The commission immediately proceeded to work, for, on the suggestion of his excellency the governor general, the subject of Mr. Rees's cotton-cleaning estab lishments was taken into consideration at a special meeting, at which Mr. Paterson was present.

On Monday, the 21st, a meeting was held at the English Club, attended by the following commissioners: Neshet Bey, Reshad Bey, Mr. Clarke, Mr. Whittall, Mr. Paterson, Mr. Rees, Mr. Lafontaine, Major Mustapha Effendi, and Diran Effendi. The ordinance of the minister of commerce was taken into consideration, and Mr. Clarke was unanimously chosen vice-president. Boghos Effendi, retired functionary of the foreign office, was appointed chief secretary, on the ground of his knowledge of Turkish, English, and French.

The translation and promulgation of the ordinance was discussed, and instructions were given for drawing up a preliminary report.

On Thursday the commission met at the English Club. Present: Reshad Bey, Mr. Clarke, Neshet Bey, Mr. Whittall, Mr. Paterson, Mr. Rees, Mr. Peter Gout, Mr. Lafontaine, and Diran Effendi. Reshad Bey announced that the governor general had given instructions for printing the ordinance in Turkish, Greek, Armenian, and French, for distribution within the province. The commission took measures for printing the English translation and circulating it in England.

The committee adopted a report entering fully into the propositions of the government.

The next meeting will be held on Thursday at the konak.

On Thursday the imperial cotton commission met in the council room of the konak-Mr. Hyde Clarke, vice-president, in the chair, with Mr. Whittall, Mr. Paterson, Mr. Lafontaine, Mr. Peter Gout, Diran Effendi, and Mr. Rees. His excellency Mehemed Reshid Pasha held a conference with the commission. The members availed themselves of the first opportunity after their appointment. to pay their respects to his excellency, and to report to him their proceedings. Mr. Rees submitted to his excellency some standard specimens of cotton of Mr. Clarke, of Sokia. Mr. Peter Gout produced some ripened and unripened pods, respectively of American and Egyptian seed, grown on his chiftlick in this province. The specimens were directed to be sent to his excellency Savfet Effendi, minister of commerce at Constantinople.

His excellency the Pasha directed Diran Effendi to produce the Turkish, Armenian, Greek, and French copies printed of the decree of the minister of commerce, and took the opinion of the commission thereon.

His excellency called the attention of the commission to the seed question, and the necessity of making provision for next year's supply. The members of the commission were unanimously of opinion that American sced is that which succeeds best, but the difficulty of getting it is at this time great. Next to American, Egyptian is most available. The commission undertook to obtain reports on the seed question.

The attention of his excellency was called to the abuse of the Bozook in the haza of Memien, and those of Denishe, whereby the herdsmen let their cattle enter the cotton-fields, which, being a late crop, is exposed to their ravages. His excellency expressed his determination to adopt severe measures to prevent any abuse.

NOVEMBER 29, 1862.

In compliance with your instructions contained in the circular despatch of July 31, 1862, which reached here only a short time ago, I communicated immediately with the local authorities on the subject to which it refers, and I have the honor of enclosing translated copies of my correspondence in regard to the

same.

[Translation.]

CONSULATE Of the UniteD STATES,

Smyrna, October 28, 1862.

EXCELLENCY: In compliance to instructions which I have received from the honorable Secretary of State of the United States, I have the honor to inform you that the privilege of purchasing supplies from the public warehouses, duty free, is extended to the ships-of-war of any nation in ports of the United States which may reciprocate such privilege towards the ships-of-war of the United States in its ports, and the honorable Secretary of State instructs me to ask your excellency if the same privilege will be extended to ships-of-war of the United States in this port.

His Excellency MEHEMET RECHID PASHA,

Governor General of the Province of Smyrna.

GEMASILEVEL 20, 1278, NOVEMBER 12, 1862. SIR: The United States consul having addressed me an official letter, translation of which I herein enclose, you will please inform me if your instructions permit you to allow United States ships-of-war to take in their provisions free of duty.

CHIEFKET BЕІ,

Collector of the Customs, Smyrna.

[SEAL OF THE GOVERNOR.]

GEMASILEVEL 20, November 12, 1862. EXCELLENCY: I have the honor to acknowledge the receipt of your esteemed letter, with the translation of the letter addressed to you by the honorable consul of the United States of America at Smyrna, and beg to inform your excellency, in reply, that ships-of-war of foreign nations have invariably been allowed to take in their provisions free of duty.

[SEAL OF CHIEF COLLECTOR.]

His Excellency MEHEMET RECHID PACHA,
Governor General of the Province of Smyrna.

GEMASILEVEL 28, NOVEMBER 20, 1862. SIR: On receipt of your esteemed favor requesting me to inform you if United States ships-of-war are allowed to take in their provisions free of duty, I transmitted translation of same to the chief collector, and have the pleasure of sending you herewith copy of his reply.

JULIUS BING, Esq.,

United States Consul, Smyrna.

[SEAL OF THE GOVERNOR.]

DECEMBER 1, 1862.

I have the honor to inform you that the most marked feature in the commerce with the United States in the current year has been in the development of business in cotton and wool. The first shipment of cotton ever made from Smyrna to America was made at my suggestion in February last, and has been followed up by shipments to the extent of about $200,000. So great has become the demand for cotton that the article has been taken out of old beddings, furniture, &c., and exported to England and the United States. The new cotton crop is estimated at about 60,000 bales, and owing to the efforts of the cotton committee appointed by the Sublime Porte, and to which I had the honor to refer in previous despatches, and to the distribution of Egyptian and American seed, a great increase in the production may be expected next year.

American seed is preferred to all others, and we could not take more efficacious means for the promotion of the growth of cotton than by furnishing supplies of the same to the planters in Asia Minor, and I trust that measures to that effect will be taken by our government.

I have called the attention of the trade here to cotton gins and to agricultural implements, and in my despatch No. 52 I took the liberty to request you to call the attention of American manufacturers to the same. The demand for these articles will increase in this market in the same proportion that progress is being made in the production of cotton and of cereals, and the prospects for such progress are very fair, the attention of the Turkish government being now diligently directed to the promotion of agricultural interests.

Navigation of Smyrna with foreign countries for the year 1860, in which the United States figure to the extent of 15,810,460 piasters or about $600,000 for imports, and 24,518,706 piasters or about $900,000 for exports.

I shall have the pleasure of forwarding the statistics for 1861 and 1862 as soon as I shall be able to obtain authentic information in regard to the same.

Conformably to the instructions of the President, by which the consuls of the United States are required to transmit from time to time to the department information of the condition of their respective consulates, and of the state of trade.

agriculture, and manufactures, in the districts within which they severally exercise consular jurisdiction, I have the honor to transmit the following report: It is reported that a line of railway will be soon inaugurated between this city and Jaffa. The nature of the country will render the execution of this enterprise extremely difficult, which, together with the fact that its projectors have applied to the Porte for financial assistance, renders it highly probable that it will be abandoned, at least for the present. There can be no doubt that this project, if carried out, would greatly conduce to develop the resources of the country, to bring its people into closer and more sympathetic connexion with western ideas and habits of thought, and to correct, in a great measure, their prejudices against foreign innovations as unnatural and unhealthy, and as calculated to cripple their strength and undermine their institutions. * It is presumed that the department is already aware that the export trade of Palestine is confined almost exclusively to the states bordering on the Mediterranean, viz.: France, Italy, and Austria. This trade, however, is at present, and has for many years been, declining. Owing to the imbecility and injustice of the local government, which has neither the inclination to investigate nor the ability to correct the abuses of its agents and factors, and the turbulent and warlike disposition of the mixed populations, nominally subject to its control, the resources of the country are being rapidly wasted, whereas, under more favorable auspices, they might be almost indefinitely increased.

*

The manufactures of Palestine, few and rude as they are, are almost entirely dependent upon the travellers who annually resort thither from motives of piety, study, or curiosity. They consist for the most part of glassware, (for which considerable quantities of borax are annually imported from Egypt,) straw matting, and wooden ware.

Agriculture is generally neglected. The staple products are wheat, barley, doura, cotton, and olive oil. But little more is cultivated than is sufficient to supply the wants of the population, the residue is shipped in English and French bottoms to Trieste, Messina, and Marseilles.

Perhaps if the government could or would interfere for the protection of the laboring classes (the Fellahin) against the rapacious incursions of the neighboring Bedouins the agricultural interests of Palestine might improve. At present, however, I see no prospect of a change for the better.

The climate of the plains about Jaffa and the neighborhood of the Dead sea is favorable to the cultivation of cotton and the sugar cane. The fibre of the first quality of cotton is fine and strong, though the staple is short. Considerable quantities of barley, doura, sesame, and tobacco, are grown in the mountainous regions. Olive oil and sesame are exported to France.

The principal imports consist of hardware and cotton and woollen goods from England, and sugar and coffee (from West Indian plantations) from France. There is no exchange on the United States. The American dollar is worth 25 piasters; the sovereign is worth from 125 to 127, and the Napoleon from 96 to 101.

NOVEMBER 10, 1862.

I have the honor to acknowledge the receipt, about two weeks since, of your circular bearing date July 31, 1862. I have communicated its contents to the government of this paschalik, agreeably to intructions; but have not been able to obtain any satisfactory information touching the topics to which it called my

attention.

The Pasha professes to be entirely ignorant of the privileges which his government has been in the habit of extending to the armed vessels of the United States calling at its ports, and says, however, that until he shall have received definite instructions as to what course he must pursue in the premises, the privileges which such vessels may have enjoyed will not be in the least abridged.

I may state that, from my own knowledge, our vessels-of-war calling at Jaffa have uniformly been permitted to purchase their supplies of the authorities duty free.

ALEXANDRIA.-WM. S. THAYER, Consul.

JANUARY 27, 1862.

I have the honor herewith to transmit tables, marked A and B, respectively, showing the exports and imports of this port for the year 1861, prepared from the official records of the custom-house.

The values are stated in piastres au tarif, of which twenty and one-half are equal to one dollar of our currency. The quantities are stated in the denominations of the custom-house, mostly those which are in familiar use throughout the mercantile world. The roll is almost precisely equal to the pound avoirdupois, and two and three-quarters of these make one oke or oque. The quintal or cantar is nearly equal to one hundred weight. The ardeb is about five bushels.

It will be observed that the gross value of merchandise imported during the year was equal to $14,206,053, and of that exported equal to $18,192,370.

By far the largest proportion of the commerce in both directions is with England, which country furnishes nearly one-half in value of the imports, and absorbs nearly two-thirds in value of the exports.

The principal article of export is cotton. The quantity and value of this staple distributed to various countries were as follows:

The average value for the year per pound, according to the custom-house books, is thus 117 cents, or about one-half the present quotation. The fluctuations to which the traffic in this staple has been subjected by reason of political agitations have been referred to in my despatches, numbers 4, 6, 7, 8, 10, 12 and 13.

Grain stands next in consequence among the exports; the quantity of wheat alone exported during the year having been valued at $317,938; besides considerable quantities of Indian corn, (blé de Turquie,) beans, barley, &c.

Some of the other principal articles of export are gums, rags, wool, ice, coffee, linseed, dates, ivory, mother-of-pearl, and ostrich feathers.

The commerce with America, although believed to be increasing, is not as yet sufficient to require a separate column in the tables. The number of American vessels which arrived during the year was 24 out of a total of 1844, of which 204 were English. These numbers are exclusive of the arrivals of steamships. The exports to America from Egypt are chiefly rags and gums. The imports are chiefly machinery, furniture, and ice. Nearly all the machines used in the cleansing of cotton have been imported from the United States, as well as a considerable portion of the rolling-stock used upon the viceroy's railway to Suez.

The natural impediment to direct commerce between the United States and