POLITICAL HISTORY OF PERU. 303 



demand and the means of payment have been more accurately ascer- 

 tained, and a healthy and increasing commerce has been carried on, 

 as far as the state of the country and the fluctuations, which are 

 inseparable from a distant traffic, would permit. The commerce of 

 Peru will not bear a comparison with that of Chili, and while the 

 former has been diminishing, the latter has been rapidly increasing. 

 A portion of the supplies which were formerly sent to Peru direct, are 

 now obtained in Chili, and sent to their destination in coasting vessels. 

 This change has been brought about by the unwise policy pursued by 

 the various Peruvian rulers, in imposing heavy transit duties. This 

 is also in part to be attributed to the advantageous situation of Valpa- 

 raiso, where purchasers are always to be found for articles for the 

 leeward coast. There is little doubt in the minds of those who are 

 most competent to judge, that Valparaiso must become the principal 

 mart of foreign commerce on the west coast of America. 



The foreign trade of Peru is principally carried on by the English, 

 Americans, and French. Of late years, a good many German and 

 Spanish vessels also have been sent thither ; and occasionally some of 

 the Mediterranean flags are seen on the coast. 



The annual imports into Peru are combined so much with those of 

 Chili, that it was deemed proper to include them under the one head ; 

 those of Peru amount to about two-fifths of the whole. Of these 

 imports, part go to Guayaquil; the Intermedios, or South Peru and 

 Bolivia, take about one million from Chili and Lima. The returns 

 made from Peru are as follows : 



In dollars and bullion, .... $4,500,000 

 Bark, hides, wool, cotton, &c., . . . 500,000 



$5,000,000 



It will be perceived, that both in Peru and Chili, the imports and 

 exports are nearly the same in amount ; and the question naturally 

 arises, whence the profits on the trade ? It is readily answered that, 

 as has been already said, large quantities of goods are annually sold 

 in Chili and Peru for Central America, the proceeds of which are 

 shipped thence direct to Europe and the United States, and do not 

 appear in the above note of exports. 



These countries offer a large market for our domestic cottons ; and 

 if the prices can be maintained, the United States will supply the most 

 of the coarser kinds used there. I have it from the best authority, that 

 the consumption of these goods is now double what it was five years 

 ago, and it is still increasing. 



