Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-11-21
Progress and Prospects Of
South American Republic.
A POPULAR PRESIDENT
INDIANS q, PREPoNDERATE AND
SOME ARE STILL SAVAGE.
Minerals the Staple Dependence
American Goods Rapidly Gaining
Popularity With the People.
Special Correspondence Of The Evening Star.


LA PAZ, Bolivia, October 20, 1908.
Bolivia is shut-in country. She has no
port. Both the Atlantic and the Pacific
have to be reached by crossing the terri
tory of neighboriDg nations. more or less
friendly as their disposition and interests
incline them. Under these conditions the ef-
forts Of her public men to work out the
future of their republic have an unusual in
terest.
Bolivia has had four years of progressive
government under President Pando, and
her most enlightened citizens have been in
the responsible posts Of administration
They have wrought WELL and the promise
now is that the Pando policy will continue
The president will retire next year, but will
remain at the head of the army, of which
he is the commander. He told me that be-
fore retiring he would make farewell jour
ney through the country-not an election
eering tour. since his term Is drawing to
clOSe-but u trip to stimulate his TRENDS 10
continue their efforts and to help carry TO
maturity the plans which have been inau-
gurated. He himself intends TO maintain
his interest in pubic affairs.
Pando's Public Policy.
The Pando policy has been to develop
the mineral and agricultural resources of
the country, to build railways, to encourage
and protect the investment of foreign cap
ital, and to strengthen and improve the
local administrations. The testimony Is
general that Roadway has been made in all
THESE directions and that the national ad-
mlnIstratlon has lacked neither courage not
vIgor hen The lmprogilo over the Acre
rueDer territory reached the stage OF rev.
olution which was beneved to threaten
BonvIa's rights General Pando took SOL
mat region. Ills course was crItlcised both
at nome and abroad, but in the other South
American countries it increased the respect
felt for the Bolivian president and was
credited with securing the mOdus vivendI
with Brazil under which the two countries
undertook to settle the dispute between
them by friendly negotiation. In Other
questions affecting Bolivia S relations with
her neighbor the Pando government has
been firm and resolute without being Of
fenSiVe.
Appearances indicate that President
Pandos successor will be Mr.. Monies. the
present secretary OF war. While the vice
president will be Mr.. VillaZon, the secre-
tary of foreign relations. Monies is law
yer by profession and has the support Doth
of the civilian and the military elements.
He accompanied the Acre expedition. VII
lazon has been a very successful minister of
foreign affairs and is one of the most ad-
vaaced of the Bolivian public men. He en-
joys in the fullest degree the confidence OF
the diplomatic corps resident in La PaZ
and of the foreigners generally.
They are both the candidates OF the lper-
al party which is now in power and are
supported by Mr.. Guachalla, the Bolivian
minister in Washington, who is one OF the
chiefs of the party. The liberals have their
greatest strength in the department of La
Paz, which Is the richest and most popu-
lous section of the republic The reaction
airy or conservative center Is said to be In
Sucre. Though the capital never has been
S,,or 20 hn nj
of La Paz, the latter is the real seat of
government, and the old buildings fronting
the plaza are now being reconstructed for
permanent occupancy.
The Revenue Question.
Bolivia's main problem Is that which
bothers so many of the great powers of
Europe-how to fit the outgo to the In
come. Salaries and everything connected
with the public service are on very
moderate scale and economy is enforced by
necessity as we'll as by policy. Yet usually
there is a deficit, and Finance Minister
Calderon, who lived for many years In the
United States, sometimes wishes to nave
the resources of a single American munich
palty with, winch 10 meet the iiscal SIT
uation.
AS in the other Spanish American coun-
tries the chief sources of revenue are the
customs, both import and export taxes be-
minerals and rubber, among the former
being copper and silver, both of which have
been depressed in the worlds markets.
Because of the depression in silver the ex-
port tax was removed 1t Is most likely
10 be restored. The revenue now is had
from copper and tin, though something
also is obtained from bismuth. Nominally
an export tax is collected from the exports
of gold. but in practice this is evaded The
rubber export tax yielded almost as much
as tin until the Acre difficulty, which caus
ed a heavy decrease The loss from this
source and from the minerals cannot be
taken as a permanent one Temporarily
II causes a serious inconvenience to the
government
Importations are made chiefly through
the Pacific ports of Antofagasta. africa and
Mollendo and Bolivia pays Chile and Peru
pretty dearly for that privilege since under
her treaties with them she has to admit
their natural and manufactured products
free. The only exception is the alcohols
and wine from Peru on which tax is
collected part of which goes to Peru. 1t
is more in the nature of internal revenue
than Of a tariff duty. The importations
through all ports last year in money value
were a little over IA 100000 bolivianos, and
the expectations 2S,OOOO00 bolvianos. The
previous year the importations amounted
TO II 100000 and the expectations to b.
100000 bolivianos. The value Of the bo-
Iiviano, which is the silver dollar, varies.
Int the average has been about 30 to SO
cents gold.
Where They Buy Goods.
OF foreign countries Germany and Great
Britain hold about even rank in their ex-
nortations to Bolivia. Peru is next, then
France and then the United States. There
is a larger market for the producers Of the
United States whenever the exporters
choose to go after 1t. California wines and
f1ours pay the duty and still compete suc-
cessfully with those articles from Chile
which are imported free. Peru is building
nm a cotton industry and exporting to b.
ltyia. yet one of the means proposed by the
minister of finance for meeting the deficit
in the revenues is to lower the duty on cot
tons so that the exports from the United
States will be increased. He figures that
connection with the free cotton of Peru
ia certain If the duty is not too high.
Mining machinery is almost an American
monopoly. nh,
It is realized that the beginning of Be-
livia's fiscal and economic readjustment
must come from renewed development of
her mineral wealth. The country is not
ali mines There is the chaco, or prairie, a
great tropical agricultural region stretching
from the eastern slope Of the Andes to
Paraguay and Brazil. And there is also
the rubber region. Yet the mines are the