but, if police or other matters prove unsatisfactory, the United States Government may take over their administration. In return for these grants the United States paid 10,000,000 dollars on the ratification of the treaty, and will pay 250,000 dollars yearly, beginning after nine years. The treaty was ratified on February 23, 1904, and in July, 1904, the provisional delimitation of the boundaries of the United States territory on the Isthmus was signed. This territory includes the port of Panama. Area and Population. The The The extreme length of Panama is about 480 miles, and its breadth varies between 37 and 110 miles. The total area is 31,570 square miles, and the population, according to an estimate of 1898, is about 340,000. country is divided into seven provinces, each under a governor. inhabitants are of a mixed race, comprising Spanish, Indian, and Negro elements, with a small number of temporary immigrants from the United States and Germany and other European countries. Chinese labourers are estimated at 2,000. The Indian element preponderates in the Cordillera region and towards the west, while there are about 40,000 negroes (mostly from the British West Indian Islands) on the Atlantic coast and inland, especially in the neighbourhood of the railway. The capital of the State, Panama, on the Pacific coast, had, in 1902, about 28,000 inhabitants, and Colon or Aspinwall, on the Atlantic coast, 3,000. Smaller ports on the Pacific are Agua Dulce, Pedregal, Montijo, and Puerto Mudis; on the Atlantic, Bocas del Toro and Puerto Bello. As to the financial prospects of the new State there is little information. Its share of the Colombian debt will be considerable, but the basis on which this will be settled is not yet determined on. Some portion of the amount to be paid by the United States will no doubt be allocated to meet the charge of this debt. Production. The soil of Panama is of great fertility and the climate induces luxuriant growth of tropical vegetation. But of the whole area about five-eighths are unoccupied, and of the remainder only a small part is properly cultivated. The most important product is the banana, which grows freely on the lands adjacent to the Chiriqui Lagoon. In this neighbourhood the United Fruit Company (a United States company) has large plantations and exports annually, from Bocas del Toro, about 2 million bunches of bananas worth about 125,000l. Caoutchouc (about 130 tons annually) is collected by the Indians of the Cordillera, or is obtained from trees planted by Europeans near the coast. Coffee (about 500,000 bushes) is grown in the province of Chiriqui, near the Costa Rican frontier. In the province of Coclé (Atlantic coast) there is one large agricultural undertaking, begun in 1894 with German capital. Here about 75,000 cocoa trees, 50,000 coffee bushes, and 25,000 caoutchouc trees have been planted and are now beginning to yield returns. Other products of the soil of Panama are coco-nuts, Brazil nuts, mahogany and other woods, copaiba, sarsaparilla and ipecacuanha. Cattle rearing is carried on successfully in the provinces of Chiriqui, Los Santos, Coclé and Veraguas, and hides form an important article of export. In 1898 the live stock was estimated at 165,000 head of cattle, 35,000 horses, 85,000 pigs, and 12,000 goats. Pearl fishing is carried on at the Pearl Islands in the Gulf of Panama, and at Coiba Island to the west. The annual exports of pearls to England and France amounted to about 14,000l. Turtle-shell is also exported to a considerable amount. For the development of the mineral resources of Panama little has been done, but there are two mining companies at work, both on the Atlantic coast. Of these, one is English, the Darien Gold Company, Limited, which in 1903 shipped 40,384 ounces of gold (value 159,7087.) to Europe, and the other American, the Manganese Mining Company, whose operations have been suspended since June, 1902. Manufacturing or other industries scarcely exist in Panama, but there are small factories for soap, matches, chocolate, mineral waters, &c. Cigars, tobacco, cigarettes, salt, and ice are Government monopolies, let to private persons. Commerce, Shipping, Communications. The imports amounted to about 473,000l. in 1903, and the exports to about 235,000l. The chief exports have been indicated in the enumeration of the products. The import duties in the Republic are about 15 per cent. ad valorem. The United States customs tariff applies to the canal zone, imports from the United States being free. There is an important transit trade, passing through the two ports of Panama and of Colon. In 1903 the weight of goods transported westwards by rail was 187,796 tons. The weight carried eastwards was 161,742 tons. The Isthmus on both sides is in communication with European and American countries by several lines of steamers. Colon is visited by vessels of 7 companies, of which 3 are British, French, 1 German, 1 Spanish, and 1 United States; the port of Panama is visited by the steamers of 3 companies, United States, British, and Chilian. In 1903 there entered at Colon 332 vessels of 611,035 tons; at Panama 213 of 250,654 tons. Many Norwegian steamers visit Bocas del Toro in the banana trade. The only railway in the Isthmus is that which was completed in 1855 and connects the ports of Colon and Panama. It belongs to the Panama Railroad Company (United States); has a length of 47 miles, and a gauge of 4ft. 8in. Its construction cost was 7,500,000 dollars; its gross earnings in 1903, 1,267,570 dollars, and expenses, 1,071,785 dollars. The principal shareholder is now the United States Government. There are telegraph cables from Panama to North American and South American ports, and from Colon to the United States and Europe. The monetary unit (from September 1, 1904) is the gold Balboa weighing 1 672 gramme 900 fine, to which the United States gold dollar will be legally equivalent. Silver coins are the peso (of 25 grammes 900 fine), and the half, fifth, and twentieth peso pieces. The Isthmus has been kept free from paper money. Part of the 10,000,000 dollars (canal money) paid by the United States has been applied to the establishment of a real estate loan bank, and part to public improvements in the several provinces. Under the superintendence of M. de Lesseps, a company was formed in 1881 for the construction of a ship canal, 46 miles in length, across the Isthmus of Panama, mainly following the line of the railway. The capital received up to June 30, 1886, amounted to 772,545,412 francs; and it was expected that before the undertaking was completed this would have to be nearly doubled. The company, being unable to proceed, was compelled to go into liquidation and suspend payment and all operations on the canal (from March 15, 1889). In March 1893 a further extension was granted for the organisation of a new company to take over the business; in 1894 a new company was formed, which obtained a concession for 10 years, extended in 1900 by 6 years, so as to terminate in April 1910. By that time the canal, according to the annual report of 1899, might be completed at a cost of 512,000,000 francs (20,480,0007.) On January 4, 1902, the Board of the company offered to sell to the United States all their rights and property. In view of this offer the United States Isthmian Canal Commission recommended the Panama route, and on January 22, 1903, a treaty was signed whereby the United States would have obtained a lease of the necessary strip of land for 100 years, renewable at the pleasure of the United States, but this treaty was in August, 1903, rejected by the Colombian Congress. A canal treaty between the United States and Panama was signed on November 18, 1903. This treaty is closely associated with the separate existence of the Panama Republic, and its general terms are given above under the head of "Government." The treaty between Great Britain and the United States signed November 18, and ratified by the United States Senate December 16, 1901, provides for the neutralisation of the inter-oceanic canal by whatever route it may be constructed, and for its use on equal terms by vessels of all nations. British Consul at Panama :-Claude C. Mallet, C. M.G. There is a vice-consul at Colon, and a consular agent at Bocas del Toro. Books of Reference. Foreign Office Reports. Annual Series. London. United States Consular Reports, Washington. Deutsches Handels-Archiv for February, 1903. Berlin. Church (G. E.), The Republic of Panama. In Geographical Journal for December, 1903, London. Keane (A. H.), Central and South America. In Stanford's Compendium. London, 1901. Rodriguez (J. C.), The Panama Canal. London, 1885. Wegener, Der Panama Canal. From Velhagen and Klasing's Monatshefte, XVIII., 1903-04. PARAGUAY. REPÚBLICA DEL PARAGUAY.) Constitution and Government. THE Republic of Paraguay gained its independence from Spanish rule in 1811, and after a short government by two consuls, the supreme power was seized, in 1815, by Dr. José Gaspar Rodriguez Francia, who exercised autocratic sway as dictator till his death, September 20, 1840. Dr. Francia's reign was followed by an interregnum, which lasted till 1842, when a National Congress, meeting at the capital Asuncion, elected two nephews of the Dictator, Don Mariano Roque Alonso and Don Carlos Antonio Lopez, joint consuls of the Republic. Another Congress voted, March 13, 1844, a new Constitution, and, March 14, elected Don Carlos Antonio Lopez sole President; he was continued by another election, March 14, 1857. At the death of Don Carlos, September 10, 1862, his son, Don Francisco Solano Lopez, born 1827, succeeded to the supreme power. President Lopez, in 1864, began a dispute with the Government of Brazil, the consequence of which was the entry of a Brazilian army, united with forces of the Argentine Confederation and Uruguay, into the Republic, June 1865. After a struggle of five years, Lopez was defeated and killed at the battle of Aquidaban, March 1, 1870. A new Constitution was proclaimed on November 25, 1870. The legislative authority is vested in a Congress of two Houses, a Senate and a House of Deputies, the executive being entrusted to a President, elected for the term of four years, with a non-active Vice-President at his side. The Senate and Chamber of Deputies are elected directly by the people, the former in the ratio of one representative to 12,000 inhabitants, and the latter one to 6,000 inhabitants, though in the case of the sparsely populated divisions a greater ratio is permitted. The Senators and Deputies receive each 2007. per annum. President of the Republic.-Juan B. Gaona. The President exercises his functions through a cabinet of responsible ministers, five in number, presiding over the departments of the Interior, of Finance, of Worship and Justice, of War, and of Foreign Affairs. The President receives a salary of 1,9007., the Vice-President 9607., and each of the ministers 6007. a year; but the total administrative expenses are stated not to exceed 5,000. The country is divided into 23 counties (partidos), which are governed by chiefs and justices of the peace, assisted by municipal councils. Area and Population. The area of Paraguay is 157,000 square miles. In 1895 the population was estimated at 432,000. The census results of 1899 show a population of 530,103, exclusive of about 100,000 Indians. The population is a mixture of Spanish, Guarani Indian, and Negro races. Of foreigners in Paraguay, in 1900, there were 18,180, including 9,300 Argentines, 2,700 Italians, 1,400 Brazilians, 1,100 Spanish, 900 German, 800 French, 600 Uruguayans, 400 English. The population of the capital, Asuncion, in 1900, 51,700; other towns are Villa Rica, 25,000; Concepcion, 15,000; San Pedro, 8,000; Luque, 8,000 Carapegua 13,000, Paraguari 10,000, Villa del Pilar, 10,000. In the 11 years 1890-1900 there were 4,825 immigrants mostly Italians, Germans, French, and Spaniards. In two years ending March 31, was 1902, there were 683 immigrants. Nearly three-fourths of the territory was national property, but in recent years most of it has been sold, much of it in very large estates. Religion, Instruction, and Justice. The Roman Catholic Church is the established religion of the State, but the free exercise of other religions is permitted. The law of civil marriage was suspended on March 1, 1899. Education is free and compulsory. There are about 400 public and private elementary schools, with 25,000 pupils and 700 teachers. Private schools are subsidised by the Council of Education. There are several Protestant schools for boys and girls. Near Asuncion there is an agricultural school with a model farm doing good work. At Asuncion there is a National College, with 15 professors and 205 students. Under a law of July, 1903, the President of the Republic may subvention 5 youths to the amount of 65 dollars gold per month for the purpose of studying engineering in a European University. Besides contributions from general taxes, there is a special Government fund for education consisting of a proportion of the proceeds of land sales, customs dues, &c. Asuncion has also a public library and five newspapers. A High Court of Justice, and various inferior tribunals, with local magis. trates, exercise judicial functions. Finance. The revenue is derived from customs, stamps and other dues, and from the sale of land and yerbales. The revenue and expenditure for five years are officially given as follows in paper dollars (approximately for 1903, 8.7 currency dollars = 1 gold dollar = Revenue 4s.): The estimated revenue for 1904 was 1,394, 206 dollars gold, and 2,483,403 dollars currency; the estimated expenditure, 413,567 dollars gold, and 10,803,969 dollars currency. In 1874, the principal of the foreign debt of Paraguay stood at 1,505, 4007., the outstanding amount of loans contracted in 1871 and 1872. In 1885 it was agreed that 850,0007. of new bonds should be issued in exchange for this amount, an arrangement was made for the future payment of interest, and an assignment of land was executed in payment of arrears of interest up to July, 1886. Land warrants were issued to holders of unpaid coupons, and the Paraguay Land Company (now called the Anglo-Paraguayan Land Company) was formed to deal with these warrants. Interest under the new arrangement was paid till January 1, 1892. In 1895, an arrangement was made with the bondholders for the reduction of interest, the funding of arrear coupons, the creation of a sinking fund, and the assignment of securities. In 1904, the outstanding debt amounted to 897,0507. The guarantee debt due by the Government to the Paraguayan Central Railway, April 30, 1904, amounted to 1,295,4117. There was also a gold debt due to |