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All departments of industry are suffering from the present political state of affairs, especially that of exporting to the United States; and with others, a vast number of sugar manufactories, which have for the most part wholly stopped working.

With regard to investments in American securities, it may safely be said that rather larger amounts are disposed of in that direction in Rhenish Bavaria and in Baden-especially in Mannheim, where large sums are invested in United States bonds. American enterprises are the "India-rubber manufactory," and the "American manufactory of hard gummi goods," lately established in Mannheim; the latter is to begin to work on the 1st of December next.

I may here be permitted to observe, that Mr. Louis Stroll, of the firm of Rabus & Stroll, United States consular agent at Mannheim, whose extensive emigration business is well known throughout all Germany, has, within the last eleven years, forwarded to the United States many thousands of persons from the working classes of the best description, and the most likely to be useful also to our own country. Mr. Stroll is one of the few who carry on this business really to the interest of the United States, and not with the selfish views of most of the European agents for emigration.

CARLSRUHE-B. O. DUNCAN, Consul.

OCTOBER, 1863.

I have the honor to submit herewith a report on the commerce, manufactures, agriculture, &c., of the consulate of Baden and Rhine Bavaria, for the year ended September 30, 1863.

From the two facts, that I have not been long in my position, and that official statistical information is not published until the end of the year, I shall make only a short report.

The principal articles of export from Baden and Rhine Bavaria are wines, tobacco, clover-seed, cherry-water, plum-brandy, leather, various drugs and medicines, aniline and ultramarine colors, woollen goods, "Black Forest" clocks, &c. The average price of wines in Rhine Bavaria is 400 florins per 1,000 litres; in Baden, 250 florins per 1,000 litres.

Cherry-water is produced only in Baden, and at an average price of 80 florins. per 150 litres. Plum-brandy is worth 60 florins per 150 litres; leather 3 florins per kilogramme. The wine product in Rhine Bavaria has fallen short this season both in quality and quantity, owing to unfavorable weather in the blooming season, and again when the grapes were ripening. It is probably the poorest yield since 1857. This unfavorable result will not, however, injure the trade with the United States, as the cheaper and middle qualities, mixed with one or two per cent. of spirits, are the kinds, for the most part, exported to America.

In Baden the wine product has been a very good average, both in quality and quantity.

The tobacco crop has been extraordinarily large this season, almost double a good average crop, although in some neighborhoods it was very considerably

injured by hail. Owing to the great want of Virginia tobacco, the prices had risen very high, and induced tobacco producers to plant an unusual quantity. The entire crop is estimated at 400,000 centners. The sale of the new crop has already commenced, the uninjured selling at from 11 to 20 florins per centner, the injured at from 9 to 10 florins per centner.

The supply of old tobacco still on hand is very small, there being scarcely any older than 1862. That is now selling at the following prices: 28 to 30 florins for Deckblatt, 26 to 27 florins for Aufarbeiten, 23 to 25 florins for Umblatt, 21 to 22 florins for Einlage, and 21 florins for Schwergut.

The crop of clover-seed has been very good, and the prices are very low, so that it is not likely that it will be profitable to import any considerable quantity from America, especially while exchange remains so unsettled. The principal imports from the United States are

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This includes also the Zollverein's tariff. Cotton and tobacco were formerly imported in considerable quantities, but business in these articles is now disturbed by our war. Petroleum has already become a very important article of import, and is continually becoming more so.

Wares exported from Baden and Rhine Bavaria to the United States are, for the most part, sent down the Rhine from Mannheim and Ludwigshafen to Rotterdam, from whence they are reshipped to America. The price of freight on the Rhine is, on an average, 20 kreutzers per centner.

From Rotterdam to New York—

80 cents per 150 litres for wine in casks.

$1 per 150 litres for wine in bottles.

9 cents per English cubic foot.

$2 to $4 per 1,000 kilogrammes for heavy ware.

Some goods are also sent via Havre, Bremen, and Hamburg, per steamer, when it is desirable that they should not be long on the way. The freight from one of these ports to New York is, sterling, £2 10s. for cotton and ordinary goods, £3 108. for other goods, with 15 per cent. primage per 40 cubic feet.

During the first nine months of the present year the amount of transportation on the Rhine was―

To Mannheim....

From Mannheim.

3,764,728 centners. 1,005,186

66

Baden and Rhine Bavaria produce generally more grain and other breadstuffs than is necessary for home consumption, so that a considerable amount is left for export. Barley, such as used for brewing beer, and potatoes, are sent in great quantities to the manufacturing districts on the Lower Rhine, and also to Holland and England.

The grain crop in both Baden and Rhine Bavaria for 1863 is a very good average, and the potato crop an extraordinarily good one. The average prices

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Very little American capital is invested in my consular district except in two India-rubber manufacturing establishments at Mannheim. One has been in operation some time, doing a very good business; the other is to commence

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soon. The two have a capital of about $200,000 invested. Especially in Mannheim a considerable amount has been invested in United States bonds.

There are several important cotton manufactories in my consular district, so that the effects of the American war have been pretty keenly felt. But, not being specially a manufacturing district, it has not suffered in comparison with some portions of England, France, Prussia, and Saxony.

During the last summer two important railroad lines were opened in Badenone from Carlsruhe, via Pforzhein, to Stuttgart-thus shortening considerably the line between Paris, Munich, and Vienna; the other from Waldshut, above Basle, up the right bank of the Rhine, via Schuffhausen, in Switzerland, to the famous old city of Constance. The Heidleberg-Mosbach or Neckar railroad is now being extended to Wertheim and Wurtsburg, on the Main. When this railroad is completed, Baden will have done about all necessary in this respect, except to build short branch roads up the numerous little valleys of the Black Forest. The country roads are also generally in a very good condition.

The commercial treaty between France and Prussia (a full account of which has been given from other quarters) is still hanging on the balance undecided. The most of the south German states are opposed to it, as it now stands, on political and religious grounds, because it excludes Austria. But Baden and Rhine Bavaria are in favor of adopting it, especially if they have to choose between it and the dissolution of the Zollverein. This latter Prussia threatens, rather than give up the treaty.

SAXE MEININGEN HILDBURGHAUSEN.

SONNEBERG-LOUIS LINDNER, Consul.

FEBRUARY 16, 1863

Referring respectfully to my last despatch of the 6th February, I have the honor of acknowledging the receipt of the circular No. 30, dated 24th December, 1862.

In due reply to its contents, I beg leave to state that the district of this consulate forms a part of the German Zollverein, headed by the kingdom of Prussia, and that it is lying just in the middle of the territory of the Zollverein. The imports from foreign countries to the district of this consulate are important, and equally the exports from there, because the population is, in consequence of the nature of the country, for by far the greatest part, engaged for and in the industry of the district, which consists in the manufacture of cotton, woollen, iron, wooden, porcelain, china, glass, stone, and many other goods.

The necessities for life must, as there is not, and cannot be, a sufficient agriculture for the population in the district, be imported from other German and from foreign countries, and the exports are the means of payments.

The district of this consulate being, as stated, situated in the middle of the German Zollverein, all the imports, as well as the exports, to and from the district of the consulate, pass through the custom-houses at the frontier stations and ports of the Zollverein; and I am, therefore, to my regret, not conveniently enabled to give in this matter such an exact information for the honorable Secretary of the Treasury as, according to the circular, it is necessary to do, and as, undoubtedly, the consuls at such custom-house ports will give. I can only state that the greatest care is employed in general from the part of the officers of the custom-houses to encounter defraudations, and that defraudations of importance do not occur oftentimes.

HANSEATIC AND FREE CITIES.

TREATY WITH TURKEY.

[Translation.]

The senate of the free Hanse city of Lubec, the senate of the free Hanse city of Bremen, and the senate of the free Hanse city of Hamburg, each of said states for itself separately, of the one part, and his Imperial Majesty the Sultan, of the other part, animated by the desire to regulate anew and to consolidate by a special additional act the bonds of friendship and the relations of commerce and navigation between the Hanseatic republic and the Sublime Porte, have appointed as their plenipotentiaries, to wit:

The senates of the Hanseatic cities, Mr. Geffeken, doctor at law, their minister resident near his Majesty the King of Prussia, Knight of the Order of the Royal Crown of Prussia, of the class having the decoration, officer of the Imperial Brazilian Order of the Rose; his Imperial Majesty the Sultan, Jean Aristarchi Bey, esquire, functionary of the empire of the first class, his envoy extraordinary and minister plenipotentiary near his Majesty the King of Prussia, 'decorated with the Imperial Orders of Medjidic, of the second class, and of Nichan Iftihar, Knight of the Red Eagle of Prussia, of the first class, commander of St. Olaf, of Norway, and of the Lion and of the Sun of Persia, in brilliants, who, after having reciprocally communicated their full powers, found in good and due form, came to accord in the following articles:

ARTICLE I.

All the points of antecedent commercial stipulations between the Hanseatic cities and the Sublime Porte, and especially all the stipulations of the treaty of amity, commerce, and navigation of the 18th May, 1839, as well as the supple- . mentary convention of the 7th September, 1841, so far as they are not found in contradiction with this present convention, are upheld and confirmed forever. The subjects and citizens, the productions of the earth and of industry, as well as the vessels of the Hanseatic republics, shall have of right in the Ottoman empire the exercise and enjoyment of all the advantages, privileges, and immunities which are, or hereafter shall be, granted to the subjects, productions of the earth or of industry, and to the vessels of any other the most favored nation.

ARTICLE II.

The subjects and citizens of the Hanseatic republics, or their dependencies, shall have right to purchase, in all parts of the Ottoman empire, whether they seek to engage in the inland trade or intend to export all articles, without exception, the products of the soil or industry of the country.

All monopolies which heretofore, in the Ottoman empire, fell on the products of agriculture, or any other products, are forever abolished; in the same way the Sublime Porte renounces the usage of teskeras, asked from the local authorities for the purchases of merchandise, or for conveying such from one place to another when they were bought. Every attempt which shall be made by any authority whatever to compel the subjects or citizens of the Hanseatic republics to furnish themselves with like permits or teskeras shall be considered an infraction of the treaties, and the Sublime Porte will promptly punish with severity any functionaries who can be reproached with such infraction, and will indemnify the subjects or citizens of the Hanseatic republics for the losses and vexations which they shall prove they had to suffer.

H. Ex. Doc. 41- -28

ARTICLE III.

The merchants, subjects, or citizens of the Hanseatic republics, or their de pendencies, who shall purchase any article, product of the soil or industry of Turkey, for the purpose of resale for consumption in the Ottoman empire, shall pay, at the time of purchase or sale, the same duties which are paid in like circumstances by the most favored class of Ottoman subjects or strangers who engage in inland trade.

ARTICLE IV.

Every article, product of the soil or industry of Turkey, purchased for export shall be conveyed, free of all charge and duty, to a place suitable for shipment by the merchants, subjects, and citizens of the Hanseatic republics and dependencies. On arriving there it shall pay a simple duty of eight per cent. on its value, which shall be reduced one per cent. every year until it be reduced to a fixed and definitive tax of one per cent., intended to cover the general expense of administration and supervision. Every article bought at the place of shipment for export, and which shall already have paid export duty, shall not in any case be subject to an ulterior export duty, even if it has changed hands.

ARTICLE V.

Every article the product of the soil or industry of the Hanseatic republics or of the states of the Germanic confederation, and all merchandises, of whatever kind they may be, imported, by land or by sea, by the subjects or citizens of the Hanseatic republics, shall be admitted in every port of the Ottoman empire, without exception, under a single and fixed duty only of eight per cent., calculated on the value in market, and payable at the time of landing if they arrive by sea, and at the first custom-house if they come by land. If such merchandise, after payment of the duty of eight per cent., be sold either at the place of import or in the interior of the country, no further duty shall be exacted either from seller or buyer. If, not being sold for consumption in Turkey, such merchandise be re-exported within six months, it shall be considered as merchandise in transit, and treated as in Article VIII. The administration of the customs shall in such case be held to return immediately to the merchant, who shall furnish proof of payment of the duty of eight per cent., the difference between that import duty and that of transit specified in Article No. VIII.

ARTICLE VI.

Those articles of foreign importation destined for the united principalities of Moldavia and Wallachia, and the principality of Servia, and traversing other portions of the Ottoman empire, shall only pay customs duties on reaching the principalities; and, reciprocally, imported foreign merchandise traversing those principalities to reach other portions of the Ottoman empire shall only pay customs duties at the first custom-house administered directly by the Sublime Porte. In the same way the products of the soil or industry of those principalities, as well as those of the residue of the Ottoman empire, destined for exportation, shall pay customs dues-the first to the custom-house authorities of these principalities, and the latter to the Ottoman treasury-in such manner that duties of imports and exports cannot in any event be twice collected.

ARTICLE VII.

No duty whatever shall be levied on merchandise, product of the soil or of the industry of the Hanseatic republics, nor on merchandise belonging to their

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