Sole and upper leather had a great sale. Brown and black calf were taken immediately they appeared at high prices, and the supply was not sufficient for the demand. On the whole, however, the manufacturers, notwithstanding the rise in prices, did not do a good business, as the tan this year was dear, and the raw leather is always too high in proportion to dressed leather. The following were the prices, generally, for five or six-skinned, strong, well-made articles:

Wild sole leather per quintal, (the thaler at 90 kreutzers, or 60 cents)
Wild sole leather, higher sorts, first-rate goods.
Wild sole leather, inferior quality.

Tame sole leather, heavy goods.

Tame sole leather, lighter.

Cow leather, according to quality.

Neats' leather, country skins, according to quality

Neats' leather, wild skins....

Calf, brown, according to quality.

Calf, black, according to quality.

105 to 120

90 to 104

The total receipts of the Zollverein for import, export, and transit duties in the year 1862, compared with those in 1861, show an increase of 938,462 thalers in favor of 1862, thus: The increase on the import duties amounted to 957.241 thalers, and that on the export duties to 11,732, making in all 968,973 thalers, from which is to be deducted a decrease of 30,511 thalers on the transit duties, leaving a surplus as above of 938,462 thalers, or an increase of about four per cent. on the total receipts, as appears more fully from the annexed table, marked V.

The table marked W exhibits a comparison of some of the principal articles imported and exported in 1861 and 1862. The following remarks may seem to explain the different branches of the receipts.

The gross receipts of import duties after deducting 126,127 thalers for compensations and other necessary expenses, (which, in 1861, were 161,923 thalers,) Amounted in 1861 to.. .24, 754, 995 thalers. .25, 703, 236

1862 to.

Which gives a balance of......

Or about 4 per cent. in favor of 1862.

957, 241 thalers.

With regard to this result, not altogether favorable, of the proportion borne by the receipts of import duty to those of the preceding year, it has been already remarked that, with such ultimate relations as those which during a long period of peace existed between the Old and New World, the ruinous depression the civil war has caused in the United States shows itself not only in its effects on industrial activity, but also on the trade and commerce which sprung from it. These unfavorable circumstances have not, indeed, influenced in the year just passed to the extent that was to be apprehended, since, in trade with such articles as are not immediately dependent on that intercourse, a rise is rather to be expected, and from hence also increased industrial activity, so far as it is not kept back by the sad consequences of the cotton calamity.

As to the increase in the duty on excisable articles in the different states of the Zollverein, it will be seen from the annexed tables, that the greatest increase (10 per cent.) has been in Wurtemburg and Grand Ducal Hesse. In Prussia, Bavaria, Hanover, and Oldenburg, the surplus was less than this percentage; and in Electoral Hesse and Brunswick, the receipts showed only a very modeThe deficiency in receipts was the most considerable in Thuringia (14 per cent.,) and in Luxemburg, (7 per cent.) In Frankfort, Saxony, and

rate excess.

Nassau, the receipts also show a deficit, but not so great, and it is to be remarked that in 1861 there was a considerable increase of receipts in these three States. A review of the articles which paid duty on importation shows that the increase of the receipts has been chiefly caused by the increased demand for raw sugars, for the home boiling houses. The increase of duties also paid on meat, wine in casks and bottles, iron goods, pig-iron, linen, yarn of all kinds, herrings, spices, silk and half silken goods, &c., has not been inconsiderable, although its share in the results has been less important than that of raw sugar. The great activity in sugar refining is due not only to the reduction of the duties on sugar, but to the unfavorable beet crop, and the greater demand caused by it for West India raw sugar at prices so advantageous in comparison with those of beet sugar.

On the increase in duties paid on meat, it may be remarked that the consumption of bacon and grease from the United States has increased in consequence of the cheapness of these articles in comparison with the home prices and the facility of transport by railway.

The increase on wine is to be ascribed partly to the breaking up of credit stock, and partly to the wine merchants having been compelled, notwithstanding the high prices of French wines, to supply their cellars, which they had much exhausted by limiting their stocks the preceding year in the expectation of a reduction in the duty.

The increased importation of pig-iron and iron ware is explained by the impulse given to iron foundries and cylinder works, owing to an increased activity of trade and manufacture, causing a greater demand for the article.

The most important deficiency in import duties has been chiefly on unbleached one and two thread cotton yarn, and on raw coffee; also, though in a less degree, hulled rice, tea, fatted swine and meat from Austria, lean swine, unwrought tobacco leaves, and forged iron. The decline in duty on cotton yarn is to be accounted for by the extremely small demand, these prices having, in consequence of the scarcity of raw cotton, reached a height which made it almost impossible to be procured. A similar reason, unfavorable crops in Brazil, explains the decreased importation of raw coffee. Hulled rice was less imported on account of the good potato crop; swine, from the disease prevailing in Galicia and Bohemia. Respecting the decreased importation of tea, it is alleged that the import dues have much declined, in consequence of the permission to import tea into Russia.

Lastly, we have to notice the decrease on unwrought tobacco leaves, on which it is to be observed that manufacturers made large purchases last year on account of the American war, in order to supply their probable wants; fewer cigars, also being exported to America, there is less demand for unmanufactured leaves at home.

The increase of export duties (11,732 thalers) in the western states of the Zollverein has been caused principally by the increased export of raw sheep wool, and of calamine, while the decrease in the eastern states is to be ascribed to the diminution in exports of raw skins and hides for the manufacture of leather, in which articles there was little business at reduced prices.

The total gross receipts of import and export duty for the first half of the present year, up to July last, amounted to 11,968,348 rix thalers. In the corresponding period the preceding year they amounted to 12,206,202 rix thalers. So that in the current year there is a decrease in the receipts of 57,854 rix thalers, as appears from the annexed table marked W W.

It has been observed generally, with regard to the receipts of the half year just elapsed, that, although it cannot be denied that commerce has been more lively this year than the last, yet circumstances have prevailed which impeded its development, especially, of course, the war in our country and the troubles in neighboring Poland.

Besides this, it is said that, after the reduction of the duties on the Elbe was

made known, the importation of merchandise passing up the river during the month of June was limited to the lowest amount, and that the rise of value in Austrian money has not been favorable to the purchase of goods in Austria.

The most important decrease in duties paid has been on raw sugar, for boiling houses, the importation of which, in the corresponding period of the preceding year, has risen very considerably, also on cotton yarn and cotton goods, and, though in a less degree, on iron ware, forged iron, sirup, silken and woollen goods, lean swine, and some smaller articles. The increase in duty, on the other hand, is principally to be noticed in the imports of wine in bottles and casks, raw coffee, fresh and dried tropical fruits, meat and herrings, in comparison with which the importation of raw materials, pig-iron, spices, hulled rice, coal, tallow, &c., has been of less importance.

The annexed table, marked X, exhibits the quantity of tobacco cultivated in the Zollverein states, with its proceeds. From this it appears that 55,885 acres were planted with tobacco, yielding 354,335 quintals of tobacco in leaves.

The following table exhibits the number of Prussian acres of land cultivated with tobacco in the years 1859, 1860, and 1861 :

Thus showing that the cultivation of tobacco is considerably on the decrease from reasons already stated.

Among the most interesting articles produced in the countries of the Zollverein may be mentioned beet-root, and the substances manufactured from it. I have therefore taken particular pains to collect as much information_on_this subject as possible, and the results are comprehended in the annexed tables, marked Y, Z, and I, II.

The table marked Y exhibits the quantity of beet-root manufactured into sugar and molasses, and the proceeds of duty there on during the years 1840 to 1862. The table marked Z exhibits the receipts of duty on foreign sugar and sirup as well as on beet-root, and the compensations for sugar exported from the Zollverein from 1855 to 1862.

The table marked I exhibits the receipts of the Zollverein for duty on beetroot sugar, and the distribution of them from 1st of September to 31st of December, 1862; and the table marked II the amount of duty on foreign sugar and beet-root sugar in the Zollverein, from 1st of April, 1862 to 30th of March, 1863. According to these tables the duty paid on beet-root during the seven months from September to March, inclusive of the years 1862-'63, 1862-'61, and 1861-'60, was (a) from September to end of December, 1862:

(b) From January to 30th of March, 1863:

1. In Prussia ...

2. In Anhalt-Schwarzburg, &c..

3. In the other states of the Zollverein.

Total.....

Quintals. 10, 007, 557 2,246, 492

1, 844, 744

14, 398, 823

Therefore, from September, 1862, to 30th of March, 1863, 36,138,863 quintals; in the corresponding period of 1862-'61, 31,548,927 quintals; and in the corresponding period of 1861-'60, 28,784,543 quintals.

There appears, then, to be a considerable increase in the cultivation of the beetroot, though it might be still greater, if the produce as well as the system of duty were more proportionally organized. During the season of 1861-'62, there were 31,692,394 quintals of beet-root manufactured and paid duty for by 247 factories, while during the preceding season of 1860-'61, only 29,354,031 quintals and 60 pounds were manufactured and paid duty for by the same number of factories.

The number of the factories thus remains unaltered; but in the last year of working 2,338,362 quintals and 86 pounds more have been manufactured than in the preceding year. In 1857-'58, there were 28,915,133 quintals and 89 pounds manufactured by 249 factories; in 1858-'59, 36,668,557 quintals and 11 pounds by 257 factories; and in 1859-'60, 34,339,317 quintals and 17 pounds. On the 1st of September, 1858, the higher duty of 7 silbergroschen, or 17 cents for every quintal of raw beet, came into force, and from the 1st of September, 1861, a compensation equivalent to the duty was allowed on exported beetsugar.

From the numbers here given it appears that the higher duty introduced had, with an excess of produce, an injurious effect on the business of the factories; but that since the compensation was granted, productions begin to rise again, and also that by this compensation the injurious effect on home manufacture. in consequence of the simultaneous reduction of the duties on foreign sugar, has happily been avoided. Of the 31,692,394 quintals 46 pounds of beetroot in the year 1861-'62, with a gross amount of duty of nearly 8 millions of thalers, 48,480,887 quintals, with an amount of more than 7 million thalers of duty, fall to the share of Prussia alone. The remainder is to be distributed between Bavaria, Saxony, Hanover, Wurtemburg, Baden, Thuringia, and Brunswick. In Electoral and Ducal Hesse, Oldenburg, Nassau, and Frankfort, there are no manufactories of beet-root sugar.

A very important resolution was passed last year by the committee of the Zollverein with regard to mining, by which all the states are to furnish statistics in that branch, commencing with the year 1860. The annexed table, marked III, contains an extract from the first official tabular statement of the products of the mining, smelting and salt works of the Zollverein in 1860.

Since the 30th of September, 1862, the cash stock of the German banks has decreased 18.7 millions of thalers, and the bills of exchange increased nearly as much, 18.9 millions. The notes have increased by 8.2 millions, and the pledges by 5.5. The present proportion of cash in hand to notes in circulation is 1 1.78; that of cash to notes and deposits is 1 : 2.27; a proportion much more favorable than that of the English, or even the French bank.

With regard to the transactions of the Frankfort bank, specially, the following statement exhibits a comparison of the state and relations of the said bank on the 1st of October, 1861, 1862, and 1863.

Statement of the Frankfort Bank, 1st October, 1861, 1862, and 1×63.

The comparison with the year 1861 exhibits some rather considerable changes. The circulation of notes, for instance, has increased since that time 8.9 millions, and the bills of exchange account 6.7 millions, while the cash account has increased only 1.1 million. The proportion of the cash amount to the notes in circulation was—

The annexed table, marked V, needs no explanation. It exhibits the number and extent of the German railroads, and the receipts for Septem er last, compared with those for the same month of 1862; also the last dividends paid to the shareholders.

The following table furnishes a statement of the lines and stations of the German-Austrian Telegraph Union.

The number of stations and the length of lines and wires at work, arranged according to the different states, were, on the 1st of January, 1863, as follows:

At the beginning of the year 1862 there were 627 stations, 4,125.3 geographical miles of line, and 8,590.5 geographical miles of wires. There is therefore

H. Ex. Doc. 41-26