num was used for permanent improvements that will ultimately be for the country's benefit. Exchange continued, with but slight variations, at the established rate of 16d. ($0.32 gold) for the paper milreis. CHILE view to enlarging their country's of the increasing income, will, to agricultural output and the markets some extent, neutralize this. What therefor. During the year the public money was borrowed from abroad school system of the Republic was so reformed that both secondary and higher education are under the control of a national board of education. A delegate from Brazil was sent by the government to the Congress of Races in London (July). In 1911 Brazil signed its twenty-ninth arbitration treaty, the largest ber of such international agreements as yet accepted by any one nation; Administration and Budget.—The the people are hoping therefore that new President of the Republic, electthe name of Barão Rio Branco, Min- ed to fill the unexpired term of his ister of Foreign Affairs, will be pro- predecessor, who died in Aug. (1910) posed for the Nobel peace prize. An in Germany, is Dr. Ramon Barros interesting feature having interna- Luco, inaugurated Dec. 23, 1910. In tional significance was the celebra- his message to the Congress, tion of the fiftieth anniversary of the foundation of the Deutsche Zeitung (Porto Alegre), the oldest German newspaper in South America. Agriculture. Agriculturally the country prospered. The coffee crop, which begins to be harvested in September and upon which much of the commercial success of the year depends, was up to expectations, but the valorization plan, which has so far been effective in limiting output and maintaining prices, kept the amount of coffee exported within the estimated limit of 10,000,000 sacks. The rice crop, which within recent years has increased in amount, was very satisfactory, and the State of São Paulo has begun to export this grain. Wheat, which is now grown in the State of Rio Grande do Sul, gave double the crop of the preceding year. So encouraging is this result, that there has been offered a premium for growing an improved quality of wheat and an increased quantity. The national government has continued its preferential tariff on some imports from the United States, and on wheat flour has placed this reduced tariff at 30 per cent. instead of the hitherto established 20 per cent. reduction. June 1, 1911, he called attention to a deficit in the finances of the country; the government then took practical steps to make the income and outgo for the year 1911 balance, and the budget was therefore fixed at 241,744,000 pesos paper, with 63,124,000 pesos gold (the paper peso is valued at $0.21, the gold peso at $0.365 gold), leaving a surplus of about 1,000,000 pesos paper. Much of the money expended from the public funds is applied to material and permanent improvements, such as the longitudinal railway and the harbor works, on which upward of $4,000,000 gold was expended in 1911. Public Works.-During the year, specifications for the improvements to the ports of Valparaiso and San Antonio were offered by the government for international competition, the allowance for these works being something over £3,000,000; they were opened in Santiago in July, and resulted in favor of the firm of Galtier for San Antonio only, no bids being received for Valparaiso. Funds for this purpose are supplied by a loan issued in Jan., 1911, in London, to the amount of £4,905,000. In April, contracts were let to English firms for two battleships of 26,000 tons, by which the Chilean navy will be strengthened. Finance. In financial matters Brazil has taken steps to overcome the deficit recorded at the end of 1910. Commerce and Industry.-ComAlthough there is probability of a merce was satisfactory during the deficit at the end of 1911, yet earnest year. While the foreign trade for measures of economy in expenditure, 1910 was the largest in the history with careful regard for conservation of the country, that for 1911 equalled it, and the nitrate interests were satisfactorily regulated. The coal-mining industry was advanced, and Chile, being the only country in South America to mine coal on a regular commercial basis, is trying to encourage its production. Railways. In regard to railways, much activity was manifested, for the extension of the longitudinal system southward to Puerto Montt was accomplished at the end of the year, the new approach to Bolivia through Arica was opened, and a concession for another trans-Andean line was granted. An instance of the progress made by the State railways was the order (Sept.) from United States mills of 10,000 tons of rails. Minor Events.-In Sept. Admiral Coni, president of the Chilean Naval Commission, was sent to the United States to inspect the navy and to study methods of target practice. On July 10, King George (of England) decided the famous Alsop case, long under negotiation between Chile and the United States, the payment to the claimant being set at £187,000, and Nov. 13 Chile paid through the U. S. Dept. of State $966,600 gold. In Dec., 1910, the Chilean Minister to the United States died very suddenly in Washington, and by courtesy of that government his body was carried officially to his native land in the U. S. S. Delaware. This friendly act was cordially recognized in Chile as a token of sincere regard from the northern republic. A new Minister was subsequently appointed and received in Washington, June 27. A severe earthquake was felt (September) in the northern provinces of the country, resulting in considerable damage and many deaths. A local outbreak of the Peru-Chile difficulty took place during June. It related to the authority to hold mass in the churches of the territory in dispute between the two countries, but no serious consequences resulted, although the people showed intense excitement. COLOMBIA Administration.-The present President of the Republic, Carlos E. Restrepo, was inaugurated Aug. 7, 1910, as constitutional executive for a term of four years. He was the candidate of the liberal party and was elected from Antioquia, the capital of which is Medellin, this being the first time that that part of the Republic has been in power. Modern, in distinction to conservative, methods of conducting the government have characterized the progress of the country during the year, on that account. In Feb. a general election was held for local (provincial) legislatures, and later for the national congress. The result demonstrated the people's confidence of the administration and the support of the authorities. One fact was made clear, that the outlying Departments (States) desire a more independent relationship to the central government than has hitherto existed. In the closing months of 1910 a special representative from Panama visited Bogota in the hope of receiving recognition for the new Republic, but the mission was fruitless. Budget. The budget for 1911 was passed by the national assembly, expenses being figured at $8,937,688 gold, and revenue estimated at $9,779,500 gold. This is in line with the expressed economic policy of the administration, which is making persistent effort to adjust the finances of the country so as to obtain the confidence of foreign investors. A loan of £300,000, guaranteed by custom-house funds, was negotiated in Paris. Industries. On April 16, under President Restrepo, the first Agricultural Congress of Colombia was opened. Delegates from all sections of the country were in attendance, and there was indication that progressive ideas in this branch of industry were gaining ground. A real industrial revival is reported, and exports of coffee, hides, rubber, gold and silver with other metals, are increasing. Success has followed the investigation of the oil fields of the Tubara district in the Province of Baranquilla, on the north coast. The quality of the oil is excellent and it is commercially available. A territorial change was effected in Colombia by an executive decree; the Province of Arauca was separated from the jurisdiction of the Depart- that unprejudiced light, and are ment of Boyaca, and will be gov- therefore omitted from this résumé. erned by a special commission. A National School of Mines was organized, to be located in Bogotá. The diplomatic and consular representation was reconstructed on civil service lines. COSTA RICA Debt.-No change in the government is to be noted in 1911. On a contract made Dec. 7, 1910, called the Fernandez-Keith agreement, approved Jan. 11 by the bondholders, and by the National Congress of Costa Rica, Feb. 23, signed by the President, Ricardo Jimenez, March 1, the foreign debt was refunded into bonds amounting to £1,617,200 (16,899,740 colones, one colon equalling $0.465 U. S. gold). The amount of refunding bonds actually issued was £1,621,600 ($7,880,976 U. S. gold) in exchange for foreign obligations. These are to be known as the Consolidated Gold Bonds of 1911, and are payable on or before Jan. 1, 1958. Central American Court of Justice. -The new seat of the Central American Court of Justice, for which Mr. Carnegie again contributed a fund of $100,000, after the destruction of the original building at Cartago, has been officially removed to the capital, San Jose. Finance.-Of financial progress much demands notice; the so-called Revolution 6 per cent. bonds amounted originally to $2,196,585, of which sum $1,464,585 has been paid during the past two years; the balance, $732,000, falling due Oct. 1, 1911, was ordered cancelled on that date through the New York bank of Speyer & Co. In other ways the national debt was reduced by $3,465,085, leaving the total less than it was as reported April 3, $62,083,100. In Havana itself, the municipal budget as approved amounted to $3,936,566, all of which was applied to the capital of the Republic, but as this is less than the revenue of the previous year, there is no doubt of a surplus. Public Works and Education.The census figures show 2,161,622 inhabitants at the beginning of the year. Public works were continued in all branches of the government, one of the most important being the quarantine station (Cayo Duan) at Santiago, which is thus preparing itself for the increased traffic sure to come on the opening of the Panama Canal. In the post-office (514 stations in 1911) advantageous progress was made; the schools had an attendance of over 175,000 pupils, and new buildings were erected to accommodate them; school savings banks were creRailways. The railway between ated with satisfactory results, and San Jose and Puntarenas on the Pa- long-distance telephone connection cific coast was formally opened to was established between Havana and traffic on Jan. 14. This line (67 many parts of the island. Plans for miles) was built and is to be oper- a zoological park in Havana, patated by the government, indepen- terned after that in New York City, dently of other railways in the Re- were perfected, and a new Cuban public, but it forms the western por- White House was authorized, for tion of a transcontinental system, in which plans were accepted, and $985,connection with privately owned rail- 000 toward its construction approways, over which freight and pas-priated in 1911. Oct. 10, two naval sengers can be carried from one ocean to the other in less than 24 hours. CUBA Politics. As President Gomez stated in his message early in the year, "the problems of the Republic have become economic rather than political." Whatever local disturbances may have occurred during 1911 have no real significance, looked upon in vessels, the Patria, a schoolship, and the Cuba, a cruiser, were launched in U. S. yards. Agriculture and Fisheries.--Agriculture, the mainstay of the country's prosperity, was much advanced during the year. A commissioner was sent to the United States to purchase thoroughbred stock for breeding purposes in the six government experiment stations, and diversified farming was given particular encourage ment, while expert study was ap plied to the great crop interests. A national board of fisheries was created, to have charge of all matters relating to the waters of Cuba. The sugar crop for the crop year ending in Sept., 1911, approximated 1,500,000 lb., and that for 1912, now planted, should reach 1,900,000 lb., if the outlook holds. Tobacco reports estimated the year's crop at not far short of 200,000 bales, with a range of higher prices. Raising the "Maine."-The United States Congress had appropriated in 1910 and 1911 $650,000 for the removal of the battleship Maine from Havana harbor, and late in 1910 work was begun; cofferdams were erected around the wreck during the summer, and the hull was thus exposed. Many bodies of those killed at the time of the explosion were recovered, and the internal condition of the vessel was examined. Late in November it was decided that an external explosion had caused the disaster. (See also XXXII, Civil Engineering.) DOMINICAN REPUBLIC Official Name.-The official name of the nation is the Dominican Republic-República Dominicana-and not Santo Domingo, which is the name of the capital city only. Confusion must be avoided also between this independent government and the little West Indian island called Dominica, a territorial possession of Great Britain. Assassination of President.-Ramon Cáceres, the President, was shot (Nov. 20) and died in the American Legation. No great political disturbance resulted immediately, but U. S. Minister Russell was hurried to Santo Domingo from Washington. Señor Victoria was chosen (Dec. 2) provisional President. Boundaries.-A boundary dispute with the Republic of Haiti (on the same island) threatened, late in 1910, to lead to trouble, but peaceful arbitration of it was brought about by offers from the United States (May 3), and the decision will be left to the Hague. Industries and Finance.-The year 1910 was the most prosperous one in the history of the country, and 1911 promised to duplicate it. Commercially there was no set back, and agriculture-sugar and cacao-the staples of national industry, returned good crops. The budget for the fiscal year 1911-12 estimated the revenue at $4,257,000 and the expenditures at $4,256,804. Payment on the foreign debt was punctually made. A national bank in Santo Domingo was organized by United States capital; a School of Agriculture was opened; a national medical congress held; new railway lines were opened and surveys for others made; steamship communication was increased; considerable street paving and similar municipal improvements begun, and other substantial progress made. Bananas are becoming important in exports. ECUADOR Administration.-On July 13, 1911, the President, Eloy Alfaro, felt obligated to resign for the few remaining weeks of his term, his successor, Emilio Estrada, was constitutionally inaugurated Aug. 31, his election having been effected earlier in the year. Estrada died suddenly Dec. 22. Until Sept., 1912, when Congress meets, the office will be provisionally held by Carlos Freile, President of the Senate, although elections are to be held immediately. The proposed lease of the Galápagos Islands to the United States was refused by the government. Sr. Abelardo Moncayo was appointed in Aug. as Minister from Ecuador to the United States. A National Naval School was established in Quito. Industries and Finance.-In commercial and agricultural matters the country enjoyed continued prosperity. Cacao shipments were satisfactory, general crops yielded well, and coal, which may prove available, was discovered. The service of the railway between Guayaquil and Quito (297 miles) was improved, while advance was made on the new line under construction by a French company, from Bahia de Caraquez to Quito (186 miles). Financially the Republic felt somewhat embarrassed, for a deficit from 1910 had to be assumed, but severe methods of economy were put into practice by the Government, and it was hoped that by the end of the year the difficulty would be overcome. On Sept. 24 a heavy earthquake did serious damage in the city of Riobamba, at an elevation of about 9,000 feet, about 85 miles from Guayaquil. The ancient town was destroyed in 1797. Oct. 22 sanction was given for a contract of $9,000,000 to clean the port of Guayaquil. GUATEMALA Administration.-Manuel Estrada Cabrera, who had in 1910 been reelected for another term, resumed the Presidency of the Republic on March 15, 1911. In a message (March 1) he announced that negotiations were on foot for refunding the national debt. Railways. Jan. 1, there convened in Guatemala City the third Central American Conference. (See V, International Relations.) The Guatemalan section of the Pan-American Railroad was begun late in 1910 and work progressed during the year. When this is finished, and the government is eager to assist this industrial enterprise, an uninterrupted connection will be established between the city of Washington and that of Guatemala. A Central American Press Association was formed in the capital in 1911, its object being to modernize newspaper conditions in Central America on an economical basis. Budget. The budget for the fiscal year ending June 30, 1912, fixes the expenditures of the nation at 37,417,217.12 pesos (a peso fluctuates considerably, and varies from $0.10 to $0.07, gold); an endeavor will be made to meet this by the normal income of the government. HAITI Politics. A political disturbance in the first half of the year led to the departure from the country of General Simon (Aug. 4), and the elevation to the Presidency of Cincin natus Leconte, Aug. 16, 1911. The boundary dispute with the Dominican Republic at the end of 1910 was referred to the Hague. (See supra, Dominican Republic.) Industries and Finance.-The budget for the fiscal year 1911 was approved at $3,279,858 (gold) of expenditures, the income being supposed to balance that amount. A temporary loan of $600,000 from New York bankers was negotiated. A National Bank at Port-au-Prince was inaugurated March 8. American concessionaires intending to build a railway across the country and to begin other industrial matters were active in making preliminary surveys from April 18 on. In Port-au-Prince and Cape Haitien electric light and power were supplied by modern plants under concessions held by United States companies. The government contracted for a national theater in Port-au-Prince. October 6 a severe earthquake shook Port-au-Prince early in the morning, creating a panic, but causing no particular damage. HONDURAS Provi Political Changes.-The sional President of the Republic, Francisco Bertrand, was inaugurated March 28, 1911. This was the result of a revolution earlier in the year directed against the administration of former President Dávila. Puerto Cortez was captured, the interior was found to be weak, and on March 19 a conflict took place in which government troops were beaten; the change was effected immediately thereafter, but was accomplished by arbitration between the opposing parties, without bloodshed. Retiring President Dávila, who delivered an address of greeting to President Bertrand, emphasized this point as a certain step in advance over previous Latin-American political revolutions. Manuel Bonilla was elected President Oct. 29. Finance.-Jan. 10 a convention was signed with the United States (not yet ratified, see V, International Relations) by which the foreign debt of the Republic is to be financed, at a value of $10,000,000, in the United States. A census was taken December |