1070 BOLIVIA 



of the leading statesmen of the Republic, died at the age of 75 on September nth, 

 being succeeded by Colonel de la Serna. 



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BOLIVIA 1 Hi 



Bolivia has an area of 708,195 square miles, and the population according to the most 

 recent estimates is 2,267,935, giving an average of 3.38 inhabitants per square mile. 

 Imports were valued in 1910-11 at 5,837,141 and exports 8,263,117. Imports from 

 the United States in 1910-11 were valued at $891,624 (U.S. currency) and exports to the 

 United States at $327; in 19 11-12, imports at $991,525 and exports at $9,884. The public 

 debt amounts to 1,752,291 (1,500,000 external, and 252,291 internal). The mileage 

 of railways is 869, and of telegraph lines 3,109. The army has a strength of 52,500. 



A Commercial Treaty between Bolivia and Peru was signed June i, 1906, and the 

 Customs Tariff Act of December 31, 1005, came into force that year. The monetary 

 system was reformed, providing for a gold standard (finally adopted on Dec. 31, 

 1908); the national credit improved, and the system of taxation was revised. Conces- 

 sions for new railways,' averaging 836 miles, were granted to an American Syndicate. 

 New mining regulations came into force April 2oth. On December i6th the interest on 

 unpaid licences was reduced to 9 per cent per annum; the law of October 1890 and article 

 69 of the mining rules and regulations of October 28, 1882, were also modified. 



The financial resources of the State were increased during 1906 by the payment of the 

 Brazilian and Chilean indemnities, approximately $14,000,000, being used exclusively 

 in railroad construction. Treaties were signed with Brazil for the verification of the 

 River Verde and the demarcation of the boundary line; it was agreed to extend over the 

 period of one year the negotiations of the arbitration. tribunal created for the purpose. 

 A dispute arose between the Government and the Holy See, because of the adoption of 

 an amendment to Article 2 of the Constitution, and a law abolishing ecclesiastical privi- 

 leges and the establishment of civil marriage. Finally, Bolivia withdrew her diplomatic 

 representative from Rome. 



On June 20, 1907, a new Land Law, comprising 70 articles, was introduced. 



Improvement in the value of farming lands took place in 1908, the increase in prices 

 since 1903 amounting to nearly 50 per cent. On August 6th the 4-years' term of Presi- 

 dent Ismail Monies ended, when he should have been succeeded by the President-Elect 

 Dr. Fernando E. Guachalla, formerly Bolivian Minister to the United States; he how- 

 ever died in July. Senor Monies continued in office until August 1909, when he was 

 succeeded by Senor Eliodoro Villazon, elected to the chief Magistracy for the 4 years 

 ending August 6, 1913. Important economic measures were enacted to further the de- 

 livery, of native products at the Pacific coast ports; the unification of the railway 

 systems of the Republic, extending to about 400 miles of main line, was determined 

 upon. A commercial treaty was signed with Germany, to last for ten years. 



For the years 1909-10 the financial obligations of the Republic were met, despite loss 

 in revenues, from Custom House receipts. A loan, amounting to 1,500,000, raised in 

 Paris (Nov. 1910), the second foreign indebtedness contracted by Bolivia (and out of 

 which the 500,000 borrowed in 1908 was to be repaid), was arranged; including princi- 

 pal and interest upon the Home Debt, and upon the 400,000 Morgan Debt (Dec. 1908), 

 the total funded debt of the Republic amounted to a little over 1,700,000. The Bud- 

 get account showed a deficit of 7,553,996 bolivianos (silver), 2 although the Presidential 

 Message had estimated a surplus. 



In January 1911 the establishment of a National Bank was authorised, with a 

 capital of 2,000,000, one-half contributed by the Government, the remainder by United 

 States financiers. The Mercantile Bank and Banco Francisco Argandona respectively 

 increased their capitals to 1,000,000. Oh July 1 5th the Government sold to the Peruvian 

 Corporation for 374,912 the roi kilometres of the Guaqui-La Paz Railway. 



Early in 1911 a new Cabinet was formed, and an extra Session of Congress was sum- 

 moned for the purpose of discussing the Chilean Protocol concerning railway guarantees; 



1 See E. B. iv, 166 et seq. * Boliviano silver =253. 



