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reached the full capacity of the soil, and is seven or eight times greater than in 1874-'75. Our exports to the islands have increased in very nearly the same ratio, being five or six times greater than in 1874-'75, or, if measured in quantity rather than by price, are about seven times as great. A new merchant marine has been created, consisting of vessels built expressly for the service, costing over $3,500,000. Of this total tonnage over 90 per cent is American built, and the rest was bought. These mercantile houses, with their shipping, transact tbe entire commerce both ways, and transport annually about $12,000,000 worth of merchandise at very high rates of freight, commission, and exchange.

In general, the effect of the treaty has been to make the islands a field for very profitable investment of American capital. It has created a demand which would not have existed otherwise for American produce to an amount which may seem small ($23,000,000 in nine years) when viewed in comparison with our total export, but which, when viewed in connection with the fact that the population which has made that demand is less than 80,000, is remarkably large. During the last four years it has averaged about $40 per capita per annum, and, if the transportation charges be added as they properly should be, it will amount to over $50 per capita per annum. This is four or five times as much per capita as England or Canada buys of us. The general results of the trade may be seen in the following tables:

Values delivered by the United States to the Hawaiian Islands for nine years—1876 to 1885.

Invoice value of United States exports to Hawaii	$23,686,328
Bills of exchange to pay for all Hawaiian imports from third countries	9,868,674
Difference between coin exported to and received from Hawaii	2,222,181
Outstanding liabilities of United States to Hawaii not known	....
Total values paid by United States	35,777,183

To balance the account:

Profits already realized on merchandise account	$18,414,766
Cash debts payable to United States at maturity out of future shipments	6,500,000
Increased values of productive properties in the islands owned by Americans	11,680,164
	72,372,113

Values received and receivable by the United States from the Hawaiian Islands for nine years—1867 to 1885.

Invoice value of Hawaiian exports to the United States	$51,294,764
Add freight and insurance to obtain value in United States ports	2,897,185
Value of merchandise received		$54,191,949
Liabilities of the islands to the United States for advances on crops	3,000,000
Bonded debts payable in United States and secured on island property	2,500,000
Hawaiian Government bonds paid for in silver, coined on Hawaiian Government account	1,000,000
Total liabilities to United States		5,500,000
Increased value of plantation properties owned by United States citizens, as assessed in 1883	10,180,164
Value of other productive properties	1,500,000
		11,680,164
Total values received and receivable		72,372,113

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General distribution of profits.

To American shipping:
Freights and insurance on imports from the islands	$2,897,185
Freights and insurance on exports	5,127,964
Passenger receipts	1,325,000
		$9,350,149
Commission on purchases for export to the islands	592,158
Commission on sales of islands' produce	2,209,463
		2,801,621
Premium on exchange		812,839
Interest on loans and advances		2,160,000
Dividends and miscellaneous profits		3,290,157
Total profits already realized		18,414,766
Debts receivable held chiefly by the San Francisco banks		6,500,000
Increased values of productive properties owned by Americans		11,735,464
Total gross profits		36,650,230

1. In the foregoing table, beginning with values delivered, the first item is the invoice value of our exports to the islands, as shown in the Treasury statistics for the nine years. It is the home value, and, since we are comparing San Francisco values with San Francisco values, freights are not added.

2. The second item represents what we have paid in the form of bills of exchange to settle the balance of trade against us. Since the Hawaiians export almost nothing to third countries, but do import considerable from them, it follows that they must draw upon shipments to the United States to pay for all they import from third countries. They have no other source of credit to draw upon. Hence turning to Hawaiian official statistics we find their total imports in nine years to have been $9,181,522. The freight and insurance must be added, and, as these are known to be about 10 per cent of the value, we get $10,099,674. Deducting $231,000, which is their total export to third countries in nine years, and which liquidated just so much of their indebtedness to third countries, we have $9,868,074 on merchandise accounts, which we must pay in bills of exchange drawn in San Francisco against Hawaiian account and in favor of third countries.

3. In further settlement of the balance of trade are coin remittances. In nine years the excess of coin shipped to Hawaii over coin received from Hawaii amounts to $2,222,181. Of this $1,000,000 was a silver coinage for the Hawaiian Government struck at the San Francisco mint, for which that Government gave its bonds for $1,000,000, which are now held in this country.

If we have given Hawaii any other consideration it must be in the form of obligations of some sort which do not appear in statistics. None such are known, and in a small community like the islands, where everybody's business is known to everybody else, it is hardly possible that if any appreciable amount of them existed it would not be known. As the Hawaiians are deeply in debt to the United States it is not likely that any such obligations of importance exist. This side of the exhibit is therefore as complete as present knowledge can make it. On the other side of the account we have:

(1) Value of Hawaiian exports to the United States, $51,294,764. This is the invoice value at Honolulu. As we are comparing San Francisco values with San Francisco values it is necessary to add freights and insurance. (The American consul at Honolulu requires invoices to state the values delivered, less cost of transportation.) This requirement, being a matter of indifference to shippers, is complied with. If