COSTA RICA. 



225 



ing, to liquidate the whole public debt, amount- 

 ing to about $3,000,000, of which $2,895,000 

 were internal. The Costa Rica Government con- 

 tracted in 1872 a loan of 2,400,000 in London, 

 at the house of Knowles & Foster, at 7 per 

 cent, and at the rate of 82 per cent, exchange. 



The national income and expenditure for the 

 month of September, 1872, amounted respec- 

 tively to $289,826.91, and $249,919.06, leaving 

 a surplus of $39,707.85. 



In addition to the steamers of the Panama 

 Railway Company making tri-monthly trips be- 

 tween Panama and all the Central American 

 ports on the Pacific, the Pacific Mail Steam- 

 ship Company's steamers plying between Pana- 

 ma and San Francisco now touch once a month 

 at Punta Arenas, a circumstance regarded as 

 very important, it being presumed that San 

 Francisco, before long, will be the market for 

 the major part of the coffee of Costa Rica and 

 Guatemala, the production of which is rapidly 

 and steadily increasing. 



One of the most important events, if not the 

 most important, that has ever occurred in Costa 

 Rica, was the commencement of the work on 

 a railway to connect the capital, San Jose", with 

 the Atlantic coast, where an important port 

 (Limon) is about to be opened. This line, 

 120 miles in length, will afterward be extended 

 to the Pacific. A telegraph from Cartago to 

 Punta Arenas is constantly in operation, and 

 the Costaricenses have already begun to appre- 

 ciate its usefulness. The two banks in the capi- 

 tal, the National and the Anglo-Costa Rica, 

 discount business paper freely, at the legal 

 rate of interest, 12 per cent., to which rate the 

 National Bank is restricted, while with the 

 other the rate is optional. 



In the early part of the year, the impression 

 among the other Central American states 

 was that, notwithstanding the great benefits 

 likely to accrue from the railway, a deficiency 

 of food might follow the sudden increase of 

 the population, consequent upon the import 

 of a large number of laborers. 

 ^ The introduction of fire-arms and ammuni- 

 tion was prohibited in January, until further 

 notice. Dr. Lorenzo Montufar was appointed 

 corresponding member of the Seal Academia 

 of Madrid. The gold-mines of Aguacate were 

 expected to yield $10,000,000. 



A temporary prohibition was laid upon the 

 extraction of India-rubber in the national for- 

 ests, and its exportation to Nicaragua, which 

 measure was followed by reprisals on the part 

 of the Government of the latter country, whence 

 the exportation of cattle to Costa Rica was 

 forbidden. An interview between the Presi- 

 dents of the two republics resulted, however, 

 in the restoration of cordial relations. In 

 February a treaty was made with Guatemala, 

 the object of which was to draw still closer 

 the bonds of friendship which unite the two 

 countries, and to contribute to maintain and 

 render more uniform the liberal character of 

 Central-American policy. 



VOL. XII. 15 A 



Such was the prosperous condition of the 

 treasury, that the Government increased by 

 about 25 per cent, the salaries of all the offi- 

 cial employe's ; besides which, and the dis- 

 bursement of $400,000 for internal improve- 

 ments, there was still a surplus of $300,000 

 above all claims ; Costa Rica bonds stand 

 very favorably, and the prospects of the coun- 

 try are hopeful and encouraging on every side. 



The question of boundaries with Nicaragua 

 was still the subject of an important discus- 

 sion in March, and some unpleasant feeling 

 was awakened by the refusal by Nicaragua 

 to allow Costa Rica vessels to navigate Lake 

 Nicaragua ; in case this policy should be per- 

 sisted in, the Costa Rica Government would 

 close the Colorado River to Nicaragua, that 

 river being the chief outlet from San Juan to 

 the ocean. 



A telegraph was to be established from Car- 

 tago to the new port of Liinon. The great in- 

 sufficiency of laborers to carry on the various 

 public works was, and is still, a cause of much 

 anxiety to the Government. Some econo- 

 mists recommended the importation of coolies, 

 and emigration agents have been established 

 in most countries in which Costa Rica has con- 

 sul or representative. The Government hav- 

 ing consented to the introduction of Chinese 

 laborers, a leading commercial house in San 

 Jos6 was appointed, and received special 

 privileges for carrying out the scheme : the 

 first draft of 500 coolies was expected to arrive 

 by the end of the year. A rupture between San 

 Salvador and Honduras being apprehended, 

 President Guardia addressed a note to the Gov- 

 ernment of the former republic, saying that it 

 was desirable, before precipitating hostili- 

 ties, to await the friendly intervention of the 

 sister states, adding that it mattered little if a 

 few of the Spanish-American republics were 

 at peace, because, in the eyes of foreign nations, 

 revolution and disturbance in one threw dis- 

 credit upon all. 



The ground destined for the port of Limon 

 was to be distributed in lots to those who wished 

 to build thereon, and do so within a certain time 

 after entering into possession. The forma- 

 tion of a great immigration company, to be 

 called the Talamanca Company, was contem- 

 plated. One of its purposes also is to exam- 

 ine into the vegetable and mineral produc- 

 tions of that almost unknown region which lies 

 between the uninhabited parts of Costa Rica 

 to the south and the border of the United States 

 of Colombia. It was the mines of this region 

 that gained for Costa Rica the name she is 

 known by. 



Two nominal loans of $500,000 had been 

 obtained in England for the railway. 



In May Costa Rica declared the project of 

 the canal treaty with Nicaragua null and void, 

 and the feelings between the two Governments 

 were neither cordial nor united. 



A new town was founded in May, in the 

 midst of great festivities, notwithstanding the 



