divisionary coins in circulation. The former were of a higher standard and were gradually being replaced by foreign coins of small denomination and less intrinsic value. It was, therefore, desirable to take steps to remedy this condition of affairs.

REVENUE AND EXPENDITURE.

The Finance Minister stated that the nett cash Revenue and Expenditure in 1901-2 amounted to $2,757,556.81 and $2,604,487.57 respectively. The following details have been compiled from information given in his Report:-

* The correct total of these figures is $2,608,783,32. The Finance Minister's Report contains no tabular statement of cash Expenditure, and the items given above are taken from the detailed statements in the Report relating to each Department. There is a difference of $4,295.75 between the total quoted by the Minister and the sum of the various items,

By the Budget Law the estimated nett Revenue was fixed at $2,629,050, and the nett returns having reached a total of $2,757,556.81, the estimate was exceeded by $128,506.81. Moreover, the Revenue in 1901-2 surpassed that collected in 1900-1 by $150,494.24, a fact which was especially remarkable in view of the unfavourable conditions which obtained in the financial year 1901-2.

The Receipts from the Custom Duties were $6,715.76 below the Budget Estimate of $1,100,000 and $27,941.68 lower than in 1900-1. All things considered, the results could not be regarded as entirely unsatisfactory, and, furthermore, the causes of the diminution were of a temporary nature. The Receipts from the Export Duty on cattle showed a satisfactory increase of $22,589.09, or over 33 per cent., as compared with those during 1900-1. Thanks to the vigorous suppression of contraband and to other measures calculated to improve the return, the Aguardiente Revenue had produced $31,967.70 more than in 1900-1, whilst the Liquor Revenue also showed a fair rate of progress. The actual nett product of the Stamp Revenue had been $244,712.58, but this amount had to be reduced to $226,117.58 by reason of a payment of $18,595 to the Cable Company, the Telegraph Service being included under this head in the Budget. Even allowing, however, for this deduction the return obtained exceeded that during 1900-1 by $19,648.84 and surpassed the estimate by $40,117.58. With regard to the item "Sundries" it was to be observed that nothing had been received on account of the Railway.

As regards Expenditure, it would appear that the

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actual cash Expenditure was $49,562.43* below the estimate for the year, which, including a special vote of $25,000 for the President's journey to Corinto, reached a total of $2,654,050; but that, on the other hand, there remained at the end of the year unliquidated liabilities on account of the various Departments amounting to $175,644.84, which were added to the Internal Debt.

The amounts quoted in the President's Message as the total Receipts from all sources and disbursements on all counts would appear, from data contained in the Finance Minister's Report, to be made up as follows:

According to the Finance Minister's Report, the amortisation of the various floating debts and other liabilities composing the Internal Debt during 1901-2 amounted

* Or $45,266.68, if the total of the itemised statement is taken as correct.

† According to the Finance Minister's Report for 1900-1, this balance amounted to $176,876.19.

in all to $601,638.81. This included the cash payment of $477,386.59 mentioned above in the Table of Expenditure under the head of "Public Credit,” the balance being mainly accounted for by conversions into "Credit Notes." Against this reduction, however, must be set the various additions to the Debt which took place in the course of the same year. These reached a total of $458,843.93, which, as compared with the amount amortised, implied a nett decrease of $142,411.88 in the outstanding principal.

The following statement shows the various items of the Debt at the beginning and end of the financial year:—

The details of the Estimates of Revenue and Expenditure for the financial year 1903-4, which were authorised by a Decree dated 10th June, 1903, were as follows:-

The following information relating to the economic condition and progress of the country during 1901-2 is summarised from a Report presented to Congress in January last by the Minister of Internal Development :

The rate of exchange had been slightly higher than in the preceding year-reaching an average of 250 per cent. for American goldprobably by reason of the fall in the price of silver. The rates of interest obtaining throughout the country were unduly high, especially in the case of advances on crops and promissory notes. Data had