ECUADOR. 



287 



Man debt assumed by Ecuador. Up to the 

 year 1867 the interest was regularly paid on it, 

 but since then it is in default, although the 

 bondholders were content to receive only 1 

 per cent, per annum till the customs receipts 

 at Guayaquil should begin to exceed $400,000 

 per annum, 25 per cent, of the surplus to go 

 toward increasing the interest till it reached 6 

 per cent. Although since the pacification of 

 the country the customs receipts at Guayaquil 

 have swelled to an amount warranting 4i per 

 cent, per annum on the sterling debt, this clause 

 of the engagement has not been enforced hith- 

 erto, for political reasons; but since the ae- 

 n to power of Dr. Antonio Flores, the 

 new President, matters are taking a turn more 

 favorable to the bondholders. Tims the Execu- 

 tive issued, under date of September 10. a de- 

 cree inviting the council of foreign bondhold- 

 ers to appoint a commissioner with full power 

 to negotiate with the Government a reorgan- 

 ization of the debt on a mutually acceptable 

 The outstanding internal and external 

 indebtedness is triding, considering the re- 

 sources of the country, which requires the 

 currying out of public works, notably rail- 

 roads, all of which would be facilitated by an 

 upright, prompt financial policy. In response 

 to the decree named, the council of bondhold- 

 ers in London will delegate one of its members 

 to go to Quito and arrange matters if possible. 

 The actual income of the state in 1886 was 

 $5,107,992, and sufficed to meet the outlay. 



In April, 1888, the Bank of Ecuador ad- 

 vanced the Government $900,000 at 9 per cent, 

 interest per annum, the net income of the Guay- 

 aquil custom-house being pledged. Banks are 

 in a flourishing condition. Thus, the Bank of 

 Ecuador declared 20 per cent, dividend in 188G 

 and in 1887, the International Bank respect- 

 ively 10 and 12 per cent., the Anglo-Equato- 

 rian 8 and 12, and the Banco Hipotecario 15f 

 and 16 per cent. 



Army. The strength of the regnlar army in 

 1888 was 4. 730 file. 3,: J >20 thereof being foot, 

 1,060 artillery, and 350 horse ; there being four 

 battalions of infantry, two companies of artil- 

 lery, and one regiment of cavalry, all fully 

 armed and equipped, and the arsenals at Guay- 

 aquil and Quito well stocked with ammunition 

 and everything necessary, in addition to which 

 there were ordered from the United States 

 700 Remington rifles, and 100,000 cartridges. 



The National Guard was composed, in 1888, 

 of 76 battalions, 68 being foot, 2 artillery, and 

 6 horse, completely organized. 



Xavy. In 1887 Ecuador had only two men- 

 of-war, the "Cotopaxi" and the "Kueve de 

 Julio '' ; both are steamers, the former having 

 cost 11,500, and the latter 19,300. They 

 are new. unexceptionable in every respect. 

 In January, 1888, the new gun-boat ''Tan- 

 gurahua" arrived from England. 



Treaty. Prior to his return from Europe 

 Dr. Antonio Flores. then President-elect of 

 Ecuador, but at the time still minister at Paris. 



negotiated a new treaty of commerce and 



navigation between his country and France, 

 together with a consular convention, to take 

 the place of the treaty concluded at Quito on 

 June 6, 1843. The new treaty is to remain 

 operative to February, 1892, and the consular 

 ntion for ten years, dating from May 12, 

 1888, when both agreements were signed. A 

 separate agreement covered literary, artistic, 

 and industrial property, guaranteeing it to 

 citizens of either country. 



Railroads. On March '27, 1888, a company 

 was incorporated at Guayaquil, having for its 

 object the construction of railroads and other 

 public works in the republic. It acquired by 

 purchase from the original contractor, Mark 

 J. Kelly, the control over the Y.-iguachi-Duran 

 railway, then about finished, together with 

 that of the line from Yaguachi to Chimbo, and 

 the one from Chimbo to Sibambe. both in 

 course of construction. The company will 

 issue 8-per-cent. bonds, the interest to be paid 

 out of the salt monopoly secured, the first 

 bond issue being subscribed for beforehand. 



Ccumtrct. The exports in 1886 amounted 

 to $8,014.409, including $403,988 specie and 

 bullion, and 37,172,576 pounds of cocoa, worth 

 $6,505.201 : 2.973.346 pounds of coffee, worth 

 8321.121; India-rubber, $282,897; hides, 

 i55; vegetable ivory, $89,020; straw 

 hats, $23,680, the rest being made up by 

 oranges, pine-apples, and quinine-bark. The 

 American trade presents the following figures : 



The number of vessels that entered Ecuado- 

 rian ports in 1886 was 376. of which 185 en- 

 tered at Guayaquil alone (117 thereof being 

 steamers), without counting small coasters. 



Partial Tariff Modifications. Dating from Jan. 

 1, 1888, the following changes in the rates of 

 import duties became operative : Almanacho 

 and green plants to enter duty free : an addi- 

 tional cent per kilogramme to be laid on pota- 

 toes, rice, large stoneware vessels, timber, and 

 lumber ; two cents additional per kilogramme 

 on soda for washing, hand-pumps, iron and 

 steel rails and sleepers, iron tubes less ttan 

 0-12 metre in diameter if forming part of ma- 

 chinery, dye-woods, printing-paper; ten cents 

 per kilogramme : crude stearine, fancy water- 

 mugs, twine for sewing bags, marble ; fifty 

 cents per kilogramme: imitation silver or gold 

 plated jewelry, hats, caps; one dollar per kilo- 

 gramme: all other jewelry. 



Cocoa. There arrived at Guayaquil from the 

 interior for shipment abroad, in 1887, 334,267 

 quintals of cocoa, again- .' in 1886; 



244.724 in 1885, and '176,955 in 1884. From 

 Jan. 1 to Oct. 23, 1888. 254.000 quintals were 

 received at Guavaquil. against 3n5.i"iOO in 1887. 



Ivory-Xnte. There had been shipped abroad 

 from Guayaquil, in '.25 quintals of 



