COLOMBIA. 



139 



latter comprises the portion from Caracoli to 

 the mouth of Ceniza. The distance between 

 the Laguna de las Pampas and Barranquilla is 

 515 miles. The waters of the Magdalena are 

 entirely free to commerce, and there are at 

 present seventeen steamers navigating it. 



Stern-Wheel Steamers. Messrs. Yarrow & Co., 

 of Poplar, England, have built a steamer of 

 this kind specially for the Magdalena. A speed 

 of thirteen miles an hour has been obtained 

 in river-steamers of this class, the length being 

 120 feet, by 24 feet beam, and the draught 12 

 inches. A speed of fifteen miles an hour is 

 attained by vessels 130 feet in length, by 28 

 feet beam, and a draught of 15 inches. The 

 dimensions of this new steamer are, exclusive 

 of the wheel, 150 feet in length, by 31 feet 

 beam, with an estimated draught of 15 inches. 



Army. The standing army of Colombia, or 

 National Guard, numbers about 3,000 men. 



Finances. The national budget for the fiscal 

 year 1883 estimated the income from import 

 duties at $3,800,000 ; from the salines, at $1,- 

 100,000; from other sources of revenue, $1,- 

 344,000, constituting a total of $6,244,000, while 

 the expenditure was fixed at $6,744,000, the 

 outlays figuring therein with $1,800,000 to be 

 spent by the Treasury Department, and $1,- 

 400,000 by that of the army and navy. 



A message sent in to Congress by President 

 Otalora, in July, 1833, attracted much atten- 

 tion ; in this document he said : 



The monetary crisis becomes more serious every day, 

 and members must adopt some definite plan respect- 

 ing the State indebtedness by consolidating the dif- 

 ferent issues. Our creditors must be more interested 

 in this matter than ourselves, because otherwise ulti- 

 mately it will be impossible to avoid further issues 

 of obligations against branches assigned for other 

 services. Since we are unable to cover the millions 

 of the enormous deficit against the Treasury, we must 

 endeavor to maintain the value of our bonds by as- 

 suring the punctual payment of current interest until 

 such time as the financial situation shall improve. It 

 is also requisite that the principal bases should be 

 fixed by law, upon which, without awaiting subse- 

 quent authorization from Congress, final arrangements 

 can be effected in Europe for the acknowledgment and 

 payment by the canal company and the railroad com- 

 pany of the credits we hold against them for indem- 

 nity due as under the contracts for the concessions. 

 It would not be wise that such law should place a 

 limit on our rights, thus prejudicing our suits ; but 

 you must give "a vote of confidence to the Executive, 

 which will come to . no arrangement which has not 

 been carefully and thoroughly studied by the Cabinet 

 and its officers. The agent intrusted with the ad 

 referendum agreement has already been instructed to 

 dispose of the funds as follows : $1,000,000 to be given 

 to the National Bank, to enable it to effect discounts at 

 5 per cent. ; $500,000 to be devoted to the payment of 

 overdue interest on foreign bonds under an agreement 

 which shall insure the acceptance of such payment at 

 the rate of 3 per cent., commencing in the first place 

 at 1 per cent. ; $500,000 for the purchase of articles 

 required for the schools, clothing and armament for 

 the army, and for various objects of art to be placed 

 in the Capitol, and the balance to be devoted to the 

 construction or a railroad from Bogota to the Magda- 

 lena. 



The amount of duties collected by the Fed- 

 eral custom-houses during the fiscal year 1882- 



'83 was $4,350,478, being $45,512 in excess of 

 what the revenue from this source had been 

 the preceding year. 



The public indebtedness of the confederacy 

 stood on Aug. 31, 1882, as follows: 



A. Foreign debt (consolidated) | 4Q K 7ft r ftn 



B. Horn! debt (loan of 1878).. f $9,570,500 



Consolidated debt 5,588,801 



Floating debt 425,388 



" "8 per cent 1,813,250 



" " not bearing interest ... 580,710 



Antioquia and Girardot railroads 578,500 



Treasury bonds 26,368 



Bonds for which the state's salt-works and cus- 

 toms receipts are pledges 1,165,049 



Other outstanding bonds 1,668,011 



Indemnity to foreigners 253,450 



Purchase-money for Barranquilla railroad 420,000 



Total $21,589,527 



Banks* The Bank of Bogota, in ten years, 

 has paid a little over 100 per cent, in divi- 

 dends. The Bank of Colombia, in five years, 

 has paid 83 per cent. The Banco Popular, in 

 three years, has paid over 55 per cent. The 

 national Government has no supervision over 

 any of the banks except the National Bank, 

 which is nothing more than an institution es- 

 tablished for the purpose of discounting the 

 Government's own obligations. As an exam- 

 ple, the Government fails to pay the pensions 

 for five or six months; those who should re- 

 ceive them are suffering from want, and the 

 National Bank steps in and offers to discount 

 them. In this way the Government makes a 

 large profit. Nearly if not all the stock of 

 the National Bank is owned by the Govern- 

 ment. All the other banks derive their powers 

 from State governments, and are never taxed, 

 except in case of a revolution, when they are 

 all liable to be visited by the various chiefs. 

 The only security for the- circulation of the 

 banks is' the individual liability of the stock- 

 holders. There are four banks doing business 

 in Barranquilla. Three of them have a com- 

 bined capital of $',000,000, the other being a 

 branch of the National Bank of Bogota. The 

 private banks are organized under the laws of 

 the State of Bolivar, which are much the same 

 as were those of the State of New York twenty- 

 five years ago. The majority of the capital 

 of the American Bank belongs to citizens of 

 the United State. , being divided as follows: 

 American citizens, $295,000 ; British subjects, 

 $260,000 ; Colombians, $10,000. The rates of 

 discount are : 90 days, 8 per cent. ; 180 days, 

 9 per cent. ; rates of interest, 3 per cent, and 

 4 per cent, for 180 and 90 days; rates of ex- 

 change on New York, 27 per cent, and 28 per 

 cent, for sight drafts, and 25 and 26 per cent, 

 for 60 and 90 days' drafts ; on London, 24 per ' 

 cent, and 25 per cent. Toward the close of 

 1883 another bank with a large capital was to 

 be established at Barranquilla. 



Contested Limits. There being a long-pending 

 dispute about the precise frontier line between 

 Colombia and Venezuela, the Governments 

 have submitted the difference to the arbitration 

 of Don Alfonso XII, King of Spain, who has 

 accepted the office, and by virtue of a decree is- 



