On the 1st of January, 1861, there were 27 ships in port. Between that date and the 15th April, (when I commenced the duties of the office,) 44 arrived, 68 departed, and one was sold. From April 15 to December 31, inclusive, 91 arrived, 75 departed, and three were sold, leaving in port, at the latter date, 13 ships. The character and value of the cargoes imported and exported have been stated in the several quarterly reports of my predecessor and myself. The only change in port dues, &c., that I am aware of, is an increase of twentyfive per cent. in the charge for pilotage, while pilots are forbidden, under penalty of dismissal, to receive "backslish," or gratuities, which was a great cause for complaint by shipmasters, and liable to great abuses; the ship which was willing to pay the largest gratuity invariably procuring the most experienced and efficient pilots, &c. Herewith enclosed I have the honor to transmit printed orders, &c., relative to the change above noted.

The only "useful and interesting information relating to agriculture, manufactures, population, and public works," I can give, is the following:

Great efforts are being put forth for the encouragement of the growth of cotton in India, and giving facilities for its export. The success hitherto does not seem to have been commensurate with the expense and exertions laid out, especially in the export from this port. I am informed, however, that large quantities of the article have been exported from Bombay, an account of which will, no doubt, be furnished you by the consul at that port.

A large amount of capital and labor has been invested in the culture of tea, and the enterprise is reported to have been thus far eminently successful; the shares of tea companies commanding heavy premiums in the market. About 2,500,000 pounds have been produced the present season, and it is believed that in the course of the next season the amount will be increased to 3,000,000 pounds, and in a few years the product will be limited only by the demand.

At the public sales of teas held in this city the average prices obtained was one rupee per pound; the highest being two rupees, and the lowest nine annas. The tea is produced in Annam, Cachar, Daijeiling, and other hilly districts of India, the latitude and altitude of which are found congenial to the plant; the strength of the article is much greater than China tea, but to most tastes the flavor is not so palatable. No green teas have as yet been manufactured in India. An ordinance of his excellency the govenor general, in council, dated December 27, 1861, prohibits the export of saltpetre from India, except in British ships bound for Liverpool or London.

JANUARY 9, 1862.

In my despatch No. 1, of 1862, I alluded to an ordinance passed by the governor general, in council, dated December 27, 1861, and stated that any modification of the same should be communicated to the department the first opportunity. Such modification having been made under circumstances of great hardship and loss to a number of our ships in port, I have thought proper to lay the same before you, with a relation of circumstances attending thereon. The ordinance of December 27, 1861, prohibited the exportation of saltpetre from any port in British India, except in British vessels, bound to London or Liverpool. I may here be permitted to state that a different practice prevails here from that of the ports of the United Kingdom of Great Britain. Goods are here cleared through the custom-house, and the export duty paid thereon, prior to their being placed on shipboard, and frequently before they are purchased by the shipper; while in the ports of the United Kingdom goods are not cleared through the custom-house until the ship is ready for sea. At the date of the ordinance of December 27 some saltpetre had been passed through the custom-house, and the export duties paid for several American ships, amongst them the "Daring," of Boston, and the "Mogul," of the same place. After the passing of the ordinance the destination of the Mogul was

changed, and an application made for permission to transfer the saltpetre then on board of her to the Daring, which was granted, and the saltpetre transferredthus, so far as the government was concerned, the article was exported.

On the 3d January, 1862, the governor general, in council, passed another ordinance, modifying that of December 27, and ordering all saltpetre on shipboard to be reloaded, except it was in British ships bound for ports in the United Kingdom. I enclose herewith copies of said ordinance. (See No. 1.)

The facts above stated having been placed before me by the shipmasters intrusted with an application for aid in the matter, I on the 4th of January addressed a communication to the government on the subject, a copy of which I enclose herewith. (See No. 2.) On the 8th January I received a reply, which I transmit. (See No. 3.) You will thus perceive that I am powerless to render any aid to those who have suffered so much loss in convenience and delay. One ship, the "Daring," at the time of the promulgation of the last ordinance, had all her cargo on board, and her pilot and steamer engaged to take her to sea. The saltpetre on board of her was stowed at the bottom of the lower hold, thus involving the entire discharge of her cargo to reland the article.

UNITED STATES Consulate General,

Calcutta, January 4, 1862.

SIR My attention has been called to an ordinance of his excellency the governor general, in council, dated January 3d instant, relative to the export of saltpetre, and ordering all on board ship to be relanded, except it be in British ships bound to the United Kingdom. While I fully recognize the right of her Majesty's government to pass such laws as she deems proper, and the duty of all persons within her jurisdiction to yield a cheerful obedience thereto, I exceedingly regret she should have deemed it necessary for her safety to order the relanding of saltpetre which had been purchased in good faith, regularly cleared from the custom-house, the export duty paid thereon, and placed on shipboard, it being ex post facto in its action, and entailing great loss and delay on the ships thus having the article on board. I have, therefore, most respectfully to request a reply to the following questions:

1st. Will the government pay the expense incident to the reloading of saltpetre which has already been cleared at the custom-house, the export duty paid, and placed on board ship under the orders and directions of the customs officers of her Majesty's government?

2d. Will ships having salpetre on board be permitted to retain the same, not intending to leave the port (which, under the circumstances, would be impossible) until the questions pending between Great Britain and the United States of America are solved, no information of a declaration of war between them having been declared here?

3d. Should any shipmaster refuse to comply with the order to reland, what will be the penalty for such refusal, and in what manner will it be enforced? An early reply from his excellency the governor general in council will be deemed a great favor.

I have the honor to be, sir,

very respectfully,
, your obedient servant,
SAMUEL LILLY,
United States Consul General, Calcutta.

The SECRETAry of the Government of Indies,

Foreign Department.

From Colonel H. M. Durand, C. B., officiating secretary to the government of Indies, to Samuel Lilly, esq., consul general of the United States.

FORT WILLIAM, January 7, 1862.

SIR: I am directed by the governor general in council to reply to your letter of the 4th instant, in which you solicit answers to the following questions:

1st. "Will the government pay the expense incident to the relanding of saltpetre which has already been cleared at the custom-house, the export duty paid, and placed on board ship under the orders and directions of the customs officers of her Majesty's government?"

2d. "Will ships having saltpetre on board be permitted to retain the same, not intending to leave the port (which, under the circumstances, would be impossible) until the questions pending between Great Britain and the United. States of America are solved, no information of a declaration of war between them having been received here?"

3d. "Should a shipmaster refuse to comply with the order to reland, what will be the penalty for such refusal, and in what manner will it be enforced?" In answer to the first question, I am to inform you that the governor general in council will not pay the expense incident to the relanding of the saltpetre under the ordinance of the 3d instant, and that his excellency cannot recognize a claim to such repayment; any such claim, if preferred at all, must be preferred to her Majesty's government.

As to the second question, the governor general in council will permit ships not intending to leave the port to retain on board the saltpetre already loaded, upon an undertaking, given in writing by the master and the agent of the ship, that until the prohibition of the export of saltpetre shall have been withdrawn the ship shall not leave the port, and that the saltpetre shall not be shifted into any boat or vessel except for the purpose of relanding it in Calcutta; such permission remaining in force until the governor general in council shall notify to the consul of the nation to which the ship belongs that it has ceased.

In answer to the third question, the governor general in council considers it sufficient to say that the master of any ship, British or foreign, who may refuse compliance with the laws and orders in force in a British-Indian port, will do so at his risk, and must be prepared for the consequences attaching by the laws of British Indias, and by the law of nations, to his illegal conduct. I have the honor to be, sir, your most obedient servant,

H. M. DURAND, Officiating Secretary to the Government of India.

SAMUEL LILLY, Esq.,
Consul General of the United States.

FORT WILLIAM, January 3, 1862.

Whereas it is declared by the ordinance passed by the governor general of India on the 27th of December, 1861, that until the governor general in council shall otherwise order, it shall not be lawful for any person to export saltpetre from any part of her Majesty's territories in India, except in a British vessel bound either to the port of London or to the port of Liverpool; and whereas it appears from the instructions since received from her Majesty's government that the prohibition to export saltpetre from India, so far as regards British vessels, is to apply only to such vessels when bound to ports not within the United Kingdom, the governor general in council is pleased to order, accordingly, that it

-H. Ex. Doc. 63 9

shall be lawful to export saltpetre on British vessels bound to any port of the United Kingdom, anything in the said ordinance notwithstanding. By order of the governor general in council.

W. GREY,

Secretary to the Government of India.

JANUARY 3, 1862.

The following ordinance, passed by the governor general of India on this. date, is promulgated for general information:

AN ORDINANCE to prohibit the exportation of saltpetre, except in British vessels bound to the United Kingdom, passed by the governor general of India, under the provisions of 24 and 25 Vic., cap. 67, on the 3d of January, 1862.

Whereas, in a despatch from the secretary of state for India, dated the 3d of December, 1861, the instructions of her Majesty's government have been received by the governor general in council to take immediate measures for preventing the exportation of saltpetre from India, except in British vessels bound for the ports of the United Kingdom, and to cause any saltpetre which previously to the receipt and contrary to the conditions of the said instructions may have been placed on board vessels still in port to be relanded; and whereas, in consequence of the said instructions, the governor general in council has this day ordered that it shall be lawful to export saltpetre on British vessels bound to any port of the United Kingdom, anything in the ordinance of the governor general of the 27th of December, 1861, notwithstanding; and whereas it is expedient to make further provision for giving effect to the instructions now received from her Majesty's government: It is therefore ordered as follows:

I. Until the governor general in council shall otherwise order, it shall not be lawful to export saltpetre from any part of her Majesty's territories in India, except in a British vessel bound to a port of the United Kingdom.

II. All saltpetre which previously to the promulgation of this ordinance may have been placed for exportation on any vessel still being within a port of her Majesty's territories in India, and not being a British vessel bound for a port of the United Kingdom, shall be relanded.

III. No collector of customs or other officer shall grant a port clearance to any vessel having on board saltpetre, other than a British vessel bound for the United Kingdom.

IV. If any person shall attempt to export saltpetre contrary to the provisions of this ordinance, the same shall be seized and confiscated.

V. Any custom-house officer may, without warrant, seize saltpetre liable to confiscation under this ordinance.

W. GREY,

Secretary to the Government of India.
MAY 3, 1862.

I have the honor to transmit, enclosed herein, two copies of the recent tariff act passed by the governor general in council, and which is now in force.

The following act of the governor general in India in council received the assent of his excellency the governor general on the 23d April, 1862, and is hereby promulgated for general information:

AN ACT to amend act X of 1860 (to amend act VII of 1859, to alter the duties of customs on goods imported or exported by sea.)

Whereas it is expedient to amend the law relating to customs duties, it is enacted as follows:

1. From and after the passing of this act, in lieu of the customs duties authorized to be charged in act VII of 1859, (to alter the duties of customs on

goods imported or exported by sea,) act XXIII of 1859, (to alter the rates of duty on goods imported or exported by land from certain foreign territories into or from the presidencies of Madras and Bombay, respectively,) and act X of 1860, (to amend act VII of 1859, to alter the duties of customs on goods imported or exported by sea,) there shall be levied and collected the duties as contained in the two schedules, A and B, annexed to this act: Provided, always, That nothing herein contained shall be deemed to alter the existing duties upon salt and opium, or to authorize the levy of duties in any free port, or to affect the provisions of act VI of 1848, (for equalizing the duties on goods imported and exported on foreign and British bottoms, and for abolishing duties on goods carried from port to port in the territories subject to the government of the East India Company,) and of act VII of 1848, (to except certain free ports from the operation of section 3, act No. VI, of 1848, and otherwise to amend that act.)

Schedule A.

Rates of duty to be charged on the following goods imported by sea into any port of India not being a free port:

Rates of duty to be charged upon goods exported by sea from any port in India not being a free port:

Bullion and coin, free.

Precious stones and pearls, free.

Horses and other living animals, free.

Sugar and rum, free.

Spirits, free.

Jute, free.

Hides and skins, raw, free.

Books, free.

Maps, prints, and works of art, free.
Teak timber, free.

And the collector of customs, subject to the general orders of the government of India, shall decide what articles come within the definition of machinery, and such decision shall be final in law.