of the exports of 1877, and 1,495,585 barrels more than during the year 1884. Of Bread and Biscuit we exported 16,471,972 pounds, valued at $702,027. But twice have our yearly exports of these articles exceeded this quantity. We exported of Oats in the fiscal year 1885 4,191,692 bushels, valued at $1,589,640, which is the largest quantity since 1879 shipped in any one year, and which shows an increase in valuation over the exports of the preceding year of $888,956; or, to state it with greater emphasis, more than double the valuation of the exports of 1884. Thus it may be observed that our exports of Wheat, Corn, Oats, and Flour reduced to its equivalent in wheat, record an increase over such exports in 1884 of more than 30,000,000 bushels. This exportation of 188,596,475 bushels of grain is valued at $154,672,936, which is greater than the valuation of the corresponding exportation of 1884. No phase of our commerce more clearly expresses the ability of this country to cope successfully with exceptional and comparatively depressed conditions, than the foregoing statements; not, however, upon the plane of a reduction of wages to the laborer, whose civilized requirements cannot wisely be curtailed, nor upon any radical reduction of farm prices, but principally by a shrinkage of the revenue of capital in the line of transportation, and the skillful application of business facilities to emergent circumstances, together with the acceptance of diminished profits by the merchant and manufacturer. Commercial depression weighs more heavily upon the merchant and capitalist, than upon the farmer and laborer. Financial wrecks are not so frequently found upon the farm, as in the marts of trade. Next to Breadstuffs on the list of exports is Provisions, the value of which amounted in 1885 to $107,332,456. The quantity of Bacon and Hams shipped was 10,500,000 pounds more than was exported in 1884, though the valuation was $2,600,000 less. The exports of Lard also showed an increase in quantity and a decrease in value—an increase in quantity of 18,000,000 pounds, and a decrease in value of $2,700,000. The value of our exports of Hog Products, which comprise Bacon and Hams, Pork and Lard, was $64,883,110, being smaller in the year 1885 than during any year since 1875. The maximum value was reached in 1881, when it was $104,660,065. The following table exhibits the value of our exports of provisions, comprising meat and dairy products, and also shows the growth of our export trade in the principal articles included therein, since 1860: 1875. 57.184,630 9,890,157 735,112 15,290,164 83,100,065 1876. 1877. 67,837.963 9,920,682 1,068,535 1978 28,612,613 5,671,495 22,900 522 39.664,456 5,744,022 | 22,429,485 13,498,128 92,325,308 49,512,412 6,296,414 25,562,665 4,571,792 17,249,302 118,579,676 51,752,068 4,913.657 30,023,133 86,687,858 14,678,467 5.315,177 18,163,635 124,845,137 1879. 51,074,433 4,807,568 22,856,673 78,738,674 14,154,398 8,843,564 18,121,056 119,857,692 1880. 50,987,623 5,930,252 27,920,367 | 84,838,242 18,012,197 10,637,957 18.983,420 132,488,201 1881 61,161,205 8,272,285 | 35,226,575 104,660,065 19,326,673 10,061,379 22.775.742 156,809,840 1882. 46,675,774 7,201,270 28,975,902 82,852,946 14.687,235 7.356,314 1883 38,155,952 6,192,268 26,618,048 70.966.268 15,333,162 9,311,993 1884. 39,684,845 4,762,715 | 25,305,953 69,753,513 23,224,506 5,758.277 1885.. 37,083.948 5,203,943 + 22,595,219 64,883,110 22,420,788 5,710,219 14,309,339 | 107.332,456 17,124,035 122,020,530 13,605,696 109,217,119 15,617,492 114 353,788 The aggregate value of the exports of Cotton, Breadstuffs, and Provisions for the fiscal year ended June 30, 1885, was $469,665,735, constituting 643 per cent of the total exports. A conspicuous fact under this head of my report, is the increase of the exports of Refined Sugar. In 1884 we exported 76,000,000 pounds, and were credited for the same, $5,400,000. During the present year we shipped 252,500,000 pounds, valued at $16,000,000, showing an increase in quantity of 176,500,000 pounds, and in value of $10,600,000. Ninety-five (95) per cent of the total value of our exports during the fiscal year 1885, is accounted for by the exports of Raw Cotton, Breadstuffs, Provisions, including Meat and Dairy Products, and Leaf Tobacco. The exports of Coin and Bullion, both domestic and foreign, for the year ended June 30th last, were $42,231,525, which amount is $1,010,798 less than the imports for the same period. For the corresponding time in 1884 the exports of specie were in excess of imports $29,707,121. The value of our imports of merchandise sustained so favorable a relation to that of our exports as not to result in a national debit balance, to be discharged by shipments of specie. The universal acceptation of the financial situation and the prudent conformity thereto, is evidenced by the character and limitations of our imports. The sagacious management of controlling business and financial interests which is here emphatically implied, should inspire confidence in individual obligations, because under a judicious financial and mercantile policy emanating from prominent bankers and extensive merchants, individual indebtedness is circumscribed within conservative boundaries; thus in seasons of comparative dullness, are averted alarm, distrust, and disaster. Our foreign commerce exhibits the very gratifying result of an excess of exports over imports of $164,662,426 as compared with $72,815,916 for the previous year. Notwithstanding our imports and exports of merchandise have declined from the highest point to $1,319,717,084 in consequence of long-continued commercial depression, yet the development of our foreign commerce since 1860 is exceedingly gratifying: the total value of our imports and exports of merchandise increased from $687,192,176 in 1860, to $1,319,717,084 in 1885, or 92 per cent. Our exports of domestic merchandise increased from $316,242,423 in 1860 to $726,382,946 in 1885, or 129 per cent. The carrying trade of the United States has steadily diminished, and no American can turn with pride to its condition as it recedes from view. The national flag which should float above American commerce on all seas, is seldom seen at the masthead, and the spectacle of a foreign flag over American merchandise flaunts in our faces. In 1856, 75 per cent of our foreign commerce was shipped in American vessels, and now, with the enormous increase in that commerce which is here indicated, only 14.61 per cent is carried in American bottoms. The tonnage entered at ports of the United States in its foreign trade during the year ended June 30, 1885, was 2,709,212 tons of American sail and steam, and 9,578,280 tons of foreign sail and steam. Entered at lake ports, 422,799 American and 2,594,536 foreign tons. steam and sailing vessels which carried grain from Europe in 1885, not one sailed under the American flag. Great Britain headed the list with 674 steam and 16 sailing vessels, which carried 30,374,334 out of the 47,103,264 bushels exported from New York. It is many years since American steamers did any of the grain carrying trade, but in 1880 there were still thirty-four American sailing-ships in the grain fleet. Out of 1,191 New York to Without delay the national government should restore our merchant marine and place her flag over American merchandise upon the high seas, where some of its proudest victories were won. By national aid if necessary, launch American hulls for American commerce. Let not foreign trade do what hostile guns could not accomplish. We should carry our exports to all markets and bring hither our imports, in vessels flying our own flag. Better admit foreign-built ships to American registry than to suffer the ocean carrying trade to pass from under the national ensign. The maritime power of this nation must be restored, and we should be aroused to a sense of the danger and decay which threaten it. The statesmanship of Washington and Jefferson in placing the maintenance of the merchant marine among the chief safeguards of national security, should not be forgotten. History teaches that national effeminacy accompanies the degeneracy of the merchant marine, and that the decline of maritime power is followed by the decadence of enterprise and commerce. We are humiliated by the situation of buying from South America a large proportion of her raw products while our money is being remitted to Great Britain in payment of South American imports, which we could more acceptably supply had we the vessels to command her trade. Any policy which sends would-be customers for our manufactures to foreign markets, with American gold in their pockets, should straightway be abandoned; such a policy forces us, in order to get back our gold, to compete with uncivilized labor in the exportation of raw material. Financial disasters for the year 1885 have not only been fewer in number, but the aggregate liabilities have been very much less than for the preceding year. The total number of failures in 1885 was 11,116, against 11,620 in 1884, and the amount of liabilities $119,120,000, against $248,740,000 in 1884, and $175,968,000 in 1883, though the assets for 1885 bear a less favorable proportion to the liabilities of that year than did the assets of the previous year to its liabilities, the percentage of total assets to liabilities in 1885 being 46 per cent, as compared with 54 per cent in 1884, and 52 per cent in 1883. It is an encouraging feature that the liabilities of insolvent debtors were materially less than in the year immediately preceding, as it is not so much the ratio of assets to liabilities which defines the true general financial tendency, as it is the proportion which the liabilities of one year bear to those of another. Is the volume of involved or embarrassed capital being reduced? This is the vital question in view of determining the signs of the times. Again, it is not the number of failures which affords any conclusive light on the financial condition; one large, disastrous collapse, works more widespread and lasting injury than many small failures distributed through several months and over a large tract of country. Instances will readily be brought to mind of single failures producing more loss and demoralization in the market, and inflicting deeper wounds, than scores of ordinary business misfortunes: the process of recovery from such failures is quite likely to be tedious and painful. There have been few such failures during the past year, as capital has been timid and business generally has been sagaciously and prudently managed. Taking into consideration surrounding circumstances, the voyage of the year, in spite of comparative dullness, has been made with remarkable good fortune. ILLINOIS. The State of Illinois produced in the year just closed 356,537,155 bushels of grain, as against 352,481,786 bushels in the year 1884, showing an increase in corn and oats of 34,395,065 bushels, but a decrease in wheat, rye, and barley of 28,339,696 bushels, the principal decrease being in the crop of wheat, which was 26,068,250 bushels less than in 1884. The aggregate value of the product of broom corn, sorghum, grass seeds, potatoes, hogs, cattle, sheep, and dairy products for the year 1885 is $67,793,197, making a total valuation of agricultural products. for the year of $169,432,750. The comparative failure of the wheat crop in this state resulted in a largely increased acreage of corn and oats, and accounted, in a great degree, for the marked falling off of the receipts of wheat in Chicago; indeed, the smallness of the wheat product (8,299,243 bushels) may be regarded as phenomenal, since for twenty-six years this product has not in any other year been less than 20,000,000 bushels, while in 1880 it reached over 56,000,000 bushels. The valuation of her cereals for the year amounted to $101,639,553, as against a valuation of the same cereals in 1884 of $115,789,443. The state preserves her high record as one without an indebtedness, and with more miles of railway than any other state in the union, and a larger coal production than any other, save the great state of Pennsylvania. The fortunate situation of this state, covering so many degrees of latitude, and lying in the great corn belt, insures in all seasons. magnificent crops; hence her teeming resources from mine and field. are completely assured, constituting her a customer of undoubted financial ability, imparting no small measure of confidence to the merchants of this and other cities, who daily forward wares of all kinds to her intelligently industrious population. CHICAGO. The business of Chicago, in common with other cities, has been in some respects unsatisfactory, but her merchants, though not realizing the results which were anticipated at the beginning of the year, have yet many reasons for congratulations. There certainly has been nothing approaching serious misfortune, though the protracted dullness has taxed patience, and disappointed ambition in some directions. The ability to successfully contend with unfavorable conditions has been demonstrated, and the salutary lesson that permanent profits must always bear a proper relation to the neces |