700 



PETROLEUM. 



to invite the other American nations to give their 

 adherence to the present treaty. 



ART. 6. The present treaty shall be ratified by the 

 Governments of both Republics, and the ratifications 

 exchanged in Lima within the term of forty days, or 

 before if possible. 



In witness wherof, the Plenipotentiaries of both 

 Republics sigjn and seal the present treaty. 



Dated in Lima, the fifth of December, one thousand 

 eight hundred and sixty-five. 



D. PACHECA. 



DOMINGO SANTA MARIA. 



The promulgation of the order to prepare for 

 war was received by the Peruvians with great 

 enthusiasm. The naval squadron left at once 

 to join the Chilian vessels. The combined squad- 

 ron would consist of the following men-of 

 war : Peruvian Appurimac, 60 guns (flag-ship), 

 Amazonas,* 44 guns; America, 10 guns; Union, 

 10 guns. C r fo7MW--Esmeralda > 32 guns; Mais- 

 su, 8 guns; and Covodonga, 3 guns; making 

 a total of 7 vessels, mounting together 167 rifled 

 guns of heavy calibre. 



PETROLEUM. The production of petro- 

 leum has been constant during the year, but 

 not so large in quantity as had been antici- 

 pated. But the knowledge of the subject has 

 increased, and the skill required in the extrac- 

 tion of the oil from the earth. The capital in- 

 vested in the business was considerably above 

 the amount needed, and some of it has received 

 a poor return. The unusual success of the 

 previous year had stimulated speculation, and 

 led to the formation of eleven hundred compa- 

 nies, with an aggregate capital of six hundred 

 million dollars. Of this amount of capital, 

 probably not more than fifteen per cent., or 

 ninety millions of dollars, was paid up, and a 

 part of this was appropriated to the purchase 

 of land. The total amount taken for consump- 

 tion at New York and exported from New York, 

 Boston, Philadelphia, etc., for the last three 

 years, was as follows : 



Federal tax, which has been so large as to ren- 

 der the working of these wells unprofitable. 



The exports in detail from New York for the 

 last four years, and the totals from the other 

 ports of the country, have been as follows : 



Export of Crude and Refined (including Naphtha, 

 etc.), from New York, for the years 1862 to 1865. 



Thus the total export for the year was about 

 750,000 barrels. If this is regarded as about 

 forty-seven per cent, of the total production, 

 which is more than the usual average, it would 

 make that production 1,500,000 barrels. The 

 estimate of the Commissioners of Internal Rev- 

 enue made the production about twelve thou- 

 sand barrels daily. 



In the commercial aspect, which is the only 

 view taken to this time, the production, es- 

 pecially from wells yielding small quantities, 

 has been much reduced in consequence of the 



* Before a Junction was effected, the Amazonas foundered, 

 and was lost. 



