The morning call., 1894-02-24
GUATEMALAN DEFAULT.

A dispatch from London states that
Guatemala has defaulted on the interest
on her foreign debt in consequences of the
decline in silver. There are also other
reasons for fin ancial embarrassment.
There Is nothing hopeless in the financial
situation. but things have got into such
muddle from laundering that the outlook
has become serious. The total debt OF the
State when Barrios was inaugurated IN
1892 was S27. 356. 76S. OF this about Sll,-
100000 was funded, 81, $4,000 being rep
resented by bonds negotiated abroad ana
held in Europe, and 1884, 1876 being 10 tue
shape of bonds held at home and known
as the internal debt; the rest was h0ating
debt in the shape of temporary ioahs'
treasury bills and unpaid salaries. Tue
aggregate volume of this indebtedness
m ade heavy burden for nation OF z
million and half people to carry. Ihere
appears to have been no one IN Guatemala
who was able 10 eQuallZe income anu
outgo, or to keep check on Government
expenditures. In 1890 S3094,00O was
added to the public debt. though the coun-
try was at peace. In he same year the
expenditures were Ss. 100000 and the re-
ceipts S663S, 600 Tie exports OF the
State are in round figures S15,000,000.
The imports are Faf koned at about
S6,000.o00. on which t5s people pay I'M
port duties amounting &c about S3.5O0,O0O
Nearly two millions is also paid Tor ID
ternal revenue taxes OF tobacco, liquors
and other luxuries. The area planted In
coffee is increasing year by year. the
profits of the industry being reckoned at2O
per cent. In 1891. which is the last year OF
which we have returns. the coffee export
was given as 100000 pounds, worth
S1O,OOO0O0 1t will be remembered that
the choice grades go to London and Ham,
burg, and as a rule the inferior grades to
San Francisco. About one-fourth Of the
coffee plantations are said to be in the
hands of Germans.
Considering the excellent quality of the
soil of Guatemala and the infinite variety
of productions that ii will grow. the State
ought TO be prosperous. 1t is unhappily
cursed by a turbulent spirit among the
Indians and half castles. and by craze for
war among its rulers. The money which
should go to meet coupons and to under
take public Improvements is wasted in
military expenditures. With population
only slightly larger than that Of Cali
fOrnia, Guatemala maintains standing
army of 1000 men, in order to make war
upon its nelghbors at convenient occa-
sion. The elder Barri0s sQuandered the
savings of several years and lost his own
life in a futile attempt 10 conquer Sal
vador; the younger Barrios is said TO have
lately proposed to accomplish Central
American union by establishing dictator
ship. The purposes which these two chiefs
had in view were wise. But they pro-
posed to carry them out in a way which
was almost certain to lead TO defeat. Until
the contrary is proved by experience.
moreover, 1t Will always be a question
whether the Indian races of Central
America are capable of self-gOvernment
as we understand It. Three-tif of the
people of Guatemala are pure Indians. or
the remaining two-ffths the bulk are half
breeds. leaving the people Of pure white
blood in an insignificant minority. Il
would be much easier to reconstruct the
finances of the State than TO educate the
people at large in the work of establishing
and maintaining an orderly Government.