offices, making the total number of offices 2,355. The quantity of mail matter handled by these offices was 95,000,000 pieces, which, added to the matter handled in the previous half year, give a total of 174,000,000 pieces for the fiscal year 1903-4. Internal postal money orders were issued to the value of $44,787,000 for the entire year. The interchange of postal money orders between Mexico and the United States aggregated $575,000 in Mexican money, of which $320,000 represent orders issued in Mexico and $255,000 orders issued in the United States, the total for the year having aggregated $1,134,000. For the six months under review the general earnings of the post-office were $1,536,000, which, added to the earnings of the previous half year, yield a total of $3,025,000 for the year 1903-4. The earnings of the Federal telegraph lines, as compared with those of the previous fiscal year, have increased 10 per cent, and newly strung lines aggregate 1,500 kilometers. Nine new offices have been opened and a subterranean cable 1,530 meters long has been laid between the city of Campeche and the station of the Gulf submarine cable. The system of wireless telegraphy has also been continued with considerable success.

In regard to the Finance Department of the Government the President stated as follows:

“It is gratifying to me to inform Congress that the results of the fiscal year ended on June 30 last were satisfactory, notwithstanding the scarcity of cash and available capital which prevailed in the chief markets of the Republic during the greater part of the fiscal year in question, and in spite, too, of the fact that the burdens which in general weighed on the tax-paying class were lightened through the reduction of the Federal contribution from 30 to 25 per cent.

"The total revenue for the year exceeded $85,000,000, and although the final auditing of the accounts has not yet been completed, it is undoubted that the collections exceeded those of the previous year by more than $8,000,000. It must be observed, however, that the proceeds of the municipal revenues of the Federal district, which for the first time were incorporated in 1903-4 with the revenue of the Federation, represent nearly $4,000,000.

“With particular reference to the two great branches of revenue which represent more than 80 per cent of the total revenue of the Federation, I have the honor of informing you that the import duties, apart from the surcharge authorized by the law of November 25, 1902, show an increase of nearly $2,000,000, while a proportional increase may be noted in the collections from export duties and port dues. In regard to the ensemble of taxes which are paid in the form of stamps, the gain in receipts, as compared with those of the previous year, was more than $1,000,000.

"These results show that the condition of public finance is prosperous, and corroborate the hope that the development of the nation's

wealth and the general prosperity of the country will be continually accentuated."

In regard to the modifications of custom-house rules, it was stated that they had been received with marked public favor, their purpose being the simplification of methods for the accomplishment of commercial transactions through the ports of the Republic.

Improvements in the equipment of the War and Marine Departments of the Government were effected during the half year under consideration, and numerous other changes conducive to a satisfactory status. are under way.

FOREIGN COMMERCE IN MAY, 1904.

According to statistics issued by the Treasury Department of the Republic of Mexico, imports and exports for the first eleven months (July-May) of the fiscal year 1903-4, as compared with the same period of the preceding year, reached a valuation of $71,297,901.22 and $68,966,200.68 gold, respectively, for imports, and $193,234,384.34 and $188,574,064.37 silver. The imports during the eleven months of 1903-4, as stated in the invoices presented at the respective custom-houses, were divided as follows:

The countries of origin for the above-mentioned items were as follows:

The exports in the eleven months of the fiscal year 1903-4, as declared in Mexican silver currency in the invoices presented at the respective custom-houses, amounted to $193,234,384.34, an to excess of $31,125,907.92 over the imports taken at a silver value of $162,108,476.42, showing that the balance of trade is over $31,000,000 silver in favor of the Republic.

The exports as given in the Treasury statement were as follows for the eleven months of 1903-4:

The above totals represent a value of $180,784,784.98, but to the value of the gold exported is added the increase resulting from the difference between the price as calculated at the conventional rate of $675.416 per kilogram and the commercial price at which it sold, aggregating approximately $12,449,599.36, thus making the total value of exports during the eleven months in reference $193,234,384.34, as stated above.

OPERATIONS OF THE MAIL SERVICE, JULY, 1904.

The operations in the mail service of the Republic of Mexico during the month of July, 1904, are reported as follows by PostmasterGeneral NORBERTO DOMINGUEZ, as compared with the corresponding month of the preceding year:

It is thus seen that the total receipts for July, 1904, amounted to $280,428.74, as compared with $261,736.20 in July, 1903, an increase of $18,692 for the later period, or about 7.14 per cent.

A comparison of the receipts for July, 1904, as compared with the preceding month of June show the figures to have been $280,428.74 and $248,942.32, respectively, showing an increase for July of $31,486.42.

RATE OF EXCHANGE FOR OCTOBER.

The Secretary of the Treasury announces that in accordance with the Law of November 25, 1902, the rate of exchange for liquidating

the import duties on merchandise entering the maritime or frontier customs houses of the Republic of Mexico during the month of October will be 220 per cent, the average rate of exchange on New York from September 1 to 27, at which the city banks sold sight drafts, having been less than that rate.

Secretary Limantour also announces that the commercial value or price in silver coin of 1 kilogram of gold at which to calculate the 3 per cent stamp tax and the 2 per cent coinage dues during the month of October is $1,452.41, in accordance with the law of November, 1902. This price is obtained by multiplying $675.416, which is the value assigned by the monetary law to the kilogram of gold, by 215.04 per cent, which is the average of the rates of exchange, Mexico on New York, during the first twenty-five days of September.

The Treasury circular places the average of the rates of exchange, Mexico on New York, during September, at 215.04, as compared with 215.37 per cent for August, 214.87 for July, 214.58 for June, and 220.36 for May, giving 216 as the average rate of exchange on New York during the five months from May to September.

CONCESSION FOR THE CONSTRUCTION OF A RAILWAY FROM THE FEDERAL DISTRICT THROUGH THE STATE OF MEXICO TO THE CITY OF PUEBLA.

Under date of August 25, 1904, the Government of Mexico granted a concession to ERNESTO PELAEZ, BENJAMÍN BARRIOS, and CHARLES HOLT, or to their assigns or transferees, for the construction of a railway from the City of Mexico in the Federal District through the State of Mexico to the City of Puebla in the State of Puebla, said railway to pass through the towns of Ayapango, Amecameca, Paraje, Pelagallinas, Xalizintla, San Nicolas, and Cholula.

Under the terms of the contract the concessionaires must commence the survey of the railway within six months from the date of the concession and agree to complete at least 10 kilometers of the same within a period of time not to exceed eighteen months from the date of the concession, and to construct 10 kilometers of railway within each year following until the entire line is completed, which must be built within a period of time not to exceed ten years.

The width between the rails must be either 1 meter 435 millimeters, or 914 millimeters, at the option of the concessionaries, the gauge to be definitely determined at the time of the approval of the plans by the Government. The weight of the rails, the grades and the curves shall be fixed by the Department of Communications. The traction to be steam or electricity.

The principal domicile of the company shall be in the City of Mexico. The importation of construction materials and supplies free of duty shall be allowed for a term of five years. The company is authorized