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shocks, which damaged several towns
and destroyed some lives.

was borrowed from Lima bankers, taxes on alcohol were increased, and Uruguay. The administration of the income tax was raised to six per cent. The budget for 1916 estimated President José Batlle y Ordoñez, While he the receipts at Lp 2,847,275 and the which terminated in March, was both A criticized and praised. expenditures at Lp 2,973,471. stamp tax and a 10 per cent. increase made wide use of the executive power, in duties on certain articles were there were no political persecutions, proposed to cover the deficit. In Oc- freedom of the press was maintained, tober Congress finally approved the and numerous reforms in legislation constitutional amendment guarantee- were accomplished. At the election ing religious liberty. President Par- held by Congress on March 1, Fedo refused either to veto or sanction liciano Viera was chosen President Upon the promulga- for the ensuing four years. He was the measure. tion of the amendment by Congress, inaugurated two days later and ana clerical deputy started a riot and nounced that he would follow the gena demonstration by those opposed to eral lines of President Batlle's polthe law took place in the streets of icy. He proposed to secure constiA tutional reform, to maintain the freeLima immediately afterwards. Farmer's Alliance was organized to dom of elections, to develop greater interest the Government in passing friendship with other nations, to laws favoring agriculture and to pro- practice economy in government, to mote the creation of agricultural create new sources of revenue through banks and the construction of better moderate taxation, to foster education, stock-raising and agriculture, roads. and to make provision for adequate labor legislation. The principal legislative enactments of the year were a law prolonging the inconvertibility of the notes of the Bank of the Republic for three months after the close of the war in Europe, a law for the promotion of agriculture and colonization, a law providing rules and regulations for the prevention of accidents to workingmen, and an eight-hour law. Financial difficulties pressed heavily upon the Government. A new issue of treasury notes was made and a loan of 6,000,000 pesos ($6,204,000), bearing eight per cent. interest, was placed at 95. The budget of 1915-16 estimated the receipts at $29,578,000 and the expenses at $29,477,311.

Salvador. At the beginning of the
year, acting President Alfonso Qui-
ñonez Molina was in charge of the
administration. After a very quiet
campaign, Carlos Meléndez was re-
elected to the Presidency in Janu-
ary and assumed the office on March
1. During the year much attention
was given to educational matters
and to measures to stem the eco-
nomic crisis due to the European
War. Arrangements were made with
European creditors which improved
the credit of the country, and an
income tax was laid to secure addi-
tional funds to meet the expenses
caused by the abnormal conditions.
The budget for 1915-16 estimated the
revenues at 12,064,900 pesos and the
expenditures at 12,373,502 pesos (pe-
so = $0.365).

A treaty providing for freedom of
trade between Salvador and Hondu-
A de-
ras was signed on July 27.
cree enforcing the law regulating
of tenement
sanitary conditions
houses was published. The notable
steps in education were the found-
ing of a law college in the city of
San Salvador, the opening of a nor-
mal institute for boys and the estab-
lishment of a graded system in the
public schools throughout the repub-
lic. During September and October,
there
earthquake

were numerous

Venezuela.-Gen. V. Márquez Bustillos, who was chosen President for one year in 1914, controlled the administration during the first four On May 3, Gen. months of 1915. Juan Vicente Gómez was unanimousAlthough acly elected by Congress for the term from 1915 to 1922. cused by the emigrés of being dictatorial, Gómez continued the energetic During June policy begun in his previous administration (1910-14). and July, Congress carried out a very extensive legislative programme. The principal enactments were a law of

public credit, revenue laws affecting | new decree regulating pearl fishing

liquors and cigarettes, a law of public instruction, laws respecting primary, secondary, normal and higher education, including a provision for compulsory attendance in the elementary schools, an electoral law, a fundamental law for the Federal District, and a new tariff law. A code for the Federal Court of Cassation was also adopted. In January, a

was published. It placed this industry in charge of an administrator from whom a license has to be secured by the payment of specified fees. The question of the French claims against Venezuela was finally adjusted by a protocol of Jan. 14. The budget for 1915-16 was estimated to balance at 39,594,500 bolivares (bolivar = $0.193).

CANADA

ERNEST H. GODFREY

Canada and the European War.-guns. During the spring and summer During the year 1915 the national they were engaged in four principal energies of the Dominion of Canada fights, viz., Neuve Chapelle, Ypres, have been mainly directed towards Festubert and Givenchy. In his dethe successful prosecution of the Eu-spatches relating to the second batropean War. The raising and equip- tle of Ypres on April 22, when conment of troops, the manufacture of munitions and other incidental activities have provided work for many who would otherwise have been out of employment. An extraordinarily abundant harvest, realizing good prices, is also a bright feature of the year's outlook. On the other hand, the heavy casualties suffered by the Canadian forces have brought sorrow and anxiety into thousands of Canadian homes. Numerous appeals for subscriptions to war funds, such as the Canadian Patriotic Fund, amounting (Dec. 21) to $6,367,553, Belgian, Serbian and prisoners-of-war relief funds, and those of the Canadian and British Red Cross Societies, have been generously responded to. In these directions, as well as in the sending of trained nurses to the front, the women of Canada have risen nobly to the height of a great occasion.

trary to international conventions and the rules of civilized warfare, the Germans began the use of poisonous and asphyxiating gases, Sir John French wrote as follows: "The Canadians held their ground with a magnificent display of tenacity and courage. It is not too much to say that the bearing and conduct of these splendid troops averted a disaster which might have been attended with most serious consequences." Their total casualties up to June 30 were officially returned as 11,270, including 1,787 killed, 6,619 wounded and 1,842 missing, the remaining 1,022 being reported as prisoners, or otherwise incapacitated. Soon after the arrival of the first Canadian division in France the second division began to land in England, and in November a third division was offered to and accepted by the Imperial authorities. At the end of the year, the number of The first division of Canadian Canadian troops recruited for service troops, consisting of over 33,000 of overseas reached 212,690 out of an auficers and men, who landed in Eng-thorized total of 250,000. In a New land on Oct. 16, 1914, received fur-Year's message to the Canadian peother training on Salisbury Plain dur-ple, issued on Dec. 31, 1915, the Prime ing the fall and winter of 1914-15, Minister stated that from Jan. 1, under conditions which were particu- 1916, the authorized forces of Canlarly trying owing to excessively wet ada would be increased to 500,000, weather. At the end of February, this announcement being made "in 1915, the troops crossed to France token of Canada's unflinching resolve and proceeded to Flanders, where to crown the justice of our cause they speedily proved themselves to with victory and an abiding peace." be capable and efficient soldiers, On July 8 the Canadian Prime Minwhether as infantry in the trenches ister (Sir Robert Borden) and a few or as artillerymen serving excellent days later the Minister of Militia and

The

Defence (Major-Gen. Sir Sam Hughes) were assented to on April 8. arrived in England for conference first amended the customs tariff of with the British authorities; they 1907 by imposing, subject to certain also visited France and inspected the exemptions and conditions, additional Canadian troops. On July 29 Sir duties of five per cent. on the British Robert Borden received the freedom preferential tariff, and 7 per cent. of the city of London, and on Aug. on the intermediate and general ta24 General Hughes was knighted by riffs for all the imports of Schedule the King. An event of Imperial sig- A, and also by imposing duties to nificance was the presence of Sir Rob- these amounts upon imports in ert Borden at a meeting of the Brit- Schedule A hitherto admitted free. ish Cabinet on July 14. While set- This Act was enforced as from Feb. ting an important precedent, this 12. By the other Act special taxes event involved no violation of consti- were imposed upon the note circulatutional procedure, since the body tion of banks, the income of trust known as the Cabinet is in theory a and loan companies, the premiums of committee of the King's Privy Coun-insurance companies (other than life, cil, of which Sir Robert Borden is a member.

fraternal-benefit and marine), upon cable and telegraphic messages, and railway and steamboat tickets. A stamp tax of two cents was imposed upon all checks, receipts to banks by depositors, bills of exchange passing through banks, bills of lading and express and post-office money orders. A war stamp tax of one cent is also payable on postal notes and upon all letters and postcards, in addition to the ordinary rates of postage. Proprietary or patent medicines and wines sold in Canada are likewise subjected to special taxation. The full effect of these measures will not be apparent until the close of the fiscal year on March 31, 1916; but for the eight months ended Nov. 30, the total revenue was $104,756,305, as

Finance of the War.-It was inevitable that the war, by which imports from hostile countries ceased, should occasion a serious loss of revenue from import duties. For the fiscal year ended March 31, 1915, the revenue totalled $133,073,482, including war-tax revenue amounting to $98.057, as compared with $163,174,394 in the previous year; so that the loss of revenue amounted to about $30,000,000. The Canadian Minister of Finance (Hon. W. T. White), in his budget speech of Feb. 11, stated that the Government policy had been, in the interest of employment, to maintain as far as possible the programme of public works under construction, but to restrict the under-compared with $90,468,003 for the taking of new works until the financial situation became clearer. He proposed that the full amount required for war expenditures should be borrowed, on the ground that these expenditures were being incurred for the purpose of preserving for future generations national and individual liberty and constitutional freedom. In August, 1914, a special war appropriation had been made of $50,000,000 for expenses to March 31, 1915, and on April 15, 1915, the War Appropriation Act, 1915, (Ch. 23) provided for a further sum of $100,000,000 to March 31, 1916. With a view to supplementing the revenues of the country, two acts were passed by the Dominion Parliament, viz., the Customs Tariff War Revenue Act, 1915 (Ch. 3), and the Special War Revenue Act, 1915 (Ch. 8). Both

corresponding months of 1914, an in-
crease of $14,288,302. For the same
period the expenditure on Consoli-
dated Fund Account was $65,345,503,
as compared with $75,708,628 in
1914, in addition to capital expendi-
ture of $91,475,889, including war ex-
penditure, $66,514,955, as compared
with $28,231,934, the capital expen-
diture for the same period in 1914.
On Nov. 22, applications were in-
vited for participation in a war loan
consisting of the issue of bonds to
the value of $50,000,000 maturing on
Dec. 1, 1925, and bearing interest at
five per cent., payable half yearly
and exempt from taxes.
The price
of the issue was fixed at 97% per
cent. At the closing of the subscrip-
tion lists on Nov. 30, it was an-
nounced that more than double the
$50,000,000 asked for had been sub-

scribed, and the amount of the loan was increased to $100,000,000.

were urged to sow larger areas to wheat, and the prospect of increased prices added the incentive of self-interest to that of patriotism. A fine fall, a mild winter and a good seed time were favorable to the efforts of the farmers, and the result was an increase in the area under wheat of nearly three million acres, as compared with the harvested area of the previous year. A wonderfully good growing season followed and resulted in a bumper harvest, exceeding, for the principal grain crops, all previous records, and, with better prices, bringing hopes of reviving prosperity to the western provinces.

Agriculture. The season of 1914, with its disastrous drought throughout the western provinces, was one of the worst on record, and the outlook for Canadian farmers would have been dismal had the low yields been combined with the low prices which prevailed before the outbreak of the war. This event sent prices up to unprecedented figures, which although not maintained at the high point first reached, were so remunerative that they more than compensated growers for the poor yield. The result was that the total estimated value of the field crops of Canada was $638,580,300, as compared with $552,771,500, the estimated value of the abundant harvest of for the latter year being provisional For 1915 Canadian farmers estimates, subject to revision:

1913.

The following table gives the areas and yields of the principal crops for the years 1914 and 1915, the yields

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An official estimate places the ex- Commerce.-Eliminating coin and portable wheat surplus for the year bullion, the value of the aggregate at over 228 million bushels, a quan-trade of Canada for the fiscal year tity more than required to supply the usual deficit of the Mother Country. The following were the estimated numbers of live stock in Canada on June 30: horses, 2,996,099; milch cows, 2,666,846; other cattle, 2,399,155; sheep, 2,038,662; swine, 3,111,- | 900. These are slight decreases as compared with 1914, except for horses and cattle other than milch cows, which show a small increase.

ended March 31 was $958,894,411, as compared with $1,090,948,716 in 1913-14, a decrease of $132,054,305, or 12 per cent. Of the total value, exports amounted to $461,442,509, as compared with $455,437,224 in 191314, and imports to $497,451,902, as compared with $635,511,492, the increase in exports being $6,005,285, or 1.3 per cent., and the decrease in the imports being $138,059,590, or

was

capital liability of the railways, bringing the total up to $1,875,810,888, of which $1,024,085,983 represented by stocks, and $851,724,905 by bonds. This does not include the liability attaching to mileage under construction.

Immigration.-The large annual immigration to Canada has been arrested, and for the fiscal year ended March 31, 1915, the total arrivals were only 144,789, as compared with 384,878 in 1914. Of the total in 1914-15, 43,276 came from the United Kingdom, 59,779 from the United States and 41,734 from other countries. For the first eight months of the current fiscal year (April to November), the total number of immigrant arrivals was 35,685, including 7,678 from the United Kingdom, 25,843 from the United States and 2,164 from other countries.

Legislation. The fifth session of the twelfth Parliament of Canada was held at Ottawa from Feb. 4 to April 15, 1915, when 98 statutes were enacted, 24 of them being public gen

21.7 per cent. In these comparisons it should be noted that the values are affected by variations in price due to the war, and especially in the case of exports to the rise in the prices of grain and flour. The total trade of the Dominion with the United Kingdom in 1914-15 was of the value of $301,962,209, and with the United States $495,014,031, the balance of $161,918,171 representing trade with countries other than these two. The total value of imports for home consumption in 1914-15, excluding coin and bullion, was $455,371,371, including $90,083,178 from the United Kingdom, $296,632,812 from the United States, and $68,655,381 from countries other than these; while the exports of Canadian produce were of the total value of $409,419,503, including $186,668,599 to the United Kingdom, $173,320,798 to the United States and $49,430,106 to other countries. These figures represent the immediate effect of eight months' war. While the value of the total trade shows diminution, the decrease in imports is much larger than in ex-eral acts and the remaining 74 being ports, and the result is the estab- local and private acts. The session lishment of a practical equilibrium was largely colored by the war, and between the value of imports and certain measures relating to it have exports. The percentage ratio of ex- already been mentioned. Most of the ports to imports reached its lowest remaining public acts are in amendpoint in 1912, when the value of the ment of existing statutes as follows: exports was little more than half Canadian Patriotic Fund (Ch. 2); that of the imports. For the last An Act respecting certain issues of fiscal year, 1914-15, the ratio was Dominion notes (Ch. 4); An Act to raised to 92.7 per cent., and at the authorize certain extensions of time present time the balance of trade has to Insurance companies (Ch. 5); become entirely in favor of Canada. Judges (Ch. 6); Senate and House The total trade of Canada for the six of Commons (Ch. 7); Adulteration, months ended Sept. 30, 1915, exclu- including prohibition of the manusive of coin and bullion, reached the facture and sale of adulterated mavalue of $501,712,760, as compared ple sugar or syrup (Ch. 9): Canada with $497,697,573 for the correspond- Grain (Ch. 10); Criminal Code (Ch. ing six months of 1914. Imports 12); Dominion Controverted Elecduring the period were $228,335,678 tions (Ch. 13); Dominion Elections as against $280,860,222, and exports (Ch. 14); Gold and Silver Marking $273,377,082 as against $216,837,351. | (Ch. 15); Government Railways (Ch. Railway Construction. According to the official railway statistics of the Department of Railways and Canals for the year ended June 30, 1915, the total railway mileage of the Dominion (not including 1,593 miles under construction) was 35, 582, an increase of 4,788 miles over the preceding year. During the same year $66,990,127 was added to the

16); Inland Revenue (Ch. 17); National Transcontinental Railway (Ch. 18); Representation (Ch. 19); Winding Up (Ch. 21) and Yukon Placer Mining (Ch. 22). Chapter 11, assented to on April 15, provides for the exercise of the electoral franchise by the Canadian troops in the event of a general election in Canada during their absence on active service.

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