promises to be so vast a trade our merchants should take the utmost care to begin right. Win the confidence of the people, by selling a safe oil, and not throw upon the Chinese market quantities of the low grade, highly dangerous for domestic purposes, even among those familiar with its use. Pains should be taken to impress upon the merchants also, the wisdom of securing a lamp that will burn the oil with comparative safety. I am informed on the best authority that lamps of this character can be made at home, and sold for three cents. This price is within the reach of the poorest Chinaman. Once Chinese artificers know how to manu. facture these lamps and you have done much towards strengthening the trade. JOHN RUSSELL YOUNG, LEGATION OF THE UNITED STATES, Minister. Peking, December 19, 1883. PETROLEUM TRADE AT HANKOW. Consul Shepard to Minister Young. I have the honor to submit the following in response to your No. 24, of date December 10 ultimo, regarding the trade in petroleum. I do not learn of any noticeable interruption to the use of the article among the native population of my consular jurisdiction by official action during the year 1883. Indeed, the only effort of this kind within my knowledge was in connection with the political troubles in May last, which were fully communicated at that time. That disturbance gave a greater or less degree of to the people generally; and from time to time rumors of new troubles continued to arise. Some three months since such a report was very current in the capital city of Thu Chang, across the river, directly opposite Hankow, and the officials took efficient steps to prevent the possibility of trouble which they evidently feared. As a precautionary measure, and to prevent incendiary conflagration, the authorities issued prohibition of the use of kerosene by the natives in Wu Chang but allowed it to the Americans resident there when introduced at the gate, accompanied by the consul's pass. The arrangement still continues, but beyond that I know of no hostility at present in official circles to the trade, in or use of, the product anywhere in my consular dependencies. In the mean time both trade and consumption are constantly increasing. In support of this statement I subjoin the importation through the foreign customs at this port for four consecutive years, quarter by quarter: Table showing the importation of kerosene at Hankow from January 1, 1880, to December 31, 1884. It will be noted that with the exception of 1881 there has been annually a great increase in quantity of the article consumed. The disturbance of the trade in 1881 has been commented upon in my previous report, and need not again be referred to. The increase of 1882 over 1880 was 198,817 gallons, equivalent to 69 per cent., while the increase of 1883 over 1882 was 838,797 gallons, equal to 173 per cent. The increase of 1883 over 1880 was 1,037,614 gallons, amounting to 363 per cent. of growth in three years, or nearly 125 per cent. average annual extension of the trade. Probably an important cause of the increase of last year was the deficit in native oil, the crop of which was almost a failure. To the foregoing quantity should be added the import of Kiukiang as a dependency of this consulate. I have not the amount of the year 183, and some delay would be necessary in obtaining it, but in 1882 there were 48,510 gallons entered at that port, and an increase will undoubtedly appear for the ensuing year. An interesting and important feature of the trade is the distribution of the product to the interior under transit pass. As I have fully explained in my last annual report to the Department of State, this branch of commerce is entirely in the hands of foreigners, although the goods sent inland are, as a rule, undoubtedly the property of natives. But the natives do not send foreign goods inland, although they have the same right under the treaties and trade regulations to do so. For obvious reasons they do not think it wise to use the privilege, but employ foreigners to do the business for them. I present the amount of such distribution in the provinces of Hupeh, Hunan, Honan, Szchuan Kweichow, Shansi, and Kwangsi. The largest quantity went into Hunan and the smallest into Shansi. By inspection of the map it will be seen that these provinces embrace the entire limits of the empire from north to south, and every province to the west except Yunnan, including, probably, three-fourths of the territory of the empire. A beginning of the trade in, and demand for, petroleum, thus extensively made, is not likely to show any dimination in future, but an increase may be reasonably looked for corresponding to the vast area of country to be supplied. There may be temporary impediments, but, as in the past, and in other countries, the progress will not retrograde. The proportion of increase in the inland demand may be deduced from the following table, showing the distribution by inland transit passes of petroleum from January 1, 1880, to December 31, 1883, by quarterly periods: I have endeavored thus to present the traffic in an understandable form without prolixity. Mr. Libby's pamphlet I have read with interest, but I still think an illustrated popular treatise in Chinese would be of infinite service in making the nature, uses, and proper care of the article known, and thus extend the demand. ISAAC T. SHEPARD, Consul. UNITED STATES CONSULATE, Hankow, January 4, 1884. PETROLEUM TRADE OF NEWCHWANG. Vice-Consul Bandinel to Minister Young. In reply to your dispatch 24, concerning kerosene oil, I have the honor to state that the Chinese authorities have in no way interfered with its sale and consumption. The quantity imported has been, in 1882, 6,445 gallons; in 1883, 8,160 gallons. Importation in 1881 reduced prices to a point at which they paid little or no profit; prices this summer were $2 per case; at present there is none in stock, and the last retail price obtained was $5.50. In compliance with the request contained in your dispatch No. 28, of December 10, 1883, in which you informed me that the body of information received in my dispatch No. 23, of January 17, 1883, was found of value to the Department of State, and that you desired further information from this port regarding the petroleum trade, and more especially how the importations of the present year compared with preceding ones. I have the honor to herewith submit the following figures, giving the importation of kerosene oil into the port of Ning-Po for each year, from January 1, 1874, to January 1, 1884: A glance at the above figures tell their own story better than words from my pen could. The trade for the past year has not equaled the preceding one for reasons known to you perhaps better than myself. Every branch of commercial industry after it has once been established has its fluctuations. This particular branch of our national industry is somewhat peculiar. As I purpose to write to the Department of State very shortly regarding the petroleum trade at this port, giving a little history from its first inception to the present time, also regarding the quality of oil as first received and that which is now being delivered, I do not suppose it would further this branch of our commercial industry by giving my views utterance in a crude state at the present time. I may, however, add that there is nothing inimical to the interest done within the district by any of the officials that I know of. UNITED STATES CONSULATE, Ning Po, January 22, 1884. EDWIN STEVENS, Consul. PETROLEUM TRADE IN SHANGHAI. Vice-Consul-General Cheshire to Minister Young. In answer to your dispatch No. 102, I have the honor to submit the following remarks upon the trade in petroleum at this port, which, has increased steadily during the past six years. Though Shanghai, unlike some of the other treaty ports, has been free from any direct official interference with this important branch of American trade, in the shape of proclamations against the use of kerosene, as was the case some two years ago, yet it cannot be said that the trade has not been indirectly interfered with, for it has by the levying at the barriers, in the country adjacent to the port, of a lekin tax of 5 cents per case. No such tax previous to last year was ever levied by the lekin authorities, and it is said it has in a measure resulted in diminishing the consumption at the inland towns which Shanghai supplies. Official remonstrance was made by this office against the levying of this tax, but to no avail, the lekin authorities claiming that it was a legitimate exaction, and that they had a perfect right to levy the tax upon the oil, as it has passed in the hands of natives, and besides this, when transported in the country and not protected by transit pass must be subject to the payment of lekin the same as other articles. Shanghai supplies oil to all the ports from Foochow south to Newchwang north, inclusive, i. e., Newchwang, Tientsin, Chefoo, Chin-Kiang, Wuhu, Kiu-Kiang, Hankow, Wenchow, and Foochow. That kerosene as an illuminant is increasing in popularity among the Chinese the statistics of the past six years show, and it is satisfactory to note that in spite of official remonstrance and other movements which have from time to time been made to impair its development, the trade steadily increases each year. With a view to place before the Chinese an account of the advantages and harmless nature of kerosene, its cheapness and brilliancy as compared with other lights, Mr. W. H. Libby has had prepared a circular in the Chinese language, and at his request this office is sending them to our various consulates for distribution among the natives in their several districts. F. D. CHESHIRE, UNITED STATES CONSULATE-GENERAL, Shanghai, January 4, 1884. 17A-No. 42-7 PETROLEUM TRADE AT TIENTSIN. Vice-Consul Pilcher to Minister Young. I have the honor to acknowledge the receipt of your dispatch No. 41, dated December 10, 1883, requesting certain information in regard to the condition of the petroleum trade of this port, and in reply I beg to submit the following statements: The import of kerosene oil at this port during the year 1883 has amounted to 398,340 gallons, as indicated by the books at the office of the imperial maritime customs, to which I have had access through the courtesy of the commissioner. It is further claimed that a large importation of the commodity is made in native grain junks, whose owners are allowed to import free of duty any cargo they may choose after the quota of grain is filled. Neither native nor foreign customs take official notice of this kind of importation, and consequently the amount can only be estimated, and by some authorities is said to be equal to fully one-fifth of the entire importation at this port. All the petroleum entered here is a re-importation from Shanghai, and, with the exception of 8,000 cases purchased by an English firm, was consigned to native merchants, and in the case of the firm referred to the oil was soon transferred to native parties, leaving the trade entirely in the hands of the Chinese. The following is a comparative list showing the amount of import and its variation for four years, including 1883: It will be noticed that in the above table the amount given for last year differs from the figures quoted by Consul Zuck in his dispatch No. 31, dated December 19, 1882; but it must be remembered that at the early date on which he wrote the customs returns for the year had not been completed. I would particularly call your attention to the fact that the importa tion for the year 1883 is largely in excess of any previous year, not excluding 1879, when the quotations indicated a gross import of 385,000 gallons. The native authorities at this place have imposed no restrictions upon the sale or use of the article, and though the cost at wholesale and retail has varied but little during the last two or three years the commodity itself is being more widely used throughout the country, especially along the water-courses where its transportation is easy and safe, and even away from the rivers it is found in use in all the larger cities of this and adjoining provinces. Before its introduction into the country the Chinese were restricted to the use of oils expressed from the bean, or from sesame and other seeds, varying in price from 8 to 10 cents per catty, or on occasions of |