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an inflation of the budget would upset financial conditions in the country and that Congress had usurped executive privileges in dictating the establishment of certain positions. The veto has caused considerable discussion, the commercial circles generally supporting the President's attitude, while congressional leaders maintain that the president exceeded his authority in attempting to limit the action of the legislature.

The date of the closing of the international exposition celebrating the first centenary of Brazilian independence has been changed from November 15, 1922, to March 31, 1923.

San Paulo is the center of a rapidly growing steel and iron industry, which the Government is encouraging by a system of credits, by admitting free from custom duties machinery to be used in the industry, and by the use of large quantities of the product.

The State Departments of Argentina and Brazil have appointed a joint commission to find the quickest and best method of improving commercial relations between the two countries.

Responding to the action of the Mexican Government in appointing an ambassador to Brazil, the latter country has raised the rank of its diplomatic representative at Mexico City to that of ambassador.

An Institute for the Permanent Defense of National Products, with headquarters at Rio de Janeiro is being projected under Government sponsorship to help stabilize and encourage the distribution of Brazilian products both at home and abroad. The organization, which is to take the form of a limited company under official patronage, will be in charge of a council consisting of the Secretary of Agriculture, and five other members to be appointed by the President.

CHILE

Coastwise traffic has been reserved exclusively to ships carrying the Chilean flag. In accordance with the terms of the law which permits foreign companies having their main

offices in a Chilean port to engage in the traffic, several foreign companies have applied for nationalization.

Capitalists and shippers are cooperating in an endeavor to create a permanent fruit trade between Chile and the United States, since the seasons alternate between the two hemispheres.

The Governments of Chile and Mexico have completed arrangements by which eight cadets in the military academies of the respective countries complete their training in the military schools of the other.

The fifth Pan-American Conference, scheduled to meet in Santiago in 1914 but postponed on account of the World War has been called to meet in the same city in March, 1923. Reduction of land armament has been suggested as one topic for discussion. It is possible that Canada may be asked to send a representative to the meeting.

A new political combination composed of the Centre, Moderate, Liberal, and Democratic parties and possibly supported by both Radicals and Conservatives, has produced a truce between the Executive and the Senate.

Delegates from Chile and Peru met at Washington on May 15 to inaugurate a conference whose purpose is to settle finally the Tacna-Arica controversy, long regarded as the most troublesome of all South American questions. The delegations have experienced considerable difficulty in their attempts to come to an agreement. Chile's position in general is that a plesbiscite is the only method of carrying out the Treaty of Ancon, and that its terms might be submitted to arbitration; while Peru maintains that a plebiscite held now would not fulfill the treaty and insists that the question of the holding of such a plebiscite should be submitted to arbitration.

COLOMBIA

With the exchange of ratifications of the treaty between the United States and Colombia according to the terms of which the former has undertaken to pay $25,000,000 to the latter for losses arising out of the secession of Panama, a more cordial feeling has resulted between Colombia and Panama.

A syndicate of Belgian financiers has authorized a local banker of Bogota to take up contracts for the construction of several railroad lines; and a German company has entered into a contract to improve the navigation of the Magdalena River.

A shortage of funds in the treasury accompanied by a delay on the part of private interests to undertake an internal loan, has forced the issuance of an additional $500,000 in currency.

CUBA

Following a protest from Washington, the government has postponed until July 6 the sale of unclaimed merchandise in bonded warehouses. American firms have until that time to remove over $60,000,000 worth of goods sold to Cubans but not paid for; if they are not removed by the date mentioned, the goods will be sold for customs duties.

According to press dispatches dated June 10, the entire government is in the process of change to enable it to meet the conditions laid down by General Crowder. It is reported that President Zeayas and General Crowder are working in harmony in making changes designed to keep the island from bankruptcy.

EQUADOR

The failure of negotiations for a projected $25,000,000 loan to be handled by American bankers has shown the difference between the methods employed by American and European capitalists. The Americans required an exhaustive statement of the resources guaranteeing the loan, and refused to extend the loan on the ground that Ecuadorean legislation was too unstable. Experience seems to have demonstrated that European capital has more confidence in Latin-American countries than has American capital.

The centenary of the battle of Pichincha was widely celebrated on May 24, especial tribute being paid to the memory of Marshal Sucre to whom the success of the battle was largely due.

GUATAMALA

General Jose Maria Orellana, who overthrew the Herrera government last December and thus disrupted the Republic of Central America, has been elected constitutional president, by an almost unanimous vote. President Orellana soon after his election declared that Guatamala desired that relations both political and commercial between that country and the United States be as good as those which might exist between Guatamala and any other country.

The president has ordered the release of a number of political prisoners after a full investigation of their cases.

The new government was recognized by the United States on April 15. Francisco Sanchez Latour, former Secretary of Legation at Washington, has been appointed Minister.

HAITI

On April 11, Luis Borno, a prominent attorney and cabinet member, was elected by a unanimous vote of the legislature to succeed Sudre D'Artiguenave. The election has been protested on the grounds that Borno was constitutionally ineligible and that his government was sustained only by American forces.

MEXICO

The largest private land sale in the history of Mexico was announced on February 13 when arrangements for the transfer of 10,000 square miles to the McQuatters Corporation of New York were completed. The sale was forbidden by a proclamation of Governor Enriquez of Chihuahua in accordance with an announced policy forbidding the sale of land to foreigners.

President Obregon has announced his intention to start payment on Mexico's debt without awaiting the recognition of his government. An International Bankers' Commission, the American section of which is headed by Thomas W. Lamont of J. P. Morgan & Company, has been meeting with Secretary of the Treasury de la Huerta in an attempt to reach a settlement regarding Mexico's financial situation.

The Government has issued a decree relieving the owners of mining property from penalties for the failure to pay taxes during recently disturbed conditions, the remittal of penalties to be effective where the owners pay before July 1, the taxes assessed for 1921 and 1922 and agree to pay other arrears in installments.

The states of Puebla, Michoacaan, Tabasco, Vadillo, and Nuevo Leon have deposed their governors within the past few months.

The chief oil controversies between the Government and the most important oil companies operating in Mexico were settled at a conference held during the latter part of April at which the existing arrangements regarding export taxes were continued and a basis of valuation for production taxes was agreed upon.

According to a dispatch from Mexico City, President Obregon has ordered the suspension of the coinage of silver in order to forestall the discounting of silver money in favor of gold.

NICARAGUA

Extensive arrests have been made of members of the Liberal Party because of alleged revolutionary activities against the government of President Chamorro.

An American court-martial sitting at Manague sentenced twenty-six marines found guilty of engaging in a fight with Managuan police to terms ranging from eight to twelve years in prison. The verdict of the court completely stopped local resentment arising from the encounter.

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