Major Collins thought that these people would consume annually five dollars per head of American goods; Mr. Swan estimates two dollars per head. These goods would be paid for in silks, tea, rice, furs, skins, wax, fossil ivory, plumbago, tin, precious stones, naval stores, etc. It is said that the overland trade of North China to Russia now requires for its transportation a caravan line of 36,000 camels and bullocks, and 100,000 horses, and that the Siberian trade is as large as that of China. The tea sold at Novgorod amounts to $5,000,000 each annual fair. The caravan tea is preferred to the ship tea, which is said to be injured by the voyage through the tropics; another argument for the North American route.

Since Mr. Swan'sThe new railroad across Siberia to St. Petersburg. pamphlet, the news comes that the Russian Government is now actively engaged in building a railroad from St. Petersburg across Siberia to Vladivostock on the Japan Sea; and the expectation is general that this imperial power will seize Corea so as to bring the terminus of her railroad to Ninsen at the south point of Corea. All the great trade which will thus be developed is in addition to the existing trade of China and the Islands, and will probably swell the China, Japan and Russian trade to over $200,000,000, to which is to be added the Australian and Island trade, which already is, no doubt, over $100,000,000.

The American Pacific States have decisive advantages over all others in controlling the Pacific trade.Now comes the practical question, Who are to handle this vast trade of $300,000,000 annually? No one nation exclusively, of course. The Dutch and other small powers will have a little of it; but the only contest will be between England and the American Pacific Coast. England has the lion's share now, but this great nation will hereafter labor under too many disadvantages in its contest with America. America has the needful capital, material, pluck and energy, and enjoys certain decisive advantages, as, for example—1. In distance, which of itself would in this case decide the matter; 2. In the local production of certain staple articles which will be in great demand, and which England cannot supply so cheaply, if at all, such as lumber, meats, flour, canned goods, cheap cottons, and agricultural and other machinery, which, if not cheaper, can be more readily adapted to the wants of the market; 3. In possessing the back country of Eastern America, whereby the entire United States become tributary both ways to the Pacific commerce; to which may be added, 4. The ever-flowing river in the Pacific Ocean, flowing in a circle from Japan to the American coast and back—the famous Kuro Shiwo, or Japanese current; a current which gives a gain to every ship of twenty miles a day in distance; the current which brings the disabled Japanese junks to the American coast.

The half-way point on the Pacific side between America and England is the Malay Peninsula. This leaves even Australia and all of OceanicaAdvantage in distances. nearer to us than to England, and all of China, Japan and Siberia thousands of miles nearer to us. Hong Kong and Canton are the English headquarters in China, and yet our Pacific coast is 5,000 miles nearer to these than England is. It is also 6,500 miles nearer to Shanghai, which is a more important port than Canton, because of its greater nearness to the rice and tea producing sections. The advantages are still greater in respect to Peking, Japan, Vladivostock, the terminus of the projected Russian railway, and the entire country drained by the Amoor. Our commerce is now within thirty days of the coast of China, and will be in less than ten days when the fast mail and express and passenger steamers are launched. I insert a table of distances, which is full of significance.

ROUGH ESTIMATES OF DISTANCES.

MILES
Puget Sound to mouth of Amoor River3,900
" " " Vladivostock4,700
" " " Shanghai5,750
" " " Canton6,500
" " " Singapore8,100
" " " S. W. point of Australia9,550
San Francisco to Vladivostock5,200
" " " Shanghai6,100
" " " Canton6,800
" " " Singapore8,400
" " " S. W. point of Australia9,500
" " " St. Petersburg via Vladivostock9,700
St. Petersburg to Vladivostock4,500
San Francisco to Calcutta10,200
Liverpool to mouth of Amoor River13,550
" " Vladivostock 12,700
" " Shanghai 11,750
" " Canton 10,900
" " S. W. point of Australia 10,750
" " Singapore 9,300
" " Calcutta8,700

Liverpool and Puget Sound are about equally distant from west coast of the Malay Peninsula.

MILES
New York to Canton, via Puget Sound9,500
" " Shanghai " " 7,800 to 8,000

By this it will be seen that New York, by way of Puget Sound, is 1,400 miles nearer to Canton than Liverpool is, and nearly 4,000 miles nearer to Shanghai. Mr. Swan makes the distance from the Pacific coast less than I have given. It should also be noted that Puget Sound has the advantage of distance over San Francisco also.

Puget Sound has also the advantage over all competitorsAdvantage in productions. of being able to produce a large bulk of the materials for commerce in its own vicinity. In this report there will be a large array of facts concerning the present and future productions of Washington Territory, which will amply confirm and illustrate the above statement. The only real competitor of Puget Sound on the American coast is British Columbia, but British Columbia cannot vie with Washington Territory in the production of the materials of commerce, and Canada at large furnishes no such background as the United States.