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OCTOBER 1, 1862.

In making my report to the department, in accordance with section 153 of the consular regulations, I find it very difficult to arrive at any exact conclusions as to the state of trade and commerce in this consular district, owing to the want of any complete record of the imports and exports.

The following general observations will show the rules adopted by the Peruvian government in relation to foreign vessels coming here:

Foreign vessels, on their arrival in Peru, can enter only the following ports: Iquique, Arica, Islay, Callao, Huanchaco, San José, and Paita. Should they enter any other port, the captains would be subject to a fine of five hundred dollars, and one thousand dollars in case passengers or correspondence be landed or taken on board, while the receiving or discharging of merchandise would subject the vessel to confiscation. They are prohibited from carrying on the coasting trade, but may discharge their original cargo in one or more of the above-mentioned ports, and take in Peruvian produce for export. Before communicating with the shore, they must await the visit of the captain of the port and an officer of the coast guard, to whom the master has to deliver a general manifest of his cargo or his bills of lading, and a note of provisions for ship's use. Two days are allowed to correct errors or omissions in the ports of Iquique, Callao, Huanchaco, and San José, three days in Arica and Paita, and four days in Islay. Any other errors or omissions that may appear after the time specified subject the vessel to a fine. The baggage of passengers and crew is free. Merchandise may remain in Callao and Arica for an indefinite period, but can be only three years in any other of the above-mentioned ports.

Exportation.-Vessels of any flag may load cargoes of any Peruvian produce, including the precious metals, coined or in bars.

Port dues.-Foreign vessels measuring not less than two hundred tons, according to their register, have to pay eight dollars and two reals per ton register. Weights.-Those in use are the Spanish. One quintal contains four arrobas, of twenty-five pounds each. One pound is sixteen ounces. In silver, the mark is used, which is equivalent to eight ounces. The mark of gold is divided into fifty castellanos. 100 lbs. Spanish is equal to 101 English, or 46 kilogrammes


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Long measure.-The Spanish vara in use is equal to thirty-three English inches, or 847 millimetres. Yards and metres are reduced as follows: 100 yards 108 varas; 100 metres 118 varas; 100 aunes = 81 varas. Currency. The coin current in the country is Bolivian, and for which goods are sold according to the exchange ruling on London.

Custom-house store-rent.-Ten per cent. per one hundred dollars per month is chargeable on the bond value of the goods when despatched for home consumption; but foreign goods taken for exports can remain one year in the customhouse stores of Arica and Callao, and six months in the other open ports, free

of rent.

The imports from the United States, during the last year have been very light. The reason of this, without doubt, is the interruption of trade, caused by the existing war there. Formerly large quantities of guano were shipped from here to the United States, and, as a natural consequence, large imports of various kinds of merchandise were made from there here. But since the commencement of the internal difficulties in our country the shipment of guano there has entirely ceased, and the imports from there have become very much diminished,

and, in fact, almost totally ceased. The principal articles now brought from there here are wooden ware, some hardware, machinery, ice, and what are generally termed Yankee notions. A few cargoes of lumber have arrived from Puget's sound and California.

The importation of coal oil, with lamps for its use, has commenced and promises to become a lucrative business. In April last a grant was made by the government to an American company for the exclusive privilege of introducing and selling these articles in Peru for the term of ten years. It caused much excitement among the people, both native and foreign, and has lately been cancelled by an act of congress. Whether the annulment of a contract by congress, and which was made by the constituted authorities, is legal or not is not for me to determine; but I should not be surprised if it led, sooner or later, to an international controversy. Although the exportation of guano to the United States has ceased, yet American vessels, to a large extent, are employed in carrying this article to the European markets.

The amount of American capital invested here I have no means of ascertaining, but it is considerable. An American company has recently established in this place a very extensive sugar refinery, in which a large capital must have been invested.

The recent advance in the price of cotton has stimulated the producton of this valuable article, for the growth of which the soil and climate of Peru seem particularly adapted. The cotton plant is indigenous to this country, and frequently grows to the size of quite large trees, and is also a perennial. Sugar, also, is extensively cultivated here, and is exported in large quantities to California. It is said to be of a very superior quality.

The importation of laborers from China, under the name of coolies, has been carried on here for a number of years. The prohibition by a recent act of the Congress of the United States of this trade being carried on in American vessels shows in what estimation this trade is held by our government. A short time since a cargo of human flesh, of all ages and both sexes, arrived here from one of the islands in the Polynesian group. They are brought here under the name of colonists, by permission of this government, and sold for a term of years. Those already here have sold for from one to three hundred dollars each. Several other vessels are fitting out for this trade, and the appearances are that it will be quite extensively carried on. This may differ from the African slave trade, but it has very much that appearance, only the subjects of this trade are of considerably lighter complexion than the negro. As the American people have contributed liberally for the purpose of civilizing and christianizing the inhabitants of the Pacific islands, I thought it my duty to advert to this subject in my report.

By the act of Congress of August 18, 1856, consuls are not allowed to discharge seamen in foreign ports without demanding three months' extra pay. I think that this law works an injury to seamen instead of benefiting them. In the case of sick seamen it is well enough. But in many instances the men get dissatisfied with the officers and the officers with the men, and both would be benefited by a change. But the masters are terrified at the three months' extra pay and will not discharge them, and the consequence is that the men desert, sometimes with the consent of the officers, frequently leaving a large amount of wages due them; and there is always a shoal of landsharks ready to seize upon them and devour what money they have, and the advance received when they ship again. If they could be discharged by mutual consent, I think it would remedy the evil to some extent. But there arise many abuses connected with shipping men in foreign ports, or, at least, in this port, and for the prevention of which the consul is powerless, and that is absolutely necessary for Congress to apply the proper remedy. I would suggest the following method:

1. The repeal of all laws granting advance payments to seamen when shipping in the merchant service.

2. The enactment of a law allowing consuls to discharge seamen in a foreign port, by mutual consent, without requiring extra pay.

3. That a man-of-war be stationed in this port, with authority to send a file of marines on board of every American merchant ship arriving here, for the purpose of standing guard while the ship remains in port, in order to prevent the men from deserting, and also to prevent the sailor runners from visiting the ship.

I would also recommend that a man-of-war be stationed at the Chincha islands for the protection of our ships, a large number of which are constantly there. The central position of this port on this coast, and the large amount of shipping here engaged in the guano and coasting trade, makes this place a very convenient as well as important rendezvous for seamen. As a natural consequence, there is a large number of sick and destitute seamen who apply to government for relief. Not only those who are discharged from ships here, but many who leave their ships at other ports finally reach here, seeking employment or relief. The natural result is, that the account against the government for relief of sick and destitute seamen is very large. I would recommend that a government marine hospital, with a burying ground attached, should be established here, where all sick and destitute American seamen could be sent, and that a physi-. cian be appointed by the government with a fixed salary. This would, without doubt, cause a large outlay in the beginning, but I think in the end the government would be largely the gainer. The shipmasters sending men to it might be required, as at present, to pay three months' extra wages, or what, I think, would be preferable, require each ship arriving to pay a fixed sum, according to its tonnage. The fact that there are no ships going from here to the United States renders it absolutely necessary to keep sick men here longer than would otherwise be required. I would suggest that measures be taken for having sick persons sent to the United States by the Isthmus of Panama until the commerce is restored between here and there.


Treaty between the United States and the republic of Bolivia.


Whereas a treaty of peace, friendship, commerce, and navigation between the United States and the republic of Bolivia was concluded and signed by their respective plenipotentiaries, at La Paz, on the thirteenth day of May, one thousand eight hundred and fifty-eight, which treaty, after having been amended and ratified by the contracting parties, is, word for word, as follows:

Treaty of peace, friendship, commerce, and navigation between the United States of America and the republic of Bolivia.

The United States of America and the republic of Bolivia, desiring to make lasting and firm the friendship and good understanding which happily prevail between both nations, have resolved to fix in a manner clear, distinct, and positive, the rules which shall in future be religiously observed between the one and the other, by reasons of a treaty of frendship, commerce, and navigation. For this most desirable object, the President of the United States of America has conferred full powers on John W. Dana, a citizen of the said States, and their minister resident to the said republic; and the President of the republic of Bo

livia on the citizen Lucas Mendosa de la Tapia, secretary of state in the department of exterior relations and public instruction, who, after having exchanged their said full powers in due and proper form, have agreed to the following articles:

ARTICLE 1. There shall be a perfect, firm, and inviolable peace and sincere friendship between the United States of America and the republic of Bolivia in all the extent of their possessions and territories, and between their people and citizens respectively, without distinction of persons or places.

ART. 2. If either party shall hereafter grant to any other nation, its citizens or subjects, any particular favor in navigation or commerce, it shall immediately become common to the other party, freely when freely granted to such other nation, or on yielding the same compensation when the grant is conditional.

Explanation. As in said article it is stipulated that any special favor in navigation and trade granted by one of the contracting parties to any other nation extends and is common to the other party forthwith, it is declared that, in what pertains to the navigation of rivers, this treaty shall only apply to concessions which the government may authorize for navigating fluvial streams which do not present obstructions; that is to say, those whose navigation may be naturally plain and current without there having been need to obtain it by the employment of labor and capital; that by consequence there remains reserved the right of the Bolivian government to grant privileges to any association or company, as well foreign as national, which should undertake the navigation of those rivers from which, in order to succeed, there are difficulties to overcome, such as the clearing out of rapids, &c., &c.

ART. 3. The United States of America and the republic of Bolivia mutually agree that there shall be reciprocal liberty of commerce and navigation between their respective territories and citizens. The citizens of either republic may frequent with their vessels all the coasts, ports, and places of the others, where foreign commerce is permitted, and reside in all parts of the territory of either, and occupy dwellings and warehouses; and everything belonging thereto shall be respected, and shall not be subjected to any arbitrary visits or search. The said citizens shall have full liberty to trade in all parts of the territory of either, according to the rules established by the respective regulations of commerce, in all kinds of goods, merchandise, manufactures, and produce not prohibited to all, and to open retail stores and shops, under the same municipal and police regulations as native citizens; and they shall not in this respect be liable to any other or higher taxes or imposts than those which are or may be paid by native citizens. No examination or inspection of their books, papers, or accounts shall be made without the legal order of a competent tribunal or judge.

The provisions of this treaty are not to be understood as applying to the navigation and coasting trade between one port and another, situated in the territory of either of the contracting parties-the regulation of such navigation and trade being reserved, respectively, by the parties according to their own separate laws. Vessels of either country shall, however, be permitted to discharge part of their cargoes at one port open to foreign commerce in the territories of either of the high contracting parties, paying only the custom-house duties upon that portion of the cargo which may be discharged, and to proceed with the remainder of their cargo to any other port or ports of the same territory open to foreign commerce without paying other or higher tonnage duties or port charges in such cases than would be paid by national vessels in like circumstances; and they shall be permitted to load in like manner at different ports in the same voyage outward. The citizens of either country shall also have the unrestrained right to travel in any part of the possessions of the other, and shall in all cases enjoy the same security and protection as the nations of the country in which they reside, on condition of their submitting to the laws, decrees, and ordinances there prevail

ing. They shall not be called upon for any forced loan or occasional contribu tion, nor shall they be liable to any embargo, or to be detained with their ves sels, cargoes, merchandise, goods, or effects, for any military expedition, or for any public purpose whatsoever, without being allowed therefor a full and sufficient indemnification, which shall in all cases be agreed upon and paid in ad


ART. 4. All kinds of produce, manufactures, or merchandise, of any foreign country which can, from time to time, be lawfully imported into the United States in their own vessels, may be also imported in vessels of the republic of Bolivia; and no higher or other duties upon the tonnage of the vessel and her cargo shall be levied and collected, whether the importation be made in the vessels of the one country or of the other; and in like manner all kinds of produce, manufactures, and merchandise of any foreign country that can be, from time to time, lawfully imported into the republic of Bolivia in its own vessels, whether in her ports upon the Pacific or her ports upon the tributaries of the Amazon or La Plata, may be also imported in vessels of the United States; and no higher or other duties upon the tonnage of the vessel and her cargo shall be levied or collected, whether the importation be made in vessels of the one country or of the other. And they agree that what may be lawfully exported or re-exported from the one country in its own vessels to any foreign country, may, in like manner, be exported or re-exported in the vessels of the other country; and the same bounties, duties, and drawbacks shall be allowed and collected, whether such exportation or re-exportation be made in vessels of the United States or of the republic of Bolivia. In all these respects the vessels and their cargoes of the one country, in the ports of the other, shall also be on an equal footing with those of the most favored nation. It being further understood that these principles shall apply whether the vessels shall have cleared directly from the ports of the nation to which they appertain, or from the ports of any other nation.

ART. 5. For the better understanding of the preceding article, and taking into consideration the actual state of the commercial marine of the republic of Bolivia, it is stipulated and agreed that all vessels belonging exclusively to a citizen or citizens of said republic, and whose captain is also a citizen of the same, though the construction or the crew are or may be foreign, shall be considered, for all the objects of this treaty as a Bolivian vessel.

ART. 6. No higher or other duties shall be imposed on the importation of the United States of any articles the produce or manufacture of the republic of Bolivia, and no higher or other duties shall be imposed on the importation into the republic of Bolivia of any articles the produce or manufacture of the United States, than are or shall be payable on the like articles being the produce or manufacture of any other country; nor shall any higher or other duties or charges be imposed, in either of the two countries, on the exportation of any articles to the United States or to the republic of Bolivia, respectively, than such as are payable on the exportation of the like articles to any other foreign country; nor shall any prohibitions be imposed on the exportation or importation of any articles the produce or manufacture of the United States, or of the republic of Bolivia, to or from the territories of the United States, or to or from the territories of the republic of Bolivia, which shall not equally extend to all other nations.

ART. 7. It is likewise agreed that it shall be wholly free for all merchants, commanders of ships, and other citizens of either country, to manage themselves their own business in all the ports and places subject to the jurisdiction of the other, as well with respect to the consignment and sale of their goods and merchandise, by wholesale or retail,,as with respect to the loading, unloading, and sending off their ships; they being in all these cases to be treated as citizens of the country in which they reside, or at least to be placed on a footing with the citizens or subjects of the most favored nation.

ART. 8. The republic of Bolivia, desiring to increase the intercourse between

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