The total net value of foreign imports was 209,579,334 haikwan taels ($145,448,058). The value of known Asiatic imports was 71,639, 128 haikwan taels ($49,717,555), as follows:

This leaves 137,940, 206 haikwan taels ($95,730, 503) for non-Asiatic imports. The value of imports from the United States as given in returns was 17,163,312 haikwan taels ($11,911,339). The following shows the value of imports classified as American:

Thus, the five classes noted as American exceed in value by 1,465,662 haikwan taels ($1,017, 169) the totals given as imports from the United States, and, as we sell an ever-increasing quantity of lumber, machinery, household stores, lamps, clocks, iron, etc., it is to be regretted that we can not know just what our trade is worth. However, in 1895, Great Britain sold five times what we did, while in 1898 she sold only twice as much. Moreover, it is noticeable that all those powers who have taken territory in China during the past year have suffered severe losses in trade, while Japan and the United States have gained.

The following shows the trade balance with the United States for four years:

Thus, even taking the customs returns as correct, we have a balance of over 5,000,000 taels in our favor.

Imports of all merchandise which expressly names the country of its origin for the twelve months ended December 31, 1897, and for the same period of 1898.

Imports of all merchandise which expressly names the country of its origin for the twelve months ended December 31, 1897, and for the same period of 1898-Continued.

The above table shows the wonderful strides that Japan is making. All classes lost in drills, the American loss being the greatest-216,886 pieces. In jeans, the only gain is American; in sheetings, the English made gains twice as large as the American (this hardly agrees with Mr. Taylor's statements quoted above); while American oil gained 1,801,510 gallons, and Russian lost 17,007,879 gallons.

The American oil company has recently had consigned to it two ships from Batum with Russian oil. I am also informed that the Sumatran oil will show losses this year, as the wells are running low.

TRADE IN NORTH CHINA.

At this writing, it is impossible to learn the actual value of our trade in North China, but it can be safely put down as at least twothirds of the entire value for all China. It is known that 89 per cent of our cottons are taken by Chefoo, Tientsin, and Niuchwang. The total value of imports of American cottons into China was 10,056,340 haikwan taels ($6,989, 100); of American oil, 6,797,922 haikwan taels ($4,717,758); of which Niuchwang, Tientsin, and Chefoo took 89 per cent cottons, valued at 8,950, 143 haikwan taels ($6,211,399), and at least 20 per cent (estimated) of the oil, 1,359,584 haikwan taels ($943,551), or 10,309,727 haikwan taels ($7,154,950). No account can be taken of the railway material, lumber, flour, household stores, etc.; but these figures show that North China is of vast importance to us as a market.

AMERICAN COTTONS IN SHANGHAI.

I am indebted to Mr. J. F. Seaman, an American merchant in Shanghai, for the following interesting table compiled by him, showing the movements of our cottons.

No. 228-6.

Comparative table of imports and reexports at Shanghai of American cotton goods.

NOTE.--December 31, 1896, heavy stocks (estimated at 1,339,000 pieces, all kinds) were carried over into 1897; December 31, 1897, heavy stocks (estimated at 1,305,000 pieces, all kinds) were carried over into 1898; December 31, 1898, the stock carried forward was estimated at 306,000 pieces.

I also attach the market report of Messrs. Noël, Murray & Co. of March 11, showing the first shipments to Tientsin for this year, on the opening of that harbor.

This makes a total of 51,842 packages, against 48,688 packages last year, American goods showing an increase of 12,000 bales.

We would specially commend the foregoing to the attention of our friends in the United States who are showing a certain tendency to rush the import trade.

DIRECT TRADE WITH NORTH CHINA.

For many years I have been trying to induce merchants in the ports to take direct shipments of merchandise from the United States, instead of buying in Shanghai, as is now their custom; but there are many obstacles to overcome, and, at first, some little risk. The Chinese merchant, like all others, goes to the largest market to sell as well as to buy, and, aside from the throttling guilds, there is always more or less opposition to be met in inaugurating any new methods. On the other hand, the traders in the ports, if properly supported, should be able to overcome these obstacles. The merchant who has direct consignments ought to save

(1) The extra expense incident to all cargo shipped to Shanghai, which is landed into cargo boats at Woosung and towed 18 or 20 miles to the city.

(2) Extra insurance on account of item No. 1.