and successors of the Pacific Mail branch line, caused by the Mitsu Bishi Company's (a Japanese corporation) steamers being monopolized by the government in transporting troops and munitions of war to the rebellious districts south of these islands.

Five United States vessels of war have visited this port during the past year: the flagship Tennessee, with Rear-Admiral Reynolds, Captain Young, commanding; the Monocacy, Commander Phyfe; the Kearsarge, Commander McNair; the Palos, Commander Matthews; the Ashuelot, Commander Marvin, all of which remained from a number of days to a month.

MINT.

Through the courtesy of the commissioner of the imperial mint at Osaca, I add the coinage of the year: Memorandum of the coinage of gold, silver, and copper coins struck at the imperial mint from July 1, 1876, to June 30, 1877.

Valuo in yen Gold coins

1,066, 714,00 Silver coins......

5,717, 954.05 Copper coins.

1, 106, 175. 64

Total......

7,890, 843. 69

SULPHURIC ACID.

Connected with the imperial mint at Osaca are the sulphuric acid works, an institution entirely under native supervision and employing a large number of native laborers ; its results have been most encourag. ing. The entire production of the works is exported to China, where it has found a ready market. The production has increased to $150,000 per annum.

JAPANESE COIN AND CURRENCY. Gold, silver, and paper yep, of modern dies and print, is the currency of the empire; nevertheless the foreign and Chinese banks retain the Mexican dollar as the standard, and have succeeded from time to time during the year, by combination, to depreciate the Japanese coin and currency from 1 to 41 per cent.

Japanese merchants, in all commercial transactions among themselves and foreigners, invariably prefer the imperial coin and currency.

IMPERIAL ARSENAL.

Great activity has prevailed at the government arsenal at Osaca in preparing munitions of war, which are forwarded with remarkable speed to the imperial forces in 'Satzuma, on the island of Kiushiu. This arsenal, entirely under native auspices, without the aid of a single foreigner, was designed to meet the requirements of the government.

The manufacture of arms, munitions of war, and ordnance, to meet the demand of the imperial army, has been of invaluable importance to the government in the present conflict, and its utility adds to the progressive reforms of Japan.

REVENUE. The revenue collected at the customs during the past year, at an average of 5 per cent. duty on imports and exports, and port fees, are, according to the official returns, as follows:

Amount of duty collected at the customs of Hiogo and Osaca from July 1, 1876, to June 30,

1877.

Yen. On imports

161,995. 38 On exports

117, 170.80 On port fees..

5, 860. 14 Total.....

285, 026, 32

FOREIGN ENTERPRISE.

Foreign enterprise since the opening of these ports has not progressed, but seems rather to be declining. The Kobe Paper Mill, a British corporation built some three years ago, at an outlay of nearly a quarter of a million dollars, has ceased operation and is in liquidation.

CHINESE MERCHANTS IN JAPAN.

In concluding this, my annual report, I consider it worthy of mentioning the increasing success and activity of the Chinese merchants at these ports, who, with the knowledge of the native language, confi. dence, tact, and commercial experience, available capital, and the advantage of branches at Shanghai and Hong-Kong, are the formidable competitors of foreign merchants, and are gradually controlling the foreign imports and exports with an effort and energy that has taxed the thought of American and European merchants in the far East.

EFFECTS OF THE REBELLION.

The great outlay and crippled resources of the empire, brought on by the rebellion, will have the tendency to affect many of the public improvements, progressive ideas, and reforms of a zealous and liberal administration for some time to come, but industry and education, the harbingers of progress, which have added luster to the empire, will continue to guide her among the sisterhood of nations.

NATHAN J. NEWWITTER.

Statement showing the commerce at Hiogo and Osaca for the year ending June 30, 1877.

Cotton yarn
Gray shirtings..
White shirtings
Colored shirtings..
T. cloths..
Drills
Chintz, assorted
Turkey.red cambrics
Velvets.
Sateens, black
Victoria lawng..
Taffachelas..
Camlets
Lastings..
Italian cloth.
Lusters and Orleans
China figures...
Mousselines de laines.

93, 200 134, 695

4, 996 14, 232 18, 481 26, 004 29, 205 60, 020 18, 226 11, 095 47, 423 28, 880 1, 199 4, 004 8,700 53, 989

...do....

923, 200 495, 700 11, 800 36, 000 27, 600 71, 400 61, 500 136, 000 151, 000 44, 300 40, 300 64, 600 18, 400 58,000 67, 900 294, 000

Statement showing the commerce at Hiogo and Osaca, 8c.- Continued.

do... .do...

do... .do..

do. ....cases..

Statement showing the value of exports to the United States for the year ending June 30, 1877.

Statement showing the narigation at the ports of Hiogo and Osaca for the year ending Juna

30, 1877.

Total

MEXICO.

Mexico City, December 30, 1877. (Received January 5, 1878.)

Rport upon the agriculture, trade, and industries of Jexico for 1877.

EXPLANATORY REMARKS.

As required by articles 380, 381, and 382 of the Consular Regulations of the United States, I have the honor to make this my annual report, and to add that notwithstanding the requirements of paragraph 380 of Consular Instructions, only a portion of the consulates have forwarded to this consulate general their reports, for which reason the annual report of the consulate general is less complete than I have wished it to be. Nevertheless, I am hopeful that there will be found herein information and statistics of value, and which may contribute to the improvement of commercial transactions between Mexico and the United States.

Owing to the revolutionary condition of this country during the years 1875 and 1876, and the continued unsatisfactory organization of the various branches of the custom-house department, it has not been: possible to secure from the secretary of the treasury such data as he would most willingly furnish me had the same been in his possession. There is room to hope, however, that such deficiency in this report as arises from this state of things may be furnished in the next annual report.

AGRICULTURE.

The crops have failed entirely or in great part in the States of Sonora, Sinaloa, Chihuahua, and the Territory of Lower California.

In Oaxaca the indigo crop is short, and deaths among cattle have been very numerous in consequence of the drought. The production of cochineal in this State is also falling off in consequence of the diminished demand, manufactured coloring matter having taken its place.

In Lower California attention is being directed to the cultivation of cotton with success, and the product is large and very white.

The cotton crop has failed in the State of Guerrero, the yield being only 1,000 tons, price 15 cents. Sugar is abundant there, and worth 4 cents per pound for brown sugar. Corn and rice are abundant in that State.

The federal government bas authorized the free importation of cereals into the States of Sonora, Sinaloa, Chihuahua, and Lower California to the value of $60,000, owing to the short crops and consequent suffering.

TRADE WITH THE UNITED STATES.

Referring to the facilities that might be afforded for opening up a much more extensive trade for American merchandise and manufactures, I herewith give some extracts from a report sent me last October by the representative of one of the leading exporting houses of New York City:

The very high rate of freight charged by the New York and Mexican steamers belonging to the Alexandre line acts as a serious drawback in opening up a foreign