(e) Imports of Non-Dutiable Food.-Increase over 1905 of + £2,856,874.—Butter accounts for nearly half this increase, about 80,000 extra cwts. having been imported chiefly from Australia and Russia. £500,000 more has been spent in fish, chiefly in canned salmon from British Columbia. Lard has also greatly increased, 100,000 additional cwts. having been imported, chiefly from the United States, at an extra cost of £400,000.

(f) Imports of Metals and Manufactures thereof (other than iron and steel).—Increase over 1905 of +£2,311,234.-An increase due almost entirely to higher prices. These high prices are having so marked an effect on the index numbers that it is worth while recording the present position.

The chief benefit from this rise falls upon the Straits Settlements, which has received £750,000 more from Great Britain, the additional amount sent only being 1300 tons. Spain benefits in respect of lead (+ £219,000) and copper (+ £197,000). The high prices are, however, beginning to react on the demand, every item, except quicksilver, in the month of May showing a diminution in quantity imported.

(g) Exports of Coal.-Increase over 1905 of +£2,035,716.-This increase is not affected by the abolition of the export duty, which does not take effect until November 1, 1906. The increase consists of a large increase in quantity (+34 million tons). France has bought 1,250,000 tons more than in 1905, and Italy 800,000 tons more. Germany and Holland show decreases.

Shipping Clearances.-Concurrently with the growth of foreign trade the cargoes entered and cleared are increasing. The net increase in cargoes entered to May 31, 1906, is 1,931,000 tons, and in cargoes entered 832,000 tons. The percentage of increase is now greater in British ships than in foreign, the ratio being roughly 109 in cargoes entered and 2.1 in cargoes cleared.

VOL XVI.-No. 3.

2 A

The Direction of British Trade.-It is important to see what nations are increasing their trade with Great Britain. The figures are only available to March 31, 1906, and comparisons are given between this and the comparative period in 1905.

(a) Imports.-The marked feature is the return of the United States to the high position it previously occupied, the increase in the value of goods sold to Great Britain to March 31, 1906, being no less than £10,000,000. The other chief increases are from Canada (+£1,700,000), Egypt (+£1,300,000), and Brazil (+£1,100,000). The chief decrease is from Russia (- £1,700,000).

(b) Exports.-The country making the largest increase purchase of British goods is Argentina (+£1,900,000). Germany comes second (+£1,400,000), though in this connection it is necessary to remember that March 1, 1906, was the first day of the new German tariffs, and the increase may have been a rush of German merchants to stock their warehouses prior to the imposition of the higher duties. France is third, with an increased purchase of £1,000,000, and Australia fourth (+£900,000).

COMPARATIVE INTERNATIONAL TRADE-(i.) America. - In the export trade the neck-and-neck race between the United States and the United Kingdom continues, the United States being slightly ahead on March 31, 1906.

XXI. COMPARATIVE EXPORTS. UNITED STATES AND UNITED KINGDOM.
(3 months, to March 31, 1906.)

In imports there is, of course, scarcely any comparison yet, and the figures to date show that the States are scarcely succeeding in maintaining the spurt made during 1904 and 1905.

XXII. COMPARATIVE IMPORTS. UNITED STATES AND UNITED KINGDOM. (3 months, to March 31, 1906.)

(ii.) Germany.—The German figures have not yet been received by the Board of Trade. It is not possible, therefore, to publish the usual tables giving the comparative growth of British and German foreign trade.

WHEAT. (i.) General Position.-The statistics may now be taken up to the forty-sixth week of the cereal year (i.e. to May 12, 1906). Russia still maintains her lead as the chief exporting country, and her total export for the forty-six weeks has been almost identical with that of 1904-5 (i.e. 141,500,000 bushels). The American (i.e. United States of America and Canada) export maintains its position in the second place, and is still practically double the export of 1904-5 (119,700,000 as against 59,950,000 bushels). It is still, however, some way below the preceding years. Argentina has now risen to the third place (96,000,000 bushels), and the Danubian provinces come fourth (74,000,000 bushels). The total amount of wheat exported by all exporting countries continues to be very large, i.e. 486,000,000 bushels, an increase of over 63,000,000 bushels above the quantity exported in 1904-5. This fact, coupled with the large increase in British homegrown wheat, should have meant lower prices; but, on the contrary, they have risen (i.e. from 28s. 8d. per quarter on March 3, 1906, to 30s. 4d. per quarter on June 2, 1906). The cause of this is probably the increasing tendency on the Continent of Europe to substitute wheaten bread for rye bread. Germany, prior to the raising of the tariff, increased her import of wheat very largely; and so have Italy and Spain.

(ii.) British Purchases.-The present chief sources of the British wheat supply are shown by the following table :

XXIII. SOURCES OF BRITISH WHEAT AND WHEAT FLOUR SUPPLY (1906). (5 months, to May 31, 1906.)

The chief changes in the sources of supply in 1905 are (a) the fall in the supply from India, which now holds the sixth place instead of the second (1,887,000 cwts., as against 10,708,000 cwts.), and (b) the return of the United States of America from the fourth place to its normal position at the head of the list (13,500,000 cwts. as against 4,300,000 cwts.).

(iii.) British Consumption.-The total British home consumption may now be continued to June 2, 1906, which is the fortieth week of

the British harvest year. The notable feature continues to be the
marked increase of British home-grown wheat. The total sales show
a slight increase over 1904-5, and a very slight increase over 1903—4—
XXIV. BRITISH (HOME) CONSUMPTION OF WHEAT.

COTTON.-(i.) American Exports of Raw Cotton.-The American
Trade Returns for the nine months ending March 31, 1906, are
beginning to show the effect of the comparatively higher prices being
obtained. This will be seen from the following table :-

-

XXV. CASH VALUE OF AMERICAN EXPORTS OF RAW COTTON (1905-6).
(9 months, to March 31, 1906.)

XXVI. CHIEF DESTINATIONS OF AMERICAN EXPORTS OF RAW Cotton (1905-6).
(9 months, to March 31, 1906.)

(ii.) British Stock of Raw Cotton.-The stock of raw cotton stored
in United Kingdom is still greater than in 1905, but the maintenance
of the price above 6d. per lb. is tending to diminish the purchase of
material to replenish, the decreased import since January 1, 1906, being
104,178 bales.

XXVII. STOCK OF RAW COTTON STORED IN UNITED KINGDOM ON JUNE 6.

The value of the stock on March 1, 1906, was roughly estimated at
£13,500,000, so that the value has diminished to June 6 by £2,635,000.
This is a less diminution than is usual at this time of year, when the
cotton used is generally in excess of that imported.

(iii.) British Sales of Manufactured Goods.-The export sale of
cotton goods manufactured in Britain in 1906 to May 31 continues
to be of unprecedented magnitude.

XXVIII. EXPORT SALES OF COTTON FABRICS MANUFACTURED IN Great Britain.
(5 months, to May 31.)

£
26,857,000

29,819,000

32,594,000

XXIX. CHIEF DESTINATIONS OF COTTON FABRICS MANUFACTURED IN GREAT

SUGAR.-Prices have varied but slightly since the previous notes.
Cane sugar is now (June 2, 1906) 7s. 3d. per cwt., and beet 8s. Ord.
The reaction from the corner of 1905 is vividly set forth by the
following table :-

XXX. SUGAR IMPORTED INTO UNITED KINGDOM.

Thus, in the first five months of 1906, Great Britain has obtained
3,313,433 cwts. more sugar for £1,366,933 less money than in 1905.

BRITISH PRICES GENERALLY.-The general level of prices is con-
tinuing to climb uncomfortably high, the Economist's Index number
at the end of May being 2372. The rate of climb in the 1906 figures
may be gathered from the following table :-