By comparing the amount of our trade with South America with the whole amount of its foreign commerce, it may be seen that our share therein is 20.3 per cent; and that of the imports into South America this country furnishes but 8.8 per cent, while of the exports it receives 31.9 per cent. Comparing our imports with our exports the balance of trade with South America is against the United States to the extent of $85,510,267. There is another fact of large importance relating to the present extent and character of our trade with South America, and with nearly all Latin-American countries, which can not be wisely overlooked in the present consideration, and this fact pertains to the carrying trade and its peculiar influences upon the distribution of American products. Of our total trade with South America, amounting to about one hundred and fifty-two millions, $141,848,774, or 93.3 per cent, is with the east side of the continent, the nearest one to this country generally and to Europe. Of this trade on the Atlantic side, $114,061,689, or over 80 per cent, is in imports, of which $33,578,777 are brought under our own flag, and $80,482,912, or 70 per cent, under European flags. Of the exports to the east side, amounting to $27,787,085, not quite 51 per cent are carried under our flag, and the balance, about 49 per cent, under European flags. These disproportionate figures represent a part of the practical results of the "three-cornered" European system of sea-carrying trade which controls the distribution of North and South American products. Thus vessels of established and usually subsidized European lines carry from European ports the productions of those countries to noncompeting tropical America, their best market. From tropical America they bring to the United States the 70 per cent of our imports, referred to as carried under European flags, and representing so much of the 93.3 per cent of our whole South American trade. This importation is also non-competing, mainly, and is therefore to a best market for regu lar supply. These imports are then replaced by such articles of our exports as the home ports of the European vessels require, and our exports, surplus products, are carried to competing markets, where they are inevitably subjected to a more or less severe "struggle for existence." The competition arises naturally from similarity of production incidental to similarity of climate and of economical conditions; and it is instituted for the superior benefit of the countries represented by the foreign carrying lines, through the triangular system of routes established, intentionally operating as indicated. There is no reverse system of routes by which European lines might carry our exports to South American noncompeting ports; but for such disposition of our surplus products there is the American-Brazil line to Brazil, the "Red D" line to Venezuela, the Pacific Mail Line to Central America and on the rela tively unimportant Pacific coast, and there are "tramp" European steamers and Canadian sailing vessels. The statistical statement of the facts generally, in important details, is presented in or may be deduced from the following table: Statement showing the total and relative value of goods carried under American and foreign flags in the commerce of the United States with the several countries of South America during the fiscal year ending June 30, 1891. Relative to our total trade with South America, it appears from the foregoing statement that of the imports, amounting to $118,736,668, only a little over 30 per cent in value was brought under the American flag, and that almost 70 per cent was brought in European vessels; and that of our total exports to South America, amounting to $33,226,401, a little over 53.7 per cent was carried under our flag (represented almost entirely by two lines before named), while nearly 46.3 per cent was carried in European vessels. And the value of the whole trade being $151,963,069, the percentage of it carried under the United States flag was but 35.5, or in value $53,904,402, the superior amount of $98,058,667, or 64.5 per cent, being carried under European flags, mostly British, German, and French. In paying nearly twice over to foreign lines, mostly subsidized, what we pay to our own, in our carrying trade with South America, we place that amount of premium upon their discrimination against us in marketing our surplus products. The accompanying map gives the names and routes of the various steamship lines between Europe and Latin America, and the United States and the same regions. It does not include the lines between Europe and the United States, however, as it was made with special reference to Latin-American trade with other countries, for the use of the Bureau of American Republics, to the courtesy of the director of which the use herein is due. Should the proposed transfer of the Nicaragua Ship Canal to European ownership be consummated upon the completion of that interoceanic and inter American highway, and non-American influences between the two continents and upon their uniting soil become thereby strengthened, the interflow of commerce, so interesting in all its aspects to those most naturally concerned, and facilitated by great natural con ditions, as herein briefly pointed out, would be sure to encounter such obstructions as would be most for the benefit of countries bound to protect or desirous of protecting their citizen owners. Aside from this impending adversity, all present indications are apparently favorable to an increasing and more equitable commercial intercourse between the nations, whose agricultural resources are herein considered, and our own country. Some of the more important of these progressive indications may be fitly pointed out in conjunction as having become manifest during the last fifteen years or even in the last two or three. So far as compara. tive statistics of progress during the longer period are concerned, they will be found in the concluding chapter. (1) In 1877 and later several respectable trade papers, both in English and Spanish, weekly and monthly, were established in New York and other points of foreign trade in the United States, the best of which still live and prosper, and ably advocate and promote interAmerican interests. (2) In 1878 the State Department of this Government issued a circular, first prepared by the writer hereof in 1877, and later known as the "Trade Circular," which called upon our diplomatic and consular officers for all available information in the interest of export of our surplus productions, with designed reference to Latin America. Succeeding this national movement the information received has been regularly published since October, 1880, usually monthly, in the invaluable series of "Consular Reports" still issued from the Statistical Bureau of the State Department, and furnishing thousands of business men and the press with fresh and useful information not otherwise practically attainable. (3) In and since 1881, in place of a monthly line of five sailing vessels under foreign flags mainly, there has been established a trimonthly line of new and excellent American steamships, known as the "Red D" line, between New York, Curaçao, West Indies, and the ports of Venezuela, to the great advantage of our commerce with that country and a portion of Colombia. There has quite recently also been established, with American and Brazilian capital, an American line of steamers between New York and Brazilian ports, in place of the line some years ago discontinued. (4) The remittance of import duties, during this period, upon coffee, hides, and skins, and finally upon tropical fruits, etc., now that reciprocal arrangements in favor of our exports are in operation or are to be required, may also be considered as a very favorable and important indication of progress. (5) And finally, not to enter into relatively unimportant matters, the welcomed visits of a national commission of this country to the several Latin American countries in 1883 and 1884, and the succeeding assembling and sessions of the first Pan-American Conference here in the |