that I supposed it was the intention of the framers of the law to leave no room for fraudulent practices. From my knowledge of the trade here, its exigencies and straits, it is well that so much forethought was displayed. Indeed the gratitude of every laborer, artisan, and capitalist connected in any manner with the woolen industry of the United States, as also of the nation at large, on account of the protection to revenue, is due to those who had the wisdom to frame the tariff on woolens. Thus far there is a considerable falling off in the export of woolens from this consular district to the United States; and as this has not been caused by the tariff change which only comes into effect on the 1st of next month, there is every reason to believe that the shipments will continue to decrease, and that by the end of the current year I shall be able to show a very serious falling off in the total amount of exports to the United States.

The woolen trade of the district is in a very depressed condition. It has been so for a long while. There is no money to be made in it now, nor has any been made for the past ten years. If one asks how is it they have gone on so long, and are still standing up against adversity, I have only to answer that it is, when once fairly started here, just about as easy to run an insolvent business and live ostentatiously (a requisite) out of it for many years as it is to carry on a perfectly sound business. Of course, if the happy, lucky moment of prosperity does not come, eventually the crisis does, and down goes business with heavy liabili ties, and only assets enough left to pay for a few letters written by solicitors and the other expenses of the accountant or solicitor who undertakes to bury the affair out of reach of the creditors. I am told nearly every day by respectable men as to the condition of the woolen trade. I was told this day as to the serious state of affairs at Dewsbury, where the mills used to run half their time to supply the American demand alone, subsequently for the continental trade, but are now reduced to unprofitable competition with others in the home trade, with the lowest scale of living wages, and consequently work people leaving in large numbers for America and Canada, loss of money to owners, warehouses unlet, and property decreasing in value at an alarming rate. Some capitalists have also recently gone from there to the United States to start in the manufacture of woolen goods The tariff of first one country and then another having been raised has produced this unwholesome effect upon the woolen trade which formerly had a hold in Germany, Austria, Spain, France, and Italy, whereas now there is a very poor trade with those countries. Still the shippers manage to keep going on, losing money for a long while, and of course much of the money lost is not their own. Only a few days ago a cloth firm in Leeds suspended, and I have now heard that they attribute their suspension to the change in the Italian tariff, which occurred about eight years ago. In fact 25 cents in the dollar is reckoned a pretty fair dividend now to creditors, unless they should be able to wind up the estate without the aid of a solicitor. But it is not only in the cloth trade that failures take place where the parties have been bankrupt for years. A little while ago a large oil merchant in Yorkshire failed, who had been bankrupt for several years, but still kept going on and living at the rate of thousands a year, expecting the millennium of particular if not universal prosperity.

Under this awful stagnancy there exists a tendency to become belligerent, for, with all the social and other attractions, the one great ideal of every Englishman is trade. If he can not trade he will not be happy. I do not speak of trade in a narrow sense, for no one looks with so much scorn upon people engaged in trade as those Englishmen do whose

fathers made their fortunes in it, or even those who themselves have done so and quitted it; but I refer to trade in its wider sense, that of coaxing big nations into free-trade ideas, conquering insignificant tribes, annexing cannibal islands and parts of uncivilized continents, and furnishing all with a governor and body guard and a few dozen Manchester merchants; the latter, of course, clothe the savages with a string of beads and an iron ankle-band, and perhaps a strip of cotton cloth, but when they have realized their thousand per cent. several times they come back to England to spend their wealth.

This belligerent interest is marshaled by those otherwise not very puissant bodies, the Chambers of Commerce, whose not famous achievements so much as their extravagant conceits are enough to alarm all the clannish trades from engineer to tanner, thereby causing such action as to disturb distant nations. Egypt has been subjected, after a most fearful though painless struggle, beginning with a second Trafalgar and ending with another Waterloo, to the dominion of Manchester.

Now, apparently, New Guinea, in order, of course, that grievances should be redressed, injuries removed, abuses corrected, and free trade established, is to be annexed to England, and Manchester is to have the first turn at supplying the aborigines of that big country with girdle cloths. The commercial progress of the United States in Mexico, as well as the French expedition to Tonquin and the bombardment of a mud fort in Madagascar, is at the same time viewed with great concern by the commercial chambers in England.

THE FLAX AND LINEN TRADE.

The flax trade of this district will also be adversely affected by the new tariff. A large Leeds manufacturer of linen yarns told me a few days ago that he had made his last shipment to the United States, because the framers of the new tariff, in affecting to lower the duty, had really increased it, at least so far as his wares were concerned, to such an extent as to stop further shipments. The usual price of the yarns shipped by said firm is sixpence per pound, and the duty in the old tariff was 33 per cent., whereas in the new tariff it is 40 per cent. ad valorem. Therefore the increase in the duty amounts at the foregoing valuation to 1 cent per pound, and when it is known that this additional cent stops exportation, it will be seen what a small margin has hitherto been available for profit in this trade. I am told that should makers be enabled through any cause to turn out linen yarns at, say, 5d. per pound, they would then again ship their goods to the United States. This seems to me to have some bearing upon free trade, which was a debatable subject nearly forty years ago, but it is needless to pursue it now further than to remark that the only apparent way in which the manufacturer is to again combat the American tariff is to reduce the price of his ware. Of course such reduction means less wages, working on small and therefore dangerous margins, and with cheap money. It is obvious the scale of wages cannot be reduced; the raw material is already very cheap; all waste is put to the very best use, and the very fact of working on small margins would cause money to become dear for the purpose of such industries. Therefore, I do not expect to see a revival in the exportation of linen. I am given to understand that the flax and linen trade generally has been in a very unsatisfactory condi tion for several years, and that parties so engaged would gladly get out if it were possible to do so without incurring very serious losses in realizing upon plant, &c. As an illustration of this, I may say that the machinery of a large Leeds flax spinning concern was sold by auction

for only £7,000, while it was valued in the company's books for insurance purposes at £50,000.

The manufacture of linen cloths is regarded as the best part of the flax industry, but even this is anything but a remunerative business at present.

Of patent linen threads, &c., I have to say that while the exportation of the same to the United States continues to be on as large a scale as formerly, the trade has undergone such a radical change since my arrival here six years ago, in the shape of increased discounts and an almost total cessation of absolute sales by the substitution of consignments, that I do not feel justified in speaking here at all of such a peculiarly conditioned trade. Regarding this change, however, I expect in the course of a few days to make a special report to the Department.

THE IRON INDUSTRY OF LEEDS.

The iron industry of Leeds will not be affected to any appreciable extent either way by the new tariff. This industry appears to be in a healthy state, and while it may not be in a particularly flourishing condition, yet it is recognized as composed of sounder elements than most other industries.

TANNERS, BREWERS, AND BUTCHERS.

I understand the tanners of this district have been doing a very bad business for a year or so; in fact, losing much of the money they so sud denly found themselves possessed of a few years ago when their trade was so good. This state of affairs regarding tanners somewhat surprises me, because of their close affinity to brewers and butchers, who I am sure are still doing a thriving business. The former class are, what with brewing beer, owning or otherwise controlling many public dramshops, peddling tobacco, cigars, snuff, &c., fast becoming an influential quantity politically in England, besides amassing for themselves extensive fortunes and an illimitable audacity, while the latter possess full as much egotism, somewhat less education, but thorough honesty, except regarding American beef, which they will not sell at all as such.

THE LIMITED-LIABILITY ACT.

The limited-liability act has militated against honest trade in England and done very serious injury thereto by placing in the hands of a few men, known as directors, who are chiefly concerned in drawing their salaries, the power to wreck by hazardous enterprise businesses hitherto perfectly sound. The directors, in the keen competition which exists in all branches of commerce, not only frequently bring their own companies to grief, but, unfortunately, other more houest traders whose liabilities are not limited to the capital employed. Directors have a comparatively easy task to perform, that of drawing their salaries and paying dividends, which latter operation may be done for some years out of capital without arousing from their sluggish sleep credulous shareholders; but, alas, the dismal day of reckoning does eventually arrive, and although the directors ascribe the calamity to bad trade, &c., and they escape scot-free, their position is envied by no honest person. A. V. DOCKERY,

UNITED STATES CONSULATE,

Consul.

Leeds, June 19, 1883.

TARIFF REVISION.

EXTRACT FROM THE ANNUAL REPORT OF CONSUL-GENERAL MERRITT, OF LONDON.

The discussion in Congress, pending the passage of the bill authoriz. ing the appointment of a commission for the revision of the tariff, excited a good deal of interest in Great Britain and in other countries having commercial relations with the United States. This was clearly shown by means of a general discussion of the matter, at the time, in the newspaper press of these countries. The prevailing opinion in Great Britain, and that, too, supported by the present cabinet, is strongly in favor of free trade. There are, however, a considerable number of influential manufacturers who claim to be protectionists, and favor what they call "fair trade." Nevertheless, all parties appear to be in perfect accord as regards one thing, to wit, opposition to a protective tariff in the United States.

In the matter of the proposed revision of the tariff laws, it will not, perhaps, be out of place for me to make the following suggestions:

1. Whenever practicable, duties should be made simple and specific, and adjusted so as to discriminate in favor of American labor.

2. All articles, the duties upon which are comparatively small, should be put upon the free list.

3. Original works of art, antiques, curiosities, and, generally speaking, all collections illustrating the natural sciences should be admitted free of duty.

4. Still further, in the interests of a general educational development, whether in the matter of schools, colleges, or private individuals, I recommend that, for their own use, all text books and maps, charts, models, &c., for scientific and professional needs, as also all scientific and professional apparatus and instruments, be placed upon the free list.

5. In so far as it is practicable, in the revision of the tariff laws, an especial end in view should be the protection of new, important, and yet struggling industries-industries which, once thoroughly rooted, would be able in a few years, unprotected, to hold their own against the world. To this end, all raw material entering into such struggling manufacturing industries should be admitted free, or at least at a very low rate of duty. Specific provision should be made determining in what condition the material or merchandise shall be in order to be classified as "raw material."

6. A simplification of the customs laws is desirable so as to avoid, as much as possible, their misconstruction and consequent litigation, as also to relieve merchants from annoying delays in making entry of their goods. Proper invoices of merchandise on the free list, with bills of lading, when presented by the consignee, if the owner, or by any person to whom they may have been regularly transferred in the ordinary course of business, should be accepted by the customs authorities, and the delivery of the merchandise covered by such papers should be without cause of action as against the collector. Provision should be made so that, in case of the delivery of goods before their quantities or values have been ascertained and returned to the custom-house, in addition to duty, an adequate percentage upon the entered value shall be deposited until the final liquidation of the invoice.

7. The most equitable basis for fixing values upon merchandise subject to ad valorem rates of duty would be the average wholesale price,

in bond, at the principal ports of entry in the United States; such valuations, in cases of disagreement, to be determined on appeal, by a board of general appraisers, to consist of five members, three to be located on the Atlantic seaboard, one on the Pacific, and one in the interior. The adoption of home valuations would do away with the necessity for investigations as to the current market values of the merchandise in the country from whence it was imported. These market values, undergoing constant changes, are, other things equal, not the same in different countries, and, under the most favorable conditions, are difficult for consular officers, special agents of the Treasury Department, or customhouse appraisers to determine. It is, moreover, especially difficult to ascertain the commissions and other proper charges, which, under existing laws, are to be added to the market prices in order to establish dutiable values. Still further, by means of home valuation, the necessity for the production of consular authentications of invoices would be obviated.

8. Generally speaking, in the interest of the common weal, it is desirable that the tariff be so adjusted and such regulations in connection therewith be adopted as shall cause thereafter, on the part of the Government, the smallest possible amount of friction with and annoyance to the business community. The imposition of taxes upon the commercial business of the country will never be popular with those upon whom, in the first instance, the burden directly falls. It would, therefore, seem to be the part of wisdom for legislation to so simplify and adjust these taxes, and the rules and regulations enforcing their collection, as to insure the acquiesence if not the approval of the great mass of the people.

Every Government, administered so as to conserve the real well-being and permauent prosperity of its people as a whole, must specially foster and sustain, amongst its varied industries, agricultural, manufacturing, and commercial, those which are a prime necessity to the greatest number, whenever it has become evident that private enterprise and capital are alone unable to establish and maintain them. This fostering and sustaining on the part of the Government must be done by means of protection against foreign competition on the one hand, or by means of direct support on the other.

Other things equal, the establishment of nearly every kind of manufacture in a new and growing country, ill-provided with skilled labor, effective machinery, and lines of cheap transportation, involves, at the outset and thereafter, a large expenditure of money. A considerable period of time must therefore necessarily elapse before an adequate return for such outlay can be looked for; in other words, before any enterprise so established can become self-supporting. Nevertheless if, during the infancy of such enterprises, prices to the consumer have been enhanced, with their growth the raw hand will become the skilled laborer, motive power and machinery will have been rendered more effective, and the cheapest avenues for home and export sale and trade opened up, until finally, without aid or protection, these industries are permanently established with the world's market at their command. Home competition and rapid production naturally following, the cost of manu facture and price to the consumer gradually diminish, until the lowest limit is reached.

Still further, it must also be conceded that the incidental and indirect advantages to communities in which growing industries are located must be very great. They stimulate general business by providing employment for labor in itself unskilled; they furnish an incentive to