spread to the other Central American States. The Costa Ricans early recognized the importance of coffee as an article of commerce and developed its culture on an equal plane with sugar cane, cotton, cacao, and other products adapted to the soil of the country. With this object the Municipal Council of Cartago issued various regulations in 1821, the same being effected by the Government Council which succeeded the Colonial Government in the years subsequent to the declaration of independence. Upon the establishment of the Federation of Central America, Don Juan Mora, First Chief Executive of Costa Rica, in 1825, excepted coffee among other articles from the onerous tax of 10 per cent, thus stimulating its cultivation so that within two years it had become an important product in that section of the Republic. Later, during the second administration of Señor Mora, by a decree of the National Assembly, free grants of public lands were made for the growing of coffee plantations or for tracts on which, during a term of five years, such plantations should be made; furthermore, double grants were made to such persons who should encourage the growing of edible plants.

Owing to these measures, a very short time elapsed before Costa Rican coffee, as a native plant, became an article of commerce, and in 1832, George Stipell, a German merchant of San José, made the first shipment of the article, sending the first bagfuls of this valuable product to Chile. The coffee of Costa Rica immediately gained favor and the extent of native plantations increased in proportion to the demand in foreign markets.

Later, in 1840, President Don Braulio Carrillo, authorized the sale of the municipal lands of Las Pavas, near San José, with the express conditions that they should be planted in coffee, according to the most improved methods, so that these plantations might serve as models. While the influence of such action was important, it did not, however, attain the value hoped for.

After the dissolution of the Federation of Central America and during the Government of Don Juan Rafael Mora, inaugurated in 1849, agriculture made great progress in Costa Rica, aided thereto by the development of public highways. The cultivation of coffee and sugar cane so absorbed the attention of the country that in 1861 the quantity of coffee exported amounted to 4,600,000 kilograms, notwithstanding the scarcity of labor and of capital, and in spite of the war against Walker in 1856 and 1857, the cholera, and the revolutions of 1859 and 1860.

Coffee growing continued to increase, and, in 1884, the product reached 18,500,000 kilograms, and although it has somewhat declined of late years (in spite of the great extension of lands adapted to its culture, as those of Turrialba, where the plant grows prodigally), this decline

is due principally to the falling off in its price in foreign markets and to the scarcity of labor occasioned by the development of trade in other branches, among which (aside from gold exports, which were valued at $228,237 in 1903, and forest products, worth $156,782) may be cited cacao, with a crop of 80,532 kilograms of excellent quality, and bananas to the amount of 5,139,063 bunches.

In conclusion, the report of the Secretary of Hacienda and Commerce presented to the National Congress in the present year containing a résumé covering the eleven past years may be quoted.

"In regard to coffee, it is stated that the year 1902-3 was one of the most profitable for the coffee industry both as regards the quantity produced and the value of the crop. The following table covering details for the previous decade amply demonstrates this fact:

From the foregoing figures, it is seen that the crop of last year exceeded that of the year previous by 3,583,513 kilograms, and that its value was greater by $1,061,641 gold. In regard to the returns from the crop, it is true that the prices obtained are very much below those of ten years previous, when the average rate per kilogram was $0.38, as compared with $0.24 at the present day, but the fact that the high estimation in which Costa Rican coffee is held in foreign markets has enabled it to maintain itself at a profitable selling price is a cause for congratulation to the producers.

"With coffee, as with every article of trade, the law of supply and demand is unalterable, and as statistics indicate that the quantity offered for sale is in excess of the necessities of the market, it follows that superior grades alone can enter into competition with the fine coffees of other producing countries. This fact is well understood in Costa Rica, and the principal planters are continually improving the quality of their production. The crop of 1904, at present on the market, is somewhat smaller than that of 1903-10,000,000 kilograms being the estimated offering-but, on the other hand, the average price will be greater, judging from the sales already effected."

ARGENTINE REPUBLIC.

BUDGET FOR 1905.

The Budget, showing the estimated revenue and expenditure for the year 1905, for the Argentine Republic, was sent to Congress on September 4, 1904. It was accompanied by a message from the President giving a clear and succinct account of the financial state of the country. It shows that the Government has paid off and canceled $89,000,000 in gold and $29,000,000 in paper of the bonds of the external debts, from 1899 up to the present time, and that the floating unfunded debt, which at the end of the year 1898 was $9,000,000 gold and $14,000,000 paper, now stands at only $51,000 gold and $600,000 paper. Further, the circulation of Treasury bills has been reduced from $11,000,000 gold and $9,000,000 paper to $1,600,000 gold and $7,000,000 paper during the same period.

The Message also shows that there has been a steady increase in the revenue during that period. The revenue, which in 1898 was $32,000,000 gold and $40,000,000 paper, has now risen to $45,000,000 gold and $65,000,000 paper. It is stated that since 1903 the Government has not had to provide for any expenditure in armament, which, however, has cost the country more than $60,000,000 gold since 1898. The Budget estimate shows a revenue for 1905 at $43,000,000 gold and $63,400,000 paper, and after estimating the expenditure there will be left a surplus balance of $260,000. This surplus, although apparently small, is due to having included in the Budget several items of expenditure amounting to $600,000 gold and over $5,000,000 paper, which during the last year and current year were appropriated to special accounts, and consequently next year's estimate will result in their being perfectly balanced after providing for all outlays.

The Budget also has a special chapter setting forth the providing of ways and means for special expenditure on public works, such as Government railway extensions, sewage disposal, waterworks, public schools, roads, bridges, dredging, and improvements at ports, on all of which the Government proposes a considerable outlay, amounting to $7,000,000 gold and $15,000,000 paper, to be covered with the proceeds of internal bonds, bearing interest at the rate of 5 per cent, and amortization of 3 per cent.

Another important item is the statement of the Treasury balance. This shows cash on hand of over $26,000,000, without taking into account the £1,300,000 already in the Argentine Legation in London for current expenses and to meet the October coupons,

The Budget includes a special chapter paying back to conversion fund the $7,500,000 gold, which were the proceeds of the sale of certain war ships, and authorizing several outstanding credits to make up

the balance of $4,000,000 gold to complete the reinstatement of the guaranty fund for the paper money, in accordance with the stipulations of the Conversion Law.

PORT MOVEMENTS DURING MAY, 1904.

The Buenos Ayres "Handels-Zeitung” (Revista Financiera y Comercial) publishes the following figures, showing the movement of the various ports of the Argentine Republic during the month of May, 1904.

During the month of May, 1904, 26 steamships and 2 sailing vessels cleared from the port of La Plata, carrying the following cargo:

Eighteen steamships and 3 sailing vessels cleared from the port of Bahia Blanca during the month of May, 1904, carrying the following merchandise to the different countries enumerated:

SAN NICOLAS.

During the month of May, 1904, 22 steamships cleared from the port of San Nicolas, carrying the following merchandise to the different destinations:

PORT MOVEMENTS FOR JUNE AND FIRST SIX MONTHS OF 1904.

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The Buenos Ayres Handels-Zeitung" (Revista Financiera y Comercial) publishes the following figures, showing the movement of the different ports of the Argentine Republic during the month of June, and the first six months of 1904.

During the month of June 31 steamships cleared from the port of La Plata, and during the first six months of 1904 143 steamships and 6 sailing vessels cleared from the same port. The merchandise carried by these ships during the respective periods was as follows: