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The Government, which causes coffee to be grown on its own account, sells yearly at auction at Batavia about 100,000 piculs (13,330,000 pounds); the balance is brought to Holland, where it is sold for the account of the Government. Many private planters also send their crops on consignment to Holland. The direct trade with Germany is very unimportant, while Austria, France, and Scandinavia buy large quantities of fancy qualities directly. Large quantities of Java coffee reach Germany via Holland, German coffee merchants paying two or three middlemen's profits rather than run the risk of direct importation.

Sugar. This is the chief article of production and export of the island, nearly 880,000 tons being exported yearly. While the sugar industry is not very flourishing under the present market prices, it is nevertheless able to hold its own in the competition of the world. In Germany, as well as throughout the Continent, cane sugar plays only an insignificant rôle in the sugar trade since the development of the beet-sugar industry has become so marked.

Rice.-Java does not export rice in any great quantities, although enormous stretches of country are devoted to its cultivation. Rice constitutes the main food

of the natives, and only small quantities of the very finest grades, which are too expensive for native consumption, are exported, chiefly to Holland.

Arrack. This product is regularly shipped to Holland, whence it is distributed to other countries. Scandinavia is a chief consumer of arrack, in which country it is used in making up punches.

Chair cane. Of all articles of export from Java, Germany gives this the most attention and imports large quantities directly; besides, large quantities are shipped via Singapore and Holland which ultimately reach the German markets. Java itself produces only the inferior grades of cane, while the finer and medium grades come from Sumatra, Borneo, and the Celebes.

Pepper.-In days gone by Java cultivated pepper to a considerable extent, but gave it up years ago. Latterly, the high prices this condiment commands has caused planters to turn to its cultivation again, and Java will once more play a rôle as a pepper-producing country. At present pepper is cultivated in the Lampong districts of West Sumatra, while the so-called Singapore pepper is grown in the northeast provinces of Sumatra. Indirectly, Germany imports pepper from Java via Holland or Singapore, chiefly via the latter route.

India rubber. This article of commerce is produced and exported only in small quantities, although the quality is, as a rule, excellent.

Hides.-Hides play an important rôle in the export trade of Java. Buffalo hides are well prepared, so that in quality they are better than those of British India and the other islands of the East Indian Archipelago. These hides are exported to Amsterdam, whence they go in large quantities to Germany. The poorer qualities find their way via Singapore to England, where, under the name of "Singapore buff," they are known as an inferior article. Hides of cattle are also exported and are of good quality, being on the whole thinner and more tender than European cattle hides. All hides are well stretched and sun dried; other preservatives, such as salt, are not used.

Goatskins.--The export of goatskins has become very important during the past fifteen years and amounts to more than $500,000 per annum, although the official statistics show a much smaller figure, owing to the low value placed upon the skins in computing the export duty. The United States is the best customer for goatskins, even the greater part of the large quantities of skins consigned to Amsterdam finding its way thither.

Tobacco. This product of Java is much inferior to that of Sumatra; it is exported mainly to Holland and thence partly to Germany.

Indigo. The cultivation of the indigo plant is, as elsewhere, on the wane. This

is due to the competition of the chemical product, which is manufactured-especially in Germany-in very large quantities, the planters being unable to meet the price of the artificial product.

Kapok.-Kapok, the Java cotton, is finding ready markets throughout the world, especially as a filling for mattresses. Owing to this increasing demand, more attention is being paid to the rational culture of the kapok tree. At first kapok was only sent in consignments to Holland, but now, for some years past, Australia has become a ready buyer, and more recently the United States and Scandinavia have shown interest in this product.

Tea.-Java tea is of a strong, palatable quality. While formerly this article was exported almost exclusively to London, England, and latterly also to Holland, it is now also being exported directly to Germany.

Cinnamon.-The best customer for this product is the United States. Even those consignments which are shipped to Singapore go eventually to the United States, while Germany buys very little Java cinnamon.

Tin.*-Of the tin-producing countries the Netherlands colonies in the Indian Ocean rank second in importance. Practically all the tin produced in these islands is consigned to Holland and forms an article of speculation on the Amsterdam exchange.

Peruvian bark.--Since a quinine factory has been established in Bandoeng, Java, growers of peruvian bark are prospering. Formerly, a European syndicate of buyers of the raw product depressed prices to suit their interests, thereby realizing an enormous profit on the finished drug.

Copra.-Copra, the dried meat of the cocoanut, is exported chiefly to Marseilles, but quantities of this product are also shipped to Genoa and, via Holland, to Belgium and some parts of the German Empire. There is also a direct export trade in this article with Hamburg.

Cocoa. The culture of the cocoa tree is still in its infancy, but, owing to the growing demand for the cocoa bean and the fact that both climate and soil of Java are most excellently adapted to the cocoa culture, it is most probable that in the near future large plantations may be devoted to this product.

Cubeb.-There is hardly an article of commerce which has been subject to such fluctuations in price as this. Fifteen years ago $120.60 for 135 pounds was realized for this drug; the present market price is hardly 5 per cent of that.

Paraffin. - Paraffin, a by-product of the petroleum industry of Java, is exported mainly to Holland and Marseilles, where it is manufactured into candles.

Tapioca.-Tapioca, the pure flour of the tapioca root, is manufactured chiefly in Bandoeng. While England is a good customer for this product, the bulk goes to Amsterdam on consignment.

Teak wood. This is of excellent quality, and the export business in this wood is constantly growing. It goes chiefly to Holland, England, and France.

Java hats.-These, made from a special kind of bamboo, are shipped in large quantities from Batavia to Europe and America. About 500,000 hats are exported annually, mainly to France, England, and the United States.

Vanilla.-While the quality is inferior to Mauritius and West Indian vanilla, this is due only to the method of preparation, the climate and soil being well adapted to the culture of the vanilla bean.

WALTER SCHUMANN,

MAINZ, GERMANY, July 23, 1903.

Consul.

*See "Tin production of the world" in ADVANCE SHEETS No. 1717 (August 7, 1903).

No 277-03-5

FOREIGN TRADE OF SIAM.

The foreign trade of Siam in 1902 aggregated $27,692,000* in value for goods imported and $37,582,000 for goods exported.

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Cotton breechcloths, shawls, bleached and brown shirtings, calicoes,

and yarns................

Ready-made clothing

Jute bags.........

Machinery (mainly for cultivating and grinding rice)

Ironware, cutlery, iron and steel plates and sheets, brass, and other articles composed of metal.........

Provisions....

Opium.....

Sugar.

5,031,000 473,000 I, 247, 000 817,000

1,075, 000 1, 612, 500 860, 000

Petroleum and other oils..

Gold leaf..............................

860, 000

903, 000

752, 500

Besides these articles, the importation of drugs and chemicals, dyes and colors, cement, tobacco and cigars, hats and caps, and straw and bamboo matting represent very respectable sums, varying from $130,000 to $430,000 each.

SIMON W. HANAUER,

Deputy Consul-General.

FRANKFORT, GERMANY, August 3, 1903.

COMMERCE OF GERMANY IN 1903.

The exports of German goods for the first six months of 1903 show an increase, both in quantity and value, as compared with the same period of 1902 and 1901, while compared with 1900 and 1899 a considerable reduction in value is apparent. The increase in value (precious metals included) over the previous year is estimated at 187,000,000 marks ($44,506,000) in round numbers. The imports have not increased in quantity quite as much as the exports, but the value increase is larger.

*The above values are calculated on the gold value of the tical at 43 cents to the dollar.

The following table gives the imports and exports for the first six months of the last five years:

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The imports of the following articles amounted to more than 100,000,000 marks ($23,800,000) each:

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The following tariff groups of exports amounted to more than 100,000,000 marks ($23,800,000) each:

124,940
153,090

101,
1,485

23,611,980

153,252

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COTTON-MANUFACTURING INDUSTRY OF

AUSTRIA.

TARIFF UNCERTAINTY.

Owing to the prevailing uncertainty and apprehensions of a tariff separation between Austria and Hungary (which latter country was a province of Austria only thirty years ago), the Hungarian market, upon which the Austrian cotton mills greatly depend, continues in a state of jeopardy. Hungary had, up to within a few years, no textile industry of its own and it has been supplied almost entirely by the Austrian manufacturers. The large agricultural population of Hungary is poor, and therefore consumes large quantities of cotton goods. Considering these unfavorable circumstances, it is the more remarkable that the Austrian cotton industry yet retains a prominent position in the world's market.

COTTON CONSUMPTION.

The bulk of cotton used is imported from the United States, while only a small percentage of East Indian and Egyptian cotton finds a way to this market. During 1902 the total consumption of cotton in Austria amounted to 140,000,000 kilograms (318,644,000 pounds), of which fully 100,000,000 kilograms (220,460,000 pounds) were American. The cotton is shipped from the United States direct to Bremen or Hamburg, and thence forwarded by rail or on the River Elbe to its place of destination.

No cotton is grown in this Monarchy, all attempts to raise it, including recent experiments in Hungary, having signally failed.

COTTON MILLS.

Spinning mills.--As regards the cotton mills, Bohemia counts the greatest number of spindles, so that the largest portion of cotton. imported remains in Bohemia. The mills manufacture chiefly the coarser numbers of yarns-Nos. 20 to 30 and below, and Nos. 36 to 42, while numbers over 60 are produced to a very small extent; qualities over No. So are generally imported from England and Switzerland.

The official returns for 1902 give the following number of spindles in operation: Bohemia, 1,750,000; total for Austria-Hungary, 3,128,000.

The import and export of yarns is comparatively of little importance, excepting the finest numbers, which are regularly imported.

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