Puget Sound has also the advantage over all competitors 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. [Sidenote: Coastwise trade.] It will, of course, not be overlooked, that in the great coastwise trade which the Pacific States have and must always have with each other, they will minister to each other's prosperity. And here it will be shown that Puget Sound will have the advantage in supplying the wants of others. [Sidenote: South American trade.] In addition to these is the foreign trade along the coast of British Columbia, Mexico, Central America, and all the Pacific States of South America. Chili is a prosperous State. She has nearly doubled the volume of her trade in ten years. From 1874 to 1883 her exports went up from $32,000,000 to $73,000,000, and her imports from $35,000,000 to $50,000,000. The United States imports over $4,000,000 of goods from the Pacific side of South America, and exports about $8,000,000 to these states. England, however, gets the most of the West South American trade, so that here again we must enter the lists with Britannia. Already the contest has begun, and our Pacific States must bear off the palm sooner or later. [Sidenote: Large existing trade.] Thus it is evident that a vast field of commercial enterprise is wide open to the people of Washington Territory as well as to Oregon and California. And our commercial statistics show what handsome progress has already been made. Taking both exports and imports, there is already a business of $80,000,000 done by the seven Pacific ports of entry. San Francisco is now far ahead of the others, and this city has nothing to fear from any other port except Puget Sound, which will gain upon her rapidly and ultimately surpass her. Washington Territory has all that California has on which to trade, and a great deal besides; and has the advantage of position. When our commercial statistics were made up, Puget Sound had no direct railroad communication with her own back country east, much less a transcontinental line. A very different story will be told a few years hence. I here insert a table of summaries which show that the commercial revolution is now in operation.