Articles. No. 5.-Comparative statement showing the exportations from Rio de Janeiro for the financial years 1860-'61 and 1861-'62. From July 1, 1861, to June 30, 1862. From July 1, 1860, to June 30, 1861. Destination. From July 1, 1861, to From July 1, 1860, to June 30, 1861. In compliance with the instructions contained in sections 153, 154, consular regulations, I have the honor to submit the enclosed commercial statistics of the trade of the port of Pernambuco for the year ended June 30, 1863, viz : 1. Tabular statement showing the exportation from the port of Pernambuco during the year ended June 30, 1863, and comparison of the same with the three preceding years. 2. Statement of value of exportations from port of Pernambuco to foreign countries and to provinces of the empire of Brazil. 3. Statement of importation of principal articles at the port of Pernambuco during the year ended June 30, 1863, with average prices for same period. 4. Comparative statement of importation of principal articles during the years 1858, 1859, 1860, 1861, 1862, and the respective quantities received. from each country in 1862. 5. Statement of goods imported from the United States in American vessels, and entered for consumption, during the year ended June 30, 1863. 6. Statement of goods imported from the United States in other than American vessels, and entered for consumption, during the year ended June 30, 1863. 7. Statement of the value of direct importations of foreign merchandise and the value received from each country during same period. 8. Revenue from imports and exports at Pernambuco in 1862, compared quarterly with that of the five previous years. 9. Average rates of exchange on London at Pernambuco during the last sixteen years. 10. Statement of foreign shipping entered at the port of Pernambuco during the year ended June 30, 1863, and comparison of total tonnage with preceding year. I beg also to hand you a copy of the annual report of John Borstelmann, esq., United States consular agent at Macayo, together with copies of the enclosures received therewith, viz: "Summary of exports from port of Macayo during year ended June 30, 1863," and "Note of exports from port of Macayo from July 1, 1862, to June 30, 1863." These tables have been prepared with the greatest care, and in the main are perfectly reliable. * A great impetus has been given to the development of the resources of this province by the rebellion now so unhappily distracting our country. If "cotton is king," his throne promises fairly to be removed to Brazil. The stimulus given to the culture of that staple, if not soon withdrawn, will give to this empire the monopoly which we formerly possessed. Three years since cotton was sold in this market at Rs. 7||000 per arroba; to-day sales are made at Rs. 27||000 per arroba. Within the past year improved gins have been imported from the United States and distributed throughout the province. Greater attention is also paid to the seed, and the quality of Pernambuco cotton is steadily improving. From accounts received of the extent of ground planted, it is expected that the coming crop of this province will reach 400,000 arrobas, and the crop of the adjacent provinces of Aldgous, Parahiba, and Rio Grande del Norte, which is chiefly sold here, will probably amount to 600,000 arrobas this year. There appears to be but two things to limit the production of cotton in Brazil, viz., the want of cheap transportation and a supply of labor. The only railway in this province is the Recife and San Francisco railroad, which was originally intended to connect this city with the river San Francisco at a point above the falls of Paulo Affonso. So little is known of the geography of this country that it is impossible to fix the distance of the falls from this city. From the length of time employed in making the journey, I estimate it at no less than 350 miles. The railway terminates at present at Agoa Preta, on the river Una, about 78 miles from this city, and it is not probable that this work will be pushed forward for some time, as the imperial government declines to guarantee the interest demanded in the capital required for its extension. I believe the most intelligent men in this province are satisfied that the solu tion of the "labor question" lies in the abolition of slavery. The laws of this empire afford great facilities to slaves who are desirous to purchase their freedom, and the proportion of slaves to free men is thus constantly decreasing. By the elevation of the working class, and the increased dignity thus given to labor, the repugnance for it is diminished, and it is no longer denied that progress is more rapid in those districts where the smallest proportion of slaves is found. In my last annual report I noticed the difficulty experienced by our vessels in obtaining homeward freights. This difficulty has been much increased dur ing the present year by the ravages of piratical vessels, pretending to be vesselsof-war of the so-called Confederate States of America. * Four American vessels, regularly trading with this port, have changed their flags. Of two others, not regular traders, one was sold here to avoid the risk of capture, and the other has gone to Bahia to be sold for the same reason. But twenty-three entries of American vessels have been made at this port during the nine months ended September 30, 1863, against thirty-four during the same period of last year, and forty-five in the corresponding time of 1861. In short, nearly the whole carrying trade between the United States and this empire is now in the hands of the nation from whose ports have issued vessels that have so effectually crippled our commerce with Brazil. From the tables enclosed you will perceive that the balance of trade with Brazil is against us. We have sold her less of our products than during the preceding year, and have bought more of her sugar, cotton, &c. The fact that our export trade to Brazil does not increase as rapidly as that of England or France is owing principally to the want of steam communication. Both England and France have literally subsidized lines of steamers to Brazil. The natural consequence is, that when Brazilians travel abroad they go either to France or England. They thus acquire the habits and tastes of the people of those countries, and buy many articles which could be better and more cheaply furnished by the United States. They make the acquaintance of English capitalists, who build their railways, bridges, gas-works, &c., &c., and who then fill every valuable position connected therewith. The amount that it would cost our government to subsidize a line of steamers plying between the United States and Brazil, would be returned indirectly sevenfold in the increased consumption of our manufactures and natural products. |