GUATEMALA. 



375 



home-debt bonds, for the gradual redemption 

 of these. The interest, meantime, was reduced 

 from 9 to 6 per cent; and the bondholders 

 agreed to advance to the Government 10 

 per cent on the bonds, whereby the national 

 Treasury would benefit by an accretion of 

 $200,000. As a proof of the stringency of the 

 times in Guatemala, however, it may be stated 

 that the payment of the monthly drawing of 

 the National Lottery for August was post- 

 poned until September 15th, a circumstance 

 up to that time unprecedented in the four 

 years of the existence of the institution. 



The exports from Guatemala for the year 

 1881 were of the total value of $4,084,000 ; 

 and the imports of the total value of $3,665,- 

 000. The coffee sent out of the country was 

 of the value of $3,645,220; and other minor 

 staples were represented by the following fig- 

 ures: hides, $106,879; wool, $48,000; India- 

 rubber, $75,271; cochineal, $45,077; specie, 

 $117,187. On comparing these results with 

 those for 1878,* a marked decrease in some of 

 the shipments will be observed in the later of 

 the two years. The cochineal exported in 

 1881, for instance, shows a value of but $45,- 

 077; while that shipped in 1878 was of the 

 value of $220,000. Again, in 1878, there were 

 sugar and indigo exports of the respective val- 

 ues of $110,600, and $1,300; and these com- 

 modities do not figure at all among the exports 

 for 1881. Indeed, a period of general commer- 

 cial depression seems to have set in for Guate- 

 mala, in common with other Spanish- American 

 countries. In regard to coffee, for example, 

 the chief staple of export, Guatemalan shippers 

 exclaim that the present low price of that ar- 

 ticle in all the markets of the world has com- 

 pletely demoralized business, causing the ruin 

 of many and hampering all. Until either coffee 

 returns to its normal value, or other agricul- 

 tural products now being cultivated begin to 

 bring in fresh wealth, there is little hope of a 

 return to really prosperous times. 



In 1881 the number of vessels entered at 

 the several ports of the republic was as fol- 

 lows : 133 steamers, of an aggregate of 202,242 

 tons ; and 73 sailing-vessels, of an aggregate 

 of 16,991 tons. The clearances were approxi- 

 mately of an equal number. The railway from 

 San Jose 1 , the principal port of the republic on 

 the Pacific coast, to the capital, has been in 

 operation for nearly two years from the first- 

 mentioned point to Escuintla ; and work on 

 the remainder (from Escuintla to Guatemala 

 city) has been carried on, though not uninter- 

 ruptedly, ever since. The Guatemala Central 

 Railroad Company has been succeeded in its 

 property and franchises by a new corporation, 

 organized in the United " States under a law 



* See " Annual Cyclopedia" for 1879, p. 463. 



passed at Albany on June 6, 1882, and called 

 the "Central American Pacific Railway and 

 Transportation Company." A project is talked 

 of to connect the Salvador port of La Union 

 with the Guatemala system of railways, and 

 another of extending the latter system from 

 Guatemala city to the Atlantic port of Santo 

 Tomas, thereby completing railway communi- 

 cation between either ocean, to the incalculable 

 advantage of the two republics thus united. 



A line of horse-car railroad from Guatemala 

 city to the suburb Jocotenango was to be 

 completed in September. Branch lines were 

 to be extended through the principal thorough- 

 fares of the capital. There were in 1881 up- 

 ward of 3,600 miles of telegraph established, 

 with sixty-three offices. The number of dis- 

 patches was 222,456, of which 56,608 were on 

 official service, and the receipts and expendi- 

 tures were $51,493, and $98,230, respectively. 



The vexed question of limits with Mexico 

 has at last been settled, to the mutual satisfac- 

 tion of both countries. President Barrios, ac- 

 companied by some of his Cabinet ministers, 

 visited the United States in July, for the pur- 

 pose of obtaining the good offices of President 

 Arthur as arbitrator. A convention was signed 

 by the representatives of the negotiating re- 

 publics (Sefior Romero representing Mexico), 

 the main articles of which preliminary docu- 

 ment are briefly as follows : 



1. The Republic of Guatemala relinquishes 

 her claim to the State of Chiapas and its De- 

 partment of Soconuzco. 



2. The definitive treaty of limits between 

 Mexico and Guatemala will be concluded on 

 the ground that Chiapas and Soconuzco form 

 an integral part of the United States of Mexico. 



3. The Republic of Guatemala, satisfied with 

 the expressed appreciation of its conduct on 

 the part of Mexico, and the acknowledgment by 

 the latter that the ends held in view by Gua- 

 temala on agreeing to the terms of the pre- 

 ceding articles were noble and honorable, will 

 claim no pecuniary indemnity or compensation 

 for the surrender of rights as above stipulated. 



4. In the event of disagreement as to the 

 line of demarkation, and the necessity of ap- 

 peal to a third party, Mexico and Guatemala 

 will jointly request the arbitration of the Presi- 

 dent of the United States. 



5. In fixing the dividing line, the general 

 rule of the uti possidetis will be observed, save 

 where it may be desirable to follow natural 

 lines. And, pending the final determination of 

 said line, each of the contracting parties will 

 respect the present possessions of the other. 



6. The Governments of the United States 

 of Mexico and Guatemala bind themselves 

 hereby to sign, in Mexico city, and not later 

 than six months from this date, the final trea- 

 ty, on the bases herein expressed. 



