BOLIVIA. 



83 



has never allowed her honor to be impugned, 

 it is but just, before quitting this subject, to 

 transcribe a few extracts from a letter pub- 

 lished in London on July 9th, over the signa- 

 ture, "A Bondholder Two Years resident in 

 Bolivia." They tend not only to corroborate 

 the statement referred to, but would seem to 

 show that Bolivian credit still stands high in 

 Europe : 



I do not wish to speak harshly of the Bolivian 

 Government. Assuredly it has been more sinned 

 against than sinning. To class this case with that 

 of Honduras, Costa Eica, etc.. would be obviously 

 unjust in the highest degree. The Bolivian Govern- 

 ment has neither required money for any other pur- 

 pose than that of the construction of the railway, nor 

 has it appropiated any of the money raised. The con- 

 tractors for the railway have failed to carry out the 

 undertaking. They are in default. As between the 

 bondholders and the Government, however, the 

 latter no doubt feels that the last dividend not hav- 

 ing been met, and the undertaking for the moment 

 abandoned, the bondholder has a perfect right to 

 what remains of the money, viz., the 600,000 in the 

 bank, and it will place no obstacle in the way of 

 the pro rata distribution thereof, should such be the 

 desire of the creditors. Bolivia is a country teeming 

 with wealth, with a population of three to four mill- 

 ions (?), hardly taxed at all, and yet showing a sur- 

 plus revenue ; * and it is quite within her power to 

 provide for the service of this small and only loan 

 that she has ever contracted, and that with the great- 

 est ease. Furthermore, I am of opinion that, after 

 refunding this money to the bondholders, she will 

 have no difficulty whatever in raising, in conjunction 

 with Brazil, all that is required for the railway, 

 be it one or two millions sterling, and on far less 

 ' onerous terms than the last. The railway will be of 

 the greatest possible benefit to botli countries, and 

 sooner or later it is sure to be made, as the people 

 of. Bolivia call aloud on their government for this 

 outlet to the Atlantic. 



The heavy extraordinary expenses, neces- 

 sitated by the rebellion hereafter to be referred 

 to, so depleted the Treasury that, almost 

 throughout the year, government employe's re- 

 ceived only small sums on account of their 

 salary. Among the laws passed by the last 

 Bolivian Congress of 1874 were those empower- 

 ing the Executive to call in all light money 

 (very abundant of late), and replace it with 

 coin of full weight, the state receiving but eight 

 per cent, for coinage. 



One more subject may here properly be re- 

 ferred to, as appertaining, though indirectly, 

 to the department of finance. This subject is 

 the long-pending and repeatedly-acknowledged 

 claim against Bolivia of Mr. J. H. Colton, of 

 New York City; a subject deriving peculiar 

 interest from the fact that the means taken by 

 the claimant for the protection of his interests 

 have led to the solution of the question wheth- 

 er a nation can intervene to enforce the pay- 

 ment of a debt acknowledged to be owed to 

 one of its citizens by a foreign government. 



From the report on the claim submitted to 

 the United States Senate by the Committee on 

 Foreign Relations, it appears that, in 1858, Mr. 

 Colton contracted with an authorized agent 



* See ANNTTAL CYCLOPEDIA, for 18T4, pp. 92, 93, where a 

 large deficit, rather than a surplus, appears evident. 



of the Bolivian Government, to engrave on 

 copperplate a map of the republic, and to 

 deliver 10,000 copies thereof for an agreed 

 sum of $25,000, of which $2,000 were to be 

 paid on the commencement of the work, and 

 the remainder on or soon after the delivering 

 of the maps. The map was duly completed 

 and the 10,000 copies delivered ; but, although 

 it appears that 2,000 maps were sold by the 

 Bolivian Government at $12 each, and 3,000 

 at $5, or a profit of $14,000 upon the whole 

 stipulated cost, the $23,000 remaining due to 

 Mr. Colton were not paid. It should be stated 

 that this indebtedness has never been repu- 

 diated by the Bolivian Government; on the 

 contrary, it has been recognized repeatedly, 

 and payment frequently promised ; and on one 

 occasion President Morales issued a decree for 

 its payment " out of the first funds from the 

 loan sanctioned by Congress in 1872." Weary 

 of waiting, Mr. Colton at last laid his grievance 

 before the United States Congress, and the fol- 

 lowing act, on the recommendation of the 

 Committee on Foreign Relations, was passed, 

 in March, 1875: 



AN ACT FOR THE EELIEF OF JOSEPH H. COLTON. 

 Be it enacted by the Senate and House of Repre- 

 sentatives of the United States of Amtrica in Con- 

 gress assembled : That the President of the United 

 States is hereby requested to call upon the Govern- 

 ment of Bolivia to make payment of the money ad- 

 mitted by itself to be due, with interest thereon,* 

 according to the decree of the said Government of 

 Bolivia of February 1, 1872, to Joseph H. Colton, for 

 maps engraved for that Government under a contract 

 made in 1858. 



As usual, no official returns of the foreign 

 trade were published in the last year ; but it 

 may safely be conjectured that, owing to the 

 troubled condition of the country, there has 

 been no increase in the imports over the value 

 estimated for 1874, namely, $7,500,000, of 

 which $5,500,000 through the Peruvian ports 

 of Tacua and Arica, and the remainder through 

 Cobija or Lamar. 



Mining industry has entered upon an era of 

 great prosperity in Bolivia. It is estimated 

 that 340,000 marks of silver are annually pro- 

 duced in the whole republic, which at the rate 

 of $10 per mark, gives $3,400,000. In a well- 

 known cutting called La Virgen, in Oruro, 

 where the principal lode, proving to be nearly 

 nine yards in width, had not yet been reached, 

 the yield for the year 1875 was computed at 

 60,000 marks ($600,000). 



In the matter of railways, the two most im- 

 portant events were the renewed decision on 

 the part of the Government to rescind Colonel 

 Church's concession,t and a proposal made, in 

 reference to the Caracoles Railway, by Mr. J. 

 M. Braun, representative of Mr. Henry Meiggs, 

 the chief clauses of which are as follows : 



The Government permits the Mejillpnes & Cara- 

 coles Kailway Company to transfer their contract to 

 Don Enrique Meiggs ; the Government, with the con- 

 sent of Don Enrique Meiggs, will appoint a financial 



* $41,588, principal and interest. 



t See ANNUAL CYCLOPAEDIA for 1874, 1878, and 1872. 



