which they offer to European immigration, by the prodigious internal development of their resources and wealth, and by the intellectual life of their population, occupy of necessity a prominent position on this continent, which they neither can nor should abdicate, which entitles them to a leading voice, and which imposes upon them duties of right and of honor regarding American questions, whether those questions affect emancipated colonies, or colonies still subject to European dominion. The public questions which existed as to all European colonies, prior to and during the revolutions in the continental colonies of Spain and Portugal, still exist with reference to the European colonies which remain, and they now return upon us in full force as we watch events in Cuba and Porto Rico. Whatever may be the result of the pending contest in Cuba, it appears to be the belief of some of the leading statesmen of Spain, that the relations which now exist between the island and the mother country cannot be long continued. It is understood that the resources for carrying on the struggle have been supplied mainly from Cuba, by the aid of that portion of the population which does not desire to see its political destinies intrusted to the persons who direct the movements of the insurgents; but it does not follow that its political relations with Spain are to remain unchanged, or that even the party which is now dominant in the island will wish to forever continue colonists. These facts give reason to think that, when the contest shall close, Cuba, with her resources strained, but unexhausted, (whatever may be her political relations,) will resume and continue her old commercial relations with the United States; and it is not impossible that, at some day not far distant when measured by the course of history, she will be called upon to elect her position in the family of nations. Although the resolution of the Senate does not in terms apply to the Islands of the Antilles, it is impossible to answer it without speaking of them. They outlie the southern coast of the United States, and guard the approaches to the ports of Mexico, Venezuela, and the Isthmus, by which we reach from the east the western coasts of Mexico and of the Spanish states. The people of the Spanish islands speak the language and share the traditions, customs, ideas, and religion of the Spanish-American states of the continent, and will probably, like them, become, at some time, independ ent of the mother country. It would, therefore, be unwise, while shaping a commercial policy for the continent, to disregard the islands which lie so much nearer to our seaports. With the Spanish islands of Cuba and Porto Rico we maintain, in spite of their adverse legislation, a large commerce by reason of our necessities and of their proximity. In the year ending June 30, 1869, we imported from them merchandise valued at $65,609,274. During the same time we sent them goods to the value only of $15,313,919. The probibitory duties forced upon them by the policy of Spain shut out much that we might supply. Their tropical productions, for instance, are too valuable to allow their lands to be given up to the growth of breadstuffs; yet, instead of taking these articles from the superabundant fields of their nearest neighbors, they are forced to go to the distant plains of Spain. It will be for the interest of the United States to shape its general policy so that this relation of imports and exports shall be altered in Cuba when peace is restored and its political condition is satisfactorily established. With none of the other Spanish-American states in North and South America are our commercial relations what they should be. Our total imports in the year ending June 30, 1869, from these countries were less than $25,000,000, (or not one-half the amount from Cuba alone,) and our exports for the same time to them were only $17,850,313; and yet these countries have an aggregate population nearly or quite as great as that of the United States; they have republican forms of government, and they profess to be, and probably really are, in political sympathy with us. This Department is not able to give with entire accuracy the imports and exports of Great Britain with the same countries during the corresponding period. It is believed, however, the following figures will be found to be not far from correct: Imports to Great Britain, $42,820,942; exports from Great Britain, $40,682,102. It thus appears that notwithstanding the greater distance which the commerce has to travel in coming to and from Great Britain, notwithstanding the political sympathy which ought naturally to exist between republics, notwithstanding the American idea which has been so prominently and so constantly put forward by the Government of the United States, notwithstanding the acknowledged skill of American manufactures, notwithstanding the ready markets which the great cities of the United States afford for the consumption of tropical productions, the inhabitants of the Spanish-American continent consume of the products of Great Britain more than twice the quantity they take of the products of the United States, and that they sell to us only three-fifths of the amount they sell to Great Britain. The Secretary of State appends to this report the tables on which these statements are founded. That their commerce with the United States is not large, may be partially explained by the fact that these states have been subject to many successive revolutions since the failure of the congress of Panama. These revolutions not only flow of foreign capital into the country, and stop the enterprise which needs a stagovernment for its development. "hese suggestions are, however, applicable to the British commerce as well as to our n, and they do not explain why we, with the natural advantages in our favor, fall Far behind. The Isthmus of Panama is the common point where the commerce of western coasts of Mexico and South America meets. When it arrives there, why nld it seek Liverpool and London rather than New York? he political causes which have operated to divert this commerce from us the Secre- t may not be enough to remove the political obstacles only. The financial policy HAMILTON FISH. mmerce of the United States with the countries on this continent and adjacent islands for the year ended June 30, 186). [Compiled from the Annual Report on Commerce and Navigation.] 3, 149, 837 $21, 047, 395 $51, 400, 405 33, 441, 336 22, 492, 743 4,887, 141 15,926, 495 72, 214, 041 77,910, 116 10, 191, 901 88, 102, 017 1,916, 522 2, 177, 671 10, 343, 182 12, 116, 113 2,366, 990 75, 601, 984 87,706, 843 246, 261, 224 439, 128, 029 876, 442, 284 beaten tra with all en the Spanish sata to our were permit commerce i have always it cannot be and it is now a more cordi in this counti Imports and exports of Great Britain with Spanish America and some of the West India Islands for parts of the years 1868 and 1869. No. 71.] No. 198. Mr. Long to Mr. Fish. UNITED STATES CONSULATE, PANAMA, September 12, 1870. (Received September 28, 1870.) SIR: In reply to your circular dated Washington, August 19, 1870, I would most respectfully ask leave to make the following remarks: Long before and ever since the independence of the Spanish-American states, till by the acquisition of California by the United States, most of the capital invested in the commerce of this country was of European origin. This source of capital would naturally cause the streams of commerce to flow in the direction of its supply. This trade was unusually rich to its early founders and their successors. Our commerce in those days was struggling for an existence, and sought the old and wellbeaten tracks with the Old World, content with sure but small profits with all engaged in such trade. In the earlier days of the existence of the Spanish-American republics, this country was almost a terra incognita to our merchant marine, and the old established European houses were permitted but with little competition to hold the control of this commerce in their own hands. Although the people of this country have always expressed an ardent admiration for our political institu. tions, and have imitated us in constructing their fundamental laws, yet it cannot be denied that the feeling of hatred and rivalry existing long ago between the Latin and Saxon races still holds sway in the minds of the masses of the present populations of the Spanish American states, the descendants of the old Latin stock of the south of Europe. In our recent contest this old leaven would crop out on all convenient occasions, and it is now easily discernible in the great contest raging in Europe. This animus, no doubt, has had a great deal to do in checking the growth of such feelings on the part of those people as would promote a more cordial and closer sympathy between us. I have no doubt of the truth of this singular feature of the Spanish character as exhibited on this continent. Even now, within my limited knowledge of the capitalists of this country, at least a majority of all engaged in business in this country are Europeans, or are intimately connected with European houses. Of course, the products of this capital would seek their Central American states are as yet in their infancy. The capacity of production at present is very limited, owing to the great want of labor. Emigration has never yet brought to these shores the brawny arm of the stalwart laborer to take his place as an artisan or as the tiller of he soil. The few that have come are lured by the brilliant and fasciating ignis fatuus of the gold and silver mines. In this search after the idden treasure hope soon becomes exhausted, and they retire discourged and disgusted with everything pertaining to this country. Unertain as the dependence upon native labor is, it is as yet the only ource of supply to those engaged in either agricultural or manufacturng pursuits. Nature has done so much for the inhabitants of the tropics as to preclude all necessity for much effort on their part to enjoy a comfortble existence. How long this state of things will exist can only be told n the future. Agriculturists of this country are now looking to the lensely populated regions of China, and before long the experiment of an importation of coolies will be tested. The aggregate amount of the products of the countries bordering on he Pacific Ocean, and which are now diverted from the United States, s very great, and they must soon be vastly augmented if this Chinese problem is successfully solved. Intelligent minds agree, with wonderful unanimity, that the construcion of an interoceanic canal by and under the influence and control of the United States will, more than all other causes combined, tend to oring directly to our own harbors and docks the rich products which are now taken from us in foreign bottoms. The bulk of the trade of most of the products of the states south of Panama is now transported n foreign bottoms through the Straits of Magellan to the markets of Europe. The high tariff of tolls over the Panama Railroad, with the great resources of the Pacific Steam Navigation Company, (a British company of unlimited means,) has conduced to this state of things. A project s now entertained, I believe, by this same company to extend their ines up the coast as far as Guatemala, so as to reach the cotton, the coffee, indigo, sugar, and other rich productions of that region. In conuection with this subject, I will mention a conversation I recently ad with a very intelligent person doing business in this isthmus; e said he had it from undoubted authority that a secret arrangenent had been made and entered into between the Panama Railroad Comany and the British Royal Mail Packet Company, by which the raiload company agreed to withdraw their line of brigs between New York nd Aspinwall, and to place a fourth boat on their Central American ine. By this line from Guatemala to Southampton and London, they ope to be able to ship all products from Central America directly to England, thus despoiling us of what we are now receiving. The great ill in Panama Railroad stock is said to have been caused by this new rrangement. Fourteen per cent. of their usual annual dividend, with he sales of their lines of brigs, with their new steamer Winchester, was aid to be the amount invested as their share in this new company. When the sails of our merchant marine can pass from our ports unbstructed on this isthmus, then may we expect our commerce with the outh American states, and also with those of Central America, to be astly increased; and then we will have the advantage of all other ations in contending for the rich trade which will then float upon the road surface of the Pacific Ocean, even to its most western borders. The citizens of the United States residing and doing business on this past have witnessed with much approbation the patriotic and national proposition of our worthy and popular Chief Magistrate to the Congress of the nation, in regard to the survey and early completion, if practicable, of a canal that will bring them immediately into the marts of the world. The proposed subsidy of a line of American steamers running from Panama to Valpraiso and back is also a measure full of incentives to a revival of our tade, and the withdrawing of it from foreign bottoms. This, in conjunction with a revised and lessened railroad tariff, is a consummation devoutly wished for, and much and great disappointment was felt by all American citizens when its failure to meet the approval of Congress was announced to us. For the statistical details of our imports and exports through this isthmus, I respectfully refer you to the annual report accompanying my report for the quarter ending September 30, 1870. O. M. LONG. No. 7.] No. 199. Mr. Raphael M. Columbus to Mr. Fish. UNITED STATES CONSULATE, Paita, Peru, September 24, 1870. (Received October 14, 1870.) SIR: In answer to a circular I received from the Department of State, dated 19th August last, requesting me to communicate any information and to make any suggestions that may tend to increase the commerce between the United States and the Spanish-American countries, I beg to submit the following remarks: The exports of Peru are cotton, wool, bark, orchilla, hides, goat-skins, sugar, silver, and guano. The most important, and by far the most wealth producing of these articles is guano, yielding an enormous revenue to the government, with very little expense. This is shipped chiefly to Europe for manuring the worn-out and exhausted lands of the old countries, while the new lands of the United States do not require that stimulant. Hides and goat-skins are nearly all sent to New York, where they are skillfully and rapidly converted into manufactured articles. Sugar is shipped to San Francisco, the vessels bringing back a return freight of lumber and flour. Cotton and wool are sent principally to England and France. The reason is very obvious; the United States produce more cotton than is required for their own manufactures, and they consequently export the balance to Europe, while England produces no cotton, but she imports and manufactures large quantities of it. Orchilla is also shipped to England, where it is in great demand on account of her cotton manufactories. Bark is sent exclusively to England, there being no demand for it in the United States. The cargo traffic from here to England, via the Isthmus, consists mainly of cotton, orchilla, and bark; and the reasons I have already adduced above may partly explain why it should seek Liverpool and London rather than New York. England produces very little raw material, but she imports it in great quantities to be sent abroad again in manufactured goods. The United States is not only a manufacturing country, but also produces raw material in great abundance, so much so that she has a surplus to export to Europe. The reasons why a greater quantity of European than American goods is imported into this country are various. First, an English line of steamers was early established on the coast, which had the effect of |