the same; in 1896, in consequence of falling prices of coffee and insufficient reduction of imports, the proportion fell to only 60 per cent; in 1897, in spite of much lower prices, the greater quantity maintained the value of coffee about the same as in 1896, while imports fell heavily, in consequence of which the percentage rose to 73.7 per cent; while in 1898, if our anticipations be correct, the value of coffee will represent not more than 60.9 per cent of imports, and is therefore considerably below the normal rate of 70 per cent. In other words, we are still importing much more than we can afford and living, in fact, on credit or on the surplus that the funding operation has afforded. As the value of coffee falls, that of imports must decline, unless there is some compensation of another kind. Certainly, the suspension of the service of the foreign debt is such a compensation, and has in a way interrupted the natural process of balancing our obligations and assets; but the fact remains evident and indisputable that even with the large reduction imports have already undergone, they are still in excess of the true purchasing power of the country. Exports to Brazil have fallen off since 1893 from every one of the principal countries, with the single exception of the United States. The reduction is as follows: Great Britain, 18.5 per cent; France, 28.6 per cent; Hamburg, 21.2 per cent; Belgium, 53.5 per cent; Argentine Republic, 11.1 per cent; Uruguay, 17.8 per cent; and Portugal, 16.7 per cent. The only increase was that of 13.4 per cent for the United States. The greatest reduction was in exports from Belgium, of 53 per cent. That the falling off is not due solely to high tariffs is proved by the fact that, in spite of the reduction of the tariff, the value of imports continues to decline. Naturally, it must adjust itself to the purchasing power of the country. If our principal medium of exchange-coffee-has within a few years experienced a fall of 40 per cent in value, how is it possible to expect that the value of imports can continue unaltered? For the year 1897, the total value of all the merchandise imported by the eight leading countries given above from Brazil amounted to 53,638,544 milreis gold ($29,286,645) exclusive of coffee and rubber, the real c. i. f. value of which, for which the country is creditor, being 44,434,542 milreis gold ($24,261, 260), equivalent to £4,998,885, or, say, in round numbers £5,000,000—not a very extravagant valuation when it is considered that it includes the value of all exports of cocoa, hides, and saladero produce, herba matte (which almost reaches a million), tobacco, sugar, minerals, etc. The years 1897 and 1898 show the following results: Summing up, we now perceive that the value of imports and exports for 1897 There seems, therefore, no question whatever that the balance of trade is really in our favor, even now when the gold value of our principal export has undergone so large a reduction of value. SANTOS, April 18, 1899. RESCURCES AND TRADE FRANK D. HILL, Consul. OPPORTUNITIES OF THE AMAZON VALLEY. Of all the South American republics, I consider Brazil the most important commercially to the United States; and in all Brazil the city of Para, by reason of its geographical position and the natural wealth. of the surrounding country, seems to me to afford the greatest advantages to our manufacturers and merchants. The merchants here are inclined to do business with the United States in preference to Europe, and we could soon control the field if, as I have frequently pointed out in previous reports, we looked after this trade as Europeans do-sending capable men to canvass the field and study the needs of the people. It is difficult to obtain official statistics in this country. My previous reports have been based upon personal investigation, and it is pleasing to see that American manufacturers are taking an interest in them, as is shown from the letters of inquiry which I have received from all parts of the United States. Inquiries have even come from England, France, Japan, and China. The trade of Para and of all Brazil is done on long terms of credit, in many instances as much as six months being given. It is difficult to ascertain with any degree of accuracy a merchant's commercial standing, in the absence of anything like Dun's or Bradstreet's agen cies. This is due, in great measure, to insufficient means of communication between the ports and the interior, and the fact that people engaged in the production of natural wealth, which is often not marketable except after delays which can not be calculated in advance, want easy terms of payment. Another reason for long credits is the strong competition from Brazilian manufacturers in the south. There are few factories in the north; but São Paulo, Rio de Janeiro, and other southern cities of Brazil send shoes, dry goods, hosiery, notions, liquors, patent medicines, and many other goods to this market. It is not difficult to compete with these Brazilian goods, because of their inferior quality; but, considering the little or no duties they have to pay and their facilities for giving long credit, they offer a strong competition. Another advantage is that these southern factories provide their agents here with stock to be sold on the spot. I hear that it is much easier to market Brazilian goods which are ready for delivery than the products of other countries. While the United States is the largest consumer of Brazil's raw material, Brazilian imports of American manufactured goods, even as compared with those from small European countries, are small. Yet the Brazilians, certainly those of the Amazon region, are anxious to trade with us. Goods are coming here from Germany and France, such as bicycles, which are dearer than and much inferior in quality to those made in the United States, but the manufacturers of the former countries have their agents here to show the goods and push their sales. Openings for new industries in this region are most promising, and the chances are excellent for obtaining State government concessions. Brazilians lack initiative, and almost everything is done with foreign capital. England has not only controlled nearly all the import trade, but is also alive to the opportunities for the employment of capital, and syndicates are being formed almost every week. Now, however, Belgium is sending capital and buying up property in Para, such as the electric-light plant. Negotiations are in progress for building the new waterworks, cattle pen, electric railway, and conducting other important enterprises. All awards will be made some time in July, and will go to the lowest bidder. France and Germany have also come into the field, and if American manufacturers expect to keep pace with their competitors they must be active. The strong current of immigration, which thus far has been supplied principally by Portugal, is now coming from Spain and Italy, especially the latter, and it is said that hereafter Portugal will contribute a small proportion as compared with the other two countries. It is claimed, however, that Italy and Spain supply only unskilled labor, a class not desired in the rubber fields. Why this should be so I can not say; nevertheless it is said to be a fact. THE AMAZON REGION. I was on the U. S. S. Wilmington on her recent trip up the AmaThe natural wealth of this region is enormous, almost beyond estimation. Overburdened cocoanut trees increase in quantity as zon. you ascend the river. The thick forests of rich woods, the powerful streams-each one a mighty river-appearing at every turn of the ship, and the endless rows of rubber trees along the banks speak volumes for the commercial and industrial future of Brazil. I have learned that some accounts which have been written concerning rubber, although not entirely misleading, have not been quite accurate. The impression created by the narratives of previous travelers who have been up the Amazon is that the rubber production is on a constant and endless increase. It is not generally believed, but it is nevertheless a fact, that the output is not likely to increase to any marked degree unless a much larger force of rubber gatherers is sent into the forests than has been employed during the past year or two. informed rubber-plantation owners. This is the opinion of the best Reports that the supply of rub- ber trees is inexhaustible are largely overdrawn. is no fear of immediate scarcity of rubber, and perhaps there will not be for the next fifty years. It is believed in well-informed circles that hereafter there will be a gradual but steady shrinkage in the rubber product unless the present force of rubber gatherers is largely increased, because, in the first place, the trees conveniently located near the banks of the rivers are naturally the first to be worked, and in consequence are becoming exhausted from constant tapping, the milk extracted being weaker each year; hence the shrinkage in such rubber is very great. In the second place, the rivers have all been worked inland for a distance of about 3 miles from their banks, and, in order to reach the so-called unexplored rubber forests still farther inland, it will require much more time and necessitate three times as strong a force. Owners of rubber farms inform me that milk drawn from rubber trees five years ago possessed twice the strength contained in that extracted from the same tree to-day. The islands near Para are all overworked. Good judges can easily recognize rubber drawn from overworked trees by its peculiar color. On the banks of the famous Purus River are the most magnificent rubber forests I have ever seen. They form a part of a vast Along the Purus and Jurua belt which has scarcely been touched. rivers and their affluents grow a greater number of the trees than in all the other regions of the country combined. The extent of these forests is so far beyond estimate that it is impossible to obtain even an approximate idea of the area of this rubber belt. The Purus River is one of the most important tributaries of the Amazon on its southern side. It rises within the confines of Peru, passes through a small portion of Bolivia, continues in a northeasterly direction through Brazil, and, after draining several plains, joins the Amazon. It is said that its channel is about 2,100 miles in The only settlers I saw were located near the mouth of the length. river. The River Madeira is the chief tributary of the Amazon on the south. Not many years ago, the outer world was supplied with rubber taken principally from the trees of this region, though it produces the smallest proportion of high-grade rubber. A boom, however, may be started here soon, as I hear that a scheme is on foot to build a railroad around the falls, some distance up stream, thus opening up communication with the upper river. Reports say that the surveys are almost completed, and that several miles of the road are under way. A Belgian syndicate is said to have charge of this enterprise, the same one which is interested in the Para electric-light plant, the proposed waterworks, and the harbor improvements here. The Jurua River, another southern tributary of the Amazon, rises in Peru and crosses a portion of the State of Amazonas. It is said to be about 1,200 miles long, navigable by steamboats for 600 miles. This river is very crooked, and the channel frequently changes. In every direction it is bordered by endless forests. The rubber fields of this district equal those of the Purus. You also see in some places a promising undergrowth of young rubber trees, which is likewise observed on the Madeira. Great quantities of precious woods are seen everywhere beyond Manaos, and it is said that up the Madeira there are large tracts of mahogany, walnut, cedar, cherry, ebony, and many other valuable trees. The River Negro, which empties into the Amazon at Manaos, is also a large stream. The water discharged from this river is black, hence its name. The channel is very deep opposite Manaos--more than 70 fathoms in many places. Large quantities of Brazilian nuts are raised up this stream and brought down to the market; cocoa trees are also plentiful some distance up the river. Very little rubber, however, is produced here. The Amazon River above Manaos is called the Solimoes as far up as Iquitos, when it assumes the name of Maranon, which it retains to its source. The Madeira and other rivers below Manaos, which city is 1,000 miles up the Amazon from Para, are beginning to be settled; but when the Upper Amazon is reached, some distance above Manaos, many miles can be traveled without seeing a single hut. It was quite a treat after many hours of contemplation of those powerful but deserted streams and thick and lonesome woods to suddenly discover a yacht with a few people on board appearing from some of the affluents. One is impressed not only with the |