FigueroaGeneral Fernando Figueroa, President of the Republic of Salvador 1907-1911.
General Fernando Figueroa, President of the Republic of Salvador 1907-1911.
General Fernando Figueroa, President of the Republic of Salvador 1907-1911.
General Fernando Figueroa, President of the Republic from 1907 to 1911, was born in San Vicente. Even when a small boy his disposition led him to a military career, and while still in his teens he enlisted in the ranks of the Salvadorean Army, during the memorable struggle with Guatemala of 1863. Under the command of General Bracamonte, he became a Lieutenant, and speedily distinguished himself in the field. He was on this occasion very severely wounded, and also was specially mentioned in despatches. After the death of General Gerardo Barrios, and the election of Dr. Dueñas as President, young Fernando Figueroa was given his captaincy. He was mainly instrumental in organizing the militia, and in 1871 he put its capabilities to the test when the war in Honduras broke out. Upon the overthrow of the Government of Dr. Dueñas, and the selection of Marshal Santiago González as Provisional President, peace was proclaimedwith Honduras, General Medina being recognized as legitimate President, and young Figueroa's services were temporarily unneeded. In 1872, however, Captain Figueroa was again fighting in territory belonging to Honduras, namely at Sábana Grande and Santa Bárbara, his gallant services at the first-named place gaining for him his lieutenant-colonelcy. In the following year, 1873, Colonel Figueroa distinguished himself in a third expedition against Honduras, at which time the President of the Republic was Señor Celio Arias, but who, by Salvador's aid, was dispossessed of the Chief Magistracy in favour of General Ponciano Leiva. Colonel Figueroa's bravery at the Battle of Amapala, and his gallant support of General Juan José Samayoa, have become important facts in Salvadorean history.
This same year he was appointed Governor of his native Department, San Vicente. In 1876, after fresh exploits in the field, the rising young soldier became a General, and with this military advancement he assisted the same year at the Battle of Pasaquina, in which he was once again seriously wounded. The events of 1876 led to further civil war, which continued with but few important intervals of peace until 1885, and during which period Marshal Santiago González fell from power, and Dr. Rafael Zaldívar replaced him as President. At this time, also, General J. Rufino Barrios died on the battle-field of Chalchuapa, and General Figueroa was given the supreme command of the Government troops against the Revolutionists, who were headed by General Francisco Menéndez. The latter having succeeded in attaining position as head of the State, General Figueroa retired temporarily; but he returned with the inauguration of the administration of GeneralCarlos Ezeta, and was again appointed to his former post of Governor of San Vicente. Later on he was nominated Minister of War, which position he resigned upon becoming candidate for the Presidency. He was duly and constitutionally elected in November of 1906, took office on March 1, 1907, and retired automatically with the fresh elections of 1910, to give place to Dr. Manuel Enrique Araujo, the present Chief Magistrate.
During his long and honourable career, General Figueroa has been distinguished as much for his brilliant soldier-like qualities as for his personal work and high sense of probity. He has had—as have all great men—his enemies and his detractors; but none among them can bring—nor ever have brought—any charge against his personal honour or integrity.
It was his keen patriotism and shrewd diplomacy which arrested the three-cornered armed conflict in which Salvador, Honduras, and Nicaragua, were concerned in 1907, and but for General Figueroa's tact and good sense, coupled with his masterly grasp of the situation, these three sister States would have exhausted themselves over a dispute which was practically worthless, and would have proved just as fruitless.
The Minister for Foreign Affairs is Dr. don Francisco Dueñas, a barrister, and a very distinguished member of the profession. Born in San Salvador, and forty-three years of age, Dr. Dueñas has occupied several important positions in the legal profession, and he is looked upon as one of the soundest authorities on commercial and general law. The Minister is regarded as an extremely able man, who is bound to rise to the highest position which the State can confer upon him.
The Minister of Finance is Señor don RafaelGuirola, D., a thoroughly sound, practical business man, with a wide knowledge of finance and commerce in all its branches and a member of one of the leading families. He may be depended upon to adopt a comprehensive and intelligent view of all subjects pertaining to his Department, and it may be accepted as certain that he will give wide encouragement to such foreign enterprise as can be regarded as of benefit to the State. Señor Rafael Guirola, D., is forty-five years of age.
The Minister of the Interior, Industry ("Fomento"), Public Instruction and Agriculture, Dr. don Teodosio Corranza, is also one of the most prominent lawyers in the Republic. He was born in San Salvador, and is about fifty-two years of age. He has occupied some of the most important and responsible posts in the country, and is considered by all alike as lending both distinction and prominence to his high office.
Dr. don Manuel Castro, R., Sub-Secretary of State for Foreign Affairs, is a barrister by profession, and a distinguished member of the Salvador Academy. Although only twenty-seven years of age, Dr. Castro has already filled with great distinction several important positions in the legal profession, and he is regarded as a rising "star" in the political firmament.
The portfolio for Home Affairs has been entrusted to the capable hands of Dr. Cecilio Bustamente, who is also a distinguished lawyer, as well as the writer of several books of more than ordinary merit. On several occasions Dr. Bustamente has occupied a position on the Bench, his judgments and rulings always having commanded deep respect, and invariably being the outcome of calm consideration andmuch forensic learning. Dr. Bustamente is about thirty-eight years of age.
Public Instruction is under the direction of Dr. Gustavo Barón, who is three years younger than Dr. Bustamente. By profession he is a physician and surgeon, having taken high degrees at the Paris University. Before entering the present Cabinet, Dr. Barón served as teacher of, and lecturer upon, several subjects in the National University of Salvador; and there is probably no man in the Republic who enjoys a wider respect or a deeper regard, especially among his colleagues, than the present Sub-Secretary of Instruction and Promotion.
The important portfolio of Public Works has been entrusted to the hands of Señor don José Maria Peralta Lagos, a civil engineer of great reputation in Central America, although only forty-two years of age. For many years past Señor Peralta Lagos has been interested in engineering undertakings, and there can be no question that he is admirably fitted both by experience and long study of current engineering subjects for the high and responsible position which he occupies.
The portfolio of Justice is in the hands of Dr. don José Antonio Castro, V., a young but very brilliant man, his age being only twenty-eight years, and who is a barrister by profession.
War and Marine are represented by Don Eusebio Bracamonte, a counsel of great reputation, and who for a considerable time occupied the position of Chief Justice of the High Court of Salvador. Dr. Bracamonte is forty-three years of age.
The portfolio of Agriculture is in the hands of Don Miguel Dueñas, who has devoted many years toa careful study of agriculture in all its branches, and has, from his experience and the careful observation of the methods employed in foreign countries, intimately acquainted himself with all modern methods, many of which he has personally introduced upon his own country estates. Señor Dueñas, who is forty years of age, has travelled very considerably in the United States and in Europe, and he speaks both English and French with considerable facility. For some years past he has been a Member of Congress, while he is also the Founder and the President of the Salvadorean Chamber of Commerce and Agriculture, an institution which has already conferred considerable benefits upon the State.
Señor Carlos G. Prieto, Sub-Secretary of Finance and Public Credit, is forty-five years of age, and a sound authority upon finance and commerce generally.
It is worthy of mention that the Ministry of Agriculture in Salvador is an entirely new creation, and owes its existence to the ruling President, Dr. Manuel E. Araujo. Considering the immense interest which Salvador has in agriculture, and bearing in mind the fact that upon its intelligent pursuit depends, to a very large extent, the prosperity of the country, it is surprising that a Department for Agriculture should not have been previously instituted. This is probably due to the fact that the late Ministry was disinclined to add further to the burden of expenditure in connection with the government of the country; but the additional expenditure incurred in the establishment of this Department has been abundantly justified by results, and there is very little question that, if for nothing else, the Presidency of Dr. Araujo will stand out prominently in connection with a governmentalcreation which has long been needed, and which is already proving thoroughly useful.
A new branch of the Government service has been established within the past few months in the form of an Information Bureau, which should prove of great utility to manufacturers and shippers, if they desire to avail themselves of it. Already several North American firms have done so, and, as I understand, with some material advantage, the existence of the department having been brought to the attention of United States commercial men by the very up-to-date and shrewd American Consul-General at San Salvador, Mr. Harold D. Clum. I have not heard that any attention has been directed to the institution by the British Board of Trade.
The Salvador Congress authorized, and the Ministry of Agriculture maintains, this Information Bureau, to report upon the orders which the various departments of the Government may consider it expedient to place abroad or upon the home market. The law provides that Government orders shall be placed only after, and presumably upon the basis of, a report from this Bureau; so that it is a distinct advantage to manufacturers and others, who desire to market goods in which the Government might be interested, to send their catalogues (but printed in Spanish, andnotin English) with price lists (but calculated in decimal measurements and coinage, andnotin "£ s. d."), as well as their proposals, to the Bureau. All such communications should be addressed: "Oficina de Informacíon, Ministerio de Agricultura, San Salvador." And let it be remembered that the postage upon letters is 21⁄2.!
The young and vigorous blood of which the SalvadoreanCabinet is composed is perhaps one of its strongest and most promising features, and the excellent impression which its formation created last March has been confirmed in every way since it got to work and proved the quality of its members for governing the country wisely and economically.
It would, under ordinary circumstances, perhaps be difficult to replace the valuable services which, for fifteen years past, have been rendered by Mr. Mark Jamestown Kelly, F.R.G.S., as Consul-General for the Republic of Salvador to the United Kingdom, with residence in London, and to whom full reference has been made in a preceding page; but it will be generally admitted that the Government has made a very wise and a very acceptable selection in Dr. Artúro Ramón Ávila. The new Consul-General is a native of San Miguel, and belongs to one of the leading families of the country, and occupying a very high social position in the Republic.
Although only twenty-seven years of age, Dr. Ávila has already attained some celebrity in his own country, and has received the degree of Doctor of the Faculty of Jurisprudence, a title which was conferred upon him by the National University of Salvador. In 1907 one of Dr. Ávila's most notable achievements was the composition of a "paper" which he read before the Tribunal of Examination, this being a learned thesis upon the subject of "The Duel" ("El Duelo"), consisting of 100 pages, and pronounced by literary critics as about the most clever and most convincing essay which had been written upon the subject.
Previous to entering upon his profession as an advocate, Dr. Ávila served as a Justice of the Peace for one year in the Capital of Salvador, being later onappointed Judge of the First Instance. He occupied a similar position in the Civil and Criminal Courts of Santa Tecla (New San Salvador), and held that post for two years. Dr. Ávila had also for some time been advocate-in-chief for the Banco Salvadoréno, of Salvador, and he represented legally various other reputable houses of commerce. Dr. Ávila holds the position of Consul-General of the Republic of Salvador for Great Britain and Ireland, and has taken convenient offices at 8, Union Court, Old Broad Street, London, E.C.
Señor Santiago Perez Triana, who has for some time been a resident in London, entered the service of the Salvadorean Government as Secretary of the Legation in 1900, under Dr. Zaldívar, and accompanied him to the Spanish-American Congress which met in Madrid in December of that year. Señor Perez Triana's capacity was that of second delegate of Salvador, Dr. Zaldívar being chief of the Mission, the third Attaché, who occupied a similar position to that of Señor Perez Triana, being Señor M. Rodriguez. Subsequently Señor Perez Triana was appointed Secretary of the Legation of Salvador in Spain. Since 1901, when he went to the last-named country to reside, he occupied the dual position of Chargé d'Affaires both in Madrid and in London; and he still occupies a similar position in the latter city, but not in Spain. In 1907 Señor Perez Triana was appointed Delegate to the Hague Conference for Salvador, jointly with Mr. P. J. Matheu. He is a quite remarkable orator and a man of great culture, speaking English with complete accuracy and writing it with equal facility.
AvilaDr. Artúro Ramón Ávila;Consul-General for the Republic of Salvador to Great Britain. Appointed May, 1911.
Dr. Artúro Ramón Ávila;Consul-General for the Republic of Salvador to Great Britain. Appointed May, 1911.
Dr. Artúro Ramón Ávila;Consul-General for the Republic of Salvador to Great Britain. Appointed May, 1911.
In connection with the Coronation of Their Majesties King George and Queen Mary, in the month of Junelast, the Salvadorean Government sent to London an Extraordinary Mission to represent the Republic, selecting for the purpose Señor J. Miguel Dueñas who by birth and education was well fitted to fill so important a position. Señor Dueñas was born in the city of San Salvador on August 28, 1871, and is a son of an ex-President of Salvador, Dr. Francisco Dueñas, and Donna Térésa Dardano. After a brilliant college career, pursued both in his own country, in the United States, and in Europe, Señor Dueñas returned in 1895 to Salvador, where he was soon afterwards elected by popular vote as Deputy to the National Congress of the Republic. He also became an active member of the Municipal Council, and is the Founder and President of the Salvador Chamber of Commerce and Agriculture in Salvador. He retains his position as Secretary of State for the Department of Agriculture, which, as mentioned previously in this volume, was brought into existence upon the initiative of the present President of the Republic, Dr. Manuel Enrique Araujo, this being one of his first official acts after assuming the Presidential chair, in the month of March last. Accompanying Señor Dueñas was his wife, Señora Donna Maria Eugénia Palomo.
The new Minister of Salvador in Spain and Italy, with residence at Madrid, is Dr. don J. Gustavo Guerrero, who was for many years Consul-General for Salvador at Genoa, and acted as First Secretary of the Special Diplomatic Mission of Salvador to the Court of St. James in connection with the Coronation of King George V. He is one of the several young men of great promise in Salvador, and is destined to go far. He is, moreover, a distinguished advocate, having taken high degrees at the Universities of San Salvadorand Guatemala City. He has acted as Deputy Governor at the first-named Capital, as well as Consul at Burdeos, Consul at Genoa, Secretary of Legation at Washington, and Chargé d'Affaires at Rome and Madrid.
In the month of May last (1911) Señor don Nicolás Leiva was appointed Consul for Salvador at Liverpool, which port carries on a fair amount of trade with the Republic.
Government finances—London Market appreciation of Salvador bonds—History of foreign debt—Salvador Railway security—Central American Public Works Company—Changing the guarantee—Financial conditions to-day—Public debt at end of 1909—Budget for 1910-11—Small deficit may be converted into a surplus—Summary.
Government finances—London Market appreciation of Salvador bonds—History of foreign debt—Salvador Railway security—Central American Public Works Company—Changing the guarantee—Financial conditions to-day—Public debt at end of 1909—Budget for 1910-11—Small deficit may be converted into a surplus—Summary.
The high opinion which the London Market entertains regarding Salvadorean Government securities is shown by the price at which they are quoted; and although judged upon their merits, these same securities are rather too cheaply priced, they form a marked contrast to some of the neighbouring States' foreign loans, such, for instance, as Costa Rica and Honduras. As a matter of fact, the Salvadorean Governments of successive years have strictly and faithfully performed their foreign obligations; and it has been the firm policy of past Presidents, as it is of the present Executive, to maintain their foreign credit upon an unassailable basis. It is possible to speak very encouragingly of the Salvador 6 per cent. Sterling Bonds, which were issued in March, 1908, at 86 per cent., and which are at the present time of writing quoted at or a little above par. Their desirability as an investment depends upon the standard of security they afford—on the probability, that is, that Salvador will faithfully fulfil its obligations. The Salvador Government 6 per cent. Sterling Bonds (1908), amounting to £1,000,000, were issued to meet the cost of certain public works and to repay certain local loans contracted at a higherrate of interest. The loan is redeemable by an accumulative sinking fund of 21⁄2per cent., by purchase or drawing, and is secured by a first charge on—(a) the special Customs duty of $3.60 (U.S. gold) per 100 kilogrammes of imported merchandise; and (b) the duty of 40 cents (U.S. gold) per quintal (up to 500,000 quintals) of the annual export of coffee, the proceeds of which are remitted fortnightly to the London Bank of Mexico and South America, whose Chairman stated recently that "the rapid way in which the remittances are coming forward is very satisfactory, and will, no doubt, in time improve the credit of this small but hard-working country." The bonds constitute the whole External Debt of the country, previous loans having been commuted in 1899 for debentures of the Salvador Railway Company, to which the Government pays an annual subsidy of £24,000. This subsidy has now been punctually remitted for over nine years. It is on such grounds as these that the friends of Salvador maintain that the value of the bonds should not be gauged by the financial reputation of some of the other Central American Republics.
It may be interesting to trace the whole history of Salvador's foreign indebtedness, which commenced as far back as 1827. The record—by no means an unworthy one—is as follows:
1827: Of the debt of the Central American Federation—which was composed of Salvador, Guatemala, Costa Rica, Honduras, and Nicaragua, and amounting to £163,000—the proportion which was assumed by Salvador was one-sixth, £27,200.
1828-1859: No interest was paid during this long period of turbulence and strife.
1860: Salvador compromised her share of the debt for 90 per cent. paid in cash.
1889: A loan for £300,000 was issued, bearing 6 per cent. interest and 2 per cent. accumulative sinking fund. It was offered by the London and South-Western Bank at 951⁄2per cent., and was specially secured on 10 per cent. of the Customs duties and the rights of the Government on the railway from Acajutla to Ateos (thirty-five miles), and in the proposed extension to San Salvador. Out of the proceeds of the loan a mortgage of the Government's interest in the portion of the railroad already constructed (Acajutla to Sonsonate), amounting to £183,000, was paid off. The extension of the railway was only continued for a distance of seven miles from Ateos to La Ceiba.
1892: Bonds for an amount of £500,000, bearing 6 per cent. interest and 1 per cent. accumulative sinking fund, were created by the Government and issued by Messrs. Brown, Janson and Co. to the contractor Mr. A. J. Scherzer, in pursuance of a contract made by the Government with Mr. Scherzer in 1891, for the purpose of the extension of the railway. These bonds were specially secured on 10 per cent. of the Customs duties, and also by a first mortgage on the railway line from Ateos to Santa Ana (thirty miles) when built. These bonds were not issued to the public, but were delivered from time to time to the contractor, against the engineer's certificates, as the works proceeded.
1894: A company called the Central American Public Works Company was registered by Mr. Mark J. Kelly in London, and Mr. Kelly was associated with Mr. Scherzer in carrying out this contract, and in the month of April a concession was obtained from the Government under which the contract of 1891 was cancelled. The Central American Public Works Company undertook to complete the line to Santa Ana; to build a branch from Sitio del Niño toSan Salvador (twenty-four miles), together with a deviation of one and a half miles at the port of Acajutla; to give the Government £70,000 in fully-paid ordinary shares of the company when issued; and to redeem the loans of 1889 and 1892. The Government, on its part, agreed to hand over to the Company the whole of the railways for a period of ninety-nine years, and to guarantee the Company for fifty years a net annual profit on working the railways of 6 per cent. upon the sum of £800,000, secured by a charge of 10 per cent. on the import duties.
A change of Government took place almost immediately afterwards, and, owing to the differences which then arose between the Government and the Company, the concession was declared void.
But in December a supplementary contract was entered into between the Company and the new Government, by which it was agreed that—(1) The £70,000 of shares of the Public Works Company were to be delivered to the Government by May 31, 1895 (this was done, and the Company took possession of the completed portion of the line and commenced the construction of the remainder); (2) the duration of the concession was shortened from ninety-nine to eighty years; (3) the guarantee was reduced from £48,000 a year to £24,000 during the construction of the line to Santa Ana, £36,000 during the construction to San Salvador, and the full £48,000 was not to be paid until the railway was entirely finished.
1898: In this year a new company, called the Salvador Railway Company, Limited, was formed to take over the concession from the Central American Public Works Company. Proposals were laid before the holders of the 1889 and 1892 loans to convert their bonds into mortgage debentures of the railway company.Some of the 1889 bondholders, however, declined to signify their adherence to the scheme, and it was thus found impossible to arrange for the release of the mortgage on the first section of the railway. The Central American Public Works Company had, moreover, undertaken to deliver to the Government all the bonds by December, 1898; they therefore approached the Government with the object of securing further legislation in order to get over the difficulty. In this they were not at the time successful, and the Government declined to remit to the company the sum due under the guarantee for the half-year ending December 31, 1898. The funds for the payment of the February and August, 1898, coupons on the 1889 bonds were sent by the Government direct to the London and South-Western Bank. The November 1897 drawing and May 1898 coupons on the 1892 bonds, and the July 1898 drawing and February 1899 coupons on the 1889 bonds, were not paid.
1899: On February 8 of this year a further contract was entered into between the Government and Mr. Kelly, representing the Central American Public Works Company, of which the following were the principal provisions: (1) The company was to hand over to the Government for cancellation the outstanding 1889 and 1892 bonds (in round figures amounting to £725,000) within six months from the date of ratification of the contract by Congress. The company might, however, leave outstanding £60,000 of the bonds if they could not make delivery of the whole of them, but on these they were to pay on their own account the same interest (6 per cent.) and amortization (2 per cent.), as the Government was under obligation to do. (2) The Government was to pay the company for eighteen years from January 1, 1899,a fixed annual subsidy of £24,000 in lieu of the previous guarantee, and to hand over all the railways free of charge. The subsidy was to be secured on 15 per cent. of the import duties, in respect of which the Government was to issue special Customs notes. These notes were to be handed to a bank named by the company, who were to sell them and collect the proceeds.
The railway company engaged themselves to complete the line to the Capital by June 30, 1900. If the bonds of the external debt were not handed over within the period stipulated, the Government was to have the right, subject to existing hypothecations, to take possession of the railways.
In April, 1899, an agreement was entered into between the Council of Foreign Bondholders, acting in conjunction with the Committee of 1889 bondholders, and the Central American Public Works Company, for the transfer to the Salvador Railway Company of the railways and concessions held by the Works Company, including the subsidy payable under the contract of February 8, 1899, on such terms as might be agreed between the Works Company and the railway company. The railway company were to issue (1) Prior lien debentures to the amount of £163,000, forming part of a total authorized issue of £250,000, and bearing 5 per cent. interest and 1 per cent. accumulative sinking fund, to be applied by purchase or drawings at par. Such issue to be for the purpose of providing the funds for the completion of railway, repairs, working capital, and expenses; (2) 5 per cent. mortgage debentures to the amount of £660,000, to provide for the cancellation of the outstanding bonds of the 1889 and 1892 loans, the debentures of the Public Works Company (£150,000), and other claims.
These debentures were to be redeemable by an accumulative sinking fund of 1 per cent. per annum, commencing from August 15, 1906, to be applied by purchases or drawings, at the price, in the case of drawings, of £103 for each £100 of debentures. The holders of the 1889 bonds were to receive, in respect of each £100 bond, £100 in mortgage debentures of the railway company, bearing interest from August 15, 1899. The 1889 bonds were deposited with the Council against the issue of negotiable receipts, with two coupons of £2 10s. each attached, payable out of the first two instalments of the subsidy in respect of the coupons on each bond of £100, due February 15 and August 15, 1899.
This arrangement was accepted by the holders of the bonds of the 1889 and 1892 loans, who by the necessary majorities authorized the trustees of the loans to release the respective mortgages. It was also approved by the holders of the debentures of the Public Works Company, and was duly carried into effect.
STATEMENT OF REVENUE AND EXPENDITURE FOR THE LAST TEN YEARS.
Year.Expenditure.Deficit.$$$19017,556,721.567,284,264.51727,542.9519026,702,021.708,459,460.841,757,439.1419036,792,045.697,704,756.34912,710.6519048,060,689.058,759,404.63698,715.581905;8,536,443.0710,045,413.031,508,969.9619068,484,419.7812,246,825.763,762,405.9819078,669,189.1211,389,642.402,720,453.28190810,676,338.9212,656,656.611,980,317.69190910,776,028.6511,856,002.211,139,903.56191010,620,865.5713,027,546.962,406,681.39$85,814,833.11$103,429,973.49$17,615,140.28
It will be observed that, while the general revenue of the Republic had expanded considerably during the past decade, having, indeed, increased about 50 per cent., the expenditure had, unfortunately, expanded also, and to a greater degree, leaving an annually increasing deficit to be met. The reason for this during the latter few years is clear—the unfortunate political troubles which were thrust upon the Republic by the acts of certain revolutionists instigated by the evil genius of Central America, ex-President J. Santos Zelaya, and which turned what might have been a fairly profitable period into a disastrous one, from a financial aspect.
Nevertheless, there is no reason to adopt a despairing view of the Salvadorean national finances, since the resources of the country are very elastic, and their development is but in its infancy.
It is much to the credit of the Government, both the present and that which was lately in office, that the situation should have been so boldly and frankly met, the whole position being explained and true reasons given. Everyone must think the better of the authorities for their honesty in dealing with the nation, an honesty which is, unfortunately, rare, not alone among Latin-American States, but also among European Governments of much older growth and wider experience. Don Manuel Lopez Mencia, the ex-Minister of Finance, who is a thoroughly capable and experienced financier, fully grasped the necessities of the situation, and before retiring from office freely criticized his own Department, offering many valuable and timely suggestions for improving it and for placing the finances of the country upon a more satisfactory basis. I believe that the present year (1911)is destined to afford a much more encouraging condition, and a continuation of the present economical and severe retrenchment policy in force; the deficit, which has made an unwelcome appearance in each year's accounts over a period of a whole decade, will gradually give place to a surplus. Naturally, all depends upon internal peace being preserved and freedom from foreign political troubles; both of which, happily, at the time of writing seem to be well assured.
In regard to the general financial conditions of Salvador, which are at the present time in a much more satisfactory state, the following particulars will be of interest:
PUBLIC DEBT.
The composition of the Public Debt on December 31, 1909, stood as follows:
Gold Liabilities.
$ Gold$ Gold.Sundry cash creditors906,585Bills payable363,545National indemnity bonds73,656External loan principal4,744,000External loan interest and expenses3,657,6948,401,694$9,745,480 Gold.= at 150 premium,$24,363,700 Silver.
Silver Liabilities.
$ Silver.Sundry creditors930,550Salvador bonds (principal and interest)3,564,207Administrative salaries, expenses, etc.836,299Deposits2,629Funds to be applied to special purposes88,022Various bonds113,1405,534,848Total$29,898,548Silver.
The Public Debt of the Republic of Salvador on December 31, 1901, amounted to $10,666,584 (gold) = £2,133,517, and $6,207,059 (silver) = £517,256. Reduced to the silver unit, the total Debt amounted to $32,873,520.
The Customs Revenues for 1910 show a small decline over those of 1909, the difference being $3,784.00.
Import Duties.Export Duties.Sonsonate$3,522,875.05$430,359.84La Unión$1,086,766.03$114,528.03La Libertad$554,400.57$125,926.49Import Dutiesat the General Treasury (parcels post)$169,638.59Importsat El Triunfo$215,835.19Totals[2]$5,333,680.24$886,649.55
The Government's whole Revenue during the first half of 1910 amounted to $2,972,501 (gold), and its expenditure to $2,677,431 (gold).
The total import and export duties for the two years 1909 and 1910 are as follows:
1909.1910.Imports$4,176,931.56Imports$3,745,249.19Exports$8,481,787.65Exports$9,122,295.09(These figures are in U.S.goldcurrency.)
BUDGET FOR 1910-11.
The estimates for the financial year 1910-11, approved by the National Assembly, and published in theDiario Oficialof June 6, 1910,[3]were practically identical with those for the preceding year.
The details are shown below:
ESTIMATES OF REVENUE, 1910-11.Customs Revenue.Imports:$ Silver.Import duties3,100,000Fiscal tax of 30 per cent.600,000Taxes of $3.60, $2.40, and $0.50 gold per 100 kilos1,952,500Storage, etc.285,000Sundry receipts148,500Exports:Coffee export duty of $0.40 gold per 46 kilos600,000Coffee export duty of $0.121⁄2for internal development in the Capital75,000Coffee transit permits80,175Tax of $1.50 per 100 kilos in favour of Central Railway4,000Sundry receipts66,557Internal Revenue.Liquor tax2,500,000Stamps and stamped paper264,500Internal Excise126,500Post-Offices, Telegraphs, and Telephones270,250National Printing-Office25,000Penitentiaries30,000Powder, saltpetre, and cartridges65,000Public Registry38,000Sundry receipts88,800Total$10,319,782ESTIMATES OF EXPENDITURE, 1910-11.$ Silver.National Assembly40,980Presidency of the Republic41,340Department of Finance670,256Department of Internal Development636,800Department of Government1,250,463Department of Foreign Affairs116,080Department of Justice507,192Department of Public Instruction714,652Department of Beneficence529,336Department of War and Marine2,573,510Department of Public Credit3,291,260Total$10,371,869SUMMARY.Revenue$10,319,782Expenditure10,371,869Estimated deficit$52,087
In regard to this Estimated Deficit, which in any case is very small, it is to be mentioned that in November of this year (1911) an additional export tax upon coffee, of 30 cents (gold) per 100 kilogrammes comes into effect, although only for two years, and it is expected to produce $180,000 (gold). This additional revenue will wipe out the small anticipated deficit, and leave a considerable surplus, for the present year.
ditto
ArtilleryArtillery on Parade Ground, San Salvador Barracks.
Artillery on Parade Ground, San Salvador Barracks.
Artillery on Parade Ground, San Salvador Barracks.
SalvadorversusHonduras and Nicaragua—Attitude of the President—Proclamation to the people—Generals Rivas and Alfaro—Invasion of Salvador—Ignominious retreat of enemy—Conciliatory conduct of General Figueroa—Character of Salvadorean people—Treachery of Zelaya.
SalvadorversusHonduras and Nicaragua—Attitude of the President—Proclamation to the people—Generals Rivas and Alfaro—Invasion of Salvador—Ignominious retreat of enemy—Conciliatory conduct of General Figueroa—Character of Salvadorean people—Treachery of Zelaya.
There is no question that but for the prompt and conciliatory action of General Figueroa the events which took place in the last months of 1907 might well have involved the whole of the States of Central America in a long, serious, and sanguinary conflict. As it was, sufficient provocation was given to Salvador, whose territory was invaded, and many of whose citizens were either injured or robbed. In this month, the invaders who came from Honduras were largely composed of Honduraneans, Nicaraguans, Salvadorean revolutionists, and American filibusters, who actually seized the port of Acajutla, and taking forcible possession of engines and cars belonging to the Salvador Railway Company, reached as far as the city of Sonsonate. The invading forces were led by Generals Manuel Rivas and Prudencio Alfaro, the latter being General Santos Zelaya's candidate for the Presidency of Salvador.
It was at this time that General Figueroa issued a fervent and eloquent appeal to the loyalty of his troops and his countrymen. In exhorting them to deeds of valour, he declared that he himself wouldlead his army in defence of the national honour even to death, and his previous military experience would certainly have enabled him to have carried them to success. General Figueroa's "Proclamation to the Salvadorean People" is worth quotation in these pages, and I therefore give it in full as follows:
"Compatriots: General J. Santos Zelaya, in violation of the faith imposed in international agreements, has broken his solemn obligations contracted through the intervention of the Governments of the United States and Mexico. At daybreak this morning he surprised the small military force at Acajutla, and has landed Nicaraguan forces with the object of conquest. Before this brutal offence which the Nicaraguan Government has committed against us, we should all, as one man, gather round the flag of our country and defend it, letting our blood flow rather than allow it to be stained by the adventurers who, in an evil hour, seek to defile it. The national honour, the deeds of our forefathers, the future of our children, and the lofty legends of our people, cry to us to arise and punish the insolence of the Nicaraguan President, and to preserve, not only our military glory and our interests, which recent events in Honduras have shown to be in danger, but the respect that our heroic army has inspired whenever it has been called upon in defence of our country."Soldiers: Do not permit the consummation of this insolent attempt in the annals of an enlightened people which would fill us with shame and opprobrium, rendering us unworthy to preserve intact the sacred treasure of our autonomy, the honour of our victorious banner and our sovereignty. Before permitting the arms of an audacious adventurer to violate the soil of our beloved country, whose safeguard is entrusted to the national army and to your undoubted patriotism, prefer yes, a thousand times, death with honour on the battle-field, where I will accompany you even to death."I have full confidence in your loyalty and in your military honour, and I therefore place in your hands the sacred trust of the national defence."Free and heroic peoples never retreat before the enemy, for they carry in their hearts the conscience of doing their duties and confidence in the right, which assist all worthy and independent peoples to repel aggression against their autonomy."Salvadoreans: In this movement be assured that I shall save, untarnished, the honour of the country and the security of your homes, which are now threatened by the mercenary soldiery of the Nicaraguan ruler."Your chief and friend,"F.Figueroa."San Salvador,"June 11, 1907."
"Compatriots: General J. Santos Zelaya, in violation of the faith imposed in international agreements, has broken his solemn obligations contracted through the intervention of the Governments of the United States and Mexico. At daybreak this morning he surprised the small military force at Acajutla, and has landed Nicaraguan forces with the object of conquest. Before this brutal offence which the Nicaraguan Government has committed against us, we should all, as one man, gather round the flag of our country and defend it, letting our blood flow rather than allow it to be stained by the adventurers who, in an evil hour, seek to defile it. The national honour, the deeds of our forefathers, the future of our children, and the lofty legends of our people, cry to us to arise and punish the insolence of the Nicaraguan President, and to preserve, not only our military glory and our interests, which recent events in Honduras have shown to be in danger, but the respect that our heroic army has inspired whenever it has been called upon in defence of our country.
"Soldiers: Do not permit the consummation of this insolent attempt in the annals of an enlightened people which would fill us with shame and opprobrium, rendering us unworthy to preserve intact the sacred treasure of our autonomy, the honour of our victorious banner and our sovereignty. Before permitting the arms of an audacious adventurer to violate the soil of our beloved country, whose safeguard is entrusted to the national army and to your undoubted patriotism, prefer yes, a thousand times, death with honour on the battle-field, where I will accompany you even to death.
"I have full confidence in your loyalty and in your military honour, and I therefore place in your hands the sacred trust of the national defence.
"Free and heroic peoples never retreat before the enemy, for they carry in their hearts the conscience of doing their duties and confidence in the right, which assist all worthy and independent peoples to repel aggression against their autonomy.
"Salvadoreans: In this movement be assured that I shall save, untarnished, the honour of the country and the security of your homes, which are now threatened by the mercenary soldiery of the Nicaraguan ruler.
"Your chief and friend,"F.Figueroa.
"San Salvador,"June 11, 1907."
It is satisfactory to know that the Presidential call to arms, in addition to the strong personal influence which General Figueroa wielded, shortly afterwards put an end to the trouble that had threatened at one time to assume the most serious aspects, and to have involved the whole of the five States in a fierce struggle. Now that the threatening cloud has been dispersed—it may be hoped for all time—it is possible to smile at some of the incidents which have been related in connection with the embroilment. It is, for instance, related that the invasion of Salvadorean territory, the first step of which took place in the month of June, 1907, failed of achievement principally on account of a personal dispute which broke out between the two Revolutionary Generals, Rivas and Alfaro.
It is alleged that the former, on reaching the town of Sonsonate, after landing successfully at Acajutla, proceeded to the National Bank in that town, where he overawed the cashier (not a very brilliant achievement, since he was only a boy) and raised what is known as "a forced loan," departing heroically with the sumof $20,000 in silver, and nobly handing over to the bewildered and trembling bank official a receipt for that amount signed by himself as the "General of the new Salvadorean Army." On learning what his brother-commander had done, Alfaro, it is said, strongly objected to raising—"stealing," he described it—money in this manner; and so emphatic was his language, and so indomitable his decision to have none of it, that General Rivas refused on his part any longer to act with him, and the two leaders parted there and then, Rivas proceeding on his way to the Capital at the head of his following, and Alfaro marching with his to Santa Ana.
Before leaving one another, it was arranged, however, that the Republic of Salvador should be divided in half, General Rivas to rule the Eastern zone, with headquarters at San Salvador, and General Alfaro to rule the Western zone, with headquarters at Sonsonate. To this proposition General Alfaro also strongly objected at first, but consented reluctantly later; and while the two future victors were quarrelling as to what they would do with the territory which was not yet theirs, a messenger arrived hot-haste from the Capital with the unpleasant tidings that General Figueroa was coming in person with a train-load of troops to Sonsonate.
Thereupon followed a hasty and most undignified retreat to Acajutla, and an eyewitness has left a humorous description of how the brave invaders, in their desire to get out as soon as possible, precipitated themselves into small boats, barges, and lighters, or any kind of thing that floated, making their way to the gunboatMomotombo, up the sides of which they scrambled helter-skelter, glad enough to be safely offSalvadorean territory and once more on their way to the refuge of the Nicaraguan port of Corinto.
The gunboat was obliged, as all vessels are, to anchor a half-mile from the Acajutla pier, men, arms, and ammunition having to be conveyed over that distance in any kind of boat of which they could command the use.
At an early period of the invasion it is certain that General Figueroa had the situation well in hand. He was always popular with the army, and he likewise possessed the complete confidence of the Salvadorean people, who felt that in his strong hands the safety of the Republic lay. Moreover, by his excellent system of organizing the Intelligence Department of his army, and the care with which he had selected his officers, General Figueroa was always in complete possession of the plans and actions of the opposing force; and even when these latter fatuously supposed that he knew nothing, and was doing nothing, to check their advance, General Figueroa was laying his plans with consummate ability, and, as we now know, he ultimately executed them with complete success.
Dr. Alfaro, who for the nonce had become a "General," was never an opponent worth much consideration; while General Rivas only displayed any marked ability when conspiring and organizing foreign troops, destined to be led to battle, when led at all, by others than himself. The only man who had any chance of making serious difficulty, and who might have fostered formidable trouble, was Barahona, of whose actions and intentions the President was always fully aware, and who at the psychological moment consigned him to the security of a prison. And there he kept him until the worst trouble was over.
The conciliatory measures which were adopted at the beginning by General Figueroa and his Government were adhered to throughout the upheaval, and it is only right that impartial history should record the dignified and sane proceedings which characterized the attitude of the Republic of Salvador at this period. The views which General Figueroa entertained and acted upon throughout are clearly reflected in an official communication addressed to a well-known American, the then Consul-General for Salvador in the United States. General Figueroa said:
"Untiring enemies of the peace and repose of our people have once more endeavoured to create disturbances; for some time past my Government has received notices of what was transpiring, and of the progress of the conspiracy, together with considerable data. This Government did not, however, act hastily, assuming, rather, an expectative attitude, but nevertheless following closely the trend of affairs, until the moment had arrived when active work was to be begun."This Government early received advices from various parts of the country, notifying it of suspicious movements on the part of the enemies of the Republic. It was also noted that many of these left the Capital two or three days before for other towns, and all of them were closely followed. The Government was prepared for all emergencies; barracks were ready, and the proper orders given to crush any movements on their part. Consequently, when numbers of these conspirators formed in groups around such towns as Sonsonate and Ahuachapán, many were captured. The Government is now in possession of the persons of most of the authors of the conspiracy, and the guilty ones are being proceeded against legally. Fortunately, the trouble has not interfered with the progress of the country, nor with the gathering of the coffee crop which is now in progress; while the Government has received assurances of sympathy and support from the great majority of law-abiding citizens throughout the country."
"Untiring enemies of the peace and repose of our people have once more endeavoured to create disturbances; for some time past my Government has received notices of what was transpiring, and of the progress of the conspiracy, together with considerable data. This Government did not, however, act hastily, assuming, rather, an expectative attitude, but nevertheless following closely the trend of affairs, until the moment had arrived when active work was to be begun.
"This Government early received advices from various parts of the country, notifying it of suspicious movements on the part of the enemies of the Republic. It was also noted that many of these left the Capital two or three days before for other towns, and all of them were closely followed. The Government was prepared for all emergencies; barracks were ready, and the proper orders given to crush any movements on their part. Consequently, when numbers of these conspirators formed in groups around such towns as Sonsonate and Ahuachapán, many were captured. The Government is now in possession of the persons of most of the authors of the conspiracy, and the guilty ones are being proceeded against legally. Fortunately, the trouble has not interfered with the progress of the country, nor with the gathering of the coffee crop which is now in progress; while the Government has received assurances of sympathy and support from the great majority of law-abiding citizens throughout the country."
In this reference to the trifling effect occasioned to the coffee crop by the political disturbances, the President was a little premature. The subsequent depression which was experienced in commercial circles generally was undoubtedly occasioned by these disturbances, although the consequence only proved transient.
All travellers, foreigners and natives alike, who happened to be in Central America at this time, were well aware of the provocative part which President Santos Zelaya of Nicaragua was playing; for many years he had been acting as the evil genius of this Republic, and his misgovernment and brutalities to his own people met with general condemnation.
There can be no question that the revolution which was started in Salvador, but which was so promptly and effectually suppressed, was promoted by Zelaya, who, rightly or wrongly, imagined that at the psychological moment he would meet with support, not alone from Honduras, but from the United States, either directly or indirectly.
There is sufficient evidence on record to prove that Dr. Prudencio Alfaro, who, since the death of General Regalado during the war with Guatemala in 1906, had attained some slight popularity in Salvador, was the instrument through whom General Zelaya hoped, and indeed endeavoured, to carry out his plans. The conquest of Salvador was only one of them, since, as I have mentioned in another part of this volume, it was the ambition of Santos Zelaya to reconstitute a Federation of the five Central American States, and then to elect himself first President.
It was with the financial and physical assistance of Zelaya that Dr. Alfaro engaged the Nicaraguangunboat to convey him and other conspirators from Corinto to Acajutla in order to spy out the land, and to industriously lay the seeds of revolution. It was nothing to Zelaya that he should allow one of the Government gunboats to be employed in making warfare against a friendly power, with which he had signed a treaty of peace only a very few weeks before, or to supply from the national treasury the funds for letting loose a horde of armed ruffians upon a neighbour's territory.
I have been shown documentary proofs of the arrangements upon which Zelaya had been employed for many months previous, and which provided for the invasion of Salvador at four different points. From time to time changes were made in thepersonnelof the Nicaraguan commanders, but the names upon the lists which were shown to me were not in all cases the same as those of the men who actually took part in the abortive invasion.
I remember, for instance, observing the name of General Salvador Toledo, who had previously been deputed to command the invading army which was to enter Salvador from Honduras, near the Guatemalan frontier; and also that of General Estrada, who had been nominated to strike at the enemy with the Northern forces at the proper time. This General Estrada had been in command of the Honduranean forces between Puerto Cortes and the Salvadorean line, and he it was who numbered among his followers all the scum of the population, mostly consisting of ex-prisoners and exiles, who were willing enough to fight against their own country's soldiers, side by side with Honduraneans.
Another name which was on the officers' list wasthat of General Cierra, who was to have entered the Republic of Salvador from the south, with the intention of capturing the port of La Unión, and of meeting the forces of Generals Cristales and Presa. According to the calculations which were then made, it was believed that General Cierra had only 3,000 men with him.
General Figueroa at this time wisely declared the City of Salvador "in a state of siege," which is the equivalent of suspension of political guarantees, to enable summary action to be taken against political offenders or even suspects; a condition afterwards extended to the whole country; and his instructions to the Governors of the several Departments no doubt saved the Central Government from considerable embarrassment as the result of the rising. Those who led the insurrection had counted upon receiving support from the public, which, however, they did not realize, and the lack of this made the capture of the leaders by the Government troops a matter of comparative facility. Secondly, much of the inconvenience which would have followed a general disturbance of the affairs of the country at that time, and which would have caused both the Government and the people losses upon coffee shipments, was spared them, but not altogether obviated.
As we have seen, it was altogether a clumsy attack which had been planned, and had better local knowledge prevailed it would have been ascertained that the prestige of the existing Government stood too high, and the personal popularity of General Figueroa was too great, to have ever endowed this rising with any great chances of success.
In this connection I think I may well quote anextract from an official statement which was made inEl Diario de Salvador, one of the most powerful papers in the Republic, of which I attach the following translation:
"In our edition of yesterday we published the decree of the Supreme Executive power declaring the Republic to be in a state of siege. According to the terms of this decree, the Government has been obliged to take extreme measures, owing to the attempt of its enemies to create a revolutionary movement calculated to cause a radical change in this Government."Fortunately for the Administration, the plot was discovered in time, and repressive measures were at once adopted which rendered the movement impossible of consummation. But, if it is certain that the internal peace has not been disturbed, such is not the case with the credit of the country. Furthermore, the fact that the attempt was made at the time for harvesting coffee aggravated the situation somewhat for the moment, and threatened to interfere with the gathering of this important crop on which much of the prosperity of the country depends; but the action of the Chief Executive in issuing orders to the Governors of the several Departments has reduced this evil to a minimum."In his instructions to the Governors, the Minister of the Interior provided in part that, notwithstanding the state of siege, the greatest latitude must be given persons and workmen who were not actually under suspicion, but insisted on the strict guarding of public order. Men in the discharge of their duties, however, were allowed to pass toward the Capital of the country without the necessity of presenting passports. This referred particularly to merchants, managers of plantations, and day labourers."As will be seen," continued the journal referred to, "the circular does not mention the municipal elections which are soon to take place throughout the interior, but the President of the Republic has authorized us to make known his desires that these elections be held with perfect freedom, and be unhampered by the decree of the Executive."
"In our edition of yesterday we published the decree of the Supreme Executive power declaring the Republic to be in a state of siege. According to the terms of this decree, the Government has been obliged to take extreme measures, owing to the attempt of its enemies to create a revolutionary movement calculated to cause a radical change in this Government.
"Fortunately for the Administration, the plot was discovered in time, and repressive measures were at once adopted which rendered the movement impossible of consummation. But, if it is certain that the internal peace has not been disturbed, such is not the case with the credit of the country. Furthermore, the fact that the attempt was made at the time for harvesting coffee aggravated the situation somewhat for the moment, and threatened to interfere with the gathering of this important crop on which much of the prosperity of the country depends; but the action of the Chief Executive in issuing orders to the Governors of the several Departments has reduced this evil to a minimum.
"In his instructions to the Governors, the Minister of the Interior provided in part that, notwithstanding the state of siege, the greatest latitude must be given persons and workmen who were not actually under suspicion, but insisted on the strict guarding of public order. Men in the discharge of their duties, however, were allowed to pass toward the Capital of the country without the necessity of presenting passports. This referred particularly to merchants, managers of plantations, and day labourers.
"As will be seen," continued the journal referred to, "the circular does not mention the municipal elections which are soon to take place throughout the interior, but the President of the Republic has authorized us to make known his desires that these elections be held with perfect freedom, and be unhampered by the decree of the Executive."