While cotton goods, kerosene oil and flour are our chief exports to China, there is a growing demand for many other American products. The utility of the American locomotive has become so apparent that in 1899, engines costing $732,212 were sent to China and additional orders are received every few months. With the enormous forests bordering the Pacific Ocean in the states of Oregon and Washington, and with the development of cheap water transportation, there is a rapidly widening market in China for American lumber. Eastern Asia is too densely peopled to have large forests, and those she has are not within easy reach. Native lumber, therefore, is scarce and often small and crooked. That in common use comes from Manchuria and Korea. I was impressed in Tsing-tau to find that the Germans are using Oregon lumber and to be told that it is considered the best, and in the long run, the cheapest. Oregon pine costs more than the Korean and Manchurian, but it is superior in size and quality. The transportation charges to the interior, however, are a heavy addition. Manchurian pine can be delivered at such an interior city as Wei-hsien, via the junk port of Yang-chia-ko and thence by land, for twenty dollars, gold, per thousand square feet, which is considerably less than the Tsing-tau retail price for Asiatic lumber. Oregon lumber costs in Shanghai, thirty-two dollars gold, per thousand, but an importer estimated that it could be delivered at Tsingtau for twenty-five dollars gold per thousand in large quantities. The exports of the United States to China, according to the reports of Consul-General Goodnow of Shanghai, increased from $11,081,146 in 1900 to $18,175,484 in 1901 and $22,698,282 in 1902, while for 1904 they reached the total of about $24,000,000, a gain of nearly 125 per cent. since 1900 and of several hundred per cent. as compared with 1894. Meantime, the United States imported from China goods to the value of $30,872,244 in 1904, which is an increase of $14,255,956 over the imports for 1901. Silk and tea are the principal items in this trade, the figures for the former being $10,220,543 and for the latter $7,294,570, though of goatskins we took $2,556,541, wool $2,325,445, and matting $1,615,838. The United States is now the third nation in trade relations with China. This is the more remarkable when we consider the statement of the late Mr. Everett Frazar of the American Asiatic Association that in January, 1901, there were only four American business firms in all China. When our business men establish their own houses in China instead of dealing as now through European and Chinese firms, it is not unreasonable to expect that the United States will outstrip its larger rivals Great Britain and France, though, as I have already intimated, it is one thing to ship foreign goods to China and quite another thing to control them after their arrival, for the Chinese are disposed to manage that trade themselves and they know how to do it.