I07 6 COLOMBIA 



Railway. General depression was experienced in financial circles, and the economic 

 situation was regarded with some apprehension. The extent of the paper currency was 

 largely responsible for checking the influx of further foreign capital; and after many 

 discussions in the Chamber, the Parliamentary Committees and the Government 

 parties on April 24, 1912, agreed not to make any further issue of paper money. 



In August 1911 a new Ministry had been formed, with Sefior Ramon Gutierrez as 

 Premier, succeeding the Ministry which had been formed as recently as the previous 

 April. The new premier recognised the necessity of regulating the national finances, 

 and his first endeavour was to reduce the expenditure. By July ist the foreign debt of 

 Chile had, however, increased to 35,454,475, since somewhat reduced. In December 

 1912 the Government intimated its intention to raise a further internal loan for 5,000,- 

 ooo, exclusively destined to renovate the workshops and rolling stock of the State Rail- 

 ways and to double-track certain portions of the lines. Further revenue was also to be 

 raised by loans for the construction of harbours. 



The ordinary and extraordinary national revenue for 1911 amounted to 8,173,400 

 in notes, and to 6,517,200 in gold. The expenditure both ordinary and extraordinary 

 totalled 10,215,300 in notes and 4,558,200 in gold, thus showing a deficit of 915,000 

 in paper and an excess of 837,200 in gold. The addition of these balances to the cor- 

 responding figures of 1910 gave the total result, at the end of 1911, as a deficit of 4,320,- 

 600 in notes, and an excess of 1,426,200 in gold, the net deficit being 2,890,500. The 

 year 1912 opened with a deficit of $66,265,939, to which was added a further sum of 

 $5,480,883 corresponding to interest paid to the Bank of Chile. The total amount of 

 deficit thus came to $71,746,818. The year's (1913) working was expected to show a 

 deficit of $41,452,970 in the absence of the rigid economies recommended. If these 

 should, however, be exercised, the financial year seemed likely to close with a surplus. 



On April 10, 1912, the Chamber approved a law regulating the framing of the Budget 

 in such a way as to prevent the expenditure exceeding the receipts. The recommenda- 

 tion, however, proved ineffective, the expenditure being maintained at a high rate, 

 and exchange fell with disconcerting rapidity. 



The Chilean Railway over the Andes from Arica to La Paz (Bolivia) was completed 

 on March 4, 1912, having been commenced in June 1909. The distance is about 270 

 miles, 24 of which are constructed on the rack-system. On December 7, 1912, Govern- 

 ment engineers completed the plans for a new trahsandine railway through the Maipo 

 River Valley, placing Santiago de Chile, the capital of Chile, in direct communication 

 with Buenos Aires, the capital of Argentina, the journey to occupy but thirty hours. 



On August 8, 1912, the Rivera-Figueroa Ministry resigned, and a new Cabinet, com- 

 posed of Senores Jara, Rivas, Gana, Vicuna, Villegas-Echiburu, Vienna-Subercaseaux, 

 Oscar Viol, and Hunneus was formed. 



The nitrate industry was very prosperous throughout 1912, prices advancing steadily: 

 the forward quotation for 1913 was 75. 6d. per quintal. On October 2nd the Govern- 

 ment offered for auction 600 hectares ( = 1500 acres) of nitrate grounds in the Province 

 of Tarapaca. The minimum price was is. for every 100 kilogrammes of nitrate in the 

 lots. The results obtained in the south of Pena Grande were so satisfactory, realising 

 $5, 414,102, l that the Government announced a further series of sales. 



COLOMBIA 1 



Colombia has an area of 438,436 square miles, and the population according to the 

 most recent estimate is 4,313,000, giving an average of 9.8 inhabitants per square mile. 

 Imports were valued at 3,405,127 and exports 3,525,030 in 1909-10. Imports from 

 the United States in 1910-11 were valued at $4,905,934 (U. S. currency) and exports to 

 the United States at $8,994,460; in 1911-12 imports at $5,748,859 and exports at 

 $11,219,481. The total public debt amounts to 3,444,634 (2,786,600 external, 

 658,034 internal). The total mileage of railways is 614 and that of telegraph lines 



1 Equal to J-. See E. B. vi, 700 el seq. 



