Bolivia—the land-locked Republic of South America—has maintained good relations with her neighbours and her record until the war was one of economic progress. Her external debt in March, 1913, amounted to 3,000,000l. only, nearly all contracted with the Credit Mobilier Français, and her productiveness was increasing. A thorough study of this Republic by M. Paul Wallé on the instructions of the French Ministry of Commerce is embodied in his book "Bolivia, its People and its Resources, its Railways, Mines and Rubber Forests" (T. Fisher Unwin, 1914). New railway schemes were projected during the year for regions still dependent on mule transport. A decree was issued from La Paz requiring the registration of labour contracts for the interior and making provisions, under penalties, for the prevention of abuses of the peonage system, common throughout Latin America and not infrequently resulting in the practical enslavement of the labourer. There had been scandals in Bolivia affecting Colombian nationals in the Beni rubber region; and perhaps no rubber-producing area on the continent is free from them. Since the exposure of the horrors in the Putumayo region Governmental opinion in other Republics has been stimulated to take corrective action where conditions more or less comparable had arisen, and the action of Bolivia is indicative of a desire to protect the forest worker. In this connexion it should be observed that the Foreign Office has sent a Circular despatch [Cd. 7148] to its consular officers, calling attention to the Putumayo report and giving directions for more energetic action in cases of maltreatment of natives where British subjects and companies are responsible. They are to make themselves cognisant of labour conditions in concessions partly or wholly controlled by British subjects, and to embody in their annual reports the result of their studies, besides making special reports in serious cases, thus enabling the Foreign Office to warn the persons and companies concerned. Following the precedent of the Putumayo case the policy of the British Foreign Office is to encourage consular vigilance, and on the receipt of reports of serious ill-treatment of natives where British subjects may be held to account, to authorise special consular journeys of investigation.

In Ecuador there was a revolutionary movement in the north, under the leadership of Colonel Concha, who was credited with a desire to overthrow President Plaza, who himself gained office by expelling General Alfaro from the Presidency. Colonel Concha held the port of Esmeraldas, which was shelled by Government war craft. The revolutionary movement was officially represented to be unimportant. Breaches of neutrality in the German interest were alleged also against Ecuador, which with Colombia was called to account by the British and French Governments (p. [237]). The Ecuadorean Government issued an absolute denial of this and of the charge that the wireless installations had been allowed to be used by Germany. The charges were "pure inventions concocted in the United States." It is noticeable that both in the case of Colombia and Ecuador the representations of the Allied Powers were made through and by the United States Government.

In Colombia Don José Vicente Concha, a Clerical and Conservative, and former Financial Agent of the Republic in Paris, was elected President for four years from July. The country was in the proud position of being able to announce that, notwithstanding the dislocation of business caused by the war, the interest on her external debt was being and would be punctually paid. The gold industry of this Republic is progressing. As in the case of Chile, but apparently with more justification, complaints were made (p. [237]) that Colombia had permitted acts in assistance of the Germans and had violated her neutrality. Colombia denied the charges, through the Chargé d'Affaires at the Legation in London, who cited a decree of September 1, "enforcing" all measures required to safeguard the neutrality of the Republic in connexion with the operations of the wireless stations at Cartagena and Santa Maria, the only two wireless stations in the country. A decree of September 11 was quoted to the effect that in the absence, of properly qualified experts who could satisfy the Government as to the way in which the censorship and transmission of messages would be conducted, the station at Cartagena "should be closed." There were also decrees of August 12 and 22 to ensure strict observance of neutrality rules by shipping and users of ports. The existence of these decrees was not in dispute. Later on the Chargé d'Affaires reported that official cables from Colombia of November 19 stated that the French Minister at Bogota and His Majesty's Naval Attaché in Washington had expressed their thanks to the Colombian Government and their satisfaction with the action taken to carry out the requests of the Allied Governments. The representations of the latter had, in fact, been effective. A treaty was under consideration by the United States Congress for the payment to Colombia of 5,000,000l. as indemnity for the loss of Panama territory by the revolution of 1903. The treaty had not been ratified by the United States Senate at the close of the year.

From Venezuela there is nothing more novel to record than a frontier raiding difficulty with Colombia.

FOOTNOTES:

[29] It reopened for general business on December 12, and for dealings in bonds a fortnight earlier.

CHAPTER IX.
AUSTRALASIA.

I. AUSTRALIA.

Had it not been for the dominating influence of the war the year in Australia would have been memorable for the unfortunate consequences attendant upon a season of short rainfall. The absence of rain was felt early in the year, and by mid-winter it was clear that both small and large holders would suffer severely. The lambing, which, in a great pastoral country like Australia, makes such a notable addition to the national income, was a partial failure, and over wide areas, particularly in the south of the continent, stock owners had considerable trouble to keep their flocks and herds intact. Among the farmers, the wheat growers were the main sufferers. The 1913-14 harvest exceeded 100,000,000 bushels, and was the largest the Commonwealth had produced. The crop which was being garnered at the close of 1914 produced only 26,500,000 bushels. With the single exception of New South Wales, which had a small quantity of wheat available for export, none of the States grew enough grain for their own flour necessities. The partial failure of the rainfall was the more serious because, as a great pastoral and a considerable agricultural community, Australia must otherwise have made very substantial gains out of the high prices for foodstuffs established by the war. At the same time, however, too much attention must never be paid to one season of bad rainfall in Australia. Previous to 1914 the Commonwealth enjoyed an almost unbroken run of exceptional prosperity for ten or eleven years, and there had in that time not only been remarkable development in all primary and secondary industries, but also a very considerable accumulation of wealth by all classes. Fortunately, as the year closed there were heavy and widespread rains, and with excellent prospects of a return to happier conditions in 1915.

The declaration of war against Germany was not taken quite so calmly by the Australian people as by the people of the United Kingdom. The Australians, as a youthful community, naturally exercise less restraint in a time of Imperial stress than the experienced veterans of the Mother Country. Then the high feeling which prevailed in Australia was accentuated by the sense of isolation from other parts of the Empire, and particularly from the seat of war; while the news service dealing with the war was, particularly in the early stages, far less satisfying in the Commonwealth than it was in London. All cable communications were severely censored both before they left the United Kingdom and in many cases again after they reached Australia, and the consequence was that the Australian people were apprehensive lest they should be receiving only information which was favourable to the British cause. It is necessary to mention these facts in order to understand the marked contrast presented by the British people at home and those of the self-governing Dominions in the early stages of the war. The scenes of enthusiasm which attended the departure of the first contingents from Australia found no parallel in the United Kingdom, and the Australian people were at the same time far more anxious and "jumpy."