control of the South American markets. And why? We have already said that the hour has not arrived to answer this fully. But we may say, as a general thing (so that it may serve as a starting point for the Chilean press, and the North American plenipotentiaries themselves), the following:

We believe, as do some American ministers whose articles we have seen reproduced here and in Santiago, that the United States do not find markets for their products in South America because the United States has shut her doors to the products of South America. The United States Government has, by means of its heavy tariff, pretended to realize the impossible, or the absurdity to sell to all the world without buying anything from anybody. Commerce is made up of exchanges of merchandise in which each country cedes to the other those products which it produces of a better quality and with less expense owing to the better natural advantages with which it may be blessed; and therefore, in political economy, it is an axiom that products are paid for with products, and that a country can not buy without selling, or sell without buying.

This being so, it does not need much keenness to discover the origin of the evil, and to point out the remedy. If English goods come here in large quantities it is because the ports of Great Britain are open to Chilean products. If we buy of the English it is because they do not repel through a protective tariff the articles we produce, and of which we can avail ourselves to pay for what we buy. And, if the United States desire to enjoy the benefit which the English reap from this commerce, they have only to imitate their example, lowering their tariff and opening their ports to us.

Such a measure would be much more efficient for the objects sought for by the honorable plenipotentiaries than their manifestations of friendly feelings towards these countries, manifestations which we consider sincere, and which we hold at their true value, but which of themselves alone, and not being seconded by the practical measures above stated, can not produce any favorable change in the condition of the commerce of that Republic with the people who inhabit this continent.

URUGUAY.

[Extracts from the report of the commission concerning its conferences with the Government of Uruguay.

Memoranda of topics to be considered at a conference between the Government of Uruguay and the commissioners of the United States.

(1) The desirability of closer relations between the two countries because of the unity of their political and material interests.

(2) To promote the peace and prosperity of Uruguay, the United States is disposed to lend its moral influence.

(3) Is not a general treaty of amity, commerce, and navigation between the two countries desirable?

(4) Can we find the basis of a reciprocity treaty between the two countries which shall avoid "the most favored nation clause" in existing treaties, and leave concessions in favor of the peculiar products of each country in the markets of the other?

(5) What does the Government of Uruguay think of the establishment of a common silver coin which shall be legal tender between citizens of the United States and Uruguay and other American Republics?

(6) How does the Government of Uruguay regard the plan of holding an international congress, to which each of the American nations shall send delegations, to formulate measures to protect the peace and promote the prosperity of each other, and to resist European interference in American affairs, the position of the United States being that the American Republics are capable of determining what is best for their own interests, and should protect, defend, and encourage the development of each other?

(7) What does Uruguay suggest as necessary to be done by the people of the United States to promote commerce between the two countries?

MONTEVIDEO, June 2, 1885.

The President of Uruguay, General Santos, and his ministers, after expressing with great ardor their admiration for the United States, their efforts to imitate our Government in all things, and their desire for closer relations, accepted without discussion each and all of the propositions referred to, except that which relates to a reciprocity treaty with the United States. To this they would have

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readily assented also, had the commission felt justified in encouraging them to expect that the Congress of the United States would consent to a reduction or a removal of the duty on wool. This. being the chief product of Uruguay and the only article exported to the United States which is not taxed under our tariff, was of course that in which they felt the most and only interest.

With regard to the proposed common coin and the international congress they were quite enthusiastic.

The Government of Uruguay, they said, was not in such a financial condition as to offer pecuniary aid toward the establishment of a steamship line between its ports and the United States, but very earnestly hoped that something might be done in this direction, and would agree to afford the steamers special privileges in the matter of harbor dues.

As the Government has recently entered into a contract with a French company to improve the harbor of Montevideo on an expensive and extensive plan, it is suggested that their proposition as to special harbor concessions be considered at once, and accepted for a term of years, as when the new break water and docks are com. pleted harbor dues of all sorts will be enormously increased.

Recently a contract has been made to render the harbor of Montevideo a perfect refuge from storms and to supply it with wharves in waters deep enough to permit the largest ocean steamers to moor at their sides for the discharge and reception of cargoes. When this great breakwater is built and the proposed dredging and docks completed, a largely increased commerce will be the result, for this point will be a prominent entrepôt for the up-river trade. The upper river La Plata and its tributaries, furnishing thousands of miles of navigation, are reached by three lines of steamers under the French flag, which carry from and bring to Montevideo the merchandise and products of Paraguay and the northern provinces. These cargoes are transshipped from here to the ocean steamers without being landed. Recently several lines of steamers have saved the expense and delay of this transshipment by reaching the upper portion of the river La Plata. and it is said a few years will see several commercial cities springing up 1,000 miles beyond Montevideo, in a country where the products are similar to those of Uruguay. The importance of this point is found in the single statement that freight comes and goes on 21 different lines of European steamers. There are now and then sailing vessels from our ports seen here, but never steamers. here desiring goods from our country by steam communication must order them to Liverpool, Hamburg, Bordeaux, or Havre. A person two English lines, but when they have discharged their cargoes of hides and wool Freight is carried to our ports by or coffee, received at Rio de Janeiro, they take in goods for the foreign ports above mentioned, but they never proceed directly from New York to any South American ports; their destination is some foreign city, where they unload, refit, rest, and then start out on their circuitous route. The fact of so many European lines struggling for the commerce of the country shows its present and prospective importance. Indeed, so vigilant are foreign nations to secure it that they aid these steamship lines with liberal grants, and within a few weeks we were told by our vice-consul, Mr. Thomas W. Howard, that Germany had sent out a commission, consisting of Prince Frederick von Hohenlohe and Captain von Schroder, charged with the duty of promoting more friendly commercial relations with the South American countries. The commission was to have sailed from Hamburg the last of April or 1st of May.

The commerce of this La Plata region is only in its infancy. Within a few years after the completion of the harbor here there must be in this Republic alone a trade equal to that of the whole valley. The increase during the last few years has been very great, and is prophetic of the future. Telegraph lines and routes for mail coaches already cover the country, and these pioneers of the locomotive are drawing the thoughts of the people toward the needs of quicker and cheaper means of transportation.

PROSPECTIVE IMPORTANCE OF TRADE.

The prospective importance of this region in a commercial point of view is to be measured in part by the judgment of business men in the Old World, who are putting forth redoubled efforts to fasten it in grooves running alone to their own ports. And these endeavors have not in the past proved failures. The establishment of steamship lines liberally subsidized by their Governments at first was not remunerative, but now they do a fair business, and, above all, have quadrupled the trade with their own country. Belgium has just concluded a convention with an English line of boats, Lamport & Holt, to communicate between the ports of the La Plata and Antwerp, giving this company a subsidy of $50,000 per annum.

In the former years, before the late war in the United States, our commerce with these countries was much larger than now, and the United States flag was scarcely

ever absent from the anchorage at which it is now seldom seen. Seizing upon this opportunity offered by the withdrawal of our shipping, with great persistence the nations of Europe pushed their steam lines into this country, aiding them by liberal subsidies, until now England, France, Spain, Italy, Germany, and Belgium have each one or more steamship companies connecting the river La Plata with their ports. These companies have in every instance received the aid of the Government under whose flag they sail, as above stated, and although offers have been made by the nations of the river La Plata to subsidize vessels connecting them with the United States, no one has yet been found to accept them, because of the lack of encouragement in our own country.

OUR COMMERCE WITH uruguay.

The present condition of our commerce with Uruguay is simply that demanded by the necessities of these people. Ordinarily no goods are purchased in the United States for export here that can be obtained elsewhere, although it is the unanimous testimony of importing merchants that the manufactured merchandise of the United States is more popular here than that of any other country. Wherever our industrial products have come in competition with those of England, Germany, or France, they have been successful, but the difficulty of obtaining them has made it unprofitable to enlarge the trade. The cost of transporting a ton of merchandise from New York to Montevidio by steam is more than double that from any of the European ports; and importations by means of sailing vessels is discouraged by the length of time required and the uncertainty of the transit. A merchant in Montevideo ordering goods from the United States is compelled to wait from five to nine months before receiving them, and is never certain when they can be delivered; whereas he can cable an order to Europe and have the goods delivered here within forty-five or sixty days. The cost of transmission by cable to the United States, there being no direct cable communication, is so exorbitant that this means of communication is seldom used, the tariff being $3.95 a word, in gold, the address and signature being charged for. The cable rate to Europe is a little more than one-half the above. An American company, which now controls a cable line by way of Galveston to the west coast of South America as far as Callao, has projected a line from New York to the east coast of South America, which may be completed within a few years, and thus enable electricity to be used to advantage. One importing merchant at Montevidio informed the commission that nine months ago he ordered an invoice of merchandise from the United States and had not yet received it. It was not sufficient to furnish a cargo of itself, and his agents there were compelled to wait until other orders had been received that would fill the vessel. The same merchant stated that the last cargo he received from the United States was one hundred and twenty-four days in transit, and that the cost was greater than it would have been if the goods had been ordered in Europe and shipped here by steam. The sailing vessels ariving here from the United States are usually under European flags, and are chartered as occasion offers at the port of New York, It may be added, as stated by Mr. Lane, whose statement is hereto appended, that in the matter of cotton goods our products are considered too fine for the use of a certain class of the population, who prefer a cheaper fabric imported from Europe. The products of the Wamsutta Mills, however, are extensively used in the market. The high prices asked for American fabrics are justified by the superiority of the article, not only here, but in other South American countries; and it is suggested that if our manufacturers of cotton goods would produce an inferior article, so that it can be sold in competition with the goods imported from Manchester, a large trade might be built up, provided means of transportation were afforded.

There is less complaint here as to inferior packing than has been made elsewhere, which may possibly be attributed to the fact that articles imported into this country from the United States are not so liable to damage as those taken to other places. Neither is the same complaint as to the size of the packages made, the interior transportation here being done by carts instead of by pack mules, as in the more mountainous regions.

POPULARITY OF AMERICAN GOODS.

To all the foregoing we may observe that toward our country and her products there is a strong predilection. These people look upon our nation as their model. They consult our institutions, our decisions, and expedients as a precedent for their own action. As one gentleman said, "The United States is our mother; she points us to the way of peace and greatness; in striving to do business with this country our merchants have no antagonism to overcome, no apprehension of latent

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hostility to allay." On equal terms our commerce would soon be paramount to all others here.

One of the largest American merchants, Mr. Evans, whose long residence here and his great success entitle his words to just weight, claims that a line of bimonthly steamers carrying freights and passengers as cheap as it is now done between this and European ports would very shortly absorb an enormous business now done in foreign bottoms. He mentioned some lines that would be compelled to withdraw entirely in presence of such an American competition. The conditions of success for such a home transportation lie, first of all, in Government aid. This need not all come from our own Treasury. So desirous are the people here and in the Argentine Republic for increased commercial facilities with our country that each stands prepared to aid in all that lies in their power. This State would grant valuable privileges in its harbor, and these would be of large moment with the completion of its breakwater. Argentina would give not only harbor concessions, but also a direct subsidy proportionate to that bestowed by our own people. From no one authorized by experience have we heard it suggested that our country can build up its trade interests here in any other manner than that which has proved so successful with the European countries. There are no sufficient considerations applicable to our products which tend to force them into use in preference to those using cheaper and more expeditious modes of transit. Neither need there be many years of aid given to these subsidized lines. All agree that once they are established, such is the buoyancy and vehemence of our business life they would soon not only be independent, but profitable. With their creation there would flow into this great valley American wealth and people, and with them would come stronger inclinations of this region to our own country, and new ties of interest, friendship, and business would be multiplied annually.

The customs regulations of this Republic are very favorable. Goods can be shipped here and remain in secure custom-houses for a year free of duty or tax, and after that they are only subject to a slight storage charge. The tariff is heavy, but its charges need not be paid at all if the goods are reexported, and are not payable until the goods are removed. The finances seem to be, in one respect at least, superior to any we have seen. There is no depreciated currency, and here is the only place where American gold will not bring its full value in the local circulating medium.

We unhesitatingly say that, in our opinion, the United States can in a few years advance to a position as superior to any other nation in its commerce with this country as it is now inferior. The object can be reached by placing a steamship line on such a basis that it can carry freight and passengers at as low a rate from Montevideo to our ports as they are now transported to Europe. Moreover, the present is an exceedingly propitious time to promote the commerce. The transition state of this land, the new life before it, the growth of its power to demand and consume, the kindly eyes it turns to our shores, all urge a speedy opening of the channels of trade between our countries.

CONFERENCE WITH THE GOVERNMENT.

The next day after our arrival at Montevideo our secretary, in company with the Hon. William Williams, our minister, called upon the secretary of foreign affairs and gave to him a copy of the letter of the President of the United States to the President of the Oriental Republic of Uruguay, and also a copy of an address which we proposed to make on the formal presentation of the letter of our President. Shortly thereafter the President of Uruguay received us in open audience, at which time we presented to him the letter and also delivered the address, a copy of which is herewith submitted, together with a translation of the President's reply

thereto.

Between the interview with the secretary of foreign affairs and our reception we were engaged in taking statements of many American gentlemen in trade here or who had long experience in the country, and we also obtained information from other sources, all of which is herewith transmitted. We have also in this connection to acknowledge the cooperation of Mr. Williams and the very valuable services and information given to us by our vice-consul, Mr. Thomas W. Howard, whose written statement, as well as oral, will be found with the inclosures herein.

At the interview with the President we pursued the same general line of topics observed in our conferences with the other governments, but as we have no treaty of amity, commerce, and navigation with this country, we called the attention of the President to that fact. He gave us the warmest assurance of his entire willingness, and in fact of his desire, to negotiate such treaty at any time our Government requested. In this connection the President said to us that he and his people looked upon the Government of the United States with the greatest admiration, and that they were trying to imitate all the good and, as he expressed it, "grand

features in our national life;" that the people of the republics of South America, as far as he was informed, all looked upon the United States as the mother of all the republics, and her voice and her wishes commanded the utmost respect from them all; and that in his country there was a very strong and general desire among the thinking people to be on more kindly and friendly terms with the United States. We assured him that our Government entirely reciprocated the feelings of good will he had expressed, and that we would communicate the desire and readiness of his Government to enter into treaty relations with our country.

A RECIPROCITY TREATY.

We asked the President if he could suggest the basis of a reciprocity treaty between the two countries whereby the products peculiar to the one should be admitted either free of duty or at greatly reduced rates into the ports of the other. He said it was a matter he had been considering ever since our arrival here. We may observe that we also furnished to the secretary of foreign relations a memorandum of topics we desired to discuss. The President remarked that the difficulty was to find products of his country not produced in ours; that we admitted now free hides and all the results of cattle raising of his country, so far as he knew. Next to this, or perhaps of greater importance, was the wool interest; that our country placed a heavy duty on the wool of Uruguay; that at one time most of their wool found a market in our country, and with that market came a large trade, but that for various causes, especially the duty on wool, the trade had departed; that he was anxious to find a basis for a mutual concession out of which might come a greater commerce between the two countries: that his people preferred to do their business with our country if it could be done on as reasonable and as profitable terms as with any other. We did not feel at liberty to intimate that our country would modify its duty on wool, and left the matter with the general understanding that if any treaty of reciprocity acceptable to our people and the people of Uruguay could be found or devised, the negotiation for such a treaty could be taken up hereafter.

The President expressed himself as warmly in favor of a convention of all the republics of the Western Hemisphere being called by the United States. He thought that the initiative of such a congress should come from the oldest and strongest Republic; that his Government would gladly send delegates thereto; that the call for the convention by the United States should also cover a suggestion of the topics to be considered, each country, however, having the right to present for consideration such other questions as the delegates thereto might be directed to bring forward. He believed that such a convention would result in great good. He thought that possibly in regard to the question of a common silver coin, the advantage of which to the countries adopting it he conceived to be very great, should be considered by the convention.

To our general question, "What do you suggest as promotive of both friendly and commercial relations between the two countries?" he responded very quickly, "Establish steamship lines between your ports and ours." He remarked that the American flag was rarely seen or never upon an American vessel, except sailing or war vessels, and that infrequently; and that were such a line to be created he had no manner of doubt of its tending to furnish to the United States a very large share of the business of this country. He said his Government was too poor to contribute in money toward the building up of such a line, but they could in other ways aid it, and most certainly desired to do so, and he hoped that the result of this commission would be to bring the matter so strongly before our Government that it would speedily inaugurate a line of merchant steamers from our ports to his. All the expressions of the President with respect to our country, the desirability of his people doing their business and extending their trade relations thereto, were of the most emphatic and cordial character. The conference concluded by utterances of good will on the part of the President, of admiration of our country, and of the earnest hope that the two should be drawn together by commercial ties, and the interchange of friendly relations produced by the advent of American citizens and American capital into the rich country of Uruguay. He expressed the belief that our mission here would be productive of great good, not only assuring this country of the good will of ours, but in drawing their attention more particularly to the United States and her products.

THE COMMERCE OF URUGUAY.

[Statement of Thomas W. Howard, vice consul of the United States at Montevideo.] The natural resources of Uruguay are great. Production and, consequently, commerce are constantly increasing. The population is rapidly augmenting, and