whither buyers come from the other countries of Europe to satisfy their wants. Germans come here for wool, Frenchmen for jute, and all nations alike for rare dyes, spices, and drugs. The opening of the Suez Canal has restored to the maritime cities of the Mediterranean a share of the eastern business which they once monopolized. But, on the other hand, the advantage of prior possession, the growing use of steamers, and the certainty of being able to obtain a return freight, all tend to favour trade with England, carried in English bottoms. As the result of these conflicting influences, the trade of India with the United Kingdom, while in actual amount it remains pretty constant, shows a relative decrease as compared with the total trade. China; Taking merchandise only, the average value of English India's exports and imports during the two years 1867-69 amounted trade with England; to slightly more than 58 millions sterling, out of a total of nearly 86 millions, being 66 per cent. Ten years later, the average value of English trade for 1877-79 was also 58 millions, but the total value had risen to 100 millions, and the proportion had therefore fallen to 58 per cent. Next comes China, with an Indian trade of about 15 millions (imports and with exports), or 14 per cent. Of this, nearly 12 millions represent opium, the only other articles which China takes from India being raw cotton and cotton twist, and gunny bags. In return, China sends silver, copper, raw silk and silk goods, sugar and tea, the balance of trade being adjusted through England. It is said that Chinese tea is now only consumed in India by natives, or sent across the frontier into Central Asia. The annual quantity imported into India is about 1 million lbs., and the price is extremely low. The trade with the Straits may be regarded as with the Straits; a branch of the Chinese trade. The exports are valued at about 2 millions sterling, of which more than a half consists of opium, the rest being principally made up by rice and gunny bags. The imports are tin, betel-nuts, and pepper and raw silk, valued altogether at little more than one-third of the exports. The trade with Ceylon is merely a form of coasting with trade, large quantities of rice being shipped in native craft Ceylon; along the Madras coast to feed the Tamil coolies in that island. The imports are hardly a sixth of the exports in value. With Mauritius, rice is exchanged for sugar to a large amount on both sides. Of European countries, France and Italy alone deserve India's notice beside England. In 1877-78, the Indian exports to trade with France reached the large total of nearly 6 millions sterling, France; United States; consisting chiefly of oil-seeds (rape and gingelly), indigo, cotton, silk, and coffee. The direct imports in the same year were valued at only £451,000, principally apparel and millinery, brandy and wines, and silk goods; but the same articles are also sent in considerable, although unascertained, quantities via with Italy; England. The trade with Italy shows a steady increase within the last five years, the exports having risen from £1,100,000 to £1,670,000, or 52 per cent., and the imports from £250,000 to £380,000. The exports are cotton, silk, oil-seeds (sesamum), and hides; the imports-corals, glass beads and false pearls, with the spirits and wines, and silk goods. The trade with the United States comes next to that with Italy, both aggregating a little over 2,000,000 sterling. The exports are indigo, hides, raw jute, and gunny bags, lac, saltpetre, and linseed; the imports are almost confined to ice and mineral oils. In 1878-79, the import of ice fell off greatly, under competition from local manufacture at Calcutta and Bombay; while the imports of kerosene oil rose to 3 million gallons (chiefly to Burma). In the same year, America sent direct to India nearly 1 million yards of grey cotton goods, taking advantage of the abolition of duty; and a still larger quantity is known to be received through England. The trade of India with Australia (valued altogether at about £800,000) is limited to the export of rice, gunny bags, and castor-oil, and the import of copper and horses. A little coal is sent from Australia, and a little coffee from India. Hitherto Australia has preferred to drink Chinese tea ; but a considerable development of trade in this and other Indian products is hoped for, from the Melbourne Exhibition of 1880. Experimental shipments have already been made. with Australia. The following tables summarize the foreign trade of India in 1877-78: DISTRIBUTION OF FOREIGN TRADE OF INDIA IN 1877-78 DISTRIBUTION OF PRINCIPAL EXPORTS OF RAW PRODUCE Canal. The opening of the Suez Canal in 1869, while it has stimu- Trade vid lated every department of trade into greater activity, has not the Suez materially changed its character. The use of the Canal implies steam power. In 1871-72, the first complete year for which statistics are available, the total number of steamers which sailed via the Canal was 422, with a tonnage of 464,198. Every subsequent year shows an increase until the great fall in trade in 1878-79. The highest figures reached were in 1877-78, with 1137 steamers and 1,617,839 tons, being 64 per cent. of the total steam tonnage. As might be anticipated, the imports, being for the most part of small bulk and high value, first felt the advantages of this route. In 1875-76, 85 per Growth of cent. of the imports from Europe and Egypt (excluding the Canal treasure) passed through the Canal, but only 29 per cent. of the exports. In 1878-79, the proportion of imports was substantially the same, while that of exports had risen to 64 per cent., showing that such bulky commodities as cotton, grain, oil-seeds, and jute are now beginning to participate in the advantages of rapid transport. The actual values of Canal trade in 1877-78, the year of its greatest development, were 29 millions sterling for imports, and 23 millions for exports. The Canal has reduced the length of the voyage from London trade. Balance of trade. Indian commerce for thirtysix years. The how for. Govern to Calcutta by about thirty-six days. The route round the Cape was more than 11,000 miles, and occupied nearly three months; that through the canal is less than 8000 miles, and takes from 30 to 45 days. Sir R. Temple, when Finance Minister in 1872, drew up a valuable State Paper, in which he placed in a clear light the various means by which the apparent excess of exports over imports is liquidated. During the thirty-six years between 1835 and 1871, the value of merchandise exported from India amounted to £1,012,000,000, say one thousand millions sterling; the value of merchandise imported into India, to £583,000,000, showing an excess of £429,000,000 in the exports. The value of treasure imported in the same period was £312,000,000, against £37,000,000 exported, being a net import of £275,000,000. Deducting this from the excess of merchandise exports, a balance of £154,000,000 has to be accounted for otherwise than in the ordinary operations of trade. The first item to be considered is freight. Next balance; come all payments made in England, whether by the Indian accounted Government or by private persons resident in India. During the thirty-six years taken, the aggregate amount of payments in England on Government account (now represented by the Secretary of State's bills) amounted to £113,000,000. These bills are drawn to meet charges due in England under such heads as civil and military pensions, interest on debt and on railway capital, military stores, etc.; and they are bought by bankers or merchants, who require to meet their own payments in India. They operate, financially, as if treasure had been sent to India, and thus reduce the apparent balance of trade at one stroke from £154,000,000 to £41,000,000. Private re- The remaining item to be considered is the remittances to mittances. England on private account, which it is impossible to ascertain with any pretensions to accuracy. In 1872, this item was estimated at £3,500,000 a year; but in former years it had been much less, and it is now probably much more. It includes such divers matters as the savings of officials, profits of trade and planting, interest on capital invested. Together with freightage, it would make up the balance of £41,000,000 yet unaccounted for, and thus finally equalize the trade of India. Elsewhere I have endeavoured to express in a more popular form the balance of trade during the five years ending 1879. The phenomena of the trade between India and China are to be explained on the same principles. In 1872-73, the total ment remittances. from exports from India to China were valued at £12,074,347, to Balance which opium alone contributed 10,529,673. The total Chinese imports from China were valued at only £1,355,171, showing trade. an excess of £10,719,176 in exports, for which India receives no direct return from China. In this case, China pays her debt to India by the excess of her exports to England, which are there placed to the credit of India. During the twenty years between 1852 and 1871, the aggregate balance of trade in favour of China in her dealings with England amounted to £112,000,000. This amount was available to settle the equally unfavourable balance with India, and was in fact paid by Indian opium, as certainly as if the opium had been sent to China viâ England. It is evident, therefore, that if the Chinese were to greatly increase their imports of English goods, the exchanges of India might be seriously affected. trade and Coasting Trade. The foreign trade of India is monopolized Coasting by four great ports,1 but the entire seaboard along both sides trade. of the peninsula is thronged by native craft, which do a large coasting business. In the Gulfs of Kachchh and Cambay, on the Malabar coast, and in the southern Districts facing Ceylon, a large portion of the inhabitants are born sailors, conspicuous alike for their daring and for their skill in navigation. In 1873-74, which may be regarded as a normal year, the total number of vessels engaged in the coasting trade which cleared and entered was 294,374, with an aggregate of 10,379,862 tons; the total value of both coasting exports and imports was £34,890,445. Of the total number of vessels, 280,913, with Statistics. 4,843,668 tons, were native craft. Bombay and Madras divided of coast between them nearly all the native craft; while in Bengal and shipping, Burma, a large and increasing proportion of the coasting traffic 1874; is carried in British steamers. In 1877-78, the year of famine, in 1878. the number of ships increased to 319,624; the tonnage to 15,732,246 tons; and the value to £67,814,446. By far the largest item was grain, of which a total of 1,137,690 tons, valued at 13 millions sterling, was thrown into the faminestricken Districts from the seaboard. Next in importance Staples of come raw cotton and cotton goods. The trade in raw cotton amounted to 387,438 cwts., valued at £957,900, much of which 1878. was merely transhipped from one port to another in the Bombay Presidency. Cotton twist and yarn amounted to 17,425,993 lbs., valued at £965,038, of which the greater part was sent from Bombay to Bengal and Madras. The total 1 See ante, p. 442. the coast trade, |