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for commercial, and especially for political reasons, should not, without protest, surrender her present influence in southern Persia. Russia, it was held, was not striving for an outlet at Bander Abbas or Chahbar so much for commercial purposes as for the strategic value which such a position would give here. It was pointed out that the construction of a proposed Russian railway from the trans-Caspian line to the coast would not be a paying enterprise, since the exports would necessarily be small and since imports are discouraged by the Russian government. Such a line across Persia, moreover, would pass through large districts of desolate and even desert country, which would be exceedingly prejudicial to its commercial value. What Russia was aiming at, in the opinion of certain pro-British writers, was the establishment of a "Port Arthur” on the Persian coast. The acquisition of such a position obviously would affect the connection of Great Britain with India. In the opinion of Captain Alfred T. Mahan, the American expert on naval strategy, it would "entait a perpetual menace of war;" while, according to Colonel Mark S. Bell, the well-known British military authority, it would "envelop Afghanistan, threaten India's flank, and menace the main arteries of communication which lead not only to India, but to Australia and the far East as well.” General Collen, who was lately secretary in the military department of the government of India, said that it “would be in the highest degree imprudent to rely on the pacific disposition of a particular monarch, or even on a friendly understanding with a great military Asiatic power, were this to be our only security." And it was further maintained that with a Russian railway connecting the trans-Caspian line with a Russian naval base on the Persian Gulf the government of India "would have to fortify their frontiers more, not less; to construct more, not fewer strategic railways; and to increase, not decrease their army and fleet in Indian waters." The desire on the part of some Englishmen to reach some kind of a rapprochement with Russia, and especially an amicable understanding in regard to the Persian Gulf, was doubtless due in part to the violent Anglophobia existing in Germany in 1901. But, on the other hand, the surrender of British influence in the Gulf, acquired after “a century of effort," was no smail matter; and the opponents of such a policy expressed a seemingly justifiable apprehension in their disapproval of extending to so wily a diplomatic power as Russia any strategic favors without receiving some tangible quid pro quo. For a further account of the Persian Gulf question, see ARABIA (paragraph The Troubles in Koweyt).

It was reported in October, 1901, that a plot against the life of the Shah, headed by several members of the royal family and a minister of state, had been discovered and frustrated


PERU, a republic on the Pacific coast of South America between Ecuador and Chile. The capital is Lima.

Area, Population, etc.—The area of the eighteen departments and two provinces comprising Peru has been estimated at 695,720 square miles. This includes the department of Tacna (12,590 square miles), which is ceded provisionally to Chile; the attitude of that country, however, indicates that this cession will become permanent. There are unsettled questions of boundary with Brazil, Bolivia, and Ecuador. A protocol submitting to arbitration the boundary and other disputes with Bolivia was signed in November, 1901. The population, exclusive of uncivilized Indians, was officially estimated in 1896 at 4,699,999. The Roman Catholic is the only religion having a legal status in Peru. Primary instruction is nominally compulsory, and in the municipal schools gratuitous.

Government.-The chief executive is a president, who is assisted by a cabinet, the members of which hold office at his pleasure. The president for the four-year term beginning September 8, 1899, is Señor Eduardo López de Romano. The legislative power devolves upon a congress consisting of a senate and a house of representatives.

The regular army consists of 3,075 officers and men; the navy is inconsiderable. Finance.- A law establishing the gold standard was promulgated October 13, 1900; this was subsequently approved by the senate, and, on December 6, 1901, by the house of representatives. The unit of value is the sol, worth one-tenth of a British sovereign, or 48.665 cents. The most important source of revenue is customs; the largest item of expenditure is for the department of finance. The estimated revenue and expenditure for the fiscal year 1898 were 10,785,850 soles and 11,488,240 soles respectively; in 1899, revenue, 13,701,370 soles, and expenditure, 12,817,910 soles; the estimates proposed for 1900 were 13,850,000 soles for revenue and 14,220,000 soles for expenditure. In 1890 the government was released from its foreign debt in consideration of extensive concessions to the bondholders, who constitute the Peruvian Corporation. The internal debt has been stated at about 48,294,000 soles. The financial situation was somewhat strained in the fall of 1901 and it was proposed to

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declare gold coin the only legal unlimited tender and to demonetize 100,000 silver soles.

Industries and Commerce.-Agriculture and mining are the principal industries. The chief products include sugar, wools, cotton, coffee, and silver. The estimated sugar production for 1901 was 140,000 tons. The cotton export in 1898 was 6,712 metric tons; in 1899, 5,876 metric tons; wools in 1899, 3,435 metric tons. In the latter year the value of ores exported was about 10,667,000 soles ($4,648,800). The exportation of petroleum has ceased; its production in 1899 amounted to 19,845.991 litres. The leading imports are cotton and woollen textiles, iron and steel goods, and food-stuffs. Imports in 1899 and 1900 were reported at 18,734,949 soles and 23,171,500 respectively.

The export trade of Peru during 1900 showed an increase of 46.4 per cent. over that of the preceding year, the exports in 1899 amounting to 30,725,911 soles ($14,932,792), and in 1900 to 44,979,996 soles ($21,860,278). These figures do not include the exportation of guano, and represent only the trade of the Pacific ports; the trade of the eastern river port, Iquitos, has not been officially reported; but it is estimated that if the trade from that port be added, the total exportations of Peru in 1900 would amount to about 50,000,000 soles. Great Britain still has first place in the export trade, receiving in 1900 46.49 per cent. of the total amount exported, against 50.44 per cent. in 1899; the United States ranks second, with 21 per cent. in 1900, against 4.49 per cent. in 1899; Chile third, with 13.7 per cent., against 18.54 per cent. in 1899; and Germany fourth, with 11.47 per cent., against 7.49 per cent. in 1899. The remarkable increase in the value of the exports sent to the United States was mainly represented by sugar. The greatest increase in the exports of 1900 was in minerals (especially copper), sugar, cotton, cocaine, and hides, in the order named. Especial attention is called to Peru's exports of cotton, which in 1900 amounted to 7,246 metric tons, and, since the cotton factories of Tocuyo consumed about 1,400 tons, the total cotton production may be estimated at about 8,600 tons. On the other hand, the production of wool which should be an export of increasing importance, has for a number of years practically remained stationary. The values in United States money of the leading exports in 1900 were as follows: Minerals, $8,137,975 (exclusive of bullion and coin, gold, $354,988, and silver, $98,579); sugar, $7,075.395; cotton, $1,583,721 ; wools, $1,440,732; cocaine, $563,625; hides, $527,594; coffee, $307,


Communications.-In 1898 there were open to traffic 1,035 miles of railway, of which 844 miles were operated by the Peruvian Corporation. Since that time railway construction has progressed and new lines have been projected. The telegraph lines in 1900 aggregated 2,248 miles. Communication by way of the Amazon River is increasing in importance. The river is navigable to sea-going vessels from Pará to the Peruvian town of Iquitos, over 3,000 miles distant.

History.-In his message to congress in July, 1901, President Romaña stated that his efforts were directed to stamping out political discord, improving the national finances, which were at that time in a satisfactory condition, and strengthening foreign relations. The question of the undetermined boundaries of Bolivia, Brazil, and Ecuador, he said, had not caused any tension. In August a resolution to censure the cabinet, introduced in the house of representatives, caused much excitement in Lima. The resolution was adopted by the house and rejected by the senate. The cabinet appeared to have the approval of the people. On January 31, 1901, an extradition treaty with the United States was proclaimed. At the beginning of 1901 the Harvard University meteorological stations, which for a number of years had been maintained at various points of high altitude in Peru, were discontinued.


PETROLEUM. The production in the United States in 1900 was 63,362,704 barrels, valued at $75,752,691, as against 57,070,850 barrels, valued at $64,603,904, in 1899. This was the greatest production ever known, the large increase being due to West Virginia, California, Ohio, Indiana, and Texas. Of the total output 91%2 per cent. was obtained from the Appalachian and the Lima-Indiana fields. The average price of petroleum in 1900 was $1.19 per barrel, as compared with $1.13 1-5 in 1899. There were in the Appalachian and the Lima-Indiana fields 14,583 wells, and of these 11,764 were productive. Petroleum is obtained from California, Colorado, Illinois, Indiana, Kansas, Kentucky, Indian Territory, Michigan, Missouri, New York, Ohio, Pennsylvania, Texas, West Virginia, and Wyoming, and since January, 1877, 104,793 wells have been completed in the Appalachian oil field, of which number 18,894 have failed to produce oil. Assuming the average cost of drilling each one at $2,000, this gives us a value of $209,586,000 spent in boring for oil. The total number of wells completed in the eastern petroleum field since the discovery of oil by Colonel Drake at Titusville, Pa., in 1859, is estimated at 118,000. The total number of gallons of petroleum and its products exported in 1900 was: 975,123,476, valued at $73,276,282, compared with 951,024,441 gallons valued at $64,982,249 in 1899. Although the value

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Courtesy National Oil Reporter,

Texas Oil Fields.—Wells on Spindle-Top, Beaumont.

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