118 



COMMERCE, INTERNATIONAL. 



these countries have, however, already a con- 

 siderable and increasing foreign trade, and 

 stand on a respectable economical level. The 

 Argentine Confederation received, in 1875, im- 

 ports to the value of about 55 million dollars, 

 they having increased from 47 millions in 1871, 

 and" exported 45 million dollars' worth an in- 

 crease of 10 millions in four years. It stands 

 in communication with all the chief maritime 

 powers, England and France leading. The 

 main articles of export are wool and tallow, 

 and other animal products. Bolivia has a 

 trade of about equal dimensions. Brazil's 

 average imports, daring the period mentioned, 

 amounted to some 95 million dollars, about 

 one-third coming from England and one-fourth 

 from France; her exports, 112^ millions, one- 

 third to England and one-fourth to the United 

 States. Chili imported in 1875 about 38 mill- 

 ions' worth, and exported 34J millions, over 

 16 millions in copper to England, whence 

 most of her imports are brought. Peru's aver- 

 age imports were 25 millions, and her exports 

 30 millions, consisting chiefly of guano and 

 cubic nitre, with the minor articles alpaca and 

 sheep's wool, sugar, etc. Uruguay's enterpris- 

 ing and active trade fell away in 1875 to 14J- 

 millions imports from 16 in the preceding 

 year, and from 15 to 14 millions exports, which 

 consist mainly of animal produce hides and 

 skins, grease, bone-ash, etc. One-half of her 

 commerce is with England. Venezuela's com- 

 merce, in which Germany takes a leading part, 

 amounted to 4 millions imports, and 5 J mill- 

 ions exports. The commerce of the United 

 States of Colombia, owing to internal political 

 disturbances, decreased in 1875 to less than 7 

 millions imports, from over 11 millions the pre- 

 vious year ; the exports, about 10 millions, also 

 declining a little. Great Britain, with France 

 and Germany, commands this commerce. 



In the foreign trade of Mexico and the "West 

 Indies the United States takes a more or less 

 predominant part. In the year 1873 the com- 

 merce of Mexico amounted to 33 millions ex- 

 ports, 24 millions being in coined silver, and 

 29 millions imports ; in 1874, 25 J millions ex- 

 ports, 15 millions in silver, and 28J- millions 

 imports. The annals of the Mexican mints 

 make the aggregate coinage, during the colo- 

 nial period of 300 years, about 2,200 millions, 

 and during the period of independence of 53 

 years, about 854 millions ; in all, 3,054 mill- 

 ions of dollars. The coinage in the fiscal year 

 1875 was 20 millions. The commerce of Cuba, 

 Hayti, and Santo Domingo is chiefly with the 

 United States. Owing to the inferior and de- 

 ficient out-turn of the Cuban tobacco crop 

 since 1873, other countries, in Europe as well 

 as in America, have given such attention to 

 the tobacco culture that a very fair leaf for 

 cigafs~4s grown in various portions of the 

 world. The Mexican and South American 

 tobacco is constantly improving. The Dutch 

 East Indies are also extending the cultivation 

 of the plant. 



The effect of the war on the European stock 

 market was at first depressing ; and when the 

 market again hardened, the average prices 

 were lower, in spite of vast amounts of money 

 seeking investment. Before the declaration of 

 war there had been a steady advance in the 

 prices of first-class investment stocks since 

 1874. The advance in the values of an aggre- 

 gation of stocks, both governmental securities 

 and corporate, amounting to over five billion 

 dollars, was computed to be a little over 5 per 

 cent, in the 12 months ending March, 1877. 

 At the outbreak of the war there was a rapid 

 decline, which was not afterward recovered, 

 the ruling prices averaging, in June, 1 or 2 

 per cent, below those of March. The rise in 

 the prices of good securities was owing to the 

 stagnation of trade and discredit of new enter- 

 prises, and the consequently large amounts 

 of idle money, which condition was also evi- 

 denced by the low rate of the minimum dis- 

 count of the Bank of England (2 per cent.), 

 which had prevailed in July, 1877, for more 

 than 12 months, while the rates in the open 

 market were considerably lower during the 

 same period, latterly in Paris as well as in 

 London. A rise in the value of the most 

 credited Government obligations, like Eng- 

 lish consols, French rentes, and, in an in- 

 ferior degree, American bonds, in comparison 

 with other stocks, has made itself remarked 

 of late years. This is easily accounted for by 

 the fact that the annual dividends of the stock 

 companies are generally lower by 2 or more 

 per cent, than they were a score of years ago. 



Up to the middle of 1876 there was an influx 

 of gold into England, the excess of imports 

 for the first seven months being 9,024,000. 

 In August of that year the tide turned, and at 

 the end of the year the excess was reduced to 

 6,960,000, and during the first seven months 

 of 1877 there was an excess of exports of 

 3,136,000. A part of the time the state of the 

 exchanges with Paris caused an efBux thither 

 of gold. The rationale of gold-movements be- 

 tween England and other countries is given by 

 Ernest Seyd, as follows: Par of (short) ex- 

 change between London and New York, Paris, 

 Berlin, Australia, 1 = $4.867, 25.22J francs, 

 20.43 marks, 1. When the exchanges deviate 

 from these pars, they indicate the indebted- 

 ness of one country to another. "When the 

 exchange in New York on London sinks to 

 $4.82f, or .08 per cent, below the par, there 

 is a flow of gold to New York ; when it rises 

 to $4.89, or .05 per cent, above the par of ex- 

 change, the flow is the other way. The same oc- 

 curs when exchange in Paris sinks 4 per millo 

 to 25.12J francs, or rises 4 per millc to 25.32J 

 francs; or when German exchange falls 5 per 

 mille to 20.32 mards, or rises 5 per mille to 20.- 

 52 marks. The normal outflow of gold from the 

 Bank of England can, however, be checked by 

 raising the discount-rate. This occurred in the 

 autumn of 1877. The imports of gold into Eng- 

 land were, for the first nine months of 1877, 



