every description, engine fittings and packing, ship's fittings, sanitary fittings, every description of Birmingham fancy goods, cooking utensils, first-class hosiery, and doubtless there are many other things which might be included in the list. It may be urged that it is a difficult matter to find a sufficient number of efficient men to represent British firms in a country like Russia. I know that this is the case, and the same want is felt in other countries, notably in Austria, and to show that the Austrians are taking things seriously in hand a project is being formed for the establishment in Vienna of schools, called export academies, for the purpose of training young men as travellers, and especially to give them a knowledge of languages, such as Russian, Spanish, Portuguese, Italian, &c., all free, or nearly so. Could

not something on the same lines be started in the principal manufacturing centres in England? The Germans, I hear, are thinking of opening classes in Berlin for teaching young commercial men Chinese. But besides preparing an efficient staff of men for the road, I think our manufacturers would do well to adopt the suggestions I ventured to make in my Report for 1896, and do something in the shape of establishing British agencies in this country, and it would give me great pleasure to assist in promoting an undertaking of this character in my district."

Taganrog and District. Report for 1897, by Mr. Consul Hunt.-The iron industry in the south of Russia is assuming considerable dimensions. About ten years ago the southern part of this Empire, which has now become a mining district, was very little more than a desert, with the exception of localities in the immediate neighbourhood of salt and coal mines, and the factories of Messrs. Hughes (the only British enterprise in the south-east of Russia at the time) and Pastoukhoff, where labourers started small settlements. The towns of this district, such as Ekaterinoslav, Bakhmout, Mariupol, Taganrog, &c. (with the exception of the first-named, which began to show signs of probable development of metallurgic enterprise), did not dream of them becoming manufacturing centres. Taganrog was considered only as an administrative town and a grain market, which, by-the-bye, began to fall off, and Mariupol had all its hopes on the deep port constructed there. The building of the Mariupol Railway in 1883, and that of Ekaterina in 1884, linked together, the former the coal mines with the Sea of Azoff, and the latter the ore beds of Krivoy Rog (which is partly in the province of Ekaterinoslav) with the coal mines. These railways have contributed greatly towards the population of the neighbourhood, but the springing up of so many factories was caused by the protective duty imposed upon foreign cast-iron (about £1 10s. in 1884 and £3 in 1891 per ton) on one side, and the discovery

of iron ore on the other. A great future is before this hitherto poorly populated part of Russia covered by extensive steppes. During the year 1897 a vast amount of foreign capital (mostly Belgian and French) has been invested in numerous enterprises, mainly metallurgic. There are now twelve new ones with 25 blast furnaces, with a yearly increasing production of cast-iron. The surmise that the above factories would produce about 55,000,000 poods of cast-iron in 1897 proved to be correct, as the statistics show that 62,500,000 poods, i.e., 1,000,000 tons, were put on the market during the said year. "It remains a wonder that British capitalists are not more alive to the state of affairs, and allow other nations to be first in this field of enterprise." Kertch.Mr. Vice-Consul Wardrop also writes of metallurgical and mining developments in South Russia, and says that repeated recommendations with regard to commercial travellers remain unheeded. 66 Perhaps some chamber of commerce or group of merchants might find it profitable to collect among them sufficient capital to open a general store for the sale of our products in this town. It would not be difficult to get the provisioning of the hundreds of British ships which yearly pass through the Straits; the ship-chandlery business could be easily monopolised by an active and trustworthy manager. Apart from this, the local market could be worked with advantage, and a distributing centre for the whole of the Sea of Azov should do well. People at home do not sufficiently realise the fact that British goods enjoy an unrivalled prestige in Russia. In the most remote villages no more flattering epithet than "English" can be applied to any manufactured article. Personally our fellow-countrymen are far more popular than any other foreigners, and inspire more confidence and respect." The Report contains accounts of the trade conditions in Mariupol, Berdiansk, and Rostov-on-Don, the last showing that English agricultural machinery is being ousted by American, German, and Russian.

Warsaw District. Report for 1897, by Mr. Consul-General Murray. This district comprises the ten governments or counties of Russian Poland and the four of Lithuania. Poland contains of the 23,000 factories of European Russia, and produces of the output (£212,766,000). The machinery is mostly bought from abroad (several orders were lost to England in consequence of the engineers' strike). The Poles take to trade and commerce better than the Russians; the lower class make excellent factory hands; but the "gentle class will not do the work of the middle classes in other countries. "With England, Poland has very little direct trade, though her indirect trade is very considerable; but it almost all passes through the hands of Germans. Timber, enormous quantities of which are exported every year to Germany, whence a large proportion is reshipped at an enhanced

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price to England, is bought exclusively by German Jews. Much machinery for the factories is of British make, but each year more orders are being placed in other countries, the engineers' strike having contributed much to drive orders abroad, other reasons being the stiff terms exacted by most British firms for payment and bad packing. That other nations should usurp Great Britain in the Russian market is due to their superior adaptability to local trade requirements, their better business methods, the suitability of their manufactures to the local market, their better system of presenting goods to buyers, and of booking orders, though all these doubtless contribute largely to their success; "but absolutely and undoubtedly it is the apathy and arrogance of the British manufacturers themselves that are chiefly to blame, and this in face of the fact supported by figures and reasons being placed before them repeatedly by Consuls, the very officials appointed by Government to encourage and help British trade abroad, and to whose advice they might be expected to pay some attention. It has been again and again pointed out, but without result, to the manufacturers of agricultural implements that the animals used for traction are small and the farmers poor, for which reason they must make their implements and machines as light and cheap as possible, and in most cases give credit. Through not following this advice the trade in ploughs, reapers, binders, and hand implements has passed almost entirely into the hands of Americans and Germans, who make these articles and arrange the price and conditions of sale to suit local conditions." The marvel is, "not that the business done by British firms abroad is diminishing, but that they should still do any business at all." In conclusion the Report says:-" The year 1897 was very favourable both for trade and commerce in this Consular district. There is every prospect of a further large development of both; in each of them there is a wide and excellent opening for foreign machinery, material, and money; but Great Britain, so far from supplying these, is steadily and surely losing the place she now occupies in the trade and commerce of this part of the Russian Empire."

SAMOA.

Report for 1897, by Mr. Consul CusackSmith. There was an increase of £5,095 in value of imports, and decrease of £4,890 in exports. "Much of the British trade, which now goes in German and other vessels, owing to the energy with which foreign shipowners tout for freights, would be secured by British shipowners if the British Government issued the best information to intending shippers. As an example, certain British goods can be imported into Samoa cheaper if ordered through a German firm in Sydney, New South Wales, and shipped by the North German Lloyd steamers from England, than if ordered direct, owing to

the absence of British through freights. Also last year the Governments of Great Britain, Germany, and America agreed to defray the cost of several safes for the use of the Supreme Court of Samoa. The contract was secured, so far as price was concerned, by a German firm, owing to the fact that the North German Lloyd Line agreed to carry the safes almost or entirely free of charge, so as to secure the order for Germany. It is true that the German tenderers adhered strictly to the specifications, whereas the British and American tenderers contented themselves with pointing out the advisability of being satisfied with the stock sizes, which they were ready to supply." "British firms nowa

days seem to expect to have markets found for them instead of finding them for themselves as in the past, and to have the most elementary information upon trade matters supplied to them." "Every British

trader here has the same story of the refusal of British manufacturers and shippers in England to meet local requirements or to depart from old methods. British trade will suffer far more severely during the next five years from German competition than it has done already, unless British manufacturers attack the colonial and foreign markets in the energetic, well-organised, up-to-date, and conciliatory manner adopted by the Germans. Foreign markets, such as Samoa, do not require expensive, durable, and heavy articles. Cheap attractive lines of good appearance with such quality and durability as may be possible for the money is what are required. It is simply suicidal for British manufacturers to ignore the warnings repeatedly issued under these heads."

SAMSHUI. (See CHINA.)

SERVIA.

66

Report for 1896-97, by Mr. Consul Macdonald.-British trade with Servia is limited to importations of machinery and goods by the latter. No Servian produce is exported to the United Kingdom. The report appeals to British manufacturers to give up prejudices of long standing and to realise that a new order has been created by the energy and multiplication of their rivals on the continent." English is of very little use in Servian commerce, but in ninety-nine cases out of a hundred the latter can be carried on in German. "A few of the largest wholesale merchants in Belgrade understand our language, and make their purchases by periodical visits to Manchester and Bradford, but the bulk of the trade is carried on through commercial travellers or resident agents to whom German is as their native tongue. Consulate has frequently advocated the usefulness of the commercial traveller as a means for extending our trade with Servia, and experience confirms the belief that commercial interests are better served by

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frequent personal visits than by any other form of agency. Equipped with a knowledge of German and armed with a sufficient supply of patience and attention to the peculiarities of the people with whom he wishes to deal, a capable man of business runs very little risk of wasting his time at Belgrade."

SHANGHAI. (See CHINA.)

SHASHIH. (See CHINA.)

SIAM.

Chiengmai. Report for 1896–97, by Mr. Consul Beckett.--The growing piece-goods trade was, until within the last two years, controlled by a British firm, but has now to a large extent passed into the hands of about a dozen Chinese traders, seven of whom are British. "The piece-goods have hitherto been almost entirely of British manufacture, but of late there have been considerable importations of Swiss 'phalai' and 'pahphun,' and flowered prints used by the women as scarves, which are sold at cheaper rates than the Manchester goods, and offer the variety which the native of Northern Siam loves so much. It is not improbable that a Swiss firm at Bangkok will in the near future establish a branch in Chiengmai for the sale of Swiss-made cotton piece-goods."

SOUTH AMERICA.

Commercial Mission to. Reports of Mr. T. Worthington, Board of Trade Special Commissioner, Chile, First and Second Report. Argentine Republic, Third Report.-Mr. T. Worthington was instructed to determine whether any, and if so what, causes have brought about a diminished demand in South America for articles of British produce or manufacture, and to ascertain in what directions and under what conditions a demand for British goods might be created or increased. He went to Chile by the overland route from Buenos Ayres, and his first Report is dated Valparaiso, April 14th, 1898. After giving elaborate particulars of the trade of Chile and prices of various imported articles, the Report proceeds to deal with the causes of diminished trade. At the outset he expresses the general complaint of the great difficulty often experienced in inducing English manufacturers (a) to take up a new pattern or design on a small order; (b) to make qualities very much lower than they have been accustomed to; (c) to make a low quality with a finish and get-up such as they might think only belonged to a higher class; (d) to send samples prepared in a sufficiently attractive form; (e) generally to attend to minutiæ which might appear to them unimportant, but which may be very important as affecting the sale of goods here. Causes which are apparent in Chile are (1) cheaper freights from foreign coun

tries other than Great Britain. These undoubtedly exist, at least on bulky goods from Hamburg and Antwerp. (2) Fraudulent entry of goods by certain foreign houses. "The extraordinarily low prices at which from time to time newly-arrived goods are sold (not by English importers) are difficult to account for on any other hypothesis." (3) False marking. Trademarks are not adequately protected in Chile, only an absolutely exact copy being. actionable. (4) The metric system. English weights are always very troublesome. Adoption of the metric system in its entirety would greatly assist British trade. (5) Finance. Greater facilities are obtainable from German bankers than by English. Mr. Worthington says:-"The Chilean was accustomed, years ago, to buy his European goods with what was to him the same dollar as it is now. He wants the same piece of cloth, or the same saucepan, for a dollar, but the dollar is only 1s. 6d. instead of, say, 3s., therefore the piece of cloth or the saucepan must be made proportionately cheaper-quality must go. As a leading banker said to me here the other day, Chile is a poor country, and the poor country will always buy the cheapest goods.' Cheapness is the first consideration; there is no use to tell a man, 'This piece of cloth, or that saucepan, is a little dearer than that other piece or that other saucepan, but it will last double the time'; he only has the money to buy the cheap one, and the cheap one he will have. This applies all through, even to higher-class articles, and the buyer of a piece of cheap fancy goods consoles himself with the idea that the better and more expensive piece would be out of fashion before the cheap one is worn out, while the buyer of a cheap light threshing - machine, for example, thinks that by the time it wears out something better may be invented which will render the high-priced long-lasting article obsolete. Cheapness is the first desideratum; it is better, in competing, to bring an article at a rather less price and of lower quality than the one competed with, than an article of distinctly better quality but at a fractionally higher price, provided always that care is taken that the finish and get-up are made thoroughly attractive. The remark was made to me recently that the 'Germans made a common article look well, whilst Englishmen make a common article and it looks common. "The second Report is dated Concepcion, May 24th, after a visit to Iquique-the principal northern port of Chile and Santiago, the capital of the country. Its details point to conclusions similar to those in the Report from Valparaiso. Argentine Republic.-The third Report, dated Buenos Ayres, August 18th, 1898, gives a table of the comparative trade of foreign countries with the Republic. Mr. Worthington says:-" This table does not seem to demonstrate as yet any serious comparative falling-off in British imports, as a whole, although in many directions, as

will appear later, there has been a fallingoff. I say comparative, because, owing to the fact of the tariff valuations being subject to revision annually, and to the impossibility of stating with accuracy what relation the valuations have all round to market values, these figures are more valuable in a relative than in an absolute sense, and the only sound comparison to be made from them is, that of the percentages of the total in any given year, with the percentages of the total in any other year." After giving an exhaustive analysis of articles sold locally, and indicating the country of their origin, Mr. Worthington says:-" 'It will naturally occur to anyone reading the foregoing remarks how many articles there are which are made in one form or another in Great Britain, but which do not reach this market at present, or, if they do, only in comparatively small quantities. In not a few cases the article, identical in quality, is cheaper to manufacture on the Continent, but in many others I am constrained to conclude, from what I have learned, that the British manufacturers have lost the trade in greater or less measure by failing promptly to comply with the information as to changes in quality, make or get-up, &c., which may have been conveyed to them. It has been said to me, ad nauseam, in one form or another, 'We asked British manufacturers to do so-and-so, or to make this in such-and-such a way, but they said they could not, or it did not suit them, and so we went elsewhere.' The impression seems frequently to be that the British manufacturer is doing too well and is too full of orders to care for making changes which, perhaps, involve expense and alteration of plant to a greater or less extent, whereas, whenever anything is asked for in Germany or America, it is promptly made, and if not quite what is wanted is altered as required. In one or two cases I have been glad to learn that British wares have come into the running again, but these are few and far between, and I will not enlarge upon those trades where we are holding our own, especially as, unfortunately, the general trend is in the direction of our losing more and more ground. Not a few importers have told me how they have tried to go on with such and such British goods as long as they possibly could, but gradually have had to give way. Doubtless there are other matters which also affect the competition with British goods, to which I will now refer, but I am reluctantly compelled to place in the foreground the one I have enlarged upon, as I cannot avoid the conclusion that it is the principal one. Taking up those matters suggested in the latter part of your letter of December 21st last, I would say with regard to:(1) Freights.-The references already made to this matter will show that, if occasional outside steamers from continental ports be excepted, the only serious handicap British goods have in this matter (and this affects equally the northern continental ports) are

the cheap freights which Italian goods enjoy, and which, no doubt, are a very considerable aid to the apparently rapidly developing industries of that country. Steamer freights from the United States are controlled as in Northern Europe, and are, I gather, not any cheaper than from the latter as a rule, but sailers from the former country have still to be reckoned with. (2) Quality and finish.-It is difficult to say anything generally under this heading; as a rule, however, owing to the demand being guided in most cases (not all) more by prices than quality, it is a cheaper quality that is wanted, but a good finish and nice appearance are absolutely indispensable-in many cases everything-and these English manufacturers do not often give the cheaper classes of goods." Not much is heard now of English commercial agents being unable to speak the language of the country; but, "undoubtedly our competitors are far ahead of us as regards trade circulars and advertising matter." The want in Great Britain of the use of the metric system is undoubtedly a great drawback to British trade, especially in estimates for engineering work and such like. Mr. Worthington says: Reverting to the main cause (apart from the question of prices pure and simple) of the decadence of the importation of British manufactures in many directions—namely, the want of a prompt response to indications from this market of changes required, while it is not for me to inquire into the reasons for this alleged too fond adherence to existing methods, I cannot but feel that if the men who are coming forward to have a big stake in our leading factories, together with the control of their management, were in the first instance to become thoroughly conversant with every detail of their business, and to acquire such a knowledge of Spanish as would enable them to speak and write it respectably, and were then to spend a year in this country studying closely the requirements of the trade and the doings of their competitors, we should hear less in the future of British manufacturers being left behind. With regard to the cheaper prices of our competitors, our working men would do well to consider that, if the small pay and long hours which produce these on the Continent give continental manufacturers an advantage, in the United States, which is coming forward in many articles and is already paramount in some, it is hard work and inventive genius which is winning-not trying how little work a man can do for his money, nor last century methods, such as boycotting labour-saving machines, nor yet preventing a clever and pushing man from making more than his less able or easier-going mate."

Nicaragua. Report for 1897, by Mr. Consul W. J. Chambers.-Imports, £528,384, of which Great Britain contributed £204,600, or about 38 per cent. Exports, £611,533, of which Germany took

Of

£280,150 and Great Britain £150,000. the import trade in Great Britain the Report says: "For cheap cotton fabrics, like grey cloths, prints, shirtings, drills, lawns, fancy dress goods, zephyrs, sewing thread, &c., Great Britain always appears to hold her own, and these goods are practically entirely supplied from there. Woollen goods, such as cashmeres, coatings, flannels, serges, blankets, rugs, &c., are also mostly imported from Great Britain, but a small proportion comes from France and Germany. Laces of all kinds, lace nets, curtains, &c., are brought chiefly from Great Britain, also coffee sacks, drugs, soap, hardware, zinc roofing, machinery, cutlery, nails, liquors, saddlery, and other leather goods. It is worthy of notice that Great Britain provides very little of the beer imported into this country, nearly all of it coming from the United States or Germany. Consumers seem to prefer the German and American lager beer, on account of its lightness, and possibly the price is lower than many English beers. Great Britain also appears to be, rather behind in the supplying of sewing-machines, bicycles, road carriages, weighing machines, lamps, lanterns, ropes, railway wheels, cars, trucks, locomotives, barbed wire, iron stoves, pumps, boots and shoes, these articles being generally imported from the United States, or perhaps occasionally from Germany. În some cases perhaps the

British article is less suitable for the country, as happens with road carriages, the American light half waggonette kind of vehicle, with movable cover, being most certainly better for the bad, uneven roads. Bicycles in small quantities have been imported of late years almost solely from the United States, although not perhaps so much on account of their style, quality, or price, as their being placed more before the public by agents, circulars, pamphlets, &c., but this trade can never be of much importance whilst the roads outside towns are utterly impassable on a cycle, and even some of the principal streets in towns are anything but pleasant riding, owing to their

Peru. Report for 1897, by Mr. Alfred St. John. The total import trade in 1896 was about £2,400,000, and export £2,547,366. Of the exports from 40 to 50 per cent. go to Great Britain. The prospecting for gold in the Sandia and Carabaya districts has led to failure. Gold in large quantities exists-according to one authority—and in exaggerated quantities, according to another. But the difficulties of travel and labour hinder the opening up of the region. Of the coal of Peru the Report says:-" An American syndicate has sent engineers to this country to make a survey for constructing a line which the concessionaires propose to build from Pacasmayo to the province of Hualgayoc, where, it is reported, extensive beds of anthracite and semi-bituminous coal exist.

According to Mr. C. Clinton Gardner, a well-known American engineer, 10,000,000 tons are within easy reach, and the supply is almost inexhaustible. He estimates that 2,000,000 tons could be extracted yearly and delivered at the port at a cost of $2 gold per ton, in which case he is of opinion that all other coal would be excluded from the Pacific markets, as under the circumstances it would be impossible to compete with so good and so cheap a product as Peruvian coal. He states that the cost of the construction of the line and the purchase of the rolling stock should not exceed £600,000. The line is to start from Pacasmayo or Cherrepe, the total distance from the coast to the coal strata being about 121 miles. A line is already in existence from Pacasmayo to Yonan, a distance of 41 miles, which is being worked by the Peruvian Corporation. He also believes that the projected line may eventually be extended as far as Jaen and the Amazonian basin, where he thinks that because there are 8,000 miles of navigable rivers an unlimited demand for Peruvian coal would be certain. However, as that immense region is hardly explored, very sparsely populated, and with an unlimited supply of timber, which can be utilised for fuel purposes, this suggestion may appear somewhat premature. Besides the coal deposits in the province of Hualgayoc, others exist in the Huamachuco district, and lignite and peat are found in several other parts of Peru. With regard to the exclusion of foreign coal from the Pacific, it should be pointed out that there are coal mines at Lota, Coronel, and Lebu in Chile, where the cost of extraction and shipment should be much less than that of extracting and transporting coal from the Hualgayoc district, yet large quantities of coal are imported into Chile and Peru from Europe and New South Wales. In fact little, if any, Chilean coal is brought north of Calder."

SOUTHERN CHINA. (See CHINA.)

SPAIN.

Barcelona and District. Report for 1897, by Mr. Consul J. T. Roberts.-Owing chiefly to the high rate of exchange in London the once flourishing trade in Belfast linens is rapidly dwindling. The trade in Dundee yarns is almost a thing of the past. No manufacturer can pay a duty of £3 per ton on their yarns and hope to compete with cotton. "As regards means to be adopted to increase the linen trade with Spain, until the new Government of Cuba has finally settled the duties to be levied on all goods entering the island, the linen trade in Spain will necessarily remain in the same state of suspense as at present, for without a fair margin in their favour linen manufacturers here can scarcely compete in Cuba with foreign manufacturers, as, besides wages, there must be added £18 per ton duty on