Year: 1878

questing the transmission to the Senate of any in
formation which may have been received by the
departments concerning postal and commercial in
tercourse between the United States and South Ameri
can countries together with any recommendations
desirable TO be submitted of measures be adopted
for facilitating and improving such intercourse
transmit herewith reports from the Secretary of state
and the Postmaster General, with accompanying
paper.


DRAIN GOLD.


The external commerce of the United States has for
many been the subject of socitude because OF
the outward drain of the precious metals it has
caused For fully twenty years previous to 1877 the
shipment of gold was constant and heavy; so heavy
during the entire period of the suspension of specie
payments to preclude the hope of resumption
safely during its continuance. In 1876. however.
vigorous efforts made by cnterprsing citizens
of the country and have since been continued to
tend our general with foreign lands. espe-
cally in manufactured articles and these efforts have
been attended with very marked success.


MponrATIoNs REDUCED.


The importation of manufactured goods was at the
time reduced in equal degree and the result
has been extraordinary reversal of the conditions
so long prevailing and complete cessation of the
outward drain of gold. The official statement of the
values represented in foreign will
show the unprecedented magnitude to which
the movement has attained and the protection
thus secured to the public interests at the time when
commercial security has become indispensable. The
agencies through which this change has been effected
must be maintained and strengthened if the future
is to be made secure. return to excessive imports
to material decline in export trade would render
possible return to the former condition of adverse
balances, with the inevitable outward drain of gold
necessary consequence. Every element Of aid
to the introduction of the products Of soil and
manufactures into new markets should be made
available.


AMERICAN GOODS FAVORED.


At present such is the favor with which many of
the products Of the United States held that they
obtain remuneratve distribution. notwithstanding
positive differences of cost resulting from our defec
tive shipping and the impcrfection of our arrange
ments every respect in comparison with those of
competitors for conducting trade with foreign mar
kets. If have equal commercial facilities need
not fear competition anywhere.


The laws have directed q resumption of fnan-
cial equality with other nations and have ordered
the basis Of coin values 1t is of the greatest
importance that the commercial condition now for
tunatey attained shall be made permanent. and that
rapidly increasing export trade shall not be al
lowed suffer for want of the ordinary means of
communication with other countries.
The accompanying reports contain a valuable and
instructive summary of information with respect to
our commercial interests in South America where an
inviting field for the enterprise of people is pre-
sented. They are transmitted with the assurance
that any measures that may be enacted in further
ance these important interests will meet with my
cordial approval. II. b. HAYES.
SECRETARY EvARTs REPORT.


Secretary Evarts' accompanying report is as fol-
To the PRESIDENT


The Secretary of State. to whom was referred the
resolution the Senate of the 9Th inst requesting
the President to transmit to the Senate "any nfor
nation which may have been received by the depart
ments concerning postal and commercial intercourse
between tho United States and South Amcri-
can countries, together with any recommended
tons desirable to be adopted for facilitating Ind
improving such intercourse. has the honor to lay
before the President copies of dispatches from the
diplomatic agents of the United States accredited to
the governments of South America touching the sub
ject matter of the resolution, and also as coming
within purvicw thereof copies Of report and its
annexes presented to this department by Mr.. J. w.
Fralick upon his return from extended journey
throughout the leading States Of South America. all
Of which papers specified in the subjoined list.
RECOMMENDATIONS.


with reference to the request of the Senate for
"any recommendations desirable to be submitted Of
measures to be adopted for facilitating and improving
postal and commercial intercourse. the Secretary of
State without entering into extended discussion
OF the very important and interesting topics sug-
gested by the papcss submitted respectfully calls
attention to certain manifest conclusions which all
these reports tend to support.


First-It seems to be very evident that the provi-
sion Of regular steam postal communication by aid
from government has been the forerunner of the
commercial predoininancc Of Great Britain in the
great markets OF Central and South America. both
the Pacific and Atlantic coasts of the continent. II is
no less apparent that the efforts all the other Fu-
ropcan nations Germany. France and Italy. share
in this profitable trade, have been successful pro-
portion with their adoption Of regular steam postal
communication with the several markets whose
trade they sought.


s,cond-Thcso papers show also that the enterprise
and sagacity thus shown by European nations has
actually reversed the advantage which geographi
cal position gives in relation to this extensive
commerce Of the American hemisphere
PREFERENCE AMERICAN PRODUCTS.
The commercial correspondence OF our merchants
with the trading points the East and West coasts
crosses the Atlantic twice TO make postal con-
nection i'm a circuit of trade which has its be-
ginning and its end on continent.
The statistics of our limited trade under this
extraordinary disadvantage. show that the growing
preference for products in these South American
markets insists upon being grated even AZ the cost
OF circuit of importation which carries our mcr-
chandise Europe and incorporates IL as contrbu-
ton to the volume and the profits Of European South
American trade. No stronger demonstration of tho
tendency of commerce follow In the train of postal
communication can be conceived than this vast and
expensive circuit of importation rcsortcd to- in de-
fault of direct opportunities between the countries
OF demand and supply.


Th,rd-1t would from these reports that the
merchants and the communities. no less than the
governments of these countries, strongly desire
enlargement of direct trade with the United States.
With all tho advantages Of foreign commerce. sup
piled by the existing European arrangements for it's
prosecution, these markets perceive that this
unnatural circuit when the resources Of
tho United States could supply direct
| trade in its place, must be at the
expense of the party subjected to the system and the