observed also that in 1889 they were less than the previous year. It appears, in fact, that in 1888 they amounted to $4,393,258, or $129,739 more than in the year following.

Unlike what has been said of Colombia, Mexico, the Central American Republics, and Venezuela figure in the statistics as having exported more to the United States in 1889 than 1888. With regard to Mexico it would perhaps not be exaggerating to say that, taking into consideration the total amount of its export trade, the increase is somewhat remarkable, for it appears that in 1889 Mexico sent to this country products to the value of $21,253,601, or $3,923,712 more than in the year 1888, in which it only exported to the United States $17,329,889. The Central American Republics, which in 1888 exported to the United States $7,623,378 worth. are put down in 1889 for $8,414,019; that is, with an increase of $790,641. The increase of the exports of Venezuela is less noticeable, because in 1888 they were $10,051,250 and $10,392,569 in 1889, making a difference of $341,319 in favor of the latter year. The difference between the exports of Colombia in 1888 and those of 1889 is, however, of slight amount ($129,739), and may be easily and satisfactorily explained by the decrease of value in this market of some of the principal articles which Colombia exports. The difference is certainly of value and not of bulk.

According to the recent report of the United States Treasury Department, the exports of Mexico, the Central American Republics, Colombia, and Venezuela to this country during the last ten years are as follows:

Upon examination of the above table it is evident that the exports of Mexico, Central America, and Venezuela to the United States have increased notably in the last few years, while those of Colombia have decreased. With regard to Mexico, it is seen that the exports in 1889 exceeded those of 1880 by $14,040,000, which means an increase of twothirds. The exports of the Central American Republics, which in 1880 were only $3,310,000, amount in 1889 to $8,414,000, making an increase of $5,104,000 in the course of ten years. Venezuela, which in 1880 exported $6,040,000, increased its exports $4,352,000 in 1889, since in that year they amounted to $10,392,000. On the other hand, Colombia,

which in 1880 exported to the United States products to the amount of $8,440,000, saw its exports reduced in 1889 to $4,263,000, which marks a falling off of $4,177,000, equivalent to one-half.

With regard to the importation of American merchandise, comparing that of 1880 with that of 1889, it is also observed that while those of Mexico, the Central American Republics, and Venezuela have steadily increased, those of Colombia have decreased in a marked manner. Mexico, which in 1880 only imported $6,070,000 worth, imported $10,890,000 worth in 1889, and there was one year (1883) in which its imports amounted to $14,370,000. Those of the Central American Republics, which in 1880 only amounted to $1,730,000, reached $4,150,000 in 1889. Those of Venezuela, which were only $2.270,000 in 1880, passed $3,000,000 in 1888, and in 1889 amounted to $3,700,000. Those of Colombia were $5,230,000 in 1880, $5,180,000 in 1881, $6,230,000 in 1882. $6,720,000 in 1883, $6,170,000 in 1884, $5,400,000 in 1885, $5,290,000 in 1886, $5,970,000 in 1887, $4,920,000 in 1888, and $3,730,000 in 1889. There was, therefore, a decrease of $1,500,000 in the importations of the last-named year as compared with those of 1880.

The decrease of exportation from Colombia to the United States began to be felt in a marked manner in 1881. In fact, from $8,440,000, the sum reached in 1880, they fell to $5,990,000 in that year, showing a decrease of $2,450,000. They were still less in 1882, since they only reached $4,960,000; and although a slight rise of $290,000 is noted in 1883 over the previous year, the decrease is still more notable in 1884, in which they only reached $3,890,000, or less than half of the amount reached five years before. The marked diminution of the exports of 1885, in which year they only amounted to $2,340,000, and those of 1886, which scarcely reached $3,010,000, is explained by the civil war in which the country found itself at that time; for, after order was reestablished, it is seen that they not only recovered their previous level, but underwent an increase, although but a slight one, over the exports of 1884, the year immediately preceding the civil war.

Upon comparing the importation of American merchandise entered at Colombia during the years 1885-'87 with the exports made from Colombia to the United States in the same period, a considerable inequilibrium is observed. It is moreover to be noted that the excess of imports over exports reached the sum of $1,270,000 in 1882, $1,550,000 in 1883, $2,280,000 in 1884, $3,060,000 in 1885, $2,280,000 in 1886, $2,020,000 in 1887, and $530,000 in 1888; making a total of $12,990,000 in seven years. The year 1889 already exhibits a difference of $530,000 in favor of exports; and everything leads one to believe that in the current fiscal year they will exceed the imports. The inequilibrium observed is, however, easily explained.

At the same time that the decrease of exportation commenced in Colombia the work of excavating the canal was begun at Panama, and the Isthmus increased considerably its importation and consumption, paying for them not with its own products, but with the money belong

ing to that enterprise. The difference between the importation and exportation above noted was not liquidated with specie sent out by Colombia, nor by the sale of Colombian-articles in European markets; it was paid from the funds of the French stockholders. This explains why, while the exports of the years 1885-'86 fell to so low a figure on account of the disturbances in the peace of the country, the imports did not decrease in those years in the same proportion. The consumption of the Isthmus increased while that of the rest of Colombia diminished. But the diminution of the work on the canal in 1888, and its final suspension in 1889, brought with it a reduction in the amount of consumption. This explains the notable decrease of importation during those years. The exceptional circumstances in which the Isthmus of Panama found itself from 1881 to 1888 increased the consumption of foreign goods in an extraordinary manner; but they in no wise contributed to augment either the exports of the rest of the country or of that region itself. Since the imports of the country are at present reduced to what can be paid by exports, the figures of both in the year 1889 show us what is the amount of commerce between Colombia and the United States in normal conditions.

Among the intertropical countries of America, Colombia has perhaps been the most deeply affected by the decline of commerce and industry which, with variable intensity, has made itself felt all over the world during the last fifteen years. None of them have seen, as Colombia has, their exports so greatly diminished, nor found themselves, as she has done, on account of her peculiar topographical condition, surrounded by so great obstacles to utilizing the forces which the decay of her ancient industries has left idle. With regard to tobacco, which was previously cultivated in abundance and exported to the value of several millions of dollars, it may be said that at present only a sufficient quantity is produced for home consumption, since exorbitant customs duties, which might be called prohibitive, have driven it away from the former markets.

The exportation of cinchona bark has entirely ceased. In order to appreciate properly the importance which this product had in the external trade of Colombia, it must be borne in mind that on account of the immense quantities of it exported from that country, her exports to the United States amounted to $12,284,063 in 1875, or $8,021,000 more than in 1889; and in order to estimate the influence which the production of Colombia had in the market of that product, it is sufficient to recollect that quinine (which is extracted from it), that in 1876 was only sold at the rate of 6s. 9d. per ounce, in 1877, on account of an interruption in the exportation of cinchona from Colombia occasioned by civil war and obstructions to the navigation of the Magdalena River, went up to the unheard-of price of 16s. 9d. ($4.70) per ounce. The price of this chemical product began to fall in 1879, and from 1883 onwards it declined with such rapidity that the current price in Europe in 1887 was only 18. 6d. ($0.30) per ounce, or even still less. The last quotations

of the London market give this same price in the present month to English quinine, and 1s. 3d. to that of German production.

The decline in price of an article of such general and constant consumption as this is not difficult to explain. It is a well-known fact that ten or twelve years ago the production of cinchona was a kind of monopoly with some countries of the northern part of South America, where the tree producing the bark grows wild in surprising profusion. But the carelessness, lack of method and system in the collection of the bark gave rise to the fear that the production of so necessary an article would greatly decline, and perhaps even become exhausted, and actuated by this fear, the Governments of Holland and Great Britain decided to attempt the cultivation of the cinchona tree in their colonies of Java and the East Indies. The first seeds and plants were carried thither from South America in 1861, and the first exportation of bark from that region to Europe, consisting of only 28 ounces, was made in 1869. The production of it in the island of Ceylon was growing so enormously from year to year that in the year of 1882-'83 6,925,000 pounds of it were exported from that place; from 1883 to 1884, 11,500,000 pounds; and from 1885 to 1886, 15,364,912 pounds.* The exportations of Java have been smaller in quantity, but not less important, since in 1887 they exceeded 2,200,000 pounds. The necessary result of such an immense production was the rapid decline in the price of this raw material and of the article extracted from it. To this depreciation further contributed two other causes, the influence of which it is impossible to ignore. In the first place, the South American bark generally yielded but 2 per cent. of sulphate, while that of Ceylon and Java, due to the cultivation of the tree, produced from 8 to 12 per cent. In the second place, because of the discovery and employment of new and more economic processes, there can actually be obtained, with less expense and in the course of three or five days, a greater quantity of quinine than was before extracted in twenty days by means of the processes which were then employed.

The exportation of cinchona bark from Colombia having entirely ceased, a greater impulse was given to the cultivation of coffee, until this product became the principal article of export. But coffee, like hides and all the natural products which Colombia exports, has suffered an enormous decline in the market because of competition with other countries which produce them with greater advantages; and thus is explained why an increase in the volume of exports does not signify for Colombia a proportional increase in the value of the same.

Colombia, like other Spanish American countries, contends with the difficulties which nature has opposed to convenient, rapid, and economi

* According to the last statistics the production of Ceylon has been diminishing since 1886. It appears that from 1886 to 1887 it was 14,389,184 pounds; from 1887 to 1888, 11,704,932 pounds; and from 1888 to 1889, 10,798,487 pounds.

cal communication in its own territory, and which make the transportation of its products to the sea-coast extremely difficult and expensive. It is this lack of ways of communication and of transportation which constitutes the most powerful obstacle to the economical and industrial development of those countries.

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Because of the imperfect and backward state of the means of transportation employed the exports are limited to articles which, of small volume and little weight, are intrinsically valuable; and with respect to said articles they are compelled to challenge the competition of producers who, disposing of abundant capital and provided with improved implements of labor and easy, economical, and rapid means of transportation, offer these same articles in the market at prices which are occasionally ruinous for the producers who do not possess identical advantages for their production and transportation. 'Railways and steam-ships," said the French economist, Leroy Beaulieu, "are the levelers of prices; there is no influence so potent as theirs." The general depreciation of articles of universal consumption confirms this opinion, should such statement need demonstration. Wheat, wool, cotton, silk, petroleum, linseed-oil, coffee, and tea, copper, lead, iron, quicksilver, silver, tin, coal, quinine, paper, nitrate of soda, beef, sugar, hides, cheese, and fish are articles of universal consumption, and their actual price is much less than fifteen years ago, due to a greater and more economical production, stimulated by the increase of consumption, caused by the facilities and low rates of water and land transportation.

The decline in the price of some of these articles is really surprising. Thus, for example, refined petrol um which in 1873 was worth 23.59 cents a gallon, fell in 1887 to 64 cents. Refined sugar, in bond for export, which in 1880 was only worth 5.08 cents a pound in New York, declined still more, and there was a time (July, 1887) when it only brought 2.374 cents a pound. Salt beef for export, which averaged in the United States in 1884 only 8.2 cents a pound, dropped to 6 cents in 1886. Salt pork declined during the same period from 8.2 to 5.9 cents; bacon and hams from 9.6 to 7.5 cents, and lard from 9.4 to 6.9 cents. The immediate and necessary effect of the present system of transportation by railway and steam-ship has been uniformity in the prices of the necessary commodities and the final disappearance, in all civilized countries, of local markets with enormous differences in the prices of such articles. ́t does not happen to-day, as formerly, that the loss of the crops in a province, or even in an entire country, will expose the inhabitants to the horrors of famine. An eminent American economist has well said that the railway and steam-ship have already decided that in the future there will be but one market for cereals-the world; and he adds that abnormal prices in one country or market, or excessive reserves in one center or another, will be surely and rapidly neutralized and controlled by the influence of all countries and markets.