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namely, in the importation of soap, is not a matter for congratulation, as, coupled with the diminished importation of soap stocks, it indicates a decrease in the local manufacture of that article. It is probable that a considerable portion of the normal importations were not received during 1914 owing to the dislocation of foreign trade and the delay in finding new markets, and that these importations will be included in those for 1915. It must, however, be obvious that the decrease in importations, especially of food-stuffs, is evidence of greatly diminished purchasing power, and clearly reflects the unsatisfactory conditions prevailing in the island during the year.

Exports. In spite of the revolution and the disorganisation of commerce consequent on the European war, the value of the exports for 1914 was slightly greater than in the preceding year, and would have equalled the value exported in any former year but for the abnormally low prices of sugar, cacao and coffee, the main articles of export. Owing to the closing of the German market the greater part of the tobacco crop remained unexported. The figures, especially for the sugar and cacao crops, seem to show that the productiveness of the country has not suffered materially from the political disturbances of the last three years, and that, given peaceable conditions and normal prices, the exports for 1915 should show a considerable increase over those for any previous year.

It will be seen that 80 per cent. of the exports are credited in the statistics to the United States. This is somewhat misleading, the fact being that the greater part of the sugar and cacao, which together form about 83 per cent. of the total exports, are shipped to New York to order. Very little of the sugar remains in the United States, the greater part going to the United Kingdom and Canada. The ultimate destination of the cacao is not definitely known, but a large proportion is undoubtedly re-exported to Europe. The disorganisation of the trade routes owing to the war also led to products being exported in greater quantities to the United States.

Revenue and public debt.-A great decrease in the customs receipts, the main source of revenue, was one of the consequences of the revolution. The collections for the year amounted to 3,015,332 dol. (620,4397.), the smallest sum for several years, and 1,150,484 dol. (236,7251.) or over 27 per cent. less than in 1913. The payments into the sinking fund during the year amounted to 207,666 dol. (42,7131.) as compared with 782,908 dol. (161,0927.) in 1913, a reduction of over 73 per cent.

The funded debt of the Republic consists of the 1907 loan of 20,000,000 dol. (4,115,2267.), of which about 3,000,000 dol. (617,2841.) is still held in trust for public works, and the 1913 loan of 1,500,000 dol. (308,6421.). For the amortisation of the former about 2,250,000 dol. (462,9627.) and of the latter over 500,000 dol. (102,8801.) had been paid by the end of the year. The total funded debt is consequently about 3,850,000l. In addition, however, there is a large floating debt which is estimated at over 7,000,000 dol. (1,440,1237.). As the national expenditure is still considerably in excess of the revenue the financial state of the country is far from satisfactory. The recent appointment of an American financial adviser with a certain.

control over expenditure is expected to have a beneficial effect, as strict economy is urgently required.

Owing to the chaotic conditions prevailing during the year no figures regarding revenue or expenditure for the financial year are available, and no budget has as yet been passed by the Congress.

British trade. Although British importations were considerably less than in the previous year, the relative share of the United Kingdom in the importations from abroad was slightly greater. The decrease in importations from the United Kingdom was almost entirely due to the diminished demand for cotton goods. In one or two cases the importations showed slight increases, as in woollen goods, while in agricultural implements there was a large proportionate increase from 4,792 dol. (9867.) and 3,780 dol. (7777.) in 1912 and 1913 to over 33,000 dòl. (6,790l.) in 1914. Unfortunately the customs statistics afford no clue as to what exactly is comprised under this head. The implements generally in use are for the most part of a primitive nature, e.g., hoes, machetes, &c. The machete is as a rule the universal tool and is used for every conceivable purpose. Ploughs are now being used to a small extent.

The European war, by causing an almost complete stoppage of trade with Germany, should afford an excellent opportunity for increasing the United Kingdom's share in the import trade. Almost all the articles previously imported by Germany could be equally well furnished by the United Kingdom. The principal German importation was rice, and British exporters should find little difficulty in securing the whole of this trade. Further, Germany's share of the trade in cotton and woollen goods was won in competition with the United Kingdom and the United States and should now be enjoyed by those countries. Other German importations were leather goods, earthenware and china, glassware, enamelware and hardware, paper, &c.

Importers should bear in mind that this trade was gained in the first place by the cheapness and suitability of the goods and by a system of long credits. Little business can be done on a cash basis.

It must be remembered, also, that exporters in the United Kingdom are always at a considerable disadvantage compared with their competitors in the United States owing to the difference in freight rates.

This disadvantage is now increased owing to the stoppage of the Hamburg-American service with Europe. Freight is now shipped from the United Kingdom viâ New York, and the advantage to the American exporters is equivalent to the cost of transatlantic transportation and the considerable expense of transhipment in New York. A direct service with the United Kingdom or a service connecting Dominican ports with some British steamship line at one of the other West Indian islands would undoubtedly be of considerable assistance to British trade. Such a service should be able to secure the greater part of the trade enjoyed by the Hamburg-American Line.

There are no figures published regarding trade with Canada. That country is known, however, to take about 25 per cent. of the exports of sugar, but its imports at present appear to be small. Probably

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it only needs better communication in order to obtain a considerable share in the trade. Good business might be done in such lines as salt fish and flour, while butter, cheese, lard, lumber, &c., might also be sold. I understand that a large part of the salt fish now sold here comes from Canada by way of New York.

Principal products.-The most noteworthy feature under this head is the great increase in the production of raw sugar, the export of which, in spite of bad weather and revolutionary troubles, amounted to about 100,000 tons, or 13 per cent. greater than the previous record. A considerably increased production is hoped for in 1915 and far better prices are expected. The first shipment of cane to Puerto Rico from the new estate at La Romana is worthy of note, the amount shipped being practically the equivalent of 3,000 tons of raw sugar. The estate expects to ship double the quantity this year, but it will probably find it more profitable to erect a mill as the area available for cultivation is very large.

The cacao crop was very satisfactory considering the disturbances in the district, and the production of coffee improved a little.

The tobacco exports suffered from the closing of their only market owing to the war and from the deplorable state of the Central Railway. I understand that practically none of the 1914 crop has yet been exported. Though this will undoubtedly entail a heavy loss for the planters, it may eventually prove beneficial by widening the market. The industry has for some years been in a very unsatisfactory condition.

Of the other products cotton suffered considerably from the war and also probably from internal conditions. A storm destroyed a large part of the banana crop and the export of timber was greatly hindered by the revolution.

Mining. No mining is now carried on in the Republic with the exception of the opening of a copper mine, about 30 miles from the capital. Although no systematic geological survey of the country has ever been made, I understand that experience has shown the reports of its vast mineral wealth to be quite unfounded. The precious metals are said to exist in small quantities. Deposits of iron and salt and possibly coal are believed to exist but there is no method of transportation and the value of the deposits has never been definitely ascertained.

Communications.-Though little progress could be made in this respect during last year, arrangements were made to enable important work to be taken in hand at the beginning of 1915. During December contracts were let for the building of a bridge over the Ozama at Santo Domingo and for the first section of the road from the capital to La Vega. The bridge should be finished in October, and of the, road, which is urgently required, about 30 miles should be completed or nearly completed by the end of the year. It is expected that the roads from La Vega to Moca and from Santiago to Navarrete will be completed this year, and it is hoped that good progress will be made with the roads from Monte Christy to Navarrete and from Azua to San Juan. All work of this description is to be let to contract, and it is generally believed that this course will result in greater economy and speed of construction.

The revolution interfered greatly with the work on the extension of the Scotch railway from Salcedo to Moca. It will, however, probably be completed before the end of 1915. The Government railway from Moca to Puerto Plata is in a terrible condition and is hardly fit for traffic. Unless some measures are soon taken, the trade of Santiago and Moca will be diverted to Sanchez over the new railway extension already referred to.

No decision has yet been arrived at with regard to the construction of a railway from Santo Domingo to La Vega. It is hoped that some steps will now be taken to provide one as it will be of great importance both commercially and politically.

Harbour works. As the result of dredging during the year vessels drawing 16 to 17 feet of water can now enter the port of Santo Domingo, and the same depth is maintained at San Pedro de Macoris. With a little dredging and blasting it is expected to make a good harbour at Barahona with a depth of 22 feet. A new concrete wharf is to be built at Azua, and the wharves at Barahona and San Pedro de Macoris will be put in a state of repair during the year.

Telegraphs.-A small wireless station has been established at San Pedro de Macoris and the erection of others is projected. I understand that a submarine cable from Santo Domingo to Mayaguez, Puerto Rico, is contemplated by the Compagnie Française des Cables Telegraphiques. The national telegraph system is in a very bad condition and can only be made serviceable at a considerable outlay.

Lighthouses.-The absence of lights has always made the navigation of Dominican waters very dangerous. The necessity of remedying this state of affairs has at last been realised and 10 lighthouses are to be erected during 1915. Some of these lights will serve only to show the position of ports, but others will mark prominent and dangerous points such as Cape Samaná, Cape Engaño, Saona Island, Punta Salinas and Cape Alta Vela. The lights are to be placed on towers of open steel framework of varying heights, and are to be illuminated by the Blau Gas system which works automatically and needs no attention during long periods. The Government have already purchased the necessary materials and expect to let the contracts for the erection of the towers during the year. The lights should be all in working order before the end of the year.

Public health. The natural healthiness of the city was clearly demonstrated by the fact that in spite of the overcrowding consequent on the siege during an unusually hot summer no epidemic of any kind resulted. This was the more remarkable owing to the total disregard for sanitation shown in the housing of the refugees and to the shortage of fresh provisions.

Customs statistics.-Appended are tables showing the foreign trade of the Republic for the year 1914 compared with the trade for the two previous years. Where values have been converted into sterling in these tables or in the body of the report the rate adopted has been that of 4 dol. 86 c. to the 11.

The table of shipping of all nationalities is derived from the customhouse records, and is somewhat misleading for purposes of comparison as all vessels entering from or clearing for a foreign country viâ a

Dominican port are regarded as coastwise, with the result that the vessels, mainly American and Norwegian, which have the principal share of the foreign trade, are excluded from this return.

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