SALVADOR. 



715 



an interview between him and the Presidents 

 of Guatemala and Honduras at Montaguay, on 

 the southern frontier of Guatemala, on the sub- 

 ject of their interstate relations. 



Financei The condition of the finances is 

 shown in the following: 



The details of income and outlay in 1883 

 were : 



REVENUE. 



Prom customs $1,455,300 



Spirit and powder monopolies 1,004.400 



Stamp-tax 84.000 



Post-Office and telegraphs 33,800 



Sundry items of income ; 1,418,800 



Total $4,061,300 



EXPENDITURE. 



Civil list of President $15,800 



Assembly 19,200 



Foreign Department 142,500 



Department of Justice and Public Instruction .... 192,700 



Department of the Interior and Finance 1,263,100 



Department of War and Navy 583,100 



Other expenditure 1,785,600 



Total $4,002,000 



The low price of coffee and indigo, the chief 

 products of the republic, caused a serious fall- 

 ing off in the revenues, compelling economy 

 and the exercise of the greatest vigilance on the 

 frontier, and at La Union, to prevent smug- 

 gling. Still, the scarcity of specie became so 

 great that in January, 1885, several merchants' 

 firms had to suspend payment. Simultaneous- 

 ly a great scandal occurred at La Union, where 

 several customs employes were cashiered for 

 conniving in a smuggling operation. Upward 

 of $100,000 worth of goods passed free. 



In September a new bank was founded, the 

 Banco Anglo-Sal vadoreno, with a capital of 

 500,000 in shares of 10; 200,000 to be 

 paid up on subscription. The President of the 

 Republic, and San Salvador and Santa tecla 

 capitalists, on September 15, immediately sub- 

 scribed to the extent of 3,200 shares. 



In January, 1885, the Union Bank lowered 

 its rate of discount to 9 per cent., thus facilitat- 

 ing transactions in coffee then being gathered. 

 The Government had meanwhile decreed the 

 levying of an export duty on the latter of 12 

 cents per quintal of 100 pounds. 



Tariff. A project was suggested to Salvador, 

 emanating from Costa Rica, to abolish all inter- 

 state duties in Central America, as at present 

 subsisting between Costa Rica and Nicaragua, 

 the duty mutually collected by the remaining 

 republics being 4 per cent. 



The new duty, decreed July 31, was to the 

 effect that, dating from Nov. 1, 1884, all goods 

 arriving by steamer, and from Jan. 1, 1885, all 

 such arriving by sailing-vessels, were to pay 

 50 per cent, ad valorem, 25 per cent, payable 

 in cash, 15 per cent, in custom-house certifi- 

 cates, and 10 per cent, in national-bank notes. 



Resources. An association was being formed 



in summer, through the initiative of Don Ra- 

 mon Paez, for the cultivation of textile plants, 

 such as the pita, pifiuela, and pitta de raton. 



According to the details of statistical re- 

 searches made by order of the Government- 

 there are in the vicinity of the towns of Coma- 

 sagua, Chiltiupan, Jicalapa, Jayague, Teotepe, 

 que, Tepecoyo, and Tarnanique altogether 235 

 planters engaged in gathering balsam, employ- 

 ing 312 gatherers, the number of balsam-yield- 

 ing trees being 12.096, producing, in 1884, 12,- 

 611 pounds of balsam. Steps have been taken 

 to place the indigo industry on a better footing, 

 and introduce improved methods of treatment. 

 The Minister of Public Works has addressed the 

 stock-farmers of Salvador, in order to concert 

 with them the best means of introducing ap- 

 proved breeds of cattle. To promote the agri- 

 cultural interests of the country, the Govern- 

 ment assumed the publication of the " Boletin 

 de Agricultura " in May, 1884. The agricultural 

 districts last year again suffered severely from 

 the ravages of grasshoppers. 



Communications. The first line of railway, 

 from the port of Acajutla to Sonsonate, was 

 opened in July, 1882. The line from the latter 

 place to Santa, the port of La Libertad, is 

 being built, and, on September 22, the section 

 from Sonsonate to Armenia was inaugurated 

 amid great festivities. There were in opera- 

 tion in 1881 altogether TOO leagues of tele- 

 graph, with forty-eight offices. The " Diario 

 Oficial," of June 18, published particulars of 

 a contract embracing seventeen articles, stipu- 

 lating the following agreement between the 

 Government of Salvador and the Kosrnos line 

 of Hamburg ocean-steamers: The German 

 company engages to place on the line eight 

 steamers of at least 1,500 tons capacity, which 

 are to touch at ports in the republic, three of 

 them' to touch between June and December, 

 and the remaining five between January and 

 May. One of the steamers is to make the 

 trip direct from Hamburg, only touching in 

 England to load cotton goods, etc., the freight 

 not to exceed 4 10s. per ton on valuable goods, 

 and 3 10*. on common goods. Of the remain- 

 ing seven steamers four will as usual call at 

 South American ports, and three establish com- 

 munication between Central America and 

 Valparaiso in connection with other steamers 

 of the company keeping up communication with 

 Europe. It is to remain optional with the 

 company to suspend the June to December 

 trips in the event of there not being freight 

 enough ; but the company binds itself to dis- 

 patch the other five steamers, even if but par- 

 tially loaded. The company furthermore en- 

 gages to reserve 300 tons for the export of'Sal- 

 vadorian products, taking coffee for Havre, 

 London, Hamburg, Bremen, and Valparaiso, at 

 4 15s. per ton for Europe, and 3 for Valpa- 

 raiso, with a schedule of proportionate rates for 

 sugar, hides, cochineal, balsam, tobacco, etc. ; 

 the steamers, each trip are bound to call at 

 Acajutla and La Libertad ; at La Union only 



