The following is a similar table, with the figures for the calendar year 1898:

Imports of merchandise especially termed American for the years 1893-1898.

The only break in the constant increase of our trade is in kerosene oil. While disappointed to see that the importations of that commodity show a decline of 781,000 gallons, I am not surprised, for it justifies my statements made in my report in CONSULAR REPORTS NO. 223 (April, 1899), page 545. While American oil fell off from the importation of 1897, it is almost double that of any preceding year. Russian oil shows a decline from 577,800 gallons in 1897 to 109,940 gallons in 1898, while there was a net importation of 142,000 gallons of Sumatran, that oil appearing for the first time in the

returns.

The value of the net total of foreign imports into Chefoo in 1898 was 14,542,823 haikwan taels ($10,179,976), against 11,066,410 haikwan taels ($7,746,487) in 1897, an increase of nearly 3,500,000 haikwan taels.

The total collection of revenue amounted to 566, 502 haikwan taels ($396,551), an increase of 105,573 haikwan taels ($73,901) over 1897, the largest on record.

The net value of the foreign imports into Chefoo for the calendar year 1898 was 14,542,823 haikwan taels ($10,179,976), while the value of those goods specifically classed as American was as follows:

+ This is arrived at by deducting the value of kerosene oil imported direct, valued at 101,355 hai

kwan taels, from total direct imports.

Although the value of the importations of oil decreased from $547,072 in 1897 to $420,797 in 1898, a loss of $126,275, nevertheless the totals of these specified classes show a gain over the values for 1897 of $199,852. It is fairer, however, to judge trade by the customs tael. In 1898, the value was 3,287,516 haikwan taels; in 1897, 2,813,086 haikwan taels; gain in 1898 over 1897, 474,430 haikwan taels. While this is a most creditable showing, it could have been vastly improved, for there is no reason why we should lose ground in the sale of kerosene oil in Chefoo.

TRADE WITH JAPAN.

The most remarkable aspect of the Chefoo trade is shown by the strides that Japan has made, as will be seen by the subjoined table. Imports (net) into Chefoo for the calendar year 1898 specified as Japanese.

Here is

Japan thus sold considerably more than one-third of the entire foreign imports, and over $1,000,000 gold more than we did. food for thought, for in many lines Japan competes not only with us, but with Great Britain and Europe as well; and the above list, as in our own case, by no means includes all the imports from Japan.

JAPANESE VS. AMERICAN PACKING.

In regard to packing, the commissioner, in the report now under review, says:

Imports.-The net value aggregated 14,542,823 haikwan taels, or nearly 4,500,000* taels over that of 1897, the most noticeable feature being the large increase in the direct import trade (i. e., from foreign countries), which, in this case, is solely due to the steadily and fast growing influx of Japanese goods exported from Kobė and coming direct to Chefoo, thus avoiding the cost of transshipment at Shanghai and affording a cheaper rate of freight to the shippers.

*NOTE BY THE CONSUL. Error; should be 3,500,000.

Japanese cotton yarn advanced from 86,000 piculs to 182,000 piculs-one-third only of this amount arriving via Shanghai, while more than one-half came last year through that channel.

The chief distinction between the Japanese yarn coming via Shanghai and that imported direct from Kobé is in the weight and packing, which would seem to have been purposely adopted to suit the requirements of the overland markets. The ordinary bale from Shanghai weighs 3 piculs and is packed like piece goods; that imported direct from Kobé is a much smaller bale, weighing about 150 catties,* and roughly but strongly packed in coarse straw mats. This smaller bale is more easily carried by pack animals and does away with the splitting and repacking necessary when handling the larger and heavier 3-picul bales. There has also been a fair demand for Japanese T cloths, the importation amounting to 21,000 pieces-a big increase, when compared with the figures of the previous years, which hardly average 2,000 pieces a year. The total importation of matches-1,496,000 gross-doubles that of 1897; and here also the Japanese industry predominates, which this year gives nine-tenths of the total importation. Turning to cotton piece goods (not including Japanese), the greater part of which are reexports from Shanghai, the chief increases are: American sheetings, 207,000 pieces; American drills, 21,000 pieces; while the principal decreases are: English and Indian T cloths, 68,000 pieces; English and Indian sheetings, 34,000 pieces. Under sundries, a big increase is to be noted in American flour-100,000 piculs-almost entirely for the use of foreigners at Port Arthur, Talienwan, and Weihaiwei. Kerosene oil shows a falling off as compared with the figures for 1897.

In my report "Packing for foreign markets," published some years ago, I urged our merchants to pack their exports in small packages, and gave them the reason. The great bulk of merchandise is transported in small boats, on pack mules, or on the backs. of men. All the hauling up and down, across mountains, along narrow passes in the mountains, or over the plains is by men. If our exporters could see how their merchandise is transported, they would know why the Japanese sell so much more than we do. Let them imagine that there are no railways or steamers, no great roads, nothing but narrow paths between New York and Washington, and see which would sell the more readily to the Washington merchant, the heavy package of 500 to 1,000 pounds or the small, strongly packed package of 100 to 200 pounds weight. Let them remember that the ports here are only landing places, and that merchandise is consumed inland.

The population of this port is under 40,000-the smallest of any of the coast treaty ports; it is, nevertheless, the second in shipping and sixth in trade, for it supplies a vast territory.

ADVANTAGES OF DIRECT TRADE.

Then, again, if the Japanese sell more by making direct shipments, why can not United States merchants do the same? American domestics are all sent to Shanghai; yet 90 per cent are transferred

200 pounds.

+ 400 pounds.

+ See CONSULAR REPORTS No. 160 (January, 1874), p. 225.

to the three northern ports-Chefoo, Tientsin, and Niuchwang. They are discharged into lighters at Woosung, towed to Shanghai, pay a wharfage or municipal tax on landing and on leaving, pay godown hire, extra insurance, brokers' commissions, besides, of course, duties (and the Chinese comprador takes off the steel or iron bands to sell to metal dealers, substituting old ropes); then the dealers have to ship again in local steamers to Chefoo, Tientsin, or Niuchwang. All that expense would be saved by direct shipments. In almost all other trades progress is manifest, but to the cotton-piece-goods men in the United States, Shanghai is to-day what it was forty years ago—all China. Of course, the agents there will raise objections to this suggestion, for they would lose valuable commissions; and as they are in many cases the agents for the shipping, they would, joined by the brokers and local guilds, be a power. But the Japanese have shown that direct shipments are successful.

The following letter on this subject is from a merchant who sells more American merchandise than any other, and, as he controls the interior foreign trade in household stores, etc., it is only reasonable to believe that he understands his subject:

JOHN FOWLER, Esq.,

United States Consul, Chefoo.

CHEFOO, CHINA, March 6, 1899.

DEAR SIR: I wish to bring to your notice some points relating to American manufactures and products. Through your efforts, American goods have been introduced and popularized, but I believe this can be done to a much greater extent if the people at home understood what is necessary. I would say, first, it is important to bring the manufacturer at home and the merchant here together. Doing away with middlemen's profits would doubtless bring a large range of American goods down to prices that would make them easily compete with the goods of other countries. I deal direct with several British manufacturers, but with only two American. For the latter, I sell large quantities of goods, probably twenty times as much as if these goods were supplied through agents. The saving to the consumer is from 25 to 40 per cent.

Manufacturers should be willing to send their goods on consignment to thoroughly reliable and pushing houses. They should send at first small quantities on the very best terms, knowing that the merchant may be able to order larger lots later. They should further send a liberal allowance of free samples. This is one of the most valuable means of advertising among Europeans in this country. Freight should be paid on first indents of hitherto untried goods. Attention should be given to packing for this market. Thus, butter is often packed in badly soldered and partially empty tins, which causes deterioration and makes a bad impression. Oils are put in bottles so thin that breakages average from 20 to 40 per cent. Outside packages are often so bad that goods arrive in a wretched condition. To refer to two or three articles: Watches, clocks, plated goods, and lamps should have a very large sale among the Chinese in this district, but I think it is still small. The leading brand of Swiss condensed milk costs, laid down here, only a little over half that of the leading brand of American.

Being a Britisher, I am not anxious that American products should push out those of Great Britain, but I am desirous of bringing the articles of the best value before my customers.

Yours, faithfully,

GENERAL TRADE NOTES.

JAMES MCMULLAN,

Our merchants, in sending their wares to China, should also bear in mind that the covers, whether of tin, glass, cotton, or any other material, have a great influence upon the sale of the contents. All over China, the kerosene-oil tins are used for buckets or beaten out into sheets to be made into lamps, cups, or any purpose for which tin is used. The Chinese barter in everything; bottles, tins, wrappings, boxes, all have their market prices; nothing is wasted, while a glass bottle is used even by foreigners for keeping their drinking water. In every village one sees many shops devoted to the empty tin and bottle trade. The mistress of a house, perhaps with no special fancy for any particular brand, tells the servant to go to the shop and get such and such a thing. He will invariably buy that which has a cover most serviceable to him. If there are two kinds of vinegar, sauce, catchup, etc., one in a white, the other in a black or cheap bottle, he invariably buys that in the white bottle; for when the empty bottle is thrown away as rubbish and falls to him, he will get from the dealer far more than the other would bring. Wooden boxes are a prize; and wrappings, if cotton or canvas, no matter how small or soiled, are used for sails, clothes, shoes, etc.

A certain London house virtually controls the biscuit trade of Asia because its products are neatly and tastefully put up in 1-pound and 2-pound tin boxes. These boxes have a tight outer cover, easily taken off without cutting or mutilating. The inner cover is so arranged that one can catch hold of a stub and pull the top entirely off, take out what is wished, and replace the top cover, thus having a perfectly tight box. On the other hand, Americans place their biscuits in large, clumsy square tins, holding 5 or 10 pounds. The top must be cut open, leaving the contents constantly exposed to the damp and readily accessible to insects of all kinds. I have seen my

cook shake small snakes out of such tins.

I suppose the American merchant who may read this will say, "Oh, we can not be bothered." He may be interested to know that the foreign merchant who reads it will study the suggestion and will adopt it.

Mr. McMullan speaks of a liberal supply of samples. A manufacturer in the West solicited my aid in introducing his brand of milk. After some correspondence, he sent a lot of samples, which Mr. McMullan distributed, with the result that he is now selling from No. 229-8.