It would seem that, by cautious and proper efforts, our trade with Austria-Hungary might be largely increased, although the reports from our consuls in that country, in answer to the trade circular, are not very explicit or satisfactory on this point.

Belgium. The special imports of Belgium for the year 1876 amounted to $279,464,000, an increase on the preceding year of $57,127,000, while the special exports, which amounted to $206,124,000, show a decrease from the preceding year of $6,569,000, leaving a balance of trade against the country, in 1876, of $73,440,000.

A noticeable feature in the trade of Belgium, for some years back, has been an increase in imports and a decrease in exports.

The United States consul at Antwerp notes this decrease in exports as the most unfavorable feature of the trade of 1876, as it marks a decline in the export of the staple manufactures of the country, viz, wrought iron, steel, machinery, flax, and hemp, and fabrics of flax and hemp. Various causes are assigned for this decrease, the principal cause being the active and successful competition of the several manufacturing countries, with Belgium, in the world's markets. The distribution of the trade of Belgium with the principal countries was as follows:

The trade between Belgium and the United States for 1876 was largely in our favor. While the exports to the United States show a decrease of 27 per cent. as compared with 1875, and a decrease of 31 per cent. as compared with 1874, the imports from the United States show an encouraging increase from $15,077,000 in 1875 to $21,423,000 in 1876, the largest proportional increase of any of the several countries.

The principal articles of import from the United States showing an increase in 1876, were: grain and flour, petroleum, meat, tobacco, lard, and cotton. Leather and hides show a decrease of nearly $1,000,000 in an import, in 1875, of a little over $2,000,000. As the imports from the United States consist of natural or unmanufactured products, with the exception of leather and some minor miscellaneous articles, it is clear that our manufactures have not yet taken much hold in the Belgian market.

For further particulars on this subject, I refer to the accompanying report from the consul at Antwerp upon the trade and commerce of Belgium, which treats of our manufactures and the best manner of introducing the same in the Belgian market.

The articles of export to the United States which show a marked decrease in 1876 åre: glass, lead, and textile fabrics. The falling off in these articles does not represent any decline in consumption in the United States, but is attributable, it is thought, to our increased manufacture thereof.

The following statement shows the trade between Belgium and the United States, and its relative value to the total trade of that country:

It will be seen by the above statement that the special exports reached their highest figures in 1873, since which year they have steadily declined, while the special imports for 1876 touched the highest point ever attained.

While the decrease in the exports to the United States have kept pace with the decrease in the total exports, the imports from the United States have not responded to the increase in the total imports, those for 1876 being less than the imports for 1873 by over $4,800,000.

Brazil. Official statistics give the imports into Brazil, for the year ending June 30, 1876, as amounting to $94,000,000; an increase on the preceding year of about $2,500,000. The exports for 1876 amounted to $100,000,000, a decrease from the preceding year of over $13,000,000. The distribution of this trade among the principal countries was as follows:

The above statement shows that while the United States purchases nearly one-half of the entire exports of Brazil, that country purchases less than one-thirteenth of its imports from the United States. Great Britain, purchasing not much more than one-half of the amount purchased by the United States, sells to Brazil more than four times the amount purchased from us. France, purchasing less than one-fourth of our purchases, sells more than double the amount of our sales.

The exports to the United States embrace every article of exportation from Brazil-coffee, of course, being the principal article, amounting to over $40,000,000-while the imports from the United States comprise only a few products, viz, flour, $3,870,000; lard, $744,000; kerosene, $500,000; cotton manufactures, $600,000; together with an insignificant list of sundries.

When it is taken into consideration that Brazil imports cotton and other textile manufactures to the value of $25,000,000 from European countries-countries with which our cotton and other manufactures have begun to compete successfully, even in their own markets-it seems highly probable that we may successfully compete with those same coun

tries in a market so favorably situated for commercial intercourse with the United States as is Brazil.

The carelessness, on our part, which has permitted more watchful nations to turn this commerce from our shores to Europe-a carelessness which equally applies to the trade of our sister republics of Central and South America-seems, happily, to be giving place to a keener sense of our duty and our capacity; and this newly aroused interest gives promise of enlarged commercial relations between the United States and Brazil.

For further particulars concerning the trade of Brazil, its railroads, agriculture, industries, and immigration, I refer to the accompanying consular reports from Rio de Janeiro and Bahia.

Central American States.-According to the report of the minister resident of the United States at Guatemala* the commerce of the Central American States during the year 1876 was as follows:

The distribution of this commerce is not given by the minister resident in his report, save that he gives the direct trade between the Central American States and the United States as amounting to $4,678,708, with an estimated indirect trade of $300,000. British official statistics give the imports from Central America into the United Kingdom as $4,542,992 and the exports from the United Kingdom to Central America as $3,590,422, a total trade of $8,133,414, almost double that of the United States. France and Germany follow Great Britain, respectively, in their volumes of trade, the United States taking the fourth position.

Much useful information, as to the best manner of fostering and enlarging our trade with the Central American States, is given in the report referred to above, and your attention is respectfully invited thereto.

Chili. The commerce of Chili for the year 1876 is reported as follows: Imports, $35,291,041, a decrease from 1875 of $2,846,459; exports, $37,771,139, an increase over 1875 of $2,480,098. The distribution of this trade with the principal countries was as follows:

Of the above exports, minerals amounted to over $9,800,000; almost $8,000,000 being copper in bars, and $1,500,000 silver in bars. More

*Published in the appendix to Foreign Relations for 1877.

than $8,100,000 of this mineral export went to Great Britain. The mines of Chili being controlled by European capitalists, the export of mineral is of small commercial profit to the country.

The imports from the United States for 1876 show an increase on the imports of the preceding year of $493,000. This increase was chiefly in cotton and woolen manufactures.

The navigation at the several ports of the republic-entrances and clearances during the year 1876 was as follows:

China. The commerce of China for the year 1876 shows a respectable increase on the preceding year. The total foreign imports amounted to $101,891,000, against a total of $98,365,000 for 1875; the total native exports amounted to $121,276,000, a gain on the preceding year of over $19,000,000. The distribution of this trade among the principal countries was as follows:

The principal articles of foreign import and native export were as follows:

The opposition of opium and tea in the above statement is a commercial exhibit not paralleled by any other nation for suicidal consequences to itself-sending out to all the nations of the earth tea to the

*The greater portion of the imports into China from British Dependencies consists of opium from India.

value of $53,000,000, and receiving, in return, opium to an almost equal amount!

So firmly has the use of this deadly drug taken root in the vitiated appetites of the people, that it now defies eradication. Notwithstanding the severity of the laws passed against its use; notwithstanding the great increase in the production of the native drug, even while the land is filled with decrees prohibiting its cultivation, the import—all from British India-during 1876 exceeds that of any single year since 1867. It is also believed that the amount of opium smuggled into the country fully equals the amount given above, which would give a total introduction of opium to the value of $83,000,000!

In regard to the remainder of the imports, Great Britain monopolizes the greater portion of the imports of cotton and woolen goods, and metals-iron, steel, copper, &c., wrought and unwrought-as well as the principal portion of the miscellaneous importations.

Of the total imports for 1876, opium not included, $60,000,000, the United States supplies a little over $1,000,000.

The great predominance of British over American trade in China is not due to any superiority of British over American manufactures. On the contrary, the consular reports from China to this department, for years back, have borne testimony to the superiority in style, finish, and durability of our cotton manufactures, and to their popularity in the Chinese market. The preponderance of British trade in China is due solely to the persistency and ability with which that trade is pressed upon the country; to the harmonious efforts of British officials and manufacturers in creating avenues to extend British trade and in monopolizing the avenues already open; to the manufacture of goods to suit the tastes or prejudices of the purchasers; and to the seeming indifference of our manufacturers and exporters in regard to the trade of that country. By a reasonable amount of attention, by accommodating the tastes and peculiarities of the people, and by the most upright and honorable dealings, we can obtain like advantages.

The following is an exhibit of the navigation (entrances and clearances, sail and steam) at all the treaty ports for the years 1875 and 1876:

The Chinese shipping shown in the above statement is of the foreign type, owned by native companies and sailing under the Chinese flag. The junks, not included in the above statement, numbered, in 1876, 930, of 68,209 tons.

In 1872 the Chinese flag did not fly over a single vessel of the foreign type: in 1876 it represented a very important share of the tonnage of the treaty ports as shown by the foregoing table.

The Chinese merchants are slowly but surely getting control of the foreign trade of China; they are also securing to themselves the transport trade between the open ports, with the grander object of, eventually, controling the carrying trade between China and foreign countries. Those