I07 8 COLOMBIA 



During the regime of General Valencia efforts were made to restore the credit of the 

 country, which generally remained under perfectly peaceable conditions. Great 

 monetary stringency nevertheless was experienced, and towards the end of November 

 1909 it appeared doubtful whether the coupon due upon the Foreign Debt would be 

 paid. A few days however .before the time expired, a -private firm in London, holding 

 considerable interests in Colombia, found the necessary balance, and the coupon was 

 duly met. Since then, payments have been made with more regularity. 



Railway progress continued slowly; a passenger and freight service' was established 

 between the capital of Bogota and the Magdalena River port of Gerardot. The agri- 

 cultural industry of the country also advanced^ and at the end of 1909 it was estimated 

 to contain 4,000,000 head of cattle. 



Diplomatic negotiations with the United States respecting compensation for the 

 loss of Panama, which had been initiated by ex-President Reyes while serving as 

 Special Ambassador at Washington in 1906, were definitely broken off. ' The United 

 States Legation was stoned by a mob on March 8, 1910, but the Minister, Mr. Northcott, 

 was uninjured. An anti-American sentiment continued to manifest itself, and on 

 March 22nd some Englishwomen, named Martin, being mistaken for Americans, were 

 mobbed and ill-treated. 



In April 1910 a popular outbreak occurred in Bogota against Peru, the Legation being 

 attacked by a mob incited by a proclamation issued by the President of Ecuador (General 

 Eloy Alfaro) soliciting Colombia's aid against Peru on account of frontier disputes. 



On July 15, 1910, Senor don Carlos E. Restrepo was elected Constitutional President 

 by Congress, to serve for the four-year term 1910-14. Financial stringency was still 

 experienced, and the 'Government laboured under difficulties. Strict and effective 

 economies, however, were, for the first time, introduced, and the revenues were officially 

 reported to show a surplus. A further limited amount of foreign capital, mostly from 

 the United States, found its way into the country, and among other industries which 

 were thereby developed was that of banana-cultivation, while cattle-breeding upon a 

 more definite basis, and the establishment of packing-houses, was initiated. In this 

 year the President invited a Military Mission from Chile to establish schools, and to 

 reorganise the Colombian Army. 



The Centennial Celebration took place between July 20 and August 7, 1910, when 

 the national fetes were attended by delegates from all parts of the world. 



The financial condition of the country became steadily worse in 191 1, and it appeared 

 from the President's address to Congress in July that " the country was starving itself 

 in order to meet the obligations upon its foreign debt." All classes of officials were 

 without the payment of their salaries, and this extended to a portion of the army and 

 police. The estimated revenue was $9,779,300 gold (1,955,900), and the Assembly 

 voted expenses to the amount of $11,768,450 gold (2,353,690). In accordance with 

 Laws 33 of 1892 and 59 and 83. of 1910 the Government suppressed several official 

 posts, reduced salaries and diminished other expenses by a total of $2,830,761 gold 

 (566,152). A contract was awarded to an English firm for a new silver coinage, equal 

 to 50,000. The long-outstanding dispute between the Government and the Pacific 

 Steam Navigation Company was settled, and a new postal contract was entered into. 



In March 1912 the relations between the United States and Colombia threatened to 

 become further strained, in connection with the projected visit to the Latin-American 

 States by Mr. Philander Knox, the United States' Secretary of State. The Colombian 

 Minister at Washington, General Pedro Nel Ospina, addressed a strong letter to the 

 Assistant-Secretary of State at Washington (Mr. Huntington Wilson), stating that 

 " in his opinion the visit of Mr. Philander Knox to Colombia would not be welcome." 

 Although the Minister declared later that " he was authorised by his Government at 

 Bogota to make this statement," he was recalled at the request of the Washington 

 Government, being replaced by Senor Don Julio Betancourt. A Treaty of Amity 

 between Colombia and Bolivia was signed at La Paz on March 2ist. 



Severe and prolonged drought in the early months of 1912 was experienced 



