"Fortunately for the Administration, the plot was discovered

in time, and repressive measures were at once adopted which

rendered the movement impossible of consummation. But, if it is

certain that the internal peace has not been disturbed, such is

not the case with the credit of the country. Furthermore, the

fact that the attempt was made at the time for harvesting coffee

aggravated the situation somewhat for the moment, and threatened

to interfere with the gathering of this important crop on which

much of the prosperity of the country depends; but the action of

the Chief Executive in issuing orders to the Governors of the

several Departments has reduced this evil to a minimum.

"In his instructions to the Governors, the Minister of the

Interior provided in part that, notwithstanding the state of

siege, the greatest latitude must be given persons and workmen

who were not actually under suspicion, but insisted on the

strict guarding of public order. Men in the discharge of their

duties, however, were allowed to pass toward the Capital of the

country without the necessity of presenting passports. This

referred particularly to merchants, managers of plantations, and

day labourers.

"As will be seen," continued the journal referred to, "the

circular does not mention the municipal elections which are soon

to take place throughout the interior, but the President of the

Republic has authorized us to make known his desires that these

elections be held with perfect freedom, and be unhampered by the

decree of the Executive."

[Illustration: COLONEL'S QUARTERS, SCHOOL OF SERGEANTS.]

[Illustration: OFFICERS' CLUB ROOM, SCHOOL OF SERGEANTS.]

The extract which I am quoting continues as follows:

"Whatever reasons the enemies of the Government may set forth

in justification of their conduct, it cannot be doubted that

the country has resisted the movement grandly, and has caused

the failure of another attempt, which adds one more to the

number which have aided to discredit the country abroad, and

characterized our land as one of convulsive nations, incapable

of making reasonable use of their Governments, such as we now

enjoy. We must not lose sight of the fact that the eyes of

Europe are upon us, thanks to the important rôle which Salvador

is destined to play in uniting the civilizations of the East

with the West."

It cannot be too emphatically pointed out that the Salvadoreans

are not naturally a rebellious or warlike people, and, except when

compelled to take up arms in their own defence or in favour of a

righteous cause, they ask nothing better than to be permitted to

devote themselves to the congenial and profitable occupation of

cultivating the bounteous land which is theirs by inheritance. In

the troubles which afflicted the country in the years 1907-08,

the whole cause was the incitement which was offered to them by

their turbulent and troublesome neighbours the Nicaraguans and

the Honduraneans. As I have shown very conclusively, it was the

long-established policy of Santos Zelaya to foster an outbreak in

Salvador which should broaden into a revolution, in the course of

which Salvadorean troops would be compelled innocently to commit

some overt act which would give Honduras or Nicaragua a cause for

the initiation of a movement against the Republic. This, it was

hoped, would ultimately result in the election to the Presidency

of Salvador of Dr. Prudencio Alfaro, who was always a creature of

Santos Zelaya, and who for many months was his guest at Managua,

where he formed all his plans, for the execution of which President

Zelaya was ready to pay. As we have seen, the agitators did not

wait for the _casus belli_ on the part of Salvador, but most

unwarrantably invaded that country and committed certain outrages,

only, however, to have to execute a most humiliating retreat before

any beneficial results could possibly have accrued to them. Had

it come to an actual encounter or series of encounters between

the allied forces of Honduras and Nicaragua on the one hand and

the Salvadoreans on the other, there can be no question that the

latter would in the long-run have emerged victorious; out of a

population of 1,100,000, the Salvadoreans can claim a fighting

force of at least 100,000. The Salvadoreans are the best and most

plucky fighters in South or Central America, as has been proved upon

several occasions, displaying great intelligence on the battle-field

and in the conduct of their campaigns. At the memorable battle of

Jutiapa, fought between the Salvadorean troops and the Guatemalans

in the previous year (1906), and in spite of the fact that the

latter numbered over 40,000 as against little more than half that

force arrayed on the side of Salvador, the former gave an extremely

good account of themselves, and showed that the excellent military

training which they had received had not been thrown away.

The invasion of Salvadorean territory in the month of June, 1907, by

the Nicaraguans was a direct and unprovoked violation of the Treaty

of Peace and Amity of Amapala, only signed on the previous April 23,

and ratified on May 8, by which the Governments of the two countries

agreed to submit their grievances to the Presidents of the United

States and Mexico for arbitration. The news was first received

through the telegram sent by President Figueroa, dated June 11,

1907, and addressed to Dr. Manuel Delgado, the Salvadorean Minister

at Washington. In this despatch, General Figueroa says:

"This morning the revolutionists bombarded and captured the port

of Acajutla. The forces were commanded by General Manuel Rivas,

and came from Corinto in the warship _Momotombo_, armed by the

President of Nicaragua. It is in this manner that President

Zelaya complies with the terms of the Treaty of Amapala, which

was the result of the intervention of the American Government."

The gunboat mentioned was one of six warships which Nicaragua at

that date possessed, and which composed the whole of the Nicaraguan

"Navy." The vessel was capable of transporting 1,000 troops, and the

facility with which these landed and seized the port of Acajutla

is explained by the fact that the Salvadoreans were entirely

unsuspicious and unprepared for such an outrageous act upon the

part of the treacherous Zelaya, with whom they had every reason to

consider themselves at peace. The civilized world has denounced the

Nicaraguans' act of aggression, and unhesitatingly expressed the

opinion that President Zelaya had committed a grave violation of

international ethics in opening hostilities against Salvador without

having made a preliminary declaration of war or giving any reasons

for such an action.

CHAPTER VI

Outbreak of hostilities between Salvador, Honduras,

Nicaragua, and Guatemala--Discreditable conduct of

Nicaragua proved--Failure of United States and Mexican

intervention--Dignified and loyal attitude of General

Figueroa--Warning to Honduras--President Dávila used as

Zelaya's cat's-paw--The latter's subsequent regret--Central

American Court of Justice trial of claim for damages, and

result of judgment.

The true friends of interstate peace, of whom there are as many

in Latin America as other parts of the world--although, from the

frequent turmoils which occur in that part of the globe, one might

be excused for doubting it--were much distressed by the serious

quarrel which broke out between the neighbouring Republics of

Salvador, Guatemala, Honduras, and Nicaragua, in the years 1907-08.

This was not by any means the first conflict which arose between

Salvador and Honduras, for the two States were at war in 1871, when

General Miranda invaded Honduras with the object of proclaiming

General Xatruch as President in place of General Medina; again in

1872, when were fought the famous battles of Sabana Grande and Santa

Bárbara; and in 1873, when Salvador sent an armed expedition against

President Celio Arias, and in order to restore General Ponciano

Leiva to the Presidency of the neighbouring Republic. Although the

relations between Nicaragua and its adjoining States had long been

on a questionable basis owing to the ambitious projects of General

J. Santos Zelaya, its President, there was no reason to anticipate

any disturbance, more especially as at the most critical time, owing

to the intervention of the United States and Mexico, the cloud had

blown over, and to all appearances peace reigned.

The worthlessness of the intervention, and the absolute ineptitude

of the United States to effect any permanent improvement in the

prevailing conditions, was, however, proved conclusively a few

months after the Treaty of Peace and Amity had been signed, amid

somewhat premature rejoicings at Washington, on December 20, 1907.

Almost before the ink was dry upon the document, Honduranean and

Nicaraguan troops had violated the terms and conditions, and

continued, moreover, to do so in spite of all diplomatic reminders

and serious warnings from the United States. In these "warnings,"

however, Mexico took no part, merely using the good offices of

President Diaz to effect what the threat of the Big Stick had failed

to accomplish. Eventually peace was proclaimed, and since then it

has been strictly maintained as between the different Republics,

although not by any means so within their own borders, as witness

what has recently occurred, and is still occurring, in Honduras,

and, alas! within Mexican territory, also. It seems a cruel irony

that Diaz the Dictator should so soon have become the Deposed. The

fact recalls forcibly the poet Burns's well-known words:

"And may you better reck the rede,

Than ever did th' adviser!"

The true history of these Republics' quarrels of recent times

would at this stage be somewhat difficult to record, since an

immense quantity of official documents would have to be translated

and given in full. To do this, however interesting, would prove

impracticable within the limits of a single volume. The matter has

been sketched by me from personal knowledge, and I trust that I

shall escape the charge of prejudice or unfairness to any of the

parties involved.

For the facts set forth abundant evidence can be procured, and

possibly, if my account be compared with the many versions which

have been from time to time adduced by others, who have spoken and

written from authoritative or personal information, it will not be

found to vary very much in the main particulars. I have patiently

listened to the accounts of all that took place both on Salvadorean

and on Nicaraguan territory, and, furthermore, the incidents which

both led up to and followed the clash of arms were related to me

by the participants when all feeling of animosity and bitterness

had disappeared, and the usual friendliness between the members

of this strangely mercurial people had been restored. Thus very

little for spirit of resentment--although perhaps something for the

vainglorious spirit of the individuals concerned--need be allowed.

_Il est difficile toujours d'estimer quelqu'un comme il veut l'être._

Considerable as is the space which I have given up in this volume

to the relations of the Salvadorean, Honduranean, and Nicaraguan

troubles, I find it impossible to publish in its entirety, as I

should have liked to have done, the text of the complaints presented

by the Governments of Honduras and Nicaragua against that of

Salvador, and which were heard before and decided by the Central

American Court of Justice, as well as the final answer and arguments

which were later on issued by the Ministry of Foreign Affairs of

Salvador. All these documents, which fill two substantial and

closely-printed pamphlets, the one consisting of 84 pages and the

other of 108 pages, are extremely interesting and instructive,

serving as they do to throw a particularly clear light upon the

methods of some of the Central American States, which imagine

that they are acting in an "honourable" manner and fulfilling a

respectable destiny.

It is significant that these publications, which are complete and

official, were issued by the Government of Salvador, from which

it is clear at least that this country had nothing to fear from

the world at large being made acquainted with the history of the

troubles. No less worthy of comment is it that neither Honduras

nor Nicaragua has ever made any rejoinder to the arguments

and conclusions of the Court of Justice or of the Salvadorean

Government, and in this action, perhaps, they have for the first

time shown some intelligent discretion.

The impartial reader of these publications can only arrive at one

conclusion, nor, indeed, is it even necessary that he should know

anything of either the countries or their inhabitants to be able

to form some sensible deduction from the actual position. The

correspondence, the genuineness of which is unchallenged, speaks

for itself. It seems clear that the Government of Salvador, while

subscribing in Washington the Central American Treaty of Peace,

swore faithfully to fulfil the International Agreement which bound

it to its sister Republics, and at the same time opened for itself

and for them, as it had every reason to hope and believe, a new era

of confraternity to be maintained in dignity and mutual advantage.

To the principles of that Treaty, Salvador adhered with the utmost

rigour; and, in the face of the most intense provocation, refused to

depart one inch from its solemn obligations. The attitude which this

small but high-principled State showed at this time of trouble and

trial has evoked the admiration and commendation of all statesmen,

independently of country, or creed, or political belief.

[Illustration: PENITENTIARY AT SAN SALVADOR.]

[Illustration: OFFICERS' CLUB ROOM, MILITARY POLYTECHNIC SCHOOL.]

To particularize more minutely from the abundant evidence which

exists to this effect, and which may be gathered from every page of

these two pamphlets, is unnecessary in this volume; but one fact

at least I may call attention to, as exemplifying the honesty of

purpose and the good faith of the Salvadorean Government towards

the Republic of Honduras, at a time, moreover, when only armed

retaliation could reasonably have been looked for.

In all probability the friendliness of President Figueroa for his

neighbours would never have been questioned, nor their relations

have been in any way embittered, but for the Machiavellian

interference of Santos Zelaya. It is an eloquent fact of the

sympathy felt for Honduras, that President Figueroa of Salvador

wrote personally, and almost affectionately, to President Dávila,

on June 10, 1907, drawing his attention to the revolutionary plans

of certain Honduranean exiles who were making Salvadorean territory

their temporary headquarters. Only feelings of friendship and

good-nature could have prompted a neighbourly action of this kind,

which, however, some few months afterwards was rewarded by President

Dávila allowing his troops to join forces with the Nicaraguans in

their invasion of Salvadorean territory.

This I may say in defence of ex-President Miguel R. Dávila, whom I

know quite well, and with whom I have had many long and interesting

conversations: he is a man of great honesty of purpose, but of

singularly weak will; in fact, he has neither initiative nor power

of moral resistance. Quiet and modest to an extraordinary degree,

speaking very little above a whisper, and with the manners of a

curate rather than those of a soldier, one is inclined to rather

wonder _que diable fait-il dans cette galère_ of President of an

unruly and half-savage Republic.

In agreeing to join Zelaya upon his mad and mendacious enterprise,

President Miguel Dávila, who had only assumed the Presidency in the

month of April of that year (1907), undoubtedly allowed his better

judgment and sense of decency to be overruled. This do I know, also:

he has deeply and sincerely repented of his action, not because it

failed and he lost the game at which he had consented to try his

hand, but because, being a man, as I have said, of innate honesty of

purpose, he perceived when too late that he had committed what is a

worse offence than a mistake--a crime against personal honour.

General Fernando Figueroa, however, did something more than

merely warn President Dávila of the plotting going on against his

government and his life, and which was proceeding beyond his own

jurisdiction. He actually prevented the leader of the Honduranean

revolutionists, General Téofilo Cárcamo, from leaving Salvadorean

territory, keeping him, with many other conspirators, in prison,

and thus helping to quell an uprising against President Dávila's

government.

The magnanimity of the Salvadorean Government continued to the

end. Notwithstanding the finding of the Central American Court of

Justice, (delivered on December 19, 1908), and which, being in

favour of Salvador upon all points raised, should _sequentia_ have

carried costs, the Government forewent any such claims, which by the

terms usually prevailing under International Law could have been

insisted upon, and found its share of the expenses incurred by the

inquiry.

Subsequent to the troubles related in the foregoing pages, the

Honduranean Government stupidly courted fresh disasters by

prosecuting a claim for damages against the two Republics of

Salvador and Guatemala for injuries which it declared it had

sustained as a result of those two sister-States having harboured

Honduranean agitators and conspirators within their borders. The

exact value of this claim can best be judged by perusing the

following questions that were considered and determined by the

Special Court of Justice which was formed in Costa Rica (the only

State which stood aside and refused to be concerned in this Central

American squabble), and the members of which were made up of five

different nationalities. Attached is a faithful translation of what

transpired on this occasion:

IN THE CENTRAL AMERICAN COURT OF JUSTICE AT CARTAGO, COSTA RICA.

THE GOVERNMENT OF THE REPUBLIC OF HONDURAS VERSUS THE

GOVERNMENTS OF THE REPUBLICS OF EL SALVADOR AND GUATEMALA.

DECISION: IN THE CITY OF CARTAGO, COSTA RICA, AT MIDNIGHT OF THE

19TH OF DECEMBER, 1908.

Upon the closing of the deliberations of the Court for

pronouncing judgment in the complaint filed by the Government

of the Republic of Honduras against the Governments of the

Republics of El Salvador and Guatemala, charging responsibility

that took place in the first-mentioned Republic in the month of

June last, the Chief Justice submitted the following queries to

be voted upon in rendering the decision that is to settle the

controversy:

_First Question._--Should the Court sustain the exception taken

by the representative of the Government of Guatemala as to

the inadmissibility of the complaint, on grounds that it was

filed before all negotiations for settlement, between the two

respective Departments of Foreign Affairs, had been resorted to

without success?

The result of the vote cast was as follows:

_First Question._--The five justices answered in the negative.

_Second Question._--Should the Court sustain the exception

taken by the same party, as to the insufficiency of basis of

action, considering that no evidence was filed together with the

complaint?

_Second Question._--The five justices answered in the negative.

_Third Question._--Is it proven, and should it thus be held,

that the Government of the Republic of El Salvador has

violated Article 17 of the Treaty of Peace and Amity, signed

at Washington on December 20, 1907, by failing to bring to the

Capital and to submit to trial Honduranean exiles who endangered

the peace of their country?

_Third Question._--Justices Gallegos, Bocanegra, and Astua

answered in the negative, and Justices Uclés and Madriz in the

affirmative.

_Fourth Question._--Is it proven, and should it thus be held,

that the Government of the Republic of El Salvador has violated

Article 2 of the additional convention to said treaty by

fostering and promoting the revolutionary movement referred to?

_Fourth Question._--Justices Gallegos, Bocanegra, Astua, and

Madriz answered in the negative, and Justice Uclés in the

affirmative.

_Fifth Question._--Is it proven, and should it be held, that the

Government of the Republic of El Salvador has contributed to the

realization of the said political disturbance, through culpable

negligence?

_Fifth Question._--Justices Gallegos, Bocanegra, and Astua

answered in the negative, and Justices Uclés and Madriz in the

affirmative.

_Sixth Question._--In consequence, should the Court hold that

the action instituted against the Government of the Republic

of El Salvador is according to law, and, if so, should that

Government be sentenced to pay the indemnity for damages that

the complainant prays for?

_Sixth Question._--Justices Gallegos, Bocanegra, and Astua

answered in the negative, and Justices Uclés and Madriz in the

affirmative.

_Seventh Question._--Is it proven, and should it be held, that

the Government of the Republic of Guatemala has violated Article

17 of the Treaty of Peace and Amity, signed at Washington on

December 20, 1907, by failing to bring to the Capital and submit

to trial Honduranean exiles who endangered the peace of their

country?

_Seventh Question._--Justices Gallegos, Bocanegra, Madriz,

and Astua answered in the negative, and Justice Uclés in the

affirmative.

_Eighth Question._--Is it proven, and should it be held, that

the Government of the Republic of Guatemala has violated Article

2 of the additional convention to the said treaty by fostering

and promoting the revolutionary movement referred to?

_Eighth Question._--Justices Gallegos, Bocanegra, Madriz,

and Astua answered in the negative, and Justice Uclés in the

affirmative.

_Ninth Question._--Is it proven, and should it be held, that the

Government of the Republic of Guatemala has contributed to the

realization of the said political disturbance, through culpable

negligence?

_Ninth Question._--Justices Gallegos, Bocanegra, Madriz, and

Astua answered in the negative, and Justice Uclés in the

affirmative.

_Tenth Question._--In consequence, should the Court hold that

the action instituted against the Government of the Republic of

Guatemala is according to law, and, if so, should the Government

be sentenced to pay the indemnity for damages the complainant

prays for?

_Tenth Question._--Justices Gallegos, Bocanegra, Madriz, and

Astua answered in the negative, and Justice Uclés in the

affirmative.

_Eleventh Question._--Should costs be awarded against the losing

parties?

_Eleventh Question._--Justices Gallegos, Bocanegra, Madriz, and

Astua answered in the negative, and Justice Uclés in the sense

that costs be awarded against the Governments of the Republics

of El Salvador and Guatemala.

From the above-stated result, judgment is rendered dismissing

the action instituted against the Governments of the Republics

of El Salvador and Guatemala without costs.

JOSÉ ASTUA AGUILAR.

SALVADOR GALLEGOS.

ANGEL M. BOCANEGRA.

ALBERTO UCLÉS.

JOSÉ MADRIZ.

_Witness_: ERNESTO MARTIN, Secretary.

A more impudent or baseless claim than that put forward by Honduras,

and decided by the Central American Court of Justice, can hardly be

imagined. That the Honduranean Government would ever have thought

of prosecuting it at all but for the instigation from its immediate

neighbour seems hardly probable.

That the Court should have found a decision overwhelmingly in favour

of Salvador and Guatemala was only natural, but it seems unfair

that, having come to that inevitable conclusion, costs should not

have followed the event, and that Honduras should not have been

condemned to pay them.

There is but one consolation (a poor one, I am afraid) open to the

Republics of Guatemala and Salvador in this connection--namely, that

had the Court ordered Honduras to pay the costs of the inquiry, it

would never have done so, any more than it has paid back to its

foreign creditors either the principal of, or, even the interest

upon, the money which it borrowed.

Were the creditors American instead of British, some satisfactory

settlement would have been arrived at long ago. Even as it is, the

British bondholders will be unable to obtain a settlement of any

kind without recourse to American interference, and, as may be well

believed, it will be upon such terms as the Americans choose to

approve of, and subject to such profits out of the transactions as

the Americans choose to demand.

It is satisfactory at least to observe that Honduranean impudence

did not succeed in the above instance in getting "any rise" out of

either Salvador or Guatemala.

That the relations existing to-day between the two Republics of

Salvador and Honduras are upon a more friendly basis, and that they

are destined to so remain as long as the present Governments of

the two countries remain in power, is proved from the interchange

of congratulatory despatches made by Dr. Bertrand, President of

Honduras, and Dr. Manuel Enrique Araujo, President of Salvador, in

the month of March last, and copies of which I am enabled to give

in this volume. The correspondence, conducted by telegraph, was as

follows:

"TEGUCIGALPA,

"_March 28, 1911_.

"To _H.E. the President, Dr. Manuel E. Araujo,

San Salvador._

"I have the honour to bring to the knowledge of Your Excellency that

I have to-day taken possession of the Presidency of the Republic

before the National Congress. In communicating this to you, I take

pleasure in anticipating the good sentiments that animate me for

the cultivation of better relations with the Government over which

Your Excellency so worthily presides, presenting to you at the same

time my good wishes for the well-being of the Republic and for Your

Excellency's personal happiness.

"I am, Your Excellency's sincere

and devoted servant,

"F. BERTRAND."

REPLY FROM THE PRESIDENT OF SALVADOR.

"SAN SALVADOR,

"_March 28, 1911_.

"_To H.E. President Dr. Bertrand, Tegucigalpa._

"I am delighted to receive Your Excellency's important message,

which conveys to me the flattering news that such a distinguished

citizen, to whom I am bound by chains of fraternal sympathy, has

to-day taken possession of the elevated office of President of that

Republic. Such a happy event is received with immense rejoicing by

my Government and the general public, because it implies for the

sister-Republic of Honduras peace and progress. I send good wishes

for the well-being of Your Excellency, to whom I am pleased to offer

the testimony of my perfect friendship and sympathy.

"MANUEL E. ARAUJO."

CHAPTER VII

The army--Division of forces--Active reserve--Auxiliary--

Republic's fighting strength--Military education--Strict

training--Excellent discipline--Schools and polytechnics--

Manual training--Workshops and output--Economies in

equipments--Garrison services--Barracks--Destruction of

Zapote Barracks--New constructions at Capital, Santa Ana,

Santa Tecla, Sitio del Niño, Ahuachapán, Cojutepeque, San

Miguel--Annual expenditure.

The National Army of the Republic of Salvador is divided into three

main sections, each of which is under the orders of a Departmental

Commander, the only superior to whom is the Minister of War. In

the Department of San Salvador, which comprises the Capital, the

command of the troops is vested in the hands of the Minister, and

special commissions are held in connection with this command. The

first of these commissions covers the Attached and Reserve Forces

of the whole Department; the second relates to the Active Forces of

the Department quartered outside the Capital; and the third deals

with the two military zones into which the Military District of San

Salvador is divided.

The entire strength of the Salvadorean Army is, approximately, as

follows:

Active Force consists of 78 Staff Officers, 512 Officers, 15,554

Troops, or, approximately, 26 Battalions.

Auxiliary Force consists of 49 Staff Officers, 356 Officers,

11,176 Troops, or 18-1/2 Battalions.

Reserve Force amounts to 251 Senior Officers, 1,743 Officers,

56,151 Troops, or 93-1/2 Battalions.

[Illustration: COLONEL, ADJUTANT, AND CAPTAINS OF COMPANY.]

[Illustration: CADET CORPS, SCHOOL OF SERGEANTS.]

This gives the total strength of the Effective Army as--378 Senior

Officers, 2,611 Officers, and 82,881 Troops, or 138 Battalions, more

or less.

The Government, on the advice of the late President, General

Figueroa, have devoted the closest care and attention to the

question of military instruction, and the system at present in force

is the outcome of the intelligent study of similar systems in force

in other countries, and the adaptation of the best features existing

in each. A very high _esprit de corps_ exists among the Salvadorean

troops, and, for the most part, they enter upon their schooling and

training with both zeal and interest. It must be remembered that a

great proportion of the troops are merely Indians; and it speaks

well for them that they should take so kindly to a course of what

really amounts to mental and physical restriction, which, after all,

is an experience somewhat different to what they and their ancestors

have been accustomed, except when serving as serfs under a brutal

Spanish dominion.

Conspicuous success has attended these courses of military

instruction, especially in regard to the 1st Infantry Regiment,

which is quartered at San Salvador, and to the 1st Artillery, which

is quartered at Santa Ana. Here the men punctiliously attend the

lectures upon military subjects which are delivered by the regular

officers, as well as by means of ordinary instruction classes. In

other garrison towns night classes are held regularly each evening

of the week, the instructors in these cases being the officers

quartered with the garrison, as well as an eminent German Professor

(Herr Alfred Vischer) who was engaged from Germany especially to

impart military education to the Salvadorean troops.

A School for Sergeants and Corporals has also been established,

with the idea of training these non-commissioned officers for

appointments to higher rank in the army. This school was some time

ago joined to the Polytechnic Institute, and placed under the

command of the Director and Sub-Director of the latter institution;

but subsequently, owing to a disastrous fire which broke out and

destroyed a portion of the Zapote Barracks, in which the classes

were customarily held, the two schools had to be separated and

conducted in separate establishments.

It is characteristic of the broad-mindedness of the Salvadorean

Government that among the instructors engaged was Colonel Armando

Llanos, of the Chilian Mission, who for a considerable time had been

Instructor of the Polytechnic, and later was appointed Director

and Commandant of that school. In addition to the Director and

Sub-Director, the School for Sergeants and Corporals has a Doctor, a

Paymaster, two Captain Instructors, eight official Company Ensigns,

and two Civilian Professors. All of the officers who serve in this

corps have to enter through the Polytechnic School, and among them

have been many distinguished cadets.

For the use of the officers there exists a very agreeable Club,

at which they can procure their full meals and all kinds of light

refreshments at moderate prices; while the usual amusements, such

as drafts, cards, billiards, etc., are provided for them. So

comfortable is this Club made that the officers, as a rule, find

very little inducement to visit the larger towns in search of their

amusements; a matter of great importance is this to them, in view of

the fact that the barracks are, as a rule, situated at some distance

from the City, and railway travelling is, under any circumstances,

rather expensive.

In addition, this school has a number of workshops attached, where

shoemaking, blacksmithing, tailoring, beltmaking, etc., are carried

on, the output providing the principal requirements of the garrison,

including the supply of uniforms for the officers.

The staff of officers and cadets of this school, together with the

troops who occupy the annex, take part in periodical reviews and

manoeuvres; and even severe military critics have been obliged to

admit that the smartness and orderliness of the troops are in the

highest sense of the word praiseworthy.

The course of instruction which is followed appears, indeed, to

be very thorough, while the examinations through which officers

have to pass are in every way drastic and thoroughly "stiff." The

Polytechnic has turned out some very smart officers, the supply

being fully equal to the demand.

Of late the Polytechnic School has been provided with a first-class

physical and chemical laboratory, equipped with most modern

apparatus. The annual expenditure upon this establishment may be put

at between $65,000 and $70,000, which includes all the salaries paid

to the Professors and the fees to the officers who deliver lectures,

the maintenance of the cadets and troops, forage for their horses,

and all general expenses.

It is the practice at these schools to have field-days, when the

troops, as well as the cadets undergoing instruction, take part.

Upon these occasions they go through most of the features of an

ordinary campaign, including embarking and disembarking upon the

various lakes and inland watercourses, shooting and camp-pitching,

bridge-building, and a thorough training in the evolutions of field

artillery. The various cadets who are attached to the Engineers

Corps, Telephone and Telegraph Sections, and Medical Staff, have

to go through courses in the duties of these particular branches

of the army; and it is, therefore, quite easy to understand--when

one considers the thoroughness of the training in all branches of

its service--why the Salvadorean Army should stand first among

the five Central American Republics for military efficiency. That

such training is thoroughly effective and conducted with the

best _morale_ results was proved in connection with the earlier

unfortunate trouble, when many of the officers from the Polytechnic

Schools distinguished themselves not only by fighting gallantly,

and in some cases meeting their death with bravery, on the field of

battle, but also in regard to the skill and ability with which they

handled their troops, both in defence and in attack.

In regard to the garrison services, the infantry and cavalry are

almost exclusively employed, the artillery being quartered both

in the Capital and the City of Santa Ana. The officers serve for

one year certain, and they are thus afforded every opportunity

of acquiring a sound and finished instruction, and of becoming

thoroughly disciplined. The 1st Infantry Regiment occupy commodious

and suitable quarters, and they are generally noticeable for their

smartness and soldierly appearance, when both on and off duty. Santa

Ana is garrisoned by the 1st Artillery Regiment; and here, again,

the troops are comfortably quartered, and the strictest discipline

is maintained. The barracks are located at the Casa Mata, an old

but commodious building, which has been remodelled and adapted to

present-day requirements. A new story has been added, and this is

used as offices for the Commanders and Majors of the corps, while

one side of the building has been converted into extensive stabling

for twice the number of animals that are actually needed.

In point of cleanliness and comfort the Casa Mata Barracks, as well

as those at the Capital, which I was invited to inspect, leave

little room for improvement; and it is worthy of remark that no

epidemic of any kind has broken out in these barracks for many

years past, these having remained perfectly free from contagion

even when smallpox was raging in some other parts of the Republic.

The Military Authorities are commendably particular in regard to

vaccination and re-vaccination, not only when the troops go on

active service, but at all times. There is a well-maintained army

dispensary attached to all the barracks, and every regiment in

the Republic is entitled to free supplies of medicine, drugs, and

attendance.

While duly economical in regard to its expenditure, and zealous in

seeing that nothing is wasted, the Government has done everything

that is necessary to keep the troops adequately equipped both in

arms and ammunition, uniforms and supplies. The extensive and

efficiently-equipped Government workshops are in the charge of a

German mechanic, and here many of the military criminals, who are

confined in the Central Prison, are taught useful trades, and their

services as masons, tailors, and mechanics, are employed to good

purpose. Some capital work is turned out in these workshops, such,

for instance, as military equipments, uniforms, etc. I was informed

that during the year there had been made there 2,710 complete

uniforms for the infantry and artillery, 890 for the cavalry, 545

for colour sergeants, 200 for the port police, 258 for marines; 931

soldiers' caps, 537 cartridge-holders, 2,023 putties, and 2,378

rifle-slings. Special orders had been executed in regard to 22,914

uniforms and 11,311 caps, giving the considerable total of 27,447

uniforms of all kinds, besides a large number of heterogeneous

military uniform fittings.

During this period there had been delivered to the different

garrisons of the Republic 27,223 uniforms of various kinds; 14,299

caps; 5,840 scabbards with their ferrules; 2,550 kitbags; 1,200

blankets; 1,550 pairs of cotton gloves; 562 cartridge-belts;

1,790 pairs of canvas putties; 200 pairs of leather spats; 2,040

rifle-slings; 271 pallets for soldiers; 354 cloaks; 600 pairs of

gaiters; 1,350 water-coolers; 450 canvas nosebags, etc. Although the

not inconsiderable sum of $151,723 was expended upon these and other

equipments, it will be readily recognized that the Government must

have saved enormously in its expenditure by employing the services

of its own workshops.

It is desirable to say something in regard to the character of

the buildings which the Government uses for military purposes.

References have already been made to the serious conflagration which

destroyed the handsomest and most generally used barracks in the

Republic--viz., the Zapote building. The fire broke out on March 27,

1908, the actual cause being a mystery, although it was supposed

that the disaster had its origin in the defective installation of

the electric light, a badly insulated wire having been allowed

to get into contact with one of the wooden turrets. The building

had been almost completed when this accident took place; but

fortunately, owing to the quick services which were rendered by the

garrison staff, the police, and some volunteer helpers, the total

destruction of the barracks was prevented, and the greater part of

the war material stored therein for use was saved. The barracks

have now been completed, and form one of the handsomest blocks of

Government buildings in the Capital.

In Santa Tecla, which is situated but ten miles distant from

the Capital, a large and handsome block of barracks has been

constructed, and is also practically complete, the work having been

in hand since the year 1905, but progress being considerably impeded

from time to time through various causes. It seemed, indeed, that

these barracks would prove something like Cologne Cathedral, and

never see completion; for as soon as one part was finished the work

was arrested, and before any new addition had been made the old

part had fallen into decay. Neighbouring wars, earthquake shocks,

and lack of necessary funds, all played their part in occasioning

these delays; but at length the building may be pronounced complete.

The front is constructed in two stories, the three other sides

being in one story only; and, while the exterior of the building

is constituted of handsome cut stone, the interior is of a lighter

material suitable for tropical residence. There have been over

50,000 blocks of stone cut and laid for the frontage; the total cost

will doubtless prove to be heavy, but the result achieved will have

been worth it.

In the town of Sitio del Niño new barracks have been built for the

garrison, an expenditure which has been rendered necessary in view

of the advent of the railway between Acajutla and Santa Ana, which

crosses here, and forms an important junction and stopping-place

for travellers. The barracks took several months to complete, and

they now form a very substantial addition to the town's notable

structures. The principal block of buildings has 27 yards of

frontage by 15 yards of width, including the corridors and other

buildings. The extent of frontage, which faces the railway-station,

has a notable elevation, and rests on 2 metres of stone foundation,

one course below the ground, and the other above the ground level,

which is considered to have been the most healthful style to have

adopted, the residential part of the building thus being elevated

appreciably above its foundation.

In Ahuachapán a substantial and handsome building for barracks is

also being erected, the chief material employed being masonry, while

the whole structure has been planned with a view to defence in case

of necessity. The building has four turrets, one situated at each

corner, in addition to two smaller turrets which are placed on

either side of the principal gateway. The thickness of the walls has

been decided upon with the idea of resisting the attack of artillery

of the kind usually employed in these countries. The interior of the

building is constructed of unburnt bricks, the arrangement being

of the utmost simplicity, the architect bearing in mind that the

building is destined to be used entirely for troops, workmen, etc.

In Cojutepeque a block of barracks is about to be erected, but

active construction will be postponed until the water-pipes, which

are now being laid to convey water to the city, have been completed.

In San Miguel various additional defence works have been executed

at the existing barracks, while others have been commenced, the

Government having resolved to make San Miguel a strongly fortified

town. New military stables have been added to the cavalry barracks

at Santa Ana; while in other Departments of the Republic a

considerable number of important repairs and additions to military

buildings have been completed.

From first to last the annual upkeep of the Salvadorean Army,

including both equipment and maintenance, as well as the expenditure

upon all the military educational establishments, payments for

the services of the national steamer, contributions to volunteer

regiments, reserve squadrons, etc., amounts to nearly $1,220,000;

and taking the whole of this expenditure for both War and Marine,

the total disbursement for the year 1908-09 stood as follows:

$

Private staff of the President 73,113.73

1st Artillery Regiment 155,155.69

1st Infantry Regiment 461,596.39

Cavalry Regiment 125,670.58

Polytechnic School (including subs.) 106,554.71

School of Corporals and Sergeants 100,887.38

Volunteers of the Capital 90,602.04

Reserve Squadron 52,393.87

Band of Supreme Power 45,741.59

National steamer _President_ (from January to

March) 3,943.84

-------------

$1,215,659.92

CHAPTER VIII

British Minister to Salvador--Lionel Edward Gresley

Carden--British Legation hospitality--Mrs. Carden--Government

indifference to valuable services--British Consul--No report

for twenty years--Foreign Office neglect--Salvadorean

Consuls and their duties defined--Correspondence with the

Foreign Office--Imports and Exports--British Supremacy in

1904--Germany's position.

For some reason known to the Foreign Office, but understood and

appreciated by no one else, Salvador is incorporated with Guatemala,

Nicaragua, and Honduras in its representation by a Minister-Resident

and Consul-General combined. Other nations in Europe of less

importance, and the United States of America, are represented by

separate Ministers and Consuls-General, and in some instances by

both. The niggardly Foreign Office, however, when it has contributed

the munificent sum of £2,000 for the Minister-Resident's salary,

and a further £300 as office allowance as well as £200 for the

Consul's office expenses, has done all that it thinks necessary to

sustain the dignity of Great Britain in a foreign country whose

people are peculiarly susceptible to compliments of this kind, and

leaves Salvador, Guatemala, Nicaragua and Honduras--separated from

one another not alone by hundreds of miles in actual distance, but

by many days' travel on horseback or by steamship--to make the

best they can of the arrangement. The inconvenience alike to the

particular Minister, to the British subjects living in these

Republics, and to the Governments concerned, is considerable, and at

times becomes of very serious import.

The British Minister to Salvador is Mr. Lionel Edward Gresley

Carden, a man of altogether exceptional ability and culture, a

born diplomat, and one of the most attractive personalities that

one could meet with. He was born in 1851, and is a son of the Rev.

Lionel Carden, of Barnane, Co. Tipperary, his mother being the

beautiful Miss Lucy Lawrence Ottley; and from her Mr. Carden has

doubtless inherited much of his physical attractiveness. Educated

at Eton, he was at the age of twenty-six given his first Government

appointment, namely, that of Vice-Consul at Havana, Cuba, in 1877.

A few years afterwards--namely, in 1883--Mr. Carden was attached to

Sir S. St. John's Special Mission to Mexico, and two years later

he was appointed H.B.M.'s Consul at Mexico City. It was then that

his valuable services as the British Commissioner at the Mexican

Mixed Claims Court were rendered, the Commission sitting on and off

between 1885 and 1889. While in Mexico Mr. Carden upon two occasions

took entire charge of the Legation, and in 1898 he went back to

Cuba, this time as Consul-General, remaining there until 1902.

Mr. Carden created a profoundly friendly feeling for the British

during these four years, and he is still spoken of with the greatest

esteem, not only by members of the British community, but by the

Cubans themselves, with whom he was always _persona grata_. In 1902

he was created Minister at Havana, and he remained there until 1905,

when he took up his present post as H.B.M. Minister-Resident and

Consul-General to Salvador, Guatemala, and Honduras.

Mr. Carden married Miss Anne Eliza Lefferts, a daughter of Mr.

John Lefferts, of "Flatbush," New York, U.S.A., a gracious and

talented lady who, by her kindness of heart and refined hospitality,

has endeared herself to all foreigners resident or travelling in

Guatemala. The British Legation, one of the handsomest residences

in Guatemala City, is the centre of much friendly and cultured

intercourse, not only among the British and American colonies, but

with many of the Guatemalan notabilities and families.

The only recognition that has been paid by the British Government to

Mr. Carden so far, in connection with his long and valuable services

in Latin America, has been the bestowal of the Coronation Medal in

1902. Beyond relieving him in 1908 of the burden of representing

the Government in Costa Rica in addition to Salvador, Honduras,

and Guatemala, the King's advisers have done nothing to show that

they appreciate Mr. Carden or recognize the onerous and responsible

mission which he has had to fulfil. And yet he is both by education

and temperament essentially one of the most useful and reliable

diplomats that the Government can call upon. His proper sphere would

be at one of the European Courts, or, better still, at Washington,

where his valuable and unique knowledge of Latin-American

countries and Governments would enable him to more adequately and

advantageously represent and protect British commercial interests

than does the present complacent Minister, who suggests the idea of

being more of an American in his sympathies than a Britisher.

[Illustration: MR. LIONEL EDWARD GRESLEY CARDEN, C.M.G.

H.B.M. MINISTER-RESIDENT AT SALVADOR (AS WELL AS AT GUATEMALA,

NICARAGUA AND HONDURAS.)]

It will be scarcely credible, but it is none the less a fact, that

the British Government has issued no Consular Trade Report upon the

Republic of Salvador for nearly twenty years! This fact is set

forth in the following correspondence which I attach:

"PONDTAIL LODGE,

"FLEET, NORTH HANTS,

"_April 23, 1911_.

"_To the Right Hon. Sir Edward Grey, Bart., Secretary of

State for Foreign Affairs, Foreign Office, Downing Street,

London, W._

"SIR,--I should esteem it a great courtesy if you would let

me know whether any Consular Report has been published by the

Foreign Office in connection with the Republic of Salvador; what

was the date of such report; and whether any other report of a

later period is likely to be published--and if so, when? I have

been making diligent inquiries with regard to this matter, but

can obtain absolutely no information, a fact which seems more

remarkable in view of the trade relations which prevail, and

have for so many years prevailed, between Great Britain and the

Republic of Salvador.

"My interest in the matter must plead my excuses for troubling

you, and awaiting your courteous reply,

"I remain, sir,

"Yours obediently,

"PERCY F. MARTIN."

"FOREIGN OFFICE,

"_April 25, 1911_.

"The Under-Secretary of State for Foreign Affairs presents

his compliments to Mr. P. F. Martin, and, by direction of the

Secretary of State, acknowledges the receipt of his letter of

the 23rd inst., which is receiving attention."

"FOREIGN OFFICE,

"_May 8, 1911_.

"SIR,--With reference to your letter of the 23rd ultimo, I am

directed by Secretary Sir E. Grey to transmit to you herewith,

a copy of the Consular Trade Report for Salvador for the year

1892, which is the last received.

"I am, sir,

"Your most obedient humble servant,

"(Signed) W. LANGLEY."

"PONDTAIL LODGE,

"FLEET, NORTH HANTS,

"_May 9, 1911_.

"_To the Under-Secretary of State for Foreign Affairs, Foreign

Office, London, W._

"Mr. Percy F. Martin presents his compliments to the

Under-Secretary of State for Foreign Affairs, and begs to

acknowledge the receipt of a copy of the Consular Report

concerning trade in Salvador for the year 1892, which he notes

is the last which has been issued."

It may be asked why the Foreign Office grants an office allowance of

£200 to the Consul at San Salvador if the services of that gentleman

do not include the supply of at least an occasional report upon the

trade conditions of that important country? In view of the fact

that the share of the Republic's trade with Great Britain is still

of some moment, even if it has shrunk considerably in magnitude

from what it formerly was, it seems astonishing that not a word

concerning the conditions prevailing, nor of the opportunities which

exist for promoting trade in that country, should have emanated

from a Department of State which presumably exists to protect the

interests of the nation's trade and commerce abroad.

Assuredly, never at any time were the stinging sarcasms uttered

by Burke, concerning Government services of this kind, in 1780,

more deserved than to-day. In his memorable speech on "Economical

Reform," Burke observed that the Board of Trade was "a sort of

gently ripening hothouse where members received salaries of £1,000

a year in order to mature at a proper season a claim for £2,000."

If our Consuls are expected to do nothing more than sit in their

offices in order to qualify eventually for a pension, the sooner

they are abolished altogether the better for the country's pocket.

It is to be observed that certain among the Latin-American States

have a much clearer idea of the proper qualifications for, and

the functions of, a Consul and a Vice-Consul than our own Foreign

Office, which has challenged criticism and earned condemnation

on account of the ridiculous appointments which it has made, and

continues to make, to such offices. Quite recently the Government of

Salvador published a very important Regulation relative to Consular

appointments, and this contains so much good sense, and offers

so many points which might be adopted with advantage by our own

"Circumlocution Office," that I make no apology for reproducing the

gist of it here.

According to Article I., Clause (_b_), of this Regulation, the

Consular career "has for its aim above all to promote and increase

the commerce of the country, and also to insure for it social and

political representation." Then this official Regulation gives

a general review of the obligations imposed upon members of the

Diplomatic and Consular Corps, and adds: "Certainly, in order

to fulfil these, special knowledge is needed, which can only be

acquired by patient and careful study. Diplomats and Consuls, who

go to represent Salvador in foreign lands, must especially be

presentable and must possess individuality. If any unfortunate

circumstance makes them appear ridiculous, discredit will fall, not

only on themselves, but on their fellow-countrymen." The Regulation

continues:

"Travellers have been heard to say that they have sometimes found

the Salvador coat of arms lying in a dark, dirty hovel, or in close

proximity to a pawnshop; whilst some diplomatists have been rendered

conspicuous by their ignorance of the language and customs of the

country to which they have been sent, and, above all, by their

absolute lack of patriotism. A Professor of International Law has

related of an Envoy Extraordinary of the Republic of Salvador, that

he once had to be arrested by the police in the centre of the City

of Mexico for drunkenness."

I have heard of at least one British diplomatic representative in

South America who ought to have been arrested for a similar offence,

but who escaped the indignity by reason of the wholesome respect

which the Government had for the country which he represented, even

if it had none for the representative.

"Consuls and diplomatists," goes on this document, "must not only

possess special knowledge, but must be cultured persons, honourable,

tactful, and sympathetic." In a word, they must possess the

difficult gift of knowing "how to please."

The Regulation does not actually detail these latter qualities, but

gives it to be understood that they are indispensable. It, however,

emphasizes the necessity of "facility of expression" as an attribute

of the aspirant to the Consular and Diplomatic Service, at the same

time, without requiring him to be an orator. He must be capable

of "getting out of a difficulty decently, without making himself

ridiculous."

It would be advisable, the Regulation points out, that youths who

possess the desired qualifications should be employed by the

Government in subordinate positions connected with the Consulates

and Legations, before they receive higher appointments or become

Heads. As Secretaries or supernumeraries, they would have an

opportunity of becoming familiar with the language and customs of

the people among whom they were placed. All the necessary expenses

for this arrangement should naturally be borne by the State.

"It must also be remembered," this practical Regulation continues,

"that those who fulfil the required conditions are losers from the

point of view of any financial advantages, since for some time their

remuneration will not equal that which might have been gained by

entering commerce or professional work. At the same time, youths who

dedicate themselves to this career must have sufficient patriotism

and ambition to figure in the posts of honour. No time must be lost

in the task of training up Consuls, and as the perfection of human

work has resulted in the evolution of specialists, so the Government

must not too seriously consider the question of economy, but must

allow these young men to be sent to other countries, and to remain

in the same post long enough to specialize in their profession."

According to the new laws affecting the appointment of

Consuls, the regulations call for a division into two distinct

ranks--consuls-general and consuls _de carrière_ (irregular); and

consuls _ad honorem_ (honorary). The first-named are appointed

to: Hamburg (Germany), Antwerp (Belgium), Barcelona (Spain), San

Francisco (U.S.A.), Mexico City (Mexico), Paris (France), London

(Great Britain), Genoa (Italy), Guatemala City (Guatemala),

Tegucigalpa (Honduras), Managua (Nicaragua), San José (Costa Rica).

The annual remuneration is £720 for the Consuls-general, and £480

for the Consuls.

The honorary consuls are at Panamá City, Panamá; New York City,

U.S.A.; Liverpool, England; Bordeaux, France; Berlin, Germany; and

New Orleans, U.S.A.

The first-named officials must be Salvadoreans and citizens of the

Republic; while the second may be of any nationality. These latter

may deduct from the fees collected by them such amounts as may be

necessary to cover office expenses, and the remuneration allowed

them under Article 186 of the organic law of the consular service.

The Government of Salvador considers that "those States which

maintain permanent Legations should keep themselves regularly

informed of all the antecedents and course of the questions that

are to be discussed. They should have a perfect knowledge of the

circumstances that may contribute to a solution favourable to

their interests; their diplomatic Ministers should have had an

opportunity of quietly studying the weaknesses of those persons

with whom they have to negotiate. The State that does not maintain

permanent representatives will experience difficulties of all kinds

in the most insignificant negotiation. If its Government conducts

affairs by means of a Foreign Office, by the post or telegraph, it

will be exposed to evasive replies and delays, which will be to the

advantage of the other State; and if a Special Mission is sent,

whatever may be the personal capacity of its chief, he will be in

unknown territory, and will lose precious time whilst he is studying

men and things sufficiently to master the situation, and to be able

to deduce from it the necessary material to bring to a successful

issue the negotiations entrusted to him."

These are all very sensible and apt observations, which I

respectfully bring to the attention of Sir Edward Grey, our present

Foreign Secretary, and the many "Official Barnacles" who surround

him and advise him in regard to the appointments to the Consular

Service.

The last British Consular Report from Salvador is dated "June 30,

1893," and relates to what took place during the previous year,

namely, "1892." It is from the pen of Mr. C. S. Campbell, then

Consul-General, and is addressed to the Foreign Minister of that

day, the Earl of Rosebery. It is apparent from this document, which

consists of exactly six pages, that Great Britain stood second on

the list of Imports, and third on the list of Exports, the figures

being as follows:

-----------------+----------------------+-----------------------+

| Imports. | Exports. |

Country. +----------+-----------+-----------+-----------+

| 1891. | 1892. | 1891. | 1892. |

-----------------+----------+-----------+-----------+-----------+

| £ | £ | £ | £ |

United States | 122,047 | 104,587 | 247,632 | 397,055 |

England | 121,523 | 121,210 | 100,974 | 110,043 |

Germany | 46,744 | 37,018 | 212,276 | 108,618 |

France | 74,444 | 58,819 | 163,079 | 131,586 |

Italy | 12,504 | 9,514 | 92,282 | 55,128 |

Spain | 3,905 | 3,772 | 5,297 | 3,126 |

Sundry | 60,214 | 43,557 | 146,544 | 136,692 |

+----------+-----------+-----------+-----------+

Total | 441,381 | 378,477 | 968,084 | 942,248 |

-----------------+----------+-----------+-----------+-----------+

It is clear from these figures that British trade with Salvador

was something considerable and well worth maintaining, having at

that time approached near that of the United States of America, in

spite of the great geographical advantage which the latter country

possessed--and still, of course, possesses--over Great Britain or

any other European country. Let us now glance at the position of

affairs a few years later:

IMPORTS AND EXPORTS BY COUNTRIES, IN GOLD DOLLARS ($4.85 = £1).

IMPORTS.

+--------+--------------------+--------------+---------------+

| Year. | Country. | Amount. | Percentage. |

+--------+--------------------+--------------+---------------+

| | | $ | |

| 1904 | England | 1,304,576 | 36·1 |

| | Germany | 404,422 | 11·2 |

| | United States | 1,002,437 | 27·8 |

| | Other Countries | 898,642 | 24·9 |

+--------+--------------------+--------------+---------------+

EXPORTS.

+--------+--------------------+--------------+---------------+

| Year. | Country. | Amount. | Percentage. |

+--------+--------------------+--------------+---------------+

| | | $ | |

| 1904 | England | 1,482,319 | 22·4 |

| | Germany | 958,533 | 14·4 |

| | United States | 1,103,030 | 16·6 |

| | Other Countries | 3,091,563 | 46·6 |

+--------+--------------------+--------------+---------------+

It will be observed that Great Britain in 1904 actually led in

the Republic's trade with foreign countries; but nevertheless the

Foreign Office deems this fact so unimportant that it will not

trouble to publish a syllable concerning the commerce of that

Republic, for the information of the industrial and trading world.

The average total of the foreign trade of the Republic of Salvador

may be taken as $10,600,000 (gold), or, say, £2,120,000, with a

balance of $2,250,000 (gold), or, say, £450,000, in favour of the

Republic. And it is when we come to analyze the imports from foreign

countries that we recognize how closely Great Britain and the United

States run together, and how greatly we have to fear our keen

American rivals as competitors. For the year 1909 we see that--

Great Britain sold to Salvador goods worth $1,438,613.90

United States " " " 1,344,315.79

-------------

A trifling balance in favour of Great Britain of $94,298.11

--or, say, £18,859. Our principal trade was in cotton, both

manufactured and yarn; while the United States took premier place in

flour, hardware, drugs and medicines, boots, shoes, machinery, and

agricultural implements. In these latter goods no country can touch

the United States for cheapness and general novelty; but it is only

fair to add that the goods are "made to sell," or, in other words,

they are "cheap and nasty"--a fact which the purchasers are finding

out for themselves. Until British manufacturers export something

considerably cheaper than the implements and farm machinery that

they supply at present, the Americans will continue to hold this

market. The Germans barely as yet have made much impression with

their agricultural implements. Although upon some of the _fincas_

which I visited--mostly owned or managed by Germans--I came across

some ploughs and reaping machines from the Fatherland, I was frankly

informed that they were entirely unsatisfactory, and were about to

be discarded in favour of some United States machines which had been

offered "at one-half the price paid for the German inventions."

STATEMENT OF EXPORT TRADE TO JUNE 30, 1910.

+---------------+-------------------+-----------------+------------------+

| Country. | Value of Exports. | Country. | Value of Exports.|

+---------------+-------------------+-----------------+------------------+

| | $ | | |

| Germany | 1,410,693.10 | Austria-Hungary | 388,035.33 |

| United States | 1,358,868.85 | Great Britain | 352,843.73 |

| France | 1,043,402.71 | Spain | 164,907.21 |

| Italy | 584,312.60 | | |

+---------------+-------------------+-----------------+------------------+

These figures are remarkable for the fact that they show _inter

alia_ that Germany had in the course of twelve months ousted France

from first place on the export list, and had supplanted her by an

extraordinary amount of advance. To prove this I give the official

figures for the first half of 1909, and which are as follows:

$

France took goods value 1,062,674

Germany " " 837,040

United States " " 636,721

Italy " " 352,122

Spain " " 281,961

Great Britain " " 111,312

It would therefore appear that, while Germany increased her trade

with Salvador from $837,040 in 1909 (six months) to $1,410,693 in

1909-10 (twelve months), France showed a decrease over the same

period of from $1,062,674 to $1,043,402. Great Britain's position is

so inferior as to need no comment whatever.

It will be noticeable that Germany was in 1910 the best customer to

the Republic, and took fully four times as much of her produce as

Great Britain. The greatest amount was represented by coffee, as

will be seen from the subjoined particulars of the class of articles

which were exported, as well as from the values which I add:

+--------------------+--------------++-------------------+--------------+

| Article. | Value. || Article. | Value. |

+--------------------+--------------++-------------------+--------------+

| | $ || | $ |

| Coffee | 4,661,440.98 || Tobacco (manufac- | |

| Gold, silver, lead | 560,569.64 || tured and leaf) | 9,638.67 |

| Sugar (brown) | 222,379.47 || Lumber | 3,773.07 |

| Indigo | 107,936.72 || Rice | 3,312.23 |

| Balsam and balsam | || Deerskins | 2,837.63 |

| seed | 39,187.97 || Hat palms | 2,723.21 |

| Cattle and hides | 36,167.46 || Miscellaneous | 23,247.92 |

| Rubber | 23,491.58 || | ------------ |

| | || Total | 5,696,706.85 |

+--------------------+--------------++-------------------+--------------+

[Illustration: FRONT OF SERGEANTS' SCHOOL, SAN SALVADOR.]

[Illustration: FRONT OF SERGEANTS' SCHOOL, SAN SALVADOR.]

That the Germans mean to thoroughly exploit the Republic of

Salvador, moreover, and if they cannot secure a holding in one

branch of trade they intend to try in another, or in a dozen others,

is abundantly clear. In the month of September, 1909, a Treaty of

Commerce between the Republic and Germany was celebrated, and so far

the results have been very encouraging. Out of 463 steamers and 89

sailing vessels which visited the different Salvadorean ports last

year (1909-10), during the first nine months there were 153 German,

as against 245 United States, 79 Salvadorean, 74 Honduranean, and

not _one_ British bottom.

CHAPTER IX

United States information for traders--Improved Consular

services--Mr. W. E. Coldwell--United States and Salvador

Government--Bureau of Pan-American Republics--Mr. Mark J.

Kelly--Exceptional services--The American Minister, Major

W. Heimké--Salvadorean Minister to U.S.A., Señor Federico

Mejía--Central American Peace Conference and the United States.

How beneficial is the attitude of the United States of America in

collecting and disseminating every particle of information which

can prove of the slightest service to American traders! Month by

month, through the medium of the _Pan-American Bureau Bulletin_,

a Government-endowed institution journal of the utmost utility,

not only to American traders, but to those of every country of

the world, every item of commercial, industrial, and financial

information culled from Latin-American countries is published in

tabular form, and supplied at a merely nominal figure to all who

care to avail themselves of it. Such information is primarily the

result of the researches and the reports made by United States

Consuls in the countries mentioned, and it is perfectly certain that

none are permitted to enjoy "allowances" of £200 a year, as is our

Consul at San Salvador, without showing something in return for such

payment in the shape of a report of some kind or other.

Here I may record that of Mr. Walter Edmund Coldwell, our unsalaried

Consul at San Salvador, I have nothing whatever to say but what is

complimentary, since he is personally a very amiable and courteous

gentleman, ready and willing at any time to aid any Britisher

seeking his advice, and which, in view of his experience and

complete knowledge of Spanish, is certainly of great value. I feel

certain that, had any request come from the Foreign Office addressed

to Mr. Coldwell for a report upon trade conditions and prospects in

Salvador, he would have been perfectly prepared to supply, as he is

undoubtedly capable of supplying, it in view of his long residence,

extending over twelve years. I go further, and suggest that had Mr.

Coldwell not waited for any such request, but had acted upon his own

initiative and sent in a report to the Foreign Office, such would

either have been pigeonholed or the Consul have been snubbed for

his pains. It cannot be too often observed, nor too emphatically

pointed out, that it is _not_ the officials of our Consular

Service who are wholly to blame; it is the "System" perpetuated by

successive Governments--it matters not one pin's head whether they

be Liberals or Conservatives or a hybrid mixture of many political

parties--which is all wrong, and the ignorant and indifferent

Permanent Officials at Downing Street who are responsible for the

appalling condition of incompetency which our Consular Service

to-day displays.

The following incident will show with what care and attention the

Government of the United States follow every little incident and

occurrence that can in any way affect trade relations between

themselves and the smaller Latin-American States. In the month of

February, 1909, the United States Minister sent to his Government

a complaint to the effect that the Salvadorean Government allowed

favoured-nation treatment to certain articles of French origin

imported into the Republic, which treatment was not accorded

to similar articles from the United States. The United States

Government at once instructed the Minister at San Salvador to ask

for an explanation, and he as promptly got it; not, perhaps, in the

precise terms which he could have wished, but--he got it! The answer

came from the Minister for Foreign Affairs in the following terms:

"The Treaty of Peace and Amity, Commerce and Consular Rights

celebrated between Salvador and the United States on December 6,

1870, having become inoperative by reason of the denunciation

of the same on the part of the Government of Salvador, in

accordance with the prearranged conditions from May 30, 1893,

merchandise proceeding from the United States can only be

accorded such treatment in the Customs Houses of Salvador as is

provided for in the general tariff law of the Republic, without

special concessions or privileges."

The answer was so convincing and so conclusive that the United

States Government forthwith proceeded to celebrate a fresh Treaty

with the Republic, and has since then enjoyed all the privileges

which such can procure.

Upon a previous occasion--namely, in 1907--the United States

Vice-Consul in San Salvador having requested from the Government of

the Republic a general statement of economic conditions prevailing

throughout the country, the reply was published very soon afterwards

in the form of an elaborate and complete account of the commercial,

industrial, and financial conditions of the Republic, the whole

taking up the greater portion of a special number of the _Diario

Oficial_. One cannot imagine a British Consul having the enterprise

to make any such request from a foreign Government to which he is

accredited, although the information, if sought, would be as readily

forthcoming as it was for an American Vice-Consul. But when we

witness the sorry spectacle of British officials allowing--or being

allowed--twenty years to pass by without having issued any kind of

report for the information of his countrymen, what can be expected?

The United States Secretary of State officials, who are so ably

assisted by the co-operation of the Pan-American Bureau and its

admirable monthly publication, _The Bulletin_, deserve every credit

for the unflagging interest which they manifest in promoting and

assisting their country's trade abroad. In this matter, at least,

we might advantageously follow the example of our Transatlantic

competitors. As it is, we should feel deeply grateful to the

American Government for periodically issuing information which is

as accessible to Britishers, or to any other nationalities, as to

the Americans themselves. And it costs us nothing; which should be

gratifying to that large class of individuals who enjoy getting

something without putting their hands into their own pockets.

It seems a very remarkable fact that Salvador, like a great

number of other Latin-American States, has been enabled to find

in Great Britain a thoroughly capable and influential Consular

representative, while Great Britain has so signally failed, except

in some few instances, in securing similar representatives abroad.

Nor is this circumstance the less noteworthy when it is observed

that the Salvadorean Consul-General in London is not a native of

that Republic, but an Irishman, and is probably one of the first--if

not the only--Irishman who has filled a similar position. Mr. Mark

Jamestown Kelly, F.R.G.S., F.S.A., etc., has been the Consular

representative of both the Republics of Salvador and Honduras for

over fifteen years, and it is only within the past few months that

he has been compelled, owing to continued pressure of work in

connection with the chairmanship of the Salvador Railway Company, to

abandon his consular position in regard to Salvador. How greatly the

Government of that State regretted Mr. Kelly's retirement, and how

strong was the pressure brought to bear to induce him to withdraw

his resignation, was fully evidenced in a remarkable letter of

thanks which the Government addressed to Mr. Kelly lately, and from

which the following is a brief extract. After referring in eloquent

terms to the deep disappointment which the Government felt at Mr.

Kelly's inability to reconsider the question of resignation, and

having announced that the Executive had therefore most reluctantly

accepted the inevitable, and had arranged to send over at an early

date a representative to relieve Mr. Kelly of his official duties,

Dr. Manuel E. Araujo, the President of the Republic (who has long

been personally acquainted with Mr. Kelly), addressed him as follows:

"I deplore profoundly your resignation of the business of the

Consulate-General, which with so much tact and industry you

have been discharging during so long a lapse of time; and

your resignation of your post, being based upon reasons which

I cannot set aside, has this day at last been accepted by my

Government, but with the hope that you will always contribute

in one way or another with the very valuable contingent of your

wisdom and experience in all matters relating to the good name

and honour of Salvador. I tender to you in consequence, in my

own name and in that of my country, the most whole-souled thanks

for the very important services which you have afforded to

us in the past, and which we do not doubt we shall continue to

receive from your well-known magnanimity."

[Illustration: MR. MARK JAMESTOWN KELLY, F.R.G.S.

FOR 15 YEARS CONSUL-GENERAL IN GREAT BRITAIN FOR SALVADOR (RETIRED

JUNE, 1911), AND CHAIRMAN OF THE SALVADOR RAILWAY COMPANY, LD.]

Mr. Kelly has undoubtedly rendered lasting and exceptional services

to the State of Salvador during the long period over which he has

represented its commercial and financial interests in this country.

As its Financial Agent in Europe, he carried out the long and

difficult negotiations which ended in successfully settling and

discharging the foreign debt of the Republic, and permitted of that

great undertaking, the construction of a through line of railway

from the port of Acajutla to the Capital of San Salvador, being

financed and completed. Last year Mr. Kelly also negotiated, with

much tact and conspicuous ability, a new Salvador Foreign Loan,

which to-day ranks as a gilt-edge security on the London Stock

Exchange, and stands at a substantial premium.

Besides his Consular appointments, Mr. Mark J. Kelly holds the

positions of Chairman of the Salvador Railway Company, Limited, and

President of the Salvador Chamber of Commerce in London; while he is

generally regarded as one of the greatest living authorities upon

the questions of foreign exchange and Latin-American commerce.

For many years Mr. Kelly was identified with railway construction

in Ecuador and later on with Salvador, and his great charm of

manner, coupled with his extraordinary grasp of detail and intimate

knowledge of finance in all its aspects, have combined to make his

co-operation in financial and commercial matters a question of the

greatest value to the latter country mentioned, as well as to all

who have invested money therein. Mr. Kelly is a perfect Spanish

scholar; and when I was travelling with him in Salvador, many of

the natives with whom we conversed frankly informed me that, but for

his distinctive European name, Mr. Kelly might very well pass for a

pure-bred Spaniard or Spanish-American, so admirably did he converse

in and write their language. Of the newly appointed Salvadorean

Consul-General. Señor Don Artúro Ramón Ávila, I have spoken in

Chapter III.

Major the Hon. William Heimké, who was appointed the Minister of

the United States of America to Salvador in 1909, is a native of

France, having been born in that country in 1847 and naturalized

in the United States. He went to America at a very early age,

and entered the regular army when he was but fifteen. He served

with distinction during the Civil War, being engaged in several

important battles. After the war he served as headquarters clerk

under Generals Sherman, Pope, Hancock, and Sheridan, and he was

also in the Quartermaster's and Commissary Departments. In 1881 he

became purchasing agent for the Mexican Central Railroad, and in

1883 was appointed general manager of the Chihuahua and Durango

Telephone Company in Mexico. In 1887 he again entered the service

of the United States as Vice-Consul at Chihuahua. He was advanced

to Consul in 1892, and retired in 1893. In 1897 he became Second

Secretary of the United States Legation in Mexico, and was promoted

First Secretary of their Legation in Bogotá, Colombia, in 1906.

He was appointed Envoy Extraordinary and Minister Plenipotentiary

to Guatemala on March 10, 1908. Major Heimké is a member of the

American Academy of Economic, Social, and Political Science of

Philadelphia, and of the International Folk Lore Society of Chicago.

One of the kindest and most hospitable of men, Major Heimké, in

conjunction with his charming wife, a lady of the greatest culture

and artistic tastes, makes his home one of the most pleasant places

for Americans and foreigners alike sojourning in San Salvador. Major

and Mrs. Heimké have firmly established themselves in the regard and

the esteem of the Salvadoreans; and they are undoubtedly the most

popular diplomatic representatives of the United States of America

who have occupied the Legation.

The Salvadorean Minister to the United States of America is Señor

Federico Mejía, who is one of the most prominent men in his country,

having for some time been Minister of Finance and Public Credit.

Upon his introduction to his present office on April 6, 1907, he was

officially received by President Roosevelt, and upon this occasion

Señor Mejía said:

"Mr. President: I have the honour to place in your hands the

autograph letter by which I am accredited as Envoy Extraordinary

and Minister Plenipotentiary of the Government of Salvador, near

the Government of Your Excellency. I present to you at the same

time the letters of recall of my distinguished predecessor, Dr.

Don José Rosa Pacas.

"Nothing could be more pleasing to me than the honour of

conveying to Your Excellency the expression of my Government's

wish to maintain and draw closer, if that were possible,

the friendly relations which happily exist between our two

countries; and in the discharge of the duties of the mission

which is entrusted to me, I shall spare no effort to voice

faithfully the sentiments of the Salvadorean people, trusting

that I shall meet, in so doing, the same cordiality and interest

you have manifested in the cause of the welfare of my country,

and that of the other States of Central America.

"Accept, Sir, the wishes that I make in the name of the

President of Salvador, and in my own, for the prosperity and

further aggrandizement of the great American nation, and for the

health and personal welfare of Your Excellency."

To this friendly and well-expressed address President Roosevelt

replied in equally felicitous terms as follows:

"Mr. Minister: I receive with great pleasure the cordial

sentiments of friendship to which you give expression, both for

your Government and for the Salvadorean people. Entertaining

the most sincere wishes for the prosperity and happiness of

your countrymen, and having at heart the continuation and

strengthening of the good relations which have already subsisted

between our two countries, I assure you of my co-operation in

your aim to that end. I have no doubt that, while worthily

representing the Government by which you are accredited, you

will so conduct your mission as to merit and receive the sincere

friendship and high regard of that of the United States. I

am glad, therefore, to greet you as Envoy Extraordinary and

Minister Plenipotentiary of Salvador to the United States. I beg

that you will convey to the President of Salvador my cordial

appreciation of his message of goodwill to me personally, and

for the prosperity of the United States, and assure him of my

earnest reciprocation of his wishes. For your own good wishes I

thank you; and I trust you will find your residence with us to

be most agreeable."

[Illustration: SIDE VIEW OF "EL ROTULO" BRIDGE.]

[Illustration: THE NATIONAL ROAD LEADING TO LA LIBERTAD, SHOWING "EL

ROTULO" BRIDGE.]

On December 20, 1907, the Central American Peace Conference, held

in Washington, concluded a Convention providing for meetings of

Central American Conferences to be convened on January 1 of each

year for a period of five years, with the object of agreeing upon

the most efficient and proper means of bringing uniformity into the

economical and fiscal interests of the Central American States. The

Peace Conference designated Tegucigalpa, Honduras, as the place of

the first meeting of the Central American Conference, and prescribed

that the Conference should choose the place for holding the next

Conference, and so on successively until the expiration of the

Convention concerning future Central American Conferences.

The first Central American Conference, which met in Honduras on

January 1, 1909, selected San Salvador as the place for holding the

second Central American Conference, which was underlined for January

1, 1910. For unavoidable reasons the members of the Conference could

not meet in San Salvador on the date prescribed, and the President

of the Republic, acting in conformity with Article II. of the

aforesaid Convention of the Peace Conference, postponed the meeting

of the second Central American Conference until February 1 of the

same year, which met on that date and concluded its work on the

fifth day of the same month.

The results obtained by the Conference were the celebration of six

Conventions, all of which were signed on February 5 of last year.

The first of these Conventions provides for the establishment in

Costa Rica of a pedagogic institute for Central America; the second,

for the unification of the Consular service abroad of the five

Republics; the third provides for monetary uniformity on a gold

basis; the fourth, for Central American commercial reciprocity;

the fifth, for the adoption of the metric system of weights and

measures; and the sixth defines the functions of each Government

toward the Central American bureau in Guatemala.

CHAPTER X

Latin-American trade and British diplomacy--Serious handicap

inflicted by the Government--Sacrificing British interests to

American susceptibilities--The British Foreign Office's

attitude towards its diplomatic representatives--Why British

trade has been lost to Salvador--Free Trade and its advocates--

The Salvadorean view--German competition--Methods of bribery in

vogue--The Teutonic code of trade honour.

If ever the secret veil which shrouds diplomacy in all countries

from betrayal could be drawn aside, and some wholesome sidelights

could now and again be thrown upon the proceedings of our

responsible Ministers, a great many disquieting, and even alarming,

things would come to light. These would show, for example, that the

great declension in British trade during the past few years has

been in a very considerable measure due to the astounding character

of the British Government's instructions to representatives abroad

in regard to the attitude of the United States of America. It will

be news--and very disquieting news--to the general public to know

that every effort has been made by our Government to consult the

wishes and the feelings of the United States in reference to almost

every trade treaty which has been either suggested or entered into.

The failure of our diplomats abroad to carry to a successful issue

a commercial treaty proposed or desired has not infrequently been

attributed to the neglect, or perhaps to the inability, of the

particular Minister employed. In practically every case, however,

it would be fairer to place the blame for the failure upon the

shoulders of the Foreign Office.

I know of several cases in which this is the undoubted and

undeniable cause of the breakdown of our negotiations in the very

moment of their imminent success. A craven and absurd desire

not to "hurt the feelings" of our greatest rivals and our most

clever competitors--the Americans--has dictated a policy which has

resulted in the earnest efforts of our skilled and able diplomatic

representatives abroad being absolutely wasted, and they themselves

being placed in a deeply humiliating position, which I need not say

has been as keenly resented.

This was the case with a highly important treaty which we were

upon the point of completing with Cuba; it has been the case with

a similar agreement entered into tentatively with the Republic

of Honduras, and it has been so likewise with the Republics of

Guatemala and Salvador. With how many other possible excellent trade

markets it has also had effect I do not know; but it is not very

difficult to imagine.

So pronounced has this policy become of late, that it is now having

a decidedly bad effect upon our commercial and financial relations

generally with the Latin-American Republics. Formerly these small

independent States looked upon Great Britain as the one Power to

whom appeals could be made in all matters of dispute, no matter

about what or between whom, with a moral certainty of a just and

impartial decision being given. This was in the days when Great

Britain still preserved her dignity and independence of thought, and

before her Government had learned to truckle to the bluff of the

Roosevelt-Philander Knox diplomacy. To-day, although there is more

reason than ever to ask for the calm and disinterested advice of

Great Britain in the numerous, and even dangerous, questions which

are continually arising between the Latin-American Republics and the

United States of America, it is recognized by the former that it

is entirely useless to appeal to Cæsar any longer, since Cæsar has

become an advocate for, or a creature of, the United States, and, so

far from acting as judge, merely now pleads as an amateur attorney.

It is necessary to travel in these Latin-American countries to

thoroughly comprehend the full effect of this mistaken and--I do not

hesitate to apply the term--degrading British policy. The result is

that the Republics themselves deride us, the United States laugh

at us, and our trade is meantime leaving us. The small Republics

are frightened to enter into any private negotiations with our

diplomatic representatives, since they are fearful, in the light

of previous unfortunate experiences, that their secrets may in due

course be revealed to Washington as a sop to the United States, and

that their efforts to strengthen their commercial bonds with us

will merely serve to embitter their own relations with the powerful

Americans, and without in the least improving their position with

Great Britain.

It is almost inconceivable that our Foreign Office should ask the

opinion, and to all intents and purposes solicit the approval, of

the United States before completing any trade compact with the

Latin-American Republics. What our Government has to fear or to

hope for from the United States, Heaven only knows; nevertheless

it is the sanction of Washington which is sought for before any

treaty can be now concluded with any of the Latin-American States;

and, what is much more sad to have to add, without such sanction no

treaty seems possible. That the United States of America is, or ever

has been, foolish enough to consult our Government under similar

circumstances is not upon record.

Our Ambassador Extraordinary and Plenipotentiary to the United

States of America, the Right Hon. James Bryce, is credited, by those

who are privileged to know him, with the decidedly Utopian idea

of associating the trade aspirations of both America and England

in Latin-America. It is doubtful if there exists another equally

eminent individual in the world who entertains any such wild and

impossible notion. It would be as easy to associate fire and water

as to form a bond, or even an understanding, between the traders

of America and England, since they are, and always must be, keen

rivals in the markets of the world. Mr. Bryce thinks, perhaps,

that it is feasible to divide up the universe into commercial and

financial zones, which shall be, thereafter, apportioned among the

United States and Great Britain for their lasting benefit? He must

be a very innocent and a very unimaginative individual if this be

his conception of the methods of latter-day trade competition. Mr.

Bryce has perhaps cherished the idea that our common language should

form a bond of union, and that this should become the central pivot

upon which our relations with the United States should revolve? He

is even credited with the aspiration that a Customs Union might be

formed on the basis of reciprocal Free Trade, with mutual advantage

to all. The commercial jealousy between the two nations has upon

more than one occasion been demonstrated, as witness the disputes

some years ago, and the Venezuelan boundary embroglio, which nearly

precipitated a conflict between the two countries.

But whatever be Mr. Bryce's precise ideas, the fact remains that he

has viewed with but little favour any treaty of trade and commerce

which our diplomatic representatives abroad may have suggested

where the interests of the United States of America were likely to

suffer. The Foreign Office, holding this distinguished diplomat--as

indeed they may justly do--in high esteem, have consulted him upon

most matters of trade, commerce, and finance affecting the smaller

Latin-American Republics. The Foreign Office, on the other hand,

have deemed it expedient to refer matters to Washington, with the

result that not only have our private negotiations with these small

independent States become the common knowledge of our American trade

rivals, but those representatives who negotiated the treaties have

been rendered ridiculous and contemptible, while our manufacturers

at home have been deprived of the benefits attaching to the most

favoured nation's agreements, such as the United States has itself

acquired in other directions, without having previously consulted

Downing Street or, indeed, caring one rap whether it was agreeable

or not. To the Foreign Office, therefore, the commercial and trading

communities of Great Britain owe a deep debt of gratitude!

For Mr. James Bryce as an individual it is impossible to feel

anything but esteem and regard, since he ranks as one of the most

distinguished and illustrious scholars of the day. The author of

such monumental works as "The Holy Roman Empire," "The American

Commonwealth," "Studies in History and Jurisprudence," and

"Studies in Contemporary Biography," must always rank as a man of

great ability and intellect. But, unfortunately, Mr. Bryce has

graduated in a school of diplomacy which has clouded his horizon and

diminished his chances of attaining any independent and untrammelled

view of Britain's commercial needs and the Empire's industrial

obstructions abroad. As Under-Secretary for Foreign Affairs in

1886, and as President of the Board of Trade in 1894, Mr. Bryce

was encumbered with all the machinery of permanent officialdom,

and was unable to see anything of this country's foreign trade

matters except through the narrow and often perverted views of his

subordinates.

I am very much afraid that this has interfered with some of his

subsequent policy; but of later years he has put himself to the

trouble--let us hope that it was also a pleasure--of seeing

something of Latin-America, and how British trade has to fight its

way there, an experience which might have been of great benefit

to Mr. Bryce, and of incalculable advantage to British trade in

Latin-America, if it had taken place, say, some five or six years

previously.

As a writer upon academical and historical subjects probably Mr.

Bryce has few equals, and still fewer superiors; but when discussing

British interests and making treaties for promoting British trade

in competition with American manufacturers, a child might do better

for our side than Mr. Bryce could have, or at least has, done. It is

easy to understand why he should be so extremely popular with our

friends the North Americans, and why his presence as our Ambassador

should prove so welcome and so gratifying to the acute authorities

at Washington. A malleable diplomat who sees so closely eye to eye

with them in arranging or defeating commercial treaties which could

in any way be regarded as likely to injure or to delay United States

interests, is naturally a most desirable acquisition; Mr. Bryce has

satisfactorily answered to these requirements, and, indeed, must

have frequently astounded his American friends by his complacency

and conciliatory attitude when discussing British interests.

In Mr. Philander Knox, Mr. James Bryce has had one of the very

cleverest, and I may add, least impressible, of American statesmen

to deal with, and it will remain to be seen in the future how much

Mr. Knox got out of Mr. Bryce, and how much or how little Mr. Bryce

squeezed out of Mr. Knox. "He who sups with the devil needs a long

spoon," and it will be interesting to learn, as we shall do no doubt

ere long in connection with the Anglo-American Arbitration Treaty,

the exact length of Mr. Bryce's "little concave vessel," as the

Dictionary describes it.

Mr. Bryce, who is a profound Latin scholar, will not have failed to

have noted Cicero's observations in his "De Officiis": "Sed tamen

difficile dictu est, quantopere conciliat animos hominum comitas

affabilitasque sermonis"; or, let us put it: "It is difficult to

tell how much men's minds are conciliated by a kind manner and

a gentle speech," and in both such attributes the courteous and

amiable Secretary of State at Washington excels.

In March of 1908 the representatives of the Governments of Salvador

and the United States signed, at the capital of the first-named

Republic, a convention determining the status of the citizens of

either country who renew their residence in the country of their

origin. This convention is found of great utility to the United

States citizens, more so even than to those of Salvador. There is no

such convention in force between this Republic and Great Britain.

In the previous year (1907) the Government of Salvador determined to

establish a permanent Legation at Washington, "so that the friendly

relations now existing between the two Governments may be continued

on a more intimate basis, and in order that the good counsel of the

United States may be more readily sought and obtained."

As far back as 1850 the American Minister of the day, Mr. E. G.

Squier--who, by-the-by, was a former husband of the well-known

American newspaper-owner, Mrs. Frank Leslie--negotiated a treaty

with Don Agustin Moráles, Plenipotentiary of Salvador, which

subsequently received the requisite ratification on both sides, has

since been renewed, and is in full force and effect. It secured to

the citizens of the United States all the rights, privileges, and

immunities of the citizens of Salvador in commerce, navigation,

mining, and in respect of holding and transferring property in

that State. It guaranteed to the American citizens resident in the

country full protection and enjoyment of religious freedom, and, in

short, every other right and privilege which has been conceded in

any treaty negotiated between the United States and any other nation

in the world.

Owing to the extraordinary energy and unmistakable ability displayed

by Mr. Charles H. Sherrill, the late popular and able United States

Minister at Buenos Aires, contract after contract which should--or

at least might--have gone to British manufacturers, have been

secured for America. I need only mention two instances: one for the

building of the three Dreadnoughts which are now being constructed

in United States yards; and the other an order for fifty locomotives

for the Government railways, which might--and, again, probably

would--have gone to British shops. While the United States Minister

did his level best for his countrymen, and for which he deserves

every credit and congratulation, and while his efforts on their

behalf were smiled upon with approval by the American Secretary of

State, the British Minister, locked up behind his customary reserve

and official dignity, neither could nor would move a finger to

help British manufacturers in their struggle against this serious

competition.

It seems, indeed, strange that where American, German, French,

Italian, and Belgian diplomats consider it by no means beneath

their dignity, or as at all outside their sphere, to personally

influence trade orders for their countrymen, the usual type of

British diplomat raises his hands in horror at the mere suggestion

of a Legation condescending to recognize the existence of trade,

repelling with frigid dignity any suggestion that the representative

of the British Government should concern himself with anything of a

purely commercial or industrial nature.

That the United States diplomats do not stand alone in their

gallant efforts to support American trade and commerce, and that

they are not singular in the supposition that the whole duties of

an Ambassador or Minister are confined to Government functions and

meaningless ceremonies, is proved by the energy which is displayed

by some German diplomats, who are very often instrumental in

checking the energy and frustrating the success of their American

competitors. It was only in the month of March last that Mr. H.

T. Schwerin, of the Pacific Mail Steamship Company, in testifying

before the Senate Committee on Interoceanic Canals, then sitting at

Washington, declared that his own company had lost 60 per cent. of

its carrying business to German lines largely through the activity

of the German Minister to Mexico, who had successfully exercised

his diplomatic influence in extending German commerce in Central

America. Distressing as this must have been to our good American

friends, I do not think that the information will be received with

feelings of much regret by British readers, especially as it will

appear to them in the light of "poetic justice," since British

commercial and industrial circles in the Argentine Republic, as

elsewhere, have suffered in exactly the same manner at the hands of

the Americans.

The trade of Central America, as has been shown, is very largely in

the hands of the Germans, for, not content with the representation

of their own industries and manufactures, a great proportion of

our own "British" Vice-Consuls are Germans by birth, if not by

choice. Thus, in both Guatemala and Honduras our trade interests

are to-day partially represented by Teutons. It can scarcely be on

account of there being no genuine Britishers available, since I have

encountered several Englishmen who could, and doubtless would, act

as Vice-Consuls, or merely as Consular Agents, if necessary.

Undoubtedly the Germans rank among the most capable of the foreign

traders doing business in these countries, as they put themselves to

the greatest amount of trouble to study the people and the local

conditions--much more so than either the British or the Americans.

The German is not only among the earliest of risers in the morning

and the latest to seek his rest at night, his store being always

the first to open and the last to close, but he avoids politics,

and discreetly retires into obscurity at the first intimation of

internal trouble. He studiously, if not willingly, falls into the

ideas and complies readily with the wishes of the country, no matter

what forms they may assume; and he is hardly ever known to complain

to or about anyone. He knows full well that it would be useless to

do so to his home Government, which, like our own, seldom concerns

itself with the personal affairs of its subjects abroad, this being

one of the reasons why the Germans so cordially hate their own

people, and especially the official classes. With them it is indeed

an absorbing hatred, and they do not hesitate to confess to it.

No other foreigner earning his living abroad seems to possess the

same gift for small economies as the German, nor his ability for

steering a clear path among the numerous spies and agents who

abound in some of the politically-ridden countries. The Germans,

both in their trade and their social relations with the natives,

are "all things to all men." They are apparently thoroughly at home

among them. One hardly ever hears of a German becoming involved

in political trouble or failing in his business. He thrives as no

other foreigner in these lands of difficulties and intrigues. It is

clear, however, why and how he manages to do so. And for him there

is no such thing as a Monroe Doctrine, which was once denounced by

Bismarck as a "piece of international impertinence." As often as not

he marries a native, and loses his identity.

[Illustration: ENTRANCE TO AVENIDA LA CEIBA AT SAN SALVADOR.]

[Illustration: THE FAMOUS AVENIDA UNDER CONSTRUCTION.]

As an instance of the German's enterprise may be cited the supply

of cloths and hats for the natives which are found exclusively in

Bolivia, the same individual trading in Peru, however, bringing

out quite a different class of stuffs and styles for that country.

The ordinary British or American manufacturer would probably

contend that it would be useless or unprofitable to make special

materials or designs of this kind so entirely unlike anything before

attempted, and he would leave the matter just there. Not so with

the observant travelling German. He first studies the question of

demand, then he sends a complete range of patterns and samples from

the looms of the native manufacturers to his house in Germany. In a

few months' time there arrive in the country the German imitation,

and, first in small, then in ever-increasing quantities, is built

up a connection; and where the Salvadorean, Guatemalan, Bolivian,

or Peruvian importer finds his materials and his hats, he buys most

of his other miscellaneous European goods, so as to have but one

account and one customer.

Then, in regard to credits, the German is most accommodating,

granting payments over twelve, eighteen, and even twenty-four

months, and never asking any interest upon his outstanding accounts.

How he does it is a mystery, more especially as his prices in no

way exceed, and in the majority of instances are below, the prices

of other European and American houses, while the number of his

bad debts is considerable. Probably there is a seamy side to all

this promiscuous trading by the German houses; but if there is,

there must likewise be some decided advantages accruing, since no

one would credit Teutonic manufacturers and dealers with motives

of philanthropy. But whether their commercial dealings with the

Latin-American races be profitable or profitless, it is beyond

question that they are extending, and extending rapidly--all

of which means that there is so much smaller a field for other

countries. These specimens of Bolivian hats, Peruvian dress-cloths,

Mexican _rebosos_, and Guatemalan _mantillas_, made in Germany,

resemble in every way the native manufactures--so closely, indeed,

that they cannot be told from the original except by an expert. The

Germans are actually making all these articles, exporting them to

these countries, and selling them there more cheaply than the native

article. The question is, "_How_ can they do it?"

It is decidedly useful to come abroad to such countries as the

Latin-American States, if only to glean a few opinions as to the

position which Great Britain occupies in the minds of the people of

these regions. There are many individuals whose judgments are well

worth recording, since while they may have gathered their ideas from

trading only--and, indeed, few of them have been outside the borders

of their own State--are sufficiently shrewd in their criticisms to

make these latter worth observing.

The good people of Salvador, like a great many other experienced

individuals, both in Latin-America and elsewhere, know the

advantages to be derived from a system of Protection, and they are

at a complete loss to understand how it is that Great Britain alone

among the trading nations of the world can "afford"--that is the

expression used--to admit a policy of Free Trade, and especially in

view of the Empire's Colonies' well-known feelings on the subject.

Here, as elsewhere, the advantages of Free Trade are admitted; but

without some form of retaliation it is absurd to suppose that any

other nations will ever accept it. The opinion in general in these

countries, where local manufactures are gradually commencing to

make themselves a potent object of attention, is that Free Trade is

desirable for all raw materials, but that a duty should be imposed

upon all manufactured articles, whether they compete with local

productions or no.

These Latin-American critics can but observe how the export trade

of other foreign countries, such as Germany, the United States, and

France, is continually increasing, while that of Great Britain,

where it does not exhibit positive signs of decay, remains in a

stagnant condition. This state of things is attributed to Great

Britain's adherence to Free Trade, and the system of Protection

adopted by its competitors. I have not encountered a single

individual with whom I have discussed such matters as these who does

not hold the opinion that, without reciprocity, real Free Trade is

an impossibility. These intelligent people are just as convinced

that, were Great Britain to tax those countries which protect their

industries against it, they could before long be forced to adopt

Free Trade also; and if they did not do so, Great Britain could

and should continue to tax them until they did. They can see quite

clearly that the interests of the producer and consumer are so

closely interwoven and connected that any injury to the trade of the

former at once reacts on to the latter; in slack times, as these

Latin-American races have good reason to know, it is really the

consumer who is most seriously affected, since his very existence

depends upon the producer and manufacturer. Thus any action, they

very sensibly argue, which serves to revive or to promote trade

must, of a necessity, increase the prosperity of all. It is strange,

indeed, that such a view should be so clear to individuals living

out here, and remain absolutely obscure to those thousands of

individuals at home.

Our great strength in these Latin-American countries has always been

our textile manufactures, and it is here that we are being attacked

by both the United States and Germany. The former have successfully

imitated most of the English designs, and these, combined with

the better class of printing, the larger proportion of cotton,

and the superior quality of the water employed in the dyeing of

the material, have combined to make the American textiles more to

the liking of the native buyers. So much is this the case, that

the importers who formerly took British goods almost exclusively

now send home American patterns and designs to be produced in

England, even the United States trade-marks and lettering upon

the piece-goods being followed as closely as it is possible to do

without risking an action for infringement. The labels, instead of

being printed, as heretofore, are now lithographed, and are likewise

colourable imitations of the American ones; and it is sad to have

to relate that, in order to keep together some semblance of British

trade, it is apparently necessary to pass off the products of our

looms as "American."

So far there has been but little attack made upon British bleached

cotton goods, the proportion of which is 80 per cent. in favour

of our country; but German importers, of whom there are an

ever-increasing number in Salvador, are now seeking to increase the

supply of these goods from the Fatherland. The United States, as

yet, have done little in this direction. In yarns we seem steadily

to be losing ground, mainly, as I understand, on account of our

poor colouring. The people of these sunny lands insist upon the

brightest of bright hues--the most vivid scarlet or vermilion for

Turkey-red yarns; the deepest of blues; the prettiest of greens. The

British products are lacking in these, so much so that many of the

Turkey-reds spun in Scotland are sent to Germany to be dyed before

they are exported to these countries as "British" yarns. Our next

great competitor in regard to textiles is France.

British trade has been no more fortunate in regard to its machinery,

hardware, or iron and steel trade connections with Salvador, and

here it is the United States that is met with as a powerful and

resourceful rival at all times. The great combine which was formed

in the United States in 1909 to supply the wants of Latin-America

with all iron and steel productions, has met with an immense

success, so much so that even its organizers have expressed

astonishment. The geographical advantages possessed are not the only

ones. The United States Steel Produce Export Company is enabled to

handle orders more promptly and much more cheaply than any European

factory could do, but with these commanding points in its favour the

Company is not satisfied. It has organized a system of canvassing

either directly by personal application or by mail, which is both

timely and effective. Immediately it is known, or even suspected,

that any new railway or other construction is about to be entered

upon, the Company despatches an agent to see the promoters, or,

in the absence of this, forwards by mail a complete library of

handbooks, cost estimates, attractive illustrations, drawings and

code-lists, even prepaying a cable message when business is likely

to result. The terms offered are often such as no European could or

would tender, and, even if it were a question of direct competition,

the Steel Company would probably win-out; but the prices which it

quotes and the conditions which it imposes are of so tempting a

nature that they stand alone.

It is to be remembered that practically the whole of the

transportation arrangements in Central America, Salvador excepted,

are in the hands of Americans, whose carefully arranged Pan-American

Railway System is now fast approaching practical realization. When

completed, it will be possible to journey from New York to Panama

without change of car, and what this means for quick and cheap

freights can be realized. In all probability there will be severe

shipping competition to meet with, however, more especially on the

part of the Tehuantepec Railroad, which is already carrying an

enormous traffic, and is regarded with envious eyes by the Panama

Railroad Company. With the exception of the Tehuantepec route and

the Salvador Railway, the Americans now control the transportation

arrangements of Central America, being thus enabled to regulate

the freight charges upon all merchandise entering these countries.

Already several cases of unfair discrimination have been recorded,

such, for instance, as charging a British commercial traveller in

Costa Rica a sum of $75 (£15) for the conveyance of his samples

between the Port of Limón and the capital of San José, while an

American drummer was actually granted a rebate of 50 per cent. off

the ordinary rates, his expenses amounting to little more than $20

(£4) all told. In both cases the weight of the samples was the same.

CHAPTER XI

British trade declines--Suggested remedy--Distributing

centres--Trading companies and branches--Unattractive cheap

goods--Former hold upon Salvadorean markets--Comparative

statistics between Great Britain, Germany, and the United

States--Woollen and cotton goods--Absence of British

bottoms from Salvadorean ports--Markets open to British

manufacturers--Agricultural implements.

While everyone who has studied the question of British trade abroad

is practically agreed that it is at present suffering from more

than the average number of disadvantages, few have any real remedy

to suggest that might possibly put a different face upon matters.

One idea which has been suggested to me, however, is worthy of

careful attention. This is to establish throughout the Central and

South American States a number of retail British houses which shall

act as agents and distributing centres for our home-made goods. I

acknowledge that the notion is not a new one, since the enterprising

Germans, who are, as I have shown, our keenest competitors in this

part of the world, have long conducted such retail establishments,

and have found them most beneficial in the extension of their

business with the Latin-American countries. To open up new branches

without the aid of some such method, it may be said at once,

is almost, if not wholly, impossible. I admit that there are

difficulties which will have to be encountered, as there are in all

enterprises of this nature; but that these are not insuperable the

Germans have themselves very clearly demonstrated.

In the first place, the establishment of these retail

establishments, if undertaken at all, would have to be upon a large

and a very comprehensive scale. For this reason it is possible

that few British manufacturers would have the pluck to enter upon

the project. The result of such timidity is that, in the minor

branches of trade in the Latin-American Republics, the volume of

which is continually increasing in importance side by side with the

increase in the demand for the small luxuries and the conveniences

of life, the representation of British manufactures is becoming an

insignificant factor.

The remedy--or at least a partial one--for this, as already

indicated, lies in the formation of large trading companies, which

would combine a retail and wholesale business in all branches of

imported goods, with the purchase of local produce for export. Apart

from the advantages which such a company would enjoy, due to the

magnitude of its operations over ordinary importers, its retail

department would afford a practical means of advertising and placing

upon sale all kinds of novelties, which naturally would serve to

continually widen the scope of its operations. It would likewise

be in a position, better than that of any private firm, to receive

goods for sale upon commission; and by exporting produce it would be

able to effect considerable economies in its remittances (especially

in such countries as Salvador and Guatemala, where the exchange

is often altering), while at the same time it could afford to pay

better prices than its competitors. The question is already really

answered by the success of the co-operative stores established in

England, and it is upon some such basis as this that the scheme

for the Latin-American Republics is laid. It must be remembered

that in all of these countries the difference between the wholesale

and the retail prices is enormous, and that the dealers' profits

are exceedingly high. It is an idea which Mr. Lionel Carden, who

is, perhaps, one of our greatest Pro-Consuls, and particularly

gifted with common sense, has frequently urged in his reports to

the Home Government, and perhaps for this very reason it has never

been adopted. It is one which I cordially commend to the careful

consideration of my readers.

Yet another point to which the attention of British manufacturers

may be drawn is the unattractive manner in which the cheaper classes

of goods are turned out. I have in previous publications shown how

trade with the Latin-American countries is injured by the extremely

commonplace and often ugly coverings and wrappings used upon boxes

or bindings. The question is, "Why should an article, because it

is perhaps cheap, be made particularly ugly?" The long-established

custom among our manufacturers of using the commonest and crudest

of coverings is matched by their fondness for finishing off their

cheaper articles in the dullest and least attractive of colours or

casings. This is in striking contrast to both American and German

manufacturers, whose artistic taste is shown in the manner in which

their goods--often mere rubbish though they be--are packed, and with

very excellent results, so far as the export trade is concerned. In

an age like ours, when lithography of every description is so cheap

and taste in design so improved, it seems wholly absurd that good

orders should be continually lost on account of their non-adoption.

I have heard of another idea which I may pass on to manufacturers of

small articles enjoying a large sale in these countries, and this is

to procure, through anyone living in the country, photographs of the

rulers--the Presidents and Vice-Presidents--and use them lavishly

upon their labels and box-covers whenever possible. The people are

extremely fond of collecting these cheap oleographs and pasting

them upon their walls and windows; and in all parts of South and

Central America may be seen thousands of the pictures of King Edward

and Queen Alexandra, of the Kaiser, and even of famous actresses.

How much more readily would the features of a familiar ruler or a

popular Minister help the sale of a cheap material or a low-priced

article of any kind? The desire to secure something for nothing--or

as an extra "thrown in"--is as predominant in Latin-America as

elsewhere in the world, and must be pandered to.

[Illustration: VIEW OF THE NEW AVENIDA LEADING TO SAN SALVADOR,

TAKEN FROM THE NORTH.]

Salvador is one of the many Latin-American States whose great

richness and prosperity repose in their immediate future. In area

it is one of the smallest of the Central American Republics, but

it is in no whit less important from a prospective development

point of view. Its superficial area is but 7,225 miles, but its

population is considerably over 1,000,000, which gives it an average

to the square mile much in excess of either Guatemala, Costa Rica,

or Nicaragua. It is, moreover, an easier country to deal with,

physically considered, since it is in fully three parts of its area

quite amenable to cultivation. It is remarkably well-watered, it is

richly endowed with mineral deposits, and its people are a quiet,

peaceful, and industrious race, well-disposed towards foreigners,

and with as much distaste nowadays for revolutions and internecine

disturbances as their immediate neighbours would appear to display

for similar diversions.

In a word, Salvador seems to offer at the present time an excellent

field for the investment of both capital and enterprise. It is quite

clear that the favourable position existing is also appreciated,

since the country is, and has for some time past been, full of

the "commercial ambassadors"--in other words, of commercial

travellers--representing the manufacturing trade of the United

States and of many European houses, mainly German.

While several British firms still maintain their connection with the

Republic, there are to be found barely half a dozen British houses

throughout the length and breadth of the country. This is all the

more surprising since the names--and nothing but the names--of many

one-time influential British firms are to be seen on the door-posts

and signs of the shops. The old-established emporiums in San

Salvador, in Sonsonate--the next most important trading centre--in

Ahuachapán, in Santa Ana, in Chalatenango, and in Sensuntepeque,

all tell that formerly they imported their goods through English

establishments almost exclusively, and that British travellers

called upon them at regular intervals for their orders. To-day, the

greater part of the orders, with some notable exceptions, are taken

by German and American travellers, and a British "drummer" is about

as rare an object as the fabulous Dodo. "We should be glad enough

to see them," added one of my informants; "but they seem to have

forgotten that such a place as Salvador exists."

The President of the Republic, General Fernando Figueroa, who

retired last November from office, a very intelligent and charming

man, in conversation with me, dwelt in the same strain concerning

the disappearance of the Britisher as a trading factor from the

Republic of Salvador. He frankly expressed both his regret and his

surprise that the desirable commerce of this wealthy and promising

Central American State should have been practically abandoned by the

shrewd and enterprising Northerners, when they had at one time so

firm a hold upon its commercial relations.

The Germans, who have to all intents and purposes taken possession

of the connections, but not of the affections, of the Salvadoreans,

which formerly were the almost exclusive holdings of the British,

are now to be found everywhere. They not alone year by year further

extend the tentacles of their trade by all usual means and methods,

but they make a point of coming out to reside for a number of years;

and this is one of their strongest holds upon the country. The

Germans are prepared to endure any personal sacrifice in the way of

comforts or conveniences to make and maintain profitable commercial

relations with the people of the countries among which they elect to

trade. In the majority of cases they open branch-houses in the chief

cities of these countries, sending either one of their partners,

or, failing him, one of his junior relations, to live in the State

and personally conduct the business of the house and closely study

the conditions of the country. Dozens of bright, intelligent, and

enthusiastic young Germans are met with, who have been, perhaps,

but a few years away from school or college, serving in their

shirt-sleeves, without a blush or sense of humiliation, behind the

counters at the small country stores, opening their establishments

at 6 a.m., and closing them at 8 or 9 p.m., Sundays and weekdays

alike.

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