When the shipments from Java are as large as they have been in the last two months, the syndicate knows that the supply of bark in the Amsterdam market is increasing so fast that after two or three months importers will have to sell their holdings for what they can get; and the trust quietly fills up its stock again at bottom prices. When the shipments from Java are small, it does not dare use its stock, for without this stock it would be helpless to control the situation.

In the months of January and February, Java shipped very littleless even than the demand-with the result that the trust bought everything in sight, because it did not dare touch its stock, not knowing when it could be replenished again. The unit price* then rose above 41⁄2 cents.

The auction in London on the 25th of April was very lifeless; 4,628 packages were offered, but only 1, 183 were sold, and at prices. lower by 23 per cent than at the previous auction. At the auction on May 4, the price of the unit was depressed to about 31⁄2 cents. The trust had been waiting for this, and, thanks to the heavy shipments of March and April, the planters and importers were again at its mercy.

The trust, however, did not lower its price for the sulphate of quinine. That remained at $12.86 per kilogram (2.2 pounds), which is equivalent to a unit price of a little over 42 cents; so that it makes a very handsome profit.

The result of this lowered unit price is that the London quinine market, which before the auction was very animated, with plenty of speculation, has lost all of its spirit; for, with so big a margin between the price of quinine and the price of cinchona, no one cares to buy any more than is necessary for his immediate use. This killing of speculation is what the trust wants. The genuine demand.

for quinine has so increased latterly that the production of cinchona would hardly cover it, even if Java were to send 900,000 Dutch pounds (990,000 pounds) a month. If speculation were to intervene and help, as was the case in previous months, the trust would cease to be master of the situation, which it is at present, thanks to the failure of planters and importers to cooperate-master not only of the cinchona market, but of the quinine market.

It would seem that in some way the planters should be united. The annual report of one of the large plantations urged them to patronize the Pandan Aroem and Bandoeng factories here. But while the crops and shipments have been very large lately, the

*The unit of quinine means the percentage of sulphate of quinine in half a kilogram (1.1 pounds) of cinchona bark; thus, bark yielding 1 per cent with the unit price 4 cents would bring 4 cents per half kilogram, while bark yielding 5 per cent of sulphate of quinine would bring 20 cents per half kilogram.

quantity sent to the factories in Java has been very small, so that they are in great danger of having to close. The erection of the factories in Java was the cause of the higher unit; but instead of giving their bark to the local factories to work, the planters, as soon as the unit price rose to 42 cents, shipped their crop of cinchona to Europe. The local factories work the bark for the planter on commission, the planter selling the quinine himself for the best price he can obtain. To give an instance of the opposition of the trust to the local factories, I will only mention that it is a current and pretty well substantiated report that it placed every available obstacle in the way of their construction. Machinery came here mysteriously damaged, bolts and fittings were tampered with, and orders were strangely delayed and filled unsatisfactorily. Even now, I understand that the factory encounters unnecessary delay whenever it has occasion to order new supplies from Europe.

By dealing direct with the planters, American importers could get either the cinchona bark or the manufactured sulphate of quinine at the very lowest prices, without the intervention of anyone, except perhaps a broker in Batavia to attend to the proper shipping of the merchandise. Already, a beginning has been made. Since January 18, 1899, the date of the first direct shipment of sulphate of quinine from Java to the United States, I have certified invoices for the shipment of 265,900 ounces of sulphate of quinine direct from here to different ports. Up to the present time, however, there have been no direct shipments of cinchona bark. I am convinced of the material advantage to be gained by American importers in getting their cinchona and sulphate of quinine direct from the planters, and I am ready to give information in the matter. It seems very shortsighted in Americans to swell the profits of a German trust. Under date of June 20, the consul adds:

Since writing the above, a meeting of planters has been held in the town of Bandoeng, at which it was resolved to take measures to fight the trust. A suggestion was made to form a regular market in Batavia and keep the supply under their own control. Nothing was decided definitely, however. A committee was appointed to consult as to what was best to be done, with instructions to report to another meeting of planters not later than August 31 of this year. This committee consists of the richest and most influential planters in Java, and there is very little doubt but that something definite will result.

PROGRESS IN NEW CALEDONIA.

During the past fiscal year, certain noteworthy changes for the better have taken place in my consular district.

A Mr. Bernheim, owner of extensive mining property in the northwest of the colony, recently completed a narrow-gauge line of railway, 40 kilometers (24.85 miles) in length. The rails and rolling stock were imported from France.

Two other lines are in course of construction, one of 40 kilometers, on the east side of the island, at Kouaona, and one of 30 kilometers (18.6 miles) close to Bourail, a small town north of Nouméa. A line of 150 kilometers (93 miles), to be built by the local government, will probably be commenced in February next, the contract for which I hope will be secured by a United States firm. A fifth line, in the extreme north, is in contemplation.

The mining industry is in a flourishing condition; nickel, chrome, cobalt, and copper ores are being rapidly extracted. From every quarter of the globe, orders for minerals are received by the leading. firms, and I am informed by the director of Le Nickel, at Nouméa, and the general manager of the firm of L. Ballande & Co., that they have taken important orders from the United States, and shipments are being prepared for that country.

The inspector-general of infantry, who arrived from France some time ago, has been examining the coast defenses. New forts are to be erected and the existing ones strengthened. Work in connection with this movement has already been started. Several million francs

are to be expended, and the general trade of the colony can not fail to be benefited.

NOUMÉA, June 24, 1899.

PAUL EUGENE WOLFF,
Commercial Agent.

AMERICAN FRUITS IN THE ORIENT.

Numerous inquiries have been made of me by manufacturers and dealers in fruits as to the condition of the crop here in China, the prospects for selling orchard products, the size of packages preferred, manner of packing, etc.

I have answered specific inquiries direct; but since the inquiry just received from the State Board of Horticulture, of Portland, Oreg.,* covers the entire field, I make this general response, hoping

*Advance Sheets have been sent the board.

it will receive the attention from our dealers which the importance of the trade merits.

The condition of the fruit crop in China has little or no effect upon the importation. The tropical fruits do not come into com petition with the product of the United States; and in the more northern districts, where northern fruits might be grown, the quality of the products, owing to the ignorance or indifference of the people, places them outside the pale of competition with good fruits.

The only exception to this rule, possibly, consists of grapes grown in the north of China, some varieties of which are excellent. There is a steadily increasing demand among the natives for foreign fruits, whether canned, dried, or preserved. The European population look to these imported fruits almost exclusively to supply their tables. Tinned pears, peaches, and apricots come principally from America, while preserved fruits, jams, and dried fruits still come largely from Europe. The reason is apparent. The American manufacturer will not, or does not, meet the conditions required. Since there are no peaches or pears in Europe which can compete with those from California, the oriental merchant has no choice; in other lines, he is not so restricted. Prunes and raisins are largely used. The dried fruit is put up in bottles and sealed. In no other way can it be shipped to the Tropics without great loss, as the humidity of the climate or insects will soon render it unsalable. Νο fruits, biscuits, crackers, or any other food product can be safely shipped to central or southern China or the Philippine Islands without being sealed in glass bottles or tinned. The English and continental merchants and manufacturers understand this, and put up their fruits accordingly. If tinned, the tins are either painted or varnished to prevent rust and consequent loss to the merchant.

The American manufacturer has found a market for his product without these extra expenses, and is slow to meet the demand; hence dried fruits, jams, and tinned fruits are usually bought in other countries, where these necessary details are looked after.

American oatmeal finds little market here except via England, where it is put up in tin boxes of 2 to 4 pounds each.

If our exporters of fruit expect to hold the market in the Philippines or to gain a better footing in China, they should begin by studying the conditions and promptly meeting them.

Prices realized in China for fruits justify the expense necessary to put them up so as to insure their being in good condition when they reach the consumer.

A. BURLINGAME JOHNSON,

AMOY, June 29, 1899.

Consul.

AMERICAN CANDY IN SOUTH AFRICA.

The small amount of sugar imported into this colony from the United States, as compared with other countries, led me recently to make an investigation. I find that the few candy makers here (manufacturers of what is known as "fine candy") state that American refined sugar will boil by common fire and make whiter, cleaner, and better candy than that raised in Natal, Mauritius, or, in fact, any other country." I am unable to ascertain the imports of refined sugar alone, for the reason that candy is included with refined sugar in the returns; but the amount of both imported into and through Cape Colony from the principal countries of export is as follows:

The total imports do not seem to have fallen off to any extent. In 1895 they were 7,597,649 pounds; in 1896, 7,389,801 pounds; in 1897, 9,976,645 pounds; in 1898, 7,963,074 pounds. The decrease in 1898 was caused by the increase of production in Natal.

A very small amount of fine candy is made here, principally the cheaper, or "hard," varieties, and, consequently, nearly all the fine candies, as well as the bulk of the cheaper sorts, are imported. One does not find here the superior candies that are known in America, and no effort seems to have been made to introduce them. Recently, through the work of this consulate, a trade has been opened up with manufacturers of the United States and several heavy shipments are now on the water. I present these few facts to show that there is a market here, if prices are right. While I can not obtain figures showing the importations from the United States for the years preceding 1895, I am told that during the period when the bounty given by the United States to sugar growers was in force, nearly double the amount of refined sugar was received from that country.

CAPE TOWN, July 6, 1899.

J. G. STOWE,

Consul-General.