with the company of hiring for work and guarding the telegraph, the local authorities, (guarding,) according to their means, will see to the fulfilment of their reciprocal contracts and agreements.

The government considers it inconsistent to grant to the company the full possession of territories for the exploration and construction of the telegraph; but the company can be allowed, for the unimpeded construction and repair of the telegraph line, and for the erection of houses for stations and dwelling-houses for workmen and people in service, and during the whole time of the term of privilege, to make use of the necessary land, and to employ, without taxes, for the aforesaid purposes, timber, wood, and materials, at places appointed by the government.

The expedition and tariff of despatches must be in accordance with the rules generally adopted for telegraphs; therefore the government despatches must have preference over private despatches, as agreed upon by telegraph conventions between Russia and the neighboring European powers, and, upon the whole, the order of transmission and tariff must be arranged according to the example of international conventions concluded between Russia and other powers. Therefore, before the achievement of the undertaking by the company, and before the beginning of operations of its line, the company must send to St. Petersburg a deputy with full powers for special agreement upon the aforesaid basis.

At all events, the tariff by which permission will be given to levy payment for despatches transmitted over their line must not exceed the tariff adopted in Russia.

For the encouragement of the undertaking by the company, the government can grant a deduction of 40 per cent. upon the net profits of despatches transmitted along the Russian telegraph lines solely to America and back, but finds it inconvenient to pay an annual subsidy of one hundred thousand dollars, because the mercantile interests of Russia with America are not very considerable. The principal benefits of the telegraph line projected by you will be derived by America, England, and France, and by the great commercial cities of Holland and the north of Germany, with whom the company can negotiate to obtain subsidy.

Besides, Russia, on her part, is giving considerable aid to the company by having consented in view of seeing the undertaking of your projected telegraph realized, to construct a connecting telegraph line from Verchne Undinsk to the point where the company's telegraph will join ours, a distance of some three hundred miles, requiring an expenditure of about nine hundred thousand dol lars. To have the construction of the intermediate line as projected to you upon your conditions, is considered inconvenient.

Finally, the Russian government will not begin the construction of her intermediate line before you will have presented an act about the final formation of the company proposed by you for the establishing of your projected telegraph, and likewise proof as to emission and sale of its shares, at least for onehalf of the minimum cost of your projected telegraph, and a production of a plan of the direction of the line finally selected and approved by your com

pany.

Performing the duties of chief director of ways of communication and public buildings.

Engineer Lieutenant General,

Director,

MELNIKOFF.

BARITCHEFFSKIE.

Major COLLINS.

H. G. O. CHASE-Vice-Commercial Agent.

JANUARY 27, 1863.

In accordance with directions given to consular officers by the United States consular regulations, I have the honor of submitting this report in reference to mercantile and commercial matters in the district of this commercial agency, more particularly in this port, Nicolaifsky, during the year ended December 31, 1862.

The export trade of this place and the country (via this port) up to the present time is of so very little importance as not to call for and hardly suffice for a detailed report; and what little trade there has formerly been appears actually to have decreased for a year or two last past in comparison with former years. Furs, particularly sables, have heretofore been among the most important items of that trade, but the season last past, from various causes, from the chief of which may be stated the great decline in value of the Amoor sables in all the principal fur markets of the world. This branch of trade has almost entirely ceased here, and there is no prospect at present of an early resumption of it to any great extent. Some trifling operations have also been made during the year last past in shipments of spars, &c., from this port, but as the local authorities as a rule do not allow of the exportation of such articles, the transactions made can only be considered as exceptions, and, therefore, may seldom or never be repeated, unless the government decides to permit such a trade generally.

One cargo of about 300 tons of ice was shipped from here in 1859 or 1860 to Shanghai, but no similar adventure has been made since, the result of that shipment being unfavorable, and the trade in that article from this port is a monopoly in the hands of the Russian American Company.

Coal of a bituminous character (which is found in considerable quantities on Saghalien island) has been shipped from there to some extent-say, last year, 500 tons by private parties.

ARTICLES OF EXPORT.

The articles of export from the interior of Siberia (i. e., the Trans-Baikal, and other adjacent provinces) via the Amoor, its tributaries, &c., are as yet so insignificant as not to require any notice in detail, and at this time there is no apparent prospect of any important improvement.

IMPORTATIONS.

While the exportations are so limited and unimportant, the importations to this place are considerably on the increase; and in comparison with the number and character of the inhabitants of the Trans-Baikal province, the Amoor country, sea-coast settlements, bordering upon the Gulf of Tartary, Kamtchatka, and the Ochotsk sea, (at and for which places quite all the articles arriving here from abroad are purchased and used,) are very great in amount; and as a whole, for a year or two last past, quite evidently much greater than required for the demand, although not always so proportioned in respect to quantities of different things as to furnish each year a sufficiency of all articles for which the country mainly depends upon importations to this port.

On the other hand, the majority of articles required for the market are oftentimes over abundant, difficulties which to all appearances arise from the fact of the trade being overdone, making all engaged in it very careful not to get an oversupply of merchandise. One of the main articles of the trade, both foreign and domestic, has formerly been spirituous liquors, which trade, H. Ex. Doc. 41-23

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however, from various causes, has lately much declined in importance. Prominent among these causes is, that spirit manufactured in Siberia and brought down the Amoor is sold from the companies' magazines on government account.

The country is without manufactures of any special importance, or any productions which have yet been made available for the purpose of foreign exchange trade, or for enriching the country or its inhabitants to any considerable extent by exporting the same, although the country is undoubtedly in places rich in minerals, timber, &c., and the soil capable of successfully raising the coarser kinds of grain, such as corn, rye, oats, &c., and there are also many places where there is fine grazing land, but to the profitable pursuit of these different sources of prosperity there has not yet been made any striking advance by the inhabitants of those sections of country, unless the production of rye, &c., and the yield of gold and other mines in the Trans-Baikal provinces and sections of country immediately adjoining thereto, are so considered; the former of which, however, is so comparatively limited that the annual shipments for six or seven years last past of supplies of rye, &c., for the Amoor Russian settlements, Kamtchatka, &c., from the Trans-Baikal province has had the effect of very much enhancing the price of such grain in that province; and the year last past the government supplies for this country were brought from Finland by sea, it is supposed, partially, if not wholly, with the object of relieving the Trans-Baikal province and surrounding country from a drain which was becoming too serious.

The production of gold and silver mines referred to are mostly, if not all, in the sections of country named, the property of the government, yielding no substantial benefit to the country beyond supporting the superintendents and laborers employed in them, and such advantages as occasionally arise from the purchase of articles required for the mines and for transportation.

The Trans-Baikal province and surrounding country has now been settled for so many years as to have had ample time more to fully develop its resources than has been done. No machinery of any importauce is made in the country. But another difficulty, which seems much more serious, is the character and habits of the bulk of the laboring population of the country, which is made up of released convicts, their descendants, discharged government men, mixed races of Russians and natives, and the natives themselves, whose former and present condition, in all respects, combined with their natural indisposition to exert themselves in the pursuit of some steady labor.

From all these particulars a conclusion can be formed as to the present state of matters of trade, commerce, and manufactures here, and also an idea of their prospect for the future. But in this connexion it seems proper again to state that the regulations of the government in these matters, which apply particularly to foreigners, are so very liberal as to leave little, if anything, to be desired on that score, and to this may, perhaps, also be added, with propriety, a reference to the very friendly sentiments existing among the greater portion of the Russian officials and people towards Americans.

TELEGRAPHING.

The government telegraph lines now in course of construction from this place to port Muy or Vladivostock, via the Amoor and Ousurca rivers, Lake Haukae, and from the southern end of that lake across a section of the country about one hundred English miles in extent to the port named, which is situated on the border of the Gulf of Tartary in about 42° 30′ north longitude, with a branch to be built from the town of Sophick, on the Amoor to De Castries bay, distance from Sophick, say thirty English miles, are already rapidly progressing towards completion. At present about 130 miles of the main line is in successful operation from here, and the gentlemen having the work in charge hope to have the branch to De Castries bay completed and in operation next summer, (1863.)

Statement showing the nationality, number, tonnage, and value of cargoes of vessels arrived at De Castries bay, Nicolaifsky, for the year 1862.

The total exports hence to the United States during the last three months have somewhat increased. The total amount of goods exported is 486,795 florins, which is 90,441 florins more than the amount of exports in the preceding quarter.

Exchange has varied during this period from 15 to 12 per cent., and has a decided downward tendency.

The cause of this improvement of the Austrian currency must be attributed to the establishment of a constitutional form of government and a consequent management of the finances by the deputies, (reichsrath,) as also to the agreement made on the 6th day of January last between the government and the National Bank, to the effect that the last-named institution has to resume specie payments in 1867.

This National Bank is the most influential establishment for monetary transactions of the whole empire, uniting within itself the branches of banks of issue, discount, loan, and circulation. The National Bank has, indeed, the character of a pretended private establishment, but its foundation emanated from the government, which had in view, by the mediation of a national bank, to call in the then dishonored notes issued by the state-(they were payable and promissory notes, or the then current "Vienna value")and to regulate monetary circulation by creating a new paper currency, which, based upon ready funds of bullion, was at any time to be exchanged for specie, and thus rendered safe from pernicious fluctuations in value. Also, after the establishment of the bank, the paper money of the "Vienna value" was taken up by the National Bank, bank notes being issued instead; and although this exchange was suspended in 1817, it was again resumed in 1820, and continued until the present time, by which means the whole of the paper money of the "Vienna value" was called in. The National Bank received in exchange bonds of the national debt, which were gradually sunk by cash raised by loans, and yearly instalments successively increasing through the addition of interest for the bonds thus surrendered. In this manner was contracted the first debt of the state to the National Bank, which is as yet not quite sunk; but since the plan for sinking it is strictly acted upon, it will be so soon.

In many other ways, also, did the National Bank aid the financial operations of the government, partly by intervention in public loans, and partly by discounting central cash assignats, which are issued payable three months after date.

But a closer connexion of the state with the National Bank commenced with the year 1848. Although forced to suspend payments in specie, the National Bank, during the years 1848 and 1849, yielded the state any advances required. Already, in 1849, endeavors to unravel the perplexities (caused by its compliance) began, conducting to reiterated agreements, the completion of which was, however, again and again delayed by political considerations; so that there is still a debt owing by the state to the National Bank amounting to 249,847,213 florins; of which 40,955,255 florins are the remainder of the "Vienna value" debt in course of sinking, 69,891,958 florins received upon part of the public estates, and 99,000,000 florins covered with tickets of the state lottery loan of 1868.

On the other hand, the activity of the National Bank during the same period enlarged and extended itself in all directions. What principally contributed to enliven its transactions was that the joint stock was doubled, a special division for advance on securities established, and numerous branches for discount and loan business created.

In the beginning of 1862 there were bank notes circulating

If Austria could have the benefit of a long peace, her financial health will doubtless be restored again in a comparatively short time.

I have ascertained with regard to your circular No. 29 that foreign consuls are excluded from administering oaths in judicial matters, but that they have a right to administer oaths to persons making depositions in regard to disasters at sea if these persons are citizens of the country the consul represents, and if an Austrian citizen or the interests of a citizen belonging to a third power are not involved.

As the question has been put to the Austrian foreign office in the same form as it is stated substantially in the circular, I cannot report now whether we can administer the oath to persons who send merchandise to our country for the verification of their invoices. I believe, however, that this government concedes this right to our consuls, as it has been practiced by all my predecessors. SEPTEMBER 30, 1863.

The total amount of goods exported from my consular district during this quarter is 528,778 florins, or 188,249 florins more than during the preceding quarter.

The total value of the goods exported from October 1, 1862, to October 1, 1863, from here to the United States, amounts to 1,820,867 florins. This is a very favorable result, considering our troubles at home.

Exchange has varied during the last three months between 10 and 12 per cent. The commercial relations of Austria with the United States during this year have been more favorable than I anticipated. The total amount of goods exported from my consular district to the United States for the year ended September 30, 1863, is not less than 2,000,000 florins; which must be regarded as