Of the above value of goods imported from the United States, $377, 126 10 was depatched for consumption; $5, 005 was exported; and the residue remained in store. In the articles of cotton and cotton goods the greatest proportion is the raw cotton, imported direct from New Orleans.

"Liquors" comprise, for the greatest part, grain spirit, which began to be imported via New York, owing to the scarcity of the Portuguese low wines for distilling. The grain spirit is greatly used to lot with and strengthen the national wines for exportation; and, when properly rectified, has no unpleasant effect on the low red and white wines.

"Colonial goods" comprise tea, sugar, molasses, coffee, rice, spices, &c. "Timber and lumber." The importation of American lumber has considerably increased within the last three years; and although the dealers here are more accustomed to the Swedish lumber, still, the superior quality of the. American pine makes it gradually grow into favor. It ought to be imported chiefly in boards, 18 feet, 24 feet, and 30 feet long, 3 inches thick, and about 8 to 9 inches wide, as these are the dimensions to which the dealers are accustomed in the Swedish qualities, and routine has a great power, and strikes deep root here. It is mainly used for floorings, house rafters, and general building purposes, and should be of the soft white pine, as free from knots and defects as possible. Timber of the same quality is likewise imported, chiefly from Sweden as before, in balks of from 24 to 36 and 40 feet long, and 9 inches square, to cut up here into rafters. Two or three cargoes of ship spars, yellow and pitch pine, find a ready sale at fair prices. The assortment ought to consist of masts, yards, &c., of medium size.

"Chemical products." This class comprises turpentine, rosin, pearlash, soda, &c.

The other items which make up the list of imports into this port are not of importance, and fully explain themselves.

Exportations.

The total value of the exports through the Lisbon custom-house, in the period under consideration, amounts to $6, 145, 227 13.

The amount reported from Lisbon to the United States ($58,349 45) is made up as follows:

year

The principal articles of export from this port to the United States are, as seen above, wine, olive oil, corkwood, gum copal, and salt. Ever since the 1854 the export of wine to the United States has diminished exceedingly. The principal cause of this decrease may safely be attributed to the ravages of the grape disease, which has attacked the vines all over Portugal; and, producing a small and poor crop, prices of wines have, since 1853 and 1854, risen from $40 per pipe to $160. The chief wines shipped to the States are white and red Lisbon; the former a full-bodied, rather rich wine, generally sent in Madeira-shaped casks, and made to resemble this latter wine as much as possible in color, flavor, &c. The red Lisbons are very full-bodied, strong, and heavy wines, strongly brandied, and fit to lot with the low Catalonian wines, or made up into imitation low ports. The wine crops in 1860 were decidedly an improvement on the previous years, both in quality and quantity. The crop of 1861 is, in great part, still undergoing slow fermentation. The quantity is satisfactory, and sustains hopes of the disease gradually disappearing. Its quality, however, in the Lisbon district at least, is said not to be of the best.

The olive oil of Portugal is exported in large quantities to England, where it is employed in lubricating machinery, in soap manufactures, &c. The oil sent to the United States has been chiefly shipped to New York. Its cost here ranges from 3,000 reis to 4,000 reis per almude of about 37 pounds weight. These prices do not include cask and shipping expenses, which add about 30 cents more to the cost of the almude. The corkwood of Portugal, chiefly grown in the province of Alemless, to the south of Lisbon, is of a fine quality, and large shipments are made yearly to England, Belgium, Holland, &c. It is sorted into different qualities, fine and thick, medium and thin, and common, for fisheries. Its price ranges from $300 per ton down to $60, according to quality and brands.

The gum copal exported is all derived from the Portuguese colonies of Western Africa, chiefly Angola and Benguela. Previous to shipment it undergoes a process of picking and cleaning to free it from the earthly matter and dross which always is mixed up with it on arrival from Africa. In its clear state here it is worth from $2 for the inferior to $6 50 for the best picked yellow, per arroba of 32 pounds, or 15 kilogrammes.

The Lisbon salt, although not quite so white and fine as the Cadiz salt, is still considered of an excellent quality for curing meat, fish, &c. It is much employed in Newfoundland for the curing of the codfish. Its present cost is $2 per moy, equal to $3 per ton on board.

EXCHANGES.

Remittances from or to this place are chiefly done by bills on London at 90 days' sight. Bills can be procured, however, on Paris, Marseilles, Madrid, Hamburg, and some of the other chief mercantile towns of Europe, at proportionate rates of exchange.

The transactions between the United States and Lisbon are mainly liquidated through London or Liverpool. There are no direct bill transactions between this place and the United States.

The present course of exchange is as follows: On London, at short sight, 52 d. per 1,000 reis; at 30 days' sight, 524d. per 1,000 reis; at 60 days' sight,

522d. per 1,000 reis; 90 days' date, 524d. per 1,000 reis. On Paris, 100 days' date, 532 reis per three francs; Hamburg, three months' date, 47 shillings banco per milrea; Amsterdam, three months' date, 42.50 shillings per milrea; Madrid, eight days' sight, 9.35 reis per hard dollar. The English sovereign is a legal tender in Portugal, at 4.500 reis each. Spanish ounces are sold at 15.100 reis each; Mexican ounces, at 14.200 reis each; American eagles, at 18.200 reis each; Spanish dollars, at 950 reis each; Mexican dollars, at 940 reis each; Brazilian dollars, at 940 reis each; five franc pieces, at 880 reis each

JUNE 5, 1862.

I have the honor of waiting on you with a translation of his Majesty's decree of the 23d of May last, regarding the formalities required to be attended to by masters of vessels leaving foreign ports for those of Portugal.

DECREE.

"It having come to the knowledge of his Majesty the King that some masters of vessels proceeding from foreign ports to those of Portugal do not have their ships' papers legalized, and that others, for this end, go to the consulates which suits them best, whether these be competent or not, thus infringing the precepts of the law, the said august sire is hereby pleased to declare:

"1. That, in virtue of the dispositions of article 2, chapter 4, of the decree of July 10, 1834, and of article 88 of consular regulations, the manifests and other documents which masters of vessels are bound to exhibit on entering the ports of Portugal, must be authenticated by the consular agents of Portugal at the ports of departure of the vessels; and, in the absence of such agents, by the local authorities.

2. That, in conformity to the dispositions of article 80 of said regulations, masters of vessels must likewise provide themselves with manifests at all the ports where they may receive cargo.

"3. That, in view of the dispositions of article 91 of aforesaid regulations, all masters of vessels who, being ultimately destined for ports in Portugal, touch at or enter any foreign port on their way in distress or otherwise, must exhibit to the consular agents of Portugal in such ports their bill of health and other ships' papers for the purposes indicated in the aforesaid article.

"4. That, in the case of such vessels not receiving cargo, the consular fees must only be for the viza, or recording of the bill of health.

"5th, and lastly. That all masters who do not comply with the foregoing clauses will be liable to the respective fines.

"His Majesty determines that the foregoing be duly communicated to all interested through the department of customs and direct taxes.

"Palace, May 23, 1862.

"JOAQUIM THOMAS LOBO D'AVILA."

OCTOBER 16, 1862.

In conformity with the directions contained in your circular, No. 17, of July 31, I immediately transmitted a copy of the provisions of the law therein referred to to the custom-house authorities of this port, and have received in reply the assurance that "the privilege of purchasing supplies from the public warehouses duty free" is now and has been extended to the vessels-of-war of the United States.

This privilege I have myself seen practically applied within the last two months to the United States sloop St. Louis, when supplying herself with provisions, &c., from the bonded custom-house stores.

H. Ex. Doc. 63-16

FUNCHAL, (MADEIRA.)-GEO. TRUE, Consul.

JANUARY 1, 1862.

I avail myself of the general regulation requiring consuls to send information. of a statistical character, to forward to the department the following items respecting the district embraced in my consulate.

The commerce of this port has been almost entirely prostrated during the past ten years. Up to 1851 wine was the great article of produce and export. The failure of the wine in that and the succeeding years was a great calamity to this island and to its commerce, and to no part of the latter more than to the prosperous trade then in existence with the United States.

In the following table I have compared the entries of vessels at this port in 1861 with the entries in 1855.

It will be noticed that the number of vessels reported is the same in both years. The total number of American merchant vessels is nearly the same; but it will be noticed that there is a marked increase in Portuguese vessels, and a slight falling off in the number of other foreign vessels. Another item is noticeable: While the merchant vessels calling here from or belonging to England have fallen off from 117 to 76, the number of war vessels of that nation calling here has increased from 3 to 29.

The only United States man-of-war which has touched here duing the past year was the Richmond, which cleared hence for New York on the 6th of June. Referring again to the table of commercial arrivals, I notice that the total number of arrivals this year is 245, while the average yearly arrivals from 1841 to 1851 was 354. The actual difference in the business transacted here is very much greater than these figures show. A large proportion of the entries now reported are those of ships putting in for supplies, water, or merely standing off and on before the harbor.

In conclusion, I have to report that during the quarter ending December 31, 1861, no American vessel has entered at this port, and only one has touched here.

OCTOBER 30, 1862.

In transmitting my annual report, as required by section 153, general regulations, I beg leave to call the attention of the department to my remarks in