THE REPUBLIC OF GUATEMALA. 
305 
However dry long columns of figures may be, they tell 
the story in the shortest way, and will give to those inter¬ 
ested in the work of a Government some insight into its 
methods. Like many other Governments, that of Guate¬ 
mala anticipates taxes, borrows, and issues paper obliga¬ 
tions. Its chief income is from the sale of liquor and 
from import duties. I have in another place described 
the method of taxing the sale of liquors, and I may say 
here that the tax seems to be collected with fairness ; but 
the heavy import duties offer a premium on smuggling, 
and I was told some very ingenious and amusing methods 
that had been used to evade the customs. If the ports 
of Guatemala were not just what they are, it would be a 
very difficult matter to collect the revenue from imports. 
The currency of Guatemala is silver, with the exception 
of about $50,000 of Government paper, and, like the silver 
currency of the United States, is worth only about seventy 
per cent of its face in gold ; but, unlike the Northern Re¬ 
public, Guatemala has not the power to float her debased 
coin, and the standard is therefore American gold. To 
meet its needs the Government sometimes mortgages to 
money-lenders its revenues in part, or even puts a custom¬ 
house in pawn; and cases have occurred where its subsi¬ 
dies have been suspended by arbitrary decree for a year, 
or even longer. Hence the unwillingness to embark in 
any enterprise that is largely dependent on Government 
aid. Even the mail-subsidies when paid are paid with 
orders on the customs. This, together with the very 
heavy import duties, certainly checks the investment of 
foreign capital; though to those within the country, and 
informed as to methods, the duties are much lightened by 
purchasing Government bonds at fifty per cent and paying 
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