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The exportation of coffee to the United States being 597,145 bags less than in 1860, and less the past year (1862) than the previous year by 361,699 bags. Thus it will be seen the exports of coffee to the United States the past year have fallen off nearly one-half from the large decrease of the unusually small amount of the previous year. This can be traced directly to two great causes: first, all the ports of the insurgent States are closed by the blockade, and shut out from the market entirely; and second, the recent heavy war tax on coffee, thereby increasing the cost of it to such an extent as to decrease the consump tion of the same. This state of things is felt not alone in our country, but has most seriously affected the prosperity of this empire, and especially it is noticeable in this city, the great centre of commerce and exchange of Brazil; and this leads me to remark how closely, commercially and geographically, are we allied to this country, and it should be an incentive to a closer bond of trade than exists at present.

The coffee crop for 1861-'62 was greatly inferior to that of 1859-'60. It is anticipated that the present crop will exceed the last one, yielding about 1,800,000 bags for shipment up to 30th June next.

The importation of flour from the United States (table No. 1) is about the same the past year as the year previous, amounting to 261,865 barrels; but part of this was shipped coastwise and re-exported. The consumption for 1862 in this city was 236,670 barrels; leaving a stock in all hands on the 31st December of about 65,000 barrels.

Table No. 5 shows the amount of exports from this city for the financial years of 1860-'61, 1861-'62. In 1860-'61 the United States were the first on the list, having about seventeen and a half millions of dollars; while in 1861-'62 the amount decreased to six and a half millions; Great Britain, seven millions; and France, five millions. The total difference in the exports from Rio Janeiro alone for 1861-'62 is less than 1860-'61 by nearly eleven millions of dollars.

Considerable attention has been paid to the cultivation of cotton during the past year, both by the government and the planters, principally in the provinces of Maranham, Pernambuco, and St. Paul, and will in a short time constitute one of the principal articles of exportation. The quality is said to be very fine. In the last assembly of the general legislature the imperial government were authorized by the law of September 9 to alter the existing regulations concerning the coastwise trade, thereby allowing the trade between the several ports of the empire to be carried on by foreign vessels, and also to change the law respecting the nationality of the masters and crews of vessels navigating under the Brazilian flag.

The government is now preparing the new regulations on those subjects, and it is expected that they will in a few months be put in force. This measure will open a new field of trade to our vessels, which can in all respects compete

with those of any other nation. I shall apprise the department of any measure taken by the imperial government of Brazil in regard to this matter.

The new bank called the London and Brazilian Bank, with a capital of ten millions sterling, has been established the past year in this city by authority of the imperial government. It has just commenced operations, and has met with favor from the merchants here. On the 23d October last the Bank of Brazil commenced redeeming its currency in gold.

It is in contemplation by the commercial body of this city to establish a Brazilian Lloyds, similar to those in the United States and Europe, which will be of great advantage in classifying all vessels engaged in the merchant service.

Statement showing the import and consumption of flour at Rio Janeiro during the year 1862.

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No2-Comparative statement showing the import and consumption of flour, together with the quantity re-exported and number of arrivals, during each year from 1853 to 1862, inclusive; also stock, prices of first quality of flour and exchange on England, January 1 of each year.

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No. 3.-Statement showing the exports of produce from Rio Janeiro for 1862.

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Months.

No. 4.-Comparative statement showing the monthly exports of coffee, sugar and hides from Rio Janeiro for the years 1860, 1861, and 1862.

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Months.

Comparative statement showing the monthly exports of coffee, &c.-Continued.

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Europe.

Elsewhere.

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