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silk, some piece goods, crapes and damasks, floss silk, tea, cotton, lumber, copper and rags; other staples, such as coal, fish, whale and rape-seed oils, seaweed, shark fins, firewood, charcoal, mushrooms, fish, vegetables, and beeswax, camphor, gall-nuts, saltpetre, tobacco, &c., mostly dependent upon the Chinese for a market, are of doubtful significance, or at least of uncertain importance.

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The true returns, however, should be made ending each year July 30, for it is then the old crop has become exhausted, and the new fairly begins to appear, and thus our returns would be intelligible and more reliable.

Exports of silk thus for 1860-'61 were....

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7,703 bales. 11,915 25,891 66

5,373

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And this would show our true market and production from year to year. The increase of 1862-'63 over 1861-'62 is most remarkable, and it was estimated this year that, with uninterrupted business, the trade would swell to not less than 40,000 bales. The exports from July 1, 1863, to this date, as above, are 5,373 bales against 5,137 in 1862, notwithstanding the troubles. Besides, in this should be included 159 bales floss silk, making an aggregate truly 5,532 bales for three months-an increase really of 395 bales over the first quarter of 1862-'63. The great silk-producing districts lie west and north of this port, and thus this is, and must ever remain, the most direct, as well as important, entrepot for the sale and delivery of the same. It is believed such is the exhaustless productiveness of the soil and industry of the Japanese that, within three years after this, the quantity of raw silk for export will reach quite 100,000 bales per annum. The export of the important article of cocoons has been hitherto interdicted until recently, except to one French house; but now the same privilege has been obtained through the influence of our minister and myself for a leading American house here, and it is expected that a growing and important trade is likely to ensue from their export.

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An increase of 462,288 pounds over the same time in 1862-'63. It is particu larly noticeable that the tea trade with our own country has largely increased, New York and San Francisco being the principal ports of entry. Two cargoes were shipped direct to New York in 1862-'63, and three vessels are now loading for that port, and one is prepared for shipment to San Francisco about November 1. Besides, considerable shipments are known to have been made to China for direct reshipment to New York and Boston. The consumption of Japanese tea is understood to be mostly American, Japanese tea being purely green, and in its natural state free from all deleterious preparations or coloring matter, and never fired on copper, but in iron and paper kettles.

This trade this year, but for our unhappy war, would have been of far greater importance than it now possibly can be.

The total exports direct to America, per Japan custom-house returns, were,

for 1861-'62, 288,948 pounds; for 1862–63, 1,172,510 pounds. My belief is the amount exceeded 1,500,000 pounds..

The total exports of cotton for the year 1862 were 13,495 bales, or 16,310 piculs, and for nine months of 1863 were 30,987 bales, or 41,714 piculs. The following table, and it is very imperfect, (also from the Japanese custom-house,) shows the exports of 1862 in detail.

Table giving a comparative view of the export trade at the port of Kanagawa during the three years from January 1, 1860, to December 31, 1862.

1860.

1861.

1862.

Exported commodities.

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Quantity. Declared value. Quantity. Declared value. Quantity. Declared value.

-piculs.
.do...

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..pieces

Lacquer ware....boxes

Oil....
Sea weed.
Saltpetre.

Paper..

Wax.

..piculs.

du... .do...

..do..

.do..

26, 050

1,926

1, 132

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1000

Isinglass..
Ginseng

Mushrooms..

Dried fish

do..

.do.

..do..

....do..

Silk goods.. ..boxes
Raw cotton ..-- .. -piculs
Medicine.........do...

Gall nuts.

..do..

Camphor..........do...

Miscellaneous .....do...

Total in Mexican dollars.

1,502

8,332

2,317

14,592 00

95, 462 40
38,865 60

59, 350 40
11, 544 00

628 80
291,840 00

1, 117
2, 175

3,590 40 18,936 00 2, 174 40

6,820 80

66, 595 20

3,773

4, 616

3,249 60 10,915 20 10,756 80

22,593 60

1,300 80

64,747 20 1,068 80

345 60

2,265

60

19, 982 40

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Table giving a compurative view of the import trade at the port of Kanagawa during the three years from January 1, 1860, to December 31, 1862.

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Quantity. Declared value. Quantity. Declared value. Quantity. Declared value.

523

3, 589

331

$294, 393 60
26, 016 00

2,698

$268,809 80

259

27,729 60

72, 345 60

180

32, 539 20

4,299

204,846 40

2,696

48,249 60

2, 004

324,848 80

1, 139

104, 174 40

..do...

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625

Taffachelas.. ....do..

73,512 00

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Velvets

65, 174 40

....do...

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Woollens.........do...

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Brocades..

35, 313 60

Long ells

Cotton yarns.. ..piculs.

..do..

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.bales.

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Lastings.. ......do...

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Vermillion

.piculs.

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Medicine

....do...

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Tin, lead, spelter, &c.do.

18, 047 60
11,472 00

61, 032 00

5, 590

Tin plates.. Miscellaneous

Total.

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6,844 80 15,739 20 20, 563 20 1,190, 880 00

1,958 40 14, 678 40 9,724 80

398 40 50,568 00

2, 144, 880 00

The import sales have been unusually active in camlets, tin, lead, zinc, and spelter, with large sales to native merchants for consumption and government uses, and the demand still continues. The value of imports over 1862 will be of considerable importance both in the way of profit and exchange to the importers The value of Japanese custom-house returns may be fairly estimated by the following tables :

Value of exports for 1860, $3,954,298 Imports.

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$945,711

1,457,315

2,576,930

My own opinion, after as careful inquiry and analysis of the trade here as I can give it, is, that both export and import values are too little by at least onethird. The secret of this is that these values are the basis upon which duties are paid. The same estimate makes the values of 25,891 bales exported silk, 1862-'63, at less than $6,000,000; and this is certainly erroneous. This silk cost not less than an average of $350 per bale, which would make $9,061,850, say, in round numbers, $9,000,000. My estimate, then, is that the real value of exports for 1862 was—

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I estimate the imports of 1862-'63 worth not less than $3,500,000. The average prices of silk were from $350 to $530 per picul; cotton, $13 50 to $20 per picul; tea, $3 to $40 per picul.

The following tables will show the average market prices of the articles therein named for the year 1862.

Average market prices of the following commodities at the port of Kanagawa during the year ended December 31, 1862.

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Average market prices of the following commodities, &c.,-Continued.

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The shipping arrivals have been of far greater importance than for any pre

vious year.

The arrivals for 1860 were, in all, 103. American tonnage, 16,629; all others, 24,276 tons. Nationalities imperfect.

Arrivals for 1861: American, 27; tonnage, 13,153; British, 37; tonnage, 15,234; Dutch, 9; tonnage,' 2,382; French, 1; tonnage, 268.

Arrivals for 1862: American, 35; tonnage, 17,761; British, 65; tonnage, 19,181; Dutch, 13; tonnage, 3,302; French, 4; tonnage, 734; Russian, 3; tonnage, 858; Prussian, 1; tonnage, 1,040.

Arrivals for 9 months, 1863: American, 33; tonnage, 19,246; British, 83; tonnage, 26,660; Dutch, 11; tonnage, ; French, 3; tonnage, 898;

Russian, 2; tonnage, 740; Prussian, 6; tonnage, 1,473.

Departures, 1860: All, 106; tons, 41,101.

Departures, 1861: American, 25; tons, 11,119; British, 36; tons, 14,822; Dutch, 8; tons. 2,112; French, 1; tons, 268.

Departures, 1862: American, 25; tons, 15,301; British, 52; tons, 15,202; Dutch, 10; tons, 2,642; French, 4; tons, 734; Russian, 3; tons, 858; Prussian, 1; tons, 1,040

Departures for 9 months, 1863: American, 31; tons, 19,246; British, 83; tons, 26,660; Dutch, 11; tons, ; French, 3; tons, 898; Russian, 2;

tons, 740; Prussian, 5; tons, 1,340.

In 1862 six vessels were sold to the Japanese, viz.: one American steamer and two sailing vessels, and three British steamers. During the same year two wrecks occurred on the coast, viz.: American bark Cherallie, of New York, 543 tops: ship and cargo total loss; Dutch brig Guinea, of Amsterdam, 200 tons ship lost, cargo saved; and June 4, 1863, American ship Viking, of New York, 1,349 tons, was wrecked on Prince island: ship and cargo total loss.

The Japanese government is also said to have lost by wreck two foreignbuilt vessels since the 1st of January last.

No improvement has been observed by the Japanese in the construction of lights, light-houses, ship-building, dry docks, or facilities for repairs of vessels or relief of wrecks. The government is making, however, a more correct geographical and hydrographical coast survey of the country, and one that promises to be of some importance.

The men-of-war visiting this port: British, 105; French, 25; Dutch, 27; Prussian, 18; Portuguese, 7.

Trade is proportionably divided, except that the British do about two-thirds of the silk and tea export business of the port, and about the same proportion of the whole import business, except tin and lead. The balance of the trade may be safely estimated to be done two-thirds by American houses, and the remainder by the French, Dutch, and Prussians, in about equal proportions.

The Japanese government, by the governor and custom-house authorities of Kanagawa, has allotted lots of ground for residences and business purposes this year, 1863, to Americans, 25 lots; to English, 13 lots; to French, 12 lots; to Dutch, 11 lots; to Prussians, 8 lots; to Portuguese, 5 lots.

Foreigners' houses in 1859, none; population, none.

In 1862, foreigners' houses, 98; population, 220. In 1863, foreigners' houses, 113; population, 265. Native houses, 1859, 614; population, 3,046. Native houses, 1862, 1821; population, 8,297. Native houses, estimated, 1863, 2,000; population, 9,200. In agricultural matters, the country has this year been blessed with a full average crop, and is called by the natives a good season. The tea crop is, however, believed defective and short, because of the great uncertainty in relation to foreign affairs, and want of confidence on the part of growers that they

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