
 
 25 
 
 8,711 
 
 22 
 
 6,989 
 
 
 3 
 19 
 
 6 
 69 
 
 1 
 26 
 
 1 
 7 
 2 
 
 235 
 3,309 
 
 714 
 4,922 
 
 607 
 3,515 
 
 264 
 11, 806 
 
 355 
 
 3 
 15 
 
 6 
 59 
 
 529 
 
 
 
 3,198 
 
 
 
 535 
 
 
 
 4,401 
 
 
 
 
 
 All other Atlantic... 
 All other Gulf 
 
 29 
 5 
 
 1 
 
 3,252 
 
 193 
 
 1,696 
 
 
 All other Atlantic. . . 
 Total American . . 
 
 
 
 
 
 
 134 
 
 25, 727 
 
 117 
 
 13,804 
 
 
 23 
 
 24 
 
 5 
 
 12 
 
 26 
 
 44 
 
 3 
 
 1 
 
 15, 053 
 5,194 
 2,222 
 978 
 2,373 
 3,023 
 3,145 
 1,131 
 
 
 
 
 
 23 
 
 3 
 
 7 
 
 25 
 
 45 
 
 4,094 
 
 
 
 164 
 
 
 
 502 
 
 
 All other Atlantic 
 
 All other Gulf 
 
 2,461 
 2,899 
 
 
 
 
 
 
 
 1 
 
 72 
 
 
 Total foreign 
 
 Total Bahama Isl- 
 
 
 
 
 
 138 
 
 33, 119 
 
 104 
 
 10, 252 
 
 
 272 
 
 58,846 
 
 221 
 
 24,058 
 
 
 Portland 
 
 
 
 1 
 6 
 40 
 4 
 3 
 6 
 
 457 
 3,292 
 9,825 
 2,007 
 1,213 
 2,407 
 
 3 
 11 
 51 
 
 6 
 11 
 
 1 
 
 1,149 
 
 
 
 4,411 
 
 
 
 14, 317 
 
 
 
 2,880 
 
 
 All other Atlantic 
 
 All other Gulf 
 
 Total American. . . 
 
 177 
 348 
 
 
 58 
 
 19, 201 
 
 83 
 
 
 
 27, 282
 
 THADE AND TRANSPORTATION BETWEEN 
 
 nuwu.q the number and tonnage of American and fot-eign Si 
 vessels entered and cleared in the foreign trade, e/c— Continued. 
 
 238 
 
 State^nent shoiving the number and tonnage of American and fo,^eig_nsailmg and stmm 
 
 - . , , Nationality and 
 
 Coantnes and islands. motive power. 
 
 THK WEST INDIES— con- 
 tinued. 
 Bn7i«/i— Continued. 
 Barbadoes— Cont'd . 
 
 Bermuda 
 
 Dominica . 
 
 Governor's Harbor 
 Grand Cayman 
 
 Green Turtle Cay 
 
 Foreign sail. 
 
 Foreign steam . . . 
 
 American sail. 
 
 American steam . 
 
 Foreign sail. 
 
 Foreign sail 
 
 Harbor liland Foreign sail 
 
 Foreign sail 
 
 Customs districts. 
 
 Portland 
 
 Boston 
 
 New York 
 
 I'hiladilpbia 
 
 New Orleans 
 
 Galveston 
 
 A II other Atlantic. 
 
 All other Gulf 
 
 New York 
 
 Philadelphia 
 
 Now Orleans 
 
 All other Atlantic. 
 
 Entered. 
 
 Cleared. 
 
 No. 
 13 
 
 Tons. 
 6,009 
 
 Totiil foreign 
 
 Total Barbadoes. 
 
 220 
 
 Foreign steam 
 
 American sail . 
 
 Foreign sail... 
 
 Foreign sail . . 
 American sale 
 
 Boston 
 
 New York 
 
 All other Atlantic. 
 
 New York 
 
 Philadelphia 
 
 Total American 
 
 Portland 
 
 Boston 
 
 New York 
 
 Baltimore 
 
 All other Atlantic. 
 
 New Ycrk.. 
 
 All other Atlantic. 
 
 Total foreign . . 
 Total Bermuda 
 
 New York 
 
 All other Atlantic. 
 
 Total American 
 
 New York 
 
 Total Dominica. . 
 All other Gulf 
 
 18 
 
 8,212 
 
 14 
 
 8,548 
 
 8 
 
 8, 882 
 
 7 
 
 3,731 
 
 47 
 
 23, 584 
 
 47 
 
 35, 542 
 
 1 
 
 676 
 
 3 
 
 2,703 
 
 1 
 
 1, W5 
 
 3 
 
 2,014 
 
 101, 346 
 
 No. 
 
 18 
 
 Tons. 
 
 68 
 
 2,888 
 
 626 
 
 478 
 
 4,060 
 
 120, 547 101 
 
 170 
 
 260 
 
 2,409 
 
 55 
 
 57 
 
 68 
 
 Boston 
 
 New York 
 
 Baltimore 
 
 All other Atlantic. . 
 AU other Gulf 
 
 Total American 
 
 New York 
 
 Philadelphia 
 
 New Orleans 
 
 All other Atlantic. 
 
 Total foreign 
 
 Total Grand Cay- 
 man 
 
 2,894 
 
 444 
 150 
 911 
 239 
 
 2,750 
 44,646 
 
 3,338 
 
 31,342 
 
 15 
 
 52, 478 
 
 55, 372 
 
 380 
 105 
 
 399 
 '884 
 
 All other Atlantic . . 
 All other Gulf 
 
 Total Green Tur- 
 tle Cay 
 
 Baltimore 
 
 All other Atlantic. 
 
 Total Harbor Isl- 
 and 
 
 12 
 
 594 
 286 
 374 
 449 
 351 
 
 348 
 
 1, 942 
 
 1,677 
 
 98 
 
 55 
 
 4,120 
 442 
 
 415 
 
 239 
 
 1,230 
 
 48,704 
 
 2,054 
 
 347 
 1,005 
 
 344 
 
 1,606 
 
 3,750 
 
 51, 030 
 
 55, 150 
 
 131 
 
 125 
 
 138 
 
 141 
 
 87 
 
 228 
 
 186 
 
 186 
 
 366 
 
 757 
 169 
 
 926 
 
 168 
 189 
 
 367
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 239 
 
 Statement shviciiKj the number and tonnage of American and foreign sailing ani steam 
 vessels entered and cleared in the foreign trade, etc. — Continued. 
 
 Countries and islands. 
 
 Nationality and 
 nioti%'o power. 
 
 Customs districts. 
 
 Entered. 
 
 Cleared. 
 
 THE WEST INDIES— con- 
 tinued. 
 
 British— Continued. 
 
 Jamacia — Continued. 
 
 American sail 
 
 American steam . . 
 
 Foreign sail 
 
 Foreign steam 
 
 American sail 
 
 American sail 
 
 Foreign sail 
 
 Foreign sail 
 
 American sail 
 
 Foreign sail 
 
 Foreign steam 
 
 American sail — 
 
 Foreign sail 
 
 Foreign steam 
 
 American sail 
 
 1 
 
 
 Ko. 
 
 Tons. 
 
 No. 
 3 
 3 
 17 
 
 Ions. 
 963 
 
 
 7 
 13 
 13 
 1 
 
 19 
 4 
 
 5 
 
 2,824 
 3,535 
 4,714 
 153 
 5,428 
 1, 532 
 3,552 
 1,445 
 
 1 347 
 
 
 
 4,941 
 
 
 I'liiladelphia 
 
 
 
 I'altimoro 
 
 
 
 
 A U (illier Atlantic . . . 
 All otlier Gulf 
 
 22 
 1 
 7 
 2 
 4 
 
 4,593 
 
 366 
 
 4 144 
 
 
 
 538 
 
 
 
 938 
 
 
 Total American . . 
 Boston 
 
 
 
 
 
 68 
 
 23, 183 
 
 59 
 
 17, 830 
 
 
 5 
 
 17 
 
 3 
 
 16 
 
 2 
 
 30 
 
 96 
 
 57 
 
 54 
 
 4 
 
 3 
 
 1 
 
 1,226 
 
 6,174 
 
 1,338 
 
 2,840 
 
 1,281 
 
 21, 932 
 
 55, 039 
 
 24,810 
 
 11, 088 
 
 4,136 
 
 1,275 
 
 873 
 
 1 
 
 8 
 
 278 
 
 
 New Torlc 
 
 2 043 
 
 
 Philadelphia 
 
 
 
 Another Atlantic... 
 All other Gulf 
 
 6 
 
 585 
 
 
 11 
 84 
 56 
 
 47 
 
 4 676 
 
 
 
 39, 723 
 
 25, 041 
 
 8 599 
 
 
 
 
 
 
 New Orleans 
 
 All other Atlantic... 
 All other Gulf 
 
 Total foreign 
 
 Total Jamaica 
 
 Boston 
 
 
 
 5 
 
 1 
 
 2,198 
 498 
 
 
 288 
 
 132, 012 
 
 219 
 278 
 
 83, 641 
 
 
 356 
 
 155, 195 
 
 101,471 
 
 
 
 
 1 
 
 65 
 
 
 All other Atlantic. . . 
 All other Atlantic.. 
 
 
 
 
 Ragged Island 
 
 1 
 
 429 
 
 
 
 
 1 
 
 108 
 
 
 Total Eaggedls'd 
 All other Atlantic. . . 
 New York 
 
 
 
 
 
 1 
 
 429 
 
 1 
 
 108 
 
 
 2 
 
 836 
 
 1 
 
 418 
 
 
 
 
 
 
 1 
 2 
 
 259 
 
 
 All other Atlantic. .. 
 
 
 
 498 
 
 
 Total American .. 
 
 
 
 
 
 
 
 3 
 
 757 
 
 
 New York 
 
 
 
 
 
 3 
 3 
 1 
 1 
 1 
 5 
 1 
 
 1,248 
 1,034 
 
 580 
 1,035 
 
 999 
 6,989 
 1,300 
 
 
 
 
 All other Atlantic . . . 
 
 All other Gulf 
 
 Philadelphia 
 
 
 
 
 
 
 
 
 
 
 Baltimore 
 
 
 
 
 New Orleans 
 
 
 
 
 All other Atlantic . . . 
 
 Total foreign 
 
 Total Saint Lucia. 
 New York 
 
 1 
 
 676 
 
 
 15 
 15 
 
 13, 185 
 
 1 
 
 676 
 
 
 13, 185 
 
 4 
 
 1,433 
 
 Saint Kltts . . . 
 
 1 
 1 
 
 7 
 
 1 
 
 192 
 
 384 
 
 1,070 
 
 264 
 
 7 
 
 2,206 
 
 
 Philadelphia 
 
 
 All other Atlantic . . . 
 All other Gulf 
 
 Total American .. 
 
 1 
 
 263 
 
 
 
 
 
 10 
 
 2,010 
 
 8 
 
 2,169 
 
 
 1 
 3 
 
 1 
 
 293 
 807 
 298 
 
 
 
 
 
 2 
 
 61 1 
 
 
 Philadelphia 
 
 All other Atlantic . . . 
 
 
 
 2 
 8 
 
 361 
 
 
 New York 
 
 Total foreign 
 
 Total Saint Kitts . 
 Now York 
 
 8 
 
 7. 872 
 
 ',096 
 
 
 13 
 
 9,270 
 
 12 
 
 8,068 
 
 
 23 
 
 11, 280 
 
 20 
 
 10, 537 
 
 Saint Vincent 
 
 
 
 7 
 1 
 5 
 
 1 165 
 
 
 Baltimore 
 
 
 
 374 
 
 
 All other Atlantic 
 
 
 
 1,068 
 
 
 Total American . . 
 
 
 
 
 
 
 13 
 
 2,607 
 
 
 

 
 240 TRADE AND TRANSPORTATION liKTWEEN 
 
 Statement altowing the number and lonnage of American and foreign sailing and steam 
 vessels entered and cleared in the foreign trade, i<c.— Contiuneil. 
 
 Coantriea and island. 
 
 THE WE6T INDIES — COn- 
 
 tiimeil. 
 
 Bri(i«/i— Cr>utinned. 
 
 Saint Vincent— Con- 
 tiutied. 
 
 Trinidad. 
 
 Turk's Island 
 
 Danish : 
 
 Saint Croix 
 
 Saint Thomas 
 
 Nationality and 
 motive power. 
 
 Foreign sail . 
 
 Customs districts. 
 
 Now York 
 
 All otlier Atlantic . 
 All other Gulf 
 
 Entered. 
 
 Cleared. 
 
 A^o. 
 
 Total foreign 
 
 Total Saint Vin- 
 cent 
 
 American sail 
 
 Foreign sail 
 
 Boston 
 
 New York 
 
 Philadelphia 
 
 Baltimore 
 
 Now Orleans 
 
 Another Atlantic. 
 All other Gulf 
 
 long. 
 2,096 
 
 1,050 
 
 3, 14G 
 
 Total American. . 
 
 Foreign steam.. 
 
 American sail . . 
 
 Boston 
 
 New York 
 
 Philadelphia 
 
 New Orleans 
 
 All other Atlantic . 
 
 Another (iulf 
 
 Now York. 
 
 Philadelphia 
 
 New Orleans 
 
 Total foreign . . 
 Total Trinidad. 
 
 Foreign sail . . . 
 Foreign steam. 
 
 Americiin sail — 
 
 Foreign sail 
 
 Foreign steam... 
 
 American sail ... 
 American steam. 
 
 Portland 
 
 Boston 
 
 New York 
 
 Philadelphia 
 
 Baltimore 
 
 All other Atlantic . . 
 
 Total American . 
 
 3,146 
 
 No. 
 2 
 1 
 
 16 
 
 Tons. 
 
 334 
 186 
 
 sat 
 
 0, 972 
 7,391 
 1,464 
 2,541 
 3,314 
 2, 282 
 
 27,348 
 
 2,761 
 14,011 
 2,857 
 1,232 
 2, 600 
 4,061 
 25, 642 
 3,492 
 1,008 
 
 520 
 
 3,127 
 
 5,680 
 
 11,197 
 
 1,525 
 
 562 
 
 2,42« 
 1,790 
 
 64 
 
 23, 180 
 
 57,664 
 
 85,012 
 
 1, 105 
 7,560 
 2,675 
 2,177 
 1,907 
 2, 154 
 
 622 
 
 5,950 
 
 363 
 
 419 
 '22,''738 
 
 30, 092 
 
 105 
 
 63, 272 
 
 Boston 
 
 Now York 
 
 Philadt-lphia 
 
 All other Atlantic. . 
 Now York 
 
 Total foreign 
 
 Total Turk's Isl'd 
 
 Total British 
 'West Indies 
 
 New York 
 
 All other Atlantic. 
 
 Total American . . 
 
 New York 
 
 Philadelphia 
 
 All other Atlantic 
 Now York 
 
 17, 578 
 
 2,677 
 438 
 
 851 
 1,019 
 
 1,228 
 
 539,942 
 
 Total foreign . . 
 Total Saint Croix. 
 
 Boston 
 
 Now York 
 
 Philadelphia 
 
 All other Atlantic. 
 
 AU other Gulf. 
 
 All other Atlantic. 
 
 Total American . . 
 
 14 
 
 2,525 
 l,ll5 
 
 3,640 
 
 1,809 
 849 
 
 354 
 
 2,877 
 
 417 
 2,545 
 1,361 
 1,145 
 
 5,468 
 
 4 
 16 
 
 876 
 
 179 
 757 
 
 1,622 
 ^,090 
 
 296,954 
 
 1,964 
 
 1,964 
 
 2,252 
 
 5,889 
 
 9, 529 
 
 1,172 
 
 3, 437 
 
 1,019 
 
 47'. 
 
 6,705 
 
 113 
 4, 233 
 
 6.598 
 
 8,562 
 
 2,290 
 2,560 
 
 2, 702 
 4,212 
 
 27 
 
 11,764
 
 THE UNITED STATES AND LATIN' AMERICA. 
 
 241 
 
 statement showing the number and tonnage of American and foreign sailing and steam 
 vessels entered and cleared in the foreign trade, etc. — Continued. 
 
 Coantries and islands. 
 
 Nationality and 
 motive power. 
 
 Customs districts. 
 
 Entered. 
 
 Cleared. 
 
 THE WK8T INDIES— con- 
 tinned. 
 
 DonwA— Continued. 
 
 Saint Thomas 
 
 Foreign sail 
 
 Foreign steam — 
 
 American sail 
 
 Foreign sail 
 
 American .sail 
 
 American steam.. 
 
 Foreign sail 
 
 American sail 
 
 Foreign sail 
 
 American sail — 
 
 Foreign sail 
 
 Foreign steam 
 
 American sail 
 
 
 No. 
 
 1 
 2 
 
 long. 
 299 
 1,007 
 
 JVo. 
 
 Tont. 
 
 
 5 
 8 
 
 1,246 
 
 
 Pliiladelphia 
 
 5,405 
 
 
 
 2 
 19 
 8 
 
 1,004 
 8,386 
 5,466 
 
 
 
 All other Atlantic .. 
 AH other Gulf 
 
 3 
 
 949 
 
 
 
 
 5,698 
 
 
 
 1 
 4 
 1 
 
 1, 403 
 
 4,814 
 
 498 
 
 
 All other Atlantic. . . 
 All other Gulf 
 
 Total foreign 
 
 Total St. Thomas: 
 
 Total Danish 
 West Indies 
 
 
 
 
 
 
 
 
 
 
 38 
 
 22, 877 
 
 22 
 
 13, 298 
 
 ' 
 
 54 
 
 29. 582 
 
 49 
 
 25,062 
 
 
 81 
 
 39, 111 
 
 73 
 
 33.624 
 
 Dutch : 
 
 2 
 3 
 
 923 
 
 687 
 
 
 
 
 All other Atlantic. . . 
 
 Total American . . 
 All «ther Atlantic. . . 
 
 Total Bonaire 
 
 AH other Atlantic... 
 
 All other Gulf 
 
 New York 
 
 Total American . . 
 
 New York 
 
 
 
 
 
 
 
 5 
 
 1,610 
 
 
 
 
 
 
 
 1 
 
 249 
 
 
 
 
 
 
 
 6 
 
 1,859 
 
 
 
 
 
 
 
 1 
 1 
 18 
 
 477 
 
 362 
 
 23, 053 
 
 9 
 
 2.531 
 
 
 
 
 
 
 
 
 
 
 20 
 
 23,692 
 
 9 
 
 2.531 
 
 
 7 
 3 
 
 3,251 
 1,403 
 
 11 
 3 
 
 3.772 
 
 
 All other Atlantic. . . 
 
 Total foreign 
 
 Total Curacoa — 
 
 1,022 
 
 
 10 
 
 4,654 
 
 14 
 
 4,794 
 
 
 30 
 
 28, 546 
 
 23 
 
 7,325 
 
 Si. l/TArtin^fi 
 
 5 
 
 1 
 
 1,791 
 421 
 
 
 
 
 
 
 
 
 Total American .. 
 
 
 
 
 6 
 
 2,212 
 
 
 
 
 
 
 
 3 
 
 7 
 
 1,008 
 1,823 
 
 ""h 
 
 
 
 New York 
 
 Total foreign 
 
 Total St. Martin's. 
 Total Dutch "West 
 
 936 
 
 
 10 
 
 2,831 
 
 6 
 
 936 
 
 
 16 
 
 5,043 
 
 6 
 
 9.'i6 
 
 
 52 
 
 35,448 
 
 29 
 
 8,261 
 
 
 New York 
 
 
 French .- 
 
 11 
 1 
 2 
 
 1,935 
 485 
 516 
 
 40 
 
 1 
 8 
 
 7,720 
 
 
 485 
 
 
 All oth»r. Atlantic. . . 
 Total American... 
 
 2,574 
 
 
 14 
 
 2,936 
 
 49 
 
 10, 779 
 
 
 
 
 8 
 
 1,874 
 
 
 All other Atlantic. .. 
 
 1 
 
 678 
 
 
 
 2 
 
 1,663 
 
 
 Total foreign 
 
 Total Guadeloupe . 
 
 
 
 
 
 1 
 
 67H 
 
 10 
 
 3,537 
 
 
 15 
 
 3.614 
 
 59 
 
 14, 316 
 
 
 
 
 14 
 
 17 
 
 20 
 
 1 
 
 6,003 
 
 
 
 7 
 5 
 
 2 
 
 1,316 
 
 1,662 
 
 758 
 
 .5, 141 
 
 
 All other Atlantic... 
 Another Gulf 
 
 Total American . . 
 
 6.551 
 330 
 
 
 14 
 
 3,736 
 
 52 
 
 18,026 
 
 S. Ex. 54- 
 
 -16
 
 242 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 Statement showing the number and tonnaije of American and foreign sailing aud steam 
 vessels entered and cleared in the foreign trade, t/c— Coutiuued. 
 
 Countries and islands. 
 
 Nationality and 
 motive power. 
 
 Customs districts. 
 
 Entered. 
 
 Cleared. 
 
 THE WEST INUIKS— con- 
 tinued. 
 
 Frewcft— Continued. 
 
 Maitiuique — Cont'd. 
 
 Foreign sail 
 
 Foreign steam 
 
 American sail 
 
 American steam.. 
 
 Foreign sail 
 
 Foreign steam — 
 
 American .sail 
 
 American steam.. 
 
 Foreign sail 
 
 Foreign steam 
 
 American sail 
 
 AiiirriiMii sti'Miii.. 
 
 
 No. 
 
 Tung. 
 
 No. 
 1 
 2 
 9 
 6 
 
 Tons. 
 249 
 
 
 
 
 4:13 
 
 
 
 1 
 11 
 2 
 
 690 
 
 5,048 
 
 687 
 
 2,663 
 
 
 All other Atlantic .. 
 2VII other Gulf 
 
 1,522 
 
 
 1 
 7 
 
 835 
 
 
 Philadelphia 
 
 
 
 8,607 
 
 
 
 1 
 2 
 
 1 
 1 
 
 1,480 
 2,815 
 1,345 
 1,109 
 
 
 
 
 
 
 Galveston 
 
 All other Atlantic . . . 
 
 Total foreign 
 
 Total Martinique. 
 
 Total French 
 West Indies 
 
 ...... 
 
 278 
 
 
 19 
 
 13, 374 
 
 27 
 
 14, .'■.87 
 
 
 33 
 
 17,110 
 
 79 
 
 32,612 
 
 
 48 
 
 20, 724 
 
 138 
 
 46, 9-.'8 
 
 
 28 
 
 CO 
 
 9 
 
 4 
 
 7,184 
 
 13, 922 
 
 2,410 
 
 1,001 
 
 10 
 46 
 
 2,514 
 
 
 New York 
 
 Philadelphia 
 
 All other Atlantic... 
 All otlicr Gulf ... . 
 
 9,480 
 
 
 20 
 1 
 
 "21' 
 
 5, 2-.7 
 324 
 
 
 IJo.ston 
 
 8 
 10 
 
 6,240 
 12, 588 
 
 
 
 
 21, 1-6 
 
 
 Total American. . . 
 
 
 
 120 
 
 43, 405 
 
 104 
 
 38, 701 
 
 
 17 
 19 
 3 
 3 
 6 
 34 
 1 
 
 4,741 
 
 4,615 
 
 681 
 
 835 
 
 3, GOO 
 
 31,476 
 
 627 
 
 9 
 
 18 
 
 2, 580 
 
 
 Nov.- York 
 
 4,787 
 
 
 Phii.i.k-lphia 
 
 .\.ll other Atlantic ... 
 
 
 
 3 
 
 708 
 
 
 New York 
 
 Phihidelphia 
 
 53 
 
 1 
 1 
 
 49,316 
 
 1,018 
 
 120 
 
 
 Total foreign 
 
 Total nayti 
 
 
 
 
 
 83 
 
 46, 575 
 
 85 
 
 58, 669 
 
 
 203 
 
 89,980 
 
 189 
 
 97, 370 
 
 
 3 
 
 2;( 
 c 
 
 760 
 
 5, 227 
 
 038 
 
 5, 300 
 
 1 
 9 
 3 
 2 
 
 313 
 
 
 New York 
 
 All otlicr Atlantic. .. 
 New York 
 
 Total American... 
 
 Bo.ston 
 
 2,029 
 758 
 
 i,5;;2 
 
 
 34 
 
 11, 9L'5 
 
 348 
 5,935 
 
 15 
 
 4,032 
 
 
 2 
 25 
 
 ""\2 
 1 
 
 1 
 1 
 3 
 
 "" 2,6 5 
 
 
 
 379 
 
 
 All other Atlantic .. 
 
 1 
 
 178 
 
 178 
 3?0 
 
 
 
 i 
 
 1,715 
 743 
 
 1,006 
 
 
 All other Atlantic. . . 
 
 Total foreign 
 
 Tot al Sau Doniiii go 
 Porthmd 
 
 
 
 
 
 
 34 
 
 8,919 
 
 18 
 
 4,608 
 
 Spanuh : 
 
 Cuba 
 
 68 
 
 20, 844 
 
 33 
 
 9,240 
 
 12 
 
 82 
 
 222 
 
 219 
 
 3 
 
 5, 858 
 
 40, 789 
 
 98, 314 
 
 101, 232 
 
 823 
 
 18 
 48 
 140 
 108 
 23 
 3 
 59 
 66 
 
 "m 
 
 1 
 
 8,363 
 23, 3S3 
 
 
 
 03, 357 
 
 
 Philadelphia 
 
 7!t, L'!)7 
 12 103 
 
 
 
 1,040 
 
 
 All other Atlantic... 
 All other Gulf 
 
 IlllHtOIl 
 
 31 
 43 
 
 1 
 92 
 
 1 
 
 6,073 
 8,879 
 
 318 
 
 151, 891 
 
 2, 308 
 
 910 
 
 20, 1(15 
 17, 093 
 
 
 Now Yorlc 
 
 143 355 
 
 
 Phihidelphia 
 
 New Orleans .. 
 
 1,415 
 
 
 1 
 
 3 
 
 165 
 
 2, 237 
 
 
 
 
 
 1,870 
 
 
 All other Gulf 
 
 Total American . . . 
 
 165 
 
 113,181 
 
 112,986 
 
 
 873 
 
 531, 206 
 
 781 
 
 487, 239
 
 THE UNITED .STATES AND EATIN AMERICA. 
 
 243 
 
 Statement showituj the viimher and tonnaye of American and foreign sailing and steam 
 veaaela entered and cleared in the foreign trade, etc. — Continued. 
 
 Conntries and islands. 
 
 Nationality and 
 motive powor. 
 
 Customs districts. 
 
 Entered. 
 
 Cleared. 
 
 WEST INDIES — continued. 
 Spanish — Continned. 
 
 Foreign sail 
 
 Foreign steam 
 
 American sail 
 
 American steam.. 
 
 Foreign saU 
 
 Foreign steam 
 
 American sail 
 
 American steam . . 
 
 Foreign sail 
 
 Foreign sail 
 
 
 No. 
 29 
 71 
 29 
 
 Tong. 
 10, 788 
 34, 787 
 13, 195 
 
 No. 
 
 7 
 
 12 
 
 11 
 
 4 
 
 1 
 
 6 
 
 11 
 
 43 
 
 144 
 
 41 
 
 15 
 
 Tong. 
 3 104 
 
 
 
 4,218 
 4 010 
 
 
 
 
 
 1 842 
 
 
 
 22 
 
 37 
 15 
 73 
 186 
 70 
 
 9 
 13 
 
 4 
 13 
 
 2 
 
 14, 840 
 13, 951 
 6,675 
 47, .543 
 147, 481 
 81,842 
 10, 095 
 
 19, 808 
 4,263 
 
 20, 484 
 1,940 
 
 1 423 
 
 
 All other Atlantic ... 
 Another Gulf 
 
 2,071 
 2,060 
 17,431 
 98, 437 
 48, 061 
 16, 073 
 
 
 
 
 Philadelphia 
 
 Baltimore 
 
 
 
 4 
 
 7 
 1 
 
 5 156 
 
 
 All otber Atlantic . . . 
 AU other Gulf 
 
 Total foreign 
 
 Total Cuba 
 
 Portland 
 
 6,53t 
 1,000 
 
 
 573 
 
 427, 692 
 
 307 
 
 211,450 
 
 
 1,446 
 
 958, 898 
 
 1,088 
 
 698, 689 
 
 Porto Kico 
 
 8 
 40 
 45 
 12 
 
 2,388 
 13, 204 
 10,606 
 
 4,328 
 
 9 
 2 
 
 52 
 1 
 2 
 
 13 
 2 
 
 2,580 
 
 
 646 
 
 
 New York 
 
 14, 513 
 
 
 Philadelphia.... 
 
 500 
 
 
 Baltimore 
 
 849 
 
 
 All other Atlantic . . 
 
 AU other Gulf 
 
 Portland 
 
 10 
 2 
 1 
 
 1 
 
 2,475 
 820 
 863 
 863 
 
 4,186 
 667 
 
 
 
 
 
 
 2 
 
 1,726 
 
 
 Total American.. 
 Portland 
 
 
 
 
 
 119 
 
 35, 547 
 
 83 
 
 25, 667 
 
 
 10 
 
 43 
 
 10 
 
 2 
 
 10 
 
 12 
 
 17 
 
 6 
 
 1 
 
 2 
 
 2,421 
 
 9,318 
 
 2,521 
 
 645 
 
 2,307 
 
 10, 453 
 
 15,092 
 
 4,494 
 
 1,167 
 
 1,610 
 
 2 
 
 1 
 8 
 1 
 7 
 1 
 25 
 
 345 
 
 
 
 178 
 
 
 
 1,725 
 
 
 
 293 
 
 
 All other Atlantic... 
 
 2,401 
 1,000 
 
 
 New York 
 
 19, 005 
 
 
 
 
 Baltimore 
 
 
 
 
 All other Atlantic. . 
 
 Total foreign 
 
 Total Porto Eico.. 
 
 Total Spanish 
 West Indies ... 
 
 Total West Indies. 
 
 
 
 
 
 
 
 112 
 
 50, 028 
 
 45 
 
 24, 947 
 
 
 231 
 
 85, 575 
 
 128 
 
 50, 614 
 
 
 1,948 
 
 1, 155, 297 
 
 1,438 
 
 855, 913 
 
 MEXICO, CENTRAL AND 
 SOUTH AMERICA ON THE 
 ATLANTIC. 
 
 3,357 
 
 1, 790, 522 
 
 2,554 
 
 1, 241, 680 
 
 2 
 50 
 
 1 
 22 
 
 3 
 
 773 
 
 16, 849 
 
 200 
 
 3,033 
 
 124 
 
 2 
 22 
 
 533 
 
 
 New York 
 
 7,523 
 
 
 
 
 New Orleans 
 
 13 
 
 8 
 
 7 
 
 69 
 
 38 
 
 2, 229 
 
 
 Galveston 
 
 All other Atlantic 
 
 2,224 
 1,913 
 
 
 All other Gulf 
 
 46 
 
 27 
 
 1 
 
 11 
 
 6,806 
 
 36, 989 
 
 537 
 
 8,448 
 
 9, 124 
 52, 88» 
 
 
 
 
 
 
 12 
 1 
 
 1 
 
 8,985 
 1,470 
 
 
 All other Atlantic... 
 
 
 Another Gulf 
 
 Total American . . 
 
 1 
 
 99 
 
 99 
 
 
 164 
 
 73, 858 
 
 163 
 
 86,979 
 
 
 1 
 18 
 
 1 
 10 
 
 4 
 
 446 
 6,817 
 
 233 
 1,884 
 1,204 
 
 
 
 
 
 11 
 
 2,902 
 
 
 
 
 New Orleans 
 
 9 
 
 1,411 
 
 
 
 1 
 5 
 
 284 
 
 
 All other Gulf 
 
 14 
 
 7,371 
 
 1,402
 
 244 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 Stalewent shouing the nimhir and tonnage of American and foreign miling and steam 
 resseh entered and cleared in the foreign trade, efc— Continued. 
 
 Countries and islands. 
 
 Nationality and 
 motive power. 
 
 Customs districts. 
 
 Entered. 
 
 Cleared. 
 
 MEXICO, ETC.— continued. 
 
 Mexico on the Gulf — 
 Continued. 
 
 Foreign steam 
 
 American sail 
 
 American steam.. 
 
 Foreign sail 
 
 Foreign steam — 
 
 American steam.. 
 Foreign steam . . . 
 
 American sail 
 
 American steam.. 
 
 Foreign sail 
 
 Foreign steam 
 
 Araericim sail 
 
 American steam. 
 
 Foreign sail 
 
 Foreign steam . . . 
 
 American sail 
 
 American steam . 
 
 
 No. 
 
 1 
 
 31 
 
 2 
 
 Tout. 
 
 9G6 
 
 27,287 
 
 2,073 
 
 No. 
 
 Tons. 
 
 
 18 
 1 
 1 
 5 
 
 16, 293 
 
 New Orleans 
 
 1,028 
 988 
 
 
 All other Atlantic .. 
 All other Gulf 
 
 Total foreign 
 
 Total Mexico on 
 theGnlf 
 
 1 
 2 
 
 738 
 1,000 
 
 3,924 
 
 
 
 
 
 85 
 
 49, 119 
 
 51 
 
 28,232 
 
 
 249 
 
 122, 977 
 
 -214 
 
 115,211 
 
 
 3 
 
 1 
 
 492 
 108 
 
 4 
 
 656 
 
 
 
 
 
 All other Gulf .' 
 
 2 
 2 
 
 127 
 
 
 Now Orleans 
 
 Total American . 
 All other Gulf 
 
 1 
 
 266 
 
 532 
 
 
 5 
 
 866 
 
 8 
 
 1,315 
 
 
 
 
 1 1 
 10 
 
 40 
 
 
 
 3 
 
 3,108 
 
 10, 130 
 
 
 Total foreign 
 
 Total British 
 Honduras 
 
 New Orleans 
 
 New Orleans 
 
 Total Guatemala 
 on the Carib- 
 bean Sea 
 
 New York 
 
 
 
 3 
 
 3,108 
 
 11 
 
 10,170 
 
 
 8 
 
 3,974 
 
 19 
 
 11,485 
 
 Gnatemala on the Carib- 
 
 5 
 2 
 
 3,480 
 1,468 
 
 
 
 
 
 bean Sea. 
 
 
 
 
 7 
 
 4,948 
 
 
 
 
 
 
 Honduras on the Carib- 
 bean Sea. 
 
 1 
 
 12 
 13 
 64 
 
 164 
 
 1,842 
 
 963 
 
 25, 261 
 
 1 
 
 10 
 12 
 69 
 
 138 
 
 New Orleans 
 
 All other Gulf 
 
 New Orleans 
 
 Total American.. 
 
 1,458 
 
 908 
 
 29, 135 
 
 
 90 
 
 28, 230 
 
 92 
 
 31,639 
 
 
 2 
 
 38 
 13 
 
 1 
 
 85 
 
 3 
 
 396 
 3,383 
 758 
 408 
 44, 127 
 675 
 
 1 
 35 
 10 
 
 2 
 87 
 
 3 
 
 198 
 
 
 
 3,081 
 
 
 All other Gulf 
 
 544 
 1, 142 
 
 
 Now Orleans 
 
 All other Gulf 
 
 Total foreign 
 
 Total Honduras 
 on the Carib- 
 bean Sea 
 
 45,613 
 075 
 
 
 142 
 
 49, 747 
 
 138 
 
 51, 253 
 
 
 232 
 
 77,977 
 
 230 
 
 82, 892 
 
 
 
 
 1 
 1 
 
 144 
 
 Nicaragua on the Carib- 
 
 
 
 
 9 
 
 bean Sea. 
 
 Baltimore 
 
 All other Gulf 
 
 New Orleans 
 
 Total American. 
 
 New Orleans 
 
 1 
 
 1 
 20 
 
 146 
 
 146 
 
 13, 223 
 
 
 
 5 
 24 
 
 674 
 15, 123 
 
 
 22 
 
 13, 515 
 
 31 
 
 15, 950 
 
 
 1 
 5 
 6 
 
 7 
 
 99 
 
 2,577 
 2,544 
 2,037 
 
 2 
 7 
 5 
 9 
 
 219 
 5.326 
 
 
 Philadelphia 
 
 New Orleans 
 
 Total foreign . . . 
 
 Total Nicaragua 
 on the ('arib- 
 bean Sea 
 
 . All other Gulf 
 
 . New Orleans 
 
 Total American 
 
 2,11.': 
 2,619 
 
 
 19 
 
 7,257 
 
 23 
 
 10, 279 
 
 
 41 
 
 20, 772 
 
 64 
 
 26,229 
 
 Costs Rica on the Carib- 
 bean Sea. 
 
 1 
 6 
 
 169 
 3,456 
 
 2 
 
 6 
 
 415 
 
 3,456 
 
 
 7 
 
 3,625 
 
 8 
 
 3,871 
 
 :| — , .^
 
 THE UNITED STATES AND LATIN AMEKlCA. 
 
 245 
 
 Sialement showiiif) the niimher atid tonnage of American and foreign sailing and steam 
 veaaels entered and cleared in the foreign trade, etc. — Continned. 
 
 Coantries and islands. 
 
 Nationality and 
 motive power. 
 
 Customs districts. 
 
 Entered. 
 
 Cleared. 
 
 MEXICO, ETC.— continued. 
 
 Foreign steam 
 
 American sail 
 
 American stearm. 
 
 Foreign sail 
 
 Foreign steam 
 
 American sail 
 
 American steam.. 
 
 Foreign sail 
 
 Foreign steam 
 
 American sail 
 
 American sail 
 
 Foreign sail 
 
 
 No. 
 19 
 
 1 
 15 
 1 
 
 1 
 
 Tons. 
 
 19,422 
 
 538 
 
 9,503 
 
 1,187 
 
 883 
 
 No. 
 
 15 
 
 1 
 
 15 
 
 Tons. 
 14, 652 
 
 bean Sea — Continued. 
 
 Philadelphia 
 
 New Orleans 
 
 Galveston 
 
 All other Atlantic. . . 
 
 Total foreign 
 
 Total Costa Rica 
 on the Carib- 
 bean Sea 
 
 538 
 8,199 
 
 
 
 
 
 
 37 
 
 31,633 
 
 31 
 
 23, 389 
 
 
 44 
 
 35, 158 
 
 39 
 
 27,260 
 
 United States of Colom- 
 
 
 
 13 
 26 
 
 3 
 12 
 
 1 
 
 5 
 19 
 39 
 
 1 
 10 
 
 6,693 
 
 4,800 
 
 658 
 
 
 
 32 
 2 
 6 
 2 
 
 1 
 26 
 36 
 
 1 
 10 
 
 1 
 
 6,077 
 262 
 874 
 
 2,324 
 
 535 
 
 11, 849 
 
 72, 769 
 
 631 
 
 6,542 
 136 
 
 Sea 
 
 
 
 
 4,658 
 1, 173 
 
 
 
 
 All other Atlantic... 
 
 All other Gulf 
 
 NfW York 
 
 2,690 
 8,078 
 77, 817 
 
 
 
 631 
 
 
 New Orleans 
 
 AU other Gulf 
 
 Total American .. 
 
 Boston 
 
 6,513 
 
 
 
 
 
 117 
 
 101, 999 
 
 129 
 
 113, 709 
 
 
 
 
 2 
 
 13 
 
 3 
 
 655 
 
 
 
 12 
 
 2,549 
 
 3.066 
 835 
 
 
 
 
 
 3 
 4 
 8 
 2 
 27 
 3 
 
 2,794 
 2,580 
 6,669 
 1,868 
 28, 144 
 2,064 
 
 
 
 AU other Atlantic .. 
 
 All other Gulf 
 
 Boston 
 
 New York 
 
 1 
 1 
 
 822 
 379 
 
 
 32 
 4 
 3 
 
 8 
 
 3i, 624 
 2 746 
 
 
 Philadelphia 
 
 
 Baltiiuore 
 
 3 109 
 
 
 New Orleans 
 
 Galveston 
 
 All other Atlantic. . 
 Another Gulf 
 
 Total foreign 
 
 Total Colombia on 
 the Caribbean . . 
 
 Boston 
 
 24 
 
 1 
 4 
 5 
 
 22, 280 
 1,611 
 4,505 
 5,214 
 
 4,700 
 
 
 24 
 3 
 
 20, 083 
 1,8 8 
 
 
 93 
 
 80, 278 
 
 94 
 
 72,897 
 
 
 210 
 
 3" 
 3 
 
 10 
 
 1 
 
 12 
 
 182, 277 
 
 223 
 
 180, 606 
 
 Venezuela »..- 
 
 777 
 
 459 
 
 3,423 
 
 286 
 
 16, 152 
 
 
 
 
 
 5 
 
 "1 
 31 
 
 1,784 
 
 
 Baltimore 
 
 
 AU other Atlantic... 
 New York 
 
 163 
 40 108 
 
 
 Total American . . 
 Boston 
 
 
 
 29 
 
 21, 097 
 
 37 
 
 42, 055 
 
 
 1 
 9 
 1 
 2 
 8 
 
 144 
 
 3,112 
 
 164 
 
 668 
 
 4,491 
 
 
 
 
 New York 
 
 4 
 
 1,121 
 
 
 Galveston 
 
 All other Atlantic . . . 
 New York 
 
 
 1 
 
 8 
 
 338 
 4,711 
 
 
 Total foreign 
 
 Total Venezuela.. 
 Portland 
 
 
 21 
 
 8,579 
 
 13 
 
 6,170 
 
 
 50 
 
 29, 676 
 
 50 
 
 48^226 
 
 British Gniana 
 
 
 
 1 
 
 8 
 37 
 
 431 
 
 
 
 4 
 19 
 6 
 
 i,89i 
 6,259 
 2,662 
 
 4 659 
 
 
 New York 
 
 13 331 
 
 
 Philadelphia 
 
 
 
 J3 
 
 18 
 
 5,417 
 5,388 
 
 British Gniana. 
 
 All other Atlantic... 
 All other Gulf 
 
 Total American.. 
 
 Boston , 
 
 2 
 2 
 
 665 
 
 876 
 
 
 
 
 
 
 33 
 
 12,353 
 
 77 
 
 29, 22« 
 
 
 7 
 12 
 21 
 15 
 11 
 
 2,952 
 3,883 
 12, 848 
 6,509 
 6,497 
 
 1 
 
 21 
 
 3 
 
 1 
 2 
 
 203 
 
 
 New York 
 
 5,938 
 866 
 
 
 
 
 All other Atlantic... 
 All other Gulf 
 
 182 
 48«
 
 246 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 Statement shoiciiig the number and tonnage of American and foreign sailing and steam 
 vessels entered and cleared in the foreign trade, etc. — Codtinued. 
 
 Conntries and islands. 
 
 Nationality and 
 motive power. 
 
 Customs districts. 
 
 Entered. 
 
 Cleared. 
 
 MEXICO, ETC. — contiBued. 
 firitish Guiana Cont'd 
 
 Foreign steam 
 
 American sail 
 
 Foreign sail 
 
 Aiiiericaneail 
 
 Foreign sail 
 
 American sail 
 
 American steam . . 
 Foreign sail 
 
 Foreign steam 
 
 American sail 
 
 Foreign sail 
 
 
 No. 
 7 
 2 
 1 
 1 
 
 Tons. 
 
 6,585 
 
 1,432 
 
 1,106 
 
 715 
 
 No. 
 3 
 
 Tons. 
 1 179 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Total foreign 
 
 Total British Gui 
 
 
 
 
 77 
 
 42, 527 
 
 31 
 
 8,854 
 
 
 110 
 
 54,880 
 
 108 
 
 38,080 
 
 
 
 
 
 6 
 1 
 
 2,553 
 262 
 
 8 
 
 1 
 1 
 
 3,432 
 262 
 
 
 
 
 All other Atlantic 
 
 259 
 
 
 Total American . . . 
 New York 
 
 
 
 
 
 7 
 
 2,815 
 
 10 
 
 3,953 
 
 
 3 
 
 565 
 
 3 
 
 774 
 
 
 Total Dutch Gui- 
 
 
 
 10 
 
 3,380 
 
 13 
 
 4,727 
 
 
 
 
 French Guiana 
 
 
 
 5 
 
 8 
 
 912 
 
 
 
 1 
 4 
 
 189 
 933 
 
 1,340 
 
 
 
 
 
 Total American. . . 
 BoHton 
 
 
 
 
 5 
 
 1,122 
 
 13 
 
 2, 252 
 
 
 1 
 1 
 1 
 
 146 
 
 176 
 281 
 
 3 
 2 
 
 491 
 335 
 
 
 All other Gulf 
 
 Total foreign 
 
 Total French Gui- 
 ana 
 
 
 
 
 
 
 3 
 
 603 
 
 ' 
 
 826 
 
 
 8 
 
 1,725 
 
 18 
 
 3,078 
 
 
 
 
 Brazil 
 
 
 
 1 
 
 1 
 
 16 
 
 39 
 
 2 
 
 579 
 
 
 
 1 
 
 27 
 
 26 
 
 2 
 
 15 
 
 455 
 
 13, 705 
 
 12, 868 
 
 645 
 
 30, 135 
 
 842 
 
 
 New York 
 
 9,337 
 
 
 
 19, 229 
 
 
 All other Atlantic . . . 
 
 2,255 
 
 
 
 16 
 
 31, 339 
 
 
 Total American .. 
 
 
 
 
 
 71 
 
 57, 808 
 
 75 
 
 63, 581 
 
 
 19 
 
 165 
 2-2 
 
 2 
 21 
 
 6 
 85 
 78 
 89 
 
 5,605 
 
 64,807 
 
 11,414 
 
 542 
 
 25, 162 
 
 2,243 
 42,831 
 68, HI 
 98,248 
 
 1 
 
 56 
 
 2 
 
 5 
 
 215 
 
 
 New York 
 
 18, 871 
 581 
 
 
 
 1,569 
 
 
 New Orleans 
 
 
 
 
 
 
 All other Atlantic . . . 
 
 AllotlierGulf 
 
 If ew York 
 
 Baltimore 
 
 39 
 10 
 22 
 16 
 
 16. 949 
 6,817 
 18, 207 
 20, 519 
 
 
 New Orleans 
 
 Total foreign 
 
 Total Brazil 
 
 io 
 
 13, 022 
 
 
 
 
 
 
 497 
 
 331, 985 
 
 151 
 
 83, 728 
 
 
 568 
 
 389, 793 
 
 226 
 
 147, 309 
 
 TJrncniaT ...... 
 
 
 
 1 
 4 
 
 1 
 
 634 
 
 
 
 1 
 .5 
 
 1 
 2 
 
 538 
 3,612 
 
 705 
 2,636 
 
 2,628 
 
 
 
 1,230 
 
 
 
 
 
 
 
 
 
 All other Atlantic 
 
 1 
 
 440 
 
 
 Total American .. 
 
 U 
 
 i 
 
 22 
 7 
 1 
 
 IG 
 2 
 
 18 
 
 54 
 
 
 
 
 7,491 
 
 7 
 
 4,932 
 
 
 1,477 
 
 ^ 2, 365 
 
 14, 402 
 
 5,654 
 
 374 
 
 15,153 
 
 1,078 
 
 13,470 
 
 48, 326 
 
 
 
 
 
 9 
 29 
 
 7,249 
 
 
 
 13, 985 
 
 
 Pliiladelpliia 
 
 
 
 
 
 
 Now Orleans 
 
 
 
 
 
 
 
 All otlicr Athiutic... 
 All other Gulf 
 
 7 
 22 
 
 3,466 
 17,864
 
 THE UNITED STATES AXD LATIN AMERICA. 
 
 217 
 
 statement showivg the numhcr and tonnage of Anurican and foreign sailhifj and deam 
 vessels entered and cleared in the foreign trade, etc. — Coutiuued. 
 
 Countries and islaiida. 
 
 Nationality and 
 motive power. 
 
 Customs districts. 
 
 Entered. 
 
 Cleared. 
 
 MEXICO, ETC.— continued. 
 Uruguay — Continued 
 
 Foreign steam 
 
 American sail 
 
 Foreie;n sail 
 
 Foreign steam 
 
 American sail 
 
 American steam. . 
 
 Foreign sail 
 
 Foreign steam 
 
 American sail 
 
 American steam . . 
 
 American sail 
 
 Foreign sail 
 
 
 No. 
 
 Tons. 
 
 No. 
 1 
 1 
 
 Tung. 
 1,01? 
 
 
 
 
 851 
 
 
 
 1 
 1 
 
 1,045 
 1,898 
 
 
 
 All other Gulf 
 
 Total foreign 
 
 Uruguay 
 
 Portland 
 
 
 
 
 130 
 
 105, 842 
 
 69 
 
 44, 452 
 
 
 139 
 
 113, 333 
 
 76 
 
 49, 384 
 
 Argentine Republic 
 
 1 
 25 
 10 
 ] 
 1 
 1 
 1 
 
 876 
 
 14, 104 
 
 7,772 
 
 1,050 
 
 1,443 
 
 567 
 
 955 
 
 23 
 
 6 
 
 24 
 
 14,251 
 
 
 3,533 
 
 
 
 14, 279 
 
 
 
 
 
 
 
 
 
 All other Atlantic... 
 All other Gult 
 
 6 
 6 
 1 
 
 3,T84 
 5, 829 
 1,443 
 
 
 Total American . . 
 Portland 
 
 B»- - 
 
 
 
 
 40 
 
 26, 767 
 
 66 
 
 43,119 
 
 
 7 
 
 12 
 30 
 
 7 
 10 
 
 4 
 73 
 106 
 
 4 
 
 6,635 
 7,703 
 20, 223 
 3, 9ii2 
 7,935 
 2,247 
 44, 591 
 76, 196 
 4,730 
 
 34 
 
 18 
 57 
 
 27, 133 
 
 
 
 It, 726 
 
 
 
 33, 905 
 
 
 Pbiladi'lphia 
 
 New Orleans 
 
 
 
 
 
 
 
 
 
 All other Atlantic ... 
 All olheiGult 
 
 61 
 
 79 
 
 1 
 
 3 
 
 35, 971 
 
 61,225 
 
 1.270 
 
 
 All other Gult 
 
 3,201 
 
 
 Totid foreign 
 
 Total Argentine 
 Rt public 
 
 Puget Sound 
 
 
 
 
 
 253 
 
 174, 162 
 
 253 
 
 177,517 
 
 
 293 
 
 200, 929 
 
 2,864 
 1,101 
 1,175 
 2,447 
 
 136 
 
 5, 416 
 
 17, 751 
 
 708 
 
 319 
 
 250, 636 
 
 MEXICO, CENTRAL AND 
 SOUTH AMJiRICA ON THK 
 PACIFIC. 
 
 Mexico on the Pacifin 
 
 5 
 6 
 41 
 1 
 8 
 146 
 3 
 
 1 
 6 
 6 
 
 38 
 1 
 
 12 
 
 143 
 
 2 
 
 666 
 1,273 
 
 
 S.au Francisco 
 
 San Diego 
 
 Paso del Norte 
 
 San Francisco 
 
 732 
 
 728 
 
 236 
 
 6,664 
 
 18, 265 
 
 
 Paso deta orte 
 
 Total American.. 
 
 472 
 
 
 212 
 
 31, 598 
 
 209 
 
 29, 036 
 
 
 
 
 1 
 
 604 
 
 
 Willamette 
 
 Humboldt 
 
 San Francisco 
 
 Wilmington, Cal 
 
 San Francisco 
 
 2 
 1 
 7 
 1 
 1 
 23 
 
 2,411 
 
 249 
 
 2,608 
 
 9 
 
 580 
 
 20, 470 
 
 
 
 1 
 6 
 
 249 
 3,860 
 
 
 4 
 23 
 
 2, 308 
 20, 470 
 
 
 Total foreign 
 
 Total Mexico on 
 the Pacitic 
 
 
 
 35 
 
 26, 327 
 
 35 
 
 27, 491 
 
 
 247 
 
 57,925 
 
 244 
 
 56,527 
 
 
 
 
 
 231 
 
 
 San Francisco 
 
 1 
 3 
 
 747 
 2,240 
 
 1,494 
 747 
 
 
 Total Guatemala 
 on the Pacific . . 
 
 
 
 4 
 
 2,987 
 
 
 2,472 
 
 San Salvador 
 
 
 
 
 384 
 
 
 
 
 
 
 Nicaragua on the Pacific. 
 
 
 
 2 
 
 511 
 
 
 
 
 604 
 
 
 
 
 
 1,080 
 
 
 Total Nicaragua 
 
 
 
 
 
 
 
 4, 
 
 2,195 
 
 
 

 
 248 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 Staiemeni showing the numhir and tonnage of American and foreign sailing and steam 
 vessels entered and cleared in the foreign trade, e^c— Coutinued. 
 
 Countries and islands. 
 
 Natumality and 
 motive power. 
 
 Customs districts. 
 
 Entered. 
 
 Cleared. 
 
 MEXICO, KTC— continued 
 Costa Rica on the Pacific 
 
 . Americansail ... 
 Foreign sail 
 
 Americansail 
 
 American steam . 
 
 Foreign sail 
 
 Foreign steam 
 
 American saQ 
 
 Foreign sail 
 
 American sail 
 
 Foreign sail 
 
 Americansail 
 
 American steam.. 
 Foreign sail 
 
 Foreign steam 
 
 San Francisco 
 
 San Diego 
 
 No. 
 
 1 
 
 Tong. 
 234 
 
 No. 
 
 TOTU. 
 
 
 1 
 
 643 
 
 
 Total Co.sta Rica 
 on the Pacific . 
 
 Humboldt 
 
 
 
 
 1 
 
 234 
 
 1 
 
 643 
 
 Unit«d States of Colom- 
 
 
 
 1 
 
 1 
 
 36 
 
 298 
 
 196 
 
 61. 834 
 
 bia on the Pacific. 
 
 San Francisco 
 
 
 
 
 San Francisco 
 
 Total American . . 
 
 Paget Sound 
 
 Willamette 
 
 34 
 
 58, 152 
 
 
 34 
 
 58, 152 
 
 1,045 
 
 1,798 
 
 9,735 
 
 38 
 
 62, 328 
 
 
 1 
 
 1 
 ....^ 
 
 
 
 
 
 
 
 San Francisco 
 
 San Francisco 
 
 Total foreign 
 
 Total Colombia 
 on the Pacific. 
 
 San Francisco 
 
 New York 
 
 2 
 4 
 
 595 
 5,555 
 
 
 
 43 
 
 12, 578 
 
 6 
 
 6,150 
 
 
 70, 730 
 
 44 
 
 68,478 
 
 Ecuador 
 
 1 
 
 125 
 
 1 
 1 
 
 189 
 887 
 
 
 Total American . . 
 New York 
 
 
 
 
 1 
 3 
 
 125 
 
 2 
 
 1,076 
 
 
 1,115 
 
 
 
 
 Pearl River 
 
 2 
 
 1,894 
 
 
 Total foreign 
 
 Total Ecuador .. 
 
 
 
 
 3 
 
 1,115 
 
 2 
 
 1,894 
 
 
 4 
 
 1,240 
 
 4 
 
 2,970 
 
 Pern 
 
 •2 
 
 2,592 
 
 
 
 
 New York 
 
 4 
 
 3,150 
 
 
 Total American . . 
 Paget Sound 
 
 1 
 
 
 2 
 
 2,502 
 
 4 
 
 3,150 
 
 
 2 
 
 1,916 
 
 3 
 
 3 
 3 
 
 3,990 
 
 984 
 
 218 
 
 2,431 
 
 2,595 
 
 
 Williamette 
 
 
 Humboldt 
 
 
 
 
 San Francisco 
 
 
 
 
 New York 
 
 
 
 
 Total foreign 
 
 Total Peru 
 
 Puget Sound 
 
 San Francisco 
 
 
 
 
 2 
 
 1,916 
 
 11 
 
 10,218 
 
 
 4 
 
 4,508 
 
 15 
 
 13, 368 
 
 
 1 
 
 81 
 
 "2 
 
 6 
 11 
 
 4,' 070 
 
 5,202 
 8,308 
 
 
 Boston 
 
 5 
 
 16 
 4 
 1 
 2 
 
 1 
 
 4,869 
 14, 890 
 3,388 
 837 
 1,329 
 1,713 
 
 
 New York 
 
 
 Philadelphia 
 
 Baltinioie 
 
 
 
 
 
 Another Atlantic... 
 San Francisco 
 
 Total American . . 
 
 Puget Sound 
 
 Willamette 
 
 
 
 
 
 
 30 
 
 27, 107 
 
 19 17, 580 
 
 ffhUi- Continued 
 
 1 
 1 
 2 
 8 
 
 568 
 1,488 
 2,890 
 7,077 
 
 12 10, 680 
 1 1. 230 
 
 
 Oregon 
 
 
 San Francisco 
 
 Wilmington, Cal ... 
 
 7 
 
 9 
 
 12 
 
 11,909 
 13 595 
 
 
 San Diego 
 
 
 
 15, 152 
 
 
 Boston 
 
 2 
 19 
 1 
 3 
 2 
 
 1,006 . 
 19.548 
 
 747 . 
 2,318 . 
 1.253 . 
 
 
 New York 
 
 Phila<lelphia 
 
 4 
 
 3,483 
 
 
 Baltimore 
 
 
 
 
 All other Atlantic. 
 San Francisco 
 
 
 
 
 2 
 
 2,906 
 
 
 Total foreign.... 
 
 
 
 
 39 
 
 36, 895 
 
 49 
 
 60, 528 
 
 
 Total Chili 
 
 69 
 
 64,002 
 
 68 
 
 78, 108
 
 THE UNITED STATES AND LATIN AMERICA. 249 
 
 Appendix B to Part II. 
 
 REPORT OF HOUSE COMMITTEE ON SHIPPING. 
 
 I submit as an appendix a very able report on the steam-ship ques- 
 tion, made to the House of Representatives on February 12, 1884, by 
 the honorable Mr. Hunt, of Louisiana : 
 
 [To accompany bill H. R. 4987.] 
 
 The Committee on American Ship-building .and Ship-owning Interests, to whom 
 •was referred the bill (H. E. 3963) for the encouragement of the American merchant 
 marine, respectfully submit the following report : 
 
 The bill recommended by the committee provides for ocean mail service between 
 the United States and foreign countries. 
 
 Under section 3976 of the Revised Statutes of the United States, American vessels 
 engaged in the foreign trade are compelled to carry the mails. These vessels may be 
 detained for such length of time as suits the Post-Office Department, and are obliged 
 to deliver the mails to the foreign port to which they may be bound and to the Post- 
 Office itself, and for this service the Post-Office is to pay the vessels the utterly in- 
 adequate sum of 2 cents a letter. The instances are stated to be numerous where 
 American vessels have been detained by the Postmaster-General and have been con- 
 strained to receive the mails and to deliver them when the pay received for carrying 
 did not actually reimburse them for the detention and cartage of the letters at the 
 port of destination. In the case of the Pacific Mail Steam-ship Company, it is stated 
 that while their ships are obliged to carry the mails the company have paid out more 
 money to effect delivery at the post-office in the city of Aspinwall than they obtained 
 for mail service from the United States the whole way from New York to Aspinwall. 
 
 The committee consider that such a condition of things shonld not be allowed to 
 continue. Where the Post-Office Department desires mails to be carried along our 
 coasts, and where American vessels are under the protection of the navigation acta, 
 the Government can not seize a vessel and compel her to carry the mails, but must 
 enter into contracts and pay a fair price in the premises. The Department made 
 some time ago a contract with a small steamer, running from Galveston to Brashear, 
 and paid the steamer $50,000 a year. This is five times as much as is paid all Ameri- 
 can vessels for carrying the mails of the United States for the entire period of one 
 year to every port in South America, and exceeds by about $10,000 the whole amount 
 paid all American vessels engaged in the foreign mail service. At the present time 
 Government pays for the carriage of the mails from Cedar Keys to Key West, Fla., 
 131,000. 
 
 It is submitted that there is no reason why the Post-Office Department should 
 exercise the power referred to over vessels in the foreign trade when it has none at 
 all given to it to control similarly railway trains, or stage coaches, or vessels on tha
 
 250 TRADE AND TRANSPORTATION BETWEEN 
 
 lakes or the rivers of the country, or going coastwise. The compensation of the 
 principal railway rontes is from $375 to $1,155 per mile per annum, and that of the 
 routes of smaller importance from $45 to $350 per mile per annum. Of the entire 
 thousand of railroad routes it is safe to say only two or three hundred earn the com- 
 pensation paid by Government, and it is likewise true that in the great majority of 
 cases postage on the mails thus carried falls very far short of reimbursing the Gov- 
 ernment for the cost of service over them. 
 
 The bill reported is designed to favor and establish a better policy in regard to 
 American steam-ship lines in the foreign trade. It proceeds upon the acknoTj'ledged 
 fact of the decline in American shipping, and has for its aim the restoration of it. 
 The passage of the bill wou]d undoubtedly tend to the revival of American ship- 
 building and ship-owning interests. It would enlarge and invigorate American com- 
 merce with foreign countries, and, it is hoped, set the flag on the seas once more. 
 
 To these ends, affecting as they do national prosperity, national character, and 
 national independence itself on the ocean, the bill reported does away with the un- 
 just discrimination which now exists between foreign mail service and the home 
 service. It is submitted, as has been already observed, that there is no just ground 
 for the discrimination to stand upon, and it deserves to be here added that, in point 
 of fact, throughout the very thorough examination to which the matter has been 
 subjected, none at all has ever been suggested. 
 
 Nor are the provisions of the bill obnoxious to the charge that they establish a 
 subsidy for the payment of ocean postage, in the proper or, at least, the general un- 
 derstanding of the term. On the contrary, instead of being extraordinary, the pay 
 provided for by the bill will be found to be only ordinary, and in fair proportion to 
 the services to be rendered. Lest the Government should be induced into undue lib- 
 erality and mere gratuities, the bill provides for advertising all contracts for the car- 
 riage of the mails, for their adjudication to the lowest bidder, and for the exacting of 
 responsible security for the fulfillment of the contract. The bill, then, is one to give 
 just compensation for services to be rendered. It is one to unify the policy of the 
 Government regarding the carriage of mail matter on the ocean to foreign countries, 
 and that coastwise and on the land, to reduce the whole to one system, to assimilate 
 the different parts of it, and to put all substantially on the same footing. 
 
 Nobody, as has been noted, is to be found who will venture to assail the policy 
 wher^eby remuneration is made for mail service on the inland routes of the United 
 States. Nobody contends against that policy on the assumption that it involves the 
 subsidizing of the routes. The public must be and are satisfied if, on the whole, they 
 are found to be self-sustaining. In the foreign mail service, on the contrary, the Gov- 
 ernment, by charging 5 cents per half-ounce on the letters, and paying steamers 2 cents 
 per letter only, makes a clear profit of from $400,000 to $600,000 a year. The collec- 
 tion of this sum is kept up notwithstanding payments, as already shown, of far larger 
 earns per mile than the bill proposes to give for weekly, fortnightly, and monthly 
 mails within our own territory, when it is undeniably true that these mails contain 
 fewer letters than the foreign-going steamers would, and are attended by none of the 
 incidental advantages to commerce, manufactures, and navigation which, at this 
 time of the world, unquestionably form the chief value of lines of communication by 
 steam with foreign countries. 
 
 The bill provides that in no event shall the contract price exceed $1 a nautical 
 mile out and back ; that is to say, out of abundant caution, it provides a limitation 
 not to be found in any other branch of the jiostal service. Again, the bill requires 
 that the aggregate of the contracts made in pursuance of it shall not exceed gross 
 revenues of the Post-Oflice Department from the foreign mail service less the amount 
 paid for transportation of the mails on foreign vessels and the net. amount paid for- 
 eign administration for intermediary, territorial, and sea transit of such mails. 
 
 There is authority for the remarkable statement that, if this restriction wore applied 
 to and extended inland, there would be no mail at all in four-fifths of the States of 
 the Union. At this time over $000,000 more than are received are required to rupply
 
 THE UNITED STATES AND LATIN AMERICA. 251 
 
 inalia in tho great State of Ohio ; and the States are very few where the mall service 
 does not cost the country a great deal more than is derived in return. 
 
 Notwithstanding the premises, however, the committee have adopted the limita- 
 tions on expenditures in behalf of foreign ocean postal service which appear in the 
 act, so that the amount to be paid for the service referred to shall not exceed a certain 
 amount ; that is to say, tho gross revenue diminished, as already set forth. It is be- 
 lieved that the sum so reached will be an available aggregate, during the term of one 
 year, of, say, $1,700,000. At tho same time it deserves to bo expressly noted that un- 
 less the present American ocean-going i^ostal service should be doubled only half this 
 amount would be actually expended. 
 
 But, as the Post-Office Department might, if there were no further provision, be 
 embarrassed in the case of a refusal to conclude a postal contract or in case of im- 
 possibility to form one, the bill, in view of section 4203 of the Revised Statutes, pro- 
 viding for compulsory process against an American vessel, has coupled, by a provi- 
 sion additional to those already explained, this right of compulsion with the further 
 provision that it shall have application where mails are to be conveyed from the 
 United States to foreign destinations in the event only that the Postmaster-General 
 shall find it inexpedient or impracticable to contract for their conveyance under the 
 limitations of the act. 
 
 So far the report of the committee follows the bill. There are, however, considera- 
 tions of public good and general policy with which the report is naturally connected, 
 and which, in the judgment of the committee, merit the best consideration of the 
 House and the country. For a number of years these have been discussed and in- 
 sisted upon by committees preceding the present one, and which have anticipated 
 the labor which must otherwise have devolved upon us. Last in point of time is the 
 report made the first session of the Forty-seventh Congress by Mr. Money, of Missis- 
 sippi, from the Committee on the Post-Office and Post-Roads. This report, taking 
 notice, as it does, of those which have gone before, and distinguished as it is for ac- 
 curacy of information and ability, is here reproduced for the general assistance it 
 affords in examining into, and correctly judging of, the ocean mail service, and like- 
 wise for the powerful vindication justly deducible from the argument it contains iu 
 favor of the bill unanimously reported by us. 
 
 The report made by Mr. Money has been amended only by bringing down the sta- 
 tistics to as late a date as practicable. It proceeds as follows : 
 
 " When your committee considers the great questions properly related to thismeasure 
 and in some degiee to be affected by it, the question of the carrying trade, of a com- 
 mercial marine as a nursery for both the personnel and material of a war marine, of 
 not only commercial independence but national honor and national safety, of our 
 territorial isolation and consequent absolute dependence in future wars (which must 
 come to any independent nation) upon our Navy, both for pr(>tection and offensive 
 warfare ; in short, of all the far-reaching consequences in our industrial, financial, 
 and political future, of a wise and liberal development of our commerce and the 
 restoration of our fighting Navy, and with it the commanding attitude we will assume 
 among the nations of the earth, then your committee hesitate, impressed with the 
 vastness of the field, discouraged by the able and exhaustive efforts in this sphere of 
 the most powerful and patriotic of our predecessors, and diffident of our ability to 
 present any new thought or experience that would influence you in tho consideration 
 of this measure. The greatest difficulty we find is to compress iu the brief limits of 
 a report the valuable information, reflection, and experiment, the result of former 
 labors upon this great question. Indeed, there can be nothing new of idea, but we 
 can select from a great cloud of witnesses the testimony of some of the wisest, most 
 sagacious, and patriotic statesmen who have ever identified f hemselves with tho legis 
 latiou of our country. Wo may proUt too by the example of other nations, and more 
 particularly by the remarkable experience of that nation from whom we are proud to
 
 252 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 derive onr origin, whose consummate wisdom has illustrated a career on land and sea 
 the most resplendent in human annals. 
 
 "The melancholy story of our commercial decline your committee will not here 
 repeat. The glorious rivalry for supremacy in 1840 and the abject dependency in 
 1882 is a sharp contrast, so humiliating that a recital to this House could only be 
 justified for the purpose of amendment and correction of the policy which permitted it. 
 From the beginning of this century for nearly fifty years our commercial progress was 
 a miracle of energy and success. We had outstripped all competitors but Great Brit- 
 ain, and had excited her profoundest fears. We not only carried the bulk of our own 
 trade, but every water was vexed by the swift keels of American clippers, contesting 
 the carrying trade of the world with the "mistress of the seas." The starry flag of 
 the young Republic saluted every sky which knew the red cross of St. George. The 
 British newspapers sounded the alarm ; the British Parliament went to work through 
 its committees; every tax was removed, every incumbrance was lifted ; the building 
 of war vessels was given three-fourths to private ship-yards; heavy subsidies were 
 given, and increased as competition demanded ; opportunely the practicability of 
 steam ocean navigation was demonstrated by America ; England had the iron and 
 coal in lucky juxtaposition; the iron steamer was constructed and England again 
 enjoyed an undisputed supremacy. Your committee are fully aware that a reasonable 
 compensation for ocean mail service will not alone rehabilitate our dilapidated com- 
 merce, but it will begin the movement ; and we believe its effects will be immediate 
 and powerful, and if followed by wise legislation, urgently called for by the plainest 
 principles of political economy and self-preservation, will re-establish our Republic as 
 one of the greatest maritime powers of the globe. Something must be done to regain 
 our carrying trade, paying now $100,000,000 per annum to foreign ships, to keep this 
 vast sum at home ; about this there is no difl'erence ; the dispute is about methods. 
 If we can accomplish this and at the same time revive the industry of ship-building, 
 80 essential to our national glory and existence, develop our iron and coal mines and 
 utilize our forests, employ the labor of our own citizens and train skilled workmen 
 and artisans, sailors, and officers, then let us hasten to take the first step towards so 
 glorious a result and not despise even a small beginning of a good work. Every 
 nation of the earth that pretends to commerce has heavily subsidized ocean mail lines. 
 They know that direct, regular, and swift communication begins and fosters trade, 
 and without it commerce languishes and dies. This is the experience of the world, 
 and is ours the only nation of the earth that shall fail to learn from itt As England 
 has been the leading nation in commerce and the pioneer in postal affairs, we present 
 a condensed statement of her treatment of ocean mails. Her expenditure for railway 
 and ocean mails, according to reports of the British postmaster-general, waa : 
 
 Tears. 
 
 1857 . 
 1858. 
 1859. 
 1860. 
 
 1861 . 
 
 1862 . 
 
 1863 . 
 1861 . 
 1865. 
 1866. 
 1867 . 
 1808 . 
 1869. 
 1870, 
 
 Railway 
 mail. 
 
 Ocean mall. 
 
 
 £422, 943 
 
 *826, 697 
 
 1871 
 
 545, 073 
 
 935, 883 
 
 1872 
 
 428, 647 
 
 948, 038 
 
 1873 
 
 490, 223 
 
 869, 9.-)2 
 
 1874 
 
 655, 046 
 
 940, 657 
 
 1875 
 
 526, 966 
 
 821,067 
 
 1876 
 
 538, 512 
 
 837. 655 
 
 1877 
 
 565, 852 
 
 900,610 
 
 1878 
 
 528, 220 
 
 796, 399 
 
 1879 
 
 586, 085 
 
 817,407 
 
 1880 
 
 559, 575 
 
 783, 8-15 
 
 1881 
 
 578, 927 
 
 777, 097 
 
 1882 
 
 583, 596 
 
 1, 056, 708 
 
 1883 
 
 587, 296 
 
 968, 494 
 
 1884 
 
 Tears. 
 
 Railway 
 mail. 
 
 £595, 221 
 
 619, 000 
 644, 000 
 650, 000 
 667, 000 
 684, 000 
 692, 000 
 
 Ocean mail. 
 
 £1, 047, 014 
 928, 000 
 945,000 
 910,000 
 836, 000 
 780, 000 
 679. 000 
 566, 712 
 641, 656 
 665, 446 
 517, 494 
 504,705 
 517, 494 
 
 * 2f ot received at Pott-Oi£ce Department to March 5, 1884.
 
 THE UNITED STATES ANIJ LATIN AMERICA. 2^)3 
 
 "The British Government in the year 18G7 contracted with the Peninsular and Ori- 
 ental Steam Navigation Company for twelve years' service, at the price of £'100,000 per 
 aunam, the Government agreeing that when the fnn^ accruing for dividend in any 
 one year should fall below the amonnt required for a 6 per cent, dividend the subsidy 
 Bhonld be increased by the amount of the deficiency, provided in no case was the 
 Government to pay more than £500,000 per annum ; if the sum rises above the sum 
 required for 8 per cent., then the Government tq receive one-fourth the excess. The 
 Postmaster-General explains this heavy subsidy in this language: 'The increase of 
 expense of this service will be considerable, but, looking at the great competition to 
 which the Peninsular and Oriental Company is now exposed by its passenger trade, 
 not only by the French line of steam vessels, but also by the large number of military 
 officers and other Government passengers now carried by the steam transports lately 
 built by the admiralty, I am of the opinion that the terms of the nefv contract are as 
 favorable as could be expected.' In 1870 the pay was fixed at £450,000. In 1867 the 
 contract with the Royal Mail Steam Packet Company was about to expire. The com- 
 pany sustained great losses by reason of hurricanes and earthquakes at St. Thomas. 
 The Government renewed the contract for five years, for the reason given by the Post- 
 master-General, as follows: 'Unwilling at such a moment to invite competition or 
 withhold a concession without which the company might have succumbed to its 
 losses, the late government, after much consideration, renewed the contracts, in the 
 case of the West India service for five years, and in the case of the Brazil service for 
 four years.' The two contracts were for more than $1,000,000 per annum. That is the 
 way Great Britain builds up her great ocean lines and carries her commerce to every 
 mart. In 1862 the Government gave the Cape of Good Hope line $25,000 in premiums 
 for running under tivie. Having thoroughly established her lines to the United States 
 in 1877, Great Britain paid only ocean postage, but when it was represented that that 
 pay was not sufficient, the Government almost doubled the pay to the Cunard, Inman, 
 and White Star Companies. Last year Great Britain paid nearly $3,500,000 to ocean 
 mail lines. 
 
 "Great Britain, in 1839, gave the Cunard line $425,000; that not being sufficient, 
 the pay was increased in 1840 to $550,000. Cunard failed to run his ships profitably 
 at that pay, and then his pay was advanced to $725,000. He increased the size of his 
 ships in 1852, and his pay was raised to $855,000 per annum. 
 
 " In 1846 Great Britain paid the line of steame'-s from Southampton, via Jamaica, 
 across the Isthmus of Panama and down to Valparaiso $1,500,000 per annum. 
 
 "England's way has been crowned with a wonderful success. The opponents ot 
 this measure have said we can not expend as much money as England has done and 
 will. We need not spend as much, but it is shameful to retire from the field. When 
 England succeeds, these croakers say let us abandon the contest and surrender our 
 carrying trade ; but when Stevens beat with the America the British yachts at Cowes, 
 that yacht race was made the subject of investigation by the House of Commons. 
 National pride should be a factor in this problem. 
 
 " American ships are compelled to carry our mails whether they wish to or not, but 
 we never compel a steam-boat, railway, or stage-coach to carry them at all, and when 
 they do, they are well paid ; so are the steam-ship lines in our waters. The law upon 
 ocean mail transportation is as follows : 
 
 " ' The master of any vessel of the United States, bound from any port therein to any 
 foreign port, or from any foreign port to any port in the United States, shall, before 
 clearance, receive on board and securely convey all such mails as the Post-Office De- 
 partment, or any diplomatic or consular agent abroad, shall offer ; and he shall promptly 
 deliver the same, at the port of destination, to the proper officer, for which he shall 
 receive tioo cents for every letter so delivered; and upon the entry of every such ves- 
 sel returning from any foreign port, the master thereof shall make oath that he has 
 promptly delivered all the mail placed on board said vessel before clearance from the 
 United States; and if he fail to make such oath, the vessel shall not be entitled to the 
 privileges of a vessel of the United States.' — (Revised Statutes, section 397<3.)
 
 254 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 "Tt« following table will show bow this law operates against the American »bip 
 engaged in the foreign trade : 
 
 Hail services from the United States to foreign countries for fiscal year ended JuneZO, 1883, 
 
 by vessels of American lines. 
 
 Lilies and servic«. 
 
 Nantica] miles 
 
 of service one 
 
 way.* 
 
 Amoant of 
 mail pay. 
 
 American line : Philadelphia to Queenstown 
 
 Pac-ifl Mail Line: New York to ARpiuwall, San Francisco to Panama, 
 San Francisco to Yokohama, San Francisco to Ilawaii, San Francisco 
 to Australia and New Zealaii<l 
 
 New York, Havana, and Mexicnn Mail Line: 
 
 New York to Cuba, Porto Kico, and Mexico 
 
 New Orleans to Vera Ciiiz, Mexico 
 
 United States and Brazil Mail Line: Newport News to Rio de Janeiro.. 
 
 New York and Cuba Mail Line : New York to Cuba, Porto Kico, and 
 Bahamas...... , 
 
 Red "D" Line: New York to Venezuela and Cura9ao 
 
 Morgan Line : New Orleans to Cuba and Mexico, Key West to Cuba, Gal- 
 veston to Mexico 
 
 Clyde Line: New York to Hayti, San Domingo, and Turk's Islands 
 
 Nassau Mail Line: New York to Bahamas and Cuba 
 
 Briti.sli Honduras Mail Packet Line: New Orleans to Belize, Republic of 
 Honduras, aud G uatemala 
 
 Otere's Pioneer Line: New Orleans to Republic of Honduras 
 
 California and Mexican Line: San Francisco to Mexico 
 
 VariouM lines: San Francisco to Hawaii 
 
 Steamer Chase: New Orleans to Mexico 
 
 Various lines: Key West to Cuba 
 
 Pacific Coast Line : San Francisco to Victoria, British Colombia 
 
 Oregon R. R. and Navigation Co. : Port Townsend, Wash. Ter., to Vic- 
 toria, British Columbia 
 
 Steamer Emmett: Eastport, Me., to Campobello, New Brunswick 
 
 Boston, Halifax, and Prince Edward Island Line: Boston to Halifax, 
 Nova Scotia 
 
 Nova Scotia Line: Boston to Tarmonth, Nova Scotia 
 
 Total. 
 
 100, 008 
 
 308, 622 
 
 117, 300 
 10, 120 
 
 46, 800 
 
 85,800 
 41, 800 
 
 47, 488 
 27, 600 
 18, 000 
 
 68, 000 
 38, 000 
 
 27, eoo 
 
 1,840 
 
 '33,546 
 
 420 
 
 23,000 
 28, 400 
 
 1, 024, 338 
 
 $3, 000. 37 
 
 21, 559. 34 
 
 9, 078. 41 
 640.55 
 
 1, 222. 46 
 
 2, 850. 31 
 893. 10 
 
 700. 82 
 351. 34 
 310.90 
 
 378. 7» 
 34.44 
 
 358. 44 
 
 279. 76 
 10.60 
 30.23 
 
 387.64 
 
 949.30 
 19.37 
 
 52.56 
 224.82 
 
 43, 339. 53 
 
 • The outward maUs only being paid for, the distance one way only is here given. 
 
 " Contrast with this showing the following, which gives the amount paid annually 
 to five lines which carry the mails in the coasting trade : 
 
 Lines. 
 
 No. ships. 
 
 Miles trav- 
 eled. 
 
 Mail pay. 
 
 Cedar Keys to Key West, Fla 
 
 San Francisco to Portland, Oregon. 
 
 Port Townsend to Sitka 
 
 Portland to Astoria 
 
 48. 880 
 60, ()80 
 16, 020 
 54,880 
 
 Total. 
 
 189, 460 
 
 $31,000 
 
 22, 000 
 
 16, 000 
 
 6,000 
 
 74, 000 
 
 " France subsidizes as follows : 
 
 Francs. 
 
 Line to China, Japan, and India 8,573,024 
 
 Lino to South America 3,644, 000 
 
 Line to Mediterranean 4, 382, 2(53 
 
 Line to Mod iterranean 375, 000 
 
 Line to West Indies and Mexico 3, i)ij3, 2.57 
 
 Line to the United Stales 2,361,348 
 
 Line to English Channel 100,000 
 
 Total annual pay 
 
 23, 338, 802 
 
 $4, 677, 77a
 
 Till': UNITED STATES AND LA'I'IN AMERICA. 255 
 
 "In addition, France lias a bounty for sbip-building and rnnning: 
 
 •' 'There will bo paid for all steam and sailing vessels launched after the passage of 
 this bill, excepting iisbing- vessels, yjichts, and steamers now receiving a subsidy, aa 
 follows : 
 
 " 'Thirty cents per ton for every mile run, to he reduced each year, as followB! 
 
 "'One and a half cents per ton for wooden vessels. 
 
 "'One and a half cents per ton for composite vessels. 
 
 '"One cent per ton for iron vessels. 
 
 '"The vessels to be used by the Government in case of war; and the above pre- 
 mium to be increased 15 i)cr cent, where designs are submitted to and api)roved by 
 the navy department. 
 
 '"Where matcriiils are imported for the construction of vessels, there will be al- 
 lowed to ship-builders, in place of the duties paid upon materials — 
 
 For every registered ton of iron or steel $12 
 
 For wooden vessels of over 290 tons 4 
 
 For composite vessels 8 
 
 For wooden vessels under 200 tons 2 
 
 '"For all the pumps, machinery, etc., required, $2.40 for every 220 pounds. All 
 vessels transformed to increased tonnage after the passage of this bill will be allowed 
 the same premium as for new vessels on the increased tonnage.' 
 
 " To illustrate this new French bounty law, apply it to a 3,000-ton iron ship. The 
 bounty would be — 
 
 On building: 
 
 Weight of iron in hull, 1,800 tons, at $12 $21,600 
 
 Weight of machinery, 500 tons, at $24.43 12,615 
 
 34, 215 
 
 •'Then there is allowed 30 cents per ton for every 1,000 miles run, after being put 
 in service, for first year, diminishing 1 cent per mile each year thereafter. 
 
 "Presuming the above 3,000- ton steamer makes ten trips from Havre to New York per 
 annum, or 60,000 miles, this gives for first year's service as follows : 
 
 3,000 tons, at 30 cents = $90 X 60 = $54, 000. 
 And second year's service 52, 000. 
 
 "This will expire entirely at the end of thirty years. 
 
 "Adding the bounty and the allowance per mile, the law would grant the 3, 000- ton 
 ship the first year $89,015. The French Government for this requires in return the 
 carrying of its mails, and the right to use the ships in case of war, taking them at a 
 fair valuation. 
 
 " Bismarck, the most extraordinary genius of this age, speaking of the French law 
 with the keen criticism of a rival power, said it would 'create for France a powerful 
 navy which may prove of effective service in time of war,' and 'the merchant marine 
 is the handmaid of all other industries, of agriculture and commerce. On the day 
 when the freight trade is given over to foreigners a mortal blow will be given to all 
 the industries of the country. These enterprises can not dispense with Government 
 aid, and this has always beeu afforded in a productive manner as soon as it was a 
 question of paving the way for our traffic in distant markets. England has given the 
 example of using mail steamers as the pioneers for the creation or expansion of com- 
 mercial relations. It is deserving of serious consideration whether under the circum 
 stances German shipping and commerce can hope for further prosperous development 
 as against the competition of other nations aided by pubUo funds and assistance.' 
 
 "Italy subsidizes annually $3,228,811 ; Brazil, $1,700,000 ; Japan, $500,000. The two 
 feeble colonies of New Zealand and New South Wales are now paying the Australia 
 and San Francisco line $4o0,000 per annum ; of this we are greatly the beneficiaries, the
 
 256 TRADE AND TKAXSPOKTATION JiETWEEN 
 
 balance of trade with those colonies being nearly $4,650,000 in our favor. Can it be that 
 all other nations are mistaken in the policy of paying fair compensation for ocean mail 
 carriage, and that we only arc right ? The results show the contrary.* But the present 
 policy has not always been held by us ; our policy has been at other times either more 
 sagacious, more patriotic, more just, or more liberal than now. A Democratic admin- 
 istration, backed by the ablest men of all parties, once dealt fairly and liberally with 
 our ocean mail carriers. Successive committees of both Houses have recommended 
 tbis measure in substance ; Presidents have recommended it in their messages, and 
 Postmaster-Generals in their reports; commercial and industrial bodies in their con- 
 ventions have declared the true policy of the Government. They have given no un- 
 certain sound. The speeches of the great statesmen of the past come down to us, if 
 not with solemn authority at least with persuasive power, urging us to take this 
 among other means to re establish our commerce upon the ocean, from which it is 
 disappearing, before efforts wisely and persistently supported by foreign powers. 
 
 "In his celebrated report on commerce Mr. Jefferson wisely said : 'Our navigation 
 involves still higher consideration ; as a branch of industry it is valuable, but as a 
 resource of defense it is essential. The position and circumstances of the United 
 States leave them nothing to fear from their land-board, and nothing to desire beyond 
 their present rights. But on the sea-board they are open to injury, and they have 
 then, toO; a commerce which must be protected. This can only be done by possessing 
 a respectable body of citizen seamen and artists and establishments in readiness for 
 ship-building. If particular nations grasp at undue shares of our commerce, and 
 more especially if they seize on the means of the United States to convert them into 
 aliment for their own strength and withdraw them entirely from the support of those 
 to whom they belong, defensive and protecting measures become necessary on the 
 part of the nation whose marine resources are thus invaded, or it will bo disarmed of 
 its defense, its productions will be at the mercy of the nation which has possessed 
 itself exclusively of the means of carrying them, and its politics may be influenced 
 by those who command its commerce. The carriage of our own commodities, if once 
 established in another channel, can not be resumed in the moment we desire. 
 
 " '// we lose the seamen and artiats whom it now employs, we lose the present means of 
 marine defense, and time tvill be requisite to raise up others, when disgrace or losses shall 
 bring home to our feelings the evils of having abandoned them.' 
 
 " The Committee on Post-Office and Post-Roads in their report said: 
 
 " 'The British Government contracts with its lines of steam-ships, and pays them 
 large subsidies for carrying its mails, while the United States compels its ships to 
 carry its mails, and will not allow a ship its clearance papers until she has the United 
 States mail on board, and then allows her only the ocean postage of two cents on a 
 letter, which is a dead loss to the ship. 
 
 '"The stage-wagons carrying the inland mails receive an average of $28 per mile 
 of route per annum. The steamers on the river an.l along the coasts receive an average 
 of $43.50 per mile per annum. 
 
 " ' The railroads receive an average of $1:51 per mile per annum, while the more im- 
 portant roads receive $538, $81)7, $922, $979, $1,155 per mile of road per annum ; and, 
 on the vast majority of these, the i)08tage would not pay the cost. On only a few 
 hundred of the 9,900 routes would the carrier consent to do the work for the postage, 
 yet the merchant vessels are compelled to carry the mail for the ocean postage, which 
 in a very few cases will amount to as much as $1 per mile per annum. A company 
 sending a magnificent and costly vessel over a stormy ocean for 3,000 or 4,000 miles 
 receives less for carrying the mail than a stage-coach running on an unimportant in- 
 land route.' 
 
 " The losses sustained by the United States by the decay of American shipping is 
 
 "Appendix "A" is added, being a report by Consul Grain, of Milan, on the bistory 
 and extent of subsidies granted to ocean steam-sliips by various countries.
 
 THE UNITED STA I ES AND LATIN AMERICA. 257 
 
 tbu8 briefly ami clearly stated by tlie N( ^v York Cbamber of Commerce, Jnmiary 16 
 
 1882: 
 
 "To the Chamber of Commerce: 
 
 "' Your committee, appointed to take into consideration the subject of 'American 
 Shipping ' engaged in foreign trade, for the purpose of recommending such legislation 
 as would tend to its revival and improvement, respectfully report : 
 
 " 'That the actual state of American shi|)ping, and its tendency to a still more ab- 
 ject condition, seems to be admit'ted bj- all persons and parties, and your committee is 
 cheered to find an almost unanimous desire that, by some process and action, it shall 
 be revived. And, further, without eutering upon the specific remedy, it seems to be 
 admitted on all sides that the remedy is only to be found in some kind of legislative 
 action by the Congress of the United States. Your committee incline to add to this 
 legislation by the States in addition. In listening to the various opposing opinions 
 and sentiments which have been brought before them, your committee have been 
 struck with the much more extended nature of the evils which arise from a loss of 
 our mercantile uiariue than would occur to one who has not studied and pondered on 
 the subject. They would briolly enumerate some of tie principal ones, for the best 
 remedies will be those which correct all or the most of these, and it is quite certain 
 that some of the proposed remedies will not alfect or correct them fully. We will 
 classify these as direct and consequential, as follows : 
 
 "* DIRECT. 
 
 " ' 1. The loss to the country of the freights earned by the vessels, now estimated 
 as the proportion actually paid to foreign vessels, at least to the sum of .$100,000,000 
 per annum. 
 
 " ' 2. The loss to the country of the industry of building and repairing the additional 
 tonnage that may be required for this carryiug trade. 
 
 *' ' 3. The loss to the nation of its naval militia, which its mercantile marine should 
 constitute. 
 
 "'4. The loss of an important and valuable commission business, and the large 
 trade and industries of ship-chandlers, sailmakers, shipsmiths, and nnmeroas articles 
 used in the construction and running of vessels. 
 
 " ' INDIRECT OR CONSEQUENTIAL. 
 
 " * 1. The loss of ship-building establishments, which, with the gradual withdrawal 
 of orders, languish and are finally closed, and thus even the proper facilities for per- 
 manent repairs be lost, and in time of war leaving us crippled and helpless, until such 
 establishments could be created; and likewise the loss of the educated ship-buildera 
 attached to such establishments. 
 
 "'2. The loss of educated seamen. That this is now taking place cannot be 
 doubted, and that it will continue and increase cannot be denied. American boys 
 will not see the same attraction and inducement to ship under foreign flags, where 
 the life, regulations, laws, and puuishments are all foreign, and without appeal to his 
 own authorities. 
 
 " '3. The loss of educated managers of ships and lines of vessels. A moment's reflec- 
 tion will show that it is an educated talent to bo able to eflSciently man, equip, and 
 manage vessels. One who understands the business would make a line a success, 
 under the same conditions that another equally honest but without experience would 
 fail under. 
 
 " ' 4. The loss of a very important amount of insurances, not only on the vessels and 
 freights, but also on cargoes frequently purchased by the owners to supply freights 
 when markets are dull, the insurances on which generally are effected at the home 
 port of the vessel. * 
 
 S. Ex. 54 17
 
 258 TRADE AND TRANSPORTATION BETWEEN 
 
 " ' It will thus be seen that the mere holdiug of vessels by American capitalists will 
 not alone meet the requirements of the case. 
 
 " ' It is claimed by all parties and denied by no one that, in addition to the differ- 
 euce in the first cost of vessels in their construction and of the running expenses, such 
 as cheaper wages, provisions, and insurance, American ship-owners are burdened with 
 certain existing laws and regulations not exacted or required in other countries, and 
 hence that, even if the cost could bo equalized, the expenses attendant on the laws, 
 &c., referred to would render the effort to compete useless.' 
 
 " The New York Tariff" Convention of November 'M, 1881, passed resolutions, from 
 which we quote : 
 
 '" Our Government should treat American mail-carriers on the sea, going to foreign 
 ports, exactly as it does its mail-carriers on the land, making no distinction between 
 ft, ship in the foreign trade and a railroad car or a coast steamer. Our foreign carry- 
 ing trade should be built up through the adoption, by our Government, of a policy 
 similar to that by which Great Britain and other European Governments have built 
 up their merchant marine — a policy broad, comprehensive, and equitable, such a 
 policy as will induce the investment of capital in ships built iu American ship-yards 
 and by American labor. This convention urges upon Congress the importance of 
 taking immediately such wise legislative action as this great national interest de- 
 mands to bring it again to that i)osition which is due to it and the nation itself.' 
 
 "The National Tariff Convention, held at Chicago, November 15, 1881, adopted reso- 
 lutions on the upbuilding of our commercial marine, from which we quote the fol- 
 lowing : 
 
 " '2. The United States should make American vessels the carriers of American mails 
 at rates proportionate to the value of the service performed without regard to the 
 rates at which foreign vessels subsidized by their own Governments may be willing 
 to carry them. [Applause.] 3. The United States should regard an American com- 
 mercial marine as a basis of an American Navy and an integral element of our Ameri- 
 can nationality, and should so discriminate in favor of American vessels, especially 
 of those which are striving to extend American trade to new countries, as would 
 secure to them a fair and lucrative share of the world's carrying trade proportionate 
 to the dignity and power of the country in other respects.' 
 
 " The national convention of ship-owning and other commercial bodies, held at Bos- 
 ton, October, 1880, passed the following resolution : 
 
 " ' Tha*i the Government assist in the establishment and maintenance of American 
 lines of steam-ships built and owned in the United States, from our own ports to im- 
 portant foreign ports, by the payment of proper sums of money for the transporta- 
 tion of mails to such lines as will render the most effective service ; and without 
 which substantial aid such lines, so important to the progress and prosperity of the 
 nation, cannot exist in competition with the subsidized steam tleets of other coun- 
 tries.' 
 
 " * The enlightened policy by which rapid communication with the various distant 
 parts of the globe is established by means of American-built sea-steamers, would find 
 an ample reward in the increase of commerce and in making our country and its re- 
 sources more favorably known abrojid ; but the national advantage is still greater — 
 of having our naval officers made familiar with steam navigation, and of having the 
 privilege of taking the ships already equipjjed for immediate service at a moment's 
 notice — and will bo cheaply purchased by the compensation to be paid for the trans- 
 portation of the mail in them, over and above the postages received.' (President 
 Polk's annual message, December 7, 1847.) 
 
 " ' Our farmers and planters, under a more just and liberal commercial policy, are 
 finding new and profitable markets abroad for their augmented products. 
 
 " ' The contracts for the transportation of the mail in steam-ships convertible into 
 war steamers promise to realize all the benefits of our commerce and to the Navy 
 Mhich were anticij)ated. The first steamer thus secured to the Government was
 
 THE UNITED STATES AND LATIN AMERICA. 259 
 
 launched in Jjinuary, 1047. There are now bcvcu, and in another year there will 
 probably \>c not loss than sovonteen afloat. While this great national advantage ia 
 secured our social and commercial intercourse is increased and promoted with Ger- 
 many, Great Britain, aud other parts of Europe.' (President Polk's annual message, 
 December T), 1848.) 
 
 " General Grant recoumiended this measure in his annual messagosof 1870 and 1871. 
 
 " ' Nothing is clearer than that it is for the interest of this Government to employ 
 American in preference to foreign steamers for the conveyance of our mails, if they 
 can be secured on the terms authorized by law ; but whether this may bo done is a 
 matter of doubt.' (Aaron V. Brown, Postmaster-General's report, December 4, 1855.) 
 
 "'As regards the superiority of the English ocean conveyance, so long as they are 
 enabled by large subsidies to keep vessels of great speed regularly in the service the 
 year round, they will continue, as heretofore, to carry much the largest part of the 
 mails, and will of course continue to realize a correspondingly large proportion of the 
 sea postage.' (J. Holt, December 1, 1860.) 
 
 "Mr. Cresswell also recommended it. 
 
 "'In the absence of a direct mail service to Brazil, all correspondence for that 
 country and adjacent South American States has to take the circuitous route via 
 England and thence by British mail packets to Rio de Janeiro, thus involving very 
 serious delays. 
 
 !' ' The maintenance of one or more lines of direct mail steam-ship communication 
 with Brazil is very important to our postal and commercial interests. While there 
 exists, at present, no regular line of mail steamers inlying between this country and 
 Brazil, I am credibly informed there are as many as ten lines of direct steamers — 
 English, German, and French — plying regularly between European and South Ameri- 
 can ports. 
 
 " ' The fact that but one line of steamships carrying our Hag is employed in convey- 
 ing the United States mails across the Atlantic, and none whatever to South America, 
 is humiliating to the just pride of every American citizen. 
 
 " 'As a matter of national pride, as an aid to the revival of American commerce, and 
 as a means of supplying an efficient steam marine, available for immediate use by the 
 Government in case of war, provision should he made for the transportation of our 
 mails on important ocean routes in steam-shii^s officered and manned by our own citi- 
 zens and sailing under our own flag. 
 
 " 'It is believed that the payment of a moderate mail compensation, in excess of 
 the postages now allowed under the provision of the general law, would enable our 
 citizens to establish and maintain steam-ship lines across the Atlantic and to South 
 American ports, which would prove remunerative to the proprietors and promote the 
 general prosperity of the country. A reasonable allowance for a line to the west coast 
 of South America would assure regular mail communication by American steamers 
 with our sister republics on that coast, and a moderate mail compensation for a line 
 to Japan and China will doubtless, continue the mail service to those countries in 
 American ships after the termination of the existing subsidy contract, which will 
 expire on the 31st of December, 1876. I think it safe to say that the sum of $500,000 
 per annum, now granted as a subsidy to the Japan and China line for a single monthly 
 service on that route, would, in addition to the postages on the mails convoyed, be 
 quite sufficient, judiciously apportioued between the respective routes, to maintain 
 an efficient mail service, by steamers sailing under our flag, on all the important ocean 
 routes which should be occupied by linos of American steamers.' (Marshal Jewell, 
 Postmaster-General, November 15, 1875.) 
 
 " Senator Bayard, debating the subsidy to the Collins line in 185'2, said : 
 
 " ' I am willing to trust American skill and industry in competition with any people 
 on the globe, when they stand nation to nation, without Govornnieut interference. 
 But if the treasury of a foreign nation is poured into the lap of individuals for the 
 purpose of destroying the interests of my country, or for building up a commercial
 
 260 TRADE AND TRANSPORTATION BETWEEN 
 
 marine at the expense of the commerce and prosperity of the United States, I, for 
 ono, will count no cost in countervailing such governmental action on the part of 
 Great Britain or any foreign power, 
 
 " ' It has been ol)jected that these grants create a monopoly. ♦" * * If the argu- 
 ment be true, I ask you if it does not apply to the transportation of your mails by 
 l.ind. • » • Then the whole Government action is a series of monopolies as re- 
 gards the ' Post-Ofhce service.' 
 
 " He then argued that it was not monopolj', but American competition against 
 British monopoly. 
 
 " ' Will you adopt a policy which will place the entire transportation of your 
 jnails under their (Brili.sh) control ; which will put into their hands the transporta- 
 tion of passengers: which will lay a tax on American citizens for the advancement of 
 British commerce, their freights, etc. f Such may be the jiulgment of the honorable 
 Senator, but it is not mine, and I trust it will not be that of the American Senate. 
 
 " ' The luail-strvice in this and in all countries on land is a Government duty, and 
 with all great maritime nations which have the power to control that service on the 
 of^ean, it is as much a Government duty, where their maritime interests are concerned, 
 where their extensive commerce is concerned, as is on land the proper transportation 
 of correspondence. The mail-service with foreign couutries, on any principle that I 
 can appreciate, is as much a governmental duty, and demands as much the expendi- 
 ture and the attention of the Government as transportation of correspondence in the 
 interior of the country.' 
 
 "Mr. Badger, of North Carolina, on Collins subsidy, said the question was one of 
 ' controlling importance ; ' it is a ' mighty, peaceful, and important contest between 
 the United States and Great Britain for supremacy ; ' and that ' the question whether 
 we would voluntarily surrender that which, to obtain and perpetuate. Great Britain 
 would, without hesitation, sacrifice one hundred times the amount of money in- 
 volved.' • • » 
 
 " ' I do not believe that money is devoted to its proper purpose by being hoarded. 
 I do not believe that money exjiended to advance the honor, promote the interests, 
 to maintain the supremacy, of my own country, is ever otherwise than well and eflfect- 
 ually bestowed, bringing that return which nations should consider as the highest 
 and best — the improvement of the condition of their people, the elevation of the 
 character of the whole; for with regard to nations the reputation of strength is 
 strength.' 
 
 " Lewis Case, in 1852, on the Collins subsidy, said, in the United States Senate: 
 " ' Well, sir, it is a question of protection — of high and important and holy protec- 
 tion—in the best sense of the term ; the protection of our country, of our expatriated 
 seamen, of our commerce, of our interests, of our honor, of our soil, of all that gives 
 dignity and character to nations; protection against defeat, disgrace, and dishonor. 
 " ' This kind of protection to our commerce is as effectual as the protection afforded 
 by expensive naval armaments.' 
 
 " Humphrey Marshall, of Kentucky, in 1852, said he would vote for a subsidy to a 
 line of mail steamers to ' maintain a nursery for our Navy,' and ' to maintain a com- 
 petition with the British lines.' 
 
 " Senator Jones, of Tennessee (Collins subsidy) : 
 
 "• Ishouldrcgardit asanationalmisfortune if theenterpriseehouldfail. • » • j 
 am willing to vote large and liberal allowance.' 
 
 " Senator Shields spoke strongly in favor of the subsidy and said it was ' impo8,siblo 
 for American private enterprise to succeed against private Britisli enterprise, backed 
 by the money and energy of the British Government.' 
 
 "Senator Bell, of Tennessee, spoke in favor of the subsidy, and said, 'I feel that 
 the honor of the country is concerned in it and » * * that the national spirit ia 
 kept alive by it.' 
 
 "Mr. Hale, of New Hampshire, spoke and voted in favor of it.
 
 THE UNITED STATES AND LATIN AMERICA. 261 
 
 THOMAS BUTLER KING'S REPORT, HOUSK OF REPRESENTATIVES, TWKNTY-NINTII CON- 
 GIUCSS, FIRST SESSION, 1846. 
 
 " ' Within scveu years after the firststeamer crossed the Atlantic Great Britain bad 
 more than two hundred war steamers. 
 
 " ' If not compatildo with our institutions or interests to keep a largo Navy it is 
 inii)nrtant to devise some way, by small outlay, to prepare ourselves for the contin- 
 gency of war. 
 
 " * If asked why Great Britain has thus taken the lead of us in ocean steam naviga- 
 tion, while we are so greatly superior in domestic steamers and sailing ships, the 
 answer is that she has anticipated us through the extension of her mail system to foreign 
 cou7itries, in combination with her naval arrangements, thus rendering it almost im- 
 possible for private enterprise to enter into competition with her.' 
 
 " The House had already passed a bill to establish a line of four steamers from New 
 York to Bremen. 
 
 MR. SOUL^'S REPORT TO SENATE, FIRST SESSION THIRTY-FIRST CONGRESS, 1850, 
 FROM COMMITTEE ON POST-OFFICEd AND POST-ROADS. 
 
 " 'The committee believe that the fostering care of the Government may be ex- 
 tended to these great interests (agriculture and manufactures) by judicious and well- 
 regulated arrangements through the Post-OfHce Department * * * by which 
 present and future means of maritime defense are increased and encouraged.' 
 
 rusk's report to the senate from the committee ON POST OFFICES AND POST- 
 ROADS, THIRTY-FIRST CONGRESS, FIRST SESSION, 1850. 
 
 " 'The importance of steam mail service when considered with reference to the 
 convenience which it affords to the social intercourse of the country is as nothing 
 when compared with its vast bearing upon the commerce of the world. Wherever 
 facilities of rapid travel exist trade will be found with its attendant wealth. • • * 
 The commercial history of Great Britain has shown that mail facilities have uniformly 
 gone hand in hand with the exteusiou of trade. » » » With a view to this we 
 have seen England increasing her steam marine at enormous expense and sustaining 
 packet lines connecting with every quarter of the globe, even in cases where any 
 imviediate and direct remuneration was out of the question. 
 
 " 'To construct ships and keep them in our navy-yards, subject to the injuries of 
 time and casualties, does not consist with the notions of the American people on the 
 score of economy. Nor is it in accordance with the received opinions in regard to 
 the propriety of placing excessive patronage in thehands of the Federal Government. 
 
 " 'At the same time it is in perfect unison with the spirit of our free institutions 
 that the arts of peace shall bo made tributary to the purposes of defense, and that 
 the same energies which extend the commerce aud manufactures of our country shall, 
 in the event of necessity, be capable of being made use of for our protection. 
 
 "'We have the example of the most powerful maritime nation in the world to 
 guide us in the matter.' 
 
 REPORT OF MR. RUSK, FROM THE COMMITTEE ON POST-OFFICES AND POST-ROADS, 
 THIRTY-SECOND CONGRESS, FIRST SESSION, 1852. 
 
 " ' Your committee seems to have understood at the outset that, regarding the ocean 
 mail-service as the offspring of the wants of all the producing classes of the country 
 they have not felt at liberty to consider the propositions which have been presented 
 to them in any other point of view than as connected with and subservient to the 
 general policy of the Government, which embraces alike every section of the country. 
 
 "'The commercial interests of the country were entirely at the mercy of British 
 steamers. * * • It became necessary to choose whether American commerce
 
 262 TRADE AND TRANSPORTATION BETWEEN 
 
 should be tributary to British marilimo snprotnacy or an American medium of com- 
 munication sbonkl be established by the intervention of the Federal Government. 
 
 " 'It had been found impossible for our merchants to continue successfully, single- 
 handed, against the joint eflbrts of the British Government and British commercial 
 influence. 
 
 " ' Under the circumstances above stated it was impossible for Congress to hesitate 
 for a moment which course to pursue, and it was determined to adopt a policy which, 
 while it would be in strictaccord with the spirit of our free institutions, shoulil place 
 the country in its proper attitude and render its commerce and postal arrangements 
 independent of all foreign or rival agencies. 
 
 " 'The American line from New York via New Orleans toChagres, under subsidy, 
 drove out the British lino which had previously plied our southern coast. 
 
 " ' This important subject is a matter of great national concern, independent of the 
 very secoudary motive of individual interest. 
 
 '"These ocean mail facilities should exist through the intervention of the Govern- 
 ment, more especially as they were, in all probability, beyond the reach of private 
 means. 
 
 '"The transportation of ocean mails with the greatest possible advantage to the 
 important interests of the country at large is an object of paramount importance. 
 
 "' Merely as a matter of dollars and cents the service in question should be liberally 
 sustained by Congress and will in the end make ample returns. 
 
 '" But your committee regard this proposition as one the mere money features of 
 which are of minor consequence when brought into comparison with other more im- 
 portant considerations. 
 
 •' ' The question is no longer whether certain individuals should be saved from loss 
 or enabled to make fortunes, but whether the American shall succumb to the British 
 lines and Great Britain be permitted to monopolize ocean steam-navigation not only 
 betweeu Europe and America but throughout the world.' 
 
 "The committee regard ' the existence and rapid extension of the system of ocean 
 mail steam navigation as absolutely essential to the dignity and prosperity of the 
 country.' 
 
 " ' In any future struggle for superiority on the ocean the contest will be decided by 
 steam. England realizes this aud acts accordingly ; to rival her power and prosperity 
 we must rival her energy and her activity.' 
 
 "MR. ward's RKPORT— SKNATE, 1859, THIRTY-FIFTH CONGRESS, SECOND SESSION. 
 
 "The Government of Mexico had contracted with Carlos Butterfield for a line of 
 steamers from New Orleans to Mexican ports at $1'20,0U0 per annum for ten years. 
 The committee thought the increase of duties on increase of commerce would pay the 
 subsidy. 
 
 " A letter from the Postmaster-General, Aaron V. Brown, to the committee says: 
 •Frequency, certainty, and regularity of intercourse betweeu countries are the great 
 life-springs of commerce.' The trade can be secured in ' no other way so well as by 
 the increase of commercial aud postal facilities.' 
 
 "MR. wood's report, 1859. 
 
 " In the second session of the Thirty-fifth Congress, 1859, Mr. Wood, from the Com- 
 mittee on the Post-Oflice and Post-Roads, reported a bill to advance bonds for two- 
 thirds of the value of ocean steamers to carry the mail, and gave besides $'2 per mile 
 traveled — aid having been given to the Howard and Aspiuwall steamers to San 
 Francisco, the Law steamers to Chagres, the C<dlius steamers to Liverpool, and the 
 Bremen and Havre lines, the Government having advanced $25,000 per month on 
 each steamer until they were fiuished, deducting the advance annually from the whole 
 term of the contract. 
 
 " He declared these steamers but the continuation of the railroads, the great arteries
 
 THE UNITED STATES AND LATIN AMERICA. 263 
 
 of trade to the shores of Europe. Tbe whole country was iuterested, he said, in this 
 truly national line of steamers. 
 
 " MR, WELLS'S REPORT, 1871, FORTY-FIRST CONGRESS, THIIH) SESSION. 
 
 " Mr. Wells, from the Select Conunittee on the Cause of the Reduction of American 
 Touiiago, made a report, and, as a remedy, rccouimended the 'granting of Govern- 
 ment aid by way of postages on mails and by subsidies, so as to insure tbe establish- 
 ment of American ocean liucsof steamers to foreign ports, thus securing to our people 
 the profits of the trade so created.' 
 
 " He said ' the establishment of a line of steamers from New Orleans to Mexican ports 
 would vastly increase our commerce and cultivate friendly political relations.' The 
 British policy of mail subsidies he calls a 'judicious system.' 'So long as the policy 
 of government aid is pursued by Great Britain and France no successful competition 
 can be maintained here unless our Government, equally generous, will place our 
 business interest on such a footing that we can combat for the supremacy, or at least 
 for a fair division.' 
 
 " Mexico, in 1859, gave $120,000 per annum subsidy for ten years, but we did not re- 
 spond. In 1870 she gave a New Orleans line $750 per trip, and we did not second 
 that. 
 
 " ' No people on earth, as well as those of the United States, understand so fully the 
 vast wealth developed and created by railroad lines. The analogy is pei feet as to 
 ocean routes. They are the railroads of the ocean, making the world pay tribute to 
 us, and creating vast markets for our products and manufactures. We give millions 
 to the one ; shall we hesitate at a few thousands for the other T' 
 
 "The way to avail ourselves of our proximity to Central and South America is to 
 substitute our own steamers for the wealthy lines of European countries. 
 
 " The transfer of our carrying trade to foreign bottoms is, in the opinion of the com- 
 mittee, to be attributed mainly ' in the great development of the English and French 
 steam connnercial marine, more especially in American waters, a development which 
 has been stimulated and is sustained by a liberal system of subsidy.' 
 
 " The aggregate subsidy paid by European governments to steam'mail lines to Amer- 
 ica was then (1871) $4,500,000 per annum. 
 
 " MR. cole's REPORT TO SENATE FROM COMMITTEE ON POST-OFFICES AND POST- ROADS, 
 FORTY-SECOND CONGRESS, SECOND SESSION, 1872, ON BILL AUTHORIZING AN IN- 
 CREASE OF OCEAN UNITED STATES MAIL STEAM-SHIP SERVICE BETWEEN SAN FRAN- 
 CISCO AND CHINA. 
 
 " * By refusing to help our own lines of steam-ships we are helping to maintain those 
 which will drive our few remaining lines from the ocean by the payment of postages 
 amounting to hundreds of thousands of dollars annually, and by the payment of still 
 larger sums of freight and passage money, which would come back to us in the hands 
 of our citizens, if proper governmental aid should be judiciously granted to our home 
 companies. 
 
 *♦ * It is no local question. The whole country is interested in the Buccess of the enter- 
 prise. 
 
 " * While taxing our citizens to foster the manufactures, is it wise to refuse the aid 
 necessary to keep our steamers from being driven from the ocean T' 
 
 •' MR. cole's REPORT TO SENATE, FORTY-SECOND CONGRESS, SECOND SESSION, JANU- 
 ARY, 1872, ON A BILL TO ESTABLISH OCEAN MAIL SERVICE TO AUSTRALIA AND NEW 
 ZEALAND. 
 
 " The committee recommends the bill to 'open up the vast commerce which rightly 
 belongs to and should be secured by American enterprise.' 
 
 " 'Your committee are of the opinion that it is tbe plain duty of this Government to 
 at once secure to American ships and American enterprise their due proportion of this 
 great and growing commerce of the Pacific'
 
 264 TKADK AND TRANSPORTATION BETWEEN 
 
 "The Secretary of tlio Treasury, in Lia report, November, 1871, advocates the meas- 
 ure, and says ' otherwise it is impossible for our merchants to compete with subsi- 
 dized English lines.' 
 
 "MR. HAMLIN'S REPORT TO SENATE COMMITTEE ON POST-OFFICES AND POST-ROADS, 
 SECOND SESSION, FORTY-SECOND CONGRESS, FEBRUARY, 1872. 
 
 " ' The propriety and expediency of giving aid to American steam-ships to carry 
 ocean mails and to promote American commerce has often been considered by your 
 committee. 
 
 " * When it is considered that England, in facilities and in cost of labor or material 
 and interest on required capital, possesses advantages in the cost of constructing 
 ships, &c., and when it is also considered that England gives large subsidies to es- 
 tablish and continue lines of steam-eliips, it becomes apparent that she is rapidly mo- 
 nopolizing ship-building and the commerce of the seas. It is also apparent that unless 
 immediate and efficient aid i.s speedily given by the Government our entire foreign 
 trade and commerce will in a short time pass into the control of British ship-owners, 
 or into the hands of other foreign nations who have subsidized lines of steam-ships.' 
 
 " The report sofour consuls tell the saniouuiforiu and doleful story of our commercial 
 decadence; how the sailing ships of the United States disappear from foreign porta 
 and vanish from the seas before the fast steamers of Great Britain, and even other in- 
 ferior powers, like smoke before a gale. With 15,000 miles of coasts, studded with 
 the richest cities in the world, we have neither the merchants' ships to supply their 
 wants nor the navy to defend them. Two ships of one of several European powers 
 could ravage our coast, levj' contribution upon our cities or destroy them, from Port- 
 land to Corpus Christi. If we can not support a costly navy, let us at least encourage 
 the plant in material and men to improvise a navy if war should demand on©. 
 
 " As your committee stated in the outset, the consideration of this measure leads us 
 to others cognate to it and momentous in importance to our commercial and political 
 future. Treating this as a postal question, we can see no reason why a fair compen- 
 sation by contract should not be paid as well for ocean as for land transportation of 
 our mails. We believe that the national prosi)erity, the national safety, and the 
 national honor are all concerned ; and while gentlemen are taxing their ingenuity to 
 reduce our plethoric income, we can not see what better use can be made of a part of 
 it than carrying our mails to foreign ports for the upbuilding of our commerce. We 
 believe the passage of this bill will meet the approval of the people of our Republic, 
 and that its defeat will create tlie profoundest satisfaction in Great Britain, who, safe 
 in the feeble supineness of her former rival, has annually, by carrying our commerce, 
 taken millions of dollars from our shores." 
 
 In conclusion, the committee ask attention to the following remarks by the Admiral 
 of the Navy of the United States, taken from the report of the Secretary of the Navy, 
 at the opening of the present Congress: 
 
 THE MERCANTILE MARINE— ITS NECESSITY TO THE NAVY. 
 
 " I have long looked forward to the time when Congress would take some steps 
 towards resuscitating our mercantile marine, which has long been languishing for the 
 want of Government aciion in its behalf. A largo number of merchant steam-ahips 
 would in time of war be an important adjunct to our regular naval force, for many of 
 them would, with comparatively little alteration, make the best commerce-destroyers 
 in the world, and also the best destroyers of commerce destroyers. 
 
 " Two of the most formidable vessels of this kind in the Russian navy were built 
 by Cramp & Sons, of Philadelphia, for the merchant service. They carry a large 
 amount of coal and provisions, and, in case of necessity, conld run away from the 
 fastest cruisers. 
 
 " If we ever succeeded in building up a mercantile marine the Navy would feel as- 
 sured that the vessels would obtain the best speed. We were the firat nation to build
 
 THE UNITED STATES AND LATIN AMERICA. 265 
 
 large and fast steamers, and would not feel satisfied until wo bad outstripped tbobest 
 vessels now alloat. 
 
 •' It is only necessary to glance at tbc list of fast mercbant steamers belonging to 
 Enubmd, France, and Germany to see wbat an influence they must exert in a war 
 with a commercial nation. England alone would cover tbe ocean, witb tbc aid other 
 coal mines, as she did formerly witb her canvas, and commerce-destroyers of other 
 nations, unless they bad great speed, would bo gathered in with perplexing rapidity. 
 Th.-re is no part of tbe world where the British flag does not float over some fast and 
 powerful steamer, all ready in case of necessity to be converted into a ship of war, 
 and after receiving her commission and guns, witb a trained crew, she would be ready 
 in a few weeks to go forth on her mission of destruction. Many of these British 
 steamers are running to our shores, and we pay them a yearly tribute of $130,000,000 
 for carrying our produce and passengers to Europe. Great Britain, by giving every- 
 possible encouragement to her commercial marine, adds enormously to tbestr«ngth of 
 her navy in time of war, and makes her ocean steamers not only their own protectors, 
 but tbe destroyers of her enemies. This great fleet of steamers has been built up by 
 subsidizing the lines until they are able to do-without such assistance. 
 
 " No wonder Great Britain has become the great commercial nation of the world, and 
 made all other nations pay tribute to her for carrying their products. Her statesmen 
 do not raise tbe cry of ' taxing the people' when asked to assist some proposed steam 
 line to enter upon its career. They do not waste precious time in investigating mat- 
 ters which should be plain to tbe commonest understanding, but are ready to spend a 
 million of dollars so that twenty millions will flow into British coffers. Instead of 
 taxing our people by subsidies, ' we are making them lose over three hundred mil- 
 lions a year in the last ten years.' (See Secretary Frelinghuysen's letter on the com- 
 merce of the world.) , 
 
 "From 1872 to 1882 British imports were $18,363,340,000; exports $13,.566,6(;i,000 ; 
 showing a balance of trade against her of $4,79(5,670,000; three times the amount of 
 our national debt. We have paid a large share of this bounty to British mechanics, 
 and not a dollar of it has remained in this country. The position wc hold in the car- 
 rying trade of the world is simply humiliating; it is absolute dependence and sub- 
 serviency ; and wo lose by it a large fleet of fast steamers that would equal or exceed 
 for many purposes in time of war any that we could build in the Navy. • 
 
 " The first step to be taken to remedy these evils is to establish a Government Board 
 of Trade to represent the wants of our commerce and make such recommendations 
 from time to time as would tend to bring our commercial marine to its proper standard, 
 enabling us to carry a large share of our exports and imports. This Board of Trade 
 should be connected witb the Navy Department, and the Secretary of. tbe Navy 
 should have supervision over all ocean steam lines, to see that their vessels were con- 
 structed with proper strength and swiftness to render them capable of conversion 
 into ships of w ar. 
 
 "There would be no necessity for subsidizing our lines of steamers further than by 
 paying them a liberal compensation for carrying all our mails ; so we would hear no 
 more of the cry of 'taxation' which is raised by British lobyists every time Con- 
 gress makes any attempt to revive our commercial marine. This cry of 'taxation' 
 might be urged with far more force against our tarifi", Avhich is imposed to protect our 
 home industries, and which is ten times more onerous than any subsidy ever likely to 
 be given to our steam lines. 
 
 " If it was not for her great ocean steam lines Great Britain would require ten times 
 the number of vessels iu her Navy that she has at present, for her coast must be de- 
 fended against all Europe, aud her mercantile marine protected, no matter wbat tbe 
 expense. She extends her arms over it as a mother would over her children. 
 
 "In 1849, when the great exodus to the California goldmines took place, Congress, 
 seeing the great advantage of such a course, established a line of mail steamers from 
 New York to the Isthmus of Panama, and thence to San Francisco, stopping at in- 
 termediate ports. There was no hesitation in ai)piopriating a large amount of money
 
 266 TRADE AND TRANSPORTATION BETWEEN 
 
 for carryinj; tho niJiils. Congross did not consider it a subsidy, for tlie country re 
 ceived iu return twenty times the value of the amount expended on these steam ves- 
 sels. I myself commanded one of the mail steamers, and during three years carried 
 about 86,000 passengers and |82,000,000 in gold. But for that action on the part of 
 Congress no company could have afforded to start such expensive ships. The British 
 would have absorbed all that trade, and the profits would have gone to Great Britain, 
 not to the United States. The result of that action was we held that line of steam- 
 era and others until the Pacific Railroad was built, and for once iu our lives we kept 
 a trade exclusively American in our own hands. There were no British ships in 
 competition at that time, or we would have heard the same outcry against ' subsi- 
 dies ' from American agents of foreign steam lines, who fear the competition of our 
 countrymen. 
 
 "Who can overestimate tho importance of those steam lines to California? We 
 gained actual possession of a great country, with its enormous wealth in minerals. 
 Within a year a great city sprang from the barren hills as if raised by an enchanter's 
 wand, and the wealth of California has made our Eastern cities grow and prosper in 
 a manner that the world has seldom witnessed before." 
 
 Appendix A. 
 
 SUBSIDIES TO STEAM-SHIPS IN EUROPE. 
 
 Jiejiort by Consul Grain, of Milan, on the history and extent of subsidies granted to ocean 
 steam-ships by France, Austria- Hungary, Spain, England, Belgium, Holland, Sweden, 
 Norway, Italy, and Germany. 
 
 The Government at Rome, for its guidance iu the preparation of measures to aid 
 the Italian commercial marine, has recently caused investigations touching past and 
 present subventions to merchant steamship lines by other nations. The data furnished 
 by these researches embrace the history and extent of subsidies as to most European 
 countries, and the scope of the various lines. 
 
 FRENCH SUBSIDIES. 
 
 The law of August IG, 1879, authorized the minister of the postal and telegraphic 
 department to accord au annual subvention of 1,200,000 francs for a period of fifteen 
 years to steam-ships which should run the following lines : Line from Port Vendres to 
 Algiers; Algiers to Bona; Marseilles to Orau ; Port Vendres to Oran ; Marseilles to 
 Philippeville ; Marscllles-Bona to Tunis ; Tunis to Tripoli. 
 
 The principal conditions were that a now semi-montlily lino should be established 
 between Orau and Taugiers, touching Nemours, Malaga, and Gil)ralta, and optionally 
 Molilla ; that the service of the aforesaid lines siiould bo weekly, going and returning, 
 except for tho Marseilles-Algiers and Marseillos-Pliilippeville lines, which should be 
 semi-weekly; the ships to be new or seaworthy, of not less than 400 tons register 
 for voyages between France and Algiers, and of 200 for voyages along the Barbary 
 coast ; to be run according to the line, 12, 10, or 9 knots per hour, with a forfeiture of 
 50 francs per hour for every delay not justified. TJio act of concession also regulated 
 the mail service, treatment of passengers, transport of merchandise, etc., and exacted 
 350,000 francs security; it stipulated that the payment of subsidy be monthly, but 
 forbids tlie company to cede any part of the service to another without the express 
 consent of the minister. The service was assumed by the General Transatlantic 
 Company from July 1, 1880, to June ;50, 1885, for an annual subsidy of 493,500 francs. 
 
 From February 20, 1858, Mr. Marziou, director of the Union Maritime Company, 
 was the recogni25ed grantee of the transatlantic postal service between France, the
 
 THE UNITED STATES AND LATIN AMERICA. 267 
 
 United States, and tlio AutilU^H, operatod l)y two liin^.s, one from Havre to New York, 
 the other from St. Nazairo to tlio Antilles and Asplnvvall, with subHidiary lines to 
 Guadeloupo, to Mexico, and Caen. Afterwards Mr. Eniile Periere (Mr. Marziou hav- 
 in<; given np the serviie), under the law of June 7, 1857, accepted in the name of the 
 Transatlantic Company a contract, of which the following are the principal clauses : 
 A concession of a subsidy of 1),:}00,()UO francs per year, for twenty years, reduced, 
 liowever, by 600,000 francs per year until the actual running of the Mexican line, 
 and with a clause that the twenty years should begin only from the date that all the 
 lines were in operation, Mr. Periere to have the following steamers: Five of 850 
 horse-power; six of 600 horse-power; live with a total of 875 horse- power ; three 
 each 200 horse-power ; one of 150 horse-power ; one of 125 horse-power. 
 
 Mr. Mallet, in behalf of the Credit Mobilier, guarantied the emission of 32,000 
 bonds and 32,000 obligations of the said company. 
 
 The Government stipulated not to subsidize any lines between the coast of New- 
 foundland and the mouth of the Amazon, and that whenever a direct line to New 
 Orleans and Havana should appear feasible it would first negotiate with the Trans- 
 atlantic Company, and in case of non-agreement would pay an indemnity, to be fixed 
 by a commission, for damages resulting from the competition. The company bound 
 itself to make a discount of 30 per cent, for the transport of civil, military, and 
 ecclesiastical functionaries, for sailors and soldiers of the colonies ; 7 francs per day 
 was agreed upon for transport and maintenance. The annual distance to be run 
 was fixed at 157,968 marine leagues, divided thus : For the semi-monthly line from 
 Havre to New York, 55,016 leagues; St. Nazaire to Martinique, Martinique to Santa 
 Marta.or Cartagena, Santa Marta to Aspinwall, 78,672 leagues. For the monthly 
 line from Martinique to Santiago de Cuba, Santiago de Cuba to Vera Cruz, Vera Cruz 
 to Tampico, Martinique to Cayenne, 27,080 leagues. The average speed to be 11^ 
 knots for the New York line, 10 for the Antilles and Aspinwall, and 8 for the others. 
 
 At the time of the expedition to Mexico there was established by couA^ention of 
 February 17, 1862, a monthly voyage from St. Nazaii'e to Vera Cruz, with a subvention 
 of 310,000 francs going and returning, the company being permitted to make only a 
 monthly voyage between Havre and Mexico, the subsidy being reduced, however, by 
 1,669,220 francs. 
 
 By convention of April 17, 1865, the itinerary of the lines to the Antilles was modified 
 as follows: First line from St. Nazaire to Martinique ; Martinique to Santa Marta or 
 Cartagena ; Santa Marta to Aspinwall. Second line from St. Nazaire to St. Thomas ; 
 St. Thomas to Havana ; Havana to Vera Cruz. 
 
 The following five services were established : The first from Fort de Franco to Santa 
 Lucia ; Santa Lucia to St. Vincent ; St. Vincent to Granada ; Granada to Port of 
 Spain; Port of Spain to Demerara ; Demerara to Surinam; SuriHam to Cayenne. 
 The second from Fort de Franco to St. Pierre ; St. Pierre to Point h Pitre ; Point k 
 Pitre to Basseterre ; Basseterre to St. Thomas. The third from Fort de France to St. 
 Pierre ; St. Pierre to Point h Pitre ; Point b, Pitre to Basseterre. The fourth from St. 
 Thomas to Porto Rico ; Porto Rico to Hayti ; Hayti to Santiago de Cuba ; Santiago 
 de Cuba to Kingston. The fifth from Vera Cruz to Tampico ; Tampico to Matamoras. 
 
 On account of these onerous modifications of lines the Government abandoned the 
 penalty established by article 38 of the contract for insuflSciency of speed on the New 
 York line. A convention of March 16, 1806, established a monthly line for New Or- 
 leans, in communication at Havana with that from St. Nazaire to Mexico, and one 
 between Fort de France (Martinique) and Port Cabello (Venezuela), ^fith call at La 
 Guayra. For these two lines the Government accorded a new subvention of 131,156 
 francs for the first, and of 64,017 for the second. 
 
 A convention of February 16, l»l>8, between the French Government and the Trans- 
 atlantic Company established two new lines, the first monthly from Panama to Val- 
 paraiso, and vice versa, with the following itinerary : From Panama to Guayaquil, 
 Guayaquil to Payta, Payta to Lambayeque, Lambaye<iue to Huaachaco, Pluauchaco
 
 268 
 
 TRADE AXD TRANSPORTATION BETWEEN 
 
 to Callao, Oallao to Chiucbas, Chiucliiis to Islay, Islay to Arica, Arica to Iquique, 
 Iquiqne to Cobija. Cobija to CaUlera, Caldcra to Huasco, Uiiasco to Coquiuibo, Co- 
 j[uirabo to Valparaiso; the second monthly, from St. Thomas to Colon, touching a* 
 Porto Rico, Cnba, and Jamaica. 
 
 The subsidy was 750,000 francs per year ; the Government guarantied 5 per cent, 
 interest, authorized a capital of 60,000,000 francs and the issuing of bonds, stipulat- 
 ing, however, that the maximum of interest to be paid by the Government should not 
 exceed 2,000,000 francs, and reserving one-fourth of all profits realized by the com- 
 pany over and above 8 per cent. The state advanced 4,000,000 francs, reimbursable, 
 without interest, in fifteen yearly installments. The company bound themselves to 
 put on three new steamers, built in France, of a speed of l"2 knots per hour and 4.50 
 horse-power, and to keep always at Martinique in reserve, for inter-colonial service, 
 a steamer of at least 150 horse-power. 
 
 By convention of December 16, 1873, the subsidy was continued, the Pacific line 
 suppressed ; but in exchange 9 steamers of a minimum force of 8.50 horse- power and a 
 speed of 12^ knots per hour were required, and also two additional monthly round 
 voyages in the six months from April to November between Havre and New York. 
 
 Mr. G. B. Bcccari, in a pamphlet published at Rome in 1882, gives the following 
 table of subventions accorded by the French Government to the General Transatlantic 
 Company : 
 
 Point of departure and arrival. 
 
 Havre 
 
 New York 
 
 St. Nazaire ... 
 
 Vera Crua 
 
 Lines annexed 
 St. Nazaive ... 
 
 Aspinwall 
 
 Lines annexed 
 
 Distance 
 
 in miles 
 
 going and 
 
 returning. 
 
 6,348 
 
 11,286 
 4,509 
 
 9,834 
 
 Distance 
 
 run 
 in miles. 
 
 165, 048 
 189, 540 
 
 162, 288 
 
 516, 876 
 
 Division of 
 subsidies. 
 
 Frane$. 
 3, 170, 000 
 
 3, 451, 156 
 
 3, 074, 017 
 
 9, 695, 173 
 
 Number of 
 voyages. 
 
 12 
 
 MESSAGERIE8 MARITIME8 —MEDITERRANEAN AND BLACK SEA LINES. 
 
 The convention stipulated between the Government and the Messageries Company, 
 dated February 28, 1851, was for a term of twenty years. The annual subvention 
 was fixed at 3,000,000 francs, and after ten years was to bo diminished 100,000 francs 
 per year. By convention of January, 1852, the subsidy was made 3,076,091 francs, 
 and by a subsequent one of May 20, 1857, which by ministerial decree of June 2, 1864 
 was extended to July 22, 1888, the amount of the subsidy was raised to 4,776,118.40 
 francs for a yearly navigation of 188,300 marine leagues, divided into nine difi'erent 
 lines. First line, Marseilles to Malta, touching at Genoa, Leghorn, Civita Vecchia, 
 Naples, Messina, and Pirajus, with fifty-two voyages per year, including return. 
 Second line, Marseilles-Alexandria, touching Malta, with twenty-six round voyages. 
 Third line, Alexandria-Smyrna, touching Jatt'a, Beyrout, Tripoli, Latakea, Alexan- 
 dretta, Messina, Rhodes, with twenty-six round voyages per year. Fourth lino, 
 Marseilles-Smyrna, touching Malta and Syra, with twenty-six round voyages. Fifth 
 line, Pirajus-Smyrna, touching Syra, with twenty-six round voyages. Sixth line, 
 Smyrna-Constantinople, touching Mityleno, Dardanelles, Gallipoli, with fifty-two 
 rjund voyages. Seventh line, Marseillo.s-Constantinople, touching Messina and Pi- 
 rajuH, with fifty-two round voyages per year. Eighth lino, Constantinople-Braila, 
 touching Galatz, with thirty-six vovages per annum. Ninth line, CouBtantinople- 
 Trebizond, with thirty-six voyages per year.
 
 THE UNITED STATES AND LATIN AMERICA. 269 
 
 III the confcnict it was stipulated tli;it tho comi)aiiy have at least fifteen steamers, 
 six of 220 liorse-power or over, and nine of 160. The rules for the postal service and 
 sustenance of passengers are nearly identical with those above mentioned for the 
 Transatlantic Company. 
 
 There is, however, a clause that in case of war the Government reserves the right 
 to take possession of the company's material, paying 5 per cent, interest upon the ap- 
 proximate capital, and re-iinbursing tho appraised losses and damages. Also, in case 
 of suspension of a weekly voyage between Marseilles and Constantinople the company 
 will be bound to inaugurate a military and postal service between Algiers, Bona, 
 and Oran, transporting gratuitously, besides hitters and funds, every year 20,000 tons 
 of material and 30,000 passengers of the fourth class, including maintenance. 
 
 MESSAGERIES MAKITIMES LINE Ol*" BRAZIL-RIO DEL PLATA. 
 
 The convention of September 16, 1857, for tho postal service for Brazil for a term of 
 twenty years, went into force in 1860, was extended to 1884, and accorded a yearly 
 subsidy of 4,700,000 francs to the luessageries, with the obligation to make twice a 
 month alternately from Bordeaux and from Marseilles the following voyages: First, 
 from Bordeaux to Rio Janeiro, touching Gorea, Pemambuco, and Bahia. Second, 
 from Marseilles to Rio Janeiro, touching Gorea, Pernambuco, and Bahia. Third, 
 from Rio Janeiro to Buenos Ayres, touching Montevideo — that is, a total distance of 
 101,232 marine leagues. However, the line from Marseilles was suppressed by a suc- 
 ceeding convention of April 22, 1861, and the subsidy reduced to 2,306,172 francs, the 
 company to have ten steamers, seven thereof to be at least of 450 horse-power, and 
 three of 200, with an average speed of 9 knots per hour for the line to Brazil, and of 8 
 for the subsidiary from Brazil to La Plata. For passengers for the service, and for 
 transports, &c., are adopted the same rules as for the other lines, with express stipu- 
 lation that the contract is not to be assigned to others without the written consent of 
 the minister of finance. 
 
 MESSAGERIES MARITIMES — INDO-CHINA LINE. 
 
 April 22j 1861, there was stipulated an agreement between the French Government 
 and the messageries, granting to the company for twenty-one years a subvention of 
 7,.500,000 francs for the first three years; 7,000,000 for the second three; 6,000,000 for 
 other three ; 6,500,000 for other three ; 5,000,000 for other six, and 5,000,000 for the 
 last six years. The service embraces one principal monthly line, in communication 
 with lines of the Mediterranean, and five subsidiary lines. The principal leaves Suez 
 for Saigon, touching Aden, Point de Galles, Penang, and Singapore. Of tho sub- 
 sidiaries, all monthly, tho first goes from Aden to the island of Reunion and Mauritius; 
 the second from Point de Galles and Chandernagore, touching Pondichery, Madras, 
 and Calcutta; the third from Singapore to Batavia ; the fourth from Saigon to Ma- 
 nila; the fifth from Saigon to Shanghai, touching Hong-Kong. 
 
 By convention of June 2, 1864, the line from Saigon to Manila was suppressed, and 
 in its place was substituted another, monthly, from Shanghai to Yokohama, and the 
 line from Mauritius to Aden was extended to Suez, with an increase of subsidy to the 
 first of 341,301 francs yearly, and to the second of 256,631 francs yearly. The total 
 yearly distance to be run was fixed at 112,194 marine leagues. 
 
 By a convention of April 6, 1868, the company engaged to prolong the Suez line to 
 IIoug-Kong ; to take Hong-Kong instead of Saigon as the point of departure for the 
 subsidiary line to Shanghai ; to establish a direct line from Kong-Kong to Yokohama, 
 suppressing that from Shanghai to Yokohonia ; to make twenty-six voyages instead 
 of twelve on the principal line between Suez, IIt)ug-Kong, Yokohama, and that of 
 Hong-Kong, Shanghai; to increase by one voyage per year on tlie subsidiary lines. 
 For this increase of about 90,812 marine leagues in distance there was conceded an
 
 270 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 average Bubventiou of 37.50 francs for every league, aud jier year 3,405,450 fraucs, 
 payable monthly. 
 
 MESSAGERIES MAJRITIMES— AUSTRALIAN LINE, 
 
 A convention made June 25, 1881, which went into effect in October, 1H82, stipu- 
 lated for a subvention of 3,297,216 francs per year for fifteen years, for a yearly dis- 
 tance to be run of 103,('38, or 32 francs per league. The conditions imposed on the 
 company are not yet made public, except that a speed of over 11 knots per hour is 
 established. The account current of the Messageries Maritimes Comjiany for the 
 years 1879 and 1880 presents the following results: 
 
 Description. 
 
 Income received for passengers, freight, etc , 
 
 By Government subvention 
 
 Total 
 
 Expenses of every kind, including interest on bonds 
 
 Profits 
 
 1879. 
 
 Francs. 
 31, C03, ,'J66. 00 
 14, C57, 392. 00 
 
 45, 660, 9n8. 00 
 41,144,353.83 
 
 5, 516, 004. 17 
 
 Francs. 
 
 32,951,719.00 
 14, 097, 390. 00 
 
 47, 049, 115. 00 
 42, 522, 048 i-3 
 
 4, 527, 066. 17 
 
 The company had in 1880 fifty-six steamers, with a total of 24,270 horse-power, and 
 for the greater part of great capacity. The distances run in that year make a total 
 of 1,781,0.58 miles, of which the obligatory postal service was 1,401,549^ miles ; optional 
 service, not periodical, 325,149f miles; for service of particular urgency, 54,3.59 miles. 
 
 It should be observed that under the law of January 30, 1881, granting premiums 
 for construction aud navigation, all the steam-ship companies having postal subven- 
 tions are excluded from benefits. 
 
 In the budget of the minister of finance at this moment under discussion in the 
 French Chambers the subventions figure as follows : 
 
 Francg. 
 
 Line between the Continent and Corsica 375,000 
 
 Lines of the Mediterranean, Brazil, and La Plata 4,382,263 
 
 Lines of New York and Antilles 9,958,606 
 
 Indo-China line 8,573,024 
 
 Algiers line 880,000 
 
 Calais and Dover line 100,0t)0 
 
 Total 24,268,892 
 
 AUSTRO-HUNGARIAN SUBSIDIES. 
 
 The postal and navigation convention which regulates the service of the Austro- 
 Hungarian Lloyd, and tho Government subsidy accorded to that steam navigation 
 company, bears date June 26, 1878, and is for a term of ten years, commeuciuii July 
 1, 1878. 
 
 «'t
 
 THE ITNITEl) STAIES AND LATIN AMERICA. 
 The lines and sptod are iutlicated in the auuexed table 
 
 271 
 
 Courses. 
 
 No. of 
 voyages 
 yoaiTy. 
 
 No. of 
 mariiiiue 
 
 leatiins 
 for each 
 
 round 
 
 course. 
 
 A. — Course with speed of 10 knots per hour. 
 Constantinople, Varna, and return ." 
 
 B. — Course with speed of 9 knots, 
 
 Trieste (Fiume), Corfu, Alixandria, and back 
 
 Trieste, Corfu, Syria, Constantmople, and back 
 
 C. — Course with speed of 8 knots. 
 
 Trieste, Pola, Dalmatia, Durazzo, and back 
 
 Trieste, Pola, Dalmatia, Albaina, Prevera, and back 
 
 Trieste, Pola, Cattaro, and back 
 
 Fiume, Lussin. Zaia, Cat tan), and back 
 
 Fiume, Lussin, Zara, Cattaio, Albania, Patras, and back 
 
 Trieste, Fiume, amtbac'k 
 
 Fiume, Trieste, and back 
 
 Fiume, Se<;na, Zara, aud return 
 
 Fiume, Zara, Aucona, and back 
 
 Trieste, Fiume, Corfu, Syria, Smyrna, and back 
 
 Trie.ste, Patras, l'iia>us, Volo, Salonica, Constantinople, aud return 
 
 Constantinople, Kustendji, Galatz, and back 
 
 Cou.sianliuople, Trebizond, aud return 
 
 Constautinople, Sm.\rna, Cyprus, Beyrout, Port Said, AJexandria, and return 
 
 Alexandria, Port Saul, aud back 
 
 Pirajus, Syria and l>ack 
 
 Syria, Candia. and back 
 
 Fiume, Ancona, Bari, Messina, Candia, Lisbon, Liverpool, and back 
 
 Trieste, Cevlon, Calcutta, and back 
 
 Trieste, Aden, Bombay, Ceylon, Singapore, and return 
 
 Trieste, Bombay, and return 
 
 104 
 
 52 
 52 
 52 
 26 
 26 
 52 
 52 
 52 
 26 
 52 
 26 
 40 
 12 
 26 
 26 
 104 
 52 
 18 
 6 
 6 
 3 
 
 2,402 
 2,356 
 
 1,037 
 
 1,488 
 
 825 
 
 705 
 
 1,369 
 
 272 
 
 272 
 
 252 
 
 293 
 
 2,280 
 
 3,306 
 
 858 
 
 1,047 
 
 2,704 
 
 320 
 
 156 
 
 319 
 
 6,000 
 
 12, 260 
 
 13,750 
 
 8,680 
 
 The iudemuity is fixed by article 2 of the convention in the following proportions: 
 
 Florins. 
 
 For the Constantinople-Varna line 4. 00 
 
 For the Trieste-Alexandria, Trieste-Constantinople, Trieste-Bombay, Fiume- 
 
 Liverpool, Trieste-Calcutta 1.80 
 
 For the Singapore line 2. 50 
 
 For other courses 1, 50 
 
 However, it is established that the subsidy shall not exceed 2,000,000 Austrian 
 florins. 
 
 The Lloyd steamers have these privileges: 
 
 1. Are exempt from payment of tonnage duties. 
 
 2. Can take cargoes at night. 
 
 3. Can embark health officers to abbreviate quarantine. 
 
 4. Have the right in national ports of most commodious place to load and unload. 
 
 5. Every three mouths are reimbursed the taxes paid in making the passage of 
 Suez Canal. 
 
 The Lloyd Company on their part, are bound — 
 
 1. To furnish themselves with 28,000 tons of coal per year from the Austro-IIun- 
 garian mines; always, however, that the price shall not exceed that of Euglish coal, 
 on the hypothesis that the heating flower of national coal is to that of English as 85 
 to 100. 
 
 2. To accord gratuitous passage to the employes and dependants of the minister of 
 foreign afi'airs. 
 
 3. The agency of the company must bo filed abroad, wliere permitted, by postal 
 officials furnishing security for good conduct.
 
 272 
 
 TliADE AND TRANSPORTATION BETWEEN 
 
 4. The Lloyd steamers receive gratuitously the mails, and are subjected to fines for 
 delays, iuiVactions— fines wliich v;iry from 15 to 120 florins. 
 
 5. They are obliged to receive aboard the sailors, prisoners, and the indigent who 
 are consigned to them by the imperial and royal consuls. 
 
 G. To acquire steam-ships from abroad the consent of the minister of foreign affairs 
 is necessary. 
 
 7. The steamers must have an average capacity of 1,'200 tons cargo, or about 850 
 register. 
 
 The forn)ation of this old and powerful company dales back to 1833, but it intro- 
 duced steamers only in 1836, making the service between Trieste and the ports of 
 the Adriatic, Mediterranean, and Black Sea. Until 186.5 its capital was 3,000,000 
 florins. On September 14, 1865, it was increased to 12,600,000, divided into 24,000 
 bonds of 525 florins each. In its origin the company was promoted by the city of 
 Trieste, which guarantied the interest upon the capital. Afterwards the Austrian 
 Government gave it its protection. To form a clear idea of the importance of the 
 operatious of the company it will be sufficient to examine the following table, show- 
 ing the service iierformed in 1681 : 
 
 363 
 
 18 
 
 1 
 
 241 
 152 
 684 
 160 
 
 1,565 
 
 Lines. 
 
 Of the Levant 
 
 Of India 
 
 Of the Ked Sea 
 
 Tlie Danube .nnd Bhick Sea 
 
 The Arcbipolago 
 
 Thu Adriatic coast 
 
 Casual 
 
 Total in 1881 
 
 Miles run. 
 
 G19, 090 
 262,167 
 4,115 
 158, 394 
 33, 649 
 314, 750 
 218, 720 
 
 1, 610, 885 
 
 Number 
 of passen- 
 gers. 
 
 94, 057 
 5, 866 
 1,844 
 
 44, 544 
 
 7, 198 
 
 120, 425 
 
 19, 632 
 
 293, 568 
 
 Aloneys re- 
 ceived in 
 florins. 
 
 43, 795, 014 
 
 524, 271 
 
 111,678 
 
 10,- 237, 117 
 
 2,316,705 
 
 47,017,554 
 
 1, 059, 486 
 
 105, 091, 825 
 
 Weight of 
 merchan- 
 dise in 
 quintals. 
 
 Number 
 of head 
 of beasts. 
 
 2, 102, 898 
 
 513, 004 
 
 6,691 
 
 1,110,189 
 
 58, 482 
 
 856, 186 
 
 418,006 
 
 5, 065, 516 
 
 6, 5U 
 673 
 
 8,954 
 
 6 
 
 912 
 
 2,665 
 
 19, 725 
 
 The company's fleet was composed on the 31st of December, 1881, of 74 steamers, of 
 a total tonnage of 88,224 and a total horse-power of 17,930. Their original cost was 
 68,988,125 francs, but by reason of depreciation they figure in the company's balance- 
 sheet at 30,101,500 francs. At the above date there were in the course of construction 
 four other steamers of heavy tonnage. The service in 1881 yielded a net profit of 
 5,438,870 francs. 
 
 The Lloyds is the only company subventioned by the Imperial Government. 
 
 The Company Adria, whoso jjrincipal oflico is at Fiume, recieves from the Govern- 
 ment of Hungary a subvention of 150,000 florins per year, under a contract made with 
 the Hungarian minister of agriculture, indu.strj^, and commerce, January 31, 1882. 
 Its capital is 12,000,000 of florins. The company under the contract is bound to make, 
 from January 1, 1882, to December 31, 1891, each year, at least one hundred and fifty 
 voyages between Fiume and the ports of Western Europe, viz: Every month two 
 voyages from Fiume to Liverpool and Liverpool to Fiume. 
 
 Every month one voyage from Fiume to London or Hull or Leith ; London, Hull, 
 or Leith to Fiume; Fiume to Bordeaux; Fiume to Marseilles ; Marseilles to Fiume ; 
 Fiume to Glasgow, and Glasgow to Fiume. 
 
 The company binds itself to maintain regular communications with Havre, Rouen, 
 with the Irish j)ort8, and such other ports of western Europe as shall bo designated 
 by the minister, provided they are assured at least half a cargo at current rate of 
 freights for steamers in the Adriatic. Such voyages will be made independently of 
 the one hundred and tifty above mentioned. However, the company is not bound to 
 make more than two hundred voyages per year. Nevertheless, the company can be 
 compelled by the minister to make additional voyages for the ports of western 
 Europe, provided they are assured half a cargo at cufrcttt freights and with a subveu-
 
 THE UNITED STATES AND LATIN AMERICA. 273 
 
 tlon snpplementary of 600 florins per voyage. The company's stoamors mnst have an 
 averagoof 800 tons rogistor; the freij^hts from and to Finme must not bo higher than 
 those of the company from and to othor nortli Adriatic ports. A fine of r>00 tlorins is 
 established for every delay in departure or arrival not Justified. They are to receive 
 and transport at their own expense sailors from the maritime academy of Fiumc, but 
 not more than two on any one steamer. The company are to have for the service of 
 1882 five steamers, with a total of 4,000 tonnage, and are to add a new one each year, 
 of 800 tons, until they own twelve. The Hungarian Government is to give prefer- 
 ence to the Adria Company for such new voyages to the west as it may see lit to 
 establish as well during the present convention as after its expiration. 
 
 Spanish Subsidies. 
 
 For postal subventions they have in Spain the auction system. There are several 
 contracts of different dates, which on a average run eight years. The first is for 
 the steam service between Cadiz, Santa Cruz of Teuerift'e, and Palmas of the Great 
 Canaries. The subsidy can not be more than 248,840 francs per year. The voyage go- 
 ing must be done within sixty-eight hours; returning, within seventy-four. The 
 average speed must be from 11 to 11^ knots, and tonnage from 700 to 1,200. For every 
 delay not justified the tine is fixed at 250 francs for every six hours. The number of 
 steamers must be three, and the voyage going and coming is every two months. The 
 second is for the transport of the mails between Tarifa and Tangiers, runs four years, 
 and grants an annual subsidy of 7,080 francs. The third is for the service between 
 Barcelona and Palma, between Valencia and Palma, and between Alicante and Palma, 
 touching at Iviza ; that is, three round voyages ; steamers to be 150 horse power ; the 
 company to have at least four steamers. The subsidy is 97,425 francs per year ; the 
 contract runs six years from August 10, 1872, to be thereafter extended. The fourth 
 is for the weekly mail service between Barcelona and Mahon, and from Palma to 
 Mahon, and rice versa. The subsidy is fixed at 56,000 francs per year. The passage 
 from Mahon to Palma must be made in twenty hours, and that from Palma to Mahon 
 in thirteen. The contract runs eight years from the end of April, 1879. The fifth 
 runs ten years from November 1, 1881, and accords a monthly subsidy of 45,000 francs 
 for the following lines: Havana and Porto Rico, touching Nuritas, Gibare, Baracoa, 
 and Porto Plata, Mayaguez, Pome, Porto Principe, and Santiago de Cuba; Havana 
 and Vera Cruz, touching Progreso ; Havana and Colon, departing from Santiago de 
 Cuba, and touching Kingston and Barranquilla ; Havana and Laguayra. The first one 
 line has three departures per month, the others are only monthly. The ships must be 
 at least 1,50 tonnage. There are heavy fines and severe rules, as well for the postal 
 service as for the transport of passengers. The sixth is for the mail service between 
 Spain and the Antilles, and calls for three monthly departures, two from Cadiz and 
 from San tander for Havana, awA. vice versa. The ships must be 2,000 tons register each, 
 and number twelve. Speed required is 11 miles per hour, and the voyage, going, to 
 be eighteen days ; returning, seventeen days. Tlie seventh, of the 19th August, 1879, 
 is for the service between Spain and Manila; runs ten years, and with a subsidy 
 which can not exceed 100,000 francs for every round voyage. The voyages must be 
 completed in forty days in good seasons, and in forty-three in bad. The itinerary 
 calls for 8,139 miles. The departure is monthly, and is from Cadiz and from Manila, 
 touching Carthagena, Barcelona, Port Said, Suez, Aden, Pont de Galle, Singapore. It 
 calls for six steamers, and speed 11 knots. Heavy security and severe fines are estab- 
 lished for the exact performance of the contract. 
 
 BRITISH SUBSIDIES. 
 
 The postal and transport services, of which table follows, are performed by several 
 companies. The principle ones are : The Royal Mail Steam Packet Company, which 
 makes the service of Brazil, of La Plata, from Southampton, and that from St. Thomas 
 
 S. Ex. 54 18
 
 274 TRADE AND TRANSPORTATION BETWEEN 
 
 to Porto Rico. The Pacific Steam Navigation Company, running between Liverpool, 
 Brazil, Plata, Chili, and Peru, and from Panama to Valparaiso. The Union Steam- 
 ship Company, limited, which makes the service for the Cape of Good Hope and Zan- 
 zibar, leaving and returning to Plymouth, touching every month the islands of As- 
 cension and St. Helena, completing the voyage in thirty-eight days. The British 
 India Steam Navigation Company, running between Aden and Zanzibar. The West 
 India and Pacific Steamship Company, limited, and the steamships of Bernard Hall 
 and Arthur Bower Farwood, which make the service from Liverpool to Laguayra in 
 twenty-four days ; from Liverpool to Vera Cruz in thirty-four, stopping at Porto 
 Principe; and from Liverpool to Santa Marta in twenty-eight. The Cunard Com- 
 pany, which performs the service from London to Halifax and the island of St. Thomas, 
 and that from Liverpool to New York and Boston. The Liverpool, Brazil and River 
 Plata Steam Company, running between Liverpool, Brazil, aud the Rio de la Plata. 
 The steam-ships of William Inman make the service between Liverpool and New York 
 via Queenstown. The Southeastern Railroad Company and the London, Chatham, 
 and Dover Railroad Company run steamers between Dover and Calais. 
 
 The principal clauses in the contracts with these companies are, that any differences 
 are to be arbitrated; to have steam-ships of determinate dimensions and speed; not 
 to assign the concessions to others, and to pay fines in case of delays. The subsidy- 
 is not based on the distances run, but on the greater or less service rendered by the 
 company to the English postal department, and is fixed by private contract. 
 
 Service of English postal packets, and sums paid for the postal service for the year ending 
 
 March 31, 1882. 
 
 Pounds sterling. 
 
 United Kingdom 109,577 
 
 Europe 16,000 
 
 America 190,760 
 
 Africa 18,800 
 
 Asia 360,000 
 
 Cyprus 9|000 
 
 EXPENSES OF ESTABLISHMENTS. 
 
 Salaries, wages 832 
 
 Travelers 65 
 
 Rents '■^^ 
 
 Expenses of ports and docks 2,500 
 
 Casual expenses 70 
 
 Pensions 133 
 
 Total 707,767 
 
 Sums paid by the Governments of India and Belgium 90,500 
 
 Total of subventions paid by the English Government 617,267 
 
 DETAILS. 
 
 United Kingdom, Holyhead, and Kingstown 85,000 
 
 Aberdeen and Lerwick 2, 200 
 
 Scrabster and Stromness 2,000 
 
 Southampton and Channel Island 6,500 
 
 Liverpool and Isle of Man 4,500 
 
 Penzance and Scilly 450 
 
 Southampton and Cowes 150 
 
 Portsmouth and Ryde 800 
 
 Dunvegan and Lochmaddy -. 420 
 
 Oban and Eort William and Tobermory, Strome Ferry, Portree, etc 290 
 
 Xerbival and North Orkney lalauds 120
 
 THE UNITKD STATES AND LATIN AMERICA. 275 
 
 Pounds sterling. 
 
 Strcniway and Ullapool 1,300 
 
 Androsan ;i nd ArJau 350 
 
 Greenock, Port Ellen, and Portaskiug Islay 800 
 
 Greenock, Rotht!Hay, and Ardrishing 1,800 
 
 Tobermory, Coll, and Eyreo 95 
 
 Oban and Auchnacraig 125 
 
 Oban and Fort William 600 
 
 Obau and Tobermory 500 
 
 Weymouth and Channel Island 50 
 
 Shetland and Fair Islands 137 
 
 Shetland and Fonla 80 
 
 Greenock and Lochgalhead 100 
 
 Inverness and Fort Augustus 210 
 
 Allowance for additional service 100 
 
 Total 109,577 
 
 EUROPE. 
 
 Dover and Calais (contract March 25, 1»78) 8, 800 
 
 Excess of premium over penalty 2, 700 
 
 11, 500 
 
 Dover and Ostend (payment by Belgium) 4,500 
 
 Total 16,000 
 
 AMERICA. 
 
 United Kingdom and United States 71,000 
 
 Halifax, Bermuda, and Jamaica 17,500 
 
 England and West Indies 81,700 
 
 Twil's Island and St. Thomas 300 
 
 Belize and New Orleans 1,760 
 
 Liverpool and Callao 6,200 
 
 Liverpool and Porto Cabello, Tampico and S. Marta 1, 200 
 
 Southampton, Brazil, and La Plata 5,700 
 
 Panama and Valijaraiso 5,500 
 
 Total 190,869 
 
 Deduction of amount of penalty 100 
 
 Total 190,760 
 
 AFRICA. 
 
 West coast of Africa and England 8,800 
 
 East coast of Africa, Aden and Zanzibar, Table Bay and Zanzibar 10,000 
 
 Total 18,800 
 
 ASIA. 
 
 East India and China, between Brindisi and Bombay (via Suez), touching 
 Aden, between Brindisi and Shanghai (via Suez), touching Aden, Pout de 
 
 Galle and Colombo Peuang, Singapore, Hong-Kong 360,000 
 
 CYPRUS. 
 
 Laniaca and Alexandria , - ,.. ..,, ...... 9,000
 
 276 TRADE AND TKANSrOKTATlON BETWEEN 
 
 THE PENINSULAR AND ORIENTAL COMPANY. 
 
 In 1837 the English Governmout, for political and commercial reasons, began a pos- 
 tal service between the United Kingdom and Iiulia, which was performed for the 
 most part by sailing vessels of the navy. This method proving expensive and nnsat- 
 isfactory was given up; the admiralty, on the 22d of August, 1837, contracted with 
 Captain Bowme, agent of a company which afterwards took the name "Peninsular 
 and Oriental," for a weekly service between Falmouth and Gibraltar, touching Vigo, 
 Oporto, Lisbon, and Cadiz, and accorded a subsidy of 29,000 pounds sterling per year. 
 In 1840 the line was extended to Malto and Alexandria, with an increase in the sub- 
 sidy to 32,000 pounds sterling, the company binding itself to put on steamers of from 
 1,400 to 1,600 tonnage, with 400 to 450 horse-power, and so constructed as to carry 
 heavy artillery for war purposes, the departures to be monthly and the passage to be 
 made in fifteen days. This company having been re-enforced by annmberof heavy cap- 
 italists, on September 24, 1842, entered into a contract for a service between England 
 and India, andin that month the firststeamer of this line left Southampton for Calcutta, 
 followed soon by the Bentick and Precursor, each of 1,800 tons and 250 horse-power. 
 The forty-first yearly balance sheet of the company, being for the year 1881, shows 
 that the company's fleet is composed of fifty-one steam-ships, comprising six in course 
 of construction. Their total capacity is 162,312 tons, with total of 28,000 horse- 
 power. There are also eighteen small boats with 1,257 tonnage, making the subsidiary 
 service between ports. The yearly distance run on all the lines exceeds 2.000,000 of 
 miles, which is not so surprising when it is considered that the distance run from 
 London to Yokohama is 11,395 miles, and that between London and Sidney is 12,126 
 miles. 
 
 THE ROYAL MAIL. 
 
 In 1839 Mr. Irving, in his own name and in that of several merchants and bankers 
 of London, proposed to the English Government the formation of a maritime com- 
 pany for the transportation of the mails, passengers, and merchandise to the An- 
 tilles and Central America, using large steamers of 400 horse-power, and that there 
 should be accor^'ed an annual subvention of 240,000 pounds sterling. This prop- 
 osition was accepted by convention of September 26, 1839, by which it was stip- 
 ulated that there should be in the line fourteen. steamers, each of 400 horse-power, 
 and that the yearly distance run should not be less than 700,000 miles. The company 
 not finding itself able to operate on so large a scale, the Government reduced its 
 demand to ten steamers and to 395,000 miles of distance, but left intact the subven- 
 tion of 240,000 pounds sterling. The line was in full operation in 1840. The steamers 
 were wooden side-wheelers, making less than 8 knots per hour, and the service was 
 so unsatisfactory that many claims were made against the company for delays. Up 
 to 1848, by reason of the loss of some of their best steamers, the average return was 
 about 3i per cent. After that year things went better, and in August, 1850, the ad- 
 miralty signed a new contract with the company, by which the line was extended 
 to Brazil, which extension was in operation by January 1, 1851. This new contract 
 increased the subvention to 270,000 pounds sterling, and required that there should 
 be fifteen steamers in the service, capable of carrying heavy cannon: ten of 400 
 horse-power, four others of 250 horse-power, and a small one of 60. lu case of war 
 the Government reserved the right to acquire and use the steamers of the company, 
 at a price to be fixed by arbitration, and required £50,000 security for the perform- 
 ance of the contract. 
 
 In 1852 the capital, which in the beginning was £890,000 sterling, was increased to 
 £1,423,460 sterling. 
 
 The old conventions having expired December 31, 18.56, new ones were stipulated 
 
 with the admiralty, but with a diminished subvention. The twelve years from 1854 
 
 to the end of 1865 gave the following results : 
 
 Ponnds sterling. 
 
 Average yearly receipts 822,224 
 
 Average yearly expenses - 672,892 
 
 Netprofita 149,33^
 
 THE UNITED STATKS AND LATIN AMERICA 277 
 
 If, therefore, tlie company had not received t'ze Government subvention during 
 the said twelve years it would iuivc lost money. 
 
 The company's fleet connted on April 14, 1882, twenty-five steamers, having a total 
 tonnage of 62,843, and a total horse-power of 10,280. The balance sheet for 1881 
 gave the following result: 
 
 Received : Pounds sterling. 
 Government subvention 97, 135 
 
 For transport of merchandise, passengers, and money 693,169 
 
 Total 790,304 
 
 Expended 753,811 
 
 Net profit -56,493 
 
 The loss of tlie steamer Tiber and the reduction of the Government subvention to 
 about one-half what it was in 1865 (it was £209,000 in that year), contributed to de- 
 press in an exceptional manner the company's profits in 1881. 
 
 It is unnecessary to give the details of subsidies paid by the Cunard and other com- 
 paniea. 
 
 Belgian Subsidies. 
 
 There are at present two lines subventioned by the Belgian Government, as follows : 
 
 1. The line of steamers between Antwerp and New York having an obligatory 
 ■weekly service in both directions and between Antwerp and Philadelphia with a tri- 
 weekly departure from each place. This is the Red Star Line, which is guaranteed 
 500,000 francs per year for the postal service. 
 
 2. The lino between Antwerp and La Plata, and Antwerp and Rio Janeiro. 
 This is operated by the Sud Araericaine Corapaguie, aud makes three voyages per 
 month each way, for which the Government guarantees the sum of 500,000 francs per 
 year. The Government does not accord bounties by the course calculated on the 
 number of leagues run; it guarantees only a minimum of return for the postal serv- 
 ice. On the other hand, the lines in question have and must have a postal character 
 before everything else. It is not simply an accessory, and the postal service must 
 not suffer in any way by commercial traffic or passenger transportation. The dura- 
 tion of the subventions is fifteen years ; both parties reserve the right to dissolve the 
 contract from the end of the ninth year. The Government exacts as follows: First, 
 the Belgian flag ; second, such number of steamer of the first class as will enable the 
 company to make the service without iuterrnption ; third, a minimum tonnage of 
 2,700 tons ; fourth, different classes for passengers; fifth, prompt departures ; sixth a 
 prescribed speed, and heavy fines for each delay. 
 
 The above contracts were made in 1873 and 1876, and were slightly modified in 1882. 
 
 Dutch Subsidies. 
 
 The lines subventioned by the Government of the Netherlands are : 
 
 1. The line from Flessinga to Queensborough, under the direction of the Zeeland 
 Company. 
 
 2. The lino from Amsterdam to Batavia, uuder the direction of the Netheiiand 
 Company 
 
 3. The different lines in the Indian Archipelago. 
 
 4. The line from the Island of Java to China, under the direction of the India- 
 Netherland Steam-ship Company. 
 
 The total sum of the subventions is 705,000 florins ; that is, for the first three lines 
 for every mile 1.93 florins, 0.33 florin, 3.90 florins. The subvention of the fourth line 
 is 10,000 florins per voyage ; this service is once in three mouths, aud will be monthly, 
 which will make the total subvention 785,000 florius. 
 
 All the aforesaid lines are postal and commercial. The subvon tion to the Flessinga- 
 Queensborough line and the Amsterdam-Batavia line is accorded exclusively for the
 
 278 TRADE AND TRANSPORT ATfOX liHTWEKN 
 
 transport of letters, &c., of the postal departmont, while the subvention accorded to 
 the Java-China line and to that of tho Indian Archipelago has a couimercial scope. 
 
 The contract for the Flessinga and Queeiisborough line was made for ten years from 
 May 15, 1878, and that for the Amsterdam and Batavia line for an indeterminate 
 time, commencing 1877. The contract for the line in the Indian Archipelago is for 
 Cfteen years from January 1, 1876, while that for tho Java-China line dates from 1880. 
 From what precedes it results that in the Netherland colonies the companies are sub- 
 ventioued for a commercial as well as postal purpose, while in Holland itself the sub- 
 vention is strictly postal. The subventions are accorded by private contract. 
 
 SwEDisu AND Norwegian Subsidies. 
 
 The Italian minister at Stockholm, in transmitting the following list, remarks that 
 for the postal service made by steamers between the dilferent Swedish ports there is 
 conceded an indemnity, which varies according to the importance of the lines, and 
 which, for the most part, represents but an insignificant part of the expenses of nav- 
 igation. Only the Malmo Stralsund line is subsidized on a large scale. Under a con- 
 vention concluded between liormany and S weden February 24, 18(39, the Swedish 
 Government assumed the obligation to pay to the German postal administration, 
 for a regular steamship service between the said two ports, half of the expenses of 
 navigation and a yearly sum of 2,000 thalers for repairs to steamers in the service. 
 
 Table of subventions accorded by the state to private navigation of steamers for the service 
 
 between different Norwegian ports. 
 
 Crowns. 
 
 Fjordene to Stavanger: 
 
 For passage on Fjordeiie to Ryfylke 12,000 
 
 For passage on Hogsfjord 1,000 
 
 Sondre Bergenhus : 
 
 To steamer Karmsund for passage on exterior side between Bergen and 
 
 Haugesuud 3,000 
 
 For passage, Bergen-Masfjord 2,400 
 
 To the North Bergenhus : 
 
 Steam-ship, forpassage upon Fjordene to North Bergenhus 35,000 
 
 To steamer Molde, for passage on Fjordene to Komsdals C, 500 
 
 For mainleuance of steamer between Trondhjem-Hitteren and Froyen.. 7,000 
 
 Upon Fjordene to North Troudlijines: 
 
 For passage on Anaseufjord 800 
 
 For passage to the interior, Foldenfjord 4,000 
 
 Upon Fjordfue to Nordlands: 
 
 To steanjer Porghatten, for passage to Biudaleu, Vego, and Veltjorden.. 12,000 
 
 To steamer Ilegelauds, for passage to Vessen and Kaiiontjord 16,000 
 
 To llegeland Steam-ship Company, for passage on Fjordene to Salteus 
 
 Fodgeri 14,000 
 
 To the Tromso Aints Company, for passage on Fjordene to Tromso 58, 000 
 
 On Fjordene to Fiunmarkins: 
 
 For passage to Altenfjord 23,000 
 
 For passage to Vestilinmarkske Fiskvoer 10, 000 
 
 To the Keih-rie, for «te:iiiier Varanger, for I)a8sage to Varangertjord 25, 100 
 
 To the Bergeuske and Nordeiifjilske Company: 
 
 On the line Bergen-Throndlijeni, Ilaiiimerfcst-Vadso 110,000 
 
 On line Sofoteu-Vosteralleu-Ofote, with two boats in fishing time and 
 
 one at other times 57,000 
 
 For passage to Otterens Vasdrag 1,600 
 
 To steamer Telegraph to Selbosoen 1,000 
 
 Indemnities to ])ersons employed for tlie Departmont of the Marino and 
 Postos, to supervise the steamers subvontionod and for sending of tele- 
 grams - - -" 8,000
 
 THE UNITED STATES AND LATIN AMERICA. 279 
 
 Taile of appropriations figuring in the Norwegian budget for the year 1881-188*2, for sub- 
 sidies to steamers performing the postal service on the following lines: 
 
 Crowns. 
 
 Fredericksbald, Stronistadt 150 
 
 Frederickstadt, Hoaloerue 400 
 
 Cbristiania, BundiQord SO 
 
 ChristianJa, Christiaossand 22,000 
 
 Christiauia. Bergen 37, 7G0 
 
 Cbristiauia, Cbristianssaud, Bergen, Tbrondbjem, Tromso 100,000 
 
 Cbristiania, Kjobenbavn 780 
 
 Cbristiania, Hamburg 2,600 
 
 Drammen, Maas 1,440 
 
 Horten, Holmestrand -. 70 
 
 Skein, Langesund ^ 1,440 
 
 Porsgmud, Bolvig-Herre 70 
 
 Tredestrand, Boroen 2,300 
 
 Christianssand, Frederiksbavn, and Frederiksbavn, Cbristianssand, Bergen 71, 800 
 
 Cbristianssand, Mandal, Svinor, Spangereid 180 
 
 Stavanger, Bergen 6,656 
 
 Stavanger, Hardanger 2, 500 
 
 Stavanger, Hoitingso 3, 328 
 
 Skudesnoesbavn, Renneso, Stavanger, Hogsfjord 520 
 
 OnRyfylske Fjorde 3,200 
 
 Bergen, Hangesand, and Oblandsvaag 900 
 
 Bergen, Hardanger ^ 4,800 
 
 Bergen, Fjorddestrikleme, in Soudborland. 4,000 
 
 Bergen, Hans, Hammer, Hosanger, Salbus 800 
 
 Bergen, Bolstadoren 600 
 
 Bergen, Logn, Bergen, Sondfjord and Bergen, Nordfjord 26,160 
 
 Lerdal, Lyster and Lerdal, Gudvauger 10, 000 
 
 On Son and Nordfjord 2,400 
 
 Bergen, Manger, Bovaayen, Ostbeini Masfjord 2,000 
 
 Bergen, Lygren, Lindaos, Leim 1,600 
 
 Bergen, Fane, Os, Strandvik, Fuse, Haalandsdal, Sammanger 2,400 
 
 Upon Sondmore, Roradalske, Fjorde 1,300 
 
 Upon Fjirdene in Romdals Fodgeri 1,500 
 
 Upon Fjordeue in Nordmore Fodgeri 13,000 
 
 Tbrondbjem, Hamburg 22,000 
 
 Tbrondbjem, Cbristiansund 8, 820 
 
 Tbrondbjem, Indberred 4,000 
 
 Tbrondbjem, Hitteren, Froyen 2,000 
 
 Tbrondbjem, Orkedal 230 
 
 Bergen, Tbrondbjem, Vadso 150,000 
 
 On Vefsen and Ranenfjordene 2,000 
 
 On Saltenske-Fjorde, and on Foldeufjorden 4,000 
 
 Brono, Bindalen, Fiskerosen, Vigo, Velfjorden 2,000 
 
 Lofoten, Vesteraalen, Ofoten 20,000 
 
 On Tromso, Amte Fjorde 7,000 
 
 OnAltenfjord 2,500 
 
 On VarangeQord 900 
 
 OnMjosen 15,000 
 
 OnOjeren 150 
 
 On Kroderen 1,200 
 
 OnSpirillen 200 
 
 On Randsfjorden 1,200
 
 280 
 
 TKADE AND TRANSPORTATION BETWEEN 
 
 Crowns. 
 On Pinsjoen IBO 
 
 On Nord.sjovaudet -. — 1, 100 
 
 On Flaa, Havidost-id, and Baudalsvaudene 480 
 
 To divers steani-slups, to transport the mails to foreign countries 2,236 
 
 Total 586,000 
 
 Italian Subsidies. 
 
 The Italian steam-ship companies Florio and Rubattino were consolidated by the 
 terms of a convention with the Government dated June 15, 1877, and together receive 
 from the Government an annual subvention of 8,139,576 francs, or an average of 16.84 
 francs per leagne, the total of leagues run being 483,252. The tarill' establishes from 
 0.93 franc to 0.66 franc for passengers of the first class, from 0.62 franc to 0.44 franc 
 for passengers of the second class, and from 0.31 to 0.22 for those of the third class for 
 each league, exclusive of food. For merchandise, according to category and accord- 
 ing to distance, freights vary from 1.50 to 10 francs per quintal. The speed varies ac- 
 cording to the lines from 8 to 10 knots per hour, aud so also according to the line 
 varies the capacity of the ships, i. e., from 200 to 1,300 tonnage. The carriage of the 
 mails is obligatory. Fines of from 50 to 100 francs ior every hour of delay in starting 
 and arriving not justified are established. The company is obliged to transport at 
 half price civil and military employds and prisoners. 
 
 They possessed at the beginning of the present year ninety-two steamers, with a 
 total tonnage of 128,330. They have in course of construction the following steam- 
 ships : The China, of 5,000 tons, the Japan, of 5,000 tons, and the Java, of 3,600 tons, 
 in English ship-yards; and the Birmania, of 3,200 tons, in Orlando's yard at Leghorn. 
 
 The subvention applies to the following lines of this company : 
 
 1.— THE SARDINTAN AND TUSCAN ARCHIPELAGO LINE. 
 
 Lines. 
 
 u 
 
 u 
 
 t. 
 
 ^ 
 
 © 
 
 <0 
 
 <o 
 
 
 ^6 
 
 p. 
 
 P< 
 
 P.^ 
 
 
 
 
 
 
 
 O 03 
 
 t,.^ 
 
 =s >i 
 
 
 CJ > 
 
 o 
 
 C3 
 
 B-" 
 
 h^l 
 
 i> 
 
 H) 
 
 G? 
 
 318 
 
 52 
 
 16,536 
 
 18 
 
 230 
 
 52 
 
 11, 960 
 
 18 
 
 260 
 
 52 
 
 13, 520 
 
 18 
 
 126 
 
 52 
 
 6. 552 
 
 18 
 
 148 
 
 52 
 
 7,696 
 
 18 
 
 198 
 
 52 
 
 10, 296 
 
 18 
 
 162 
 
 52 
 
 8,424 
 
 18 
 
 178 
 
 52 
 
 9,256 
 
 18 
 
 140 
 
 52 
 
 7,592 
 
 18 
 
 104 
 
 52 
 
 5,408 
 
 18 
 
 30 
 
 52 
 
 1,560 
 
 18 
 
 8 
 
 365 
 
 2,920 
 
 
 Leghorn, Cagliari, Tunis 
 
 Leghorn, Civita Vt-ccliia, Cagliari 
 
 Siniscola, Oroaoi, Tartoli, Cagliari 
 
 Leghorn, Portototres 
 
 Leghorn, Bastia, Maddalena, Portotorres 
 
 Leghorn, Civita Veccliia, Maildalena, Portotorres 
 
 Cagliari, Miiraveia, Tortoli, Uiosei, Siniscola, Torraniiva, Mad 
 
 dalcua, Santa Teresa, Portotorres 
 
 Cagliari, Naples 
 
 Cagliari, Palermo 
 
 Leghorn, Gorgona, Capraia, Marciana, Portoferraio, Kio Marina, 
 
 Portolongoni), Pianosa, Giglio, Santa Stefano 
 
 Leghorn, Portoferraio , 
 
 Portoferraio, Piombino 
 
 Francs. 
 297, OJS 
 215, 280 
 243. 360 
 117,936 
 138, 528 
 185, 328 
 
 151,6:t2 
 161,608 
 13G, 656 
 
 97, 344 
 28. 080 
 30, 000 
 
 1, 808, 400
 
 THE UNITKl) STATES AND LATIN AMERICA. 
 2.— THE SICILY LINE. 
 
 281 
 
 Lisoa. 
 
 
 
 Palermo, Messina 
 
 Taranto, Brindisi 
 
 Naples, Palermo 
 
 Naples, Messiua, Kejrgio, Messina 
 
 Naples, Diamante, Belvedere, Paolo, Aniautea, St. Eufemla, 
 
 Pizzo, Messiua, Reggio, Messina 
 
 Naples, Paolo, Amantea, St. Eufemla, Pizzo, Tropea, Gioia, 
 
 Tauro, Messina, Reggio, Messina 
 
 Naples, Pisciotta, Paolo, Amantea, Pireo, Regirio, Messina 
 
 Naples, Messina, Reggio, Messina, Catania, Syracuse, Malta 
 
 Palei'mo, Trapani, Farignana, Marsala. Pautalleria, Tunis 
 
 Palermo, Cefalu, St. Stefano, Capo d'Orlaudo, Patti Milazzo, 
 
 Messina 
 
 Messina, Catania, Syracuse, Malta 
 
 Palermo, Trapani, Marsala, Mazzara, Sciacca, Porto, Empedocle, 
 
 Palma, Licata, Terranova, Scoglitti, Pozallo, Syracuse 
 
 Mesaina, Lipari, Sabina 
 
 Palermo, Ustica 
 
 Messina, Reggio 
 
 Porto Empedocle, Lampeduso 
 
 82 
 102 
 112 
 132 
 
 162 
 
 230 
 154 
 
 184 
 
 38 
 
 24 
 
 6 
 
 82 
 
 52 
 
 52 
 
 305 
 
 52 
 
 52 
 
 52 
 52 
 52 
 52 
 
 52 
 52 
 
 26 
 104 
 
 26 
 730 
 
 4,264 
 
 5, 304 
 
 40, f-80 
 
 6,864 
 
 8,632 
 
 8,124 
 
 8, 008 
 
 12, 792 
 
 8,008 
 
 4,576 
 5,928 
 
 9,568 
 3, 952 
 624 
 4,380 
 4,261 
 
 Francs. 
 
 81,061 
 
 100, 77(; 
 
 776. 720 
 
 130,416 
 
 161, 008 
 
 160,056 
 152, 152 
 24H, 048 
 152, 152 
 
 86, 944 
 71, 136 
 
 181, 792 
 75, 088 
 11,8.56 
 24,000 
 17, 000 
 
 2, 428, 2C0 
 
 3.— TUNIS, EGYPT, INDIA, CHINA LINE. 
 
 Tunis, Susa, Monastir, Medlisa, Sfax, Gerba, Tripoli, Malta 
 
 Genoa, Leghorn, Naples, Messina, Catania, Alexandria 
 
 Genoa, Leghorn, Naples, Messina, Catania, Port Said, Suez, 
 
 Aden, Bombay 
 
 Genoa, Leghorn, Naples, Messina, Catania, Port Said, Suez, 
 
 Aden, Ceylon, Penang, Singapore 
 
 452 
 920 
 
 3,064 
 
 4,374 
 
 23, 504 
 47, 840 
 
 36, 768 
 17, 496 
 
 32 
 
 Francs. 
 329, 056 
 300, COO 
 
 1, 080, 000 
 559, 872 
 
 2, 268, 928 
 
 4.— THE LEVANT LINE. 
 
 Venice, Ancona, Freniti, Viesti, Bari, Brindisi, Piraeus, Conatan 
 
 tinople 
 
 Palermo, Messiua, Catania, Piraeus 
 
 Piraeus, Salonica 
 
 Piraeus, Smyrna 
 
 Brindisi, Corfu 
 
 Ancona, Zara 
 
 830 
 
 .'52 
 
 448 
 
 52 
 
 176 
 
 26 
 
 140 
 
 26 
 
 78 
 
 52 
 
 58 
 
 52 
 
 4:1, IGO 
 
 21 
 
 23, 290 
 
 21 
 
 4,570 
 
 21 
 
 3,640 
 
 21 
 
 4, 0.'i6 
 
 21 
 
 3,016 
 
 21 
 
 Franca. 
 906, 360 
 489, 216 
 96, 096 
 76, 440 
 85, 176 
 63, 336 
 
 1, 716, 624 
 
 The Italian Government also pays 500,000 franca per year to the English Peninsu- 
 lar and Oriental line for a weekly postal service from Venice to Brindisi, and vice 
 veisa, under a contract by which that company obligates itself to transport the mails 
 gratuitously between Italy and Egypt, and also to carry civil and military employds, 
 who travel by reason of their respective services, and missionaries, at lialf the price 
 established for other passengers, not only on the line subsidized but also on the com- 
 pany's other lines from Suez.
 
 282 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 German Subsidies. 
 
 The subventions paid for the Hues from Hamburg to Tampico, from Kiel to Koer- 
 sen, from Lubeck to Malmoe, from Rostoik-Nykjoping, and from Stralsund to Mal- 
 moe, amount to 332,500 francs per year. The lines from Bremen and Hamburg to the 
 United States are compensated on the basis of the value of the postal service ren- 
 dered. 
 
 Table of subventions accorded by various European states to international steam navigation 
 
 lines. 
 
 
 II 
 
 |.2| 
 a a 9 
 a 01.2 
 
 2S 
 
 S o 
 
 gee 
 
 (COO 
 
 Amonnt of the subvention. 
 
 13 
 
 SUtes. 
 
 Per year. 
 
 Per league. 
 
 By other crit«ria. 
 
 2 
 > 
 
 < 
 
 
 1 
 1 
 
 10 
 
 2 
 7 
 2 
 4 
 4 
 2 
 
 Tears. 
 10 
 10 
 
 1 
 
 15 to 24 
 
 8 to 10 
 
 15 
 
 10 to 15 
 10 
 12 
 
 Francs. 
 *5, 000, 000 
 375,000 
 15, 430, 145 
 
 32,414,457 
 5, 000, 000 
 1,000,000 
 1, 762, .500 
 332,600 
 8. 639, 576 
 
 Francs. 
 2. 86 to 10 
 
 
 MUes. 
 8 to 12 
 
 Hanaary 
 
 England 
 
 For 150 voyages 
 
 8 to 12 
 
 
 According to the importance 
 of the postal service. 
 
 9 to 12 
 
 25. 90 to 45. 70 
 
 9 to 12 
 
 Spain 
 
 According to the postal service. 
 Guaranty of au average return. 
 
 11 tol2i 
 10 to 11 
 
 
 Holland 
 
 5 to 9. 75 
 
 9 to 11 
 
 Germany .. .. 
 Italy 
 
 According to postal service 
 
 9 to 10 
 
 1 12 to 32 
 
 8 to 10 
 
 
 
 
 
 *Oth 
 
 er advanti 
 
 igea. 
 
 
 t According to the line. 
 
 Duncan J. Grain, 
 
 Consul. 
 
 United States Consulate, 
 
 Milan, December 5, 1882.
 
 I>A.RT III 
 
 TOPICS FOR DISCUSSION. 
 
 283
 
 I. 
 
 TOPICS TO BE DISCUSSED AT THE CONGRESS. 
 
 The first of the several topics embraced in the law authorizing the 
 approaching Congress, " Measures that shall tend to preserve the peace 
 and promote the prosperity of the several American states," deserves 
 and will receive abler treatment than can be given it by me. 
 
 THE PEOPOSED CUSTOMS UNION. 
 
 The second topic, " Measures toward the formation of an American 
 customs union, under which the trade of the American nations with 
 each other shall, so far as possible and profitable, be promoted," is the 
 most difficult and perplexing of any with which the Congress will have 
 to deal. While it would doubtless be a great advantage to tlie United 
 States to have free trade in American waters, such a thing is impossible 
 because all of the nations of Central and South America depend en- 
 tirely upon their customs revenue for support. Every article ibey 
 import is taxed, not under the protective theory, but "for revenue 
 only," as the governments are compelled to obtain the necessary funds 
 to sustain themselves by imposing heavy duties upon the necessaries as 
 well as the luxuries of life. 
 
 On the other hand, the United States, rich and powerful, taxes noth- 
 ing it imports from those countries in any quantity except sugar and 
 wools. At the same time many of those countries have the "favored 
 nation " clause in their treaties with European governments which 
 would prohibit them from exercising any discrimination in favor of the 
 United States upon articles of general trade. 
 
 RECIPROCITY TREATIES. 
 
 But it still is possible for the United States to negotiate reciprocity 
 treaties with the sugar-growing nations of South America, under whicli 
 it may remove or reduce the duties on sugar in exchange for a corre- 
 sponding removal or reduction of the duties on breadstufis, provisions, 
 refined petroleum, and himbei-, which are our peculiar i)roducts, and 
 are not exported to those, countries by any other nation. In fact, these 
 four articles constitute the great bulk of our exports to our Central and 
 
 285
 
 286 TRADE AND TRANSPORTATION BETWEEN 
 
 South American customers. They buy here only what they cau not buy 
 elsewhere, simply because the absence of transportation facilities pre- 
 vents a {:^eneral trade. 
 
 Sugar is produced by every nation from the Eio Grande to the valley 
 of the Kio de la Plata. Kone is grown in Uruguay, Chili, or the Ar- 
 gentine Kepublic, although in the northern provinces of the latter coun- 
 try the cane-growing is becoming quite an industry. The South Ameri- 
 can Commission found every one of these nations willing to reduce or 
 remove the duty on the four peculiar products of the United States 
 above named, provided the United States will remove or reduce to a 
 corresponding degree the duty on sugar, and we can much better afford 
 to pay two or three millions a year in bounties to our own producers 
 than fifty millions in customs taxes. The Republics can not compete 
 in the production of sugar with the planters of the West Indies or the 
 European colonies, and upon the failure of the Spanish reciprocity 
 treaty in 1884 were very anxious to have similar advantages offered 
 them. There will be no difficulty in arranging for an exchange of con- 
 cessions that will materially extend the sale of our breadstuff's, petro- 
 leum, i^rovisions, and lumber in the countries where they axe now taxed 
 so high that thej' can not enter into the consumption of the common 
 people to any extent. 
 
 THE QUESTION OF WOOL. 
 
 We obtain all our carpet wool from foreign nations, i^Tone is pro- 
 duced in the United States, and the greater part of our supply comes 
 from Chili, Uruguay, and the Argentine Republic. These countries, in 
 exchange for the removal or reduction of the duty on carpet wool, would 
 be very glad to make concessions in favor of our breadstuff's, provis- 
 ions, petroleum, and lumber ; but the difficulty of carrying out such 
 an engagement would lie in our Congress. While both political parties 
 are pledged to a reduction or removal of the duty on sugar, the wool- 
 growers of the United States are violently opposed to any change that 
 will offset the wool schedule of our tariff. While they realize and ad- 
 mit that carpet wools are not grown to any extent in the United States, 
 and our sheep farmers find them unprofitable, they argue that the free 
 admission of carpet wools would injure the market for the finer grades, 
 because the manufacturers would very soon find means of using them 
 instead in woolens, worsteds, and other clothing. The success of the 
 <5ongres8 in this regard will depend entirely upon legislation. 
 
 TRADE NOT AFFECTED BY THE TARIFF. 
 
 It is a mistaken idea, as has already been said, that our trade with 
 Central and South America is seriously affected by our tariff. While 
 it is true that railroad iron and some other articles of merchandise c»n 
 not l)e produced as cheaply in the United States as in Europe, the re- 
 moval of our duties upon them would in no measure affect the South
 
 THE UNITED STATES AND LATIN AMERICA. 287 
 
 Americau trade. Our manufacturers could not produce theuj any 
 cheaper than they can at present. The cost of production would not be 
 affected at all, and therefore we cau not expect to command the trade ot 
 the American hemisphere in these articles as long as the wages paid to 
 American mechanics are so much greater than those received by the 
 working-men of Europe ; but there are a thousand and one articles pro- 
 duced in the United States which are not affected by the tariff at all, 
 and they can be produced and sold quite as cheaply here as anywhere 
 else in the world, and of a superior quality, as every merchant engaged 
 in the South American trade will testify. 
 
 Mr. John M. Carson, recently clerk of the Committee on Ways and 
 Means of the House of Representatives, has, at my request, prepared a 
 report upon the sugar and wool trade, which is submitted herewith, and 
 will be found to contain many valuable facts and suggestions. 
 
 THE QUESTION OF TRANSPORTATION. 
 
 The third topic, and that which is of the greatest interest to those 
 who are endeavoring to build up a trade with Latin America, is discussed 
 at length in the previous chapter. 
 
 The fourth topic has been assigned to others, but 1 submit herewith 
 a report from the assistant secretary of the New York Board of Trade 
 and Transportation, which, will be found to contain much practical 
 information concerning the embarrassments met with in the Latin Amer- 
 ican custom-houses by exporters of the United States. 
 
 UNIFORM WEIGHTS AND MEASURES. 
 
 The fifth topic refers to the adoption of a uniform system of weights 
 and measures. This can not be done unless the United States shall 
 agree to substitute the metric system for that at present in use, as it 
 prevails everywhere else on this hemisphere. In a report recently pub- 
 lished by the French Government it is shown that the metric system is 
 how obligatory in countries having an aggregate of 302,000,000 peo- 
 ple, an increase of 53,000,000 over 1877. Countries where the metric 
 system is authorized by law or is optional are England, the British col- 
 onies, the United States, Russia, Turkey, China, Japan, and the sev- 
 eral nations of Central and South America, representing a total of 
 794,000,000 people. 
 
 THE PROTECTION OF PATENTS AND TRADE-MARKS. 
 
 That some means are necessary for the protection of American manu- 
 facturers from the forgery of their trade-marks and the infringement of 
 their patents by European rivals will be acknowledged by every one 
 who is engaged in trade with Central and South America, where the 
 markets are flooded with bogus goods. But I have had great dif- 
 ficulty in securing information from the persons who are most interested 
 in this subject. In my investigations I have discovered not only indif-
 
 28<S 'J'RADK AND TRANSPORTATION BETWEEN 
 
 lereuce, but iguorance as to the objects of this congress, and several 
 gentlemen who have had experience in the detection and prosecution 
 of trade-mark forgeries and the infringement of patents have neglected 
 to furnish the reports they promised to prepare. 
 
 I insert, however, as an appendix to this chapter, an article on this 
 subject which recently appeared in the New York Indeiyendent. and it 
 will be read with interest. 
 
 The superiority of American goods is so great that the Manchester 
 mills send few goods to South America that do not bear forged Amer- 
 ican trademarks. These goods are inferior to those produced in the 
 United States and are sold for about 5 cents a yard, while the cheapest 
 genuine American drillings cost about 7 cents. The bogus stuff is made 
 of pipe-clay and starch upon a very thin fabric of cotton, but the ma- 
 terial is just as well adapted to the use of the common people as the 
 better quality, which comes from the United States and is used only by 
 the wealthier classes. 
 
 CHEAP GOODS DEMANDED BY THE PEOPLE. 
 
 While cotton goods constitute almost the entire wearing apparel of 
 the laboring people, men as well as women, and as they seldom wash 
 their garments, the pipe-clay stuff is just as good and wears perhaps a 
 little better than the genuine article. The merchants complain that 
 they are compelled to order goods from Manchester bearing this fraud- 
 ulent trade-mark, because the people demand that quality, and also 
 insist upon having American goods. If our mills would enter into com- 
 l)etition with those of England in the production of this material they 
 would find it a profitable trade. 
 
 These cottons are required by the prevailing laws of trade and the 
 tastes of the people to be of a certain length and a certain width, so as 
 to cut with economy, as the native requires just so many yards to the 
 piece; the price is also fixed by the unwritten law of custom, and if a 
 merchant sells a wider piece of goods than they are accustomed to buy 
 he can get only the same price that the narrow piece will bring. The 
 merchants complain that they do not get their cotton from the United 
 States as ordered; very often receiving something similar, but essen- 
 tially different. The slightest variation from the sample makes the 
 goods unmarketable, and subjects the importer to a loss. 
 
 THE EXPERIENCE OF A NEW YORK FIRM. 
 
 A member of the firm of Smith, Hogg »& Gardner, of New York, 
 with whom I recently conversed, said : 
 
 " We have experienced considerable trouble from the manufacturers 
 in Manchester who hav'e infringed our trade-marks, and once or twice 
 we have succeeded in obtaining judgments against them; have recov- 
 ered damages and costs, and have compelled them also to publish the 
 fact that they had infringed upon our rights."
 
 THK UNITED STATES AND LATIN AMERir-A. 289 
 
 "In what country was thist" 
 
 " The counterfeit goods were sokl mostly on the west coast of South 
 America, I think." 
 
 *'In what courts were the suits brought?" 
 
 " I think in Enghmd." 
 
 " How couhl you bring the suits in the English courts?" 
 
 "The manufacturer of the goods stamped them in Manchester, sold 
 them in Manchester, and delivered them there." 
 
 "Some of the South American countries protect you, and others do 
 not protect yon at all. We want to find out wbat countries protect 
 you and what countries don't." 
 
 "Protection down in Brazil ; what does it amount to? They don't 
 make anything there to compete with us. Here is a case I am working 
 up now. There is a class of goods made iu Massachusetts known 
 throughout Brazil as ' Gilt B;' and orders come from Brazil for 'Gilt 
 B;' so the English manufacturers attach imitation of our trade-mark." 
 
 " Have you ever tried to collect damages?" 
 
 "Yes; we have, and have succeeded. " 
 
 "Where would you collect them?" 
 
 "In Manchester. The manufacturers of the counterfeit goods are 
 selling their goods all the time, although we have great ditUculty in 
 definitely locating the forgeries. Every time we do find an infringe- 
 ment we have no trouble in collecting damages. " 
 
 THE FORM OF THE FORGERIES. 
 
 The original goods, the infringement of the trade-mark upon that is 
 here complained of, bear a red enamel ticket with a large gilt B stamped 
 in the middle of it, and read "Massachusetts Drillings, warranted In- 
 digo Blue. Lowell Bleachery and Dye Works," with the number of 
 yards indicated in the corner. The fraudulent goods are marked iu 
 exactly the same way. The same kind of type is used, with the same 
 kind of paper, and the trade-mark is imitated so that no one but the 
 manufacturers of the goods can identify the difference. Other fraudu- 
 lent goods bear similiar tickets, reading "Massachusetts Drillings," 
 "Warranted Indigo Blue," with a large gilt "B" also printed upon 
 them. Others bear the name of the maker in Massachusetts. 
 
 About a year ago the house of Smith, Hogg & Gardner sued JafiFey 
 ^ Co., of Manchester, England, for infringement of their trade-mark of 
 fb flying-horse upon shirtings. The fraudulent goods bore an exact 
 counterfeit of the picture of a flying-horse or stag, which had been 
 adopted by the Massachusetts mills of Lowell for their sheetings and 
 shirtings, and below the figure are the words "Massachusetts Shirt- 
 ings," and the letter "C," or other letters indicating the different grades 
 pr (|ua]ities of goods. These were imitated, and large quantities sold 
 j^U .over South America. The ^uit wftS brought in the English courts, 
 jand jwfigraent was obtaiuedj
 
 290 TRADE AND TRANSPORTATION BETWEEN 
 
 TRADE-MARK FORGERIES IN BRAZIL. 
 
 Tbe Tlio News of tlie 14th of Jamiary last, iu speaking of the infringe- 
 meut of the Uiw of 1887 for the protection of trademarks, says : 
 
 Notliiug can be more clearly just than that the merchant or manufacturer has an 
 exclusive right to the use of a uauie aud the reputation established by his own eflorts. 
 A well-known illustration of this is to be found in the eliorts made by the Singer 
 Sewing Machine Company to protect their trade name. Certain unscrupulous man- 
 ufacturers and merchants have not been content with the free use of the trade name 
 which the Singer company is using. A number of these spurious Singer machines is 
 very large, and their sale has thus far been unprotected by the failure of the legisla- 
 ture to make a clear distinction in favor of the manufacturer. The new Brazilian 
 law, however, makes this distinction, and prospects are that full protection will 
 hereafter be given under its provisions. 
 
 THE PROPOSED INTERNATIONAL COIN. 
 
 The sixth topic, which related to the adoption of a common silver 
 coin, is discnssed briefly by Mr. Carson, whose report is submitted 
 herewith. 
 
 THE LACK OF BANKING FACILITIES. 
 
 Involved in this question is the very important one of banking facil- 
 ities and credits, the improvement of which, however, is impossible 
 without direct and regular steam-ship communication. It would result 
 iu the saving of from one to one and a half million dollars annually, 
 which is now paid out in the form of exchange to the bankers of Eng- 
 land. We pay a toll of one-half or three-quarters of a cent to the 
 bankers of Loudon upon almost every dollar's worth of trade we transact 
 with Latin America, and every transaction is computed in pounds, shil- 
 lings, and pence, instead of in our own money. 
 
 It is just this way [said the lion. William R. Grace, of New York, recently]: Sup- 
 posing I want to buy a cargo of goods in any South American country. I say nothing 
 about the West Indies, for I do not trade there, and I know nothing about what the 
 arrangements are there, but of South America I know considerable. Of course, if I 
 buy my cargo, I must pay for it. Now, there is ])ractically only one way in which 
 I can do it. I must send a draft on London, or rather I send to my South American 
 correspondent a written authority to draw on a London bank. Of course I have to 
 keep an account in London to do this, and the London banker charges me a commia-i 
 Bion for doing this kind of business, so that it is a constant expense to me. 
 
 The obviously simple way for me to pay would bo to authorize the South Americaq 
 merchant to draw on me directly, but I can not do this for a simple reason. Europe 
 has the bulk of the trade of the world, and especial ly the bulk of the South American 
 trade, and Loudon is the monetary center of Europe. The South American does uofc 
 buy in the United States a sufficient quantity of goods to make a draft on New York 
 valuable to him. He does not want his money placed here, for it will cost him some 
 trouble and some expense to transfer it to London, where he has to meet his pay- 
 ments. Therefore I have to do it for him. 
 
 THE TESTIMONY OF AN EXPERT. 
 
 Mr. Charles R. Flint, who is a delegate to the International Con- 
 gress, said : 
 
 There are Spanish-American products Imported into the U^^ited States amounting 
 in the aggregate to |18l,000^0()0, ProductB of tbe Unite^ ^^a*®* expoi^ted to thft
 
 THE UNITED STATES AND LATIN AMERICA. 291 
 
 South American nations aggregate $69,000,000. Naturally it would be supposed that 
 the value of all the exports from the United States would be to their extent an offset 
 in the liquidation of the traffic. As a matter of fact, only rather less than more than 
 $45,000,000 is liquidated in this manner or through Nortli American flnancial institu- 
 tions. The remainder, |;i:5(),000,000, is j)aid by drafts at ninety days on North Amer- 
 ican merchants upon Loudon banks or bankers, which, after acceptance, become 
 immediately available for the purchase of European products. The North American 
 merchants' further responsibility consists merely in having the cash in London before 
 the date of maturity. English bankers charge three-quarters per cent, for this ac- 
 commodation. Thus, on the $1:36,000,000 liquidated in this manner the English ban- 
 ker's prolit is a round million dollars. 
 
 THE OPINION OF AN ENGLISHMAN. 
 
 Capt. Archibald P. King, au English banker, now visiting this coun- 
 try, in speaking of the coming conference, said to a reporter of Export 
 and Finance : 
 
 I am glad that American merchants are waking up and beginning to realize the 
 short-sighted policy of their Government toward foreign commerce and banking. 
 The banker's commission on the trade between the two Americas is the smallest ele, 
 ment in the premises, amounting to less than £400,000. The use of the mouey- 
 which aggregates a hundred times as much as the commission, is far more impor- 
 tant and profitable. 
 
 Weightier still is the influence of banking facilities upon commerce itself. In the 
 fierce competition of modern trade the fraction of a cent will make one manufacture 
 succeed and its rival in some country fail. In cotton textiles there is a struggle be- 
 tween English and American looms for the markets of the world. In many South 
 American cities the former prevail on account of the excellent banking facilities be- 
 tween them and London, and the total absence of such facilities between them and 
 New York. A similar state of affairs obtains in other industries. In axes, hatchets, 
 spades, and shovels there ia a heavy competition between America, England, Belgium, 
 and Germany. In petroleum and its products there is beginning to be a rivalry be- 
 tween the States and Russia. In clocks, machine-made watches, small hardware, 
 and what you call " notions" there is the same fight. An increase in banking facili- 
 ties between New York and its foreign customers would benefit every manufacturer, 
 and by enlarging the margin of profit would enable the latter to extend his trade and 
 find markets which are now utterly unavailable. 
 
 THE VIEWS OP A BANKER. 
 
 Mr. J. Edward Simmons, president of the Fourth National Bank of 
 New York, said recently : 
 
 It is a standing disgrace to American statesmen that South and Central America 
 should do their banking and draw their supplies from European banking and com- 
 mercial centers. There is very little that they need from outside their own bound- 
 aries that this nation ia unable to furnish them as cheaply and as well made as they 
 can get elsewhere. As far as I have given the subject attention, our failure to ab- 
 sorb that trade is not due to lack of enterprise in our merchants and manufacturers, 
 but simply to our inability to deliver goods in their ports with as small freighting 
 charges as are imposed by the ships of other nations. It is the old story of throwing 
 a stone in a pool. In this case the point where the stone plunges and the resulting 
 waves are largest is the ship, but every trade and industry feels the effect. It is 
 about time that the general commercial interests of the country were freed from the 
 eUackles which were imposed to encourage the industry of ship-bviilding. Jf tUe CQm»
 
 292 TRADE AND TRANSPORTATION BETWEEN 
 
 ing Congress of Nations accomplishes any good results, as I believe it will, in luy 
 judgment it will be in the direction of preseutiug this question in such .a shape that 
 there will be no more toll-taking by a few ship-builders. Moreover, the matter of 
 subsidy concessions will be less abhorrent to American statesmen. 
 
 OPINION OF ANOTHER BANK PRESIDENT. 
 
 Said Mr. George S. Coe, president of tbe American Exchange National 
 Bank : 
 
 There is obviously some maladjastment of relations which enables English bankers 
 to take $1,000,000 toll out of the exchange of products between Spanish Americana 
 and the United States. It is to be hoped that the coming Congress of the Nations of 
 the three lister continents will be able to ascertain the friction point and suggest a 
 remedy As far as my impression goes the trouble lies in our navigation laws, which 
 virtually renounce all but coastwise freightage for foreign vessels. I know that sev- 
 eral very important public exigencies contributed to making those laws tolerable at 
 the time they were enacted. Still, the nation has grown so marvelously since that 
 Avhat was hardly tolerable then is now more than intolerable. Commerce extends its 
 benelits to so many industrial interests that I am persuaded that the true national 
 interest lies in encouraging it by the removal of restrictions, and even by subsidies, 
 which other nations employ to great advantage.
 
 niE UNITED STATES AND LATIN AMERICA. 293 
 
 11. 
 
 SUGAR TRADE OF THE UNITED STATES. 
 
 By John M. Carson, late Cleric Committee on Ways and Means, House of Representatives. 
 
 Sugar has formed from the earliest period one of the most important 
 single commodities in- our import trade. For the past four years the 
 average quantity imported annually was 2,880,073,485 pounds, and the 
 average value $72,440,910. During the same period the annual average 
 value of all dutiable merchandise imported was $429,728,743, so that 
 the single item of sugar was equal to one-sixth of all the dutiable mer- 
 chandise imported. The importation from the Sandwich Islands is 
 not included in the figures above given. The importation of sugar is 
 entirely from Spanish-American countries, with the exception of that 
 received from Hawaii. Adding the receipts of this free sugar from the 
 Sandwich Islands makes the average quantity annually imported for 
 the four years ending with June, 1888, over 300,000,000 pounds, and the 
 average annual value nearly $82,000,000. 
 
 The importance of sugar to the revenues is shown by the fact that 
 during the four years stated the annual average amount of duty col- 
 lected on imported sugar was $52,076,491 ; the average of the total 
 duty collected during that period from all the merchandise imported 
 being $199,450,054, thus showing that the duty derived from sugar was 
 equal to more than 25 per cent, of the entire revenues of the Govern- 
 ment derived from imported merchandise. 
 
 OUR niPORTS OF SUGAR. 
 
 Sugar is imported mainly from Mexico, the West Indies, and South 
 America. Out of the total import during the fiscal year 1888, which 
 amounted to 2,700,248,157 pounds, valued at $74,243,554, there was re- 
 ceived from Spanish-American countries 2,103,678,668 pounds, valued 
 at $56,139,239 ; so that it may be said that the importation of sugar 
 into the United States is confined mainly to the Spanish-American 
 countries. 
 
 The importation of molasses from the West Indies and South America 
 forms a separate item. This molasses comes mainly from Cuba. The 
 aggregate importation will average about 36,000,000 gallons per annum, 
 with an average value of about $6,000,000.
 
 294 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 Last year there was received from the Hawaiian Islands 228,540,513 
 pounds of su^ar, valued at $10,200,048, and from Germany there was 
 received 61,919,752 pounds of beet sugar, valued at $1,594,760. 
 
 While sugar is received from fourteen of the Spanish-American coun- 
 tries, more than one-half of the entire importation comes from the island 
 of Cuba. 
 
 SUGAR IMPORTED FROM SPANISH AMERICA. 
 
 A table is appended which shows the quantities and value of sugar 
 imported during the year ending June, 1888, from the various countries : 
 
 Sugar imported for the year ending June, 1888, f7-ovi the countries named. 
 
 Conntries. 
 
 Quantity. 
 
 Value. 
 
 Brazil <... 
 
 Guatemala 
 
 San Salvador 
 
 Danish West Indies . 
 Trench West Indies . 
 Britisli West ludiea . 
 
 British Guiana 
 
 Britisli Uouduraa 
 
 Hayti 
 
 Mexico 
 
 San Domingo 
 
 Cuba 
 
 Porto Rico 
 
 Colombia 
 
 Venezuela 
 
 Total 
 
 Pounds. 
 305, 86(), 337 
 
 4, 620, 255 
 
 3, 070, 850 
 11, 103, 826 
 
 5, 70G, 337 
 302, 596, 709 
 
 94,914,020 
 
 928, 873 
 
 .534, 220 
 
 614, 574 
 
 44, 793, 992 
 
 , 209, 170, 332 
 
 115,653,809 
 
 4, 094, 845 
 
 3,719 
 
 2, 103, 678, 668 
 
 Dollars. 
 
 6, 752, 555 
 
 17C, 905 
 
 85, 607 
 
 295,312 
 
 109, 859 
 
 6, 936, 995 
 
 2, 813, 992 
 
 23, 761 
 
 15, 104 
 
 14,543 
 
 1, 248, 544 
 
 34,545,116 
 
 2, 997, 713 
 
 123, 047 
 
 186 
 
 56, 139, 23« 
 
 Total imported from, all countries. 
 
 Cane sugar -^ 
 
 Pounds. 
 2, 409, 757, 892 
 61, 949, 752 
 
 Dollars. 
 62, 388, 740 
 1, 594, 766 
 
 
 
 From Hawaiian Islands 
 
 2,471,707,644 
 228, 540, 513 
 
 63, 983, 506 
 10, 260, 048 
 
 
 
 Total 
 
 2, 700, 248, 157 
 
 74, 243, 554 
 
 
 
 Sugars above No. 13 are not included in the above tables, 
 amounted to 30,125 pounds, valued at $1,642. 
 
 These 
 
 SUGAR TRADE WITH HAWAII. 
 
 In connection with the importation of sugar from Spanish-American 
 countries, which, as has been shown, pay over 25 per cent, of the customs 
 revenue collected by the Government, the growth of the inii)ortation 
 of sugar free of duty from the Sandwich Ishinds will be of interest. 
 The importation from these islands shows a steady increase. Thus in 
 1879 the total importation was 41,090,674 pounds, valued at $2,811,675, 
 while in 1888 this had grown to 125,158,677 pounds, valued at $7,108,877; 
 an increase of 200 per cent. During the last four years the average 
 annual importation of sugar from the Hawaiian Islands exceeded 
 200,000,000 pounds and the value $9,220,445.
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 296 
 
 IMPORTS FROM THE HAWAIIAN ISLANDS. 
 
 The growth of tbis trade is shown in the annexed table, which ex- 
 hibits the quantities and values of sugar imported from Hawaii for the 
 eleven years ending June 30, 1889 : 
 
 Years. 
 
 Quantity. 
 
 Value. 
 
 Tears. 
 
 Quantity. 
 
 Value. 
 
 1879 
 
 Pounds. 
 41, 696, 674 
 61, 556, 708 
 76, 907, 247 
 106,181,858 
 111, 132, 670 
 125, 158, 677 
 
 Dollars. 
 2,811,096 
 4,137,058 
 4, 928, 424 
 
 6, 923, 608 
 
 7, 301, 044 
 7, 108, 777 
 
 1885 
 
 Pounds. 
 169, 652, 603 
 191, 623, 175 
 218,290,835 
 228, 540, 513 
 243, 324, 683 
 
 Dollars. 
 8,198,404 
 
 1880 
 
 1886 
 
 9, 166, 826 
 
 1881 
 
 1887 
 
 9, 255, 351 
 
 1882 
 
 1888 
 
 10, 260, 800 
 
 1883 
 
 1889 
 
 12,078,518 
 
 1884 
 
 
 
 
 
 The adniission free of duty of sugar grown in Hawaii was the means 
 of destroying the sugar trade between San Francisco and the countries 
 of South Auierica bordering on the Pacific Ocean, and in some of those 
 countries caused large financial loss through the abandonment of sugar 
 plantations. The total commerce of Hawaii with the United States in 
 1888 amounted to $14,000,000, of which $11,150,379 was received from 
 the Islands and $3,025,878 sent them in return. It will be noticed that 
 sugar constitutes nearly all the merchandise received from Hawaii, and 
 may be said to constitute the volume of trade between the two countries. 
 
 EXPORT OF REFINED SUGAR. 
 
 The value of refined sugar exported during the year ending June, 
 1888, was $2,184,788, which was the lowest since 1882 and is only equal 
 to one-fifth of the exportation for the preceding year. For the five 
 years ending with June, 1888, there was exported about $40,000,000 
 worth of refined sugar, of which a large quantity went to the Spanish- 
 American countries. One-third of the exportation for the last year 
 went to those countries. In addition to the exports of sugar, the value 
 of molasses annually exported is about a million dollars. 
 
 The total export of domestic sugar to Spanish-American countries 
 for the fiscal year 1888 was about 12,000,000 pounds, valued at about 
 $800,000. 
 
 Chili, Mexico, the Central American States, British West Indies, 
 Hayti, British Columbia, and the United States of Colombia are the 
 largest purchasers of our exported sugar, the amount purchased by 
 the several countries named varying from $40,000, in tlie case of Cen- 
 tral America, to $227,000, in the United States of Colombia, which is 
 the largest purchaser. 
 
 The total exports of domestic refined sugar to all countries for the 
 year 1888 was 34,505,311 pounds, valued at $2,184,788. The proportions 
 that went to the Spanish-American countries will be seen by the an- 
 nexed table.
 
 29G TRADK AM) TRANSPORTATION RETWHRN 
 
 Refined sugar exported lo Spanish America for the year ending Jtine, 1888. 
 
 To- 
 
 Argentine Republic 
 
 Central America: 
 
 Codta Rica 
 
 Guatt'uiala 
 
 Houdnras 
 
 Nicuriv^iia 
 
 San Salvador 
 
 Chili 
 
 Danish West ludiea 
 
 Ecuador 
 
 Freuch West Indies 
 
 French Guiana 
 
 British West Indies 
 
 British Uuiana 
 
 British Honduras 
 
 Hayti 
 
 Mexico 
 
 Dutch West Indies - 
 
 Dutch Guiana 
 
 Peru 
 
 San Doniins;© 
 
 Cuba 
 
 British Colombia 
 
 Porto KioD 
 
 United States of Colombia . 
 
 TJnimiay 
 
 Venezuela 
 
 Total 
 
 Brown domestic . 
 Brown foreign... 
 
 Total , 
 
 Quantity. 
 
 Poxindg. 
 
 584 
 
 JG4, GIO 
 
 11, ;!10 
 
 17l,4:{4 
 
 219,477 
 
 :i70 
 
 l.O.'iti.Sn 
 
 lOi), 711 
 
 •lf>, !t'.7 
 
 :i, 0(10 
 
 11.'9, 40'J 
 
 2,o:;8, 1^13 
 10, :ii9 
 
 103,313 
 
 1,252,743 
 
 h42, 298 
 
 121,303 
 
 5, 700 
 
 733 
 
 2C.-», 209 
 
 1, 6.i8 
 
 1,017,183 
 
 21, 385 
 
 3,178,283 
 
 15, 034 
 
 521 
 
 Value. 
 
 Dollars. 
 38 
 
 11,843 
 
 774 
 
 11,919 
 
 14, 892 
 
 23 
 
 08,944 
 
 7,716 
 
 1,811 
 
 250 
 
 8, 483 
 
 139,480 
 
 090 
 
 0, 076 
 
 83, 519 
 
 58, 123 
 
 8,860 
 
 375 
 
 45 
 
 18, 603 
 
 100 
 
 94. 951 
 
 1,539 
 
 227, 324 
 
 1,175 
 
 U 
 
 11, 363, 942 
 140, 310 
 439, 740 
 
 11,943,028 
 
 708,187 
 
 7,409 
 
 10,313 
 
 785, 969 
 
 Domestic sugar, molasses, and confectionery exported to all countries for the year 1888. 
 
 Description. 
 
 Refined sngar . 
 Brown sugar . . 
 Confectionery . 
 
 Total 
 
 Molasses, gallons. 
 
 Quantity. 
 
 Pounds. 
 
 34, ,505, 311 
 
 140, 846 
 
 34, 616, 357 
 7, 226, 128 
 
 Value. 
 
 Dollars. 
 2, 184, 788 
 7, 502 
 155, 521 
 
 2,347.811 
 1, 031, 185 
 
 Of the $155,521 worth of confectionery exported, the Sonth Ameri- 
 can countries purchased $50,000, or more than a third; and of this the 
 Island of Cuba purchased about $17,000, or nearly one-third of the en- 
 tire amount exported to Spanish America. The British West Indies, 
 Mexico, and Colombia each i)urchased over $0,000 worth, Central 
 America over $5,000 worth, and Venezuela about $5,000 worth. 
 
 FLUCTUATIONS OF THE EXPORT TRADE. 
 
 The export of refined sugar from the United States for the ten years 
 ending June 30, 1SS9, presents some interesting features and will be of in- 
 terest to those who produce the brown sugar as well as to those who 
 exjiort the refined article, lieginning with 1880 the export was 
 30,000,000 pounds, which dropped to 22,000,000 pounds in 1881 and to 
 13,701,000 pounds in 1882. The following year it was doubled, in-
 
 THE UNITED STATES A\D LATIN AMERICA. 
 
 297 
 
 creasod to 75,920,734 in 1884, and iu 1885 reached the highest point 
 ever known, the quantity being 252,579,077 pounds and the vahie over 
 $1(5,000,000. This exceeded the entire quantity of sugar i)roduced in 
 the United States for that year. In 188G there was a falling oil' to 
 104,339,907 pounds. The following year shows an increase to 190,072,- 
 154 pounds. Then came a drop to 34,505,311 pounds, and a greater 
 drop in the year ending June, 1889, to 14,000,000 pounds, the lowest 
 since 1882. For the ten years the annual average was 82,511,399, and 
 the average value $5,519,422. The ex])orts for the last two years 
 combined did not equal this average. 
 
 The annexed table shows the total exports of refined sugar for the 
 ten years ending June 30, 1889: 
 
 Tears. 
 
 Quantity. 
 
 Value. 
 
 Tears. 
 
 Qaantity. 
 
 Value. 
 
 1880 
 
 Pounds. 
 
 30,125. !46 
 22. 227, 8,57 
 1^,761,069 
 26 81.5, 4t;3 
 75. 920, 7:i4 
 252, 579, 077 
 164, 339, 907 
 
 Dollarg. 
 2. 217, 563 
 2, 049, 982 
 1, 1^35,689 
 2. 4.54, 2,0 
 5 402, 493 
 16,071.767 
 10, 972, 729 
 
 18.S7 
 
 Po^inds. 
 
 190, 672, 154 
 
 34, 50.5, 311 
 
 14, 167, 216 
 
 Dollarg. 
 11,435,765 
 
 1881 
 
 1888 
 
 2 184, 788 
 
 1882 
 
 1889 
 
 Total 
 
 Auuual average. 
 
 1, 070, 2:)6 
 
 1883 
 
 
 1884 .. .. ' 
 
 82.5,113,994 
 82,511,399 
 
 55 194 222 
 
 1885 
 
 1886 . ..• 
 
 5,519,422 
 
 
 
 REQUIREMENTS FOR HOME CONSUMPTION. 
 
 The relation that the Louisiana sugar sustains to that imported will 
 be better understood and realized by giving the figures for each. The 
 figures here given are for the year ending June 30, 1888. During that 
 year the quantity of sugar imported was 2,700,248,157 j^ounds. and 
 the quantity produced in Louisiana and other Southern States was 
 375,904,197 pounds. 
 
 The annual per capita consumption of sugar in the United States 
 has averaged for the five years ending with Juno, 1888, 52 pounds. 
 The production in the United States last year was equal to a fraction 
 over pounds per capita, and the crop for 1888 was the largest since 
 1802, when it reached about 540,000,000 pounds. It will thus be seen 
 that the native crop is at the present time equal to only one-ninth of 
 the actual requirements for home consumption. 
 
 Reducing to tons the quantity of sugar consumed in the United States 
 for the year 1888, it is found to equal 1,409,997 tons (2240 pounds), of 
 which tlie domestic production was 189,814 tons, which includes 20,000 
 tons of maple sugar, 1,040 tons of beet, and 300 tons of sorghum. 
 
 The consumption of sugar in the United States must increase with 
 the increase of population. Whatever may be the possibilities of the 
 future, it can not be expected that the home production will equal the 
 consumption for many years to come. Indeed it may be considered 
 very doubtful whether the domestic crop of cane sugar will ever exceed 
 10 pounds per capita of the population of the United States, which is 
 less than one-fifth of the present consumption. The United States
 
 298 
 
 TRADE AXD TRANSPORTATION BETWEFN 
 
 therefore, for many years, and perhaps for all time, so far as cane 
 sugar is concerned, will necessarily depend upon the sugar-growing 
 countries of Spanish America for this commodity. The successful de- 
 velopment of sorghum and the sugar-beet in this country may change 
 the present conditions, but until a change takes place it is suggested 
 that the United States should enter into such treaties with Spanish 
 America, or enact such laws as will enable tlie people of this country 
 to purchase a staple as necessary almost as flour in the daily economies 
 of life, without being required to pay a duty to the custom house nearly 
 equal to the value of the sugar. The annexed table shows the con- 
 sumption in 1888 of sugar in the United States in tons (2,240 pounds 
 to the ton) ; also the quantities of domestic and imported respectively 
 wliich entered into consumption : 
 
 Imported tons.. 1,280,183 
 
 Donieslic : 
 
 Cane tone.. 167,814 
 
 Maple do.. 20,000 
 
 Beet do.. 1,640 
 
 Sorghum do . . 360 
 
 189, 814 
 
 Total 1,469,997 
 
 Consumption per capita pounds.. 53. 1 
 
 Domestic production per capita do.. 6. 11 
 
 DUTIES COLLECTED ON SUGAR. 
 
 The relation that the present duty on sugar bears to its value will 
 be more readily' understood by showing the value of sugar imported for 
 the four years ending with June, 1888, and the duties collected thereon. 
 The present rateof duty went into eflect July 1, 1883, but it is probable 
 that the full force of the law was not felt until the fiscal year 1885, 
 although it appears that the duty collected for the fiscal year 1884 
 exceeded that collected the preceding year by $3,000,000, which is ex- 
 plained, perhaps, by the fact that there was an increase in the impor- 
 tations over the preceding year of more than 500,000,000 pouiuhs. For 
 the year 1884 the importation was valued at $90,753,410, upon which 
 there was collected $47,500,750. 
 
 The annexed table shows the values and duties collected for the four 
 years ending June 30, 1888, upon sugar im])ortod into the United 
 States : 
 
 
 Tears. 
 
 Value. 
 
 Dutica. 
 
 18fl.' . 
 
 $p.R,5ni,49r. 
 
 77,218, i:j;. 
 
 71,510. (;ii7 
 04, 000. 748 
 
 $50, Sfi.'i. 91 G 
 ."iO, 2(;5, &'18 
 
 IHHI] 
 
 ]8a7 
 
 r.6, 50 /, 40G 
 
 1888 
 
 60, 61/, 014 
 
 
 
 
 Total 
 
 284, 278, 985 
 
 206, :i05, 964 
 
 
 
 
 
 71, 069, 746 
 
 52, 076, 481 
 

 
 THE UNITED STATES AND LATIN AMERICA. 299 
 
 The importation for the year ending June 30, 1SS9, was above the 
 average, having reached 2,518,848,901 pounds in quantity and $70,502,- 
 023 in value. 
 
 THE ARGENTINE REPUPLIC AND URUGUAY. 
 
 An examination of the quantities and values of sugar exported to the 
 Argentine Republic and Uruguay during the past ten years shows a 
 steady decline. This is more marked in the trade with the Argentine 
 Republic. As will be seen by the table given on a preceding page the 
 export of sugar to that country during the year 1888 dropped to figures 
 that are not worthy of mention, except for purposes of comparison. 
 From 1875 to 1881, both years incUisive, the export of refined sugar to 
 the Argentine Republic varied from 1,000,000 to 5,000,000 pounds an- 
 nually. For the year 1879 it rose to 5,632,623 pounds, valued at $481,- 
 000, which was equal to 23 per cent, of the total exports to that country 
 from the United States for that year. For the year 1881 the export 
 was 3,326,840 pounds. It suddenly fell the following year to 261,133 
 pounds, rose to 758,551 pounds for 1884, and did not reach those figures 
 any year since. 
 
 For the seven years ending with June 30, 1881, the export of refined 
 sugar to the Argentine Republic aggregated 21,061,012 pounds, valued 
 at $2,038,873, which gives an annual average of over 3,000,000 pounds, 
 and an average value of nearly $300,000. Compare this with the export 
 for the seven years ending June 30, 1888, for which period the aggregate 
 quantity was 2,585,295 pounds, and the value $188,913, and it will be 
 seen that the aggregate exportation of refined sugar to the Argentine 
 Republic for the past seven years was considerably below the annual 
 average for the seven years preceding 1882. These figures are the more 
 suggestive and significant in view of the fact that the Argentine Re- 
 public has largely increased its commerce and population, and materi- 
 ally developed its great material resources since 1875, the exports from 
 the United States alone having increased from $1,439,618 in 1875 to 
 $6,643,553 in 1888. 
 
 STEADY FALLING OFF IN THE TRADE. 
 
 Similar results are found in the export of refined sugar to Uruguay. 
 The fluctuations were marked between 1870 and 1881. For the year 
 1881 the exportation was valued at $224,740. Since then it has steadily 
 declined until, like that of the Argentine Republic, the export of refined 
 sugar to Uruguay has almost dwindled out of sight. 
 
 While the export of refined sugar to the Argentine Republic and Uru- 
 guay has declined to insignificant figures the past two years, it is 
 worthy of notice that the entire export of this commodity has had a 
 very large decline. Small as it was in 1888, it was still smaller for the 
 year ending June 30, 1889, the figures being 14,167,216 pounds, valued 
 at $1,070,236. Compared with 1888, however, there was no diminution
 
 300 TRADE AND 'J'RANSPOK'lAl'lON P.KTWEEN 
 
 in the aggregate qnantity sent to Spanish American conutries. The 
 large falling otf is explained by the fact that Great Britain, which re- 
 ceived neaily 10,000,000 pounds in 1888, received only 527,111 pounds 
 the last fiscal year. 
 
 GROWTH OF BEET SUGAR. 
 
 There can be no donbt that the beet sugar of Europe, the manufact- 
 ure of which is steadily increasing, is displacing the cane sugar of 
 America. For the year ending June oO, 1889, the quantity of beet 
 sugar imported into the United States reached 24:3,471,041 pounds, 
 against less than 62,000,000 pounds during the preceding year. This 
 is a more serious question to the cane-sugar-growing countries than to 
 the United States. The United States furnishes the principal market 
 for cane sugar, and requires a large proportion of the annual importa- 
 tion for home consumption. Every ton of beet sugar received here 
 from Europe displaces a ton of cane sugar grown in Spanish America. 
 The South American countries must have refined sugar, and a sound 
 public policy as well as a desire to protect their own crop should induce 
 the people of those countries to purchase from the United States their 
 own sugar in the refined form rather than the beet sugar of Germany, 
 France, and Belgium. 
 
 SUGAR IMPORTS FROM BRAZIL. 
 
 The importation of sugar into the United States-from Brazil averages 
 about $7,000,000 per year, yet Brazil receives no refined sugar from the 
 United States worthy of being recorded specifically in the official com- 
 mercial reports, and the Argentine Kepublic and Uruguay are now also 
 supplied from European markets. It is probable that some of the sugar 
 thus received is cane sugar exported from the United States to Europe, 
 which finds entrance to South America through thesni>erior transi)orta- 
 tion facilities established between Europe and South America. While 
 this fact furnishes an argument for the establishment of regular and 
 rapid communication between the two American continents, the people 
 of South America should not lose sight of the more important fact to 
 them, that to encourage the beet-sugar industry of Europe is certain to 
 operate against the value and the development of their crop of cane 
 sugar. 
 
 During the years 1880 and 1881 the Argentine Ilepublic received from 
 the United States 0,400,000 pounds of refined sugar. In 1882 there was 
 exported to that country from the United States only 201,13.) i)ouiids. 
 Since then the annual export has fluctuated, rising to 758,000 pounds 
 in 1884, dropping to 584 pounds in 1888, and again rising to 32,452 
 pounds for the year ending June 30, 1880. For the past ten years 
 the aggregate exportation was 9,027,081 pounds, nearly two-thirds of 
 which were exported in 1880 and 1881. These figures are taken from 
 United States custom-house reports. The vessels which carried this 
 merchandise cleared for Argentine ports, but some of it undoubtedly
 
 THE UNITED STATES AM) EATIN AMERICA. oOl 
 
 was delivered to Uruguay and other neijrliboring countries, and doubt- 
 less was transsbii)[)ed to the Ai-gentine llei)ublic. 
 
 EUEOPEAN SUGAR IN SOUTH AMERICA. 
 
 But it is plainly apparent that the beet sugar of Europe is gaining 
 ground in America, and particularly south of the equator. From offi- 
 cial returns of the Argentine Governmout it appears that the imports 
 of sugar from France, Germany, Holland, and Belgium have steadily 
 and largely increased the past few years. Thus in 1880 there was re- 
 ceived from Belgium 0,000,000 pounds; France, 7,000,000 pounds; Ger- 
 many, 1)45,000 pounds; Holland, 3,000,000 pounds. In 1887 there was 
 received from Belgium 13,000,000 pounds; France, 22,000,000 pounds ; 
 Germany nearly 0,000,000 pounds, and Holland, nearly 3,000,000 pounds. 
 Large as these figures are, they were exceeded in 1884, when the imports 
 from the four countries named reached 54,000,000 pounds, while there 
 was received the same year from the United States only 17,000 pounds. 
 
 In the seven years ending with the Argentine fiscal year 1887 the ag- 
 gregate imports of sugar was 329,002,094 pounds, of which 89 percent, 
 was received from Eurojie, the aggregate imported from the United 
 States being 7,228,182 pounds, against 293,000,000 received from Europe. 
 In the same period over 24,000,000 pounds were received from Uruguay. 
 As Uruguay received during the last nine years less than 0,000,000 
 pounds from the United States, it follows that a very large proportion 
 of the 24,000,000 pounds exported to the Argentine liepublic was from 
 Europe. It can not be reasonably claimed that any considerable quan- 
 tity of European sugar received in the Argentine Republic from Europe 
 was cane sugar exported from the United States, because the beet-pro- 
 ducing countries of Europe receive comparatively small quantities of 
 refined sugar, and the sugar exported to the Argentine Republic from 
 England for the i^eriod above named, which country receives the bulk 
 of the refined sugar exported from the United States to Europe, was only 
 7,087,830 pounds. 
 
 THE SALES OF REFINED SUGAR IN BRAZIL. 
 
 What is true of the sugar trade of the Argentine Republic is true 
 also of that of Brazil and Uruguay. In the ten years ending June, 1889, 
 less than 150,000 pounds of refined sugar went from the United States to 
 Brazil, and about 5,000,000 pounds to Uruguay. The export of sugar 
 to those two countries from the United States has practically ceased 
 for the past three years. As before intimated, it is probable that the 
 lack of direct, regular, and frequent steam-ship communication be- 
 tween tlie two American continents is largely responsible for the steady 
 and rapid growth of the sugar trade between South America and Eu- 
 rope. With direct lines of steam-ships it is reasonably certain that the 
 United States would supply that continent with the bulk of the refined 
 sugar consum64 there,
 
 302 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 The fact that the Argentine Republic alone purchases about 40,000,000 
 pounds of refined sngar shows tlie extent and value of this one com- 
 modity as an article of connuerce, and should suggest to the United 
 States authorities the importance of doing something to establish and 
 maintain rapid ocean communication with the Spanish-American coun- 
 tries. 
 
 STRUGGLE BETWEEN THE BEET AND THE CANE. 
 
 There is another and equally important consideration in this conuec* 
 tion. The maintenance and extension of the manufacture of refined 
 sugar in the United States, and the continuance of the profitable cul- 
 tivation of sugar cane in the West Indies, Central and South America 
 are involved. lu America at least it promises to become a struggle be- 
 tween the sugar-beet of Europe and the sugar-cane of the American 
 continents, and unless something be speedily done reciprocally by the 
 governments and people of America to j)rotect sugar-cane and the man- 
 ufacture of refined sugar, there is danger that beet sugar grown and 
 manufactured on the European continent will become supreme in all 
 the countries of South America and exclusive in a number of them. 
 As previously stated, the United States now exports to South America 
 and the West Indies about 12,000,000 pounds of refined sugar annually, 
 while Europe exports to the Argentine Kepublic alone three times that 
 amount. The shipments of refined sugar from France to the Argentine 
 Kepublic now exceed in quantity and value the aggregate of that 
 shipped to all the Spanish American states, and has done so since 1881. 
 
 SUGAR TRADE IN THE ARGENNINE REPUBLIC. 
 
 The extent of the exports of refined sugar from Europe to South 
 America will be seen from the annexed table, which shows the quan- 
 tity in pounds received in the Argentine Eepublic for the eight years 
 ending with the Argentine fiscal year 1887, from the United States, 
 Uruguay and other South American countries, and countries of Europe. 
 
 QuantUy of refined sugar imported into the Argentine Bepuilio for the eight Argentine 
 fiscal years ending withlS87, and from what countrlea imported, 
 
 [From Argentine official reports.] 
 
 Years. 
 
 United 
 States. 
 
 Uruguay. 
 
 Europe. 
 
 Brazil, etc. 
 
 Total. 
 
 18S0 
 
 18S1 
 
 Pottndg. 
 
 I, 738, 2'J9 
 
 4, 5;i5, (183 
 
 108,294 
 
 1511, -JSO 
 
 17, 194 
 
 59, 744 
 
 329,071 
 
 2S9, 047 
 
 Fovnds. 
 
 301,216 
 1,240,294 
 
 2, 003, 030 
 
 3, 034, 427 
 4,505,055 
 3, 250, 798 
 5,344,890 
 4,009,482 
 
 Pounds. 
 18,9»1,037 
 28,731,119 
 29, 749, 8f,'i 
 40, 887, 931 
 58, 518, 009 
 35, 438, ?55 
 34, 539, 881 
 40, 152, 004 
 
 Poundf. 
 
 ""2,' 20.5,' 758' 
 
 45, 430 
 
 170, 400 
 
 Pounds. 
 21,021,152 
 
 DoUart. 
 1. 618, 757 
 
 1882 
 
 30' 5Q7' '>()(3 9' 7<;i' 19S 
 
 1883 
 
 44, 243, 008 
 6.3,041,518 
 
 39, 645, 476 
 
 40, 218, 355 
 50,513,005 
 
 3, 739, 834 
 5, 148, 132 
 3, 207, 751 
 
 1884 
 
 MiHj 
 
 890, 079 
 3, 9(17 
 1,332 
 
 188t) 
 
 1887 
 
 4 201 038 
 
 
 
 Total 
 
 7, 228, 182 
 
 ?4, 35a. 398 
 
 293, 000, 548 
 
 3, 370, 906 
 
 329, 962, 094 
 
 96, 851, 068 

 
 THE UNITED STATES AND LATIN AMERICA. 
 
 303 
 
 The growth of the sugar trade between Europe and South America 
 may be inferred from the annexed table, which shows the quantities and 
 vahies of refined sugar imported into the Argentine liepublic from 
 the several countries named for the Argentine fiscal years 1880 to 1887 : 
 
 Tears. 
 
 Eelj;ium. 
 
 France. 
 
 Germany. 
 
 1880 
 
 Pounds. 
 6,001,274 
 
 6, 402, 759 
 5,18.5.541 
 4, G8G, 52.', 
 7,433,319 
 8, 00.5, 054 
 
 7, 044, 144 
 13, 374, 464 
 
 Dollars. 
 461,152 
 653, 336 
 408, 804 
 378, 49!) 
 621,610 
 659, 159 
 585, 823 
 1, 111), 036 
 
 Potmds. 
 6, 909, 603 
 10,510,9 
 14, 073, 344 
 20, 00!), 748 
 27,464,014 
 16,283,186 
 15,871,449 
 21,983,633 
 
 Dollars. 
 540, 498 
 703, 296 
 1,09;;, 702 
 1,751,009 
 2, 186. 339 
 1, 32K, 912 
 1,319,997 
 1, 828, 350 
 
 Pomids. 
 
 943, 103 
 3. 135, 589 
 3, 741, 376 
 10,072,539 
 9, 628, 8.53 
 6, 382, 058 
 2,374,458 
 5, 605, 066 
 
 Dollars. 
 78,58a 
 24* 5''9 
 
 1881 
 
 1882 
 
 317,191 
 833 250' 
 
 1883 
 
 1884 
 
 1, 047] 386 
 484, 207 
 197,475. 
 466, 17a 
 
 1885 
 
 1886 
 
 1887 
 
 
 Tears. 
 
 Holland. 
 
 Italy. 
 
 Sp 
 
 lin. 
 
 Great Britain. 
 
 1880 
 
 Pou7ids. 
 
 2, 904, 993 
 
 3, 869, 655 
 
 4, 976, 554 
 
 3, 167, 728 
 9,491,182 
 
 4, 347, 706 
 7, 000, 635 
 2, 987, 348 
 
 Dollars. 
 216,201 
 282, 812 
 580, 404 
 259, 1U6 
 589, 382 
 360, 800 
 582, 198 
 248, 418 
 
 Pounds. 
 
 22, 383 
 214, 764 
 
 Dollars. 
 
 1,715 
 
 17, 166 
 
 Pounds. 
 43, 055 
 58, 193 
 
 Dollars. 
 3,298 
 4,585 
 
 Pounds. 
 
 1, 955, 300 
 
 1, 289, 448 
 29.->, 031 
 
 1,010,110 
 645, 555 
 199, 021 
 935, 431 
 757, 844 
 
 Dollars. 
 
 148,848 
 97, 568 
 22 765 
 
 1881 
 
 1882 : . . 
 
 1883 
 
 42, 496 
 
 50, 706 
 
 1,433 
 
 3.346 
 
 4,217 
 
 82 
 
 
 
 83 633 
 
 1884 
 
 1885 
 
 148, 899 
 
 5,050 
 
 47, 626 
 16, 040 
 77, 797 
 
 1886 
 
 
 
 1887 
 
 123, 071 
 
 10, 285 
 
 366, 074 
 
 30,445 
 
 63 028 
 

 
 r)4 
 
 TKADi; AN!) ti;an«poutation between 
 
 III. 
 
 THE WOOL TRADE OF THE UNITED STATES. 
 
 By John M. Cakson, late Clerk Committee on Ways and Means, LLouse of llepresentatives. 
 
 The inipoitatiou of wool into tlio United States, ol'all grades, for the 
 six years ending June 30, 1889, which covers the entire period of the 
 operations of the present tariff act (March 3, 1883), aggregated 
 632,116,290 i)Ounds, valued at $88,296,931. Of this total quantity 
 450,641,969 pounds were carpet wools, the wools of this class consti- 
 tuting 71.3 per cent, of the entire importations for the six years. I*rior 
 to the passage of the present tariff law imported wools were not classi- 
 lied in the Treasury Keport on Commerce and Navigation, but a classi- 
 lication is made in the tables furnished in the annual reports showing 
 the quantities and values of merchandise entered for consum])tion. 
 The annexed table shows the quantities, in pounds, of each^f the three 
 grades of wool imported into the United States for the six fiscal years 
 ending June 30, 1889: 
 
 Tear. 
 
 ClothlDg. 
 
 Combing. 
 
 Carpet. 
 
 Total. 
 
 1884 
 
 21,175,228 
 11, 475, 889 
 40, 068. 537 
 17, 903, 982 
 23, 039, 679 
 29, 220, 317 
 
 4,414 252 
 2, 780, 751 
 7, 198, 534 
 10,721,753 
 
 5, 639, 528 
 
 6, 869, 871 
 
 52,761,170 
 50 339, 5S0 
 80, 917, 887 
 85, 352, 295 
 8 1, 87!), ,546 
 90,391,541 
 
 78, 350, 650 
 70 596 170 
 
 1885 
 
 1S8G 
 
 1887 
 
 129,084,958 
 114,0.>8,030 
 113 558,753 
 
 1888 
 
 1889 
 
 120,487,729 
 
 Total 
 
 143, 819, 632 
 
 37, 624, 689 
 
 450,641,969 
 
 632,116,290 
 
 
 
 IMPORTS OF VARIOUS -GRADES OF WOOL. 
 
 During the four fiscal years preceding the period above tabulated 
 the aggregate inportation of wools was 322,532,905 or an annual aver- 
 age of 80,633,226 pounds against an annual average of 105,352,715 pounds 
 during the past six years. A comparison of the two periods named 
 shows that the annual increase in the importation of the two higher 
 grades since July 6, 1883, was only about 3,300,000 ])ounds ])er annum 
 in clothing- wool, and about 1,000,000 i)Ounds in combiug-wool, while 
 the increase in carpet wools was equal to an annual average of over 
 38,000,000 ])Oun(Ls. In order that comparisons may be intelligently and 
 correctly made between the iniportations of wool prior to and since the
 
 THK UNITED SrATHS AND LATIN AMERICA. 
 
 305 
 
 passage of the i)iosent tarift" law, tables are annexed showing quantities 
 and values and amount of duty collected on the several grades of wool 
 entered for consumption the past twelve y6ars, which include six years 
 under the present and six years under the preceding tariff. 
 
 Year emliujr Juuo AG- 
 
 ISTS 
 1879 
 1880 
 1881 
 1882 
 ]88:t 
 1881 
 1885 
 1886 
 1887 
 1888 
 1889 
 
 Clasa No. 1. — Clothing wools. 
 
 Quautity. 
 
 Pounds. 
 9,916,012 
 5, 229, 987 
 26, 785, 172 
 20, 609, 707 
 13, 489, 9J3 
 11,546,530 
 20, 703, 843 
 13, 472, 432 
 23, 321, 758 
 23, 195, 734 
 16,952,513 
 29, 226, 317 
 
 Value. 
 
 Dollars. 
 
 2, 431, 043 
 1,114,301 
 6,412,273 
 4,751,4.54 
 
 3, 012, 407 
 2, 567, 443 
 
 4, 700, 605 
 
 2, 994, 533 
 4,344,189 
 4, 339, 498 
 
 3, 648, 779 
 5,971,246 
 
 AmoTint of 
 duty r o - 
 ceived. 
 
 Dollars. 
 
 1, 273, 479 
 647, 340 
 
 3, 512, 896 
 
 2, 599, 686 
 1,693,0 "8 
 1, 444, 949 
 2,111,279 
 
 1, 357, 102 
 2, 437, 049 
 
 2, 395, 537 
 1, 789, 348 
 
 Class No. 2. — Combing wools. 
 
 Qaantity. 
 
 Pounds. 
 
 3, 028, 869 
 
 1, 709, 601 
 13, 266, 856 
 
 4,421,491 
 
 2, 318, 671 
 1, 373, 114 
 
 4, 474, 396 
 3,891,914 
 
 4, 872, 739 
 9, 703, 962 
 
 5, 568, 0G8 
 
 6, 869, 871 
 
 Value. 
 
 Dollars. 
 
 969, 683 
 
 413, 761 
 
 .3,801,7.30 
 
 1,271,332 
 
 648, 252 
 
 343, 987 
 
 1,058,758 
 
 921, 252 
 
 1,106, 116 
 
 2, 270, 058 
 
 ],,322,862 
 
 1,586,079 
 
 Amount of 
 
 duty r e - 
 
 coived. 
 
 Dollars. 
 425, 220 
 218,410 
 1, 783, 362 
 585, 502 
 301, 130 
 176, 183 
 451,521 
 3t4, 901 
 4 JO, 010 
 974, 179 
 562, 198 
 
 Year eudinj' June 30- 
 
 1878. 
 1879. 
 1880. 
 1881. 
 1882. 
 1883. 
 1884. 
 1885. 
 1886. 
 1877. 
 1888. 
 1889* 
 
 Class No. 3. — Carpet wools and 
 other similar wools. 
 
 Quantity. 
 
 Pounds. 
 26, 856, 280 
 33, 163, 054 
 .'■•9,320,412 
 42, 38.5, 769 
 47, 208, 175 
 40, 130, 323 
 62, 525, 692 
 50, 782, 306 
 79, 716, 052 
 81, 504, 477 
 74,710, 396 
 90,391,511 
 
 Vahie. 
 
 Dollars. 
 3, .591, 640 
 3, 988, 752 
 7, 699, 663 
 6, 038, 041 
 6,642,699 
 5, 580, 558 
 
 7, 833, 9:i6 
 5, 558, 479 
 
 8, 343, 908 
 9,741,814 
 
 9, 090, 459 
 10, 417, 190 
 
 Amonnt of 
 duty re- 
 ceived. 
 
 Dollars. 
 1, 015, 697 
 
 1, 100, 524 
 
 2, 077, 959 
 1,675, 6 iO 
 1,857,442 
 
 1, 553, 498 
 1,960,025 
 1,412,285 
 
 2, 198, 149 
 2,530, 100 
 2.377,941 
 
 Total wools. 
 
 Quantity. 
 
 Pounds. 
 39, 801, 161 
 40, 102, 642 
 99, 372, 449 
 67,416,907 
 63,016,769 
 53, 019, 907 
 87.703,931 
 68, 146, 652 
 107,910,549 
 114,401,175 
 97, 231, 277 
 126,487,729 
 
 Value. 
 
 Dollars. 
 
 6, 995, 366 
 
 5,516,814 
 17, 913, 6(.6 
 12,060,827 
 10, 333, 358 
 
 8,491,988 
 
 13, 593, 299 
 9, 474, 264 
 
 13,794.213 
 16,351,370 
 
 14, 062, 100 
 17, 974, 515 
 
 Amount of 
 
 duty 
 
 received. 
 
 Dollars. 
 2,714,396 
 1,966,276 
 7, 374, 217 
 4,8G0, 816 
 3, 8.54, 653 
 
 3, 174, 628 
 
 4, 522, 825 
 
 3, 164, 296 
 5,126, 108 
 5,899,816 
 
 4, 729, 487 
 
 Aggregate Imported. 
 
 SOURCES OF SUPPLY FOR THE UNITED STATES. 
 
 The l)ulk of this wool is received from the countries of Europe and 
 Asia. From the Latin-American countries there were received for the 
 nine years ending June 30, 1888, nearly 170,000,000 pounds, which is 
 equal to an annual average of nearly 19,000,000 pounds. More than 
 one half of all the wool received from Spanish- American countries comes 
 from the Argentine Eepublic. In 1880 the importation from those 
 countries reached 28,550,000 pounds, and in 1886 over 30,130,878 pounds. 
 These were unusually large importations. In the latter year there were 
 received from Uruguay nearly 13,000,000 pounds, nearly all of which 
 was clothing wool ; indeed, the greater portion of the wool now received 
 S. Ex. 51 20
 
 306 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 from Uruguay is clothing nyooI, which shows that the breed of sheep in 
 that country is being improved. Clothing wool is also received from 
 the Argentine Republic, Brazil, Chili, and Mexico, but in small quanti- 
 ties. The annual average of clothing wools received Irom all American 
 countries south of the United States for the five years ending June 30, 
 1888, was 5,307,586 pounds. The annexed table shows the quantities of 
 wool imported from Mexico, the Dutch AVest Indies, and countries of 
 South America for the nine years ending June 30, 1888 : 
 
 Wool imports hy countries. 
 
 Tears. 
 
 Argentine 
 Republic. 
 
 Braz.il. 
 
 Chili. 
 
 Mexico. 
 
 Peru. 
 
 Dutch 
 W.I. 
 
 Uruguay. 
 
 Vene- 
 zuela. 
 
 1880 
 
 Pounda. 
 
 12, 278, 776 
 
 6, 163, 223 
 
 9,821,234 
 
 8,691.873 
 
 ( *37, 693 
 
 \ 5,279.290 
 
 C *371, 6J6 
 
 ) 9,851,121 
 
 ( *1, 653, 288 
 
 I 10, 450, 556 
 
 ( *58, 682 
 
 \ 6,228,300 
 
 c 
 
 Pounds. 
 
 839, 424 
 
 668, 163 
 
 493, .505 
 
 1, 269, 159 
 
 *34I,8C8 
 185, 058 
 
 Pounds. 
 3,329,156 
 1,852,721 
 2, 534, 219 
 1, 099, 200 
 
 *77, 949 
 1, 036, 706 
 
 *3(;, 096 
 
 1, 704, 509 
 * 170, 917 
 
 1,775,188 
 '520, 0.-)9 
 
 2,008,617 
 '120, 880 
 
 2, Oil, 877 
 
 Pounds. 
 
 1,321,874 
 
 1, 009, 376 
 
 191, 666 
 
 Pounds. 
 
 Pounds. 
 
 Potinds. 
 
 9, 577, 309 
 
 4,823,-502 
 
 6, 894, 885 
 
 5,920.713 
 
 *1, 638, 108 
 
 961, 193 
 
 *2, 123, 040 
 
 1, 388, 405 
 
 *12, 362, 329 
 
 592, 958 
 
 *2, 585, 292 
 
 306,189 
 
 *2, 595, 419 
 
 826, 076 
 
 Pounds. 
 202 056 
 
 1881 
 
 
 35, 339 
 
 17 339 
 
 1882 
 
 183, 896 
 
 8 068 
 
 1883 
 
 22, 600 
 
 8 100 
 
 
 
 
 
 1884.- 
 
 438, 223 
 
 4,094 
 
 
 8,917 
 
 1885 
 
 890, 760 
 ♦1, 050, 476 
 508, 650 
 *23,5, 028 
 371, 034 
 271,072 
 427, 155 
 
 1, 561, 026 
 *130, 930 
 
 2, 247, 724 
 *431, 520 
 
 1, 417, 197 
 
 * 12, 589 
 
 69, 767 
 
 
 20, 201 
 
 14. 386 
 
 
 *510 
 150, 1:j8 
 
 1886 
 
 12, 052 
 
 13,156 
 
 1887 
 
 16, 645 
 
 16,645 
 
 15, 070 
 
 1888 
 
 \ 11, 000, 584 
 
 1,633 
 
 22, 928 
 
 1,445 
 
 * Clothing wools. 
 
 AMOUNT OF CARPET WOOL IMPORTED BY THE UNITED STATES. 
 
 It will be seen by comparing the tables showing quantities and values 
 of wool entered for consumption with that above given that only about 
 one-fifth of the carpet wools annually imported into the United States 
 came from American countries. About 80,000,000 pounds of carpet 
 wools are now annually imported into the United States, and of this 
 not more than 15,000,000 pounds come from American countries. 
 France receives from the Argentine Republic twenty times ami Ger- 
 many ten times the quantity that is received by the United States. 
 Thus, in 1888, the United States received wool from that Kepublic 
 valued at $1,178,000, while France in 1880 received over $20,000,000, 
 and Germany $10,677,394. Uruguay, Chili, and Peru also export more 
 wool to Europe than to the United States. This condition of affairs 
 would be changed were there direct and frequent steam communication 
 between the North and South American continents, by which the manu- 
 factured products of the former could be exchanged for the wool and 
 other raw materials of the latter. 
 
 WOOL IMPORTS IN 1888. 
 
 To show the quantities and values of carpet and clothing wools im- 
 ported from the various countries of the world^ the following table is
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 307 
 
 introduced <^liicli exhibits the imports from thccountries named fortha 
 fiscal year ending- June 30, 1888 : 
 
 Countries. 
 
 Argentine 
 
 Brazil 
 
 Chili 
 
 Mexico 
 
 Peru 
 
 Dutch West Indies . 
 
 V ruguay 
 
 Vont3iiuela 
 
 China 
 
 Frauce 
 
 Germany 
 
 Englaud . 
 
 Scotland ... 
 
 British East Indies , 
 Australia 
 
 Italy 
 
 Ja]>an 
 
 Netherlands 
 Rouniania . .. 
 
 Kussia 
 
 Turkey 
 
 All others ... 
 
 Carpet wool. 
 
 Quantity. Value 
 
 Pounds. 
 
 11, 000, .58 1 
 
 427, ir)5 
 
 2,011,877 
 
 69, 767 
 
 1,633 
 
 22, 928 
 
 826, 076 
 
 1,445 
 
 14,361,46.1 
 
 Total 84,879,546 
 
 Dollars, 
 
 1, 178, 003 
 
 38, 323 
 
 217, 987 
 
 5,084 
 
 198 
 
 1,282 
 
 76, 658 
 
 76 
 
 1, 518, 208 
 
 38.5, 351 
 
 i7, 380 
 
 37, 716 
 
 646, 696 
 
 319, 625 
 
 42, 358 
 
 180 
 
 6,439 
 
 1, 565 
 
 11, 529 
 
 5,248 
 
 894, 072 
 
 080, 165 
 
 547, 086 
 
 10,015,410 
 
 Clothing wool. 
 
 Quantity. Value, 
 
 Pounds. 
 
 271, 072 
 
 120, 880 
 
 12, 589 
 
 2, 595, 419 
 
 2, 999. 960 
 
 84,577 
 
 295, 044 
 
 7, 292 
 
 11,345,879 
 
 6, 133, 191 
 
 Dollars. 
 
 26, 678 
 12, 068 
 1,406 
 
 309, 045 
 
 349, 197 
 
 9,785 
 
 53, 561 
 
 4,170 
 
 2, 574, 067 
 
 1, 172, 879 
 
 During the year 1888 there was withdrawn for consumption and duties 
 paid upon the several grades of imi)orted wools, as follows : 
 
 Articles. 
 
 Quantity. 
 
 Duties. 
 
 
 Pounds. 
 16,952,513 
 
 5, 568, 0G8 
 74,710,696 
 
 Dollars. 
 
 1, 789, 347 
 562, 198 
 
 2, 377, 941 
 
 
 
 
 
 Total 
 
 97, 231, 277 
 
 4, 729, 486 
 
 
 The domestic production for the year was 269,000,000 pounds, of which 
 less than 23,000 pounds were exported. The quantity of wool, there- 
 fore, which may be said to have been consumed in the United States 
 the year named w.is, in round numbers, 343,000,000 pounds. 
 
 WOOL CROP OF THE UNITED STATES. 
 
 In respect to the kinds of wool grown in the United States, Mr. J. R. 
 Dodge, Statistician of the Department of Agriculture, writes as fol- 
 lows: 
 
 The first of the three classes is clothing wool. This is the fleece of full-blood and 
 grade Merino, of fine, short fiber, remarkable for its felting quality. These wools are 
 prepared for raannfacture by carding rather than combing. The highest type of this 
 race, the registered thoroughbred, is found in Vermont, where breeding flocks are 
 more numerous than elsewhere, and in considerable numbers in weatero New York, 
 Ohio, and Michigan, and scattered through the Western States.
 
 306 TRADH AND TRANSPORTATION BETWEEN 
 
 The Merino type of wools prevails almost exclusively in the tLree States named, in 
 Texas, ami tbroii<;bout the Kocky Mountain and Pacific coast areas. Few sheep of 
 other blood are found west of the Missouri River. 
 
 Western Pennsylvania and West Virginia furnish wool of the Merino type mainly. 
 The sea-board States of New England also furnish some grade wools of this type. 
 
 The second class, the combing wool of the tariff classification, includes the medium 
 and long wools of the English breeds, tlio Cotswold, Leicester, Lincoln, several fami- 
 lies of Downs, and other breeds of long and coarse wool, also popularly known as the 
 mutton breeds. These are few in number compared with the Meriuo type. Nearly all 
 the sheep of the South, exclusive of Texas, are of this class, mostly descendants of 
 the less improved English sheep of a hundred years ago, with occasional infusions of 
 better blood from England, Canada, or the Northern States. In Kentucky probably 
 99 per cent, are of the combing- wool class. A considerable portion, too, are highly 
 improved, giving to this State the reputation of having a larger proportion of high- 
 quality mutton than any other State. 
 
 In the vicinity of the Atlantic cities, from Maine to Virginia, sheep husbandry is 
 principally lamb production, the males being Eowns or other English breeds, and the 
 ewes grades of both the Merino and the English types. This combination produces 
 a mixed wool of a useful character. Then there are considerable numbers of the 
 English breeds, though fewer than the Merino, scattered through the Western States, 
 from Ohio to Kansas, and a still smaller proiJortiou on the Pacific coast and in the 
 Territories. 
 
 As to the third class, the carpet wools, they are represented in the United States 
 only by the Mexican sheep, which are the foundation of a large proportion of the 
 ranch flocks, but so improved by repeated crosses as to furnish wool of the Meriuo 
 type, much of it of high grade. 
 
 EFFECT OF A REMOVAL OF THE DUTY ON CARPET WOOLS. 
 
 While it is a disputed question wbetlier the removal of the duty of 
 2.J cents per pound on carpet wools imported into the United States 
 would interfere with the growth of domestic wools, it is generally in- 
 sisted by American manufacturers of carpets that additional quantities 
 of this class of wool are necessary to the healthy development of the 
 carpet trade of the United States, and the maintenance of low prices 
 for all grades of carpets, and particularly of the cheaper qualities. The 
 carpet wools are not produced in any considerable quantities in the 
 United States, and this production will grow steadily less as the breed 
 of sheep is improved. The i^roduction of these coarse wools is now 
 mainly confined in the United States to Colorado, New Mexico, and 
 Texas, and does not exceed 50,000,000 pounds per annum. It is doubtful 
 if the removal of the duty would materially allect the price of carpets. 
 Assuming that a pound of wool is consumed in the manufacture of one 
 yard of carpet, and allowing for waste, the duty adds, say, 3| cents to 
 each yard of carpet. The remission, therefore, would not be likely to 
 affect the price to the consumer more than prices are naturally affected 
 by the variations incidental to the operations of supply and demand. 
 
 COARSE WOOL AND THE CARPET TRADE. 
 
 It would seem, in view of the rapid growth of the carpet trade, and 
 the fact that the manufacturers of the United States must look to for- 
 eign countries for coarse wool, that the assurance of a steady and ample
 
 THE UNITED STATES AND LATIN AMERICA. 309 
 
 snpply of niJ¥torial at a fair price is uiore important than a reduction 
 or abolition of tlie present rate of duty. The coarse wools of South 
 America being needed in the United States, methods should be devised 
 by which the bulk of them might be brought here instead of being sent 
 to Europe. It would be undoubtedly to the advantage of both Ameri- 
 can continents if the United States could so manage as to purchase 
 70,000,000 pounds per annum from South America instead of from Eu- 
 ropean and Asiatic countries, as is now the case. Why should the 
 United States purchase from England annually 26,000,000 pounds of 
 carpet wool, the growth of Australia and other countries beyond the 
 seas, and only about 15,000,000 pounds from all the neighboring coun- 
 tries of America? From Russia we purchase 16,000,000 jiounds ; Turkey, 
 11,000,000 pounds, and France, 9,000,000 pounds, and yet we buy less 
 than 10,000,000 pounds from the Argentine Republic, the largest pro- 
 ducer of this class of wool among the South American countries, and 
 next to Australia the largest producer in the world. 
 
 The introduction of manufactured products of the United States into 
 South American countries would require an increase of facilities for 
 direct and rapid transportation, and this would insure outgoing vessels 
 return cargoes of wool and other raw products of those countries which 
 now go to Europe in exchange for manufactured articles, many of which 
 are far inferior to similar articles that could be exported from the United 
 States, with equal advantage to the consumer as to price. 
 
 VALUE OF SOUTH AMERICAN MARKETS. 
 
 In a communication to the New York Tribune of September 23, dis- 
 cussing the South American trade and the importance of the conven- 
 tion to be held in October at Washington, Mr. Francis Wayland Glen 
 said of the establishment of steam communication between the Ameri- 
 can continents : 
 
 Direct, frequent, rapid, regular, and permanent access to South American ports ia 
 tlie first requisite to obtaining our legitimate sliare of tlie large foreign trade of those 
 countries. That once secured, we can repeat, on a very much larger scale, what we 
 have done in Canada, and obtain the lion's share of their trade. Without it treaties 
 of reciprocity will not bear much fruit. To secure proper communication between 
 our leading sea-ports and those of South America our Government must take the ini- 
 tiative. We must grant liberal subsidies for a considerable period of years to induce 
 capitalists to construct and run between these ports steamers of a high class. It 
 should not be any half-way measure, but so liberal as to secure prompt acceptance 
 from responsible persons or companies. It should be done at once so as to induce a 
 largo number of South Americans to visit our Exposition in 1892, and study our 
 markets. The Congress soon to assemble here will tend to interest the people of 
 South America in our productions, but we shall fail in reaping the full benefit With- 
 out direct, rapid, frequent, and regular communication, upon such a financial basis 
 as will create confidence in both countries in its permanency. 
 
 We are on the verge of reaping enormous advantages from our protective policy ; 
 we have laid the foundation for a mighty manufacturing industry. Its growth, de- 
 velopment, and beneficent results in the near future will confound the wisdom ot 
 those who denounce our fiscal policy. By retaining our home markets for our own
 
 310 TRADE AND TRANSPORTATION BETWEEN 
 
 prodncers we have encouraged the construction of manufactories on so large a scale 
 as to secure a thorough division of lahor, resulting in a low cost of production and a 
 high grade of workmanship. By increasing the productiveness of labor we have se- 
 cured to the skilled artisan a higher average rate of wages than is paid in any other 
 country in the world. By shutting out foreign competition we have secured the 
 erection of many large manufactories in every class, and so have protected the con- 
 Bumer hy active competition among home producers. 
 
 * • » * • • * 
 
 We have about mastered our home market. We are now ready to enter foreign 
 markets. Let us begin with South America; give our manufacturers direct, rapid, 
 frequent, regular, and permanent access to foreign markets, and we shall benefit our 
 artisans by increasing the demand for labor. We shall benefit our consumers by less- 
 ening the cost of production. We shall benefit our shipping interests by increasing 
 our foreign trade. The value of the South American trade now and throughout the 
 long future can hardly be overestimated. 
 
 COARSE WOOL NOT GROWN IN THE UNITED STATES. 
 
 In an article on "The Development of Wool Manufactures," written 
 by Mr. George William Bond, of Boston, and published by the Treasury 
 Department in 1887 as part of a special report on wool and manufact- 
 ures of wool, he says. In reply to the question whether any wool is im- 
 ported which we can not produce in this country: 
 
 There are none of the third-class wools that can be grown in this country to ad- 
 vantage. Most of them are from races adapted to entirely different climate and cir- 
 cumstances, whose yield of wool is so small that it would not pay for half their keep- 
 ing. We could, I think, grow much more of the second-class wool than we do, because 
 such wool is secondary in value, as the sheep could be raised profitably for mutton. 
 This first-class mutton, if abundantly grown, would soon be appreciated and find a 
 well-paying market at home and abroad. 
 
 It is more difficult to explain, so as to be readily understood, why we can not pro- 
 duce .any particular grades of first-class wools. AVo may grow wool in some places 
 equally fine and apparently as good in other respects as wools that are imported, but 
 they may not have the same working qualities. They will not produce the same 
 ellect when finished. Such is the influence of climate and soil upon wool that no two 
 places can grow wool exactly alike. The descendants of the same flock raised in 
 Vermont and Ohio, or even in Vermont and New Hampshire, will not yield the 
 Bame wool. 
 
 In the special report made on wool and manufactures of wool in 1887, 
 by tlie Treasury Department, are found many interesting facts in rela- 
 tion to the origin and development of sheep husbandry on the Ameri- 
 can continents. From that report the following paragraphs are taken : 
 
 The countries that yield the largest surplus of wool for export are Russia, the Ar- 
 gentine Republic, South Africa, and Australasia. Their capacity for supplying the 
 manufactures of tlio world seems to bo ample. They have all improved their sheep 
 by crossing with the merinos, and their wools, especially those of Australia and the 
 Platte country, are among the finest in the world. These two last-named countries .are 
 much alike in their peculiar fitness for sheep-raising, and are as yet not taxed to any- 
 thing like their capacity. Australia .alone is as largo in .area as the United States. 
 
 lu Australia the plains devoted to sheep-raising are in the hands of comparatively 
 a few, who have perjietual leases of immense tracts of Government lands at low 
 r.ates. Some of these tracts contain as much as 100,000 acres, so that the country 
 bids fair to continue to bo a sheep-raising section.
 
 THE UNITED STATES AND LATIN AMERICA. 311 
 
 It is idle to talk about raising sbcep in Europe or this country to compete with 
 South Africa, the Platte country, or Australasia. Oursheep-larming must eventually 
 be confined to small flocks of improved breeds, raised on farms where they require 
 little or no extra labor. It has already come to this in Europe, and in the Eastern 
 and Middle States, where lands are valuable, and will finally prevail in the West, as 
 the largo ranches are divided up and settled. 
 
 The conditions are entirely different in South Africa, Australia, and South America, 
 where laborers are, at best, semi-barbarians or peons, and the immense plains of cheap 
 lands and torrid climaie seem better adapted to sheep-raising' than other industries.
 
 312 TRADE AND THANSPORTATION BETWEEN 
 
 IV. 
 
 CREDIT SYSTEMS IN SPANISH AMERICA. 
 
 By John M. Carson, late Chrk Committee on Wai/sand Means, House of Representatives. 
 
 A sound system of credit is not only necessary to a bealthful progress 
 of business but stimulates existing and leads to the establish ment of 
 new enterprises. Money is the medium to facilitate and effect ex- 
 changes, but even were there sufficient money to transact the business 
 of the world credit would still be a necessity. If credit be necessary 
 to transact business between individuals of the same country it is a 
 greater necessity to transact business between individuals residing in 
 different countries and at remote distances, and the duration of the 
 credit depends largely upon the distance that exists between the seller 
 in one country aiul the purchaser in another. A system of credit, so 
 essential to the siitisfactory and healthful conduct of business in the 
 older countries, with large population, thorough develoi)ment, abun- 
 dant capital, and means of rapid communication, is absolutely necessary 
 in a new country without tliese advantages and auxiliaries. 
 
 A REQUIREMENT OF THE TRADE. 
 
 At this time the manufacturers and merchants of the United States 
 ar<? looking to South America for nmrkets in which to dispose of their 
 sur])lus ])roducts. One of the most apparent obstacles that present* 
 itself is not that the business men of South America recpiire credit, but 
 that the duration of the credit rcquiriHl is beyond that usually extended 
 to i)urchasers in the United States. While it is true that longer credits 
 are re(piired in South America than are required and grant<Ml in com- 
 mercial transactions between business nu^n of Ihe United States, it 
 should not be forgotten that certain conditions attach to trade with 
 South America that make long credits a necessity. 
 
 The merchant in the United States who purchases from the home 
 manufacturer, or even imports from Europe, on thirty or ninety days' 
 credit, as a rule disjioses of his goods in whole or in part and receives
 
 THE UNITED STATES AND LATIN AMERICA. 313 
 
 payment for them before tlie expiration of the usual credit period and 
 in time to discharge his obligation to those from whom he purchased. 
 In the case of the South American merchant, however, ninety days, and 
 sometimes a longer period, must elapse before he even obtains the mer- 
 chandise, so that the ordinary credit which i)revail8 in the United 
 States is of no service whatever to him. 
 
 SYSTEMS OF CREDIT IN EUROPE. 
 
 From many years of experience the manufacturers of Europe have 
 become thoroughly acquainted not only with the markets and people ot 
 Central and South America, but with the personal integrity and com- 
 mercial standing of the merchants of those countries, and their methods 
 of doing business. Similar knowledge on the part of the manufact- 
 urers and merchants of the United States would result in a rapid ex- 
 tension of trade between the American continents. The fact that 
 Europeans are striving so hard to prevent the entrance of United States 
 manufactured products, and are laboring so incessantly to extend their 
 trade with Spanish America, is a certain indication of good profits and 
 evidence of the great value of the trade with Spanish American coun- 
 tries. The extension of the same credit to Central and South America, 
 on the part of United States merchants, that is now extended by those 
 of Europe is a condition-precedent to the successful development of 
 trade between those countries and the United States. 
 
 STEAM-SniP FACILITIES NECESSARY. 
 
 More rapid and certain communication by steam ships than now exists 
 would do much to shorten credit, but until this can be secured United 
 States merchants should recognize the prevailing methods of conduct- 
 ing business by those of Spanish America, and be prepared to extend 
 the same facilities as Europeans if they would secure a firm footing in 
 the markets of those countries. The merchants of Europe do not pre- 
 tend to do business with Spanish America upon the same lines that are 
 followed in dealing with their own people or with those of the United 
 States. They not only adapt themselves to the methods that obtain, 
 but carefully study the wants and desires of the peo^ile, consult their 
 tastes, and flatter their prejudices. 
 
 In short, they manufacture goods specially for South American mar- 
 kets, and conduct the business according to South American methods. 
 In this they have the active assistance of bankers who devote special 
 attention to South American trade. For instance, a merchant in Eng- 
 land receives orders from one or more South American merchants ag- 
 gregating a large sum. 
 
 HOW IT IS DONE IN ENGLAND. 
 
 The English merchant presents these orders to his bank, to whom as 
 a rule the financial standing and business integrity of most of the
 
 314 TRADE AND TRANSPORTATION BETWEEN 
 
 Sontli American importers are known, and arranges for the bank to 
 carry tlie credit, the bank obtaining, in addition to the interest paid by 
 tbe debtor-merchants in Soutli America, a percentage of the profits of 
 the English merchant derived from the sale of the merchandise. In 
 this way the bank receives a profitable retnrn upon its loan, the trade 
 of England is promoted, and the South American merchants obtain a 
 credit which is at once a business convenience and an addition to their 
 capital. 
 
 J\roney in the United States is plentiful, and is eagerly seeking safe 
 and profitable investment. The commercial honor of the leading mer- 
 chant importers of Spanish America is unquestionable. They are not 
 only willing, but desirous of trading with the United States, and are 
 prevented from so doing solely because the conditions repel them. If 
 the manufacturers of the United States will manufacture the goods and 
 wares required by the peoj)le of Spanish America; if the merchants of 
 the United States will pack them in such shapes and forms as are 
 necessary to insure easy transportation into the interior of the country, 
 and will extend the measure of credit essential to the successful con- 
 duct of business in Central and South America, the markets of those 
 countries will be opened to them and a large volume of commerce will 
 soon be passing between North and South America. 
 
 THE THREE ESSENTIALS FOR INCREASED TRADE. 
 
 The three essentials to the establishment and successful maintenance 
 of commerce between the two American continents are goods manu- 
 factured specially for Spanish-American countries, rapid and regular 
 steam-ship lines, and the establishment of a credit system to meet the 
 necessities of those new and enterprising countries. 
 
 In connection with this general subject, Hon. E. L. Baker, United 
 States Consul at Buenos Ayres, wrote an able and comprehensive paper 
 to the State Department. In this communication Mr. Baker described 
 the Argentine Kepublic, but very much of what he wrote is applicable 
 to Spanish-American countries generally. 
 
 The Argentine Republic [Haid Mr. Baker] is young in years and greatly wanting in 
 active capital. With untold flocks and herds feeding on spontaneous pasturage to 
 the very confines of Patagonia, the product of which must find a market .abroad; 
 with a soil unsurpassed for agricultural purposes, which yet awaits the plow of tho 
 husbandman; with vast mineral resources in the interior provinces, which can not 
 be reached without expensive machinery; with growing industries of sugar, wine, 
 coffee, silk, etc., all requiring tho expenditure of capital, .and with a sparse popula- 
 tion possessing but little wcaltli, scattered over an immense extent of territory, it is 
 impossible in this country to move forward in any department of trade, labor, or 
 industry without llie intervention of credit. Without the stimulus thus received, 
 its political advancement and national doveloi>meut would be difficult, if not, indeed, 
 almost hopeless. 
 
 Several years ago the Department of State sent out inquiries to the 
 American ministers and consuls touching the credit and trade systems
 
 THE unitp:d states A\i> i;Aii;; a.mkumca. 315 
 
 prevailing in the various countries of the world. From the replies 
 received to those inquiries the following condensation of the credit sys- 
 tem in Spanish America is made: 
 
 MEXICO. 
 
 Nearly all the great mercantile houses in Mexico City and State sell 
 largely on credits of froui four, six, to eight months, and often for longer 
 periods, and even the small dealers, venders of trilles, and hucksters in 
 articles of common use and every-day necessity, whose business is usually 
 supposed to require ready money, are here more facile in regard to 
 credits than in most other commercial communities. It is estimated 
 that the business of the country is about equally divided between cash 
 and credit. 
 
 Bankruptcy is very rare. It is policy of the merchants to give to a 
 debtor an extension of time, when asked for and the request be justi- 
 fied, and not to push him to bankruptcy, as in the latter case, the tri- 
 bunals intervening and causing heavy expenseSj utter ruin and loss are 
 sure. 
 
 YUCATAN. 
 
 Yucatan is preeminently a credit country, cash transactions being 
 extremely rare. This statement ai^plies to all business, great or small, 
 almost without exception. In all and every condition of life, in all and 
 every business, the credit system is rampant ; it has always been so ; 
 it seems as though it always would be so. As a rule, interest is not 
 demanded on time accounts. Goods are sold for a certain price, which 
 may, at option, be paid " cash down," or in a few monthly installments, 
 or at the expiration of a short, fixed period, without interest. The num- 
 ber of monthly installments and the duration of the last-mentioned 
 period naturally vary with the amount of goods sold and the amount of 
 confidence the seller has in the purchaser. Should monthly payment 
 not be promptly made, interest is then usually charged at a rate stipu- 
 lated in the document drawn up at time of sale. 
 
 COSTA RICA. 
 
 Between dealers and importers the credit system extends to about 
 one-half the volume of business. Cash buyers have an advantage of 
 from 5 to 10 per cent. 
 
 HONDURAS. 
 
 Credit always stimulates commercial transactions, and for this reason 
 the merchants of this llei^ublic provide themselves from Europe mostly, 
 where they receive a credit from six to twelve months, and only buy 
 from the United States those articles which bear very high prices in 
 Europe, as flour, grain, and a few other kinds of merchandise. The 
 extent of credit is equal to about two-thirds of the commercial business.
 
 316 TRADE AND TRANSPOUTATION RETWEEN 
 
 In a recent letter to the State Department Consul Herring furnishes 
 from Tegucijialpa some interesting facts bearing upon the commercial 
 methods of Central America. 
 
 In llonduras, as in most places in Central America, a lonjj timo must necessarily 
 iutervetie between the sending of an order for p;oods and their receipt. If they arrrive 
 at the port in tlic wet season, they are likely to lie there for weeks, perhaps even 
 Diontlis, before nmlcs can be obtained to carry them to the merchants in the interior, 
 es})ecialiy if the packages are of bulky, heavy, or inconvenient shape. Instances 
 have occurred where conHignnicnts of goods of awkward shape have lain in Ama- 
 pala more than a year awaiting trausjiortation. Six months may probably elapse 
 between the mailing of an order for goods from New York and their receipt, say at 
 Jnf icalpa, for instance. These facts servo to sliow why mercliants here and inother 
 portions of Central America require long credits. These credits they get from En- 
 glish, German, and French houses; but they find American houses less willing to 
 give equally favorable terms. If a merchant here fails to remit a payment when 
 due, it may require three or four months of correspondence for the foreign house 
 to ascertain the reason. It may be on account of some delay, missendiug, miscar- 
 rying, or unknawn stoppage in transit of the natural products of this country, 
 which are often sent in exchange for foreign goods. C(mseqnently the interchange 
 of business or commodities is necessarily very slow. Resort to the courts for com- 
 mercial settlements is rare, and bankruptcies seldom occur. Some English houses 
 charge 5 per cent, per annum interest on accounts until they mature, and then, with- 
 out further notice to or from the custonior, extend the credit three months and charge 
 interest for that three months at the rate of 7i per cent, per annum, and very often 
 extend the credit a year. Merchants here object to the insui-ance in the United 
 States as being higher than in Europe, with no corresponding greater risk; in fact, 
 less risk, thetlistaace and time being shorter. 
 
 Several years ago Minister Logan furnished valuable information on 
 the business methods of Central America. What he said about Central 
 America in this particular applies with more or less accuracy to other 
 Spanish- American countries. Minister Logan said: 
 
 The coffee of Central America, its great staple, is largely sold in European markets; 
 hence the credits of the sePers are mostly in those countries. This being the case, it 
 results almost as an unavoidable conserpience that the purchases of the nuirchants are 
 made there of all articles which do not by reason of vastly superior quality or lower 
 price compel a ])urchase elsewhere. The circumstance named is so powerful in its 
 effects, however, as to overcome all ordinary advantages in other directions. Let me 
 illustrate the point by citing the case of Ciiili. The great exi)orts of that country 
 are copper, silver, and wheat. Thirty years ago the United States bought largely of 
 these articles; and during the early settlement of California, Chili exclusively sup- 
 plied the flour consumed by the pioneer population of our far off Pacific coast. Then 
 the credits of Chili were in onr country, and the logical consequence was that we 
 enjoyed a large trade with that republic, her imports being almost exclusively from 
 the United States. The development of the copi)er of the Lake Superior region sup- 
 plied our own demands for that article, the enormous yield of our silver districts 
 closed the market in that direction, while our wheat production has become one of 
 the chief reliances of those countries compelled to look to other nations for their 
 supply of that staple, 
 
 COLOMBIA. 
 
 English merchants have the principal trade of Colombia, which they 
 stimulate by giving credits from six to nine montlis, charging only 5 
 and G per cent, interest and 3 per cent, commissions. Gash buyera
 
 THE UNITED STATES AND LATIN AMERICA. 317 
 
 hav« ail advantage of from 5 to 10 per cent., though no interest is 
 charged on time accounts. 
 
 VENEZUELA. 
 
 The bulk of all sales are made on a credit of from four to twelve 
 months. Cash sales are very few. Although interest is not demanded 
 on time accounts, cash buyers have great advantages over those that 
 buy on credit. Merchants allow 12^ l^ev cent, discount from time prices. 
 All imported goods are sold on time. 
 
 BRAZIL. 
 
 At least three-fourths of the volume of business will be on credit. 
 With a capital of $20,000 it is usual to be owing about $100,000, or in 
 that proportion. As a rule the people buy on credit. In retail trade 
 those who pay cash buy at cheaper rates than those who are known to 
 ask credit. In wholesale trade the cash buyer gains a very consider- 
 able advantage. In the dry- goods trade, for example, a credit of twelve 
 months is granted; but if the purchaser pays cash he will get 12 to 14 
 per cent, discount. Wine and olive oil are sold at ten mouths' credit, 
 or 10 per cent, discount for cash; beer at eight months' credit, or 7 i)er 
 cent, discount for cash ; and the same in respect to provisions. 
 
 Interest is demanded and obtained by the importer on overdue ac- 
 counts, say at the rate of 9 or 10 per cent., or 1 per cent, above the rate 
 of the banks. Wholesale dealers who sell to the interior'often try to 
 get interest, but seldom succeed, and are only too glad to get paid with- 
 out interest. A retail dealer would be likely to charge interest after 
 six months. 
 
 Generally all products of the country are sold for cash or oji three 
 months' credit. Coft'ee, the leading product, is a cash article. Fresh 
 meat, fresh fish, and mechanical work command cash. In imports, salt, 
 lumber, petroleum, copper, lead, and codfish are cash articles. Sixty 
 days' credit is sometimes given for iron, otherwise it brings cash. Flour 
 is sold at six months' credit, or cash at 6 per cent, discount. All goods 
 except those manufactured are sold on acceptances in case of credit. 
 The banks advance money on signed accounts, but do not discount 
 them. There appears to be a tendency to increase the list of cash 
 articles. 
 
 URUGUAY. 
 
 • In Montevideo credit is the one and indispensable element of trade, 
 which may be said to be almost exclusively carried on by the capital of 
 foreigners. The local dealers will only buy at five and six months' credit, 
 and very seldom redeem their promissories by cash discount. The cause 
 and origin of such long credit may be explained by the long time re- 
 quired for the goods bought in this city to reach the centers of distribu- 
 tion in the camps or country towns, and the long time the country dealer 
 has to wait ere he can dispose of them and obtain returns, and these re- 
 turns by barter as frequently as by cash.
 
 318 TRADE AND TRANSPORTATION BETWEEN 
 
 About one-half of the commercial biisiuess of tlie coautry is done on 
 credit. Native products usually command cash. No inhjrest is charged 
 on time accounts, but interest is charged at from 6 to 9 per cent, if the 
 credit is exceeded. Tbe banks discount the promissory notes of the 
 dealers and collect them when due; and any inability or hesitancy to 
 pay on the part of the purchaser or dealer who signs it would severely 
 wound him in credit and reputation. 
 
 ARGENTINE REPUBLIC. 
 
 As a rule, business is conducted on credit; about seven-eighths of the 
 volume of wholesale and retail business is thus transacted. Cash buy- 
 ers have a reduction in prices equivalent to 12 per cent, per annum. 
 In tbe grocery and comestible trade the credit is four months, with 4 
 l)cr cent, discount for cash. In the dry-goods trade the credit is five 
 months from the end of the month, with 5 per cent, discount lor cash 
 payments. If a merchant, however, demands cash, he will have to 
 allow even more, or be cut off from many buyers. 
 
 Interest on time accounts is often demanded but seldom paid. Most 
 invoices have printed on them that at the expiration of a certain time 
 interest will be charged, but in the great majority of cases it is not en- 
 forced. If legal proceedings are taken for the recovery of an account, 
 only 7 per cent, per annum from the date of the action is recoverable; 
 but as the costs of the suit (left to the discretion of the judge) are in- 
 variably more than the interest claimed, the attempt to collect interest 
 by law is seldom made. A merchant, in explanation of the fact that 
 interest is not paid on time accounts, says that " as a general rule the 
 price of the articles sold is fixed on a basis of five to six months' credit, 
 and of course the interest is included in the price itself." In the retail 
 trade no interest is ever demanded. 
 
 Articles of export are alone sold for cash. Articles manufactured in 
 the country are comparatively lew, and, as they enter into competition 
 with the imported article of the same kind, of course they are subject 
 to the same regulations in regard to credit. American manufacturers 
 have, in manj' cases, declined to make sales to the merchants of this 
 country unless the price was de[)0sited before the shipment, while others 
 demand to draw against the goods, payable on arrival of cargo; but the 
 system of credits in European countries is so liberal and so universal 
 that the United States, except in special cases, receives orders only for 
 what can not be procured elsewhere. 
 
 PERU. 
 
 Merchants buy on three and six months' credit. Tradesmen give no 
 credit beyond thirty days. Beyond that period interest is charged at 
 the rate of 1 per cent, a mouth.
 
 THE UNITED STATES AND LATIN AMERICA. 319 
 
 GUBA. 
 
 The bulk of the busiuess is couducted on credit. The exporter of 
 sugars and molasses, whose busiuess reaches a volume during the j'ear 
 of many millions of dollars, .may have a capital of from $25,000 to 
 $50,000, but he relies on credits generously granted him by bankers of 
 the United States and Europe. 
 
 The wholesale provision dealer purchases his sui^plies at three, four, 
 six, and sometimes eight months' time. He in turn sells to the planter 
 on credit, formerly on twelve months' time, but now rarely more than 
 one to three months are granted. The planter, it is true, sells his prod- 
 uce for cash, but as his crop is mortgaged, practically the proceeds 
 pass into the hands of the factors immediately. If credits were all with- 
 drawn it would be Impossible to carry on any trade in the island. The 
 only trade based wholly on cash is the retail grocery trade. 
 
 The basis on which all trade rests is the credit system. It is a long 
 chain which extends from the producer abroad or at home through num- 
 berless middlemen, link by link, to the consumer, who is perhaps the 
 only one who can or is expected to pay cash for what he buys, and even 
 n his case it is usual only when he is a retail purchaser. 
 
 Cash buyers have some advantages in prices which are usually equal 
 to the iuterest for the time a credit is granted. Interest is not usually 
 demanded on time accounts. Liquidations are usually made on May 1. 
 The account will embrace purchases made during the previous twelve 
 months. Although cash payment on May 1 is desired and asked for, it 
 is rarely made. Instead of this, the planter giv^es the dealer one or 
 more notes, payable in February, March, or April following, with in- 
 terest (usually 12 per cent.) added. 
 
 PORTO RICO. 
 
 At least 75 per cent, of the business is done on credit. Cash buyers 
 always purchase at least 5 per cent, cheaper than those who purchase 
 on credit. Interest is seldom collected. 
 
 HAYTI. 
 
 Credit is essential to the existence of trade. The system of credit is so 
 deeply rooted in this community that merchants sell to retailers princi- 
 pally on credit, and these in turn sell to most of their customers on similar 
 terms, and this credit system is restricted by neither law nor regulations. 
 It may be said that 75 per cent, of the total amount of merchandise dis- 
 posed of is done on credit.
 
 IlIO TKALI: AM) TlvANyroK'J'ATION i;i/J\VEEN 
 
 V. 
 
 COINAGE AND THE PRECIOUS METALS. 
 
 By John M. Carson, Late Clerk Committee on Ways and Means, House of Eepresenta' 
 
 tives. 
 
 The standard coins of the American continents are as nuruorons as the 
 countries which are embraced, and each country has its own standard 
 of weight and fineness. With a i^eople having no commerce with neigh- 
 boring nations, it matters little what may be the form and value of its 
 currency, but in proportion with the extension of a nation's commerce 
 will its people suffer loss and inconvenience through a currency estab- 
 lished to meet local exigencies or to serve local convenience. Tliis mul- 
 tiform metallic currency of the American countries is not only a hin- 
 drance to commerce, but entails loss to consumers of merchandise and 
 inconvenience to merchants by reason of the necessity for computations 
 and the employment of agents and brokers to make the exchanges. 
 
 A coinage system of uniform value and designation would be a great 
 help to the commerce of the world and a large saving to the people. 
 Such a system is not impracticable and may be adopted before many 
 years. But there is no reason why a uniform system of values and des- 
 ignations should not be at once adopted for use among the nations of 
 America. The necessities of commerce, which is being rapidly devel- 
 oi)ed between American countries, and the convenience of the ])eo])le, 
 who are becoming more intimate, alike require the removal of the dif- 
 ferences existing between the monetary units of their respective coun- 
 tries. This varied currency is one of the greatest barriers to the promo- 
 tion of commerce between the North and South American continents. 
 With a monetary unit common to American countries, and the es- 
 tablishment of more frequent and rapid communication between them, 
 the services of brokers and money-cliangers would be no longer required 
 by merchants, and the postal money-order system would become as ac- 
 cessible to the people of North and South America as it now is to those 
 of the United States and the United Kingdom.
 
 THE UNITP:1) states and latin AMERICA. 321 
 
 AN INTERNATIONAL SILVER COIN. 
 
 It is, i>erliaps, too early to attempt so radical a change as would be 
 involved in the sweeping away of existing forms of currency and the 
 substitution of new forms. The people should be prepared by educa- 
 tion for so thorough a revolution in customs that have become rooted by 
 generations of usage. But the merchants and business men of the two 
 continents have long since recognized the necessity for a uniform stand- 
 ard coin as the basis of business transactions between the several 
 nationalities of America, and are not only prepared for its immediate 
 adoption, but are earnestly urging it upon the attention of their respect- 
 ive representatives. The necessity for the introduction of a uniform 
 unit of value or trade dollar being apparent, it is for the statesmen of 
 America to devise the methods and provide the necessary treaties and 
 legislation to secure its early establishment. Hon. Conrad N. Jordan, 
 late Treasurer of the United States, and now president of the Western 
 National Bank of New York, has given this subject considerable study, 
 and in a paper jjrepared for the attention of the Congress says : 
 
 I propose an internatioual coinage, and present the following methods of bringing 
 such an agreement about. It ia folly to ask England to accept international coinage, 
 with the knowledge that by merely agreeing to go into a conference to bo held for 
 that purpose such action would put up silver from 5d. to lOd. per ounce, and thus com- 
 pel her to deplete an already i)artially exhausted stock of gold in making the pur- 
 chases which such an operation would require. Instead of asking England to commit 
 this absurdity why should not the United States otter to sell England £10,000,000 at 
 the average price paid by the United States, which is, say, 48^^., giving an option 
 for a further purchase of, say, £10,000,000, at, say, bOd., contract to run, say, three to five 
 or more years, England to pay 2 per cent, per annum on the credit, which can be re- 
 newable, the United States only to draw when exchange is at 4.89, or shipping point? 
 Thus England will practically pay for the silver purchase in goods or securities re- 
 turned from the other side. England will purchase with the knowledge that she 
 will not be required to pay except as above, or earlier, at her option, and as only 
 about 33 per cent, can be put — as I estiiuiite — in circulation in subsidiary coin in one 
 year, it will need three years to complete the tirst contract. The United States should 
 also agree to purchase an amount equal to its sale, if made, at not to exceed a like 
 price from its home producers, thus preventing the English silver market from being 
 swamped by excessive importations, which otherwise might be induced by the rise 
 in price. 
 
 A METHOD SUGGESTED. 
 
 The purchase made, an international agreement as to coinage being assumed as en- 
 tered into, it remains to provide a method to bring this about. Let us suppose inter- 
 national commissioners to be apjjoiuled for the purpose of supervising at the places 
 agreed upon as points of dei)Osit, the deposits to be made under the following arrange- 
 ment: Any person or corporation can deposit, say at the cities of Mexico, Vera Cruz, 
 Rio Janeiro, Buenos Ayres, Lima, Valparaiso, San Francisco, and New York. (This 
 list to be extended by the proposed conlVrence to all points where silver can be col- 
 lected and shipped at the lowest cost in the respective countries.) Silver exceeding, 
 say 800 line (minimum fineness to be agreed upon); certificates to be issued by the 
 respective governments under their guaranties as to fineness and weight, and under 
 au inspection by three commissioners (the consuls could act as such commissioners), 
 and under inteniational guaranty as to the safety aixl security of such deposits; 
 eaeh government to be charged with, the expense of silver moved by reason of th« 
 S. Ex. 54 21
 
 322 TRADE AND TRANSPORTATION IJHTWERN 
 
 agreement. The certificates to be issued in equivalents of 1,000 ounces fine, and in 
 sums of, say 10, 50, 100, 500, and 1,000 ounces. These certificates to be received by 
 the separate Governuicnts in payment of customs dues at, say not exceeding 55 pence 
 per ounce, 1,000 fine, or such price as may be aj^reed upon ; but to be received at the 
 average current price less than 55(i. of the previous month, as now done in Austria, 
 less I or 1 per cent., as the case may be or need, in order to pay expenses of issue of 
 certificates, the commission of inspectors, etc. The respective States may pay out or 
 sell such certificates at the average current rate, but are not compelled so to do. The 
 merchants can, however, settle their own debts, at their option or agreement, or make 
 sales and payments payable in these certificates, which contracts of sales and pay- 
 ments are to be recognized as valid and enforceable by law. The agreement to receive 
 such certificates to terminate ujion such notice by each government party to the 
 agreement, as may be agreed upon. 
 
 THE EFFECT OP SUCH AN ARKANGEMENT 
 
 would be to place in the hands of the governments which are parties thereto a 
 stock of silver that would provide for an international coinage of increased weight ; 
 but in the case of England, decreased fineness, as I should propose a coin 900 fine, 
 for the reason that this fineness suffers least by abrasion ; 440 grains to the dollar, 
 900 tine, or such increase as may be agreed upon. The nickel currency to be abol- 
 ished, and small silver issued in its place. This new coinage may be begun imme- 
 diately, but should be begun by parties agreeing thereto say no later than 1895 ; but 
 no new coinage of the old standards to be made. Until then, any of the coinages to 
 be received at the valuation to be placed upon the respective existing coinages 
 with reference to the coming new coinage. The terms of time of settlement to 
 be agreed upon, say five or ten years (the latter being best, though regard must 
 be had to the amount accumulated by the signatory powers through their cus- 
 toms or otherwise), the debtor nations to pay in silver, by weight and fineness, 
 the differences resulting from abrasion or lack of weight or fineness. This would 
 equalize the old coins with the new coins, or a toleration allowance could be 
 made as to abrasion, each nation being allowed one-twonty-fifth of 1 per cent, per 
 annum, which is as nearly as may be the legitimate abrasion which takes place an- 
 nually in silver coinage 900 fine. 
 
 The nations issuing small paper money would suffer the least under this arrange- 
 ment, as less small coinage would be in circulation with them under such conditions. 
 Currency could be forbidden of less denomination than $5. Any excessive abrasion 
 would be evidence of the coin being unfairly dealt with, and would not bo allowed 
 for. 
 
 The result of the methods presented in the latter part of these suggestions would 
 be, until the matter was fairly understood, an accumulation at a few centers, of sil- 
 ver certificates; but as soon as understood by merchants would create a mercantile 
 currency which may be expanded at will by the mercantile community, as represented 
 by its foreign merchants. But as soon as this channel was filled the accumulation by 
 the respective Governments would begin, and a sufiicient stock of silver would be ob- 
 tained without other expense than the price at which the certificates were received, 
 transportation and storage deducted, and out of which the new coinage could be cre- 
 ated without any great loss or expense. The further result would be obtained by the 
 use of the existing silver coinage of great economies in making the transition from 
 the one system of coinage to the other. 
 
 Mr. Jordan favors making the weight of the proposed coin 432.10 
 grains, as that divides equally in grams, an important point in connec- 
 tion Aj'ith the production of sul)si<liary coins. Four hundred and forty 
 grains of silver, 900 fine, would give 390 grams of pure silver. If made 
 400 grains of jmre silver, this would divide decimally in the best possi- 
 ble way. The selection of 900 fineness is because of the fact that it has
 
 THE UNITED STATES AN'I) I.A I'lN AMERICA. 
 
 323 
 
 been (leinoiistriited that silver of tliis «lej;iee ol" liiieiiess wear.s better 
 as iiumey than it coined of any other tinenes.s. It has the merit, too, 
 of having; been adoi)ted by every nation except En;;hind. The silver 
 of Enf;land is 1)25 fine, bnt proves to be too soft, and is snbject to greater 
 wear and tear than any other silver coinage. 
 
 ESTIMATE OF VALUES OF SPANISH-AMERICAN COINS. 
 
 The annexed table shows the monetary' standard of the several coun- 
 tries named, the monetary unit, the character of coins, and the equiva- 
 lent value of the monetary unit in terms of the gold dollar of the United 
 States. These estimates were j)re[»ared by the Director of the United 
 States Mint, are used by the custom-houses of the United States, and are 
 followed iu determining values of invoices. They are nuide annually, 
 and when ])romulgated by the Secretary of the Treasury, govern the cus- 
 toms ollicials for the year. 
 
 Tlie "standard" of a given country is indicated as follows, namely : 
 Double, where its standard silver coins are unlimited legal tender, the 
 same as its gold coins; single gold ov single silver, as its standard coins 
 of one or the other metal are unlimited legal tender. The par of ex- 
 change of the monetary unit of a country with a single gold, or a double, 
 standard is fixed at the value of the gold unit as comi)ared with the 
 United States gold unit. In the case of a country with a single sdver 
 staudard, the par of exchange is computed at the mean piice of silver 
 in the Loudon market for a i)eriod commencing October 1 and ending- 
 December 24, 1888, as per daily cable dispatches to the Uureau of the 
 Mint. 
 
 Country. 
 
 Standard. 
 
 Monetary unit. 
 
 C sX 
 2 J,.C it 
 
 Coins. 
 
 Argentine Republic. 
 Holivia 
 
 Double 
 
 Single Hilv^r 
 Siii<ile gold . 
 
 Double 
 
 Double 
 
 Single silver 
 
 Single silver 
 
 Double 
 
 Single silver 
 Sint;le silver 
 
 Single silver 
 Single silver 
 Single silver 
 
 Single silver 
 
 
 $0. 965 
 
 .08 
 .540 
 
 .912 
 
 .920 
 .C8 
 
 .68 
 .965 
 .6x 
 .7^9 
 
 .68 
 .08 
 .08 
 
 .136 
 
 Gold : argentine (.$4.«24) .and i 
 argi'utine. Silver: peso and 
 divi.siona. 
 
 Silvt I : Boliviano and divisions. 
 
 Gold: 5, 10, and 20 iiiilii is. Sil- 
 ver: i, 1, ami 2 ii.ilieis. 
 
 Gold: r.mudo (.n.S24i, doubloon 
 ($4. .".61), and condor (4;9.12;j). 
 Silver: p«wo anil divisions. 
 
 Gold: doubloon (.$5,017). Silver: 
 peso. 
 
 (lold : condor ($9,047) and dtnxble- 
 condor. Silver: sucro and di- 
 visions. 
 
 Silver : peso and divisions. 
 
 Boliviano 
 
 Milrt-is of 1,000 
 reis. 
 
 Brazil 
 
 Chili 
 
 Cuba 
 
 
 Kcuadur 
 
 
 Guat«<raala 
 
 Peso 
 
 Gourde 
 
 Havti 
 
 Uoiiduras 
 
 Mexico 
 
 Pe.so ^ 
 
 Dollar 
 
 Silver : divisions of peso. 
 
 G(dd : dollar ($0 9f<:i), 2^. 5, 10. 
 ana 20 dtjUars. Silver: dollar 
 (or jieso) and divisions. 
 
 Silver: pe.so and divisions. 
 
 Silver : sol ami divisions. 
 
 Gold : condor ($9,647) and double- 
 condor. Silver: peso. 
 
 G(dd: :., 10. 2(1, .'".I), and 100 boli- 
 vars. Sliver : 5 bolivars. 
 
 Nicarasna . 
 
 
 P.ru..? 
 
 Sol - 
 
 United States of Co- 
 
 
 lombia. 
 Venezuela 
 
 

 
 324 'I'KADH AND TK'ANSl'OK' I'A llON BKTWKKN 
 
 KELATIVE WEIGHT OF SILVER COIN. 
 
 Tlie number of jiraius of pure silver contained in ea(;h of the silver 
 coins of Si)anisli-Ameiicau countries is given in the annexed table. The 
 weij^Lit of tbe silver coins of other countries is also given-: 
 
 Country. 
 
 Silver coins. 
 
 Grains of 
 puni silver 
 contained. 
 
 Argeutino Keimblic , 
 
 Kolivia 
 
 l>i a/.il 
 
 Chili 
 
 P'cnailor 
 
 (iruateinala 
 
 Ilayti 
 
 llomluras 
 
 M'lxico 
 
 Niciira'jiia 
 
 Pitii 
 
 United States ot (Colombia 
 Venezuela 
 
 Au.stria 
 
 Belgium 
 
 Ji^il't 
 
 France 
 
 Cr.-.ce • 
 
 India 
 
 Italy 
 
 •fapan 
 
 Netlierlauda 
 
 Russia 
 
 S|>aiu 
 
 Swit/.eilaud 
 
 Tripoli 
 
 Peso 
 
 Boliviano . 
 2 iiiilieis. . 
 Alilieis ... 
 ^ milrois . . 
 
 Peso 
 
 Sucre 
 
 Peso 
 
 Gourde . . . 
 
 Peso 
 
 Dollar .... 
 
 Peso 
 
 Sol 
 
 Pt-SO 
 
 5 bolivars . 
 
 2 florins 
 
 J'lorins 
 
 5 ft Miles 
 
 ■Jd ])iasters. 
 10 iiiaster.s. 
 5 piiisttTS. . 
 2 jiiastirs. . 
 
 1 piaster 
 
 5 lian(;s 
 
 5 diaeliinas 
 
 Kupee 
 
 J rupee ...'. 
 
 5 lire 
 
 Ten 
 
 2i florins .. 
 
 1 llorin 
 
 A llorin. 
 
 Koublo 
 
 i roul'le 
 
 J rouble 
 
 5 ])esctas . . . 
 5 francs... 
 Mabbub ... 
 
 347.22 
 347. 22 
 ■MO. 723 
 ISO. 361 
 90. 180 
 347. 22 
 347. 22 
 347. 22 
 347. 22 
 347. 22 
 377. 17 
 347. 22 
 347.22 
 347. 22 
 347. 22 
 
 342. 932 
 
 171. 4G6 
 
 347. 22 
 
 3G(>. 080 
 
 180.040 
 
 <)0. 020 
 
 3G. 008 
 
 18. 004 
 
 347. 22 
 
 347. 22 
 
 10."). 00 
 
 82. .50 
 
 347. 22 
 
 374. 40 
 
 364. 581 
 
 145. 832 
 
 72. 916 
 
 277. 71 
 
 138.85 
 
 69. 42 
 
 347. 22 
 
 347. 22 
 
 313. 20 
 
 PRODUCTION OF GOLD AND SILVER. 
 
 In the a])iHMi(li.K to tbe Annual Report of tbe Director of tbe LTnited 
 States Mint for 1888 are tables coin[)ilc(l from tbe latest oflicial aiulotber 
 reliable data, showing tbe production of tbei)recious metals iu, and the 
 value of tbe coinage of, all nations for tiiecalendar year 1887. Tbe total 
 production of tbe world for tbe year was as follows: Gold, 151,712 kilo- 
 grams, valued at $100,82(>,000; silver, 3,0U),044 kilograms, valued at 
 f}V2r),'M(],:U(), wbicb gives a total output of 3,107,75() kilograms, valued 
 at !^225,172,;51(). From tbe table sbowing tbe world's entire production 
 of gold and silver, tbe following is taken, wbicb exhibits the production 
 of gold and silver iu American countries for 1887:
 
 THE TJNITEP RTATKS AND I.ATIN AMKRTCA. 
 
 325 
 
 Coantries. 
 
 UnKed States 
 
 Mexico 
 
 Soulli America: 
 
 Argi'iitiuo Republic 
 
 Colombia 
 
 Bolivia 
 
 ChMi 
 
 JJrazil 
 
 Venezuela 
 
 Peru 
 
 Conti-jil America : 
 
 Costa Rica 
 
 Honduras 
 
 Salvador 
 
 Tot:il 
 
 Silver. 
 
 Kilox. 
 
 I, --'83, 855 
 904, 000 
 
 722 
 
 24, 061 
 
 240, 616 
 
 205, 542 
 
 141 
 
 49, 750 
 
 1,799 
 5,774 
 
 2, 716, 260 
 
 Dollarit. 
 53, ;{57, 000 
 37, 570, 000 
 
 30, 000 
 
 1,000,000 
 
 10,000,000 
 
 8, 537, 350 
 
 5,850 
 
 2, 067, 650 
 
 74, 750 
 240, 000 
 
 112,882,600 
 
 Gold. 
 
 Kilos. 
 49, 654 
 1,240 
 
 45 
 
 4,514 
 
 109 
 
 2, 395 
 
 1,502 
 
 5, 020 
 
 170 
 
 131 
 
 100 
 
 64,880 
 
 Dollars. 
 33, 000, 000 
 824, 000 
 
 30, 000 
 
 3, 000, 0(10 
 
 7'J, 000 
 
 1,591,40(1 
 
 998, 000 
 
 3, :!3G, (100 
 
 113,000 
 
 87, 000 
 
 63,117,800 
 
 This shows that America produced in 1887, 90 per cent, of the world's 
 output of silver and 62 per cent, of the output of gold. 
 
 COINAGE IN AMERICAN COUNTRIES. 
 
 The coinao-e of the world for 1887 was, gold $124,992,405, and silver 
 $103,411,397. Of this the coinage of American countries was as fol- 
 lows : 
 
 Country. 
 
 United States 
 
 Mexico 
 
 Argentine Republic 
 
 Colombia 
 
 Bolivia 
 
 Chili 
 
 Peru 
 
 Honduras 
 
 Nicaragua 
 
 Hay ti 
 
 Total 
 
 Gold, 
 
 $23, 972, 383 
 
 398, 647 
 
 9. 173, 370 
 
 25, 360 
 
 33, 769, 760 
 
 Silver. 
 
 $35, 191,0S1 
 26,844,031 
 
 663, 069 
 1, 763, 451 
 
 333, 000 
 
 ],C8.), 000 
 
 71,978 
 
 400, 000 
 
 500, 000 
 
 64, 451, 610 
 
 In 188G the Argentine Republic coined in gold $1,988,670; Chili, 
 $37,210; Colombia, $20,965; Brazil, $20,053; and Mexico, $307,490. 
 These were the only Spanish American countries which coined gold 
 that year. During the same year the countries named coined silver as 
 follows: Chili, $900,080; Peru, $592,005; Colombia, $1,354,820; Vene- 
 zuela, $1,280,345; Guatemala, $27,387; Brazil, $30,373; Costa Rica, 
 $148,030; Hayti, $144,750; Mexico, $20,991,804. The coinage of the 
 United States that year was, gold, $32,086,709 ; silver, $28,945,542.
 
 326 TRADE AND TRANSPORTATION BETWEEN 
 
 COINAGE IN THE UNITED STATES. 
 
 The aunexed table shows the coinage of the United States since 1870. 
 Tables showing the coinage in detail from the fonndation of the mint 
 are given in the annual report of the Director of the Mint : 
 
 Year. 
 
 1870 
 
 1871 
 1872 
 1873 
 1874 
 1875 
 1876 
 1877 
 1878 
 1879 
 1880 
 1K81 
 1882 
 1K83 
 1884 
 1H85 
 1886 
 1887 
 1888 
 
 Gold. 
 
 $23, 
 21, 
 21, 
 57, 
 35, 
 32, 
 40, 
 43, 
 49, 
 39, 
 62. 
 96, 
 65, 
 29, 
 23, 
 27, 
 28, 
 23, 
 31, 
 
 787. 50 
 685. 00 
 645,00 
 747. 50 
 630. 00 
 940. 00 
 4.52. 50 
 864. 00 
 052. 00 
 080. 00 
 279. 00 
 890. 00 
 fi'JS. 00 
 !)90. 00 
 756. 50 
 012.50 
 542. 00 
 383. 00 
 808. 00 
 
 Silver. 
 
 Minor. 
 
 Total. 
 
 $1, 378, 255. 50 
 
 $350, 325. 00 
 
 $24, 927, 368. 00 
 
 3, 104, 038. 30 
 
 99, 890. 00 
 
 24, 230, 613. 30 
 
 2, .504. 4KH. 50 
 
 369, 380. 00 
 
 24,686, 513. .50 
 
 4, 024, 747. 60 
 
 379. 455. 00 
 
 61, 426. 9."iO. 10 
 
 6.851,776.70 
 
 342, 475. 00 
 
 42,448,881.70 
 
 1,5,347,893.00 
 
 246, 970. 00 
 
 48, .540. 803. 00 
 
 24, 50;i,307.50 
 
 210, 800. 00 
 
 71, 203, 560. 00 
 
 28, 393. 04.5. 50 
 
 8, 525. 0(1 
 
 72,401.434 ;.0 
 
 28,518,850.00 
 
 58, 186. 50 
 
 78, 363, 088. 50 
 
 27, 569, 776. 00 
 
 16.5, 003. 00 
 
 66,814,859.00 
 
 27,411,693.75 
 
 391, 395. 95 
 
 90, 111,368.70 
 
 27, 940, 1(53. 75 
 
 428, 151.75 
 
 125, 2 19. 20.5. .50 
 
 27,973, 132.00 
 
 960, 400. 00 
 
 94.821,217.00 
 
 29, 246, 968. 45 
 
 1,604,770.41 
 
 60, 093, 728. 86 
 
 28, 534, 806. 15 
 
 790, 483. 78 
 
 53, 323, 106. 43 
 
 28,962,176.20 
 
 191,622.04 
 
 56, 926, 810. 74 
 
 32, 0H6, 709. 90 
 
 343,186.10 
 
 61. 37.5, 438. 00 
 
 3,5, 191,081.40 
 
 1,215,686.26 
 
 60.379,150.60 
 
 33,025,606.45 
 
 912,200.78 
 
 65,318,615.23 
 
 PRODUCTION OF PRECIOUS METALS IN TUB UNITED STATES. 
 
 The production of gold and silver in the United States for the same 
 period was as follows : 
 
 Tear. 
 
 Gold. 
 
 Silver. 
 
 Total. 
 
 1870 
 
 $50, 000, 000 
 43,500,0(10 
 36, 000, 000 
 36, 000, 000 
 
 33, 500, 000 
 33, 400, 000 
 39, 900, 000 
 46, 900, 000 
 51,2110,0(10 
 38, 900, 000 
 36, 000, 000 
 
 34, 700, 000 
 
 32, .500, 000 
 30, 000, 000 
 30, 800, 000 
 31,800,000 
 3.5, 000, 000 
 
 33, 000, 000 
 
 $16,000,000 
 23, 000, 0(10 
 28, 7.50, (100 
 35, 750, 000 
 
 37, 300, 000 
 31.700,000 
 
 38, f-00, OOO 
 
 39, 800, 01)0 
 
 45, 200, 000 
 
 40, 800, 0(K) 
 30, 200, 000 
 43, 000, (lOil 
 
 46, HOO, 000 
 40, 200, 000 
 4H, 800, 000 
 51,600.0(10 
 51,000,000 
 .53, 357, 000 
 
 $66, 000, 000 
 
 1871 
 
 66, .500, 000 
 
 1872 
 
 64, 750, 000 
 
 1873 . 
 
 71 750 000 
 
 1874 
 
 70, 800, 000 
 
 1875 
 
 6,5, 100, (H/0 
 
 1870 
 
 78, 70(1 000 
 
 1877 
 
 86, 700, 000 
 
 1878 
 
 9(i, 400, (i(iO 
 
 1879 
 
 79, 700, 000 
 
 1880 » 
 
 75, 200, (100 
 
 1881 
 
 77, 700, 000 
 
 1882 : 
 
 79, 3C0. 000 
 
 1883 
 
 70, 200. (100 
 
 1884 
 
 79, 600, 000 
 
 1885 
 
 Kt, 4(10, 000 
 
 1886 
 
 80, 000, 000 
 
 1887 
 
 80, 357, 000 
 
 1888 
 
 
 
 

 
 THE tJNITED STATES AND LATIN AMERICA. 327 
 
 RATIO OF SILVER, TO GOLD. 
 
 The following table exhibits the ratio of silver to gold since 1860: 
 
 Year. 
 
 Ratio. 
 
 
 Year. 
 
 Katio. 
 
 1860 
 
 15.29 
 15.50 
 15. 35 
 15. 37 
 15.37 
 15.44 
 15. 43 
 15.57 
 1.5. 59 
 15.60 
 15.57 
 15. 57 
 15. 63 
 15.92 
 
 1874 
 
 1875 
 
 1876 
 
 16.17 
 
 1.H61 
 
 16. 59 
 
 1862 
 
 17.88 
 
 \H<V.i 
 
 1>77 
 
 17.22 
 
 1864 
 
 1878 .. 
 
 17.94 
 
 leos 
 
 1879 
 
 18.40 
 
 ir-ee 
 
 1880 
 
 18.05 
 
 1867 
 
 1881 
 
 18.16 
 
 1868 
 
 1882 
 
 
 18.19 
 
 1869 
 
 1883 
 
 1884 
 
 1885 
 
 1886 
 
 
 18.64 
 
 J870 
 
 18. 57 
 
 1871 
 
 19.41 
 
 1872 
 
 20.78 
 
 1 873 
 
 1887 
 
 
 21.10 
 
 
 
 PRODUCT OF MEXICO. 
 
 The following table shows the product of gold and silver in Mexico 
 from 1877 to 1888 : 
 
 Years. 
 
 Gold. 
 
 Silver. • 
 
 Total. 
 
 1877 1878 
 
 $747, 000 
 
 881,000 
 
 942, UOO 
 
 1,013,000 
 
 937. 0(10 
 
 956, 000 
 
 1, 05 ., 000 
 
 914,000 
 
 1, 026, OOO 
 
 1, 047, 000 
 
 1,031,000 
 
 $24, 837, 000 
 25, 12.'), 000 
 20, 800, 000 
 29, 234, 000 
 29. 329, 000 
 29, 5(>9, 000 
 31, 695, 000 
 
 33, '226, 000 
 ,34,112,000 
 
 34, 600, 000 
 34,912,000 
 
 $25, 584, 000 
 
 1878-1879 
 
 26,0116,000 
 
 1879 1880 
 
 27, 742, 000 
 
 1880 1881 
 
 30, 247, 000 
 
 1881-1882 
 
 30, 266, 000 
 
 1882-1883 
 
 30, 525, 000 
 
 1883-1884 
 
 32, 750, 000 
 
 1884-1885 
 
 34, HO, 000 
 
 1885 1886 
 
 35, 138,000 
 
 1886 1887 
 
 35, 647, 000 
 
 1887-1888 
 
 35, 943, 000 
 
 
 
 Total 
 
 10, 549, 000 
 
 333, 439, 000 
 
 343, 988, 000 
 
 
 
 COINAGE OF MEXICO. 
 
 The coinage of Mexico is shown iii the following table : 
 
 Years. 
 
 Gold. 
 
 Silver. 
 
 Copper. 
 
 1873 1874 
 
 $806, 743 
 802, 019 
 809, 401 
 695, 750 
 691,998 
 658, 206 
 521,826 
 49--', 068 
 452, ,.90 
 407, 600 
 328, 698 
 423, 2.50 
 425, 000 
 410,000 
 340, 320 
 
 $18,840,067 
 19, 386, 958 
 19,454,0,54 
 21,415, 128 
 22, 084, 203 
 22, 162. 987 
 24, 018, 528 
 
 24, 617, 395 
 
 25, 146, 200 
 
 24, 083, 921 
 
 25, 377, 379 
 25, 840, 728 
 25, 850, 000 
 25. 600, 000 
 26,711,000 
 
 $1.5, 966 
 
 1874-1875 . ... 
 
 2!, 712 
 
 1875 1876 
 
 30, 654 
 
 1876 1877 
 
 9, 035 
 
 1877-1878 
 
 41,364 
 
 1878-1879 . 
 
 16, 300 
 
 1879 1880 
 
 14, 035 
 
 1880 1881 
 
 42, 258 
 
 1881 1882 
 
 11,972 
 
 1882 1883 
 
 
 
 1883-1884 
 
 
 1884 1885 
 
 
 188.5-1886 
 
 
 1880-1887 
 
 
 18h7 1888 
 
 
 
 
 Total 
 
 8, 386, 069 
 
 350, 594, 608 
 
 203, 296 
 
 
 
 SUMMARY. 
 
 Gold $8,386,069 
 
 350, .594, 608 
 
 Silver. 
 
 Copper 
 
 Grand total. 
 
 203, 296 
 
 359, 183, 973
 
 528 
 
 TRADE AND TRANSPORTATION BETWEEN 
 
 Coinage of Mexico froin the estahlishment of thetnints, in 1537, to the end of the fiscal year 
 
 of 1888. 
 
 Piriods 
 
 Gold. 
 
 SUver. 
 
 Copper. 
 
 Total. 
 
 COLONIAL EPOCH. 
 Fiiinillcd coin from 1537 to 1731 
 
 $S, 497, 950 
 19, 8X9, 014 
 40, 391, 447 
 
 $752, 067, 450 
 441,6JU,211 
 88H,'56:!, 989 
 
 $200, 000 
 
 $760, 765, 406 
 
 Pillar coin 1732 to 1771 
 
 401, 51K, 225 
 
 Bust Coin 1772 to 1821 
 
 342, 893 
 
 929, 2!»8. 329 
 
 
 
 
 68,778,411 
 
 2, 082, 260, 656 
 
 642, 89:i 
 
 2,151,581,960 
 
 mPEPKNDENCB. 
 
 Itnrbide'a imperial bust. 1822 to 1823 
 
 Kepublic oanle, 1824 to June 30, 1873 
 
 557,392 
 45, 040, 628 
 
 18, 575, 569 
 740, 246, 485 
 
 
 19 132,961 
 
 .5, 235, 177 
 
 790, 522, 290 
 
 
 
 
 45, 598, 020 
 
 758. 822, 054 
 
 5, 235^ 177 
 
 809, 655, 251 
 
 HErUBLTC. 
 
 Eaple coin, from 1st July, 1873, to June 30, 
 1888 
 
 8,386,009 
 
 350, 594, 608 
 
 203, 296 
 
 359, 183, 973 
 
 
 
 SUMMARY. 
 
 Colonial epoch (from 1,537 to 1»21) $2,151,581,960 
 
 lull. pciKhnce (from 1822 to 1873) M)9, <i.5:i, 2.il 
 
 Kepublic (Irom 1873 to 1^88) :!,"'9, 183,973 
 
 Total 3,320,421,184 
 
 RECOINAGE OF MEXICAN SELVER, DOLLARS. 
 
 In discussing the movement of Mexican silver dollars, Dr. Kimball, 
 Director of the Mint, in his report for 1888, on precious metals, saj'S : 
 
 How far should exported Mexican silver dollars be considered as represent in <;; per- 
 manent coinage or recoinage ? It would seem that all Mexican dollars not exported 
 to Oriental countries, where their form is preserved, should be considered as new ma- 
 terial, and within the purpose here indicated, not as foreign coin. As these dollars 
 enter at once into the composition ot coins of other nations they should not be 
 treated otherwise than as new bullion, shipped in the form of dollars for convenience 
 of tale. 
 
 Aiiainst the Mexican coinage of the silver dollar, long maintained both as a trade 
 coin and as a stamped ingot, should therefore, in order to obviate duplication, be 
 liniilly deducted in any general statement of the coinages of nations at lca,st the sum 
 of all dollars coined over at other mints. A considerable part of tlie rest of this coin- 
 age is treated in Europe, the United States, India, and Japan as more or less dor6 
 bullion, and likewise reiuelted and refined. Hence the registration of silver coinage 
 in Mexico is significant of stability only in small ratio to the whole coinage for any 
 given period. For economic rather than statistical purposes it would pioltably lead 
 to the les.ser error to account for one-third of the coinage of Mexico as directly going 
 back into bars for refining and eventually for industrial employment, and another 
 third as speedily going into coinages of other nations. 
 
 According to the annual statement of Mocotta & Gold.sinid, of London, the imports 
 of Mexican silver dollars into Great Britain during tlie year 1887 were, in round num- 
 bers, $9,000,000, and the exports to China and the Straits $4,500,000, leaving about 
 $4,.S00,()00 for refining and Enrojiean coinages. 
 
 The value of Mexican silver dollars im])orted into the United States from Mexico 
 during the same period wa8.$8,h22,8ril, of which there w.as re-exported from San Fran-
 
 THE UNITED STATES AND LATIN AMERICA. 329 
 
 Cisco to Cliiiia, $r),07.'),.U)0, loavinr in tlio United StatCR, probably molted at, the 
 mints, $'^,747,152. 
 
 According to the otHcial statement of tlio Indian mints there were deposited and 
 melted lor Indian silver eoina<j;e dnrinj^ the year 18f(7 Mexican dollars of the value of 
 l,92:?,H«d rupees, equivalent to liHUJjUUU. At, least 8,000,000 Mexican silver dollars are 
 therefore known to Iiave been melted for coinage purposes during the year 1887. 
 
 PRODUCT OP BOLIVIA. 
 
 Exjict information as to tlie production of the precious metals in 
 Boliviii (;an not be obtained, and the amounts given in the table show- 
 ing the ])ioduction of American countries is based on estimates made 
 by the ])irector of the Mint. From information received from the 
 United States minister at La Paz the following datti is obtained, sliow- 
 ing the exports of gold and silver during the calender year 1887 : 
 
 Description. 
 
 Bolivianos (or 
 dollars). 
 
 GOi.n. 
 
 Via Puerto Perez, Desaqua<lero and Arica: 
 
 Gold maniifiictured 
 
 (lold bullion (53,774 grams) 
 
 Gold coin 
 
 SILVER, 
 
 Via Puerto Perez and Deaaquadero : 
 
 OiR.'f, 17,088 niarca 
 
 Bullion, 24.8niyw marcs 
 
 Old plate, 29:{,*i'niarcs 
 
 National coin , 
 
 Via Aiica ; 
 
 Ores (45. 944 kilofframs) 
 
 Bullion (34, 800 kilograms) ... 
 
 01(1 plate (108 kilograms) 
 
 National coin 
 
 Via 'J'upiza and Alota: 
 
 Ores (2 1 1 ,847 marcs, 1 onz. ) 
 
 Bullion (190,438 marc8 4on7,.) , 
 
 National coin 
 
 Total 
 
 Coinage in 1877 
 
 Total export and coinage 
 
 1, 040. 00 
 
 40, 435. 25 
 7,011.00 
 
 170, 850. 00 
 
 248,918.07 
 
 2, 348. 48 
 
 121, 847. 46 
 
 2, 066, 025. 00 
 
 1, 566, 579. 00 
 
 7, 560. 00 
 270, 866. 00 
 
 2, 138. 471.. ""lO 
 1, 968, 385 50 
 
 76, 032. 00 
 
 8, 686, 969. 26 
 1,763,451.22 
 
 10, 449, 420. 48 
 
 COINAaE OF PERU. 
 
 During the year ending June 30, 1888, there were deposited in the 
 mint of I'eru 1,430 bars of silver weighing 69,160,319 kilograms with a 
 value of 3,073,789 soles. The coinage during the year was 2,454,000 
 soles. 
 
 The total valuation of gold and silver ores and bullion and gold and 
 silver coins during the calendar year 1887 was 4,629,192 soles.
 
 330 
 
 1RADE AND TRANSPORTATION BETWEEN 
 COINAGE OF COLOMBIA. 
 
 There are three mints in the United States of ColoDibia. Those at 
 Bogota and Popayan were established in 1753, and that at Medellin in 
 1860. Th'C total operations of these mints from their establishment are 
 thus summarized : 
 
 Hints 
 
 Gold. 
 
 Silver. 
 
 Totftl deposits 
 
 in gold and 
 
 silver. 
 
 
 Deposits. 
 
 Value. 
 
 Deposits. 
 
 Value. 
 
 
 Kilograms. 
 
 1C6, 307. 570 
 
 108. H50. 567 
 
 4,397.113 
 
 Pesos. 
 99, 563, GV3. 15 
 64,122,694.10 
 •A IfiR ."ilT 70 
 
 Kilograms. 
 279, 620. 965 
 
 Petot. 
 
 1? fi7d 417. ''."S 
 
 Pesos. 
 112,238,040.40 
 
 
 8,2:^3.641 :!4C.642.20 
 07, G99. 4-J8 , 4, 670, 918. 50 
 
 64, 409, 3:iG. 30 
 
 Medellin 
 
 6, S39, 430. 1.0 
 
 
 
 
 Total 
 
 279, 055. 250 
 
 165, 854, 834. 95 
 
 385 564.034 i 17 Kfll 977. n.'i i 18.^. i>4fi. «12. 00 
 
 
 
 
 
 The product of gold mines worked in Colombia during the period 
 from 1753 to 1887 is placed at 343,901,470 pesos. The total amount 
 coined was 165,854,834 i)esos, and the amount exported, according to 
 reports made to the authorities, 09,845,321 pesos, which would leave 
 90,009,513 pesos as the circulation. 
 
 The silver coinage during the same period was nearly 18,000,000 pesos. 
 Accurate data touching the amount of silver exported can not be ob- 
 tained. 
 
 URUGUAY. 
 
 There is no mint in Uruguay. The imports of gold and silver in 1887 
 were $3,500,450, of which $3,240,894 was received from the Argentine 
 Kepublic, $285,780 from Brazil, and $27,770 from the Pacitic coast. 
 The exports for the year were $7,127,137, of which Europe received 
 $4,847,655. 
 
 CENTRAL AMERICA. 
 
 Guatemala, Costa Eica, and Honduras have mints which are em- 
 ployed occasionally in the coinage of small amounts of the lower de- 
 nominations of silver coin. Nicaragua has no mint. She has, however, 
 a small circulation of subsidiar^^ coin made in England. Salvador has 
 no mint and no coinage of any kind. Fully nine-tenths of the metallic 
 circulation in all of the Central American states is made up of Peruvian 
 silver soles and Chilian pesos. 
 
 The estimated amount of silver in circulation is : Guatemala, 5,200,000 
 l)esos ; Costa Rica, 000,000 ; Nicaragua, 2,000,000, i)rinci]>ally in pesos 
 of Chili and Peru. No estimate can be given for Guatemala and Sal- 
 vador. 
 
 BRAZIL. 
 
 United States Consul-General Armstrong, writing to the State De- 
 partment from Rio Janeiro, June 1, 1889, says : 
 
 For the (irHttimo mnco lft7t) iho curroncy of the country has reached its par valno, 
 whifli in 27ri. j)or luilri'iM. The (lowiiwitrd tcndcjicy, wliich boi^aii in IHOf), was duo 
 to the Paraf^uayan war, in whicli lira/ii sjxMit. ;ibout .$;iOO,000,000. After the war the
 
 THE UNITED STATES AND LATIN AMERICA. 
 
 331 
 
 cnrroncy rapidly rallied, and reached its par value in 1873 aud again in 1875 and 
 1876. Afterwards, in consequence of the financial embarrassments of the country, a 
 depression ensued and continued, with numerous liuctuations, until, through the 
 efforts of the late ministry, the tinancial condition of the country Ix'gan to improve, 
 reaching last year its par value. In the present year it has nearly always been above 
 par, and specie is flowing into the country and entering into circulation. During the 
 first quarter of the year the receipts of specie at this port were as follows: 
 
 The improvement in the value of the currency is duo to several causes, among which 
 the most important are the following : 
 
 (1) The general improvement in the finances of the Empire. 
 
 (2) The combination of foresight and good fortune which has enabled the Govern- 
 ment to provide for meeting its obligations at home and abroad without disturbing 
 the money market. 
 
 (H) The large coffee crop. 
 
 (4) The investment of a considerable amount of foreign capital in Brazilian enter- 
 prises. 
 
 (5) The withdrawal from circulation of a considerable amount of the paper cur- 
 rency. 
 
 PRODUCTION OF THE WORLD. 
 
 The follo'sving^ summaiy show.s the quantity and vahie of jjohl and 
 silver produced in all countries of the world for the four calendar yeans 
 ending' with 1887. 
 
 The product is expressed in kilograms of fine gold and of fine silver, 
 and also in terms of value, the value of silver being at coining rate in 
 United States silver dollars, equivalent to $41.56 per fine kilogram. 
 The table is believed to approximately present the gold and silver 
 product of the mines of the world, except such desultory quantities as 
 escajie record : 
 
 Tear. 
 
 Gold. 
 
 Silver. 
 
 Kilograms. 
 
 Value. 
 
 Kilograms. 
 
 Value. 
 
 18M 
 
 1.53, 070 
 156, 156 
 149, 338 
 151, 712 
 
 $101,729,600 
 103, 779, 600 
 99, 250, 8/7 
 100, 826, 800 
 
 2, 537, 564 
 2,841,573 
 
 2, 896. 882 
 
 3, 016, 044 
 
 $105 461 3.50 
 
 1885 
 
 118 095 150 
 
 1886 
 
 lliO 394 400 
 
 1887 
 
 125, 346, 310
 
 r)32 TRADE AND TRANSPORTATION BETWEEN 
 
 VI. 
 
 SPANISH-AMERICAN CUSTOMS REGULATIONS. 
 
 The following report upon the customs regulations of the S])anish 
 American countries was prepared by William F. McConnell, assistant 
 secretary of the New York Board of Trade and Transportation : 
 
 New York, Septcmher 12, 1889. 
 
 Sir: In your letter of August 24, I am requested to prepare a re- 
 port embodying ■■' facts relating to the vexatious customs regulations in 
 the several ports of Central and South America, and the embarrass 
 ments experienced by exporters in the United States therefrom ; the 
 fines and penalities that are imposed for trivial violations of these reg- 
 ulations, and the habit of confiscating goods because the technicalities 
 of the regulations are not complied with." 
 
 This opens a wide field of labor which patient effort has i>roven to be 
 unfruitful of practical results. Business men who have dealings with 
 the Central and South American niercUaut transact such business (as 
 a rule) through commission houses because of the dilliculty in com- 
 prehending the tariff laws and regulations of these countries. The com- 
 mission merchants appear to have a wholesome fear of the consecjuences 
 of publishing any complaints, because they must necessarily disclose 
 business secrets, and may incur the displeasure of the autocratic cus- 
 toms officials who wield such arbitrary powers in the several Covern- 
 ments of these Republics. I am therefore unable to present many 
 j)ractical illustiations of the vexatious embarrassments experienced by 
 shippers to those countries. 
 
 One fact which all shipi)ers recognize is that the tariff and customs 
 regulations are the law and are enacted with the full knowledge of 
 the peculiar requirements of the people of the different countries, 
 and any violation of such laws is naturally followed by punishment. 
 These laws are meted out to all foreigners without discrimination (ex- 
 cept in one or two minor i)istances), and the knowledge of these facts 
 compels honest shippers to endeavor to obey them, without complaint, 
 if they are willing to transact business under them.
 
 THE UNITED STATES AND LATIN AMEKIOA. 3o3 
 
 LITTLE COMPLAINT IN CENTRAL AMERICA. 
 
 Of tlie sevcnil Govcnimeiits iu Central America, vie, Guatemala, 
 HoiMliiras, Nicarajjua, Costa Rica, Sau Salvador, aii<l Mexico, there 
 ^eeiiis to be little complaint except with Mexico. The customs laws 
 and regulations of the other Governments are administered with fair- 
 ness and facility. While the regulations are different, there seems to 
 be a desire to offer every opportunity to the shipper or importer to 
 transact business with the least possible difficulty and expense, an illus- 
 tration of which is the acceptance in San Salvador of the exporter's 
 private invoice under oath. In short, they may be likened to the cus- 
 toms service of the United States. The same is true of Brazil, Ecuador, 
 Bolivia, Argentine Republic, Paraguay, and Uraguay, of the South 
 American group. Some fault is found with Chili, Peru, and the United 
 States of Colombia; but against Venezuela and Mexico, merchants are 
 loud iu their denunciation. 
 
 CUSTOMS REGULATIONS IN VENEZUELA. 
 
 In Venezuela the customs officials are paid small salaries and are 
 allowed 50 per cent, of all fines or assessments that may be inflicted. 
 Tliis naturally tends to make them anxious to discover a pretext for 
 coni[)laint, with the result that almost every importation is interfered 
 with, and the revenue of the informer — i. e., the official — materially in- 
 creased. The only redress the merchant has is to appeal to the treas- 
 ury department, but as, it is asserted, the informer is ai)i)ointed as a 
 politician, with the understanding that the perquisites shall form the 
 major part of his remuneration, appetil is generally considered useless, 
 and when decided has been uniformly against the merchant. If for any 
 reason the case should be decided favorably to the merchant, he has no 
 redress for damage or delay (though such damage may be caused by a 
 desire of greed on the part of the informer), because of the fact that 
 the customs officials are not under any bonds, and therefore have no 
 responsibility. The lines imposed are excessive and consist of double 
 the amount of duty, r,ud iu many cases a confiscation of the goods 
 besides. ^ 
 
 Duties are assessed sometimes by gross weight, while at other times 
 duties are i)aid according to weight declared in manifests. For in- 
 stance, one of our Xew York commission houses, in August, sliii)ped a 
 large consignment of miscellaneous merchandise. Among others was 
 Jl barrels of glassware, the actual weight of w^hich was 1,411 pounds, 
 or G8'i kilos. In copying the manifest the clerk wrote 1,411 kilos, and 
 this was de(;lared. When the goods arrived the customs authorities 
 demanded duty on the 1,411 kilos, notwithstanding that it was palpa- 
 bly a clerical error and that the package itself weighed only 682 kilos. 
 There was no use to appeal, and the merchant was compelled to pay the 
 difference, which amounted to $127.05. Jf the case had been different
 
 3o4 TRADE AND TUANSPORTATION 15ETWEEN 
 
 and tlie barrels weigLed 1,411 kilois, while the manifest called for only 
 08U lvil(»s, the duty would have been assessed according to the weight 
 of tlu' Itaiivls, without regard to the manifest, and the merchant would 
 have had to pay a fine of double the amount of duty involved. 
 
 ASSESSMENTS BY WEIGHT. 
 
 The assessment of duty by gross weight is a source of great nnfiiir- 
 ness, because many goods which should p.iy duty by the measure are 
 compelled, by reason of the manner of packing, to i>ay a greater duty 
 thau is just or reasonable. The fact that the Venezuela authorities do 
 not allow anj' time for the correction of errors in invoices is another 
 source of complaint. In almost all other countries three days' grace is 
 allowed for this purpose, but, as before stated, the absence of such grace 
 cost a commission house in New York $127.05. They also ignore the 
 notification by the shii)perof an error, and assess duty according to the 
 rules laid down, as, for instance, in the case before referred to. Another 
 troublesome feature is the coustaut contlictiou by tlie customs authori- 
 ties in the construction of the law, which, however, must be complied 
 Avith in the most minute particular. The tariff is divided into nine 
 classes, and the exporter must classify his goods in his invoice. This is 
 a very difficult thing to do, because the name of the goods purchased 
 in the United States may not be, and often is not, the local name of the 
 goods iu South America. This is especially true of print goods, etc. 
 Prints are specified as first class, while other goods known iu this 
 market as prints may be, and are, classified iu South American markets 
 under another heading. Thus, upou the examination of the goods as 
 j)rovided by law the custom-house official finds what he pleases to call a 
 violation, and, notwithstauding the honest effort of the exporter to 
 classify correctly, he is subjected to a penalty. 
 
 A GREAT CAUSE OF COMPLAINT. 
 
 Section 108 of the tariff" law provides that if " there is a contradic- 
 tion iu the tariff", the higher duty should be imposed upon the article in 
 questiou." This is often a source of trouble. For exaiiiple, a merchant 
 will order a consignment of goods and ask for a sample of another arti- 
 cle, which may be shipped in the sauic package. The sami)le may be 
 rated at a higher duty thau the other articles, but notwithstanding 
 that it is ouly one piece, all the other goods iu the shipment must i)ay 
 the rate of duty assessed on that sample. Under this ruling shipments 
 of small goods must be i)acked in a great nuiny i)ackages, enhancing 
 the cost to the manufacturer or shi[)per. 
 
 The regulations regarding declarations are very severe. The tariff 
 classifies lamps according to their composition, gold, silver, brass, or 
 whatever it may be, and also provides for " lamps, not specified." 
 This latter clause was construed by a merchant iu this city to cover
 
 THE UNITED STATES AND LATIN AMERICA. 335 
 
 a miscollaiioons sliii)m(Mit of lamps " witliout sj^'eincatioii," aiul lie 
 8liii)i)C(l accordingly. The couscqueiice was a lino, because the words 
 of tlie tariff ''hot specified" were omitted from the invoice. This is a 
 ])ractical illustration of the technicalities of the customs regulation of 
 Venezuela aud the difticulty experienced under them. Another serious 
 and expensive fault is found iu the iron-clad rules governing the close 
 of business hours in the custom-houses. The hour for closing having 
 arrived, business is suspended for the day, and the mercliant, steam- 
 ship, or sailing vessel must postpone or delay its business until the 
 ollicials are once more ready to proceed. This is often the source of 
 trouble and expense, especially to the steam-ship lines. Merchants 
 would also welcome the establishment of the bonded warehouse system, 
 the absence of which is now severely felt. 
 
 GOODS SHIPPED " IN TRANSIT." 
 
 A matter which is attracting the attention of the merchants of the 
 United States of Colombia, as well as the exporters of this country and 
 of Venezuela, is the handling of goods shi[)ped to Colombia via Ven- 
 ezuela. Goods intended for certain i^arts of Colombia are shipped iu 
 this way to evade the enormous expense of transportation over the 
 moujitains, and the merchant so shipping must not only conform to the 
 Colombian tariff but also to that of Venezuela. As these tariffs do not 
 usually agree the shipper is almost sure to get into trouble. The goods 
 must be declared " in transit ; " if this is omitted the Venezuela author- 
 ities mark them for home consumption and collect duty accordingly, 
 with the imposition of a fine if everything does not accord with their 
 tariff" or classification. 
 
 The following recent experience of one of the most prominent and 
 experienced commission houses in this country will demonstrate the 
 difficulty met with under this regulation. They had a consignment to 
 a merchant in Colombia to be shipped via Maracaibo, iu Venezuela. 
 Through some mistake the goods were not declared in the manifest as, 
 "iu transit," consequently they were compelled to pay duty at Mara- 
 caibo. The consignee in Colombia declined to pay duty at two ports 
 on the same goods, and left them at Maracaibo for the account of the 
 American commission merchant, who subsequently arranged to dispose 
 of them, as no agreement or settlement could be effected with the cus- 
 tom-house to obviate the ditHculty. 
 
 The constitution of Venezuela allows no export duty, but this is over- 
 come by what is known as a transit duty, which is levied according to 
 the gross weight of the goods without regard to value or quality. 
 
 DISCRIMINATIONS. 
 
 As stated in the beginning of this report, the tariff does not dis- 
 criminate, except iu two instances. The one which affects the United 
 States is the discrimiuatiog in favor of (Spanish and Bordeaux wines.
 
 336 lliAUi: AIS'D TKANSPOKTATIOX BETWEEN 
 
 The taritl provides that Spanish and Bordeaux clarets, in any pack- 
 age whatever, pays 25 cents of a boliva, while wine from other coun- 
 tries pays 75 cents of a boliva, unless it be iu hogsheads, barrels, or 
 casks, when the duty is 25 cents. As only the cheapest wines are 
 shipped in barrels or casks, and as the Si)anish and Bordeaux wines 
 are admitted at the same duty in any package, the discrimination in 
 their favor amounts to about 10 cents a kilo. Under this discrimina- 
 tion an American exporter who undertook to ship California claret was 
 unable to find a market for his goods. 
 
 The other discrimination is against goods imported from the West 
 Indies, which pay 30 per cent, additional duty. 
 
 THE TARIFF REGULATIONS OF MEXICO. 
 
 Mexico is as exacting in its administration of customs law as Vene- 
 zuela. Many of the foregoing complaints apply with equal force to 
 Mexico. A merchant consigning a shipment of merchandise to Mexico 
 must be so specific that it is almost an impossibdity to get the consular 
 invoice absolutely correct. The invoice is complicated and the fines ex- 
 cessive. I have been unable to obtain any facts about the administra- 
 tion of the Venezuelain law that do not apply w ith equal force to Mexico. 
 Duties are levied by net weight, measure, and legal weight, which sig- 
 nifies liquid weight. An additional duty of 12^ per cent, is levied upon 
 liquors, and one of 2^ jjer cent, on other articles for the support of the 
 hospitals and other public institutions. An evidence of the severity of 
 the fines is found in the case of a shipment of several packages of mer- 
 chandise to Vera Cruz. All but one package of this lot passed through 
 as correct, although the weights appeared on the invoice in American 
 pounds. The one package, however, was held because the weight was 
 not enumerated in kilos, or Spanish weight, and the merchant was 
 fined $150 penalty. This case seems also to demonstrate the incapa- 
 bility of the customs officials. 
 
 THE CONDITIONS IN CHILI. 
 
 Chili requires no consular invoices, and so far as the administration 
 of their tariff laws and regulations is concerned is evidently fairly satis- 
 factory. Duties are paid in p«per 38d. pei dollar as a parity of Chilian 
 money being taken as an arbitrary basis. This presents a fluctuating 
 duty, which is burdensome and unreliable. When exchange declines 
 the duties are burdened with a premium to adjust them to the SSd. basis. 
 For example, if exchange goes to 25d. goods taxed at 40 per cent, are 
 assessed the ditierence iu exchange and pay about CO per cent. This 
 is unfair and discouraging to the merchant, and is the principal cause 
 of complaint. 
 
 OBJECTIONABLE RULES IN PERU. 
 
 I'eru is constantly changing its tariff' and customs regulations, and 
 thereby rendering it difficult to comply with the requirements, although 
 the administration of the law is fair and equitable.
 
 THE UNITED STATES AND LATIN AMERICA. 337 
 
 One very objectionable feature in Peru is the scale of heavy lees 
 which must be paid for the certification of invoices. An invoice of 
 $10,000 must pay $25 for a certification, and an invoice for $110 jmys 
 $4, or, in other words, about 4 per cent, of its value. Thus a heavy tax 
 is imposed upon the merchant in addition to the inconvenience to 
 which he is ])ut. The re<i;ulation providing for the imposition of the 
 higher duty in case of any question is also enforced in Peru. Under 
 this provision a shipment of cheap glass-lamp founts was ordered from 
 New York. As glass paid a lower duty than brass, the manufacturer 
 was directed to remove the brass collars which are attached and ship 
 them se])arately. Through some oversight this order was misunder- 
 stood and the lamps were shipped with the collars attached. The cus- 
 tom authorities of Peru at once levied duty upon the entire shipment 
 at the rate specified for brass, as though the goods were composed of 
 that metal, and the manufacturer was compelled to lose $14 on the 
 shiprhent. 
 
 Another imiwrtaut feature in their regulations is the compulsory dec- 
 laration of the weight, in kilos, of goods, such as lumber, staves, etc., 
 which, however, do not i)ay duty according to such declaration of weight, 
 but according to cubic measure. It is extremely difficult, if not imi^ossi- 
 ble, to declare the correct weight on such goods, becauseof the variation in 
 size, while such declaration is rendered hazardous because of the double- 
 duty tine which is likely to be imposed for false weights, particularly 
 as there is no allowance for shrinkage or decrease. With these few but 
 imi)ortant disadvantages removed, merchants would find no fault with 
 Peru. 
 
 THE TARIFF OF COLOMBIA. 
 
 The tariff of the United States of Colombia is divided into fifteen 
 classes, and an exporter is required to classify the goods in his invoice. 
 Conditions are such, because of the different terms api)lied to goods, 
 that it is almost an impossibility for the ordinary merchant or manu- 
 facturer to do this, unless he has had a practical business experience in 
 Colombia. While some of the embarrassments to shippers in other 
 South and Central American countries are experienced in Colombia, 
 there is a better opportunity for the merchant to secure justice. There 
 is a tribuiral which sits as a court of apj)eals on customs matters where 
 the aggrieved merchant can go with the knowledge that the decisions 
 are as a rule just and equitable. The merchants of the several other 
 South and Central American countries are beginning to realize the im- 
 portance of this body. 
 
 This, I believe, cov'ers all the independent governments of Central 
 and South America. In most of their tariff laws and regulations are 
 modern institutions. Many, or most of them, were formerly free-trade 
 countries, and when their tariff laws were enacted the idea uppermost 
 in their minds was to prevent smuggling. The merchant at home and 
 the foreigner were presumed to be in league to circumvent the goveru- 
 S, Bx. 54 22
 
 338 TRADE AND TKANSPOKTATION BETWEEN 
 
 luent, and so laws were drawn and regulations adopted wliich have 
 become obstructive and burdensome to the honest merchant. In many 
 instances these laws have been drafted by men from the interior of the 
 country, who know little or nothing of the practical requirements of 
 foreign commerce, and whose great aim was to procure as much revenue 
 as possible and prevent fraud. No doubt exists that much precaution 
 is necessary, because of the well-known eflorts on the part of their native 
 merchants and of foreigners to evade the laws. The unanimous senti- 
 ment of all men who do business with these countries, the most of whom 
 are natives of Central or South America, is that a uniform system of 
 customs regulations in the several governments is the only eflficient 
 remedy for the evils that now exist. 
 
 Respectfully submitted. 
 
 Wm. F. McConnell. 
 
 William E. Curtis, 
 
 Special Agent, State Department, Washington, D. G.
 
 THE UNITED STATES AND LATIN AMERICA. 339 
 
 Appendix A. 
 
 FORGED TRADE-MARKS IN SOUTH AMERICA. 
 
 [Morris S. Wise, editor of the Trade-mark Kocord, in New York Indepeudeut.J 
 
 It will be the iiurpose of this coinmuniciition to call attention to some facts of the 
 highest importance to American manufacturers whose wares are sold in the South 
 American markets. 
 
 On the eve of tlie holding of a friendly congress, wherein representatives of the 
 South American countries will meet our own representatives for the discussion of 
 questions affecting the industrial and economic relations which exist between the 
 United States and the nations of the southern portion of our continent, the facts 
 herein briefly presented may prove of some value in securing the correctiou of com- 
 mercial abuscH, which seem to prevail in many of the South American countries; 
 and as these abuses not alone vitally afl'ect the volume of our commercial relations 
 with those localities, but directly injure our American manufacturers, it should re- 
 quire but slight persuasion to invite the serious attention of the American public to 
 the questions hereinafter discussed. 
 
 IMPORTANCE OF TRADE-MARKS. 
 
 The trade-mark is the flag of the manufacturer. 
 
 Even as the ensign of a nation symbolizes all that is good, great, powerful, and 
 ennobling in the people to which it belong, so the trade-mark is the commercial sign- 
 manual, the autographic guaranty of the origin, and thus indirectly of the quality 
 and value of the article to which it is attached ; and it is generally true that in the 
 ratio or proi)ortion of a descending scale of learning and intelligence of the consumers 
 or users of the article bearing the trade-mark is found an ascending or rising scale 
 of importance in the office which such mark or symbol is required to perform. The 
 application of this proposition to the ordinary purchasers of American goods in South 
 American markets is self-evident in its very statement. 
 
 It will also be conceded that in every market in the civilized world the question of 
 price or cost enters very largely into the matter of consumption, most especially in 
 all markets wherein competition is found. 
 
 It may also be pertinently stated that it has been long urged by a large number of 
 American jiolitical economists that many internal causes exist in this country to pre- 
 vent our obtaining that large share of the South American trade, which by natural 
 right should come to us. We will in this article avoid the Scylla and Charybdis of 
 Free Trade and Protection, and prove that the reason of our lack of South American 
 patronage must to a large extent be due to external causes. In other words, the fault 
 ia not that of the American manufacturer, but is owing to the unfair, unscrupulous, 
 and dishonest competition suflered by our manufacturers in the markets of South 
 America. 
 
 THE TRADE-MARK PIRATE LN GERMANY. 
 
 It is somewhat of a harsh arraignment to make, but the evidence at hand seems to 
 justify the assertion that the great trade-mark pirate who commits the most injurious 
 depredations upon our commerce in South America, is our good friend the German. 
 Austria and Belgium help him along, and even the honest John Bull will occasionally 
 send out a privateer; but tire damning fact seems to be proven beyond perad venture 
 that the German is the most skillful adept in the great modern art of imitating trade- 
 marks. Not only in southern climes has he plied his craft, but he has so often stabbed 
 John Bull in the very home of the latter that John jjassed his celebrated Merchandise
 
 VAO TKAliK AND 'l'KA.NSl'( »1MA'1 lO.N I'-KTWEEN 
 
 Marks act, as we vorily believe, for the iiioie especial benefit of his Teutonic ally, 
 whose luetlunls were far from being tonic in any known connnercial sense of the word. 
 
 In February, li^ST, two deputations from ylieftield, England, waited ou the Board 
 of Trade at London, and demanded stringent protective legislation agaiustthe frauds 
 the Shetlield cutlers bad been conjpidled to suffer for a long time. They declare that 
 Solingen roods were being imported into England from Germany marked "steel" 
 and "cast-steel," which were run metal, or in other words a "steal," but not true 
 BteeL 
 
 It was proven that German maunfacturers had had the boldness of making " Rogers 
 catlerj%" Sheffield mark, for the American, South American, and East Indian trade. 
 The celebrated English "Cubtis" and "Marvey" was being counterfeited under the 
 close marks of "Curtis and Harvey." 
 
 The Loudon Times in August, 1887, called attention to these facts and showed how 
 many lines of English trade suffered from this unfair German competition. 
 
 Having illustrated the penchant of the German to cruise in forbidden waters close 
 at home, we will submit the official evidence furnished by some of our consuls sta- 
 tioned at South American points, which goes far to sustain the broad chaigo herein- 
 before made. 
 
 FRAUDS PRACTICED IN SALVADOR. 
 
 In the report made in 1887, to our Dejjartment of State, Consul de Prere, at Sau 
 Salvador, states substantially as follows: 
 
 "Products of American toil, skill, and industry are supplanted in Salvador, aiul it 
 is supposed everywhere in Central America, by base unitatious. Iron viachvlcn are 
 substituted for those of steel as manufactured in New York and Connecticut. The 
 trade-marks of American artisans are stamped or imprinted on the worthless German 
 implements, and at least 50,000 machetes are annually sold in Sau Salvador alone, at 
 the average price of $15.50 ajjiece. 
 
 "American sheetings, muslins, and calicoes are driven out of the Central American 
 nuirkets by goods bearing the brands and trade marks of the best American mills. 
 These worthless German goods are made of East India and Egyptian cheap, short 
 staple cotton, and are utterly valueless. Perhaps the poorest beverage I ever im- 
 bibed was German claret, sold here and bearing the trade-mark of the best wiue- 
 grower of California. Beautiful bottles bearing on their exteriors pretty labels of 
 the great beer distilleries of St. Louis, Philadelphia, and Milwaukee are full of foul 
 decoctions brewed in Germany. Perhaps the deadliest of all these beverages is the 
 'Kentucky wliisky,' so labeled, but distilled in Germany. I have seen Colts and 
 Kemington repeaters sold here tiiat wore never in the United States. I was told that 
 these were products of that forgotten ' IJirmingham,' of England, but these illilerate, 
 untroubled natives demand the cheapest goods. Cast-iron sewing-machines, axes, 
 and beverages are sujjplied l>y Germany." 
 
 This eviilence, tinged though it is by a slight vein of what a celebrated American 
 humorist would term " sarcasm," is neverthelesss straight to the point. 
 
 It was confirmed to me jiersonally by a geutlemau whom I met in London last 
 Bunnner, and who has charge of the affairs of a large English comi)any in Central 
 America. He was an Englishman, and bewailed the fact that the Germans, with 
 their cheap imitation goods, were driving good, honest, British goods out of the Cen- 
 tral American market. As a patriotic American I mentally exclaimed at the tiuus, 
 " A plague on both your houses." 
 
 A rUOIKST FROM FRANCE. 
 
 To show the dominant spirit of Germany in the matter of trade-marks, the action 
 of the Chamber of Commerce of Rouen and St. Quentin lodged with the French 
 minister of commerce issigiiifi(-ant.
 
 THE UNITED STATES AND LATIN AMERICA. 341 
 
 The chamber protested against the action of the International Tradf-niark Con- 
 ference held at Rome, in April, 18H6, on the ground that the preponderating iiitlii.-nce 
 of Germany had secured the adoption of a paragraph providing that "the intention 
 shall not be considered fraudulent when it shall bo proved that the name atiixed on 
 imported products is placed there with the consent of the manufacturer concerned." 
 The chamber contended that this clause wonld enable a German firm having in 
 France a more or less fictitious partner to introduce German goods into the Frencli 
 market under a French marli and as of French production. 
 
 So England ia not alone in her complaints against these practices. 
 
 TRADE-MARK FORGERIES IN BRAZIL. 
 
 In a recent report made to our State Department by our consul, L. G. Bennington, at 
 Rio Grande do Sul, Brazil, a long chapter is devoted to an examination of the practice 
 becoming quite prevalent in Brazil and elsewhere in South America of falsifying the 
 trade- marks of certain well-known and poi>iilar articles of foreign manufacture. 
 
 Our consul says : 
 
 "The trade-mark Indian head of a certain brown cotton is extensively imitated. 
 I am informed by a thoroughly reliable English merchant of this city that a certain 
 dealer in Pelotas has a stencil plate made the exact imitation of the genuine Indian 
 head, with which he puts the mark of any grade of brown cotton he sees proper, or 
 that suits the purpose of his trade, no difference where the cotton was manufactured. 
 This is not only done in Pelotas, but elsewhere in the province. 
 
 " When I was in Porto Alegre I came upon a small article of American manufacture, 
 which is widely and favorably known, not only in the United States, but in foreign 
 markets, especially here, called Mason's shoe-blacking. This article is so closely im- 
 itated by the label on the lid of the box as to amount to a complete deception, unless 
 a buyer was very well acquainted with the genuine article." 
 
 On the sale of American manufactures, the consul continues as follows: 
 
 " The chief of American goods sold in Porto Alegre are kerosene oil, flour, Collin's 
 axes, and some stoves for cooking purposes. It is provided by law that each city 
 may levy a tax equal to $250 on each commercial traveler who sells goods by sample. 
 This is not only an unwise and obstructive policy for these people to follow, but re- 
 sults in a complete evasion of the law by the salesman sending his samples from city 
 to city, addressed to some merchant, who takes charge of them, has them opened in 
 Ms place of business, and for the time the commercial traveler is supposed to be in 
 the employ of the merchant as a clerk. English, German, and Portuguese houses do 
 the business very largely of the province, and, of course, push the goods made in 
 their respective countries to the very best of their ability." 
 
 CONCLUSION. 
 
 Enough has been shown in the foregoing brief r^mim^ of this most important sub- 
 ject to warrant at least the following suggestions, namely : 
 
 First. The matter of the protection of the marks of commerce against piracy can 
 not be too strongly brought to the attention of the coming Congress. 
 
 Second. The subject herein treated deserves the fullest investigation, and our State 
 Department should instruct every American consul stationed in South America to 
 investigate carefully the alleged counterfeiting of American marks and report thereon. 
 These statistics will be found valuable. 
 
 TJiird. If these official reports shall establish the fact that manufacturers of Ger 
 many or of other countries are engaged in a systematic and wholesale imitation of 
 American trade-marks in such foreign countries, our Government should certainly 
 act promptly for the protection of our American manufacturers, by requesting all 
 foreign governments, either where the false goods are made, or where they are offered 
 for sale, to suppress such illicit traffic.
 
 342 TRADE AND TRANSPORTATION BETWEEN. 
 
 Tlio English inercliandiBe marlvH act, which ishoing honestly enforced by the 
 English Government, has almost completely suppressed such piracies in Great Brit- 
 ain ; and what the latter country can do for the cause of commercial honesty, other 
 countries can do and ought to do. 
 
 The subject is one of paramount importance to nearly every commercial interest in 
 our country, and with the view of directing attention thereto, this communication 
 has been pr©pare<l, and it will well serve its purpose if it tends to arouse our American 
 uanufacturers from their apparent torpor and seeming indifference to their own best 
 interests.
 
 VII. 
 
 THE PLANT STEAM-SHIP LINE. 
 
 New York, January 14, 1890. 
 
 Dear Sir: In reading the first edition of the publication entitled 
 "Trade and Transportation between the United States and Spanish 
 America, by William Eleroy Curtis," it seemed to me that you had not 
 given the Plant Steam-ship Line the favorable consideration to which 
 it is entitled. You will remember that in a recent conversation had 
 with you at the banquet given in the city of New Haven to the dele- 
 gates of the International American Conference, I called your attention 
 to the matter and suggested that I would write you on the subject. 
 
 I therefore beg leave to submit for your information a brief history 
 of— 
 
 THE TAMPA, KEY WEST AND HAVANA MAIL ROUTE. 
 
 Key West, if not the first, certainly the second city, of Florida in 
 population and business importance, for very many years had an in- 
 frequent, slow, uncertain, and expensive mail service. The cost and 
 manner of supplying this office from 1870 to 1886, each year inclusive, 
 is shown by the following statement, obtained from official sources: 
 
 1870.— New Orleans to Key West, one trip a week $67, GOO. 00 
 
 1871.— New Orleans to Key West, one trip a week 76,000.00 
 
 New York to Key West, one trip a week 26,000.00 
 
 1872.— New York to Key West, one trip a week 31, 200. 00 
 
 New Orleans to Key West, one trip a week 76, 000. 00 
 
 1873.— New Orleans to Key West, one trip a week 70,000.00 
 
 1874.— New York to Key West, one trip a week 31,200.00 
 
 Key West to Tampa, twice a month 7,475.00 
 
 187.').— New York to Key West, one trip a week 5,200.00 
 
 Cedar Keys to Key West, one trip a week 18, 000. 00 
 
 1876. — Now York to Galveston, C. H. Mallory »& Co., one trip a week, 
 
 stopping at Key West 10,400.00 
 
 Cedar Keys to Key West, James McKay, one trip a week 18, 000. 00 
 
 1877.— Cedar Keys to Key West, N. O. F. & H. S. S. Co., one trip a week. 18, 000. 00 
 
 New Orleans to Key West, same company, one trip a week 5,200.00 
 
 1878.— Cedar Keys to Key West, N. O. F. «& H. S. S. Co., three trips a 
 
 week .'')2, .500. 00 
 
 1879.— New York to Galveston, C. H. Mallory & Co., 2,036 miles, one trip 
 
 a week, stopping at Key West 10, 400. 00 
 
 Cedar Keys to Key West, N. O. F. & H. S. S. Co., two trips a week. 35, 000. 00 
 
 343
 
 344 TRADE AND TRANSPORTATION BETWEEN 
 
 1880.— New York to Galveston, C. II. Malloiy & Co., 2,0oG mile.s, one trip 
 
 a week, stopping at Key West $10,400.00 
 
 Cedar Keys to Key West, Miller & Henderson, 290 miles, two trips 
 
 a week 32,000.00 
 
 1881. — New York and Galveston, 2,075 miles, $200 per round trip, one 
 
 trip a week, stopping at Key West 10, 400. 00 
 
 Cedar Keys to Key West, John Miller, 298^ miles, two trips a week. 31, 000. 00 
 1882.— New York to Galveston, C. H. Mallory & Co., 2,075 miles, one 
 
 trip per week, $200 per ronnd trip 10, 100. 00 
 
 Cedar Keys to Key West, John Miller, 298^ miles, two trips a week. 31, 000. 00 
 
 1883.— Cedar Keys to Key West, 29^.} miles, .John Miller, two trips a week. 31, 00(». 00 
 
 18S4.— Cedar Keys to Key West, John Miller, two trips a week,298i miles. 31, 000. 00 
 
 1885. — Tampa to Key West, J. D. Emerson, two trips a week, 266 miles. . . 23, (iOO. 00 
 
 1886.— Tampa to Key West, J. D. Emerson, 266 miles, two trips a week. . . 22, 5()5. 74 
 
 The important commercial and social correspondence between the 
 United States and the Island of Cuba was carried in a still more uncer- 
 tain and irregular manner. 
 
 THE FORMER SERVICE. 
 
 The service became particularly unsatisfactory to the public and the 
 Department during the years 1885 and 188G, when the Ke.y West mails 
 were carried from Tampa to Key West two trips a week, and the 
 Havana mails were transported by the steam-ships sailiiiii- between New 
 York and Havana. The steam-boat which carried the mails between 
 Tampa and Key West was slow, and, to make the two voyages per 
 week, could not remain in Key West long enough to allow letters to bo 
 answered and mailed by the return trip. The carriage of the Havana 
 mail by the New York steam-ships did not accommodate the people of 
 the United States. All letters went to New York first, and the nearer 
 any part of the United States was to the Island of Cuba geographically 
 the farther away it was commercially. 
 
 The inferiority of the service rendered it evident that the public in- 
 terests required a radical change in the method of dealing with the 
 subject. This sentiment culminated, during the administration of 
 President Arthur, in the insertion in the act of March 3, 1885, making 
 appropriations for the Post-Office Department, of a provision intended 
 to remedy the evil, by which the Postmaster-General was authorized to 
 contract " for inland and foreign steam-boat mail service, when it can 
 be combined in one route, where the foreign office or offices are not more 
 than two hundred miles distant from the domestic office on the same 
 terms and conditions as inland steam-boat service and pay for the same 
 out of the appropriation for inland steam-boat service." 
 
 About the time this act was passed, being informed that Tampn, 
 Fla., was about to be connected by rail with all the principal trade 
 centers of the United States, it was decided by myself and associates 
 in the Plant Investment Comi)any (a corporation created under the 
 laws of Connecticut and controlling a jxntion of the railroads leading
 
 THE UNITED STAPES AND LATIN AMKUFCA. 345 
 
 from tlio Eastern States to tlie Gnlf of Mexico) to build, upon the best 
 reco<;uize(l priucii)lesof marine sanitation, two fast first-class passenjjer 
 steara-sliips to ply between Tampa, Key West, and Havana, and subse- 
 quently the MiiHcotte and Olivette were constructed and put in commis- 
 sion under the name of the Plant Steamship Line. 
 
 CONFERENCE WITH THE POSTMASTER- GENERAL. 
 
 When the Post-Offico Department advertised for proposals to carry 
 the mails from Tampa to Key West and Havana and return, under 
 the provisions of the act referred to, I put in a bid, find for what hap- 
 pened afterwards I will quote from the reports of Mr. Vilas, tlie Post- 
 master-General, and Mr. Knott, the Second Assistant. Mr. Vilas said: 
 
 The act of March 3, 1885, authorized a contract for combined inland and foreign 
 steam-hoat mail service in one route, when not more than 200 miles intervened 
 between ours and the foreign office, upon the same terms and chargeable on the same 
 appropriation as a contract for inland steam-boat service. If the statute can be made 
 applicable to any other, it was without doubt designed wholly for the Gulf route be- 
 tween the coast of Florida and the island of Cuba. Pursuant to its purpose an at- 
 tempt was made during the last year to negotiate such a contract, and proposals 
 were duly advertised for. Two only were returned for service between Tampa and 
 Havana, both tendering a semi-weekly service, one for $100,000 a year, the other 
 for |i6(),000. The price was deemed excessive, and both proff'ora were declined. 
 
 The purpose of the Congress, further manifested during the last session, and the 
 desirability in every aspect, that a highly efficient mail service should be established 
 with Cuba in connection with our Atlantic coast-line from New England and New 
 York, induced a renewal of negotiation, and resulted in a contract for service between 
 Tampa, Key West, and Havana by the new steamer Mascotte, and a consort of equal 
 excellence from August 1, 1886, to June 30, 1887, to be rendered three times a week 
 between November 1 and April 30, and twice a week during the residue of the year, 
 on schedules to be fixed by the Department, carrying all mails both ways for $54,450. 
 This service covers and dispenses with that before mjiintaiued between Tampa and 
 Key West, at an annual cost of $22,565.74 ; performs our foreign mail carriage to Cuba 
 and Porto Rico, which, computed in the foreign mails office at sea and inland post- 
 age on the quantity estimated by the weights of 1885 and ordinary increase, amounts 
 to $24,159.07, and also the carriage of the open and closed mails of European countries 
 to Cuba, for which we receive now about $3,500. 
 
 In addition, it is anticipated that arrangements will bo made to transport the 
 Cuban mails to this country, and to some extent their European mails, and thus add 
 a substantial sum to the receipts of this route. Performance of this trip each way 
 in twenty-live hours is stipulated, and the time between New York and Cuba is 
 already reduced from the four and one-half days required by the sea voyage to throe 
 days by this service, besides a greater expedition for all mail originating in the South ; 
 and it is confidently expected that within no long period the railroad time will be so 
 accelerated between Washington and Tampa that but sixty hours will separate 
 Havana and New York. So soon as such celerity shall be acquired, in addition to 
 the regularity and security of the new service, it must command the transportation 
 of all mails both ways, and prove not only of high value to business correspondence, 
 but perhaps directly remunerative. Peforo bringing this negotiation to a conclusion, 
 the two lines of steamships wiiich ply weekly between New York and Havana, were 
 solicited to Tindertake the carriage of our outward mails to the latter port, but refused 
 it at any leas price than $.500 ])(a- trip, leaving the Department little choice.
 
 346 TRADE AND TRANSPORTATION BETWEEN 
 
 The arran2;f''iieiits now made are oxperinicntal, limitofl to a short period, and snb- 
 mitted witli particularity of detail, in order that, with an easy view of all the cir- 
 cunjstances, the Congress may readily provide such other or further directions as 
 shall be deemed most expedient. 
 
 Mr. Knott said : 
 
 Under and in pursuance of the power conferred by the act of March 3, 1885, this 
 Department issued on the 6th of October, 1885, proposals for carrying the mails of 
 the United States, and such foreign mails as might bo ordered, in safe and suitable 
 steamships, from Tampa, by Key West, Fla., to Havana, Cuba, twice a week and 
 back, from January 1, 1886, to June 30, 1888, on a schedule of twenty-five hours for 
 the outward trip and not exceeding twenty-seven hours for the return trip. Under 
 this advertisement two proposals only were submitted, but the amounts of the bids 
 were deemed too high, and were declined by the Postmaster-General. 
 
 The commercial intercourse between the United States and Cuba, and the vexations 
 delays to which postal service between that island and the United States were subjected 
 by reason of the inadequate character of the vessels engaged in its performance, in- 
 duced the Postmaster-Geueral, in July last, to contract with the owners of the steamer 
 Mascotte and her consort for the establishment of a line of postal communication be- 
 tween Tampa, via Key West, to Havana, and return, beginning August 1, 1886, and 
 terminating on the 30th of June, 1887, on schedules satisfactory to the Postmaster- 
 General. By the schedules ordered under this contract this service is to be performed, 
 between Tampa, via Key West, to Havana, twice a week, from August 1, 1886, to 
 November 1, 1886, and three times a week, from November 1, 1886, to May 1, 1887, 
 and twice a week for the remainder of the contract term, with a running time of 
 twenty-five hours, and is to be performed in close connection with the existing fast 
 mail service from New York to Jacksonville and back, which fast mail service has, 
 by recent legislation of Congress and by orders of the Postmaster-General, been ex- 
 tended to Tampa to make prompt connection with this new line of inland and foreign 
 postal communication. 
 
 The establishment of this new line, furnishing, as it does, greatly increased facili- 
 ties, will, it is believed, have a very beneficial effect upon commercial intercourse 
 between this country and the island of Cuba. 
 
 Heretofore the mails from any part of the United States to Cuba had first to be 
 transported to New York and thence by steamship to Havana. This method entailed 
 great delay in the transmission of intelligence. Through the agency of the fast lino 
 running from New York to Tampa the mails from any point in the United States can 
 be concentrated on it and carried to Tampa, whence they will bo dispatched via Key 
 West to Cuba. 
 
 THE ACTION OF CONGRESS. 
 
 As Mr. Vilas sngj]^ested, Conj?rcss did take up the subject, and in tlie 
 reported debates in the Congressional Record, complimentary mention 
 by members of both houses and both political parties is made of the 
 route. The portion of the act of March 3, 1885, already quoted, was re- 
 enacted, and the port of Tampa xs^as made a port of entry and a customs 
 collection district. A second contract was also made with me for car- 
 rying these mails for one year from July 1, 1887, to June 30, 1888, and 
 a third contract from July 1, 1888, to June 30, 1890, the service to l»e 
 three times a week from November 1 to April 30, and twice a week for 
 the residue of each year, for the yearly com])ejisation of $.58,500, to be 
 performed with the steamships ^l/^iscotte and 0/i«6i^«, or ships of equally 
 good character.
 
 THE UNITED STATES AND LATIN AMERICA. 347 
 
 Owing to the prevalence of yellow fever in Florida iind tlie islaiid of 
 Cuba dnrinc: the suiiinier aiid fall of last year, the DepiirtiiuMit excused 
 me fioui uiaking the third trip, and deducted from the $.j8,50() about 
 $450 for each voyage not made, or an amount equal to about $11,700, 
 leaving a net balance of $40,800 for the year, for a semi weekly service 
 not only to Key Vv^est, but to Havana also. 
 
 From the figures already given, it appears that the average annual 
 cost of supplying the Key West post-office alone, for the seventeen 
 years immediately preceding my contract, was $4(5,01 4.11 for an inferior 
 service, and one unsatisfactory to the public and the Department. 
 
 The anticipated arrangements, mentioned by Mr. Vilas, have also 
 been made for the transportation to this country of the Cuban mails; 
 and for the i)ast two years the amounts thus far collected by me as the 
 agentof the United States,and credited on my contract, sum up$8,932.78. 
 
 In addition, the regularity of the service is so well understood in 
 Havana that much of the business mail to and from Europe is specially 
 directed via the United States and Tampa, instead of via the direct 
 and subsidized lines to and from Europe. Under the international 
 postal treaties, the United States collects its pi'oportionate share of 
 the postage on this mail. And, as suggested by Mr. Vilas, the celerity, 
 regularity, and security of this service will soon "command the trans- 
 portation of all the mails both ways, and prove not only of high value 
 to business correspondents, but perhaps directly remunerative." 
 
 I am not yet informed what has been collected by the United States 
 as its share under the treaty; but we now have sufficient data to restate 
 the case upon the figures presented by Mr, Vilas. 
 
 The year prior to my contract a semi-weekly service cost — 
 
 Key West mail $22,505.74 
 
 Foreign mail, Cuba and Porto Kico..... 24,159.07 
 
 Total |!4G,724.81 
 
 Deduct from con tract, viz .5H, 5U0. 00 
 
 Valne of the third trip 11,700.00 
 
 And the semi- weekly service costs 4G, 800.00 
 
 This amount should bo credited with one-half collected from 
 
 Cuban authorities 4,4G(i. 89 
 
 And amount for European mails 3, 500. 00 
 
 7, 9G6. 89 
 
 Total cost :?8, 8^:^.11 
 
 This amount of $3,500 was estimated by Mr. Vilas on the basis of the 
 year 1885, but as indicated from the increased weights of this mail, the 
 amount now received must be much greater. 
 
 The distance from Tampa to Key West is 20(1 miles; from Key West 
 to Havana about 100 miles, making the total distance from Tampa to 
 Havana by this route 3GG miles.
 
 348 TRADE AND TRANSPORTATION r>ET\VEEN 
 
 Whilst for the .year jiast tlie service between Tani[)a, Key West, and 
 Ilavana, and between Hav^ana, Key West, and Tampa, has been but 
 twice a week, it is now tri-weekly, connecting at Tanijta with a daily 
 service to and from all parts of the United States on scht'dules i)re- 
 scribed by the Post-Office Department, but very different from those 
 mentioned in the letter of James E. Ward & Co. 
 
 CORRESPONDENCE WITH THE POSTMASTER-GENERAL. 
 
 April 10, 1889. 
 Sir: Refoniiig to the converKation that our Mr. Ilnghos had with your f^ood self a 
 few (lays ago regarding the West India mail service, we now beg to submit for your 
 consideration a few remarks showing the workings of the present system and reasons 
 why the regular steamers plying between this port and the Island o'f Cuba should be 
 employed by the Government for the conveyance of mails with a fair compensation 
 for the same. We also hand you the itinerary of our line up to the end of May next, 
 it being the intention of our company to continue in like order for the present. 
 Trusting that the matter "will meet with your approval and favorable decision, 
 We are, dear sir, very truly, vours. 
 
 Jamks E. WakI) vV Co. 
 IFon. John Wanamaker, 
 
 Postmaster-General, Washington, D. C. 
 
 ARGUMENT. 
 
 (1) The regular mail route, via Tampa, advertised to be .i daily one between New- 
 York and Havana, has never performed more than three times p<ir week, often only 
 once per week, and for over a year has been only twice per weel<, as may be readily 
 nnderstood by examining the Plant Line schedule of steamers which sail from Tampa, 
 Fla., on Mondays and Thursdays only, the mails intended for these sailings leaving 
 New York on Tuesdays and Saturdays at 9 p. m., and should arrive at Havana on 
 Wednesday and Saturdays in the morning. 
 
 For return of mails the steamers of the Plant Line leave Havana twice per week, 
 on Wednesdays and Saturdays, reaching New York on Sundays and Wednesdays. 
 
 (2) The Ward Line steamers leave New York on Wednesdays and Saturdays, and 
 can deliver the mails on Mondays and Thursdays, the latter often on Wednesdays in 
 the afternoon, and for leturn they leave Havana on Thursdays and Saturdays, reach- 
 ing New York on Mondays and Wednesdays. 
 
 {'.]) It must be assumed that the bulk of mail is a business one, much of it referring 
 to merchandise ship)>ed by the steamers tliat sail from New York, as already explained ; 
 s.ay, papers and shipping documents necessary to make entries at the Cuban custom- 
 house, and the failure to produce which in twenty-four hours after the arrival of the 
 vessel is ])unis]jab]e by the customs regulations by line imposed upon the consignee, 
 and cjiusing delays in the discharge of caj'go and annoying detentions in the move- 
 ments of the ships which have to go to other ports in Cuba and to various Mexican 
 porta. 
 
 If the ship carried these mails shipping documents would be in the hands of con- 
 signees invariably at the same time that the goods reacli Havana, and all lines, 
 delays^ and detentions would be at once avoided. 
 
 (4) Saturday mail. — If a train to Tampa fails to make all connections promptly, the 
 Plant steamer leaves withput the mails, which have to wait at Tampa until the next 
 sailing, three days later, reaching Havana on Saturday in place of Wednesd.'iy, while 
 the steamer leaving New York tlie same day is at Ilavana on Wednesday afternoon. 
 
 TncHiJaij vuiil. — As the steamers leave New Y<U'k on Wednesday, said Tuesday mail 
 can have no reference, or, at all events, but litte, to the cargo then being made up
 
 THE UNITED STATES AND LATIN AMERICA. 349 
 
 in New York for the steauicr wliich leaves tbo following day, ami the mails referriug 
 to such cargo, invoices, and other valuable information are consequently held until 
 Saturday, reaching Havana on Wednesday, against the arrival of the steamer early 
 on Monday, and the only salvation against fines has been and is the sending by New 
 York shippers of a large bulk of mail matter by the steamers which take it at great 
 inconveuience and expense without remuneration whatever, and simply to help the 
 New York Cuban trade. 
 
 (.")) Up-malls. —The Florula route mail leaves Havana on Wednesday, closing at 
 Havana post-office at 11 a. m., and therefore can have no reference to the cargo then 
 being prepared for the regular steamer, which sails on. Thursday evening. Said 
 Wednesday mail reaches Now York on Sunday, and is practically in the bauds of 
 merchants on Monday morning. The steamer that sails Thursday at G p. m. arrives 
 at New York on Monday morning, so that the mails by the steamer, twenty-nine 
 hours later from Havana, are delivered in New York at the same time. 
 
 The next mail leaves Havana on Saturday, reaching New York for delivciy on 
 Wednesday morning at the same time thai; the steamer that leaves Havana Saturday 
 at 6 p. m. 
 
 There is, therefore, nothing gained actually by the up-mail system, via Tampa, 
 and the Havana postmaster, knowing this, makes a mail for each steamer and sends 
 it direct to New York. 
 
 (6) These steamers have been running a number of years with the greatest regu- 
 larity, and at all seasons of the year perform their voyages generally on time, while 
 the Tampa steamers have been withdrawn during the summer months, reilucing the 
 communicatiou to one per week, aui, as wa^ the case last year, the moment that the 
 health authorities of Florida apprehend any danger of yellow fever the railroad con- 
 nections are broken, and the mails are from five to ten days in transit. 
 
 The steamers arriving in New York during the summer deliver their mails always 
 on time, even if the ships are quarantined. » 
 
 (7) Merchants here and vicinity, in their anxiety to avoid fines in Cuba for the non- 
 arrival of their shipping documents, have been in the habit of sending such special 
 mail by the steamers, which was delivered at Havana by messengers, at considerable 
 expense, until the Havana post-office, acting under advice of the United States postal 
 authorities, demanded the delivery at the post-office of all such mail, and notwith- 
 standing that they are covered by the proper stamped envelopes, have been demand- 
 ing and collecting triple postage as a fine, a tax which creates great dissatisfactiou, 
 and is the cause of constant complaint ; the steam-ship line, though entirely innocent 
 in the matter, coming in for considerable of the blame. 
 
 (8) Compensation. — The rates allowed steamers have never been adequate, and this 
 is particularly noticeable in the West India service, because the expense for carrying 
 and delivering vras the same — and we are not sure but what it was greater — as the 
 European mails, being so much larger, naturally produce more in dollars and cents; 
 and, so far as the West India mails were concerned, the Government never made 
 allowance for the expense of the ships which had to send after the mails, carry its 
 deliver it, and, during four months of the year, pay for steam-boats to bring it from 
 quarantine at a heavy expense and always the same, no matter whether there was 
 one or one hundred bags, to say nothing of the responsibility involved. The Post- 
 Office Department is always on the qui vive and holding us responsible for the 
 slightest delay or discrepancy in its delivery. The Government's claim that these 
 American ships were greatly benefited by reason of having mail certificates in West 
 India iiorts, falls to the ground by simply stating that for a period of four years we 
 have been running without them and have not had the slightest ripple in those for- 
 eign waters. « 
 
 June 5, 1889. 
 Dear Sir : As an illustration of the facts pointed out to you in previous corre- 
 spondence, regarding the Havana mails via Tampa, we have now to mention what 
 has just occurred. Owing to interruptions along the line of the railroad south, the
 
 350 TRADE AM) TKANSI'UKTATION BETWEEN 
 
 mails that left llavaua Weduesdaj', May 2'J, at 1 j). ui., did not roach New York until 
 yesterday, Tuesday, June 4, at noon; ■whereas our steamer, Cili/ of Ifusliintilon, 
 whicli left llavaua, Thursday, May 'M, delivered what mails she brought ou Mou- 
 day, Juno 'A, at 5 p. ni. 
 
 Upon orders sent via Tampa doi»onded the freight to be forwarded by our steamer 
 leaving to-morrow, v.hich, in consequence of the delay, is materially reduced, caus- 
 iug us, as carriers, considerable loss, and to the merchants of the Cuba trade much 
 inconvenience, as there will be no departure for Santiago do Cuba and Cieufuegos, 
 until July 5, after to-morrow's ship. 
 Kesiicctfnlly, yours, 
 
 James E. Ward &, Co. 
 Hon. John Waxamaker, 
 
 Postmasttr-G eneral, Washinglon, D. C. 
 
 KEPLY OF MR. PLANT. 
 
 I desire especially to correct the errors iu these letters. Their so- 
 called ''argument" is set forth in numbered paragraphs, and I will 
 consider them iu the same numerical order: 
 
 No. 1. To the allegations therein made, I replj'^ that my contract is 
 for tri-weekly service from November 1 to April 30, and semi-weekly 
 service for the balance of the year. The service is and has been per- 
 formed as directed by the Department, and compensation paid in 
 accordance therewith. The statement that the service has been " often 
 only once per week" is incorrect. During the three years that this 
 service has been performed by tlie Plant Steauj-ship Line, it has never 
 failed to deliver the mails, received daily at Tampa, twice a week in 
 Havana, In two instances the railroad line from New York was ren- 
 dered impassable for some days, once by the great blizzard of 1888, and 
 once by the freshet of 1889, hereinafter alluded to, when the ship was 
 compelled to leave Tampa without the delayed mails, iu order to return 
 from Havana on her schedule. 
 
 The mails by this route do not leave, and have never left. New York 
 on Tuesdays and Saturdays at p. m., but on Wednesdays and yuudays 
 at 4.15 a. m. Returning, the Wednesday mail from Havana reaches 
 New York on Saturday, and the Saturday mail on Tuesday, and not on 
 Sunday and Wednesday. 
 
 A sleeper from New York to Tampa leaves New York at 1) p. m. 
 daily, but the dispatch of Florida and West India mails is seven hours 
 and lifteen minutes later. (■4.15 a. m.) 
 
 No. 2 is a statement of the i)ossible performances of Messrs. Ward & 
 Co.'s own line, with which I have no concern, 
 
 No. 3, while it is a correct assumption that the bulk of the mail to 
 Cuba is on business, it does not follow that the mail service performed 
 by the Plant Steam -ship Line between Tampa, Key West, and Havana 
 relates almost entirely to shipments fron) New York to Havana by the 
 steam-ships of which Ward »S: Co. are agents. 
 
 To the extensive cigar maiuifacturers at Key West the service is so 
 satisfactory that they rely upon the recei^it of orders one day to be
 
 THE UNITED STATES AND LATIN AMERICA, 351 
 
 tilled by the ship Icavinjjf tiic next day lor New York, and, to the per- 
 sonal knowledge of the writer, the Hav^ana merchants consider it a great 
 advantage to have a reliable and regular arrival of the mail from the 
 United States and Europe at G a. m., as it enables them to prepare and 
 pass their papers through the custom house on or before the arrival of 
 their consignments. This is especially true of shipments by the Ward 
 line. 
 
 No. 4. As to what might happen if the Plant steamers left Tampa 
 without the mails it is needless to inquire. The sorvic(> from New York 
 to Tampa is [>erfornjed under special contract for what is known as the 
 West India fast mail. It is a continuous service, leaving New York 
 daily at 4.15 a. m. and arriving at Tampa the following evening. The 
 steamer has never left Tampa but on two occasions without the whole 
 of the New York mails, as stated in reply to No. 1, and never without 
 carrying all the mails, for Key West and Havaiia, accumulated at 
 Tampa, by the daily arrivals from all i)arts of the country and deliv- 
 ered by the postal authorities. 
 
 No. 5. The same is true as to the return mails from Havana and Key 
 West to Tampa. The Wednesday mail from Havana arrives at New 
 York on Saturday and not on Sunday. The Saturday mail arrives at 
 New York on Tuesday and not on Wednesday. 
 
 This schedule is not fixed by the Plant Steamship Line, but by the 
 United States PostOffice Department in the interest of the public. 
 By it letters can be written and mailed not only in New York City, but 
 in almost any part of New England, upon the da^^ of departure of the 
 Ward steamer after the hour of closing the mail for the steamer, bo 
 forwarded by rail to Tampa, thence by the Plant Steamship Line to 
 Havana, and be delivered, nine times out of ten, at least twenty hours 
 before the arrival of the Ward ship. 
 
 The return mail, too, is not only delivered in New York, but in Boston 
 .and other cities farther north than New York before the arriv^al of the 
 Wardship leaving Havana on the same day. As to the places south 
 and west of New York, and nearer by rail to Tampa, the advantages of 
 the present route are so glaringly api)arent, that it is only necessary to 
 say that all letters to and from Havana do not now go first to New York 
 and thence to destination. Messrs. Ward & Co., by changing their sail- 
 ing days, or by inducing the De])artment to alter the ])resent schedule, 
 might better accommodate themselves ; but their eftbrt to have the Hav- 
 ana mails sent by their steamers, rather than by the Plant Steamshii) 
 Line, is not in the interestof the public, nor of close commercial relations 
 with the West Indies and the United States. 
 
 No. G. The mails between New Y'ork and Havana were carried with 
 regularity and on schedule, via Tampa, during the yellow fever epi- 
 demic of 1S88. 
 
 No. 7. The regulations of the Havana i)ost-office are beyond the 
 control of the management of the Plant Steamship Line,
 
 352 TRADE AXD TRANSPORTATION BETWEEN 
 
 No. 8. The same is true as to the reguhitious of the Uiiiteil States 
 Post-Office Departnieut. 
 
 Ill coutinnatiou of the strictures upon the mail service by the Plaut 
 Steamship Line, Messrs. Ward & Co. follow up their letter of April 
 1, 1880, by another dated June 5, 1889, calling attention tliat, the mail 
 leaviug Havana Wednesday, May 29, at 1 p. m., did not reach New 
 York until Tuesday, June 4, while their steamer, which left Havana on 
 Thursday, May 30, arrived at New York at 5 p. m., on Monday, June 3. 
 
 Assuming this statement to be correct, Messrs. Ward & Co. admit 
 that this delay was not due to any irregularity between Havana and 
 Tampa, but to interruptions along the line of road. In this they are 
 correct, for it was the same storm which led to the terrible calamity at 
 Johnstown, which carried away the Long Bridge at Washington, and 
 led to the only delay during the year of the regular delivery of the 
 north-bound mail. 
 
 Are Messrs. Ward «& Co. willing to apply the same test to their own 
 service? Is it proof against the assaults of the elements? If it be, 
 how was it that the ship leaving Havana on Thursday, September 5, 
 did not arrive at New York until tlie 13th ; that the ship leaving Ha- 
 vana on the 7th, did not arrive at New York until the 14th ; that the 
 ship leaving Havana on October 5, did not arrive at New York until 
 the 11th ? And this is their it-cord for only the past two months. 
 
 Messrs. Ward & Co.'s views as to the advantage to their business of 
 having all the mails from the United States to Cuba carried by their 
 ships may be all right from their standpoint, but they lose sight of the 
 tact that Boston, Philadelphia, Baltimore, Washington, Cliarleston, 
 Savannah, Jacksonville, Cincinnati, Chicago, St. Louis, New Orleans, 
 and other cities in the United States, and indeed the entire Northwest, 
 West, and Southwest, have a large business correspondence with Cuba 
 and the West Indies, which is greatly facilitated by the mail service 
 through Tampa ; also that Key West, the tropical outpost of the * 
 United States, with a valuable trade with Florida and Cuba, is alto- 
 gether dependent on the same service. 
 
 THE PLANT STEAMSHIP LINE. 
 
 The first ship of this line, the Mascotte, was the first American 
 ship in which tlie principle of triple expansion in marine engines was 
 used for commercial purposes. 
 
 The Olivette, the second ship of this line, is, up to this time, proba- 
 bly the fastest commercial ship, wliich carries the flag of the Unite«l 
 States into a foreign port. These ships established the principle of 
 building shi[)s of high si)eed on a light drauglit, and immediately ui)on 
 the results shown by them there has followed the construction, in 
 American ship-yards, of other shii)s of similar design, for the commerce 
 of ports not admitting vessels of heavy draught. 
 
 There is another service that the line has performed for science and
 
 THE UNITED STATES AND LATIN AMERICA. 353 
 
 humanity, which should not be forgotten. The ships above referred to 
 were coustruoted in accordance with the prin(;ij)les of modern maritime 
 sanitation, and the results which have followed u])on four years of com- 
 munication between Havana and Tampa by this line are indorsed by 
 the most distinjijuished authorities on the subject, as convincin<,' evidence 
 of the practicability of maintaining in safety communication with an 
 infected port. 
 
 The equipment provided for this ad ^antageous service to the public 
 is not now employed with such profit to the owners as would justify 
 the expenditure but for their faith in the permanency and development 
 of the commercial relations of the United States and their belief that 
 the future will bring compensation for the initiatory labors of the 
 present. 
 
 Already the beneficial efl'ect of the establishment of this mail route 
 is felt; it has opened up a trade between the Gulf coast of Florida and 
 Havana, which has in three years created a prosperous industry at 
 Tampa, in the making of cigars from Havana tobacco; it has raised the 
 duties collecterl at that y)ort from nothing in 1884 to $180,000 in 1888, 
 on imports valued at $800,000. The imports at Key West, mostly from 
 Havana, amounted during the past twelve months to about $1,250,000. 
 
 Believing that anything that can be said on the subject will be gladly 
 received by you, I desire to say a word or two in regard to the 
 
 TRANSPORTATION OF OUR FOREIGN MAILS. 
 
 Long observation and experience have made strong the impression 
 that the interests of the people of the United States are accorded 
 greater respect and are really better advanced in foreign ports through 
 their merchant marine than they can be in any other way. It is, more- 
 over, in my opinion, greatly to the interest of every producer and man- 
 ufacturer in the country that the most expeditious and direct mail serv- 
 ice be maintained between our principal sea-ports and those of foreign 
 nations with which there would be reciprocities of trade. 
 
 I think that the United States Government should make sufficient 
 appropriations and authorize the Postmaster-General to make contracts 
 for the transportation of the mails of the United States between it 
 and foreign countries, in such manner and for such compensation as 
 would enable him to secure the best attainable service in ships of United 
 States construction, and of such capacity and speed as will be most 
 useful to the United States in time of war. Doubtless the best method 
 of fixing compensation for the service rendered would be upon the 
 basis of distance the mails are carried at minimum speed, with a grad- 
 uated scale prescribing increased pay for increased speed and regular- 
 ity of schedule. In making appropriation for this service it should not 
 be forgotten that the purposes of the Post-Office Department are to 
 facilitate correspondence, both social and commercial, to benefit the 
 foreign trade of its people as well as the domestic, and that expenditure 
 S. Ex. 54 23
 
 354 TRADE AND TRANSPORTATION BETWEEN 
 
 for service by steamers of great capacity and draught is as justifiable as 
 proper compensatiou to one of small capacity and light draught in the 
 waters of the United States. 
 
 The domestic mails of the United States are carried for the social and 
 commercial use of its people, and without them tliere would be no busi- 
 ness. It is as important for trade and commerce with our neighbors 
 that we should have as efficient foreign mail service as domestic, and 
 without it we can not have an important trade with countries with which 
 closer trade relations are desired. If we would have foreign trade Me 
 must supply mail facilities. 
 
 I believe that the interests of the country require that American built 
 and manned ships engaged in carrying the mail under contract with 
 the Post-Office Department should be relieved from many of the bur- 
 dens that are now imposed upon the ships of the United States in its 
 own ports. For instance, ships that are required by the laws of the 
 United States to carry a licensed pilot of the United States should not 
 be required to take on and pay a pilot to enter a harbor when there is 
 no necessity for his services. 
 
 Now a word for 
 
 TAMPA, FLA. 
 
 The Gulf of Mexico is really a vast inland sea, its waters extending 
 for some fifteen hundred miles along five great States of the Union, 
 and also bounding Central American countries for a like distance. The 
 United States Government has long desired a deep harbor on this water, 
 has given great attention and scientific skill to the subject, expended 
 large sums of money to accomplish that object, and is now engaged in 
 extensive harbor improvements at many places, the purpose being, of 
 course, to facilitate trade with foreign countries. 
 
 In Tampa Bay, on the Gulf of Mexico, located well south on the pe- 
 ninsula of Florida and very easy of access, is a fine harbor, well shel- 
 tered and protected by islands, with an expanse of deep water sulti(Ment 
 to afford anchorage for the commerce of the United States, which has 
 recently become convenient through railroad connection with wharves, 
 at which vessels drawing 25 to 30 feet of water may safely lie. The 
 extension of the railway system to Port Tampa, 10 miles below Tampa, 
 brings the trains to a depth of water of 25 to 30 feet, where these large 
 and substantial wharves, recentlj' erected at great expense, offer every 
 facility for the convenience of commerce. The bay is admirably located 
 for defense in case of war, and with the adeciuate railroad facilities 
 diverging from Tampa, is the most convenient and safe rendezvous for 
 shipping on the eastern shore of the Gulf of Mexico. 
 
 The commerce of the port of Tampa is rapidly increasing, as shown 
 by the customs receipts. Besides the Plant Steam-ship Line between 
 Tampa, Key West, and Havana, there is now a regular line of steamers 
 between Tampa and Mobile, and an experimental one between Tampa 
 and Honduras. It is hoped that a steam-ship line will be established at
 
 THE UNITED STATES AND LATIN AMERICA 355 
 
 an early day between this port aud Aspinwall, affording the most ex- 
 peditious connection ever known between all ])arts of the United States 
 aud Central America and the west aud a portion of the north coast of 
 South America. 
 
 It is not unreasonable to anticipate that the natural growth and ex- 
 pausiou of commerce in the Gulf of Mexico will rapidly advance the 
 port of Tampa iu the scale of importance ; to this add the great results 
 in commercial intercourse that will surely be evolved as the outcome of 
 the intelligent labors of the International Conference, aud Tampa, with 
 its convenient and superior location and great advantages, will doubt- 
 less ere long enter upon the career of commercial importance and pros- 
 perity to which she is undoubtedly entitled. 
 
 I feel assured that, if you will give careful consideration to what is 
 here set forth, you will be convinced that the facts connected with the 
 establishment of fast mail service between Tampa, Key West, and 
 Havana, will be of value to you in your further elucidations of the im- 
 portance to the United States of the encouragement of commerce with 
 foreign countries under its own flag. 
 
 In conclusion, permit me to call your attention to the annexed 
 memorial from the banks, merchants, and importers of Havana, in which 
 they express their views as to the workings of the foreign mail service 
 to and from Havana, as performed by the Plant Steam-ship Line. 
 Very respectfully, 
 
 H. B. Plant. 
 
 Hon. William -Eleroy Curtis, 
 
 Washington, D. C.
 
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 LOS ANGELES, CAur borrowed. 
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