will be commenced within two years and are to to be concluded and handed over to the use of the public within five years, both terms being counted from the date of the approval of the plans. These plans may be presented complete or in parts.

"ART. 5. This concession will expire if the plans are not presented to the President of the Republic for approval, or if the construction works are not commenced within the stipulated periods. If the works are not finished within the stated time, the concession will expire as far as it refers to the unfinished work.

"In the case of the grantee failing to comply with any of the obligations included in the preceding clause, he will forfeit the sum of $25,000, to be deposited previously by him in the public treasury.

"ART. 6. The freight and passenger tariffs shall not exceed those established on the State railways.

"These tariffs shall be submitted to the approval of the President of the Republic.

"ART. 7. After forty years, counting from the date of the inauguration of the line, the State may acquire this railway, paying the value it represents at the time, including that of the buildings and material, with a premium of 10 per cent.

"The value will be equitably established by appraisers.

"ART. 8. After the expiration of the one hundred years' term of the concession, the line, with its material and buildings, will become the property of the State.

"ART. 9. If the rights granted by this concession should be transferred to foreign persons or companies, the transfer shall not be valid without the express stipulation that the grantees renounce for themselves and their successors all diplomatic action to uphold the rights arising from this concession, and shall abide by the decisions of the courts of the Republic.

COLOMBIA.

THE MINING INDUSTRY.

A recent number of "The Mining World" states that Colombia is undoubtedly about the richest country in precious metals in the world. Its wide fields had been scratched by the Indians for centuries, and further worked by the Spanish invaders, who, expert miners as they were, even with their cruder methods, looked to it as the "Dorado," and even with this barest of scratching (a bareness which must be seen to be appreciated) Colombia was, up to 1896, the third gold-producing country in the world. In 1895-96 a short revolution occurred, and in 1898 another, probably the most disastrous in the history of the country, and the production fell off, and it has only been since 1902

that serious attention has again been called to Colombia; but it is confidently expected that 1905 or 1906 will again see Colombia back in her old place, and if searchers for gold are wise she may be the first of the gold-producing countries of the world.

Ground sluicing is carried on extensively by the natives, who either own the ground themselves or are working on other people's ground and paying a small royalty to the owners, but many ground sluices are worked by two, three, or four natives, taking out as much as 10 pounds of gold in a clean up, which they do about every month. The "batea" (wooden gold pan) is their principal implement; naturally the crowbar plays a most prominent part in their work.

The labor there is cheap. It is customary in that section of the country that the workmen should be fed by the company employing them. The average man's wages do not exceed (food and all) 80 cents cents a day. The laborers are fairly skilled and at times abundant. There are no unions. Strikes are unknown, and the only interruptions to work are due to "fiestas" (holidays). Rains do not interfere. In the deposits along the River Nechi, which is in the Department of Antioquia, there are placers now being worked with monitors, and and the gravel has never been known to pay less than 40 cents per cubic yard, and the deposits have averaged 65 cents per cubic yard.

The River Nechi is about 300 miles south of the seaports Cartagena and Barranquilla. It is a navigable stream for stern-wheel steamers, and empties into the Cauca, itself a tributary of the mighty Magdalena.

The properties are covered with auriferous deposits of a thickness which runs from 9 to 25 feet, and are found reaching to 35 feet. The top layer consists of red cement, under which is a black streak of river sand. The balance, down to bed rock, consists of a gray gravel and loose gold. Timber of all kinds is more than plentiful, particularly cedar and mahogany.

The town of Zaragoza, at which place all steamer lines from Barranquilla terminate, has a population of about 3,000, was founded in 1580, and has been a more or less important mining town ever since. Up to within a few years, however, the many gold deposits have only been worked by primitive methods, but now that aggressive foreign capital is coming in startling results may soon be expected. Those familiar with the California deposits say that the Antioquia placers, in general character of the gravel and gold, are representative of the great California bonanzas of fifty years ago, but promise more phenomenal results.

Title is held in fee simple by deed from owner, in whose family the property has been held for years. Taxes are nominal.

COSTA RICA.

RAILWAY COMBINATION.

United States Consul CALDWELL, San José, Costa Rica, reports that a contract was recently signed in London by the representatives of the Costa Rica Railway, an English company, and of the Northern Railroad of Costa Rica, an American company, by the terms of which the Northern Railroad Company leases the Costa Rica Railway. The lease is for the remainder of the term of ninety-nine years stipulated in the original concessions to the Costa Rica Railway, or for over sixty years from the present date. The Northern company will assume control July 1, 1905.

The Costa Rica Railway runs from Alajuela through San José, Cartago, Juan Viñas, and Turrialba to the Atlantic port of Limon. The main line, from Alajuela' to Limon, is 1154 miles in length. A branch, known as the old line, runs for about 20 miles into the banana region. This, with various short spurs to particular farms, makes a mileage in branch lines of 354 miles. The road has about 650 employees. The Northern road runs from Limon out among the banana farms, and has 83 miles of main line and sidings and about 750 employees.

Both roads are well equipped with rolling stock. The united lines will have the use of the two piers at Limon, one now owned by the Costa Rica company and one built by the Northern company, the property of the Government, but granted to the railroad for a term of years.

IMPORTS FROM THE UNITED STATES, 1904.

Dr. JOHN J. ULLOA, Consul-General of Costa Rica in New York, furnishes the following figures of exports from New York to Costa Rica for 1904:

"Merchandise is a.so imported into Costa Rica from the United States through the ports of San Francisco, New Orleans, Mobile, Philadelphia, and Boston. The following is a list of the principal articles imported into Costa Rica from these markets: Coffee, mining and industrial machinery, typewriters, sewing machines; all kinds

of railroad, bridge, and electrical materials; hardware, glassware, medicines, kerosene oil, canned goods, flour, calicoes, cotton goods, drillings, prepared paints, lard, lubricating oils, printing paper, phonographs, prepared leather, hams, whisky, chewing tobacco, iron roofing, wire and iron fences. More than 50 per cent of the importations into Costa Rica are from the United States. It is stated that if the merchants and manufacturers of this country would extend their terms of credit a little more than they do to-day, becoming as liberal as they are in the European markets, a large part of the commerce done to-day by England, France, and Germany with Costa Rica would come to the United States. The manufacturers of this country should also pay more attention to their packing, taking into consideration not only the safety of the goods, but the least possible net weight."

SUSPENSION OF PEARL EXPLOITATION.

By a decree of February 8, 1905, the Government of Costa Rica has suspended the exploitation of the pearl beds on the Pacific coast of this Republic for the period of one year from date of publication of the decree. This step is taken to enable the Government to make a more thorough examination of the beds and prescribe more stringent regulations for their preservation.

OPERATION OF THE GOLD STANDARD.

The "Revue Diplomatique" says, in a recent issue, that the gold standard in Costa Rica has given very successful results.

All the bank notes in circulation and all the fractional silver money of Costa Rica are exchanged without difficulty, and for the same value, in gold colons. All payments are, in fact, received in gold, bank notes, or in silver, exactly as in France.

This monetary reform, which presented a great many difficulties in the beginning, reflects the greatest honor on the Costa Rican Government and offers every guaranty and security to capital invested in the country. At the present time there are nearly $1,000,000, American gold, in circulation in Costa Rica, and this same dollar is exchanged for 2 colons 15; that is to say, at par value.

If this introduction of American money continues, which is probable, the American gold dollar will soon be the principal money of the country. The Costa Rican Government has recently paid part of its employees in American gold. This large influx of American money is due to the United Fruit Company, the great American enterprise. This abundance of gold has produced another result most advantageous to this country. The rate of interest, which has been maintained for years at 12 per cent per year, at a minimum with first-trust guaranty, is decreasing considerably. Several loans on mortgages have already been made at 10 and even 8 per cent.

CUBA.

MESSAGE OF PRESIDENT PALMA, APRIL 3, 1904.

The seventh session of the Cuban Congress opened on April 3, 1904. President PALMA's message congratulated the country on the continuance of order and on the fact that there had been no untoward incidents beyond those ordinarily dealt with by the courts. Notwithstanding the great movement to Cuba of workers in the sugar and other industries, the tranquillity in the country is absolute, not only on account of the confidence established by the rurales, but because of the respect of the people for the law and institutions of the Government.

The message is optimistic in spirit, the only decided complaint being with reference to the diminution of attendance in the public schools, which in the last four months of last year was 29,400 below the corresponding period of 1903. President PALMA characterizes this as an alarming deficiency, and he suggests the adoption of strong measures looking toward securing more general attendance. He urges a general reformation of local school boards.

Referring to the adjournment of the United States Senate without confirming the Isle of Pines treaty, the President says:

"Nevertheless, knowing as we all know the essentially moral character of the American people and the unexampled disinterestedness with which they loaned aid so that Cuba could be constituted an independent nation, there is no reason for doubting that during the coming Congress that high body, inspired always by the spirit of justice, will approve the treaty, thus fulfilling the honest purpose of the illustrious citizen who exercises the duties of first magistrate of that great Republic.

The message outlines the increasingly fine financial status of the Government. The total amount received from the sale of army loan bonds was $31,675,000, of which $13,555,000 has been paid to veterans, the difficulties of proper verification, etc., preventing faster payment. The value of imports in 1904 was $82,842,000, and exports, $89,978,000, an increase in imports of $15,764,000 and in exports of $11,492,000 over 1903. President PALMA states that the increase in importations from the United States shows mutually beneficial results of reciprocity, and adds:

"While in 1903 the United States sold Cuba 40.5 per cent of all her imports, in 1904 she sold her 42.5 per cent thereof. In 1904 the United States bought 83.7 per cent of Cuba's exports, making the gain in Cuba's exports to the United States $14,400,000. The same year Cuba's exports elsewhere decreased by $2,600,000. The treasury surplus is now $11,000,000. The financial condition is most satisfactory."