vious terms. In this state of feeling large transactions followed at higher prices, mainly, however, in Young Hyson and Japan qualities, (the latter refined Greens,) which brought from 50 to 52 cents for cargo grade.

The tariff bill, imposing a duty of 15 cents per lb. on all descriptions of tea, passed Congress on the 18th July, and took effect on the 5th of August. This circumstance gave rise to a large speculative movement, which resulted in a further advance of some 4 or 5 cents per lb.

The impulse given by the new tariff was, however, checked by the disaster that, about this time, befel the Union arms in Virginia, and for a while business was prostrate; but towards the end of August the advices received from China proved wholly unpromising with reference to shipments of Green teas, and this fact, coupled with that of the rapid reduction of the stock in market here, served to further enhance their value. The advance initiated by the new duty continued during the remainder of the year; and under its influence, as well as that of a constantly diminishing stock, Green teas reached a price unknown for many years; certain qualities of Gunpowder bringing as much as a dollar per lb. The following are the highest and lowest figures of the year:

Cents.

Green-Hyson, cargo grade, in Jan., 1861, 37 @ 40

Young Hyson,

Cents.

In Dec., 1861, 75 @ 82

36 @ 40

Hyson Skin,

In our report of 1859 reference was made to Japanese tea, which had then just come upon our market, and for which there seemed to be a growing taste.

The expectations of the trade have not been disappointed. This description of tea is now established in public favor, and the importation has increased from a mere nominal quantity in 1859 to nearly half a million of pounds, the estimated receipts of the past year.

Raw Silk.-The importation of this article into the United States during the year 1861 shows a falling off of about one-third from that previously noticed, and may be stated as follows:

Of the above, 142 bales Taysaam came from London.

Our manufacturers of silk goods have not escaped the evil effect of the times. The demand for their products has been small, and for hardly any variety of fabric beyond sewings and twist. Under these conditions. they have been constrained to buy sparingly of the raw material, notwithstanding that prices have, as a general thing, ruled in their favor. The fluctuations are shown in the following table:

Japan silk, which was on its trial among our manufacturers when we last reported, has been found excellent in quality, and the finer sorts are, by some workers, held to make a better twist than those of Canton. The importation of Japan silk is likely to be materially augmented, since, if the accounts from that country may be relied on, the annual crop does not average less than 75,000 to 80,000 bales, affording ample margin for foreign shipments.

In silk piece goods, the trade has virtually ceased. Since July last, a few scattering packages are all that have found their way hither. The same may be said, with slight qualification, of the miscellaneous articles that were wont to be used in completing a vessel's cargo, such as matting, fire-crackers, palm-leaf fans, cassia, &c. These have all been, and still continue, in such superabundance, as to cause great loss to sellers, and, by consequence, to prevent present importation.

The sole article of cassia may be named as forming an exception to the great depression that pervades this description of merchandise, owing to its having been subjected to a duty of 10 cents per lb., which caused it to rise from 16 @ 17 cents per lb. to about 32 cents, the actual quotation.

With this brief review of the import trade, we proceed to offer a few details in the matter of exports, wherein the figures show a large falling off from those before presented.

Cotton goods, which form the great bulk of shipments from the United States to China, exhibit, by comparison, a heavy decrease.

In 1860, the quantity sent to that country was 34,910,509 yards, valued at $3,139,022, while the current year shows but 23,230,777 yards, costing $1,960,496. It is proper to remark, that these shipments were made early in the year, and before our political disturbances bore the threatening aspect that they subsequently assumed. Had the goods been delayed till the season was well advanced, doubtless we should now have to record an export of the most limited character, by reason of the great rise in price that ensued. Drills that were bought in the latter part of 1860 at 84 cents per yard, rose gradually to 17 cents. These rates alone would have sufficed to debar exportation; but added thereto were the facts of large stocks in the China markets and a slackened demand consequent upon the unsettled state of that country. These depressing causes still prevail, to some extent, and we are yet to see an advance at all corresponding with the home value of this description of goods.

Coal, which in our previous report figured for 30,542 tons, fell to 19,502 tons the past year, and the results to the merchant have proved, in the main, unsatisfactory.

The number of vessels cleared for China from Boston and New-York, in 1861, reached 41, thus classified: 20 ships, 15 barks, 1 brig, 1 schooner, 4 steamers.

The large amount of foreign tonnage that had accumulated in China

waters at the period of our last report, continued for many months unable to find remunerative employment; but at length the return of troop ships to Europe, the loss of others and the inability to secure eastward freights, these and other causes served to reduce the vessels seeking business in that quarter of the globe to a comparatively moderate number, until those that remained were fortunate enough to obtain paying rates both for the United States and Great Britain. These advantages, it should be remarked, were not confined to American vessels. The apprehension that existed of Southern depredations on the commerce of the North led to the shipment of many cargoes in English bottoms; and while we write numerous vessels bearing the flag of that nation float in our harbor, loaded chiefly on American account. Further arrivals are expected, thus swelling to an important amount the British tonnage that has found employment in consequence of the Southern rebellion. At this date, no American vessel in the China trade has been captured by the Confederate privateers, and the earlier fears of extensive depredations have given place to a considerable degree of confidence in the safety of homeward-bound ships, as the marauding expeditions of the rebels are limited to short distances and chance encounters with unprotected craft.

An interesting event of the past year, in connection with the China trade, has been the greatly increased rapidity of communication between that country and the United States, by means of the Pacific telegraph. Shortly after the completion of this important line, we were put in possession of Hong-Kong advices to the 4th January, 1862, in just forty days. The news was brought to San Francisco by the Charger, sailing vessel, which made the passage from Hong-Kong to San Francisco in thirty-nine days. How much this time is to be shortened by the application of steam to Pacific navigation, it is hardly necessary to compute while the present quiet touching that great desideratum lasts; but the proposition is too simple to allow any reflecting mind to doubt the striking advantages of such a plan, which, be it said, has more than once engaged the attention of this Chamber.

Meanwhile the ramifications of the British telegraphic system are being rapidly prosecuted, and ere long London will be found in unbroken. connection with the far East, through the medium of the electric wires. Recently intelligence was conveyed from Bombay to England in fourteen days.

From the foregoing sketch it will be perceived that China has proved no exception to the diminished commerce with foreign countries, that we have experienced in consequence of our national troubles. The political situation of the Chinese empire is, at this moment, critical, owing to the headway obtained by the rebellion, that for several years has been surging over the country.

The death of the Emperor, in August last, does not seem to have caused any change of polity, and it is generally supposed that the faith of treaties will be observed. Meanwhile the insurgents are pursuing their desolating course-burning cities and villages, and robbing such of the wretched inhabitants as escape the sword. In their career of plunder they have, at many points, interrupted or stopped completely produce on its way to the seaboard, laying most onerous taxes on the unprotected agriculturists, and, in some cases, wantonly destroying their property.

In the present state of affairs in China the question of supplies of tea for this market becomes one of great interest, and of difficult solution. Should the insurgents hold sway in the green tea provinces, which have long been the theatre of their exploits, doubtless the same obstacles will be thrown in the way of trade as heretofore, and similar results may be expected. By the more recent accounts, however, it appears that after seizing Ningpo the insurgents, in large numbers, had threatened Shanghai. Their approach had aroused the foreign residents of that city to the necessity of co-operating for mutual safety, and it was not doubted that they would be able successfully to defend themselves, if, indeed, they should not extend their protection to the inhabitants of the city and its environs. From this circumstance may, perhaps, be developed a power that will exercise a marked influence on the further movements of the insurgent armies. Be this as it may, the future of that region promises to be eventful, and such important changes as are now in progress it will be our duty to notice in the report for the coming year.

On a former occasion we briefly touched upon our trade with Japan, the prospective importance of which calls for some comment at this time. We say prospective, because the impediments that have been thrown in the way of foreign business by the Japanese government have thus far prevented the development that would naturally have grown out of untrammelled intercourse with a country so fruitful in products. The foreign trade is subjected to many restrictions on the part of the native government, who entertain, it would seem, a strong jealousy of the foreign merchant, subjecting him to many annoying and injurious measures, such as stopping produce in its transit from the interior to the coast, fixing an arbitrary rate for exchange, and opposing his advance towards the more central marts.

These and other obstacles, thrown in the way of commerce, it is hoped will eventually be overcome by the judicious management of those representatives of foreign powers who, having become in some degree acquainted with the habits and customs of the Japanese people, understand and appreciate the difficulties that beset the native government on questions of foreign policy. While defending the rights conveyed by treaty, as far as may be consistent wtth the dignity of the contracting powers, yet the British and United States ministers have not, we are informed, deemed it advisable to exact the letter of the agreement, in the face of ignorant prejudice, and yielding a temporary acquiescence to the wishes of the Japanese authorities, have waived, for awhile, the opening of Yedo, which, by treaty, was to be made a port for foreign commerce on the 1st of January, 1862.

Hitherto American cotton goods have met but little favor with the Japanese traders; such as have been disposed of in the market of Kanagawa have been mostly bartered for tea. It is expected that our manufactures will gradually become liked, and the sale, consequently, increased. This is the more desirable, since the Japan teas promise to become a staple import into the United States.

The shipments of lacquered ware and fancy goods generally, from Japan to this market, have not been large, nor, it is believed, profitable; but a better condition of our home trade would probably have shown more favorable results.

PETROLEUM, EARTH, MINERAL OR ROCK OILS.

By JAMES L. BUTLER, Member of the Chamber of Commerce of New-York.

THIS article has, with a bound, placed itself in the front rank of commerce. It is but a few years that the public has known any thing of this valuable product of the earth. First collected by the Indians in their rude way, by throwing a log across a stream where the dark green oil was floating, and when a sufficient quantity had collected, soaking their blankets in it, and extracting the surplus oil from the same, using it for medicinal purposes.

A similar oil was discovered in Seneca county, State of New-York, and for many years it has been sent to market, in a small way, called "Seneca oil," and sold at high prices, also used for medicinal purposes. In 1859, however, the greatest impetus was given to the development of this article, of which so little was known before. During this year, within the counties of Venango, Crawford and Warren, in the State of Pennsylvania, was witnessed the busy scenes of thousands, who were either boring for wells, the lucky owners of the soil upon which they were bored, or in various ways interested in the obtaining, furnishing cooperage, manufacturing and transporting this valuable oil. California, in its palmiest days, scarcely exceeded the busy scenes daily enacted around these wells; money changed hands rapidly, all was excitement. The news spreading far and wide, brought in speculators; steam engines were called into requisition; wells were bored on both sides of the lucky little stream called "Oil Creek," and the busy hum of machinery was heard early and late. Towns sprung up as if by magic; accommodations for man and beast were in great demand; and the scene often witnessed for months together of over-crowded dwellings, hard fare and inconveniences submitted to that would hardly be believed by outsiders.

The yield of oil from boring and flowing wells has been enormous, probably yielding, up to this time, April, 1862, fifty millions of gallons. The county of Venango alone, in 1861, yielded twice the quantity of oil that was ever landed on our shores in one year from the whale fisheries.

The price of illuminating oil has fallen, in New-York market, from seventy-five cents and one dollar per gallon to twenty-five cents. Improvements in its manufacture are daily being made. The early make of oil resembling dark sperm or whale oil in color, has, by reason of the demand for light-colored oils, compelled the manufacturers to improve its color, so that the oil most sought after is almost colorless, resembling water. This is accomplished, however, at the expense of losing a portion of the oleaginous properties of the oil, sacrificing for looks much that is valuable. The public are, however, persistent in their demands for lightcolored oils, and the manufacturers are compelled to yield to its require

ments.