By this calculation the sol is valued at 85 cents, American money. Price of passage from San Francisco to Panama may be less; that from Panata to Callao is, I believe; no one can supply this demand cheaper than myself.

By sailing-vessel, passage money would be one-half less. The Chinese principals of the houses with whom I am in relations prefer to make the contract with a person who represents an official character, taking that as a greater guarantee that the contract will be carried out.

Planters or persons who wish to send me their orders may do so by telegraph and remit money with the conditions and instructions they may deem necessary, through some of the commercial houses of Lima.

Allow me to recommend Messrs. Graham, Rowe & Co., whose correspondent in San
Francisco is the respectable house of Hellman Bros. & Co.
San Francisco, California, December 30, 1877.

FEDERICO DE LA FUENTE Y SUBRIAT,

Consul-General of Peru.

No. 239.]

No. 415.

Mr. Gibbs to Mr. Evarts.

LEGATION OF THE UNITED STATES OF AMERICA,

Lima, Peru, April 11, 1878. (Received May 4.) SIR: I beg to refer to my dispatches No. 107, of November 13, 1876, and No. 147, of May 11 last, referring to Chinese in this country. The steamer Perusia, the first of the line established for emigration of Chinese from Hong-Kong, arrived at Callao March 2, ultimo, with a full cargo of merchandise, but no emigrants. Mr. Geary, of the house of Olyphant & Co., of Hong-Kong, the originators of this enterprise, arrived with the steamer to explain to this government the cause of the vessel leaving the above port without passengers. It appears that the house of Olyphant & Co. had over 1,000 laborers only too willing to come to this country, the ship being fitted in good style, with good accommodations between decks, and all prepared, when Mr. Pope Hennesey, colonial governor of Hong-Kong, prohibited the men from embarking, under some law that was passed during the excitement of the coolie trade, which made it a penal offense, with fines and confiscation of the vessel, to take any person from that port under contract without the sanction or license of the government; but as that referred to a different matter the infamous coolie trade-and this being a legitimate business of emigration, with contracts to pay the passage after arrival here, in the same manner that emigrants are now leaving United States ports for Australia, it appears to have been a great stretch of technicali ties. This voyage of the steamer, I learn, has entailed a heavy pecuniary loss on the contractors, but they appear rather disposed to bear it than in any way directly or indirectly to infringe laws or technicalities. I have not altered my ideas as regards the treatment of the Chinese, as reported in my dispatches above referred to, written some months ago.

I have had more opportunities of studying the question, through time and a more extended observation, and cannot fail to see that the Chinese are as well treated and protected as any other class, natives or foreignRICHARD GIBBS.

ers.

I am, &c.,

No. 244.]

No. 416.

Mr. Gibbs to Mr. Evarts.

LEGATION OF THE UNITED STATES OF AMERICA,

Lima, Peru, April 26, 1878. (Received May 18.) SIR: Referring to your circular dispatch marked "separate" of July 16th last, I have dedicated some time in trying to gather statistics so as to be able to give you some information relative to the commerce of Peru. Unfortunately the bureau of statistics ordered by the Government of Peru, and in operation now more than two years, has not accomplished anything yet to show the result of its labors. My information is gathered from personal observation, articles in the press-native and foreign-and interviews with the prominent merchants in the foreign trade. The exports of Peru consist principally of

Estimated value

Bar tin, wines, vicuña, and chinchilla skins or furs.

1,000,000

Various estimates that I have seen make the total of exports over 40,000,000 sols. Guano for Europe is estimated at 400,000 tons per annum; for the United States and West Indies, 100,000 tons; producing, in all, 12,000,000 soles. Guano seems to be inexhaustible for many years to New discoveries of more or less value are reported frequently, but the large deposits of clear guano seem to have been cleaned out, and the places now worked give some foreign material, being at times mixed with stone, gravel, or earth.

come.

I wrote a dispatch on sugar March 13, 1876, No. 63, showing what an important industry it had become in Peru. The amount produced this year was about 100,000 tons, of which was exported to—

I will call your attention to the increase of this trade with Great Britain in eight years.

The sugar produced in this country is of a good class, and sells well in the English market, particularly for refining purposes, as the greater part of it is fine centrifugals; all above No. 16. It is kept out of our market on account of duties, which, I perceive, are augmented by the proposed new tariff presented to the House of Representatives for debate, according to my last advices.

Nitrate of soda is an article that has increased in production and ex

portation from this comtry. It is used for many purposes-for extracting various chemicals and also used greatly in Europe as a fertilizer. Contracts are about to be signed to supply one of the heaviest English houses on the coast annually 5,500,000 quintals, or 275,000 tons.

In my dispatch No. 76, of July 13, 1876, I gave a detailed description of nitrate affairs, and the decrees of the government, which I beg to refer to.

The following statement shows the total amount shipped from Peru for a number of years, with other details:

The product of Peru could be made up to 10,000,000 of quintals annually if all the factories wer at work. The factories to-day at work have the producing power of—

State works
Private.

4,020,000 quintals and do produce 2, 812, 000 4,330, 000 quintals and do produce 3, 610, 000

6, 422,000

Tie consumption of nitrate in the United States is calculated at 25,00 tons per annum; the house of Clyphant & Co., of New York, have a contract with the government to receive that quintals. It is not used as a fertilizerin the United mount or 500.000 accounts for the immense difference in the amount consumed in the United States and Europe. I perceive that by the proposed new triff nitrate is taken off the free list, and a duty of 20 per cent. to be placed on it; if that becomes a law I suppose it will partly check the importa

tion.

Wool is a very important article of export from this country, and increases steadily, and when the Oroya Kailroad, leading from Calao via Lima to the interior, reaches well into the department of Junra the export will be heavier. The most valuable wool that leaves Peru is the alpaca, and exported mostly to England, into which country there was imported

1875. 3,982, 859 lbs., valued at 1876. 3, 418, 152 lbs., valued at 1577. 3,561, 803 lbs., valued at

£528, 412

384, 469 362,022

The price varies from 35 cents to 60 cents in silver per pound; to-day ble pain Arequipa, the great wool depot, is forty silver sols per quintal. England, I believe, is the country that works this wool into the wellknown alpaca cloth, and the material is only produced in Peru and Bolivia; found in the high plateaus of the Andes up to 14,000 feet and

and

over. On my late trip to the south of Peru I aw large flocks of the alpaca above the altitude of 12,000 feet. It is ruminant, herded in the same manner as sheep, of the same family as the llama, guanaco, vicuña; the two last are wild, the llama and alpaca domestic. The former are used as beasts of burden, particularly for metallic ores, of which they will carry about 100 pounds, very sure-footed, and peculiarly fitted for the narrow and precipitous passes of the Andes; the alpaca for its wool, which is distinguished for its fineness, being silky, very long, without oleaginous matter, white, black, and cinnamon colors. An attempt was made to introduce them into Australia, but I understand that it failed, lacking the peculiar grasses of the Andean altitudes, which are more or less impregnated with nitrate salts.

Puno and Junin are the two departments which produce the most wool. Junin lies between latitude 10°, longitude 120 south, and Puno 120 to 170 south.

From the port of Mollendo, the outlet of the department of Puno, I have an exact account of the exports of wool of all kinds, and all to Great Britain.

From Arica were exported, in 1877, 01,548 lbs. of alpaca-vool, valued at 190,588 sols, and of sheep's wool 3,450 lbs., at 8,862.50 son. These two ports, Mollendo and Arica, are the most important for the expart of wool at present.

Silver is one of the great products of Peru, but the most difficult to learn of as regards the expor, as I have already explained in my dispatch No various discussions on the trade of the country, put it at of Member 1, 1876. 500,000 sols per annum. I think it much more. From a report taken from the South Pacific Times, of the exports from Arica for the year 1877, it amounts to 2,089,882 sols in bars and silver coin. From various sources of information, I calculate over 6,000,000 in bars and ore per

annum.

Of goll I can get no positive information, although it is continually shipped from the country in small quantities from all parts-all or the greater part in dust or small nuggets.

Copper: is all exported to England, and is estimated at the value of over 2,000,000 per annum, which I think falls far short of the actual amount, taking ores and bars together, and by the increasing railroad facilities to the interior the export will undoubtedly augment greatly.

By statistics published here from the Peruvian consul at Southampton, the amount of imports into Great Britain from Peru in the year 1877 amounted to £5,525,516, and exports in the same period to £618,049. I doubt this as being a fair test, for I suppose cargoes of guano and nit go there for orders, which are often sent to other parts of Europe. The government draws on England for all amounts for current expenses, and another fact is that on accone of the depreciated currency and depressed

financial affairs in Peru, exportations from England have been much reduced.

Imports into this country consist of cotton goods, woolen goods, machinery, crockery, and porcelain, boots and shoes, paper of all kinds, hats, lumber, sewing-machines, perfumery, soap, agricultural implements, rubber goods, kerosene in large quantities. Good petroleum has been discovered on various parts of the coast and near tide-water, apparently abundant, and the production is as yet in its infancy; and I only know of one refinery in operation, that is doing a large and increasing business. Wheat is imported. In the time of the colony, the coast cities and towns were supplied from the valley of Cajamarca in the north, and none imported. From commercial statistics published by the Government of Chili, I find there was exported from that country to Peru—

1875. 29,690,808 kilograms of wheat, value.... 1876 32,857,833 kilograms of wheat, value..

$1,275, 755 00 1,532, 518 00

This is a business that could be done with California if there was any chance of returning merchandise. Some is now being imported. I see by the press that by the latest dates from San Francisco, two vessels were loading wheat for Callao, each with 1,000 tons.

Importations into Peru from England for ten months of 1877 to October 31, consisted of 32,718,300 varas of cotton goods, 441,600 varas of woolen goods, 739,700 varas of linen goods, 1,280 tons iron, unwrought, bars, &c., 1,262 tons iron, wrought, hardware, &c.

From Germany there have been imported for the six months ending December 31, 1877, groceries, silk and woolen goods, hardware, glassware, pianos, drugs, hats, cigars, coal and iron to the value of $1,117,769. From France, cotton goods, hats, stationery, furniture, canned meats, woolen goods, shoes, jewelry, dresses, leather, and fancy goods, for three months ending December 31, 1877, to the value of $2,855,625 francs. This is considered very light, and in normal times would have been over four millions.

As Peru on the western slope of the Andes produces little or no timber, large quantities are imported, principally from California and Oregon; some hard woods and cedar from Ecuador. I have no statistics on the matter, but it is a very heavy trade.

I believe there are only three manufactories of woven goods in the country; one of cotton drills and domestics near Lima, two of woolen cloths, the largest and most important near Cuzco, and another in the north near Huaraz; product of all, very superior. The cotton-mill is worked entirely by Chinese, and the woolen one at Cuzco by the native Indians. It is difficult to make changes in a long-established trade where a heavy capital is employed.

I beg to refer to my dispatch No. 182, of August 6 last, relative to the nationalities in this country, wherein I show the hold which English commerce has by reason of many years' dealing with established houses; and merchants (exporters and importers) cannot be expected to form new relations by breaking off old ones for something that may be, to them, more or less doubtful; still, whenever American manufactures have been brought in contact with European products, they have been preferred, dry goods and furniture principally, with some hardware, there being no doubt of their superiority, but the trade is held back, for returns cannot be sent to the United States on account of the tariff. One of the principal sugar-planters said, that from experience he had found the machinery from the United States to be superior to that of Europe, and he added, "I must get my wants supplied to make my sugar from the country that buys from me."