Part 1 — CHAPTER VIII. AMERICA. (continued 2)

An agreement was arrived at in June between Great Britain, the United States and Holland to withhold support from any of their respective nationals claiming, directly or indirectly, "any right or title or interest in oil properties acquired since April 24 by reason of the cancellation of contracts or leases, or by reason of the confiscation by de facto authorities of properties on the ground of default of contractual obligations or non-compliance with legal requirements, provided that such default or non-compliance is unavoidable because of military operations or political disturbances."

In Panama the Canal was unofficially opened for general traffic on August 15, the United States War Department steamer Ancon, of 6,000 tons net, going through the locks at the head of a procession of vessels. Barge traffic had passed through earlier, and a number of ocean steamers did so later, but a landslide in October blocked the waterway for a few days and other interruptions occurred in November and December. A report on the work of the Sanitation Department showed a steady improvement in the sickness and death rates among the employees on the Canal and the Panama Railway. Yellow fever and plague had disappeared, malaria had diminished greatly. The death rate of the whole population of the zone, including the towns of Colon and Panama, was 49.94 per 1,000 in 1905, and was reduced to 20.49 in 1912 and 23.57 in 1913. The expenditure on the Canal by the end of 1913 stood at 65,000,000l. In November rules were promulgated on the use of the Canal by belligerents.

In his Message to the Assembly of Guatemala, in March, President Estrada Cabrera announced that the Government had replied to the representations of the British Foreign Office, requesting the restoration of the revenue given as a guarantee for the service of the 4 per cent. external debt, by an agreement made direct with the representatives of the bond-holders.

A treaty between Nicaragua and the United States was before the U.S. Senate at the close of the year (p. 461). The other Central American Republics had little history except that of financial distress consequent upon the war.

V. WEST INDIES AND THE GUIANAS.

The West India Islands and British Guiana had an uneventful and fairly prosperous year until the outbreak of war, nor do their commercial interests seem since then to have been materially affected. The war stimulated the loyalty of the people and caused less apprehension than might have been expected, having regard to the concentration of the Fleet in home waters and the defenceless condition of the archipelago, in which there were German cruisers late in July, which are believed to have cut the cable on August 3. It was at first thought that the cable had broken owing to an earthquake at Jamaica on that day, but the view of the repairers was that it had undoubtedly been cut. On the defect being remedied the West Indies learned that war had been declared. On October 20 the Governor of Jamaica was able to report that matters had proceeded normally. That had been the case elsewhere. There had been no excitement and no unrest; the bank returns showed an increase of deposits since the opening of hostilities,—one of many signs that the island was recovering from the depression of 1913. The people had displayed a spirit of the greatest loyalty and he had received a large number of offers of personal service. His language is applicable to other islands and the mainland colony. Many West Indians came to England and enlisted in the new army. Though the tide of war did not reach our possessions in the Caribbean and the Guianas, the fact that Germany was at war with France and Great Britain opened up new possibilities in the Western world south of the United States, in the event of German success. So far as can be judged the normal life of the colonies was pursued, but the war checked development projects. Thus no progress has been made with the scheme for opening up the hinterland of British Guiana by a railway. The proposal of the Governor, Sir Walter Egerton, awaits the decision of the Colonial Office. A loan would be required and the chances of such legislation in the Imperial Parliament at an early date may have diminished to vanishing point since August. The need of railway enterprise in this long-neglected colony—the El Dorado of Raleigh—was illustrated during the year by the authenticated discovery of a new gold area between the head waters of the Takutu River and the Tucurutu Mountains. The British route to the field would be partly by existing steamboat and railway services and thence by canoe, with many portages past rapids, then across the Savannah and again by canoe. The journey is commercially impracticable unless the deposits are exceptionally rich. The new gold area is sparsely inhabited by Macusi Indians, who speak the Carib language but are not pure Caribs, and there is no food in the region other than what the aborigines grow for themselves. On this account and because of the long and difficult journey the Government issued a warning notice to those fitting out expeditions. The discovery greatly strengthens Sir Walter Egerton's case for a hinterland railway, without which "the largest undeveloped auriferous area in the world"—to quote the Government expert—cannot be developed.

Hayti and Santo Domingo had another revolutionary year, tempered by the occasional intervention of United States warships for the protection of foreign property.

VI. SOUTH AMERICA.

A commercial crisis occurred in Brazil early in the year, owing to the fall in the prices of rubber and coffee, and it culminated on the outbreak of war in a general default. It was complicated in February by a rebellion in the State of Ceara, which started among rubber collectors who could no longer get employment. It was led by an ex-priest, Padre Cicero, and quickly reached proportions beyond the resisting power of the State authorities, the political opponents of the President of Ceara, Colonel Rabello, apparently using the movement to get rid of him. In this they succeeded, the Federal authorities failing to respond to his requests for support. The rising, however, being economic rather than political in origin, became so extensive and so menacing to the Republic that the Federal Government had to proclaim martial law and reinforce the Federal troops at Fortaleza, the State capital. The administration of the State was taken over by the Federal Government and a military officer, Colonel Setembrino, put in charge. This meant the elimination of Colonel Rabello and an easement of the political tension. The disarmament of rioters was proceeded with and the State thus quieted. Meanwhile there had been ominous signs of trouble in Rio Janeiro, but these were promptly suppressed by the Government, by the usual methods of arrest and control of the Press. A leading paper at Rio gave an indication of the acuteness of this crisis by publishing in the place of its leading articles the story of Ali Baba and the Forty Thieves. But the trouble in the Federal capital—a week's journey from Ceara by sea—passed off. As fears of a revolution diminished the financial situation became more acute. The Budget law for 1914 put the expenditure at 435,773 contos of reis paper and 95,469 contos gold and the estimated revenue at 130,219 contos gold and 367,571 paper, leaving a deficit of 9,621 contos paper. In June Congress authorised the Government to contract a loan to enable Treasury obligations to be met, and passed resolutions prohibiting expenditure not yet entered upon though lawfully authorised. Whatever effects this belated zeal for economy may have had, a heavy deficit on the Budget proposals put before Congress in July was not avoided, and when war broke out in Europe the Republic defaulted. In October the Brazilian Government promulgated a Funding Scheme by which interest on all the foreign loans, except the Funding Bonds of the 1903 loan, became payable in scrip for three years, while the redemption of nearly all securities was postponed for thirteen years. The Budget estimates for 1915 were dislocated by the effects of the war.

Mr. Theodore Roosevelt published in December a volume under the title of "Through the Brazilian Wilderness," in which he described his travels with Colonel Rondon and other Brazilian officers in the hinterland of the Republic, and gave an account of the previously unexplored tributary of the Madeira River—an affluent of the Amazon—which is now officially known as Rio Teodoro or Roosevelt River. Mr. Roosevelt gives the credit for the discovery to Colonel Rondon and his associates of the Telegraph Commission during six years' work in the interior prior to his own journey. "It was their scientific exploration of the Chapado, their mapping of the basin of the Juruena, and their descent of the Gy-Parana that rendered it possible for us to solve the mystery of the River of Doubt"—a river some 1,500 kilometres in length, of which the upper course was utterly unknown, and the lower course, though used by rubber collectors, unknown to cartographers (see post, Science, Part II., p. 54).

The new President of Brazil is Dr. Wenceslao Braz and the Vice-President Señor Urbano Dos Santos. The President was Vice-President under Marshal Hermes da Fonseca.

The economic condition of Argentina was unsatisfactory in the early months of the year and the effects of the war were severe. The Presidential Message at the opening of Congress on May 27 stated that the expenditure for 1913 had amounted to 39,128,000l. and the Treasury receipts to 34,897,000l. The total external and internal debts of the National Government amounted to 108,800,000l. Drastic economies had to be made in the Budget for 1914 owing to the decrease of customs. It was claimed that the unfavourable state of business could not affect the stability of the country, seeing that agriculture continued to expand. Weather conditions proved to be bad and an immense area of the country was waterlogged in July. The financial and agricultural outlook was unfavourable at the outbreak of the war, which produced an economic crisis in the Argentina as elsewhere in Latin America. In presenting the Budget for 1915 a Presidential message forecasted a saving in the 1914 Budget of 5,000,000l. and prophesied the subsidence of the economic troubles before the new year—calculations dissipated by the war.

In Peru the political disorders of 1913 resulted in February in the downfall of President Billinghurst, who had attempted to break down the rule of the ring of governing families, much as Balmaceda had in Chile in 1891. On the 4th of that month Colonel Benavides, with a body of infantry, seized the palace at Lima and made the President prisoner. The immediate issue which produced this coup d'état was an attempt by the President to bring about a general election on the plea that the existing Congress was invalid because of illegalities. Colonel Benavides acted as the instrument of Congress, which represented that it had acted constitutionally in deposing a President who had himself contumaciously violated the Constitution. An aspect of legality was thus given to the movement. The affair at the Palace was bloodless, but General Farela, Prime Minister and Minister of War, was killed at Santa Catalina arsenal "while endeavouring to impose his authority" on the troops, and there were other casualties. The ex-President was lodged in jail and political offenders he had himself imprisoned set free. Lima was reported quiet the next day, a provisional government having been formed with Colonel Benavides in control. The official account said that "public opinion and the patriotism of the Army having enforced respect for the Constitution, President Billinghurst resigned." The Government was being "carried on under normal conditions and in the enjoyment of general confidence." On February 18 Señor Billinghurst was escorted from prison to a cruiser and exiled with his son George, and one of his Ministers. Many weeks passed in controversy and manœuvres on the issue whether Señor Roberto Leguia, as first Vice-President, had the right to succeed ex-President Billinghurst, or whether there should be a general election. Señor Leguia's party was on one occasion forcibly excluded from Congress and on another the Opposition absented themselves, the effect being that Señor Leguia's claim could not receive Congressional sanction. The Provisional Government used the military in the interests of the opponents of Señor Leguia. Señor Don Augusto B. Leguia, a former President of Peru, was then in London and gave an account of the matter favourable to Señor Roberto Leguia. The Junta under Colonel Benavides, he pointed out, was called into existence to exercise authority until Congress met and decided what was to be done. Their conduct was that of a dictatorship, masked by the vote of a minority in Congress—a party which came to be known as the Bloquistas. Attempts to compose the differences failed. Señor Roberto Leguia appears to have been willing to resign if the Junta also resigned, and there was a general election, by which, according to the Constitution, a President is elected. On May 18 it was reported that a majority of the Congress had met at Señor Leguia's house and accepted his oath as President by virtue of his right as Vice-President to succeed Señor Billinghurst. The acceptance was by a legal quorum of the Congress. A manifesto was issued to the nation and Señor Leguia invited the diplomatic body to recognise his status. There were thus two Presidents of Peru; but Señor Benavides also claimed to have been duly elected by Congress, and his election was eventually confirmed by the Supreme Court.

Uruguay shared to the full the economic misfortunes of the larger Republics. The year opened with a monetary crisis, attributed by the Minister of Finance to depletion in the stock of gold and the difficulty of borrowing in Europe. The Bank of the Republic restricted credit. President Batlle y Ordoñez, in opening the Legislature in February, asserted that notwithstanding the monetary crisis the country had made substantial progress and was on the road to recovery. The imports for 1913 amounted to 9,600,000l. and the exports to 12,600,000l. Of the Public Debt 609,517l. had been redeemed and 1,210,260l. of the Internal debt issued. The annual statement on the Public Debt showed the total on December 31, 1913, to be 28,999,737l.—an increase of 639,088l. The Budget for 1914-15 showed an expenditure of 6,976,526l.; the revenue was estimated to be in excess. A new loan of 2,000,000l. was issued and further loans were sought. The project of a "Pan-American" railway, which was to give a direct route from Buenos Ayres to the Brazilian system, did not materialise. The Uruguayan Government rescinded its concession and in April initiated a policy of new State lines to link up the Brazilian system. The principle was to secure the economic independence of the Republic in railway matters and it was officially denied that there was any hostility towards the Central Uruguay Railway Company.

Except for commercial depression and the effects of the war the affairs of Paraguay were uneventful.

The war brought about the like financial crisis in Chile as elsewhere in Latin America. Early in the year it was announced by the President that having regard to economies then effected, the expenditure for 1914 would be covered by the revenue. The Legislature passed a Bill for reorganising and extending the railway system at a cost of 4,710,000l. A proposal to convert the paper peso at the rate of twelve pence gold met with much obstruction and the war came before it could be carried through the Senate. At the time of the war Chile had a warship of the Dreadnought class building in England. In view of rumours that warships building would be sold, the Chilian Government formally declared that they would not cede the vessels, which were contracted for "solely to fulfil the exigencies of Chile's geographical position and of her international rank. The said units will only leave British waters to be incorporated into the Chilian navy." The Anglo-German naval engagement off the coast of Chile is narrated elsewhere (p. 227). It was reported from Santiago after the loss of H.M.S. Good Hope that German merchant vessels had misused Chilian territorial waters for the supply of stores and sending wireless messages to German warships. The Chilian Government authorised the statement that from the first Chile had strictly carried out her neutrality and had effectively used her warships for convoying within territorial waters merchant vessels threatened by cruisers. Regulations were cited to show that not only was the taking of abnormal stores by belligerent merchantmen prohibited but that vessels carrying wireless had to dismantle the installation. In the Chilian Parliament the Minister for Foreign Affairs made an elaborate statement showing that there was no ground for the insinuation that there had been a departure from neutrality. Incidentally he stated that the action in which H.M.S. Good Hope was lost (Nov. 1) took place at "a very considerable distance outside the territorial limit." The British Government was satisfied that there had been no lack of good faith or vigilance by Chile and that reports to the contrary were "not in accordance with the facts and do not in any way represent the opinion of His Majesty's Government." An anti-German outbreak was reported from Valparaiso in December owing to the German controllers of the tramways raising the passenger rates.

Mr. and Mrs. Scoresby Routledge left the Chilian coast in the yacht Maria in January for Easter Island, where they are making a study of the gigantic stone figures and other antiquities.

Bolivia—the land-locked Republic of South America—has maintained good relations with her neighbours and her record until the war was one of economic progress. Her external debt in March, 1913, amounted to 3,000,000l. only, nearly all contracted with the Credit Mobilier Français, and her productiveness was increasing. A thorough study of this Republic by M. Paul Wallé on the instructions of the French Ministry of Commerce is embodied in his book "Bolivia, its People and its Resources, its Railways, Mines and Rubber Forests" (T. Fisher Unwin, 1914). New railway schemes were projected during the year for regions still dependent on mule transport. A decree was issued from La Paz requiring the registration of labour contracts for the interior and making provisions, under penalties, for the prevention of abuses of the peonage system, common throughout Latin America and not infrequently resulting in the practical enslavement of the labourer. There had been scandals in Bolivia affecting Colombian nationals in the Beni rubber region; and perhaps no rubber-producing area on the continent is free from them. Since the exposure of the horrors in the Putumayo region Governmental opinion in other Republics has been stimulated to take corrective action where conditions more or less comparable had arisen, and the action of Bolivia is indicative of a desire to protect the forest worker. In this connexion it should be observed that the Foreign Office has sent a Circular despatch [Cd. 7148] to its consular officers, calling attention to the Putumayo report and giving directions for more energetic action in cases of maltreatment of natives where British subjects and companies are responsible. They are to make themselves cognisant of labour conditions in concessions partly or wholly controlled by British subjects, and to embody in their annual reports the result of their studies, besides making special reports in serious cases, thus enabling the Foreign Office to warn the persons and companies concerned. Following the precedent of the Putumayo case the policy of the British Foreign Office is to encourage consular vigilance, and on the receipt of reports of serious ill-treatment of natives where British subjects may be held to account, to authorise special consular journeys of investigation.

In Ecuador there was a revolutionary movement in the north, under the leadership of Colonel Concha, who was credited with a desire to overthrow President Plaza, who himself gained office by expelling General Alfaro from the Presidency. Colonel Concha held the port of Esmeraldas, which was shelled by Government war craft. The revolutionary movement was officially represented to be unimportant. Breaches of neutrality in the German interest were alleged also against Ecuador, which with Colombia was called to account by the British and French Governments (p. 237). The Ecuadorean Government issued an absolute denial of this and of the charge that the wireless installations had been allowed to be used by Germany. The charges were "pure inventions concocted in the United States." It is noticeable that both in the case of Colombia and Ecuador the representations of the Allied Powers were made through and by the United States Government.

In Colombia Don José Vicente Concha, a Clerical and Conservative, and former Financial Agent of the Republic in Paris, was elected President for four years from July. The country was in the proud position of being able to announce that, notwithstanding the dislocation of business caused by the war, the interest on her external debt was being and would be punctually paid. The gold industry of this Republic is progressing. As in the case of Chile, but apparently with more justification, complaints were made (p. 237) that Colombia had permitted acts in assistance of the Germans and had violated her neutrality. Colombia denied the charges, through the Chargé d'Affaires at the Legation in London, who cited a decree of September 1, "enforcing" all measures required to safeguard the neutrality of the Republic in connexion with the operations of the wireless stations at Cartagena and Santa Maria, the only two wireless stations in the country. A decree of September 11 was quoted to the effect that in the absence, of properly qualified experts who could satisfy the Government as to the way in which the censorship and transmission of messages would be conducted, the station at Cartagena "should be closed." There were also decrees of August 12 and 22 to ensure strict observance of neutrality rules by shipping and users of ports. The existence of these decrees was not in dispute. Later on the Chargé d'Affaires reported that official cables from Colombia of November 19 stated that the French Minister at Bogota and His Majesty's Naval Attaché in Washington had expressed their thanks to the Colombian Government and their satisfaction with the action taken to carry out the requests of the Allied Governments. The representations of the latter had, in fact, been effective. A treaty was under consideration by the United States Congress for the payment to Colombia of 5,000,000l. as indemnity for the loss of Panama territory by the revolution of 1903. The treaty had not been ratified by the United States Senate at the close of the year.

From Venezuela there is nothing more novel to record than a frontier raiding difficulty with Colombia.

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