the commencement of the fair, make their selections of goods, settle their business, and employ the latter part of the fair only for their money arrangements, or in preparing for Leipsic. Strange to say, even the beautiful summer weather injured business here, especially that of cloth and buckskins, the attention of the dealers in these articles being exclusively directed to summer stuffs, the demand for which, particularly for coats and pantaloons, exceeded the supply. Of the heavier stuffs, only black cloths sold at all well; satins, zephyrs, and threequarter cloths found hardly any sale. The dullness was much complained of by the cloth manufacturers from the Odenwald and Hesse, as their winter cloths usually sell well at the Easter fair, in cold, raw, spring weather. The warm weather was favorable, also, to summer stuffs for chalis and wrappers, and those in barege were much in demand, but woollen and half woollen wrappers were quite disregarded.

The transactions in manufactured goods were so far satisfactory that all the newest and most fashionable designs from the Saxon manufacturing districts, and also from Elberfeldt and Berlin, found a ready sale. It is rather characteristic of the present time that it is impossible to name any single article of this kind worthy of special notice. The manufacturers and wholesale dealers invent the most extraordinary names for their goods, in order to please their customers with apparent novelties. There were, therefore, Garibaldis, Victorias, Imperials, Napoleons, &c., in the market, and, no doubt, if it had not been for the total absence at present of American customers, we should have had ladies' dresses ticketed Lincoln," "Seward," "Stanton," or Sigel;" for the greater part of these fancifully named articles relate to ladies' toilette. Smooth black silk goods; heavy manufactures of Lyons and Crefeldt, sold in large quantities and at low prices. The wholesale dealers, who had availed themselves of the crisis in the silk trade in the spring, were enabled to sell lower than at many of the preceding fairs; and the retailers were encouraged to buy, owing to the advance in raw silk during the last few days and weeks. Calicoes form one of the staple articles in all fairs, being always disposed of in large quantities. This time, however, the prices were so depressed that the wholesale dealers had little beyond the expensive honor of selling. English lustres, alpacas, paramattas, and mized, sold very well, and it is remarkable that such articles are most in demand when of genuine English manufacture, although subject to a duty of 30 thalers, (or 821.)

This, however, may be explained by the fact of the German manufacturers being far behind the English in this branch. Bidefeldt linen, always a favorite article at fairs, sold but slowly at first, though afterwards improved so that thick linens at 25, 26 florins were easily disposed of. The reason, of course, is the searcity of cotton manufactures, owing to the American embarrassments.

The second week the leather fair begins, which is always a principal feature of the whole, and generally attracts a great number of strangers from all parts. even from the United States. But, as I have always mentioned above, America was not represented here at all this year, although it was expected there would be a large attendance owing to a want of supplies. It seemed, however, that the American agents have adopted the European plan of travelling about the country at other times than during the fairs to make their purchases, for it is hardly possible that there should be no want of this article after the Frankfort and Leipsic fairs have been almost entirely deserted by American customers during the last two years.

Altogether the business of the leather fair was not very brilliant. The buyers wanted low prices, which the manufacturers could not grant, as their profits would have been low enough already, even at the former prices. Raw leather and oak bark were always and still remain too dear in proportion to the prices paid for tanned leather. The traffic in tame sole leather and upper

H. Ex. Doc. 63-27

leather was not so active as in wild sole leather, as the supplies were much more extensive than was expected, so that a great part remained unsold. Tamed sole leather declined from 2 to 4 thalers per quintal, compared with the last autumn fair. Neats' and harness leather about 2 to 3 thalers. Neats' leather about 4 to 6; black and brown calf, about 5 to 6. Sheeps' leather, however, was in great demand, and sold higher. The wholesale prices were as follows:

5 skins bullock leather, prime sorts, per centner....

6 skins cow, more than 160 weight..

6 skins cow, 140 to 160 pounds.

6 skins cow, lighter and inferior quality

Sole leather, heavy lots..

Sole leather, lighter sorts..

Vache leather, according to quality...

Neats' leather

Harness leather, black, according to quality.

Calf leather, brown, 100, 112 black.

60 to 64 thalers.

60 to 63

66

56 to 59

66

52 to 55

56 to 59

50 to 55

66

55 to 65

66 to 72

66

The retail business of the fair was not so satisfactory as might have been expected, from the magnificent weather with which it was favored. The complaint of dullness was universal. And there is no prospect of an early improvement in this.

MAY 6, 1862.

Upon several former occasions, for instance, in my despatch No. 34, of 14th January last, &c., I had the honor to direct your attention to the increasing importance of the Pfalz, the Rhenish province of the kingdom of Bavaria, and its industrial and commercial relations with the United States. The tobacco and wine trade, especially, form some of the prominent links of the latter. Both have recently suffered much from our domestic embarrassments as well as from the higher tariff. For the last twelve months the importation of American tobacco to the Pfalz had in the same degree ceased as the export of the common cigars of the Pfalz to the United States. Since a few weeks, however, the business has, to a certain degree, been reopened, offers especially being made of the mild Kentucky tobacco, which always was a favorite sort with the manufacturers and dealers here, at prices too very acceptable under the prevailing circumstances, both to vendors and purchasers. Under these prospects, the demand of the tobacco of the Pfalz, which was increasing from want of American tobacco, has so decreased, that at present almost an entire stagnation is prevailing in that branch of the business. The prices, however, of the home article maintain as yet their former rather high rates of 15 to 19 florins, or $6 to $7 60 per quintal, notwithstanding the abundant supplies which are still in the hands. of the producers at the principal places where tobacco is cultivated. At any rate, it is a fact, favorable to the importation of American tobacco into the Pfalz, that the predilection of cultivating tobacco on the part of the smaller producers has considerably abated, so that already in the present year a much less quantity will be produced than in former years, when the export to America was flourishing.

Finally, I beg to add the gratifying circumstance that a number of agents of well-known American tobacco houses, especially from Maryland and Kentucky, are travelling again over Europe, offering their considerable supplies on hand, and doing satisfactory business.

JUNE 18, 1862.

The treaty of commerce recently concluded between France and Prussia has just now been under consideration by the senate of Frankfort, to which it had

been submitted by the Prussian government, with the request that the legisla tive bodies of the free city would give it their consent and sanction. The senate had referred the matter to the Board of Commerce, and the latter to some of the largest business firms here for their opinion, which is said to have been favorable to the treaty. This is not the case with many of the other states of the German confederacy. On the contrary, in most of them it has produced serious dissensions and many objections, especially with regard to some duties on articles of importance to local industry. Still these discussions, both in legislative assemblies and in newspapers, have done much good by throwing a light on many matters which, otherwise, would perhaps not have been fully explained. One point in the treaty, especially, is the subject of lively discussions, being of particular interest to publishers and newspaper writers, namely, that part of the proposed tariff which relates to the paper trade. By this treaty the export duty on German rags, the chief material of the paper manufactories, is considerably reduced; a measure to which even such traders as are, in other cases, usually in favor of free trade and low tariffs, are opposed, as the prices of paper generally will be raised by it. Passing over this national question of economy, I beg to add a few statistics which have been brought to light on this occasion. In general, it may be stated that the annual consumption of paper in Germany, for newspapers alone, amounts to more than 425 million sheets, and for the book trade to 175 million sheets, without taking into calculation the consumption for other purposes of writing and printing, which is far more extensive. This amount is increasing from year to year. The great importance of the German paper trade for foreign countries may be best judged of at the present international exhibition in London, where that branch of industry is admirably represented, and may be justly asserted, that the German paper manufactories are considerably cheaper than those of England, and that the exports of paper from Germany exceed the imports by about eight millions of pounds.

can

Germany possesses 276 machines and more than 550 tubs for manufacturing paper, in which about 23,000 persons are directly engaged, with wages of 4 million florins, and are able to produce more than 146 million pounds of paper yearly. The annual produce of rags in the countries of the "Zollverein " not, however, be estimated at more than 151 million pounds, of the value of about twelve million florins. Of this quantity a large portion is exported principally to England, where German rags are paid for higher than those of any other country, so that Germany is obliged to import rags itself, the excess of import amounting to 1 million pounds yearly. An extensive production of rags is usually considered as a proof of a nation's prosperity, and as beneficial to the producers as well as the consumers of paper. If this be true, the prosperity of Germany has not yet reached its proper height, as the home production of the raw material by no means satisfies the demands of the home manufacturers of paper, and this is the principal reason for opposing the abolition or even the reduction of the export duty on rags, as affecting a raw material which cannot be produced in the requisite quantities at home, nor be advantageously derived from abroad. By consumption of the cheap rags produced at home, a cheaper price for paper may be maintained, whilst by exporting German rags and working them into dearer paper abroad, the Germans will no longer be able to manufacture their cheaper sorts, and will be obliged to import dearer. It may be added that the more advanced manufacturing countries, such as Belgium, Holland, France, Switzerland, Sweden, &c., have either entirely prohibited the exportation of rags, or have rendered it difficult by imposing high export duties, and that in all countries, Germany included, the greatest efforts are constantly being made to find a substitute for rags in the manufacture of paper.

Allow me to add to these statements some remarks on the productiveness of Germany in a literary and artistic point of view, which is so closely connected

with the more material importance of the paper trade, and which bears witness to the depths and universality of intellectual life in Germany.

According to catalogues before me, from eight to ten thousand new books appear annually in the German book trade. Nearly 2,300 daily and weekly journals, literary and scientific, political and advertising, are published in about 750 places. In the year 1860 the new books brought into the market amounted to 8,500, and the periodicals to no less than 2,171, and the paper required for printing them was upwards of 425 million sheets, divided among the different States in the following proportions:

In order to afford a comparative view of the lively traffic in German newspaper literature, it may be interesting to consider the statistic notices furnished by the German Austrian postal reports, on their district, for the year 1860. I have to remark that the figures are those only of the newspapers forwarded by post. There were forwarded from

These figures do not include the quantity of paper used for publications not within the province of the German bookselling trade, such as the printed publications of Bible and religious tract societies, song books, catechisms, and national school books of all kinds, calendars, and almanacs, tales, legends, and story books hawked at fairs, and many other such. Neither do they include the masses of printed music, maps, and atlases, nor the consumption of paper for the countless productions of art, from the oil-color prints, steel and copper engravings, lithographs, photographs, and wood-cuts, which adorn the portfolios of the rich and the walls of their rooms, down to the kreutzer picture books for the children of the journeyman laborer. The quantity of paper annually used in Germany for these and other branches of literature and art, and for their advancement, in circulars, prospectuses, catalogues, &c., the whole forming a supply of intellectual nourishment, indispensable for the German people in their present advanced stage of civilization, nearly equals the quantity used for the same purposes in all the other European states together. Were a proof of this assertion necessary it would be found in the magnitude and extent of the traffic supporting and forwarding literature and the arts. There exists within the states of the "Zollverein" about 1,800 booksellers, second hand ditto, mapsellers, shops for music and art, employing 3,300 hands; about 1,400 printing establishments, for books and music, with 3,400 presses, and 10,300 workmen; 160 copper and steel plate and wood-cut engravers, with 550 presses and 1,200 workmen; and 5,000 booksellers with 5,500 persons employed.

The consumption of writing paper is proportionably great. In no country in the world is school education, properly so called, more widely diffused than in Germany. The admirable institutions which promote this object have served as a model for many other states. Germany possesses a vast number of public and private schools, whose efficiency is testified by so many rich English, French, and American families intrusting to them the education of their children. A French king was admired for his principles of government, who said that every peasant in his dominions could have his fowl for his Sunday dinner. Germany has a higher boast, that intellectual and literary food is accessible to the meanest of her people.

Similarly large quantities of paper are required for the purposes of legislation and the administration of the laws and government. It is a characteristic peculiarity of the German bureaucracy to write as much as possible, and the whole activity of many government officers consists in making reports. Lawsuits and trials are also for the most part conducted in writing, and so voluminously that he who reads over a law paper must turn over the leaves as fast as the director of an orchestra turns the leaves of music. A standing army of 5,430 lawyers, of whom no less than 4,153 belong to the countries of the "Zollverein," with the requisite staff of clerks, forms an insatiable body of customers to the paper trade.

The third great consumption of paper is industrial. Many branches of trade, for instance, manufacturers of paper for rooms, colored paper, mercan ile books, playing cards, portfolios, and various articles of card, pasteboard, and p