Isthmian Canal, times have been fairly good. The value of the sugar crop is larger than in previous years, and the cotton industry in the island may now be said to be established. The revenue for 1904-5 was 185,0561., and the expenditure 183,2971. The value of the imports was 1,069,3127., an increase of 247,0001. over the previous year, and the exports figure at 627,6781., an increase of 207,8381., sugar alone showing an increase of 180,4621.

The tercentenary of the English occupation of Barbadoes was celebrated on November 30 by services in the cathedral, processions and official entertainments. An address was forwarded to King Edward recounting the historic facts, and referring with pride to the loyalty of the population for three centuries.

In the Leeward Island group the revenue was (1904-5) 124,1487., the imports 377,7001., and the exports 311,4691. Antigua is in a bad financial condition. The sugar industry is holding its own on the best managed estates, and the minor industries in the various islands show vitality. Dominica seems to be prospering, and Nevis prospects in cotton growing are fair. St. Kitts and Nevis no longer depend on Imperial grants-in-aid.

Trinidad, which has varied resources that have been developed side by side for many years, continues prosperous. The revenue was (1904-5) 811,6147., the highest for several years, notwithstanding the low shipments of asphalte. And trade is increasing in spite of the troubles in Venezuela and the penalising in that Republic of commerce with Trinidad by the reimposition of a 30 per cent. duty on imports. The exports were of the value of 2,479,274l., an increase of 203,9331.; and the imports 2,629,0517., an increase of 102,6011. Here also the sugar industry seems to have entered once more upon a period of prosperity. Extensive oil-bearing beds have been discovered in the Colony.

In Jamaica there has been some grumbling at the contemplated withdrawal of the troops from the West Indies and at the disestablishment of the dockyard at Port Royal, the North American and West Indian Squadron (now the Particular Service Squadron) no longer having its base in the West Indies. The negro of Jamaica is not quite so amenable to authority as he might be, and it remains to be seen whether the misgivings of some at the withdrawal of the troops will be warranted by events. Both sugar and banana cultivation appeared to be prospering. The imports in the year ending March 31, 1905, however, were valued at only 1,682,000l., and the exports at 1,437,000l., in both cases the lowest figures recorded since 1898. For the financial year 1904-5 the revenue was 883,450l. and the expenditure 962,000l. There was some discussion during the year of the possibility of the administration of the West Indies being committed to the Dominion of Canada by the incorporation of the islands. The idea has arisen out of the

growing commercial intercourse between the northern Colony and the islands; but at present it has only an academic interest. In Martinique there was, in June, a somewhat alarming eruption of Mount Pelée, but the fall of cinders and mud did not extend to the inhabited district devastated by the eruption of 1902.

Santo Domingo has been in a state of chaos during the year, and the United States Government established what was thought to be a virtual Protectorate. This matter is, however, dealt with in the United States section, and all that need be said here is that the internecine struggle has continued, and at the close of the year fresh insurrectionary conflicts were reported.

VI. SOUTH AMERICA.

Venezuela under President Castro has continued in a troublous condition, having been in difficulties both with France (on account of the French Cable Company, which was accused of aiding the Matos Rebellion and had had its concession confiscated) and with the United States. In his June message President Castro spoke of "a slight difference" with the latter country. He stated that an agreement had been made with the German Government for consolidating the German debt. In July it was announced that 2,797,959 bolivars (about 111,9197.) had been paid to the German and British Legations as the first six months' instalment of the British and German claims. The country was still in a disturbed condition, notwithstanding the granting of an amnesty to expatriated politicals and the release of a large number of political prisoners.

Brazil has been subject to internal troubles during the year, and these culminated in a mutiny in November of the garrison of the fortress of Santa Cruz, in the bay of Rio de Janeiro. It was suppressed by Government troops. A supposed plot against Brazil was unearthed in May, a Spaniard being arrested in Madrid, at the instance of the Brazilian Minister there, and charged with organising a force to act in the Cunani territory to the south of French Guiana. He was supposed to have enlisted officers in Europe and to have recruited 12,000 men ; but the Madrid magistrate did not believe the story and ordered the man's release. By the Berne award Cunani is Brazilian territory, but it is practically an independent republic of an unorganised character. It appears that there has been a great decline in the exports of sugar, which fell from 4,032,000 tons in 1903 to 1,770,000 tons in 1904. An attempt has been made by the permanent committee of the Sugar Convention to exclude Brazilian sugar from the markets of the signatory countries on the ground that Brazilian fiscal legislation amounts to an indirect bounty on exports; but this view was contested by Brazil, which had the support of the British delegate. In 1904, according to information published by the Brazilian

Customs Department the total imports amounted to 25,915,000l. (1,700,000l. more than in 1903), and the total exports to 39,439,000l. (2,500,000l. more than the previous year). In December there was some trouble with Germany on account of the action of officers of the German gunboat Panther, who, it was alleged, landed in Santa Catherina and seized a young German for non-performance of military service. The German story was that they had retaken a deserter who had been induced by the Brazilian German to leave the ship. The exact facts were not cleared up, but Brazil complained of a violation of her sovereign rights. Germany admitted that the officers and men who went in search of the supposed deserter had exceeded their instructions and expressed regret for the incident.

The Presidential message to the Legislative Assembly of Guatemala, in March, spoke of large grants of land to municipalities and private persons for the extension of agriculture. The fiscal revenue for 1904 was $30,316,413—an increase of $13,500,000. In 1904 the exports exceeded the imports by $2,510,723 (gold). Land is being distributed in small lots to agriculturists, and the railway to the Atlantic is being actively proceeded with. The new President is Don Manuel Estrada Cabrera, whose appointment was thought to be a guarantee of order in the Republic.

Chili had an uneventful year. The President, in his message in June, announced that the Chilian-Argentine boundaries had been finally demarcated, save for certain minor points. A treaty of peace with Bolivia had been signed-a treaty to some of the stipulations of which Peru had taken objection. Chili had suggested a similar treaty to Peru with the object of putting an end to the sterile discussions between the two Powers. The message told a gratifying story of internal progress. The revenue for 1904, with a balance from the previous year, was $153,543,808, and the expenditure $138,425,177. But over $16,000,000 was applied to the service of metallic conversion, and the deficit was therefore $1,227,921. The estimated expenditure for 1905, with this deficit, was $137,500,000; and the revenue was estimated at $129,000,000; but it was hoped a deficit might be avoided by economy in outlays. The foreign trade of the Republic amounted to $372,804,502 (gold)—an increase of over $36,000,000, due chiefly to the nitrate trade.

In Paraguay the chief event was the disbandment of the Army after the peace of Pilcomayo in December, 1904, and the work of a Commission for the satisfaction of claims for losses.

incurred in the civil war. The paper money in circulation on February 31, according to the President's message, was $30,149,367. The Paraguagan imports in 1904 were valued at $3,566,000 (gold), and the exports at $3,179,000 (gold). The external debt at the end of 1904 was $4,598,351. Of the internal debt nothing was known because of the difficulty of getting out

the accounts. In December the Congress deposed the President and appointed Dr. Baez in his stead.

Argentina had a somewhat troubled opening to the year, and a state of siege was proclaimed at Buenos Ayres owing to a military outbreak, Dr. Manuel Quintana's Presidential message in May offered a scheme of electoral reforms, a gradual decrease of Customs duties, the abolition of export duties and a Bill "definitely fixing the monetary régime of the Republic." On December 31, 1904, the external debt amounted to 75,154,5331. The result of the financial year 1904 had been a surplus of 2,252,2751. There had been during 1904 199,888 immigrants and 105,360 emigrants. The Address gave a satisfactory account of the economic condition of the country, and recommended the spending of money on a fleet. The Senate in August authorised the expenditure of 200,000l. on river gunboats, etc. Some of the officers concerned in the military rising were sentenced to long terms of imprisonment. New ports had been opened and railway construction was proceeding.

In Uruguay there has been slow recovery from the internal convulsions of the previous year, and the raising of new loans.

In Peru there was nothing of importance to note except that at one time there was risk of a rupture with Chili on account of the Tacua-Arica territory, which passed to Chili after the war. H. WHATES.

CHAPTER IX.

AUSTRALASIA.

I. THE AUSTRALIAN COMMONWEALTH.

THE year 1905 brought to the Commonwealth a remarkable access of material prosperity, but in no way diminished the political unrest that has troubled the island continent for so long. Since the year 1903, which saw the break-up of the longest and most disastrous drought the country has known, there has been a succession of good seasons. The bounteous and well-timed rainfall of 1905 proved not less beneficial than that of 1904, and at the end of the year the pastoralists had recovered much of the ground lost during the ten years' drought. It is not yet possible to calculate the increase of the flocks with any accuracy, but conservative estimates put the figure at from 8,000,000 to 10,000,000. The cattlemen also enjoyed a good year.

Even more flourishing was the condition of the agriculturists. The most authoritative estimate for 1905 puts the wheat yield at 62,000,000 bushels, a pleasing contrast to the 12,000,000 bushels reaped in the black year of 1902. The dairying, fruitgrowing, wine-making and other primary industries have all shown remarkable advance, and the result has been a general

demand for agricultural land, which, in some States, has exceeded the supply.

There was also a genuine revival of mining throughout the continent. The gold yield, it is true, was slightly less than in the preceding year. This slight decrease was more than compensated, however, by the increased production of silver and the baser metals. The revival, so conspicuous in the great white-metal field of Broken Hill, was due to two causes—a heavy rise in the prices of silver, lead and zinc, and the discovery of improved processes for treating the complex zinciferous ores.

The trade figures are not yet available, but it is confidently believed that they will surpass those of the record year 1904. These are in themselves very remarkable, the value of exports being 55,217,1797., an increase of 9,638,2381. on the preceding year. Imported goods were worth 34,628,7331., a decrease of 1,615,720. It will be noticed that the value of exports exceeded the imports by 20,588,440l., or more than the 18,000,000l. which is required to pay the interest on Australia's public and private borrowings. These figures are independent of inter-State trade, the records of which can only be instructive when given in greater detail than our space allows.

Financial confidence, shattered by the crisis of 1893, has been slower of recovery, the Socialistic tendency of both Commonwealth and State legislation being answerable for a natural timidity among investors. Taking advantage of the conservatism of small capitalists, the State of Victoria made arrangements at the end of the year for raising locally the sum of 1,500,000l., in partial redemption of a loan of 5,000,000l. which falls due during 1906. When the year closed, the success of this local loan was assured, and a new era in Australian State finance was thus inaugurated.

The stimulus given to the local manufacturer by the abolition of inter-State tariffs at the Federation becomes annually more apparent. It is aided by a growing sentiment in favour of Australian-made goods, finding expression in what is known as the "Made in Australia" movement. Lord Northcote, the Governor-General, is foremost in this movement, and with Lady Northcote seizes every opportunity of affording practical encouragement to the Australian manufacturer.

Anniversary Day-26th January-was celebrated in Melbourne by the opening of an exhibition of goods of all kinds made in Australia. At the same time the shopkeepers were urged to make special display of locally made goods, and to show large and striking placards bearing the words "Made in Australia." The exhibition, which was promoted by the Australian Natives' Association, was in every way a success, and the movement so initiated promised to exercise a permanent influence upon Australian trade.

Industrially, then, all went well with Australia during the year 1905. Politically, much seems to have gone amiss.