which the imports in 1905 were $273,629,853, an increase of $40,418,455 over the figures of the immediately preceding year. The chief articles in this class are sugar, coffee, tea, cacao, fruits, and nuts, and therefore chiefly of classes not produced in the United States, at least in sufficient quantities to meet domestic requirements. Even these large figures of tropical foodstuffs imported do not include those brought from Porto Rico and the Hawaiian Islands, which aggregated $48,250,396, bringing the total of articles of food brought into the country during the year above 320 million dollars.

Of the $285,562,942 of manufactured articles brought into the country during the year, manufactures of cotton, fibers, silk, iron and steel, jewelry, and wool formed the most important items. Manufactures of cotton imported amounted to $48,919,936; manufactures of fibers, $40,125,406; manufactures of silk, $32,614,540; manufactures of iron and steel, $23,510,164; jewelry and precious stones, cut, $23,947,883; and manufactures of wool, $17,893,663.

GROWING DEMAND FOR TROPICAL PRODUCTS.

Tropical and subtropical products form a constantly increasing proportion of our growing imports. Of the manufacturers' materials imported, india rubber, fibers, raw silk, Egyptian cotton, and other articles are of tropical and subtropical production, as is also true of the sugar, coffee, tea, cacao, and fruits included under the grouping of foodstuffs, and the materials from which were produced the silks, cotton goods, and manufactures of fibers under the classification of manufactures. The total value of tropical and subtropical products brought into the country during the year 1905 exceeded 500 million dollars, against 140 millions in 1870, and of this grand total of 500 millions in 1905, about 12 per cent was supplied from the islands recently added to our producing area, as against less than 5 per cent in 1895.

EXPORT RECORD OF THE YEAR.

The exports of the year supplied evidence of the activity of our manufacturers quite as striking as that indicated by the imports already discussed. While exports of agricultural products and products of the forests and fisheries showed a slight decline as compared with 1904, the increase in exports of manufactures was sufficient to more than offset these losses and to bring the total exports to a point higher than ever before reached, being $1,518,561,666, against $807,538,165 in 1895, $742,189,755 in 1885, and $513,442,711 in 1875. The decrease in exports of agricultural products was due to a remarkable decline in the exportation of wheat and wheat flour, the result in part of reduced production in 1904, of large crops and low prices abroad, and of a large demand from the home market.

The result of these unusual conditions was that the exports of flour fell from $73,756,404 in 1903 and $68,894,836 in 1904 to $40.176,136 in 1905; and those of wheat, from $87,795,104 in 1903 and $35,850,318 in 1904 to $3,905,579 in 1905. In quantity the exports of wheat and flour (in terms of wheat) amounted to but 44,112,910 bushels in 1905, as against 120,727,613 bushels in 1904 and 202,905,598 bushels in 1903. This great reduction in exports of wheat and wheat flour from $161,551,508 in 1903 and $104,745,154 in 1904 to $44,081,715 in 1905 was partially offset by an increase in cotton exports, of which the total value in 1905 amounted to $381,398,939, against $372,049,264 in 1904 and $291,598,356 in 1902. Cotton exports in 1905 were the largest in the history of our export trade, while those of wheat and wheat flour were less than in any year since 1872.

As a consequence of this large reduction in exports of wheat and wheat flour the total of agricultural exports for the year 1905 amounted to but $820,863,405, against $853,643,073 in 1904 and $943,811,020 in 1901, the high-record year of agricultural exports. This loss in agricultural exports was more than compensated by the increase in exports of manufactures, of which the total in 1905 was $543,607,975, as compared with $452,415,921 in the preceding year, $183,595,743 in 1895, $147,187,527 in 1885, and $92,678,814 in 1875. Manufactures formed in 1905, 36.44 per cent of the total domestic exports; in 1895, 23.14 per cent; in 1885, 20.25 per cent, and in 1875, 16.57 per cent.

This increase of 91 million dollars in exports of manufactures is greater than that of any preceding year except 1900, when the increase was 94 millions. The increase occurs chiefly in manufactures of iron and steel, copper, cotton cloths, and manufactures of leather, though a large proportion of the other articles and classes of articles exported show moderate gains over the preceding year. In iron and steel the increase is 23 million dollars; in copper, 29 millions; in cotton cloths, 27 millions, and in leather, 4 millions. Of the 29 million dollars increase in copper, about one-third occurred in exports to China and the remainder chiefly to Europe. Of the 27 millions increase in cotton cloths, 24 millions occurred in exports to China, and of the 4 millions increase in leather, 33 millions was in exports to Japan.

TRADE WITH GRAND DIVISIONS OF THE WORLD.

The increase in imports was distributed among all of the grand divisions and most of the principal countries, while the increase in exports was chiefly to China, Japan, Canada, Argentina, Cuba, and the new Republic of Panama. The increase in imports was, from Europe 41 million dollars; from North America, 28 millions; from South America, 30 millions; from Asia and Oceania, 24 millions, and from Africa, 2 millions. The increase from Europe was distributed among the principal countries, and was chiefly composed of manufactured

articles and raw wool, raw silk, hides and skins, and diamonds. In exports a reduction of 37 million dollars occurred in the trade with Europe, due to the falling off in exports of wheat and flour, and a reduction of over 5 millions in the trade with Africa, where a general reduction of imports has characterized the past two years.

To North America the exports increased 26 millions, of which 11 millions was to Cuba, 9 millions to Canada, and nearly 4 millions to Panama. To South America the exports increased 6 millions, of which practically all was to Argentina. To Asia the increase in exports amounted to 68 millions, of which 41 millions was to China. and 27 millions to Japan. Of the 41 million dollars increase to China, 23 millions was in cotton cloths, 10 millions in copper, and 34 millions in mineral oil. Of the 27 millions increase to Japan, 14 millions was in raw cotton, 34 millions in sole leather, 1 million in cotton cloths, and 1 million in canned beef.

COMMERCE WITH CUBA UNDER RECIPROCITY.

The commerce with Cuba in 1905, the first full fiscal year under the reciprocity treaty, shows a considerable increase over 1904, of which one-half was under the reciprocity treaty, and a marked increase over 1903, the last full year prior to that treaty, which went into effect December 27, 1903. The total exports to Cuba from the United States in 1905 were $38,380,601, against $27,377,465 in 1904 and $21,761,638 in 1903, an increase of 76.3 per cent over 1903, the last full year prior to the operations of the reciprocity treaty. The import values are greater than those of 1904 or 1903, being $86,304,259 in 1905, $76,983,418 in 1904, and $62,942,790 in 1903. This increase in value, however, in 1905 is apparently largely due to increased prices of sugar, the chief article imported from Cuba, rather than to increased quantity. The total value of sugar imported from that island in 1905 was $64,366,104, exceeding by nearly 8 million dollars that of 1904 and by nearly 22 millions that of 1903; while the quantity of sugar imported into the United States from Cuba in 1905 was 2,057,684,169 pounds, or 762 million pounds below that of 1904 and 338 million pounds below that of 1903. The other articles which show an increase in 1905 as compared with immediately preceding years are leaf tobacco, with an increase of about 1 million dollars over 1904 and 1903, respectively, and cigars, also an increase of about 1 million dollars over 1904 and 1903, respectively. In exports to Cuba from the United States the increase occurs in nearly all of the principal articles, but is especially marked in manufactures of iron and steel, flour, provisions, lumber, and rice.

A marked change has recently occurred in the trade of the United States in rice following the development of rice production in the

United States, which occurred simultaneously with our closer relations with the rice-consuming communities of Porto Rico, Cuba, and the Hawaiian Islands. The value of rice of domestic production sent out of the United States in 1905 aggregated $5,361,641, against $667,387 in 1900 and but $16,454 in 1895, while the imports of rice in 1905 amounted to but $2,096,190, against $3,445,512 in 1895. The value of rice brought into the United States always exceeded that of rice sent out of this country prior to 1905, but in that year the value of rice sent out of the country to its noncontiguous territories, to Cuba under the reciprocity treaty, and to other foreign countries was more than 23 times in value that imported.

TRADE WITH THE NONCONTIGUOUS TERRITORIES OF THE UNITED STATES.

Trade with the noncontiguous territories of the United States-under which term are included Porto Rico, the Hawaiian Islands, and the Philippine Islands, the Midway Islands, Guam, Tutuila, and Alaska-shows a marked increase in 1905 over any preceding year. The total value of merchandise shipped from the United States to these various noncontiguous territories was $43,519,226, against $38,096,528 in 1904; while the value of merchandise shipped from these territories to the United States in 1905 aggregated $75,244,665, against $59,138,045 in 1904. In addition to this there were shipped to the United States $9,059,023 of gold produced in Alaska and $10,733,835 of gold produced in adjacent territory but sent into Alaska for shipment to the United States.

The quantity of gold of domestic production received in the United States from Alaska in 1905 exceeded that of 1904 by nearly 43 per cent, the total for 1905 being $9,059,023 and for 1904 $6,347,742. The value of merchandise shipped from the respective noncontiguous territories to the United States was: From Hawaii, $36,112,055, of which $35,112,127 was sugar; from Porto Rico, $15,633,145, of which $11,925,575 was sugar and $2,146,846 was cigars; from the Philippine Islands, $12,657,904, of which $11,076,286 was manila hemp and $1,498,399 sugar; and from Alaska, $10,801,446, of which $8,381,466 was canned salmon, $494,764 furs and fur skins, and $440,488 copper ore. The $43,519,226 worth of merchandise shipped from the United States to its noncontiguous territories was composed of nearly all classes of foodstuffs and manufactures, especially cotton goods and manufactures of iron and steel.

GOLD AND SILVER MOVEMENT.

The movement of gold and silver in the foreign trade of the United States during the fiscal years 1905 and 1904 was as follows: In 1905 imports of gold, $53,648,961; imports of silver, $27,484,865; total

imports of gold and silver, $81,133,826. Exports of gold, $92,594,024; exports of silver, $48,848,812; total exports of gold and silver, $141,442.836. In 1904 imports of gold, $99,055,368; imports of silver, $27,768,814; total imports of gold and silver, $126,824,182. Exports of gold, $81,459,986; exports of silver, $49,472,702; total exports of gold and silver, $130,932,688.

STEAMBOAT-INSPECTION SERVICE.

It is the duty of the Steamboat-Inspection Service to inspect the hulls, boilers, machinery, equipment, and appliances, and to examine the qualifications of officers, engineers, and pilots of certain classes of vessels for the general purpose of promoting the safety of life in connection with traffic upon the public waters of the United States. The details of the work of the Service for the fiscal year ended June 30, 1905, are as follows:

EXPENSES.

The personnel of this Service at the close of the year consisted of 213 officers and clerks and 1 messenger.

The expenses of the Service were: For salaries, $325,190.16, an increase over the previous fiscal year of $8.811; for contingent expenses, $80,569.69, an increase over the previous year of $11,922.04. The increase of expenditures under the item of salaries is due to the appointment of additional assistant inspectors and slight advances in the salaries of a few assistant inspectors who have been long in the Service and in the salaries of clerks who have merited the increase by intelligent and faithful service. The increase in the contingent expenses is due, in a great measure, to the travel of the inspectors engaged in the reinspection and examination of steamers ordered by the Department. Old and worn-out instruments have been repaired, when possible, and replaced by new when necessary. This also has contributed slightly to the increase in contingent expenses.

INSPECTION OF VESSELS.

The number of vessels inspected and certificated was 8,705, with a total tonnage of 5,910,824, a decrease from the previous year of 596 in the number of vessels and of 73.899 in tonnage. Of this total number and tonnage of vessels inspected and certificated, there were 328 foreign passenger steamers, with a total of 1,680,376 gross tons, a decrease from the previous year of 27 in number and a decrease in tonnage of 241,504. There were inspected and certificated 7,621 domestic steamers, with a total of 3,608,701 gross tons, a decrease from 1904 of 575 in number and an increase of 63,175 gross tons; 249 motor vessels, with a total of 10,874 gross tons, an increase of 43 in number and of 1,483