STATEMENT OF REVENUE AND EXPENDITURE FOR THE LAST TEN YEARS.
| Year. | Expenditure. | Deficit. | ||
| $ | $ | $ | ||
| 1901 | 7,556,721.56 | 7,284,264.51 | 727,542.95 | |
| 1902 | 6,702,021.70 | 8,459,460.84 | 1,757,439.14 | |
| 1903 | 6,792,045.69 | 7,704,756.34 | 912,710.65 | |
| 1904 | 8,060,689.05 | 8,759,404.63 | 698,715.58 | |
| 1905; | 8,536,443.07 | 10,045,413.03 | 1,508,969.96 | |
| 1906 | 8,484,419.78 | 12,246,825.76 | 3,762,405.98 | |
| 1907 | 8,669,189.12 | 11,389,642.40 | 2,720,453.28 | |
| 1908 | 10,676,338.92 | 12,656,656.61 | 1,980,317.69 | |
| 1909 | 10,776,028.65 | 11,856,002.21 | 1,139,903.56 | |
| 1910 | 10,620,865.57 | 13,027,546.96 | 2,406,681.39 | |
| $85,814,833.11 | $103,429,973.49 | $17,615,140.28 |
It will be observed that, while the general revenue of the Republic had expanded considerably during the past decade, having, indeed, increased about 50 per cent., the expenditure had, unfortunately, expanded also, and to a greater degree, leaving an annually increasing deficit to be met. The reason for this during the latter few years is clear—the unfortunate political troubles which were thrust upon the Republic by the acts of certain revolutionists instigated by the evil genius of Central America, ex-President J. Santos Zelaya, and which turned what might have been a fairly profitable period into a disastrous one, from a financial aspect.
Nevertheless, there is no reason to adopt a despairing view of the Salvadorean national finances, since the resources of the country are very elastic, and their development is but in its infancy.
It is much to the credit of the Government, both the present and that which was lately in office, that the situation should have been so boldly and frankly met, the whole position being explained and true reasons given. Everyone must think the better of the authorities for their honesty in dealing with the nation, an honesty which is, unfortunately, rare, not alone among Latin-American States, but also among European Governments of much older growth and wider experience. Don Manuel Lopez Mencia, the ex-Minister of Finance, who is a thoroughly capable and experienced financier, fully grasped the necessities of the situation, and before retiring from office freely criticized his own Department, offering many valuable and timely suggestions for improving it and for placing the finances of the country upon a more satisfactory basis. I believe that the present year (1911) is destined to afford a much more encouraging condition, and a continuation of the present economical and severe retrenchment policy in force; the deficit, which has made an unwelcome appearance in each year's accounts over a period of a whole decade, will gradually give place to a surplus. Naturally, all depends upon internal peace being preserved and freedom from foreign political troubles; both of which, happily, at the time of writing seem to be well assured.
In regard to the general financial conditions of Salvador, which are at the present time in a much more satisfactory state, the following particulars will be of interest:
PUBLIC DEBT.
The composition of the Public Debt on December 31, 1909, stood as follows:
Gold Liabilities.