CHAPTER VIII.

MANUFACTURING INDUSTRIES—THEIR DEVELOPMENT-PRODUCTION.

Breweries. For a few years the brewing industry was conducted by a company of merchants in Tegucigalpa, but during the past year (1903) the works have been closed down. This brewery was run without a freezing apparatus, and as the beer had to be made on a formula to resist the warm temperature the quality was necessarily poor and detrimental to health. A new company has been formed, composed chiefly of German merchants, who are about to begin anew the brewing of beer, and contemplate in conjunction therewith to erect a large ice producing and freezing plant, so that the beverage shall have a suitable temperature.

The brewing vats have a capacity of 6,000 liters per month or 720 hectoliters per year, and the output will reach this figure, approximately.

The freezing and ice plant has a capacity for the production of 1 ton of ice per day, which will be used for the purposes of the brewery as well as a commodity to be placed on sale at 5 centavos per pound. The machinery is American, and the engine is a 15 horsepower.

Distilleries.-All distilleries are under Government supervision and under the direct control of the Minister of the Treasury and his deputies, the collectors of customs and taxes of the several departments.

There is but one class of these distilleries, i. e., those that distill from the sugar cane. The liquor produced is in the nature of a strong alcoholic rum, which the natives call aguardiente.

The sugar cane planters usually enter into contract with the Government to supply a given quantity of the aguardiente every month, receiving therefor a stipulated sum upon delivery. They can not dispose of their product elsewhere, as the Government exercises a monopoly over the output.

The Government in turn sells the liquor in wholesale quantities to regularly licensed shops, known as estancos or monopoly stores, and it is at these places where the liquor may be obtained at retail, the price being regularly set at 1 peso 25 centavos per quart bottle, though lesser quantities can be purchased at correspondingly lower rates.

In the year 1901–2 907,993 bottles of this liquor were sold, yielding

to the Government an income of 1,134,991.57 pesos. Of this sum 211,399 were paid to producers or manufacturers, 69,676.04 in fees to receiving and dispatching agents, 27,546.06 for revenue expenses, or a total of 308,621.11, giving a surplus of 826,370.44 pesos. As the budget item was allowed at 800,000 pesos, this leaves a surplus over the estimated revenue of 26,370.44.

Following are the receipts and expenditures in connection with the Government monopoly of aguardiente for seven years:

Quarries.-There are many small quarries in various parts of the Republic, from which is obtained the soft stone so generally used for house facings, door and window frames, and curbs. The stone most commonly used and cut from such quarries is a schist, and is popular because it can be easily turned to decorative purposes.

The cutting of marble and other hard stone has not become general, both on account of the difficulty of extracting it from the beds and the absence of suitable implements to work it.

Sugar. The production of sugar from cane has always been an important industry in Honduras in every Department. The sugar cane of this country is indigenous and differs greatly from the Asiatic variety cultivated in the West Indies and the United States, being softer and slenderer, and containing a proportionately greater quantity of stronger sap. It grows luxuriantly, alike on the plains and upon the mountains, at elevations of between 3,000 and 4,000 feet. The crystals of the sugar produced from this cane are large and hard, and with care in the manufacture, nearly as white as the refined sugar of There are no extensive establishments for its production, but innumerable little trapiches, or mills, driven generally by oxen, are scattered everywhere to supply the small local wants of the people. The supply for ordinary consumption is made of cakes of crude sugar, 2 pounds in weight each, and wrapped in plantain leaves.

commerce.

The number of sugar-cane fields under cultivation can not be accurately or approximately figured, as no statistics are available. During the economic year 1901-2 it has been officially published that 15,000 cargoes of cake sugar, valued at 150,000 pesos, was produced. At 200 pounds to the cargo, this would mean an annual production of not less than 3,000,000 pounds. In this same official report the arca under cultivation was given as 7,711 manzanas, or 13,725 acres,

approximately. The greater number of these plantations are in the Departments of Tegucigalpa, Copan, Santa Barbara, Olancho, Gracias, Choluteca, and Comayagua.

The customs duty on imported sugar is 5 centavos (2+ cents, United States currency) per half kilo (1.1 pounds).

Tobacco. Since the Government removed the monopoly (Government control) on tobacco the production of this plant has greatly increased and it is grown to-day in nearly all the Departments of the In 1901 10,201,000 tobacco plants were cultivated, producing 13,582 quintals. Of this 5,531 quintals were exported in leaf and 4,240 quintals manufactured, leaving a residue of 3,811 quintals for home consumption. Three-fourths of the tobacco crop was grown in the Department of Copan, and the Departments in relative order of production are Gracias, Santa Barbara, Comayagua, and El Paraiso. The exportation of tobacco during the past three years is as follows:

1900-1901

1901-2

1902-3

Pesos. 213, 423.75 200,851.00 748.00

The largest manufacturing plants are situated in the Department of Copan, in the town of Santa Rosa. From here come all the better brands of cigars and cigarettes.

The decline in the production and export of tobacco in leaf and manufactured must be attributed to the revolution during the first three months of 1903.

The duty on imported tobacco is 1 peso per half kilo.

VARIOUS INDUSTRIES.

Rush and palm-leaf hats.-These hats, known under the general name of "Panama," were manufactured on a large scale in the Department of Santa Barbara during 1901-2, and shipped thence to the United States to the number of 15,000. The manufacture of these hats is now carried on only for the local market.

Flour.-Several flour mills have been in operation during the past two years, producing an annual amount of about 500,000 pounds. The duty on imported flour is 2 centavos per half kilo, but as in the case of all imported merchandise the tariff fee is the least burdensome, a dozen other charges having to be counted on before delivery to the market, which compels a final sale at excessive rates in order to secure a profit. The native population has not learned the value of flour, nor could they purchase it if they did, at the present price. The staple food is maize cake, flattened out by the hands and baked on an earthen dish until it assumes the consistency of a buckwheat cake.

Woodcutting. The woodcutting industry is, with mining, as old as

the early date of Spanish dominion. Although millions of feet have been cut and exported, and other millions left after cutting to decay, there still remain vast forests in which mahogany, cedar, and other rare cabinet woods may be found in abundance.

Soap and candles.-During the past year a resident of Tegucigalpa has built an excellent factory and has installed the latest machinery for the manufacture of candles and soap. He has attached a small sawmill to cut timber for use in his further building extensions and to saw lumber for use as boxes in which to pack his manufactured articles.

Another manufacturer has erected a large sawmill to supply the demand for building material and lumber in Tegucigalpa and the vicinity. The mill has a capacity for cutting some 4,000 feet daily.

The machinery for both these enterprises was purchased in and brought from the United States.

CHAPTER IX.

COMMERCE; DOMESTIC AND FOREIGN STATISTICAL DATA; CUSTOMS TARIFF; STAMP AND INTERNAL TAX LAWS.

COMMERCE.

Honduras is far from having attained a prominence in commerce and industries to which, it would seem by her natural resources and splendid climate, she would be entitled. In these natural resources one of the richest countries of Central America, she yet stands to-day one of the poorest. This condition is due to a variety of causes, not least among which should be noted (1) the rapacity of foreign promoters, especially Americans, who have obtained concessions merely for financial speculation, and are humbugging both the native and the American investor, and (2) the consequent distrust with which the Government authorities view all who now seek concessions in good faith. It must not be supposed that these concessions may be had for the asking now; they are as difficult to obtain, as onerous in conditions imposed, and as expensive as any franchises in the United States. The Government appears to hold that in consideration for its grants it must be assured of some return, either in the form of a money forfeit, monopoly fee, or the development of the property granted.

The foreign commerce of Honduras reached its climax in the trade of 1901-2. During the fiscal year following, neither the imports nor the exports approached the figures of the preceding year. In 1901-2 the country experienced its greatest prosperity and advance, enjoying the advantages of settled trade conditions, of security abroad and at home, and an era of unprecedented domestic industrial activity.

During 1901-2 the import and export trade of Honduras was largely in favor of the United States. The importations from the United States represented 60 per cent of the total importations, while the exportations of over 66 per cent went to our ports. Great Britain received the greater portion, in value, of metal exports; Cuba and Mexico received the larger number of cattle. The exports to the United States were, for the most part, fruits and conoanuts, sent chiefly from the ports on the north coast. The United States bought 1,235,624 pesos more in trade than Honduras purchased from her.

Tariff.-Commerce in Honduras is governed by a tariff for revenue only. In addition to the customs duties there must be paid municipal imposts, or an octroi, at several of the inland towns on merchandise entering them from abroad.

Values of imports and exports, 1902-3.—In the first half of the last fiscal year (August, 1902, to July, 1903) the United States used Hon