In Nicaragua mechanics are scarce. Manufacturing is yet in the incipient state.[XXXII-53] However, the Indians make excellent pottery and other articles for home consumption.[XXXII-54]
In Costa Rica there is hardly any domestic manufacturing.[XXXII-55] Efforts are made by the government to develop the industry.[XXXII-56]
As regards Panamá, it may be said that manufactures are almost unknown, save such as are imported.[XXXII-57]
CHAPTER XXXIII.
COMMERCE AND FINANCE.
1801-1887.
Early State of Trade—Continued Stagnation after Independence—Steam on the Coasts—Its Beneficial Effects—Variety of Staples—Ports of Entry and Tariffs—Imports and Exports—Fairs—Accessory Transit Company—Internal Navigation—Highways—Money—Banking—Postal Service—Panamá Railway Traffic—Local Trade of the Isthmus—Pearl Fishery—Colonial Revenue in Finances of the Federation—Sources of Revenue of Each State—Their Receipts and Expenditures—Foreign and Internal Debts.
During the first years of the present century, toward the end of the Spanish domination, after many restrictions to trade had been removed, and Central America had obtained leave to traffic direct with Mexico and other Spanish American colonies, there were only 30 or 35 mercantile houses throughout the country. Merchandise to the value of one million dollars was yearly imported from Spain through the bay of Honduras. The returns were chiefly in indigo, coin, and bullion. There was some trade also with Peru and Cuba.[XXXIII-1] Smuggling was carried on quite freely, even the officers of the revenue cutters taking a hand in it. The large amount of goods thus imported caused a drainage of specie.[XXXIII-2]
FOREIGN TRADE DATA.
FAIRS AND IMMIGRATION.
After the separation from Spain, there was little commerce for many years,[XXXIII-3] until the construction of the railway across the Isthmus, and the establishment of a line of steamers making periodical visits at the several Central American ports on the Pacific coast, afforded facilities for the development of both agriculture and foreign trade,[XXXIII-4] which under liberal legislation has since assumed large proportions, commerce being free with all friendly powers. In a note[XXXIII-5] are given copious data on the foreign trade of each of the five republics, showing an invariable balance in their favor, which steadily increased their wealth. As to internal trade, there is very little to say. The several republics have regularly established fairs, which are attended by those wishing to purchase national or foreign products or manufactures.[XXXIII-6]
The republics, having special facilities for internal navigation, endeavored to make them available. Guatemala granted privileges with the view of having a steam line established between the fluvial port of Panzós and Livingston, and also on Lake Amatitlan. In Nicaragua, under a contract entered into on the 22d of September, 1849, and amended April 11, 1850, between the government and an American company, transit was formally established between the two oceans, by way of Lake Nicaragua.[XXXIII-7] The American Accessory Transit Company, as it was called, went into active operation and carried thousands of passengers to and from California.[XXXIII-8] The first interoceanic trip was made in August 1852, and the service continued successfully until February 18, 1856, when it was suddenly closed, and the company's charter was revoked by the government of Rivas, at the dictation of William Walker.[XXXIII-9] The transit continued for a time under Walker's control, mainly to furnish his army with recruits, until the steamers fell into the hands of his enemies.[XXXIII-10] Navigation on San Juan River and Granada Lake was regulated in June 1861. In 1868 a convention was concluded between Nicaragua and Costa Rica for the navigation of the rivers San Juan and Colorado. In 1870 a contract was made with Hollenbeck and his associates for steam navigation on Lake Granada, and it was inaugurated in 1872.[XXXIII-11]