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1130 general, proposed that Britain and Australasia should join in forming a Far Eastern fleet; that New Zealand should contrib- ute, man and control a unit to be called the " New Zealand Division of the Royal Navy "; and that the whole fleet should pass into the control of the Admiralty in time of war. The fact that each party welcomed this solution as a finding in its favour was a sufficient proof of its wisdom, but pending joint Imperial action on the subject the country marked time. Meanwhile it discontinued the naval subsidy and expected to pay 260,000 for the upkeep of its only vessels, the light cruiser " Chatham " and the training-ship " Philomel," during the year 1920-1.

There was not the slightest drift towards separation from the Empire or even towards the quasi-independence which de- sires a foreign policy of its own under the same Crown. The admission of the Dominions to the League of Nations excited no elation in New Zealand, and the revolution which it was sup- posed to have worked in their constitutional relations to the United Kingdom was generally regarded as a step in the wrong direction. Mr. Massey's statement in the House that, if he thought the League of Nations would weaken the Imperial con- nexion in any way, he would prefer to see the Dominion out of it, squared exactly with public sentiment. New Zealand con- sidered that one foreign policy was enough for the Empire, and, while hoping that some kind of representative control might be ultimately evolved, it would much prefer the control of the British Foreign Office, informed by the fullest consulta- tion practicable, to any division of authority.

Incidentally the difference of attitude which the issue of the Pacific Mandates revealed, supplied the Dominion with another argument against federation with Australia. The New Zealand Government was advised by its law officers from the first that it should receive its mandate for Western Samoa from the Imperial Government, and the advice was in accordance with the sentiment of the country. The more assertive nationalism of Australia claimed the right to deal direct with the League of Nations. As there was nothing to suggest that this divergence of ideals and tendencies was decreasing or likely to decrease, John Ballance's declaration in 1891 that " the whole weight of the argument is against New Zealand entering into any federa- tion except a federation with the Mother Country," seemed in 1921 still to be nearer the mark than the prophecy in 1912 of Mr. Andrew Fisher, then Prime Minister of Australia, that " New Zealand will probably be in the Federation within twenty years." But the problem of putting the Imperial partnership upon a business footing by a federal scheme or otherwise received no close and consecutive attention. Neither the project of an Empire Parliament, which Sir Joseph Ward submitted to the Imperial Conference of 1911, nor Mr. Massey's advocacy of an Imperial Executive in the New Zealand Parliament in 1921 (March 16), was the outcome of careful thought, public discus- sion or popular demand; nor did either of these proposals con- tribute anything to the education of public opinion.

REFERENCES. F. W. Wright and W. P. Reeves, New Zealand (1908) ; Robert McNab, Historical Records of New Zealand, vol. i. (1770-1839) 1908; vol. ii. (1642-1842) 1914; Murihiku: A history of the South Island of New Zealand and the islands adjacent and lying to the south, from 1642 to 1835 (1909) ; G. H. Scholefield, with an introduction by W. P. Reeves, New Zealand in Evolution (1909); J. Cowan, The Maoris of New Zealand (1910); James Park, The Geology of New Zealand (1910; new ed. 1919); L. Cockayne, New Zealand Plants and Their Stories (1910); J. E. Le Rossignol and W. Downie Stewart, State Socialism in New Zealand (1911); Sir Robert Stout and J. Logan Stout, New Zealand (1911); " New Zealand A Review of 21 Years (1891-1912)," The Times, May 24 1913; " The Lore of the Whare Wananga," Memoirs of Polynesian Society (3rd vol. on Maori religion, myths, cosmogony, etc., 1913); J. Hight and H. D. Bamford, The Constitutional History and Law of New Zealand (1914); Andr Siegfried, Democracy in New Zealand (Eng- lish translation, 1914); G. W. Russell, New Zealand To-Day (1919). (A. R. A.) NICARAGUA (see 19.642*). The estimated pop. in 1913 was 689,891 ; by Dec. 31 1917 it had risen to 746,000. In 1920 about 75% of the people lived in the western half of the country, where the inhabitants are predominantly white or native Indian. In the E. are large numbers of Sambos, Caribbean negroes and

Indians, and some Americans. Communication between the two coasts is difficult; passenger traffic usually goes by way of Costa Rica, and freight by way of the Panama Canal.

Social and Economic Conditions. There were in 1920 356 ele- mentary schools, ten secondary schools, and the three universities at Managua, Leon and Granada. Educational activity had been great since 1917. Until recently all public instruction was in the hands of the religious orders, and in 1920 two normal schools were still directed by the Church. The Jesuit school in Granada was built with state funds and received Government aid. The secondary schools were subsidized by the State, and instruction in the universi- ties was free. Special scholarships were established, by means of which students are sent to the United States for training in teach- ing and horticulture.

Agriculture has increased in recent years, but is retarded by labour shortage. In the E. bananas are the chief crop; coco-nuts and rice are also grown. Wheat grows in Nueva Segovia and tobacco in Masaya. In the W. coffee is the chief crop, sugar, cacao, corn, and beans also being raised. Tropical products excepted, most of the food for eastern Nicaragua comes from the United States. From the W. a little surplus food is exported. There are about 1,200,000 cattle. The coffee crop is usually about 22,500,000 pounds. In 1921 the coffee crisis was acute; the 1918-9 crop had sold well, and some advances were made on the 1919-20 crop in expectation of prices as high as $.30, but as the market fell those who had obtained advances of $.14 were fortunate. High duties in France limited the market to the United States. The 1920-1 crop was large, trading was light, the price being one-third the cost of production. The chief forest products are mahogany and cedar, with some production of dye woods and medicinal plants. Ameri- can and British interests are engaged in gold and silver mining. Copper and precious stones are also obtained. The only railway on the W. side is the Pacific line, 171 m. long, from Corinto to Leon, Managua, Granada and Diriamba, with short branches. There are a few private lines in the east. A New Orleans syndicate obtained a concession for loyears, beginning in 1918, to build from Bluefields to Lahone Grande. Americans hold 51 % of the stock in this enterprise and have escrow control of 49 %, which secures a loan of $1,060,000. In the spring of 1921 a loan was made of $9,000,- oop for constructing the Atlantic railway, repurchase of the Pacific railway and payment of the 1909 bonds. Work began on a line from Chinandega to Playa Grande and the Honduran frontier, which is to be part of the International Railways on the Honduras and Salvador boundaries.

Imports and exports in pounds sterling for five years were as follows:

1914

I9IS

1916

1917

1918

Imports. . Exports. .

826,865

91)1,010

631,843

913440

955,519 1,056,972

1,278,613 1,195.051

1,185,961 1,550,988

Customs receipts, 1918, were 199,629; 1919, 294,961. Imports in 1918 of cotton goods were worth $1,580,037; iron and steel, $79,99; wheat flour, $356,705. Exports consisted of coffee, tim- ber, bananas, hides and sugar. Trade with the United States amounted to $4,630,457 in imports and $6,412,921 in exports. The remainder of the trade was distributed among England, France, Chile, Panama, Mexico and Canada.

The revenues and expenditures for four years in pounds sterling were :

1915-6

1916-7

1917-8

1918-9

Revenues

4.18 oio

4.6O 4.7Q

480 321

en X =.A7

Expenditures

357,883

396,159

351,553

424,167

The debt on Oct. 20 1917 was $21,390,521 ; it had been reduced by Jan. 1919, through amortizations and negotiations, to $10,238,- 589. In Jan. 1920 it was $9,884,023. The internal debt in Sept. 1916 was 10,000,000 cordobas (nominally equivalent to U.S. dol- lars and fluctuating very little). In 1917 the bonded debts were reestablished, deferred interest was provided for, the floating debt settled, and the annual budget limited. Surplus revenues which have been over $600,000 have been applied equally to the foreign debt, the floating debt and public improvements.

History. Jose Madriz, elected president in 1909, failed to win recognition from the United States. He seemed for a time to be about to defeat his enemies in the field, but his unsuccessful expedition against Bluefields, during which the U.S. marines intervened to protect American property, resulted in the success of the revolutionists. Madriz left Managua on Aug. 20 1910, the forces under Juan M. Estrada entering it next day. Estrada, though of the artisan class, was backed by the conservative fami- lies of Granada as well as by some liberals. His Government was soon recognized by the United States, relations being resumed in January. The public treasury was immediately emptied to pay revolutionary debts. By the autumn of 1911 some 25,000,000 pesos of depreciated paper currency had been circulated, much


 * These figures indicate the volume and page number of the previous article.