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with the “F” being the only ones that are proposed to be admitted into the Hawaiian Islands free of duty:

Table exhibiting the principal articles of the domestic exports of the United States

to the Hawaiian Islands during the fiscal year ending June 30, 1866. Agricultural implements

$10, 394 Horses ... Bread and breadstuffs, “F”

21,537 Bricks, lime, and cement.

81,035 Cotton manufactures

12, 374

45,072 Drugs and medicines Bullion...

11, 747 Gold and silver coin

24,000

62, 435 Cordage.. Boots and shoes

21, 948 Hardware

22, 642

115, 654 Saddlery and harness.

17, 232 Lumber, furniture, and woo e i wares Petroleum...

263, 490 Paper and stationery

13, 170

12,044 Beef, pork hams, bacon, preserved meats. Dried and pickled fish and oysters, “F”.

22,545 Manufactured tobacco..

17,457 Wearing apparel and unspecified manufactures of wool

19, 635 Other articles amounting in value to less than $10,000 each, and all

48,000 articles not enumerated

209, 228

1,051, 639

But the political considerations adverted to in your communication appear to me to be of such iinportance as to entirely overshadow the comparatively trifling interests involved in the commerce of these islands, and which, though almost exclusively with the United States, amounts altogether in value to a little over a million of dollars each way per year. These island are essentially Americantheir political institutions, their polity, their foreign intercourse, almost wholly American. The native population is fast disappearing, and citizens of the United States own and work the only profitable industries they boast, while the day is not far distant when these islands may be imperatively needed as a rendezvous for our Pacific navy, and for our future fleet of Indiamen, who, with the Pacific railroad, are destined to divert the commerce of Asia into a new direction.

For this reason I am inclined to regard the treaty with favor, although I would prefer that its enumeration of articles to be admitted free were somewhat different. The offer of fair equivalent in trade should surely form the groundwork of all treaties of this character; and since sugar constitutes the main exports of the Hawaiian Islands to the United States, it would seem but proper that whatever articles form the main exports of the United States to the Hawaiian Islands should be admitted free of anty with the latter country. That this was the intention of the original negotiators of this treaty is evident from the fact that the articles proposed to be admitted free of duty into the Hawaiian Islands were those which then formed the staple exports of our Pacific possessions. But the nature of the trade has changed since then, and so, I think, should be the terms of this treaty. I remain, sir, very respectfully, your obedient servant,

H. McCULLOCH,

Secretary of the Treasury. Hon. WILLIAM H. SEWARD,

Secretary of State of the United States.

No. 19.)

DEPARTMENT OF STATE,

Washington, February 1, 1867. SIR: I inclose a copy of a correspondence between this Department and that of the Treasury on the subject of the revival of the reciprocity treaty between the United States and the Sandwich Islands, of 1855. That treaty was concluded soon after the one of a similar character between us and Great Britain, and seems to have been suggested by it. You will notice that the Secretary of the Treasury is of the opinion that under existing circumstances we would be justified in

expecting from the Hawaiian Government a more liberal measure of equivalents than was offered on the former occasion. You will consequently make an effort to obtain them. I will not prescribe what may be regarded as indispensable in that respect.

This may be better determined at Honolulu after a survey of the whole ground, and conferences or correspondence with the Hawaiian minister for foreign affairs.

You will, of course, endeavor to obtain the best terms you can. It will be desirable, however, that no treaty should be signed which is not likely to be approved by the Senate, or even by Congress, which must pass an act for the purpose of carrying it into effect. I am, sir, your obedient servant,

WILLIAM H. SEWARD. EDWARD M. McCook, Esq., etc.

No. 21.]

SAN FRANCISCO, May 29, 1867. SIR: I have the honor to forward you to-day, by Wells, Fargo & Co.'s Express, one copy of the treaty of reciprocity concluded with the Hawaiian Government, and signed by Mr. Harris and myself last night, although dated the 21st. I regret very much that I can not forward with the treaty a complete analysis of it, together with such statistics as may be valuable to the Department hereafter; but I am compelled to defer this until my next dispatch, when I hope to place in your possession all the information either the Executive or Congress could desire on the subject. I will now content myself with calling your attention to the fact that nearly every article designated in your instructions to me has been placed on the schedule of goods admitted free of duty into the ports of the Hawaiian Kingdom.

Two items in the treaty probably demand a word of explanation now: First, that relating to the admission of sugars into our ports. My reason for insisting that no sugar above No. 12 Dutch standard in color" should be admitted free was, that sugars much above this grade come in direct competition with the coffee sugars produced by the American refineries: and I saw no reason why the pecuniary interests of the large sugar manufacturers both on the Pacific and Atlantic coasts should be sacrificed to subserve the interests of the planters of the Sandwish Islands. As the treaty now stands, both interests are benefited, and both parties should be satisfied; though, had I been compelled to it, I would have yielded a still higher grade, say to "No. 15 Dutch standard," rather than not have concluded the negotiation, and would do so yet should the king of the is ands refuse to approve the treaty on that account. I will write again of this more fully.

Cotton manufactures “not exceeding 160 threads to the square inch, counting the warp and filling," is one of the principal articles adınitted free into the Hawaiian ports. My reasons for assenting to this limitation, instead of making all cotton goods free, were, that I considered it of no special importance, because no American manufacturers make cotton goods, such as are used in the island trade, as fine as 160 threads to the inch; and I have a pledge that the duties on all cotton goods shall be advanced 25 per cent; and consequently our coarse American goods will again take the place in the Hawaiian market they held before the war. I will advert to this also more fully in my next dispatch.

I hope you will be fully satisfied with the result of the negotiations intrusted to me. I have carefully considered all probable objections which might be made to the details of the treaty, and endeavored to construct it in such a manner as to obviate them; and I think the treaty as nearly a reciprocal one as conld well be made, for although the amount of revenue yielded up by the United States is much the larger, the total value of the articles indicated in the respective schedule to be admitted free into the ports of each country is about the same in gross, the difference in revenue being caused by the United States tariff being so much higher than the Hawaiian.

I think that the consummation of this treaty will largely benefit the commercial and manufacturing interests of this coast and of the country, and prove the initial step toward the acquisition of the islands should this country ever want them.

I have deemed it necessary to inclose this dispatch with the treaty as a partial explanation of some of its provisions. I will forward an analysis and all statistics at my command by the next steamer, together with notes of conversations between Mr. Harris and myself during the negotiation.

No publicity has been given to the matter, nor will there be unless divulged by members of the Hawaiian Government.

*

I have the honor to be, your very obedient servant,

EDWARD M. McCOOK. Hon. WILLIAM H. SEWARD,

Secretary of State, Washington, D. C.

SAN FRANCISCO, June, 1867. Sir: In my dispatch No. 24 I had the honor to call your attention to some of the provisions of the treaty of reciprocity between the United States and the Hawaiian Islands, signed by Mr. Harris and myself, and submitted with that dispatch for the approval of the President.

I now have the honor to present some statistics which I hope you may find useful in the consideration of that treaty, and which may enable the Department of State to furnish the Senate with such information as will possibly lead to a favorable consideration of the treaty when it comes before that body for ratification.

The official statistics at my command are imperfect; and, ow.ng the different manner of classifying goods in the custom-house of the United States and the Hawaiian Islands, I have found it extremely difficult to prepare an analysis of the treaty which will be at all satisfactory. However, those statistics I do transmit have been carefully prepared in the hope that they may enable you to form a correct idea of the pecuniary results involved in the consummation of the treaty. The political advantages you are much better able to predict than myself. I attach two tabular statements to this dispatch; No. 1, showing the comparative value between goods proposed to be admitted by the treaty of 1855 and that of 1867; No.2 shows the value of goods exported from the United States into the Hawaiian Islands during the year 1866, including only such articles as are proposed to be admitted into the Hawaiian Islands free of duty by the treaty just signed, and also showing the amount of goods imported from all countries into the Hawaiian Islands during the year 1866. You will see by these figures that the concessions granted the United States in this treaty are much larger, both in value and growing importance, than those granted in 1855.

I desire, however, to especially call your attention to the fact that the sum total of articles proposed to be admitted duty free from the Hawaiian Kingdom into the United States, taking last year's statistics as the basis, will amount to $629,385, while the amount of exports from the United States proposed to be admitted into the Hawaiian Kingdom free of duty is $813,747, making the reciprocity, so far as the gross value of products is involved, nearly equal, the balance being in favor of the United States; but owing to the fact that the rate of import duties levied by the United States is much larger than the rates levied by the Hawaiian Government, the sum of the revenue remitted by the United States will be the greater. In proportion to the revenues of the two countries the Hawaiian Government has yielded more than ours, but I felt it to be my duty to demand all that I thought would be conceded, and I think the treaty as it now stands will be equally bene. ficial to the consumers and the manufacturers of the Pacific States and the producers of the Hawaiian Islands. I inclose a memorandum, kept by Mr. Harris, of the more important conversations between Mr. Harris and myself during our conferences. It was not deemed necessary to preserve them in the shape of formal protocols, but we intended that they should assist in explaining to our respective Governments some of the reasons which influenced our action.

I call your attention to paragraphs marked A B C of this memorandum. I stated in my former dispatch that any sugar above No. 12 Dutch standard in color comes in competition with the sugar manufactures here, although I would have assented to the admission of a higher grade rather than not conclude the treaty. One very important argument in favor of the admission of these island sugars free is the fact that they are the best source of supply to the Pacific States, and it costs consumers here, on account of freights, charges, interest, etc., about 24 cents per pound more for Louisiana or West India sugars than the consumers in the Atlantic or Western States pay.

You will see how this difference arises by the following statement, prepared by one of the first merchants of this city. He takes the cost of 120,000 pounds of sugar purchased in New York and landed here: 120,000 pounds, at 12 cents currency (at $1.40 gold).

$14,400.00 Shipping charges and cooperage.

120.00 Insurance on $1,600, at 3 per cent

480.00

New York commission, 24 per cent.....

15,000.00

375.00

15, 375.00

To cover this by a sight coin draft, and the rate of gold $1.40, gold... $10,982. 15 Premium on amounts, coin drafts, 2 per cent..

219.64 Interests, 41 months' voyage, 1 month storage, 2 months' credit, 1 month

remitting, say 84 months' credit in New York, 41 months at 1 per cent premium on $11,201.81, 41..

504.08 Freight on 120.000 pounds (3,500 cubic feet), at 30 per pound. $1,050.00 Primage, 5 per cent..

52.50 At 73 cents gold for currency

1, 102.50= 804.83 Landing charges and 1 month's storage

125.00 Two months, one-sixth policy

24. 30 Gold ....

12,660.00 Loss in weight by natural drainage=to 6 per cent. Weight delivered, 112.800 pounds, or 1 pound=11.22 (gola $1.40), 15.71 currency. No allowance for sea damage.

VENTURE OF A NEW YORK MERCHANT.

120,000 pounds sugar, at 12 cents ($1.40 gold)..
Shipping charges and cooperage.
Insurance on above, at 3 per cent.

$14,400.00

120.00 480.00

15,000.00

Covered by remittance in gold sight drafts:

Gold sold in New York, at $1.40.
Commission, at 2 per cent
Interest at 44 months, at 6 per cent per annum, on $10,928.
Freights, etc...
Landing charges and 1 month's storage.
Fire insurance.

$10,714.26

214. 29 273. 20 801. 23 125.00 23.02

San Francisco commission and counter...

12, 154.00

639.70

12,793. 70 One hundred and twelve thousand eight hundred pounds delivered at San Francisco. One pound=114 in gold, or 15$ in currency.

B. No American cottons are brought to the San Francisco market or used in the islands as fine as 160 threads to the square inch. A. & W. Sprague's prints are the finest, and they average only 146 threads to the square inch; consequently, this standard being fixed, and Hawaiian duties increased 25 per cent, as they will be if this treaty is ratified, the American manufactures will take their old place in that market.

C. I declined to admit wool on account of the late action of Congress imposing an additional duty on all foreign wools. I insisted on and secured the admission of American woolen manufactures, except ready-made clothing: the exception was assented to by me because the manufacture of clothing is alınost the only legitimate means of support for a large number of the native women of the islands. I hope the treaty will be approved by you without change, and ratified by the Senate without objection. It is certainly more fair in its reciprocity than was our Canadian treaty, and its ratification will result in securing to us the entire political and commercial control of these islands, which are far richer in agricultural resources than Cuba or any other of the West India islands.

When the Pacific railroad is completed, and the commerce of Asia directed to our Pacific ports, then these islands will be needed as a rendezvous for our Pacific navy, and a resort for merchant ships, and this treaty will have prepared the way for their quiet absorption. I have the honor to be, your very obedient servant,

EDWARD M, McCook. Hon. WILLIAM H. SEWARD,

Secretary of State, Washington, D. C.

No. 1.Tabular statement.

[Treaty of 1855. --Schedule in article 1.]
Sugar, unrefined ..... $1,024, 924 | Poultry: Eggs..
Sirup of sugar-molasses 99,449 | Plants, shrubs, and trees
Coffee

47,807 Pelts and wool, unmanufacArrowroot.

tured Live stock and animals of all

Rags. kinds

Hides, furs, nd skins, unCotton, unmanufactured

dressed Seeds and vegetables (not

Butter and tallow... preserved)

2, 312 Undried fruits (not preserved) ..

13, 352

$2, 325

33, 628 7,271

1, 231,068

[Treaty of 1867.-Schedule in article 1.] Animals

Sandal koa and kowood Arrowroot

Seeds, plants, shrubs, and trees Coffee

$47, 807 Sugar, not above No. 12(Dutch Cotton, unmanufactured

standard)....

$410, 756 Fruits and vegetables.

15, 664 Sirups of sugar and molasses - 99, 449 Furs, hides, and skins, un

| Tallow

7,271 dressed

35, 106 Rice 13, 332

293, 856 No. 2.- Tabular statement.

Articles.

Value of ar-
ticles ex

Value of arti-
ported from

cles imported the United

into the HaStates, as

waiian Islands

from all coun-
shown by
United

tries, as shown
States cus-

by the Hatom-house

waiian cusstatistics,

tom-house sta

tistics. 1886.

In bond.

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Agricultural implements...-
Animals
Beef, bacon, pork, ham, and preserved meats.
Boots and shoes
Bread and breadstuffs.
Brick, lime, and cement
Bullion...
Cordage and naval stores
Copper and composition sheathing, nails and bolts
Cotton, manufactured.
Fish and oysters
Fruits and vegetables.
Gold and silver coin
Hardware
Hides, furs, skins, and felts, undressed
Hoop iron and rivets (includes steel)
Ice
Iron and steel
Leather and tallow
Lumber and timber of all kinds (includes staves, head-
ing, etc.)..
Machinery
Oats and hay
Paper, stationery, and books.
Petroleum and other oils
Plants, shrubs, and trees..
Refined sugar
Rice....
Staves and heading
Woolen manufactures

Total.....

72,224 2,111 4,734 1,113 1,604 5, 646

123,214

32, 361

263, 490

7,405

12,044
13, 170

102,565
32, 116
23,583
13, 444

1,700
71,221

453 182,954

24,910

48,000

813, 797

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1 Whalers' supplies are often here (see years in bond).

Includes hats, woolen manufactures, and clothing. 9 Brought in American whalers.

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