picturesque View of the picturesque town of Marcala. There are, on the other hand, certain classes of machinery and appliances of British manufacture which can be met with not only in practically every part of the world, but which no amount of foreign competition would seem to seriously affect. Among these specialized manufactures may be included, coffee and sugar machinery and fire-engines. The latter stand, indeed, quite alone as effective and universally known features of British construction, and I do not in any way exaggerate when I state that in no part of the world to which I have been—and that is equivalent to saying "everywhere upon the face of the habitable globe"—have I failed to see some kind of fire-extinguishing apparatus, old or new, of British manufacture. In the Central American States the reputation of such appliances stands very high, as was exemplified at the time of one of the several serious conflagrations which have afflicted San Salvador, and which occurred some four years ago, when a great portion of the capital city was for a time in jeopardy of destruction. One of the principal churches was As soon as this determination became known, the officials were inundated with the catalogues of manufacturers from Germany, France, the United States, and other countries. An emissary from America even came down personally from the States to canvass for the order; but the reputation of the British fire-apparatus was strong and its general effectiveness was generally recognized, so that the Government did not hesitate in its decision to follow Mr. Mark J. Kelly's advice to award the order to a Greenwich firm. A larger type of the Merryweather steam-engine, with a very complete outfit for the firemen, has since been added, through the instrumentality of the same gentleman. Further proof of the utility of the English engines was afforded later on, when yet another serious and disastrous fire occurred in San Salvador, the work, it is believed, of an incendiary, with the result that an entire block of fine buildings, including the National Theatre, was burned to the ground. It is admitted by everyone that but for the services rendered by the fire-engines, and not a little also by the heroic work of the local brigade, the greater portion of the city, in all probability, would have been destroyed. It is the intention of the authorities, I understand, to further increase the effectiveness of the service by ordering more hose and additional salvage appliances. In conversation with the former President of the Republic, General Fernando Figueroa, upon one occasion, he paid an eloquent tribute to the excellence of British machinery of all kinds. He has had, it In regard to coffee and sugar machinery, of which mention has already been made, this trade is split up between the two houses of John Gordon and Co., of London, and Marcus Mason and Co., of New York. Both make excellent apparatus for the purpose of treating the berry and cane, the Germans in this particular direction finding but very little favour even among their own people. I visited several of the large fincas or estates, where both coffee and sugar are treated, and in all such instances the properties were either owned or being managed by Germans. In all cases the machinery was either British or American, and in a number of instances both were freely employed. Upon inquiry, I was informed that the sugar machinery turned out by German manufacturers in the majority of cases is too complicated and delicate for practical purposes, and that it needs an expert mechanician—a decidedly rara avis in this part of the world—to understand the apparatus or to carry One excellent testimonial to the superiority of British machinery was afforded at the Laguna Finca, belonging to Herr FÉdor Deininger, who, as may be assumed from his name, is a German proprietor. Here I found a complete sugar-manufacturing plant, consisting of cane-mill, liquor pumps and tanks, defecators, juice-heaters, clarifiers and evaporators, steam eliminators, filters, and, indeed, everything but the centrifugals, which alone were of German construction, had been provided by the Liverpool firm of Messrs. Fawcett, Preston and Co., Limited, of the Phoenix Foundry. The date upon this installation is "1867"; and Herr Deininger, the present owner of the factory, who acquired it from his uncle, Herr Bogen, some twenty years ago, declares that it is quite unnecessary to replace the installation, "as it is still working most satisfactorily." Of this I, indeed, assured myself by personal observation. I venture to believe that this is an altogether unique instance of a sugar-machinery installation, erected over forty-three years ago, and which has been in constant operation during that time, day by day, Sundays included, being found in a sufficiently sound and workable condition as to need nothing more serious than an occasional replacement of a small part or a temporary stoppage for overhauling. In Salvador there are several cane-mills of quite recent construction throughout, and in most instances these are the manufactures of Messrs. Fawcett, Of recent years Messrs. Fawcett, Preston and Co., Limited, have introduced an improved type of Rousselot cane-mill, by which the returner-bar and knife are reduced to the smallest dimensions by a special patented arrangement of bringing the side-rolls as close together as the top cap-bolts will admit. These latter are inclined vertically to one another, and the effect of this arrangement is to reduce the width of the knife, and consequently the friction of the cane passing over it, and also economizing the power and consumption of fuel necessary to drive the mill. The special feature of the Rousselot patent is to be found in this improvement—that is to say, that the strain is Yet another improvement which this firm have introduced into their sugar machinery is in connection with the juice-heaters. These now consist of three cylindrical heaters of a compound type, with Chapman's patent steam separator, and which are fixed horizontally side by side, being so connected that while any one of the three is out of use for cleaning or repair, either of the other two can be worked as a high-pressure or finishing heater, and the other as a low-pressure heater, thus economizing considerable fuel. The steam separator worked in connection with these heaters economizes about 8 per cent. of the steam required in the multiple effect apparatus for evaporating the cane juice, since by this arrangement the steam that would otherwise flash off from the superheated juice into the atmosphere and be lost is collected and conveyed to the heating drums of the multiple effect, and so utilized for the evaporation of a corresponding amount of water from the juice. Improvements are also to be observed in connection with the subsiding defecators, the steam eliminators, bag-filters, the apparatus known as the "Coffey" still. Reference has been made above to the vogue which Moreover, this young man is an expert mechanic, and most skilful in effecting repairs and alterations to machinery and plant installations. It is not at all difficult to understand how such an individual makes headway with the kind-hearted and hospitable Salvadorean estate owners, and how he succeeds, not alone in obtaining orders from them for their coffee and other machinery, but in introducing German manufactures of Among the British goods which I have more particularly noticed to be well displayed in the retail stores are chemical preparations and drugs. The Salvadoreans, like most Latin-Americans, are large users of all kinds of patent medicines; and although a great many of these come from the United States, those of British manufacture are not at all poorly represented. Such articles as Eno's Fruit Salt, Apollinaris and Apenta Water, Pears' Soap, Odol, and many of the better-known vegetable pills, are to be found here—except Cockle's, which are a very difficult drug to obtain, although in my opinion one of the most efficacious. The chemists' shops are full of all kinds of other drugs and patent medicines, and apparently the proprietors conduct a remarkably good trade. Relative to the trade of pharmacy, a new law is proposed which will regulate the practice of this trade, and which will create a Faculty of Pharmacy and Natural Sciences, to which all chemists and druggists, Drugs, medicines, and perfumery to the value of $82,676 were imported in 1910. In regard to British wines and spirits, these are hardly ever seen except in the houses of the few British residents who may have imported a small supply for their own use. The total value of victuals, wines and spirits, however, is not inconsiderable, amounting in 1909 to about 12,748,249 kilos, representing a value of £179,431, which, however, contrasts with 15,689,307 kilos, or a value of £211,819, for the previous year. The wheat, rice, cereals and breakfast foods, which are not as well known here as in other parts of Latin-America, come from the United States, which also send here by far the greater part of the lard, tallow, dairy produce, sweetmeats, and dried and smoked meat and fish. The United Kingdom shares in the salt trade, but this is only small. I am of opinion that a better trade could be done by exporters of British beers and liquors, which would be purchased here to a more considerable extent. The number of cafÉs and restaurants is increasing, and the tendency of the inhabitants, especially in good times, is to dine from home. Although beer is brewed, it is more the beverage of the workers than of the well-to-do. In regard to the tobacco and liquor trades carried on in Salvador, a record of the progress and management is maintained by means of the regulations which have been introduced covering the operation of cigar and cigarette factories and of breweries and bottling establishments in the Republic. This control has been In regard to the duties on wines and canned goods, imported liquors pay a duty of 50 cents; heavy and white wines, 25 cents; and old table wines, 5 cents—per quart bottle. Canned goods pay 10 cents per kilo (=2,204,622 pounds). These duties are in addition to Customs charges. What effect will the completion and opening of the Panama Canal have upon Salvador and other Central American countries? I have often been asked this question, and perhaps this is as good a place as any in which to answer it. That capital from North America will flow more abundantly into Central America after the completion of the great waterway is a practical certainty; but I do not consider that there will be any such considerable augmentation, nor that the difference will be so prodigious, in regard to results, as some critics imagine. For many years to come the United States, with its great area and its many undeveloped resources, will need more capital—much more, indeed, than it can conveniently find among its own people; that is to say, it will have to borrow from Europe in addition to saving all that it can on its own account. The old world has nowadays fewer opportunities for industrial and commercial expansion; money is comparatively cheap, and all new countries on the other side of the Atlantic offer the inducement of higher interest. How much of this investment will be made with purely American money? The Yankees are certainly becoming more and more enthusiastic, and at the same time more and more reckless, in their foreign investments, and especially in regard to Latin-American countries. Nevertheless they have a long way to go before, in actual figures, they can in any way approach the value and extent of British foreign investments. In regard to the return which their investments bring them also, they have, on the whole, proved far less fortunate. In all probability, British foreign holdings in South and Central America to-day approach the sum of £500,000,000 (=$2,500,000,000), and upon this gigantic amount of capital they earn a fair average of 51/8 per cent. per annum, allowing for the higher and the lower rates of interest paid, and which amounts to anything between 25 per cent. and 35 per cent. on some land shares, and the modest 41/2 per cent. and 43/8 per cent. earned upon railway debentures. I also include in this return some "bad eggs" among a very diversified list of investments. I should say, on the other hand, that American foreign investments would not amount in the aggregate to more than £200,000,000 ($1,000,000,000), and of this at least seven-tenths are invested in the Republic of Mexico, and probably two-tenths in enterprises in Canada. American foreign investments are, in a large measure, tributary to great concerns located in the United States, which have their agents in foreign countries looking after their local interests. From this considerable invested amount it would be impossible to estimate a higher return than 23/4 or 3 per cent.; for while many of the investments—such as the Standard Oil interests in Mexico and the many banking Thus I do not anticipate any very pronounced rush of American capital into Central America merely because the Canal will have become un fait accompli. On the other hand, the United States trade and commerce must feel benefit from the speedier means of transport. Already the United States control 60.8 per cent. of the importations into Mexico, and 89 per cent. into Panama; something over 70 per cent. into Costa Rica, and about 60 per cent. (increasing year by year) into Guatemala. With the active assistance of the Washington Government, in conjunction with the compulsory financial "assistance" forced upon them by the J. Pierpont Morgan Syndicate, Honduras will also shortly be taking about 80 per cent. of the United States goods as well as accepting nolens volens the loan of United States capital. It is, however, the Republics of Ecuador, Peru, Bolivia and Chile which will become better markets for the United States through the medium of the Panama Canal; and while I was travelling recently upon the west coast, I particularly remarked the What attention are British manufacturers and British agents paying to this all-important question? This is very easily answered—None! The first place in the Imports from European countries into Salvador is given to cotton-manufactured goods, nearly the whole of which, I may again point out, come from Great Britain. In 1906, out of a total of $4,000,000, which represented the value of the imports, cotton goods figured for $1,500,000, or 30 per cent. of the total. Of this $1,500,000, Great Britain was responsible for $974,964, which represented woven goods, in addition to $141,328 representing the value of thread. The United States came second on the list, with textiles valued at $409,072, and thread $2,885, although in the list of this classification America was outranked by both Germany and France, which sold thread to Salvador to the value of $8,349 and $4,160 respectively. These two countries exported textiles to Salvador to the amount of $32,199 and $71,890 respectively, while Italy figured for $54,952. El Parque BarrÍos. In this class of goods, practically the same relative In this connection it is difficult to understand how any intelligent writer, who claims to have visited Salvador with his eyes open, could have published such an utterly misleading and untruthful statement of fact as that which appears in a book entitled "Central America," from the pen of Mr. Frederick Palmer, F.R.G.S., who upon p. 112 of that volume declares that "the only manufactures are from an occasional hand-loom." Mr. Palmer does not inform his readers how many days or hours he remained in Salvador, but apparently they were insufficient to enable him to make himself even superficially acquainted with the industrial conditions of the Republics. He devotes exactly eleven and a half An important factor in the trade relations existing between Great Britain and the Republic of Salvador is found in the Salvador Chamber of Commerce in London (Incorporated), which was established upon the initiative of Mr. Mark J. Kelly, F.R.G.S., in February, 1903, and duly incorporated under licence of the Board of Trade. It will be remembered that the President of the Salvadorean Chamber of Commerce in San Salvador, as well as being its Founder, is SeÑor Don Miguel DueÑas, Sub-Secretary of State for Agriculture. The first President of the Chamber was Mr. C. S. S. Guthrie, of 9, Idol Lane, London, E.C., with Mr. C. Rozenraad, President of the Federation of Foreign Chambers of Commerce in the United Kingdom, as Vice-President. The objects of the Association are to promote the trade, agriculture and industry of Salvador with the British Empire; to keep members informed and acquainted with all matters in connection with the trade of Salvador; and to promote study upon all questions relating to the various international Conventions which concern the trade between Salvador and Great Britain, as well as to act as commercial arbitrators at the request of interested parties, and exclusively in commercial disputes, where the interests of Salvador trade are at stake. The Chamber numbers some forty members, composed of merchants of London and other parts of the United Kingdom doing business with Salvador. Upon his resignation of the chairmanship of the Salvador Railway, Mr. Guthrie also resigned from the Chamber of |