issued for construction costs; the remainder of the debt consists of Treasury certificates, certificates of war, Treasury bills, highway bonds, etc.

MUNICIPAL LOANS.

In the year 1916 the municipality of Bogota contracted a loan with the American International Corporation, of New York, for $5,000,000, the proceeds to be used largely to carry out public works. Later in the same year Medellin arranged for a loan of $400,000 at 10 per cent, with 1 per cent per annum extra in lottery drawings. A large portion of this loan, also for public works, was locally subscribed, and it is said that some of it was taken by New York banking interests. A few other municipalities have contracted small loans to construct waterworks and make general improvements. These loans usually carry high interest rates, a fact occasioned by the generally high money rates, which vary from 12 to 24 per cent per annum. A number of the cities and towns of Colombia are contemplating making sanitary improvements, laying out water-supply systems, and installing or improving electric-lighting plants. Most of these projects await the end of the European war.

BANKS.

The development of banks and banking in Colombia has of necessity been rather restricted. Bogota has naturally taken first place among the banking centers, it being the capital and largest city. The four banks of Bogota, with their capitalization (expressed in United States currency), are the following: Banco de Bogota, $250,000; Banco Central, $2,300,000; Banco de Colombia, $780,000; Banco Hipotecario, $500,000. The total deposits of these four banks in 1916 amounted to nearly $6,000,000. At the beginning of 1915 the financial standing of the banks was as follows (figures are in United States currency):

Among other banks of more or less importance in the Republic may be mentioned the Banco Comercial de Barranquilla, at Barranquilla; the Banco Alemán-Antioqueño and the Banco de Sucre, at Medellin; the Banco Comercial, at Cali; and the Banco de Bolivar and the Banco Unión, at Cartagena.

RAILWAY DEVELOPMENT.

There are within the Republic of Colombia to-day not more than 700 miles of operated railway-16 railways existing, the longest of which is only 149 miles. There is not a single "trunk line" in the

Republic and the various existing systems simply act as connections between various centers of population and some river or sea port of outlet, or else form means of routing traffic around rapids or river bars.

The principal railways of Colombia, with their approximate operated mileage, are:

Amaga Railway

Antioquia (Puerto Berrio) Railway..

Barranquilla Railway

Cartagena Railway (Colombia Railway & Navigation Co.).

Cucuta Railway

Dorada Extension Railway

Colombian National (Girardot) Railway.

Pacific (Cauca) Railway

Great Northern Central Railway.

Colombian Northern Railway.

Sabana Railway

Santa Marta Railway

Colombian Southern Railway.

Tachira Railway

Tolima Railway

Miles operated (estimated).

23

108

17

65

45

71

86

149

12

39

25

99

21

10

75

The Amaga Railway is a local enterprise, financed and constructed by Colombians. The line is to be carried eventually from Medellin to the River Cauca. Plans were laid to link up the railway with the Antioquia Railway, running from Puerto Berrio on the Magdalena River. The authorized capitalization of this company was fixed at $1,000,000 Colombian gold.

ANTIOQUIA RAILWAY.

The Antioquia Railway is the oldest line in Colombia, its charter dating as far back as 1874. The terminus of the railway is at Puerto Berrio on the Magdalena River, and the line is being carried by slow stages toward Medellin. The railway seems to have about as good prospects as any in Colombia, and its earnings ($590,278 in 1913) are at present larger than the earnings of the various other lines in the country. At the outbreak of the European war construction work was temporarily suspended, the amount expended on the line up to that time having been in excess of $3,000,000 United States currency (the cost of the 102 kilometers-63 miles from Puerto Berrio to Sofia totaled $2,978,037). The work has been carried on almost entirely out of surplus profits from operations, although on several occasions unsuccessful efforts have been made to obtain loans abroad.

Puerto Berrio, the terminus of the line, lies at an altitude of approximately 400 feet above the sea. The railway from that point follows the course of the Malena River, the route being low and swampy, this necessitating a considerable amount of bridging and filling in. From the head of this little river the line climbs across a ridge into the valley of the Nus, the heaviest grade encountered being 4.5 per cent. The Nus River is reached at Pavis, about 48 kilometers (30 miles) from Puerto Berrio, the cost of the 48 kilometers being estimated at $1,616,800 gold. From this point numerous engineering difficulties-really colossal, at times-have had to be overcome very slowly, owing to the scarcity of funds. A tunnel of considerable size yet remains to be completed.

BARRANQUILLA RAILWAY & PIER CO.

The line operated by the Barranquilla Railway & Pier Co., a British corporation, is 18 miles in length and extends from Puerto Colombia on the Caribbean Sea to Barranquilla, the principal port for the Magdalena River, the mouth of which is not navigable on account of obstructions.

The Republic of Colombia had the right to purchase the property at a fair valuation in 1913, but did not exercise that right. In 1923 the Government may purchase the property "at a fair valuation less 20 per cent" and in 1933 "at a fair valuation less 40 per cent." The capitalization of the company consists of £250,000 shares, par £10, of which £50,000 was given as a bonus in 1913. There is also outstanding £100,000 6 per cent first debenture stock, principal repayable at 110 at the option of the company on six months' notice. This debenture stock was quoted in January, 1918, at 94.. The dividend payments on the stock during recent years have been at the following rates: 1908-9, 21 per cent; 1909-10, 3 per cent; 191011, 4 per cent; 1911-12, 5 per cent; 1912-13, 5 per cent cash and a bonus of 25 per cent in stock; 1913-14 to 1916, 5 per cent per annum; 1917, 6 per cent. The annual receipts of the company at present exceed £75,000. The gross earnings for 1914, as expressed in Colombian currency, totaled $35,678,876.

COLOMBIA RAILWAY & NAVIGATION CO.

The Colombia Railway & Navigation Co. is the successor of the Cartagena Railway and operates a 65-mile line of railway from Cartagena, a port on the Caribbean Sea, to Calamar, on the Magdalena River. The capitalization of this company consists of the following securities:

Ordinary stock, par £1, £750,000. No dividends are being paid, and the price of the shares (January, 1918) is approximately 9d. Navigation debentures, 6 per cent. Secured on steamboats and other property. Interest regularly paid, through 1916. Quotation January, 1918, 43 per cent.

Railway debentures, 5 per cent. Interest on these debentures is to be paid March 30 and September 31, dependent on profits up to 2 per cent per annum after payments on the Navigation 6 per cent bonds and 3 per cent after provision has been made, for a renewal and repair fund of £5,000 and the Navigation bond redemption fund of £6,399 per annum, when it comes into operation in 1918. On two occasions during the past five years part of the interest was paid in cash; on other occasions the interest payments were made wholly in deferred interest warrants, to be redeemed out of profits. The bonds were quoted in January, 1918, at about 11 per cent of par.

Gross earnings for 1915-16 amounted to £233,076, as compared with £243,722 in 1914-15 and £333,944 in 1912-13. The securities are listed on the London Stock Exchange.

CUCUTA RAILWAY.

The Cucuta Railway was originally incorporated in 1866 to build a road for wagon traffic through the valley of Cucuta to Villamizar, a port on the River Zulia. Some years later a railroad was laid out