"There are few villages in the country where there are no schools. In the city of Guatemala of late much attention has been given to education, under the direction of President Manuel Estrada Cabrera, who has done more along this line than any of his predecessors. There are in the city of Guatemala 25 public schools, 8 institutes, and 3 colleges.

"President Estrada Cabrera has given much attention to his pet scheme of establishing an industrial school for boys and girls at his own personal expense, aided by several of the more progressive citizens of Guatemala city, where the most improved methods of instruction are to be employed. The President has engaged two able educators from the United States, and proposes everything shall be up-to-date.

"The Boys' Industrial College is in charge of Prof. Y. C. Pilgrim, a well-known educator of New Jersey, assisted by Professor Bellingham and wife, who have charge of the languages, and Professor Lorenzo de Clairmont, who instructs in gymnastics and military tactics. These are assisted by several native teachers. The boys are selected from the best families in the Republic and are limited to 50, and are all required to live in the dormitory. The college buildings are situated in a tract of land of about 60 acres, convenient to the city, with a campus where the boys are to be instructed in the modern sports and military tactics as taught at West Point, and all orders are to be given in the English language.

"The Girls' Industrial School is in charge of Miss Alice Dufour, a prominent educator of New York City, assisted by several native instructors. This institution is located in the city and is to be conducted on the same high plan as the boys' college. The idea is to teach the principles on which the American home is founded.

"President Estrada Cabrera means these institutions shall be the nucleus around which a solid and up-to-date system of education shall be built for this Republic. It is his ambition to firmly establish an educational system modeled after that in use in the United States, where the watchword shall be industry, promptness, and honesty."

The New York Tribune in a Washington dispatch had this to say on the same subject:

"American teachers who went to Guatemala some time ago at the request of the government are sending back interesting accounts of the progress which that country is making in adopting the educational methods that obtain in the United States. The newspapers also have a good deal to say on the subject. President Estrada Cabrera, who is a progressive man, for several years has had the ambition to give a new turn to public instruction, and to make it practical after the system of the United States. His idea is that the youth of the Latin-American countries are especially in need of newer methods, and of getting away from the metaphysical systems which created a large class of professional men, for whom there was no room and who were a drawback to material progress.

"Some time ago President Estrada Cabrera established what was called the practical school, which combined technical instruction and manual training. A few weeks ago exercises were held at the Escuela Practica, or technical school, and it is concerning this that the New York teachers have written so encouragingly. The President delivered an address on the value of work and of developing through the schools an aptitude for everyday life. Heretofore he said there had been too much theory and too much that was purely professional in the system followed. Now that the aspiration of many years had been realized he was hopeful that the experiment would be beneficial in giving a new direction to the national spirit, and would result in the kind of business training that would fit the Guatemalan youth for the activities of practical life rather than incline them to the traditions of the past. Under the direction of the President fields for farm experiments have been established, and the youth are taught the care of horses and other farm work, as well as the manual trades. There is special provision made for athletic sports."

System of Government Explained.

The Government of Guatemala is republican—democratic and representative—and the supreme power is exercised by three governmental branches, each independent of the others, called "the legislative power," "the executive power," and "the judicial power."

The legislative power is vested in a National Assembly which consists of a single house composed of one deputy for each 20,000 inhabitants or fraction of that number exceeding 10,000. The deputies are elected by popular vote for four years, but one-half of the Assembly is renewed each two years so that each time that it meets it contains an adequate number of experienced members. Annual sessions are held lasting two months, beginning March 1, but they can be extended one month longer in case of necessity. For the transaction of business during its recesses the Assembly appoints seven of its members who form a body called "the Permanent Commission." This commission, as well as the executive, can call the Assembly to meet in extraordinary sessions.

The executive power is exercised by the President of the Republic, who, for the transaction of public business, appoints six Ministers or Secretaries of State, who have charge of the portfolios of Foreign Relations, Government and Justice, the Treasury and Public Credit, War, Public Works, and Public Instruction.

There is also a Council of State, a purely advisory body, which is composed of the Cabinet Ministers and nine other members, of whom five are appointed by the Assembly and four by the President. These appointments are for two years.

The judicial power is exercised by the courts and judges of the Republic, organized as follows:

The Supreme Court of Justice, which sits at the capital of Guatemala and is composed of the President of the Judicial Power, four Magistrates, and an Attorney (Fiscal).

Six Courts or Tribunals of Appeals, composed of three Magistrates, of whom one presides, and an Attorney (Fiscal). Three of these Courts sit at the Capital and one in each of the capitals of the Departments of Quezaltenango, Alta Verapaz, and Jalapa. The Magistrates and Attorneys are elected, by popular vote.

The Judges of the Courts of First Instance, of whom there are six in the Capital, three in Quezaltenango, two in San Marcos, and one in each of the remaining Departments of the Republic. These Judges are appointed by the Executive from three names proposed by the Supreme Court of Justice.

Finally, the Justices of the Peace who pronounce oral judgments and are elected by the people of the districts in which they exercise their functions.

For the exercise of the political, civil, and military administration of the country it is divided into twenty-two Departments, each of which has a Governor (Jefe Politico) invested with the executive functions. For the administration of the local affairs of each district there are popularly elected Municipal Councils. The service of the members of the Councils is for one year, is obligatory for the citizens of the respective districts, and is not remunerated.

The Constitution of the Republic gives to all those who live in the country the most ample guaranties of liberty, equality, and security of their persons, their honor, and their property; of freedom of movement and of assembly, of professions, of industries, and of commerce; of the right to dispose of their property, to address petitions to the authorities and to defend their interests before them; of liberty of conscience, inasmuch as there is no official religion; of the right to freely express their opinions, whether by speech, or by writing, or by means of the press, without being subject to censure; of liberty to give or receive instruction, if they should so prefer, in private educational establishments; of the right to have their residences, their property, their correspondence, and other papers respected as inviolable; of the right of habeas corpus; of liberty of defence in judicial proceedings, etc.

Primary instruction is obligatory, and that which is sustained by the nation is secular and free. There is no imprisonment for debt. Marriage is considered a simple civil contract; but those who desire can have it solemnized in a religious form. Absolute divorce can be obtained in cases defined by the law.

CHAPTER III. The Soil and its Riches.

The soil of Guatemala is remarkable in the vast extent and great variety of two classes of products which are unusual within the same degrees of latitude, that is, it produces both tropical and temperate staples of agriculture in great profusion. The soil grows coffee, sugar-cane, cacao, bananas, tobacco, cotton, india rubber, vanilla, sarsaparilla, and a long list of medicinal plants, while it likewise produces the cereals, wheat and Indian corn, which are only found in temperate regions, giving two and in some places three crops of these annually. There are also endless kinds of valuable hardwood, mahogany, rosewood, ebony, cedar and the like, which are especially tropical timber, and at the same time pine and oak exist in the mountain regions of the interior. Besides all this the grasses grown are especially adapted to live stock, and cattle raising and dairying are very profitable industries.

The British Consul General in an official report to the Foreign Office in London had this to say about the capabilities of the soil:

"The tropical situation of the country, the proximity of every portion to the sea on both coasts, the diversity of altitude and consequently of temperature, combine to make the agricultural capabilities of Guatemala equal to any in the world. Every kind of crop, from those of the tropical coast regions to those of the cold highlands (the latter having a climate corresponding with that of northern Europe in summer) may be raised. There are districts where even four crops of maize (Indian corn) are obtained in one year. It is a common theory that the manures are unnecessary, as the heavy rains wash down the rich soils from the sides of the mountains and fertilize the plains. The great secret is therefore for the agriculturist to adapt his cultivation to the nature of the soil and climate and his interest would be advanced by a judicious rotation of crops."

A breezy description, though an accurate one, was given of the soil of Guatemala by a correspondent of the Washington Star. Wrote this correspondent:

"Instead of my own impressions of the country I would rather give those of a North Carolina business man. He was taking the rest cure by means of a sea voyage to San Francisco and deflected his itinerary for a week's land journey. We traveled together to the capital and also made a trip to the port of Champerico over the railroad extension which has opened up new and untouched territory. It was his first view of tropical lands except from the ship's deck.

"On landing at San José the North Carolina man looked with awe and admiration as every tourist is bound to do on the dominating volcano peaks Fuego and Agua, Fire and Water. But while he never ceased to wonder at the richness of the scenery his practical instincts asserted themselves and he punctuated the information given him about climate, soil and products with keen observations. He confessed that on the vessel he thought they were 'stringing' him when they told him that the posts for the barbed wire fences just grew, but when he saw countless miles of trees in straight rows with the wire stretched along the trunks he paid his tribute also to climate and soil. He knew that naturally trees don't grow in straight rows and he found the explanation. The posts are poles cut from the trees' branches and when stuck in the ground they shoot up so rapidly that they soon are trees.

"The North Carolina observer never got over his wonder at the soil. The railroad cuts gave him a chance to see that it was not surface richness and he easily grasped the explanation. The vegetation grows to a certain height, then dies away, rots and forms fresh layers of richness. This process going on for centuries has made the fertility of the land inexhaustible.

"The utility of volcanic eruptions was new to him and was explained on the trip to Champerico. This is the great coffee region. It comes within the sphere of influence of the volcano Santa Maria. When Santa Maria was sprinkling both the sea and land with pumice stone and ashes, on many of the fincas (plantations) there was just enough of this lava soil after the rains had come and washed away the surface of the deposit to renew the productiveness."

In another way an idea of the varied products of agricultural industry can be had from an account given in the British Consular reports of a model plantation. This plantation consisted of 3,000 acres. In a given year it produced 1,200,000 pounds of coffee, 300,000 pounds of sugar, 300,000 bottles of the by-product of sugar known as aguardiente or cane rum, 22,000 gallons of milk. Two thousand head of cattle were raised. On this plantation from 900 to 1,300 laborers were employed.

Coffee of World-Wide Fame.

As is well known, Guatemala's most valuable agricultural product is coffee. The fame of Guatemala coffee is worldwide and it commands the highest prices. The production in average years is about 70,500,000 pounds, though in a recent year it exceeded 80,000,000 pounds. The most productive regions are in the departments of Guatemala, Amatitlan, Sacatepequez, Solola, Retalhuleu, Quezaltenango, San Marcos, Alta Verapaz, Baja Verapaz, Chimaltenango, Santa Rosa and Escuintla.

The altitudes at which the coffee plant is most successfully cultivated are between 1,500 feet and 5,000 feet above sea level, according to the locality and quality of the soil. The temperature at which the greatest productiveness is obtained varies from a minimum of 60° Fahrenheit to a maximum of 90°. In the lowlands the trees have to be shaded in order to prevent the leaves from being scorched by the heat. There is an abundance of native trees which answers this purpose. Occasionally, too, bananas are raised in conjunction with coffee since their broad leaves furnish an excellent protection.

In districts where the mean altitude is 4,500 feet a different sort of protection is necessary in order to shelter the coffee leaves from the northern winds which blow during the months of December, January, and February. In these high altitudes the ranges of hills form the best natural protection. To bring the coffee plant to full production from five to seven years are required, though after two years the bush will produce about two pounds of the berry annually. The coffee plants are raised in nurseries and afterwards transplanted to the cafetales or coffee plantations. The critical season for the crop is the blooming period. A heavy rainfall while the trees are in flower will seriously damage the plants by washing away the pollen and thus preventing fructification. This period lasts three or four days when the blossoms fall and the cherry or berry begins to appear. The cherry reaches maturity in October and is ready for gathering and pulping, that is, for the removal of the outer shell and pulp. After this process it is washed and carried to dry, spread out in brick paved yards exposed to the sun. The grain is known as pergamino, or shell coffee, after the removal of the red pulp, while it retains the inner white or yellow parchment covering. After this parchment is removed it is known as oro, clean coffee, and this is the common commercial term.

So many elements enter into the cost of planting and bringing to maturity a coffee plantation that it is difficult to estimate the expenditure necessary to ensure a given profit. Experienced coffee growers are guided largely by their knowledge of the local conditions and requirements. However, a reasonable amount of capital in the beginning is necessary and many investors possessing the capital prefer to buy fincas or plantations that are already producing.

The government of Guatemala lays an export tax of one dollar in gold. Germany takes the bulk of the Guatemala product, though Great Britain is a large buyer and the United States is receiving larger quantities from year to year. With the increased facilities for transportation there would appear to be an excellent opportunity for dealers to make a specialty of Guatemala coffee in the United States, for the article once introduced would be sure to have an increased consumption.

Sugar and other Profitable Products.

In 1890 Guatemala was producing barely enough sugar for its own consumption. In 1904 it exported 6,000,000 pounds to the United States. New Orleans is the nearest market, though shipments also may be made to Brooklyn. The product consists of white loaf sugar, panela or coarse brown cakes, from which the cane rum is made, miel or molasses, and mascabado, or inferior grades. The sugar cane is of excellent quality and the production is abundant, especially along the hot coast districts. The departments of Escuintla, Amatitlan, and Baja Verapaz are the districts in which the largest areas are under cultivation. As a rule the small sugar mills are crude and modern machinery has not been introduced to a great extent, although the largest plantations are already supplied with the latest improvements. With the introduction on a larger scale of modern machinery and the latest processes the sugar industry would be certain to afford satisfactory profits.

Cacao of a very high quality is produced in Guatemala and the native article commands much higher prices than that produced in other countries and brought to Guatemala for sale. The productive regions are the tierras calientes or hot coast lands. The principal cacao producing districts are Escuintla, Suchitepequez, Solola, and Retalhuleu. The bean is most productive at an altitude of 800 to 2,000 feet. In some cases the shrub produces a pound of beans every four months and after reaching maturity it is said to produce without interruption for one hundred years.

Notwithstanding the superior quality of the Guatemala cacao the industry has not been carried on systematically, possibly because five or six years are required to secure the first crop. In the last year the total output was only 34,000 pounds, but the steady demand for cacao and the certainty of good prices justifies the investment of capital which can await five or six years for the first returns. The gathering of the cacao beans requires very little machinery and few laborers. Chiefly care must be taken not to hurt the bean or almond when breaking the fruit wherein they are contained. One day of fermentation must then be given to them, after which they remain exposed to the sun for six or eight days, when they are ready to be sent to the market.

One of the most profitable of future industries in Guatemala undoubtedly is that of banana culture. There are vast productive regions on the Atlantic slope and these are certain to be cultivated since the building of the Northern Railway insures opening up the lands by giving access to the New Orleans market within the time that is necessary for gathering and shipping the fruit. The annual production is now about 800,000 bunches, of which one-half are consumed at home and the balance shipped to the United States. It is estimated that within a year after the Northern Railway is completed the shipments to the United States will exceed 750,000 bunches per annum and will soon amount to 1,000,000 bunches.

Tobacco is produced in a number of districts and there is much suitable soil for it, but up to this time it has been raised only for local consumption. Rice is also produced in the hot coast lands. Cotton is grown and experiments have shown that the Sea Island cotton thrives in Guatemala.

Rubber Cultivation an Inviting Field.

For investments of capital that is willing to wait returns there is no more inviting field than the cultivation of india rubber, which grows wild in Guatemala. Each year the demand for rubber increases and the price rises. The coast regions where the wild tree flourishes are especially adapted to the cultivation of the product. The subject has been given very careful attention by the Guatemalan government, which caused investigation to be made by scientists who were familiar with the native agriculture. The result of these investigations has been published from time to time.

The wild gum tree is tall with smooth greenish white bark. The milk which is the mercantile product is contained principally in the fibres which are attached to the woody portion of the tree between it and the bark. The milk contains about 60% of water and other substances, while the remaining 40% represents the salable product. The climate most appropriate for the growth of the rubber tree is that of the hot coast lands at an altitude not exceeding 1,500 feet. The yield of the cultivated rubber trees has been estimated as high as three pounds yearly from the sixth year, but the best authorities do not think that the trees should be tapped before the ninth year and then the grower should be satisfied with an annual yield of two and a half to three pounds of milk, which will insure one pound of rubber.

An estimate of the cost and probable yield of a rubber plantation as made by Señor Horta, a leading authority, was that a plantation of 100,000 trees would require ten caballerias (about 1,100 to 1,200 acres), and would have cost after ten years about one dollar per tree. This expense could in part be met by secondary cultivation. According to the calculations one crop after ten years should produce double the amount expended in that time.

The government encourages the cultivation of rubber, a decree having been issued in 1899 which provided that for every 20,000 rubber plants of four years of age and planted after the date of the decree the owner should receive one caballeria (112 acres) of uncultivated national land. The government, however, does not endorse nor recommend the promotion of rubber plantations by stock companies which seek chiefly to sell the stock among small investors in the United States. All such schemes should be carefully investigated before the shares are bought and the leading facts in regard to rubber production, including the necessity of a period of at least ten years for the successful development of a plantation, should be kept in mind.

Bounty for Hennequen.

The soil of Guatemala in the opinion of experts is especially adapted to the cultivation of fibre plants of which the most valuable is hennequen or hemp. Maguey or wild hennequen grows in various localities, particularly in the eastern districts, where there is a large area which it is believed can be brought under profitable cultivation for commercial purposes. President Estrada Cabrera, in order to encourage the cultivation of hennequen, has provided that a bounty shall be paid to the cultivators of the plant, the scale of payment being graduated according to the size of the plantation. Since it takes from four to five years for the plant to mature the cultivators are allowed to receive one-half the bounty two years after the hennequen is planted and the balance at the end of the four years. A bounty is also to be paid for the exportation of each 100 pounds of hennequen and the machinery necessary on the plantation is to be imported free of duty. As a further inducement to engage in the cultivation of the fibre the natives who produce hennequen are to be exempted from military service in a proportion fixed relatively to the number of acres under cultivation. This experiment with hennequen is especially important in view of the fact that soil which is not suitable for coffee, sugar cane or cacao is thought to be especially well adapted to this plant.

The number of medicinal plants produced in Guatemala is infinite. One scientist gives a list of 339, which includes many balsams and the aromatic plants, such as sarsaparilla and vanilla. The conditions of vanilla cultivation are similar to those in Mexico. The vine after five years is in full bearing and will produce from 15 to 40 beans. It is estimated that a five-acre vanilla plantation will yield sufficient income to render its owner independent, but this is only by the most careful attention in cultivation.

Many Varieties of Valuable Wood.

There are said to be 150 kinds of Guatemala wood which are commercially valuable, and the number of species exceeds 400. The timber area includes the littoral forests in a narrow belt along the Pacific and Atlantic coasts; the humid forests mixed with the prairie fields which cover the plains from the foot of the Andean Cordilleras to the Pacific; the moist forests of the hot zone and the temperate zone found along the foothills of the volcanic chain and in the northern and eastern parts of the country; the humid forests of the cold zone; the pine and oak forests in the upland plains; the savannas and chaparral consisting of small trees and bushes; the savannas with pines along the Atlantic coast and the savannas of the cold zone on the highest tablelands of the mountain.

In the report of the Intercontinental Railway Survey Lieutenant Hill gives a list of trees found in southeastern Guatemala which is another illustration of the varied timber resources of the country. The list is as follows:

Aconacaste, conacaste, guanacaste—a light brown wood rather soft and resembling inferior walnut.

Amarillo—yellowish, hard, plentiful, strong; lasts well in water or ground; used for pillars and girders in native houses.

Cedro—reddish, easily worked; used much for boards, not very strong, warps easily.

Caoba—mahogany.

Chichipate—hard, fine-grained; used in wagon-making.

Chiche—straight grained; lasts well above ground.

Chico—straight grained; takes high polish.

Granadillo—dark brown, strong, plentiful; good for construction.

Guachipilin—good for construction.

Guapinol—hard, resembles oak in texture.

Jicaro—bears gourdlike fruit; plentiful on llanos, used in making saddle-trees.

Laurel—resembles chestnut; used for furniture.

Madre cacao—hard, takes fine polish; good for posts.

Mario or Palo Colorado—a fine wood somewhat like mahogany.

Matilishuate—grows large and straight; used for wagon boxes.

Mora—dyewood.

Jocote de Fraile—handsome wood, takes high polish.

Ronron—fine, hardwood, takes high polish.

Tempisque—reddish, resembles mahogany in weight and texture.

Volador—fine tree, tall, straight trunk; good for bridges and roofs.

With such a vast wealth of timber the importance of the railway projects which open up the forest regions and make the markets of the United States and Europe accessible will be appreciated.

Encouragement to Livestock Industries.

Cattle raising and dairy farming are among the most profitable agricultural industries of Guatemala, while horse-breeding also can be made to pay unusually well. The native horse is small but very strong and is tireless. The race horses and others obtained through the crossing with foreign breeds imported from the United States and from Spain, England and South America have given most satisfactory results.

Dairy farming especially in the vicinity of the cities yields large dividends. The cattle are largely three-quarters or half-bred natives and Holsteins and Durhams. The pure native cows give much richer milk than the imported stock, but they yield a very small quantity. The milk of the thoroughbred imported cows is thin, owing probably to the unsuitable nature of the fodder, and thus the half-bred cows are the most profitable.

The highlands of the interior afford very fair grazing for cattle throughout the year. The climate is mild and equable and the stock can remain in the pastures from January till December, while no losses are suffered from severe weather in winter. Most of the country is well watered. The native mules are superior to the horses for long journeys or heavy loads and as a rule they command higher prices. Pigs are raised with little difficulty and fetch a high price, since pork is one of the favorite foods on many of the plantations and in the villages inhabited by Indians. The hogs are allowed to run loose and feed on nourishing roots, acorns and maize. The sheep industry is capable of development at the hands of experienced sheep-raisers. There are many flocks and the quality of both the mutton and the wool is capable of improvement.

Mines and Mining.

The mineral riches of Guatemala, while not unknown, may be said to be unexploited. Owing to the varied geological formations the belief both of geologists and of practical miners is that they offer a promising field for development. The minerals include quartz and gold, silver and galenas, copper, coal and lignite, manganese, asbestos, graphite, kaolin, opals, slate, alum, marble, silver, mica, iron, sulphur, lead.

The mining archives of colonial days show that between the years 1627 and 1820 more than 1,300 mines of gold, silver, lead, copper, tin, iron, and one of quicksilver, were discovered and worked, and were a source of great revenue both to the Church and the State. History records that during the earliest Spanish occupancy of that country enormous quantities of gold and silver were taken from those mines. At one time more than one hundred and fifty very rich mines were worked there. From one group the mint of Guatemala coined silver to the amount of $43,000,000, besides what was shipped directly to Europe.

"Zinc, copper, lead, and silver predominate in these regions, being generally found in argentiferous blends and galenas, and sometimes both metals in conjunction with carbonates of copper. The proportion of the lead varies from 20 to 25% in the galenas and the blends contain from 15 to 40% of zinc.

"The proportion of silver varies from 200 grammes to 7 kilos (17 pounds), allowing one to calculate on an average of from 2 to 3 kilos. The beds extend to the tablelands on which the capital is situated, stretching as far as the Department of Jalapa, where the lead disappears sometimes completely, the silver being found alone. The veins stretch to the valley of the Motagua, disappearing for some time on the left bank of that river and reappearing again to the north of Solamá, following a straight line to Huehuetenango, although the quantity of silver in this region is less than in the beds in the southeast of the Republic.

"Copper, one of the metals which is most abundant in the country, is generally found in oxicarbonate in beds of sediment. It appears in the neighborhood of the capital and various other points. These beds continue up to the Mexican frontier along the banks of the river Salega and round the town of Cuilco, but the nature of the metal changes little by little, passing from the carbonates to oxisulphates mixed with iron and soon the copper disappears altogether. In the eastern region abundant deposits of carbonates of copper are found principally in the Department of Chiquimula, mixed in many cases with other metals such as zinc, lead, and silver.

"Lignite of excellent quality is found in beds near the Atlantic coast, a very great consideration in the development of mineral industries."

Captain Rae of the United States, who spent several years in Guatemala and who wrote authoritatively concerning the mineral resources of the country, said that he had found near the northwestern frontier large quantities of low grade gold sulphuret ores and also rich lead ores carrying a small percentage of silver as well as some good copper carbonates. He said that the lead ores were of the best clean carbonates, easily smelted by fuel alone, and had been rudely exploited principally for the lead they contained. These silver lead mines of low grades of silver were in the vicinity of Chiantla, and the belt extended, he said, northwest, breaking out again in heavy deposits bearing silver from $12 to $40 a ton and lead 80%.

Captain Rae gave the following further details:

"Still further east in the Lacodor country are found immense deposits of the same character of ore, which seemed to lie as if thrown up in volcanic upheavals. In some places the lead is found in small nuggets entirely pure. Large deposits of black lead or plumbago exist both north and south of Huehuetenango of a good class and ready for commerce.

"Auriferous gravel beds are found at different points on the Rio Grande in the Department of Baja Verapaz which prospect well for heavy course gold. The working of these beds is confined to the immediate river banks, done by the natives in a very rude manner, merely scooping out the choicest streaks of goldbearing gravel and washing it in wooden bowls. These beds seem to be well defined and extend back through the flats to the hills.

"Also some gold formation is found along the Rio Plátanos and Vacas two affluents of the Rio Grande that flow into it from the south side and nearly opposite to one of these goldbearing gravel beds. Further down the river on the north mountain range there exists asbestos in several places and from a surface prospect the texture is of a good variety and free from all foreign substances varying in color from deep gray to snowy white, the fibres measuring as much as 6 inches in length.

"In the Department of Izabal lying on the Atlantic or gulf coast, on the lower waters of the Motagua and Polichis rivers, there exists rich and extensive beds of gold placers which have been worked for several years in a primitive way and have yielded a large amount of gold dust.

"In the foothills of Livingston stone coal has been found of the lignite variety and said to make good combustible. On the opposite side of the Gulf of Dulce from the coal deposits are large deposits of magnetic iron ores, ranging from 60 to 70 per cent. of iron. These deposits lie only a few leagues from water communication on the Gulf and also close to the Northern Railway."

The following description of the various mineral districts is from The Bristol Board of Trade journal:

"The principal known mining districts of Guatemala are situated on the eastern boundary, both to the north and also the south, in the Departments of Chiquimula and Izabal, adjoining the Republic of Honduras and that of Salvador. These districts are mountainous, and, owing to their complete isolation and lack of communication with the other parts of the Republic and the difficulty of procuring supplies, there being at the moment very few roads, this part is not generally known to the outer world.

"On the western boundary, in the Department of Huehuetenango and near to Chiantla, there are said to be very rich copper mines, similar to those of Chiapas, in Mexico. These are now being explored, but so far no copper has been found, though the district is rich in lead and a small percentage of silver. The assays that have come to hand show 56 per cent. of lead and 40 ounces per ton of silver. In many other parts of the Republic mines have been discovered and mining rights secured, such as at San Cristobal and Aguil, in the Department of Alta Verapaz; near Rabinal and Pichec, in Baja Verapaz; at San Pedro, in the Department of Guatemala; also at Mataquescuintla, in the mines of Algeria and Rosario, in the Department of Santa Rosa; at Zalcuapa and Joyabaj, on the Rio Grande, in the Department of El Quiche; but the only mines that have recently been worked, and which have given and are giving fair results, are those of Quebradas de Oro, on the River Bobos, in the Department of Izabal, where gold has been washed in paying quantities.

"The district where mines have been denounced (pre-empted) and in some instances worked, lies between the Rio de Concepcion to the north and the Rio de las Minas to the south; the mining district alluded to is nearly due east of Los Sillones, on the finca of San José. This estate is in the Department of Chiquimula, and a society was formed under the name of Société Horta y Cia., which obtained mining rights from the Government for a term of fifteen years with the right to import free of duty all material, machinery, and necessary appliances. But until the present time very little has been done, owing to the isolated position of these mines and the difficulty of establishing communication, though the construction of a small line, which might connect with the Guatemala or Northern Railway at Chiquimula, has been under consideration, but the funds for the carrying out of this project have, it is understood, been lacking. This, if built, would do away with the transportation difficulty."

There is no difficulty in the work of mining in Guatemala since the climate in the mining regions is temperate and healthful.

CHAPTER IV. Trade and Markets.

Guatemala, because of its nearness, is an unusually good market for the products of the United States. With the increase in the transportation facilities which will result from railway building and other transportation enterprises that will add to the ocean shipping facilities the business should increase greatly if merchants and manufacturers in the United States choose to take advantage of it.

Official support is given this view by the reports of the American Consuls in Guatemala. Consul General Winslow has frequently called attention to the advantages which may be obtained. In one report he stated that large quantities of groceries, flour, potatoes, shoes, drygoods, and clothing come from the United States, but Germany and England seem to have the lead in machinery and hardware. There is surely a fine opening in these latter lines for exporters of the United States, but they must be in position to push their goods personally, to give longer credits, and to take more pains with packing. In all, it is safe to say, there are $8,000,000 of American capital invested in Guatemala and there is an opening for much more, if it is backed by the right kind of management.

In a report, to the British Foreign Office in 1905 Mr. Hervey, the English Consul, stated that as far as actual volume of business was concerned, as shown in the imports and exports, there appeared to have been a distinct improvement in the general trade of the country compared with immediately preceding years. The imports were the largest for the past seven years. The revenue of the country showed a great improvement all around, being, in fact, nearly double that of 1903, the most important increases being shown in import and export duties, the former benefiting by the 50 per cent. of their total payable in gold, and the latter by the tax of $1 gold per quintal which has been collected throughout the year.

The outlook for the future was, the report said, more favorable than it had been for many years. The completion of the Guatemala Northern Railway would shorten the distance from Europe and the United States and promote trade. Already German and British steamers were calling at Puerto Barrios in addition to those of the United Fruit Company. The greater steadiness of exchange and the fall in the gold premium were further factors of importance in restoring confidence. With continued peace, and with it the prospect of increased labor facilities, so that the agricultural and mineral wealth to be won from the soil may attain to its fullest development, brighter days were dawning for Guatemala.

Articles Brought from Other Countries.

A general statement regarding the articles which Guatemala buys abroad and which therefore are of interest to exporters is as follows:

The principal imports consist of drygoods, almost exclusively cotton manufactures, brought from Great Britain, the United States, and Germany. In this branch British manufacture commands the market, the imports from the United States and Germany being relatively small. The more important articles are gray cloths; bleached shirtings, 7-8 and 9-8 prints; fancy cloths; gray, white, and blue drills; colored drills; handkerchiefs; gray and dyed yarns; Turkey red yarns; sewing cottons; trimmings; cotton blankets, etc. Of these goods about 75 per cent. are of British origin, 15 per cent. American, and 10 per cent. German. American manufacturers compete chiefly in drills, denims, blankets, prints, gray cloths, and bleached shirtings, while German goods imported consist chiefly of drills, prints, Turkey red yarns, blankets, and trimmings.

Woolen goods are not in very great demand; the principal lines are blankets, shawls, braids, hats, Berlin wool, and but few piece goods.

Hats are imported mostly from the United States, Germany, and only a few from the United Kingdom; shawls from Germany, principally; piece goods from Germany, France, and the United Kingdom.

Silks are not in demand, excepting floss silks imported from China, ribbons from Switzerland, France, and Germany. Regarding hardware generally, approximately 50 per cent. is imported from Germany, 30 per cent. from the United States, and 20 per cent. from the United Kingdom.

The principal imports from the United States consist of machetes, axes, and hoes, besides tools generally of the better classes, corn mills, plows, sewing machinery, outfits for building purposes, saws, barbed wire, files, screws, cutlery, ropes, brushes, enameled goods, paints, and varnishes and breadstuffs.

The imports from the United Kingdom are chiefly composed of galvanized-iron sheets, galvanized-iron goods, coffee machinery, copper sheets, tin goods, machetes, hoes, sickles, picks, pickaxes, saltpeter, pans (used on sugar plantations), iron sheets, saws, padlocks, cutlery, saddlery, bits, spurs, brass valves and cocks, pottery, cartridges, also preserves and biscuits.

From Germany are brought all kinds of cheap tools, machinery, sewing machines, cutlery, machetes, bar iron, enameled goods, pottery, locks, screws, nails, window glass, brushes, paper, matches, stearin and ceresin, part of these goods being also brought from Belgium and the Netherlands, while France ships tools for shoemakers' and saddlers' use.

The articles which Guatemala buys in exchange for her coffee, sugar, fruits, woods and other products in the customs classification are divided into three groups; that is, articles of prime necessity, articles of luxury or convenience, and articles for the industries.

The first and most important group includes cotton and woolen goods, wheat flour, rice, corn, potatoes, salt, wax and stearine candles, matches, soap, petroleum, glass and earthenware, and kitchen hardware.

The second group covers the finer grade of woolens, silks, mineral waters, liquors, preserves in cans, manufactured tobacco, glassware, porcelain, toys, musical instruments, perfumery, etc.

The third group consists of coal, woodworking machinery, cured hides, raw cotton, sacks, lubricating oils, farm implements and a variety of machinery.

Class of Imports from the United States.

The shipments with which up to this time the United States has been most successful in furnishing Guatemala can be understood from a summary of the articles sent out under a consular invoice from various ports. The exportations from the port of New Orleans during a recent year were as follows:

From the port of Mobile shipments were as follows:

The exports from New York, which average about $75,000 per month, are composed chiefly of the following articles:

From the port of San Francisco the annual shipments amount to approximately $1,000,000. The principal articles are flour, wheat, hops, corn, barley, oats, cotton, furniture, machinery, beers, wines, and whiskies. The articles imported at San Francisco are chiefly coffee, sugar, cacao, rubber, hides and lumber.

How the Commerce is Divided.

While the United States has a fair share of the trade the proportion is not as large as it might be if systematic efforts were made. In the last year for which statistics are available the foreign commerce of Guatemala amounted to $12,593,000, of which $5,041,000 was imports and $7,552,000 exports. Germany, which takes the bulk of the coffee crop, is the largest consumer. In the year quoted it took 53.79% of the total exportations from Guatemala North America (chiefly United States) 25.86%. England, 15.37%, and France 2.4%.

The exportation of the various countries to Guatemala in percentage terms was as follows: United States 36.59%; England, 22.62%; Germany, 19.97%; France, 9.21%; South America, 2.82%; Central America, 1.83%; Mexico, 1.69%; Spain, 1.54%; Italy, 1.32%; Belgium and Holland, 1.27%; other countries, 1.14%.

In detail the value of the goods imported by Guatemala in the given year was: from Germany, $1,019,000; United States, $1,442,000; England, $1,038,000; France, $175,000; Belgium, $114,000. No other country except the above exported to Guatemala goods exceeding $100,000 in value. Of the exports from Guatemala, chiefly coffee, as previously stated, Germany took $3,508,000; the United States $2,292,000; England, $1,282,000.

President Estrada Cabrera in his annual message commented on the balance of trade in favor of Guatemala and expressed himself very hopefully concerning the measures of internal development which could be carried on while the conditions of foreign commerce were so satisfactory.

Since a portion of the revenue of Guatemala is raised from the export tax on coffee it is possible to maintain a very moderate schedule of import duties and this is done. The average duty on the group of articles described under the heading of prime necessity is 23.67% ad valorem. On the second group 30.84% and on the third group 7.60%. The duties are equitably distributed so as to bear lightly on everything that enters into the industrial upbuilding of the country. Moreover, special concessions are sometimes made on material for railway and other enterprises which enter into the national development.

The general rules regarding the application of the tariff are very clear. They are formulated with a view to saving annoyance to shippers and are specific enough to avoid uncertainty. Import duties are not high. The list of articles which it is prohibited to import is a short one.

The charges for invoices on shipments to Guatemala are as follows:

For each additional $1000 the Consuls will collect $2.

The government officials of Guatemala and the merchants gave hearty support to the project of an exposition ship or floating exposition which was undertaken on the Pacific coast in order to display American products and manufactures and at the same time familiarize American firms with the products of other countries.

Exchange and Banks.

In the conduct of its foreign commerce reasonably long credits are required by the merchants of Guatemala, but always under fixed conditions. When the coffee crop is shipped bills on Europe and on New York can always be procured at reasonable exchange and the obligations be met in this manner. Since the balance of trade is in favor of Guatemala there is always the certainty of funds for exchange.

Under President Estrada Cabrera's administration the banks of the country are subject to a regulation somewhat similar to the national banks of the United States. Various decrees have been issued governing the emission of banknotes. The latest decree institutes a special bank examination project and requires all the financial institutions to give an account of their condition and operations to this Department.

The following statistics as to the leading banks of Guatemala have been compiled from recent reports:

Guatemalan Bank (Banco de Guatemala).

Occidental Bank (Banco de Occidente).

International Bank (Banco Internacional).

Columbian Bank (Banco Colombiano).

American Bank (Banco Americano).

Agricultural Mortgage Bank (Banco Agricola-Hipotecario).

All these are banks of emission and discount with headquarters in Guatemala City and with branches in the other principal cities of the departments. They also to some degree supply the place of mercantile agencies and report financial standing of individuals, firms and companies upon solicitation.

It is known to be the great ambition of President Estrada Cabrera to place the finances of Guatemala on a solid basis during his present term. The rate of exchange under the stability now afforded and the improved industrial and commercial conditions has been steadily falling.

A final word concerning the opportunities for American enterprise is convincing when it comes from official sources. In one of his reports Consul General Winslow said:

"During the past few months the exporters of the United States have been doing some effective work in this Republic. There have been several commercial travelers here studying the conditions and taking sample orders. Many others have been asking for information from this Consulate-General, which has been able to give valuable information. If this field is properly worked and sufficiently long credit is given, practically nothing but American goods need be found in the markets of Guatemala, for they are generally conceded to be the best. This market is worth cultivating, for the next few years will see great development here. Everything points that way, and the natural resources are great. The opening up of the new railroad to the Atlantic coast at Puerto Barrios will do wonders for the country. More attention is being paid to the packing of goods shipped to this country. It is an important matter and cannot have too much attention on the part of exporters. Packages should be very firmly nailed and bound by band iron, so they would be difficult to open, as there is much complaint about goods being stolen from boxes in transit. I have had several compliments of late from the custom officers for the way shipments of American goods have come packed. It will pay exporters to pack well everything they ship. Dollars spent in this line will bring hundreds in profits. This is especially true for Central American ports."

Supplementary to the above was a report from Vice-Consul General Owen in which these observations were made:

"The following drygoods of American manufacture are becoming quite popular here: Brown cotton, all grades; cotton duck, Lindale, up to 6 ounces; light domestics; long cloth; gingham; cotton drill, checks and stripes (cheviot); blue and brown cotton drill; fancy calicoes and lawns; cotton ware, all colors. The piece of 24 yards is the most popular, although cotton cheviots, gingham, etc., come put up in larger pieces. Dress patterns in lawn and calico are frequently imported.

"It must be borne in mind that the importers of this Republic are for the greater part Germans, and their interest and inclination lead them to trade with the fatherland. England also is preferred over the United States, possibly because Guatemala merchants can more easily identify themselves in England and get better credits. American goods therefore are imported only when their quality places them so far ahead of the European article that the merchant is almost compelled to have them in stock. The American manufacturers should become better acquainted with this trade, ascertain who are worthy of credit, and extend it. The long voyage and delay en route compel the importer to ask long credits. It is sometimes two or three months after shipments destined for this city leave the manufacturer before they can be displayed in the store of the importer. The custom duty on about all cotton goods is collected on gross weight of the package. Great care should be taken with invoices for custom-house purposes; the goods must be described in exact phraseology of Guatemala custom tariff."