can and European goods. The increased demand in France for ground-nuts, for oleaginous purposes, makes the French merchants and traders keen competitors with the English in the purchase of these nuts from the natives; and finding that the latter give the preference to many of the English articles of manufacture, the French have of late introduced the system of trading with the natives for cash, instead of the barter trade with goods hitherto exclusively pursued; and to so great an extent has the cash trade been introduced that it has materially affected the importation of goods, and a consequent deficiency in the colonial custom revenue has taken place.

The colonial legislature, with a view to meet this altered state of trade, has lately passed an ordinance, (which, however, has not yet been confirmed by her Majesty,) abolishing the four per cent. ad valorem duties hitherto paid upon the importation of any goods into the colony, and have adopted an export duty of one and a half cent per bushel (of twenty-eight pounds) on ground-nuts, and four cents each on hides. By this new system of taxation the man who trades with cash will contribute equally with the man who trades with goods towards the colonial revenue.

The unfortunate differences in the United States have, during the last twelve months, severely affected the importation of American goods, which has fallen off nearly one-third, while the exports remain nearly the same, the produce being bought by bill or cash, instead of being in exchange for American manufactures. Peanuts no longer arriving in the northern from the southern parts of the Union, it has created a greater demand for those raised in Africa, the best quality of which is to be had in the Gambia.

Comparative statement of number of vessels entered Bathurst during 1860 and

Number of vessels cleared from the port of Bathurst during 1861.

I have the honor to forward the following report in accordance with the consular instructions as contained in the 153d and 154th sections of the consular regulations.

The colony of Sierra Leone, ceded to the British in 1787 by the native Tunanch chiefs, embraced an extent of about 500 square miles. Its southern part, Cape Welling, lies in about 8° 10' north latitude, and its northern part, Freedin, lies in about 8° 30' north. It is mostly mountainous land, having an elevation of from 2,000 to 2,500 feet above the level of the sea. It was first settled by a party of free blacks from Nova Scotia, in the year 1792, and their descendants to this day are called settlers in the colony.

The colony is divided into four districts: the first and second, and eastern, comprising the villages of Kissy, Wellington, Hastings Newlands, Allentown, Rokelle, Fraser Town, Dunham, and Waterloo; the mountain district, comprising Wilberforce, Murry Town, Aberdeen, Gloucester, Bathurst, Regent, and Charlotte. The Banana islands, dependencies of the colony, are also included in this district, and have the small villages of Dublin and Ricketts on them. The eastern district includes the villages of Hamilton, York, Goodrich and Kent. Each district is under charge of an officer styled manager, who is accountable to the colonial government in Freetown, the seaport and capital of the colony. The government of the colony is vested in a governor and a council of seven

members, all of whom hold colonial appointments under the home government, with the exception of one, a merchant of the colony, and all of whom are styled honorable. They are responsible only to the home government, and the laws they pass are submitted to the Queen and confirmed by her before the colonists are aware of their existence. The people of the colony have no voice whatever in their government, nor in the election of the members of council above mentioned.

The commerce of the country has fallen off considerably the past year, in consequence of the American difficulties and a failure of the ground-nut crop. For a test of the imports and exports of this colony I would refer you to the annual report from this consulate for the year 1860. The imports from the United States for the present year show a fair average with those of past years, if the general state of commerce is taken into consideration. The colony being to a great extent dependent on the United States for several of the staple articles of its trade, our difficulties have naturally interfered with the general facilities of trade. The following table gives a correct idea of the imports for the present year:

With the above imports we have sundry small consignments of gunnybags, corn meal, alewives, mackerel, salt fish, herring in barrels, gunpowder, butter, cheese, lard, biscuit, kerosene oil, kerosene lamps, paints, manilla and hemp cordage, onions, potatoes, pork, hams, oars, cheese, bedsteads, platform scales, small boats, brown and white sugar, wine bitters, cider, medicines, coal tar, tar, pitch, nails, trunks, cigars, &c., &c., amounting in the aggregate to about $50,000, giving a grand total of $313,742 50.

The exports to the United States for the same year show the following figures:

The excess of importations over exportations is accounted for by vessels taking specie and native gold; whence is not reported; and also by the reshipment of American goods in the same bottoms to adjacent rivers.

The subjoined table will show the amount of American tonnage employed in the trade between this colony and the United States:

The ground-nut crop for the past year has been a complete failure. In good seasons this is a very important item in the commerce of the colony, and attracts a large amount of French tonnage for its exportation. This article finds its best market in France, and in consequence of the very heavy differential duties in that country imposed on all foreign vessels, the carrying is monopolized by French shipping.

There has been considerable of the land about this colony ceded to the English during the past year. The territory in the Sherbro country, known as the Bendo, was ceded to this colony by Thomas Stephen Caulker, Sherbro chief, and her Majesty's steamship Falcon, Commander Hensage, took formal possesson of it on the 28th of March by hoisting the English flag and firing a royal salute. Tuesday, April 2, a treaty was concluded between Governor Hill, of this colony, and a native chief styling himself Bekkantah, King of Quia. By this treaty a portion of the Quia country, directly inland of the colony, about sixteen miles long and ten miles wide, is ceded to the colony, the King of Quia receiving an annual stipend of $100 as an equivalent.

Many of the chiefs of the Quia country, and especially those owning the particular portion of land, refuse to acknowledge the treaty, as they were not consulted with regard to it, and the so-called King of Quia had not the power to make such transfer of their country without their consent.

The chiefs have, without doubt, the best side of the argument, as the stipu lations of the treaty were agreed to at public meeting at Freetown, when Beh Cautah and the chiefs with him had no option but to sign any article that might be put before them. An expedition was fitting out at this port for the purpose of punishing the chiefs of the Quia country, who had been guilty of several outrages upon quiet Sierra Leone traders. Beh Cautah and a few chiefs with him came to terms voluntarily to beg that their country might not be in