CHINA.

China is largely increasing in commercial importance. In 1848, there were only Canton, Amoy, and Shanghae open as treaty ports. In 1877, besides these ports, Foo-chow-foo, Ningpo, Takow, Tamsui, Kui-Kiang, Hankow, Che-foo, Swatow, Kiung Chow, Nenchow, Tien-tsin, and New Chang have been opened for traffic. In 1877, the imports of the treaty ports amounted to 29,000,000l., and their exports to about 25,000,000l.

JAPAN.

The trade of Japan is fast developing. The foreign trade of Japan is carried on in Kanagawa, Hiôgo, and Osaka, Nagasaki, Hakodata, and Niigata. In 1877 the imports of Japan amounted to 25,900,000l., and the exports to 22,867,000l. In 1878 the domestic debt of Japan amounted to 72,500,000l., and the foreign debt, 2,500,000l. Total, 75,250,000l. The British trade with Japan increased as follows:

The United States have made a rapid and wonderful progress. In 1800 the population of the United States was 5,300,000; in 1830 it was 12,866,000; and in 1870 it reached 38,500,000. The annual value of manufactures in 1820 was 12,553,000l.; in 1860 it was estimated at 400,000,000l. The tonnage of shipping belonging to the United States in 1800 was 972,000 tons; in 1830, 1,191,000 tons; in 1860, 5,354,000 tons; and in 1869 the tonnage amounted to 4,144,000 tons. The value of real and personal property in 1810 was estimated at 376,000,000l.; in 1830 at 752,800,000l.; in 1860 at 2,825,000,000l. The abolition of slavery is a great landmark in the recent history of the United States, and if the high tariff, the enormous financial indebtedness, and the reverses in banking and currency which followed so great a revolution, have checked for a time the development of their unbounded riches, we can well trust the shrewdness, common sense, and soundness of mind of the American people for a speedy return to that state of enviable freedom from burdens and unclogged industry under which they made their rapid and unpre cedented prosperity. The exports from the United States have Preased as follows:

Among the states of South America Brazil holds the chief rank, her imports in 1869 amounting to 19,000,000l., and her exports to 23,000,000l. The exports of cotton from Brazil increased as follows:

Bahia is a most important commercial port, and so is Para. The navigation of the river Amazon is now free to all nations. The Argentine Republic has a trade amounting to 10,000,000l., the exports of Buenos Ayres consisting principally in wool and hides. The port of Monte Video in Uruguay has a trade of about 10,000,000l. Guatemala, San Salvador, Guayaquil, and New Grenada have each considerable traffic. The Isthmus of Panama is of great commercial value as the connecting link between the Atlantic and the Pacific Ocean. The time has arrived when an inter-oceanic ship canal through the continent is demanded in the interests of commerce, in order to avoid the long, expensive, and dangerous voyage round the southern point of South America. Mexico has not much trade, but her mining resources are considerable.

Large, however, as is the present amount of international exchange, we cannot say that it has in any manner reached its ultimate extent. Assuming the population of the world to be considerably over one thousand million human beings, that at the very minimum they require food and clothing to the value of ten pounds per annum each, and that not more than half that amount is produced in the countries in which the consumption takes place, the aggregate exports would need to be above five thousand millions worth of produce and goods, whereas at present they are under one thousand millions. If the productive power of the world is great, the consuming power is still greater. The field of international commerce present and future is very vast, and what we see of its progress gives but a very imperfect idea of its probable expansion. There is one great hindrance to the progress of international commerce-it is the maintenance of customs duties as part of the public revenue. In the United Kingdom the customs in 1878 contributed about 20,000,000l. to a revenue of 83,000,000l., or about 24 per cent. In Russia the customs con

1 The bags in 1878 represent 60 kilos. instead of 160 lbs. as formerly.

tributed 12 per cent.; in Holland 4 per cent.; in Belgium 7 per cent.; in France 9 per cent.; in Italy 9 per cent.; in Austria 5 per cent. It is for the United Kingdom to take the lead in the great movement of abolishing for ever this financial obstacle to the commerce of the world, and her example will give a fresh stimulus to the extension of a liberal commercial policy.

COMPARATIVE PROGRESS OF EXPORTS OF NATIVE PRODUCE
AND MANUFACTURE.

CHAPTER XII.

COMMERCIAL RELATIONS WITH FOREIGN COUNTRIES.

Negotiations for a new Treaty of Commerce with France.-The Navigation Laws of France.-The Sugar Duties.-Conference on Drawbacks.-Operation of such Drawbacks on the Exports of Sugar from France, Holland, and Belgium.-International Treaties.

TREATIES OF COMMERCE.

THE Treaty of Commerce concluded between Great Britain and France in 1860 inaugurated a new commercial policy in France, and made her enter on a path of commercial legislation safer and wiser than she had been pursuing for years past; but French miners and manufacturers never fully understood the measure, and many French statesmen regarded the treaty with decided aversion. There was no denying the fact that the ten years which had elapsed from 1860 to 1870 had been years of great prosperity to France, that her commerce had largely expanded, that her wealth had immensely increased; nevertheless the old principles of protection were ingrained in many of her foremost men, and they would be sure to find vent for their views whenever an opportunity was offered. Therefore when the financial exigencies caused by the FrancoPrussian War made it necessary to provide a much larger annual revenue, the obligation which the Treaty of Commerce imposed to limit the import duties to certain rates became a source of difficulty, and M. Thiers, the President of the newly formed French Republic, showed himself adverse to its continuance. M. Thiers' budget was drawn up quite regardless of the Treaty of Commerce, and proposed the imposition of taxes to the extent of 10,000,000l. a year upon raw materials, textiles, and other manufactured goods, sugar, salt, navigation dues, declarations of imports and exports, matches, mobilière, and newspaper postage. A heavy taxation is always bad, but taxes which cripple industry and retard the production of wealth are worse. When, therefore, Messrs. Thiers and Puyer-Quertier brought forward their formidable tariff, considerable opposition was raised to it in the National Assembly, and formal proposals were made to substitute for it an Income-tax. M. Thiers, however, sternly adhered to his policy, made it a question.