Mexico and the Central American states occupy the narrow, southerly part of North America. Structurally they consist of a plateau about a mile high, bordered on each side by a low coast-plain. The table-land, or tierra templada, has about the same climate as southern California; the low coast-plains, or tierra caliente, are tropical.

Mexico.—The United States of Mexico is the most important part of this group. The people are of mixed Spanish and Indian blood, but there are many families of pure Castilian descent. The latter, in general, are the landed proprietors; the former constitute the tradesmen, herders, and peons. There is also a large unproductive class, mainly of Indians, who are living in a savage state. In general the manners and customs are those of Spain.

The agricultural pursuits are in a backward condition, partly for the want of good system and an educated people, but mainly for lack of the capital and engineering skill to construct the irrigating canals that are needed to make the land productive. Maize, rice, sugar (cane and panocha), and wheat are grown for home consumption.

The agricultural products which connect Mexico with the rest of the world are sisal-hemp (henequin), coffee, logwood, and fruit. Sisal-hemp is grown in the state of Yucatan, and has become one of its chief financial resources. Oaxaca coffee is usually sold as a "Mocha" berry. The logwood goes mainly to British textile makers; and the fruit, chiefly oranges and bananas, finds a market in the large cities of the United States, to which large consignments of vanilla and tropical woods are also sent. Cattle are grown on more than twenty thousand ranches, and the greater part are sent alive to the markets of the United States. The native long-horn stock is giving place to improved breeds.

Gold and silver are the products that have made Mexico famous, and the mines have produced a total of more than three billion dollars' worth of precious metal. The native methods of mining have always been primitive, and low-grade ores have been neglected. In recent years American and European capital has been invested in low-grade mines, and the bullion production has been about doubled in value; it is now about one hundred million dollars yearly. Iron ore is abundant, and good coal exists.

The manufactures, at present of little importance, are growing rapidly. The cotton-mills consume the home product and fill their deficiency from the Texas crop. All the finer textiles, however, are imported. Most of the commodities are supplied by the United States, Great Britain, and Germany, the first-named having about half the trade. Most of the hardware and machinery is purchased in the United States.

Railway systems, with American terminal points at El Paso, San Antonio, and New Orleans, extend from the most productive parts of the country. One of the most important railways crosses the Isthmus of Tehuantepec, and, in order to encourage commerce, the harbors at Coatzacoalcos and Salina Cruz have been deepened and improved. This interoceanic route is destined to become a very important factor in commerce. It shortens the route between European ports and San Francisco by six thousand miles, and between New York and San Francisco by twelve hundred miles.[57]

Mexico, the capital, is the financial and commercial centre. Vera Cruz and Tampico are connected with the capital by railway, but both have very poor port facilities. Steamship lines connect the former with New York, New Orleans, Havana, and French ports. It is the chief port of the country. Matamoros on the American frontier has a considerable cattle-trade. The crop of sisal-hemp is shipped mainly from Progresso and Merida. Acapulco, Manzanillo, and Mazatlan for want of railway connections have but little trade. The first-named is one of the best harbors in the world. Guadalajara has important textile and pottery manufactures.

The Central American States.—The physical features and climate of these states resemble those of Mexico. The Spanish-speaking people live in the table-lands, where the climate is healthful. The coast-plain of the Atlantic is forest-covered and practically uninhabited save by Indians. Guatemala is the most important state. A railway from Puerto Barrios, its Atlantic port, through its capital, Guatemala, to its Pacific port, San JosÉ, is nearly completed. British Honduras is a British territory acquired mainly for the mahogany product, which is shipped from Belize. Honduras has great resources in mines, cultivable lands, and forests, but these are undeveloped. Salvador is the smallest but most progressive state.

Nicaragua is politically of importance on account of the possibilities of an interoceanic canal. A treaty for this canal, involving both Nicaragua and Great Britain, has already been signed by the powers interested. Many engineers regard the Nicaragua as preferable to that of the Panama canal. The shorter distance between New York and the Pacific ports of the United States, a saving of about four hundred miles, is in its favor. The longer distance of transit and the dangers of navigating Lake Nicaragua are against it. Costa Rica is favorably situated for commerce, but its resources are not developed. A railway from Puerto Limon is nearly completed to Puenta Arenas, an excellent harbor on the Pacific side.

Coffee, hides, mahogany, and fruit are the only products of importance that connect these states with the rest of the world. About half the trade goes to the United States. The Germans and English supply a considerable part of the textiles and manufactured articles. The coffee of Costa Rica is a very superior product. Much of the mahogany and forest products goes to Great Britain. Fruit-steamers call at the Atlantic ports for bananas, which are sold in New Orleans and the Atlantic cities.

The West Indies.—The climate and productions of these islands are tropical in character. Sugar, fruit, coffee, tobacco, and cacao are the leading products. From the stand-point of the planter, the sugar industry has been a history of misfortunes. The abolition of slavery ruined the industry in many of the islands belonging to Great Britain. The competition of the beet-sugar made in Europe drove the Cubans into insurrection on account of the excessive taxes levied by the Spaniards, and ended in the Spanish-American War.

The fruit-crop—mainly pineapples, oranges, and grapefruit—is shipped to the United States. New York, Philadelphia, and the Gulf ports are the destination of the greater part of it.

Cuba, the largest island, is one of the most productive regions of the world. The famous "Havana" tobacco grows mainly in the western part, although practically all Cuban tobacco is classed under this name. According to popular opinion it is pre-eminently the best in flavor, and the price is not affected by that of other tobaccos.[58] About two-thirds of the raw leaf and cigars are purchased by the tobacco manufacturers of the United States. Havana, Santiago, and Cienfuegos are the shipping-ports; most of the export is landed at New York, Key West, and Tampa.

From 1900 to 1903 the small fraction of the sugar industry that survived the war and the insurrection was crippled by the high tariff on sugar imported into the United States. The latter, which was designed to protect the home sugar industry, was so high that the Cubans could not afford to make sugar at the ruling prices in New York. Hides, honey, and Spanish cedar for cigar-boxes are also important exports.

The United States is the chief customer of Cuba, and in turn supplies the Cubans with flour, textile goods, hardware, and coal-oil. Smoked meat from Latin America and preserved fish from Canada and Newfoundland are the remaining imports. There are no manufactures of importance. The railways are mainly for the purpose of handling the sugar-crop.

Havana, the capital and financial centre, is connected with New York, New Orleans, and Key West by steamship lines. Santiago, Matanzas, and Cienfuegos are ports having a considerable trade.

The British possessions in the West Indies are commercially the most important of the European possessions. The Bahamas are low-lying coral islands, producing but little except sponges, fruit, and sisal-hemp. Nassau, the only town of importance, is a winter resort. Fruit, sugar, rum, coffee, and ginger are exported from Kingston, the port of Jamaica. St. Lucia has probably the strongest fortress in the Caribbean Sea.

Barbados produces more sugar than any other British possession in the West Indies. The raw sugar, muscovado, is shipped to the United States. Bermuda, an outlying island, furnishes the Atlantic states with onions, Easter lilies, and early potatoes. From Trinidad is obtained the asphaltum, or natural tar, that is used for street paving. Brea Lake, the source of the mineral, is leased to a New York company. Sugar and cacao are also exported from Port of Spain. The products of St. Vincent and Dominica are similar to those of the other islands.

The French own Martinique (Fort de France) and Guadeloupe (Basse Terre). St. Thomas (Charlotte Amalie), St. Croix, and St. John are Danish possessions. Various attempts to transfer the Danish islands to the United States have failed. They are admirably adapted for naval stations. The island of Haiti consists of two negro republics, Haiti and San Domingo. The only important product is coffee. Most of the product is shipped to the United States, which supplies coal oil and textiles in return.

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