The capital of the Republic, the city of Managua, is of less interesting character, and was, in a measure, raised to that position in order to put an end to the rivalry between Leon and Granada, both of which claimed metropolitan predominance. It is situated upon the great lake of Nicaragua, the most prominent topographical feature of this part of Central America, and which, it will be recollected, was at one time destined to form part of the waterway of a proposed trans-isthmian canal in place of that of Panama.

This great lake valley and its adjacent highlands form the most plentifully inhabited part of Nicaragua, as the Spanish colonial development seized first upon its more fertile soil, watered by the lake and streams. This civilization entered the country from the Pacific side, from which we remark the grim and distant ramparts of the Central American Cordillera, with its volcanoes intervening between the western versant and littoral, and the low, monotonous and swampy region of the east, and the Mosquito Coast bordering upon the Atlantic. The Pacific coast here is bold and rocky, with a headland enclosing the Bay of Fonseca in Nicaraguan territory.

Through the Cordillera flows the San Juan River, draining this low eastern slope, and here lay the route of the projected Nicaraguan Canal, whose abandonment caused bitter disappointment to the people of the Republic.

In places in this wild land we remark the remains of the pre-Colombian folk, who have left vestiges of their temples and other structures, and thus we realize once more how a chain of temple and palace-building folk in ancient times was carried down the length of the continents from Mexico to Peru.

If too gloomy a description of the eastern side of Nicaragua has been given, this must be tempered by noting that it possesses certain natural advantages which may render it one of the most valuable districts, from an economic point of view, in the whole of Central America. Its rivers may be navigated by ocean-going steamers, and in the Bluefields district the industry of banana production and shipment has risen to very considerable importance.

The name of Nicaragua comes from that powerful native chief, Nicoya, who, when the Spaniards first arrived, received Davila, their leader, in a friendly spirit, and accepted Christian baptism at the hands of the Roman Catholic priests. But the Spaniards overran the country; those who invaded it from the east clashing with their own countrymen who came in from the west, and Nicaragua's fine Indian chief—pathetic page of native history—could not conserve here anything of independence for the rightful owners of the soil.

The Spanish rulers of this unhappy land were a dreadful band, of which it has been recorded that "the first had been a murderer, the second a murderer and a rebel, the third murdered the second, the fourth was a forger, the fifth a murderer and a rebel!"

In time the Indians revolted against intolerable oppression, and, later, rebellion after rebellion took place against the Mother Country. After Independence, the Wars of the Confederation constantly deluged the soil with blood, and the political government of the State was distinguished by a continuous series of military or civil revolts, during which the land was impoverished, debased and ruined, and from whose effects it has never recovered so far.

Yet Nicaragua is rich in natural products, agricultural, forestal and mineral.