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before shipping it, and it goes on board dirty in the extreme, and hence there are great complaints on the part of the foreign buyer.

The latter say that the character of the sellers is slippery and requires close watching, and that they prefer buying of the American or north of Europe markets, since they can, with more confidence, rely upon cargoes being according to sample and unmixed. They therefore give a higher price in those markets for grain even of the same quality, on account of their greater trustworthiness. The grain is likewise so good and dry that it does not injure by being garnered, and, consequently, the Spanish farmer, being a man of few wants and inexpensive habits, who grows almost everything he wants, will retain his crops in his barns for years until he can obtain famine prices.

In the return of exportation of flour to foreign countries by the division of the year from October to October, the export appears to be about equally divided; but should the report have been confined to the calendar years, nearly all would appear as being exported in 1861, and very little in 1862, as most of the exportation credited to the present year from October, 1861, to October, 1862, actually occurred in the latest three months of 1861.

Out of the five and a quarter millions of exports, four and a half are for wheat and flour alone.

A trade appears to be springing up in madder; but as that is a business requiring great confidence in those who collect the roots, I doubt much its extending for some time, until sounder principles of trade, arising from increased commerce, shall more thoroughly pervade the population.

The value of the total amount of imports by the coasting trade was about $1,199,800; that of exports by the same channels was about $3,120,440. The principal articles of the former were: oils, $233,000; cotton, $272,000; iron, $225,000; grease, $240,000. Total, $870,000.

The principal articles exported from Santander were: cocoa, $2,143,700; flour, $404,300; sugar, $166,900; coffee, $62,500; oil, $56,700; spirits, $56,400. Total, $2,890,500, out of $3,120,440.

Although there may be some discrepancies discovered in some of these returns by those accustomed to such inquiries, yet, in general results, they agree pretty closely with the returns transmitted to their respective governments by such consuls resident at this port as transmit such documents, and with my own diligent and careful inquiries on the subject. Although they cannot be regarded as representing the full amount of the importation of the several articles it includes, it nevertheless is probably as accurate as can be obtained from accessible materials.

For this uncertainty of results many reasons can be given; among them, the existence of a rate of duty upon foreign articles professed by its framers to have been devised not so much for fiscal purposes as upon the alleged principle of preventing foreign articles from entering into any competition with articles from Spanish soil. This principle, while it has not apparently encouraged the productive industry of this part of Spain, as will be evident from an inspection of the report enclosed, No. 3, wherein manufacturers will be found to have no place, has given rise, according to the results of all inquiries I have been able to make, to extensive smuggling, that prevents the custom-house returns from being relied upon with any great certainty, as the true exponents of trade.

Take, for example, the article of coal. Much of that article comes into Santander from the coal fields of the Asturias, of which Gijon is the port of outlet. Most of the coal, however, that supplies the railways and sea-going steamers is imported from England.

I have been assured by authority which I could hardly dispute, viz., that of persons engaged in the coal trade, that the declarations of entry of coal cargoes does not equal more than four-fifths of the true amount. The consignees of a vessel carrying two hundred tons will declare for one hundred and sixty only;

and so of other articles. I am assured by a person engaged in the exportation of calamine, or zinc ore, to other parts of Europe, that the total amount of that article exported, as appearing in the government returns which he has obtained for the service of his company, did not equal the exportation of his own principals alone, although there was another company which forwarded ore at least as extensively as his own.

Independent of this, the registered tonnage, as is well known, affords no guide, since vessels are always constructed to carry at least one-fourth in excess of their official register.

Indeed, this is so well known that in the official notes to the custom dues regulations it is declared that the importers of coal may have the option of paying the duties either by the actual measurement of the combustible, or by the burden of the ship, in which case it shall be considered that each ton carries 2,537 pounds of coal, or 1,624 of coke.

To complete the above picture of the trade, it appears useful to include a synopsis taken from the tables published by the railway company for the use of their shareholders during two years of its traffic, which it commenced in 1859. From the interior to Santander the traffic by rail was, in 1860, 576,950,000 pounds, producing $421,435; in 1861, 930,278,100 pounds, producing $577,856. Difference in favor of the latter year, 353,328,000 pounds.

The principal articles carried in the last of the two years were: flour, 433,015,100 pounds; wheat, 110,527,711 pounds; peas and beans, 2,672,380 pounds; barley, 10,335,980 pounds; ore, 3,188,860 pounds; wines, 5,692,080 pounds. Total, 678,822,400 pounds, leaving for all other articles, 151,455,700 pounds. Grand total, 930,278,100 pounds.

The traffic from Santander was, in 1860, 223,573,000 pounds, producing $161,120; in 1861, 195,701,000 pounds, producing $140,070. Loss in the latter year, 27,280,000 pounds in the outward bound, accounted for by the extra quantity of material carried up the line for construction of interior railways, which was, for material, in 1860, 176,378,000 pounds; for material in 1861, 90,605,000 pounds. Difference, 95,773,000 pounds. Sundries in 1860, 27,872,000 pounds. So that there was, in reality, in the latter, an increase of general objects, 57,801,000 pounds.

Taking the latter year as a basis the principal objects carried from Santander were: coal, 24,262,000 pounds; coke, 15,655,000 pounds; timber, 13,942,500 pounds; articles for the use of the line, 6,863,300 pounds; iron, 5,316,500 pounds; empty sacks, 6,339,900 pounds; sugar, 4,197,500 pounds; codfish, 4,027,700 pounds; cocoa, 893,200 pounds; materials for interior railways, 90,605,510 pounds, being 172,102,100 pounds out of the whole traffic of 195,701,000 pounds.

GENERAL REGULATIONS OF THE CUSTOMS.

The law regulating the basis for the reform of the duties now in force was published on the 17th of July, 1849, and the table of custom-house duties and regulations drawn up in pursuance thereof, and at present observed, were issued on the 28th of October, 1858. The following are its provisions:

Goods, generally, are to be imported through ports especially authorized by the government, upon the principles named under the first of the following

heads.

Cotton manufactures are to be admitted upon special principles mentioned under a different head, herein shortly referred to as the second head.

FIRST HEAD.

Agricultural, mining, and manufacturing machines are chargeable with a duty upon the value of the same, at the rate of 1 to 14 per cent.; primary materials not abundantly produced in Spain, employed in Spanish manfactories, 1 to 14 per cent.; primary materials of the class abundantly produced in Spain, producing agents such as coal and coke, and articles of foreign manfacture which can compete with similar Spanish ones, 25 to 50 per cent.; articles from abroad not produced by national trade, 15 per cent.; sugar and coffee from Spanish possessions, viz., Cuba and Porto Rico, per 25 pounds, 40 cents; sugar from Spanish possessions in Asia, 25 pounds, 10 cents; other goods from Spanish possessions to pay one-fifth of those charged upon goods from foreign ports. The differential flag duty shall be 20 per cent., and that proportion shall be greater on articles which contribute efficaciously to support Spanish navigation. As an instance of how this article is carried out, I append the article of sugar from the tariff; the same principle being carried out in every other item:

Sugar.

Not refined, direct from Spanish possessions, per

pounds...

25

From Spanish possessions in Oceana, per 2510 pounds..

Prepared from any of the Spanish ultramarine possessions, per 25 pounds..

Common, from foreign ports.

Refined, from foreign ports....

Duty under Spanish flag. Foreign flag.

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Prohibited articles.

Articles prohibited to be imported are arms and gunpowder; quicksilver; charts published by the Spanish marine board; maps and plans by Spanish authorities whose copyright has not expired; cinnabar; timber in cargoes of less than 400 tons of 2,030 pounds each; grain, flour, biscuits, bread, and soup pastry, which are subject to a special law prohibiting their admission, except at periods of scarcity; books and prints in Spanish, and by Spanish authors, unless introduced by the authors themselves being in possession of the copyright; missals, breviaries, diurnals, and other liturgical works; military accoutrements; paintings, pictures, and objects offensive to morality or religion; common salt; tobacco; boots and shoes, and made clothes not brought by travellers for their own use; and pharmaceutical preparations, when prohibited by sanitary regulations.

Export duties.

Duties are payable on exportation from the kingdom of the following articles: Black copper motled; litharge containing less than one ounce of silver per 101 pounds; lead in pigs; silk in floss; timber for construction of vessels, subject, from time to time, by the goverment regulations to avoid prejudice to the construction of the naval or mercantile marine or the interests of the owners of wood; articles, the exportation of which are prohibited; cork, in sheets, from the province of Gerona; litharge containing an ounce and upwards of silver per 100 pounds; Spanish cotton, hemp, and linen rags, and old goods of these materials; lead containing twenty-four adarmes, or 1.52 ounces per 1014 pounds of silver, and argentiferous galena.

SECOND HEAD.

The second head of the basis of alteration, comprising cotton and its manufactures, is long, but its effects will be best shown by extracting the duties on a few articles under that head.

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The system of Spanish policy is carried out upon the same exclusive policy in its interior administration. The ports are not allowed to import or export according to their wishes, as convenience or profit may dictate. The sick man cannot call in the doctor when he may wish. He must take the pill of one licensed by the authorities. Must buy his liquor at the store of the nominee of the authorities. The government sells him his tobacco and salt, and tells him within what limits he must buy his meat, with the exception of the larger cities. The tonnage, harbor, and sanitary dues are as follows:

Pilotage: Vessels under 149 tons in summer, each, $7 25; vessels under 149 tons in winter, each, $8 50; vessels over 149 tons in summer, each, $9 50; vessels over 149 tons in winter, each, $12, as entrance fees; outward at the same rate.

Custom-house dues, (average,) per ton, 12 cents; anchorage dues, (average,) per ton, 5 cents; light-house dues, (average,) per ton, 5 cents; lighters of ballast, each, 88; permit for ballast, each, 35 cents; harbor-master's fees, each, 30 cents; town dues, per ton, 5 cents.

Reporting at custom-house:

Inward, each, $5; outward, each, $5; broker's fees, $7; health dues, per ton,

5 cents.

The average prices of the following articles of import are:

Cotton, nominal, per bale, $220; cocoa, per pound, 50 cents; coffee, per pound, 16 cents; sugar, per pound, 8 cents; codfish, per pound, 71 cents; hides, raw, each, $4; timber, pine, per thousand, $25.

Of export:

Flour, per barrel, $6 40; wheat, per bushel, $1 60; preserved provisions, per pound, 25 cents; madder, per pound, 10 cents.

No changes have taken place in relation to prohibition of importation or exportation within the last twelve months, and, with the exception of privileges given as before mentioned to national vessels, there is no difference as between privileges conferred on vessels of other nations.

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Return of imports in the province of Santander from October 1, 1861, to October 1, 1862.

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