If we are to take part

in trade with England and the United States. in the trade with South America and with the East, we must emulate this Empire in the matter of ships. Of all the ships that came into and went out of German ports in 1896, 72.4 per cent bore the Empire's flag. Of the steamers, 68.3 per cent were German. details are as follows:

The

Consul Monaghan writes from Chemnitz, June 23, 1898: Among South American republics, says a German newspaper, none has better buying ability than Argentina. In 1897, she took textiles, raw and finished, for 30,500,000 pesos (1 peso=961⁄2 cents), against 38,400,000 in 1896. The decrease was due to bad harvests, and to the fact that the Republic has begun to manufacture for itself.

Other articles imported by Argentina were:

The imports of Argentina, in 1897, came from the following countries: England, 36,400,000 pesos; Germany, 11, 100,000 pesos; France, 11,000,000 pesos; Italy, 10,900,000 pesos (Italian immigrants buy and bring with them large stores of Italian goods); the United States, 10, 100,000 pesos; Belgium, 8,000,000 pesos. Germany's real trade is larger; for thousands of dollars' worth of goods go out to Argentina via Antwerp.

Colombia, Peru, Uruguay, and Venezuela took from Germany in 1897 goods worth $7,600,000, against $7,100,000 in 1896; Bolivia,

Ecuador, and Paraguay, $1,214,000 in 1897, against $1,161,000 in 1896. Almost every edition of the leading German papers calls attention to the opportunities offered by this war to lay the basis of a more permanent business with South American states. Some go

so far as to urge a policy calculated to persuade the South Americans that the United States is working to bring all South and Central America not only under United States influence, but under the United States flag. Our manufacturers must see the commercial wisdom of disabusing the minds of South American peoples of this idea.

ECONOMIC CONDITIONS IN GUADELOUPE.

Referring to my report of May 24,* I would now state that, in the last number of the official journal, there has appeared a decree promulgating for this colony and its dependencies the federal decree of May 28, 1898, provisionally extending the privilege of "minimum tariff" to products coming from and originating in the United States.

The provision problem here is less difficult now. Flour, said to be of excellent quality, has been brought by enterprising agents, and is sold at remarkably low prices. The danger of actual suffer ing has passed, but prices have not yet become normal.

The general council has met and adjourned. The reports of the session are not yet published, but that of the finance committee I have obtained in part. The suspension of the "droit de consommation" (see my report of May 24) involved a reduction in receipts. of 415,000 francs ($80,095), to which must be added, for the last six months of the year, losses in duties on various articles amounting to 115,354 francs ($23,263), and in taxes on alcohols, etc., to 117,450 francs ($22,668); a total reduction in receipts of 617,804 francs ($119,236). In addition, the colonial contributions to France have been increased 71,068 francs ($13,716). There is therefore a deficit

in the budget for the year of 739,000 francs ($142,627) in round. numbers, plainly visible. To combat this deficit, various bounties are to be suppressed, and reductions made, and economies introduced in the medical and hospital service. It is estimated that 289,560 francs ($55,885) will be saved in this way. The "droit de consommation" is to be replaced by direct customs taxes and by an octroi tax, the former yielding 424,000 francs ($81,832) annually, the latter, 96,000 francs ($18,528), or a total of 520,000 francs ($100,360). A further gain of 66,000 francs ($12,738) is estimated from increased octroi duties on wines and matches. There still remains a deficit of

* See "Tariff changes in Guadeloupe," CONSULAR REPORTS NO. 215 (August, 1898), p. 594.

209,000 francs ($40,337).

It is proposed to transfer this amount

from certain sums already voted.

The colony is burdened with a high educational institution of doubtful value, which employs a greater number of professors than many an American college. This Lycée costs the colony 600,000 francs ($115,800) a year. Its entire suppression was voted; but it is a federal institution, and it will take a year to finally settle the question. Meanwhile, a paltry reduction of about 40,000 francs ($7,720) was voted in its appropriation.

This island is capable of producing great riches, and I believe that large amounts of American capital could be profitably invested in coffee, cocoa, timber, etc. A vigorous and economical administration is, however, necessary.

GUADELOUPE, July 6, 1898.

LOUIS H. AYMÉ,

Consul.

ITALIAN IMMIGRANTS IN VENEZUELA.

I inclose a clipping from the Venezuelan Herald, which contains a translation of the contract recently made by the Venezuelan Government and a syndicate of Italian capitalists, which is a substitute for the Dotti concession reported on January 10.*

The contract is a very favorable one for Venezuela, and, if faithfully carried out, will result in the establishment here of fifteen thousand families from the north of Italy. These immigrants will be given lands and houses and assisted in a financial way. It is hoped they will develop the culture of fruits and cereals and give particular attention to the culture of the grape and to wine making.

It will occur to many persons that the quantity of land which it is proposed to allot to each immigrant (about 14 acres) is very small, and experience will probably prove that cereals can not be properly raised on tracts of this size.

The success of the scheme, after the arrival of the immigrants, will depend upon the building of highways and railways to enable the immigrants to transport their produce cheaply to the local markets and to the coast.

A study of present conditions makes it evident that if the production of fruits were considerably increased, the growers would be forced to seek a market in the United States or other foreign countries, preferably the United States, by reason of its proximity and the great demand for tropical fruits which exists there.

FRANCIS B. LOOMIS,

CARACAS, July 7, 1898.

*See CONSULAR REPORTS No. 210 (March, 1898), p. 361.

Minister.

IMMIGRATION FROM ITALY.

[From the Venezuelan Herald.]

On the 1st of this month the Government entered into a really solid immigration contract. The contracting parties are the Minister of Agriculture, Industry, and Commerce, thereto authorized by the President of the Republic in council of his ministers and with the consent of the Government Council, of the one part, and of the other part The Italian Colonization Society, composed of the following corporations and individuals, namely: The Bank Credito Italiano, established in Geneva and Milan; the bank of Manzi & Co., established in Rome; Commandatore Ernesto de Angeli, Italian senator, Milan; Commandatore Juan Bautista Pirelli, of Milan; Baron Alberto Treves, banker, of Venice; Alberto Vonwiller, banker, of Milan; and the bank of Kusler & Co., established in Turin, and all represented by Commandatore Juan Bautista Cerletti under a power of attorney executed in Rome on the 29th day of March last.

There is nothing that Venezuela needs more than colonization on a sound basis, and, if the provisions of this contract are carried into effect, it should prove of inestimable utility in developing the agricultural and mineral wealth of the country. Under this contract the colonization company undertakes (1) to bring to this country during every three years three thousand European families, principally of the Latin race, fit for agriculture and known to be of good behavior, all which facts shall be certified by the consuls at the various ports of embarkation; (2) to erect buildings for the colonists and furnish them with agricultural implements, and to supply them with food, clothes, and medicine until they shall have reaped their first crop, and also to build a church, public offices, and schools in each colony; (3) to establish a bimonthly service of steamships between Italy and Venezuela, touching at Barcelona de España, Teneriffe, and other ports and terminating at La Guayra or Puerto Cabello, and also calling, if required to do so, at any other ports subject to the fiscal laws of Venezuela; and to carry the mails to all such ports free of charge, the regular fare for passengers and freight not to exceed that charged by ships of like class and tonnage as those used by the company; and it agrees to charge only half fare to all employees of the diplomatic service (for themselves and their families) who use the ships, and to accord to them free passage if they officially reside or are going to reside abroad; (4) to establish in Caracas a banking institute, with branches in such districts of the Republic as may be deemed advisable, for the purpose principally of lending on mortgage to agriculturists and cattle breeders, the capital of such bank to consist of 20,000,000 bolivars ($3,860,000), 12,000,000 of which shall be devoted to ordinary banking business and the remaining 8,000,000 to lending as above mentioned; these two funds shall be kept separate and not allowed to entrench one on the other; the interest on loans shall not exceed 7 per cent, and the bank has power to issue notes according to the provisions of the now existing banking law; (5) to grant to the National Government the free use of all ways of traveling and communication that it may construct; (6) to grant, after four years of cultivation, to each family a house of the colony and to each colonist 3 hectares of the 6 hectares (14.8 acres) which shall have been allotted to him for cultivation; (7) to deposit in the Bank of England, as a guaranty for the execution of this contract, and within three months from the date on which the same shall be approved by the National Congress, the sum of 200,000 bolivars ($38,600), which shall remain there until the company establishes the above-mentioned bank in Caracas and settles the first five hundred families, and shall be forfeited to the Government of Venezuela in the event of the company failing to execute the'r

contract.

On the other hand, the Government undertakes (8) to grant to the company uncultivated land for the immigrants (of not less than 10 years of age) at the rate of 6

hectares (14.8 acres) per head, and any child under 10 years of age brought into the country by an immigrant family shall, on attaining that age, be entitled to all the rights and privileges of an immigrant; (9) to make no future contract of this nature with any other individual or company who should wish to bring agriculturists direct from Italy; (10) to permit the importation free of duty of agricultural implements and machinery used for manufacture of produce and construction of buildings and of all ways of communication, after the company has complied with the conditions imposed by law; (11) to grant to the company the preference (ceteris paribus) in the development of all mines discovered in lands adjoining the colonies, and in the establishment of means of communication between the colonies and with other parts of the Republic; (12) to pay to the company the sum of 18 bolivars ($3.47) annually during the term (fifteen years) of this contract, for each immigrant of 7 years of age and upwards brought into the country and attached to a colony.

The company undertakes (13) to sell to the National Government, whenever it is desirous of purchasing, all telegraph lines at a price to be arrived at by the appraisement of experts; (14) to transfer to the Government without indemnity the entire ownership of the said lines when they shall have been constructed forty years; to transfer to the municipality in which they shall be situated all telephone lines after fifty years, and to the National Government at the end of ninety years all railways, tramways, etc. The rates to be charged by the company for the use of all the above means of communication shall be settled by mutual agreement between the Government and the company.

As to the colonists, it is provided that they may engage in any branch of agriculture which they like best; but where the lands are suitable for the cultivation of wheat or of the vine, the colonists shall devote to that purpose a third part of the land allotted to them.

The Government reserves the right to enter into similar contracts with any other countries.

This contract is to endure for fifteen years from the time of the approval of Congress, and is prorogable for a like term and under the same conditions, unless it shall have been denounced before the commencement of the last year, or the society shall have failed to perform its obligations and the Government shall have drawn attention to the want of compliance with such conditions. It is also stipulated that if the society is desirous of introducing immigrants before Congress consents to the contract, it may do so, and the Government will furnish land under the present immigration law, and when Congress sanctions the contract it shall have the benefit of its provisions; but that if Congress should not sanction it, the Government will pay the passages of the immigrants in accordance with the provisions of the present law.

As is seen, this is an extensive and well-considered contract, which we hope Congress will ratify, for, as we have said, properly performed, it must result in enormous advantage to the country.

The Department is in receipt of a communication from Consul Plumacher, of Maracaibo, dated June 17, 1898, covering the same information and inclosing a copy and translation of the contract.