The external debt of Salvador is (1927) £1,946,586, in English pounds and about $6,000,000 in U.S. dollars, all under the 1923 gold bond issue, which was one of the first of the modern issues of Latin American securities. A portion of the debt bears 8% (the remainder, which replaced outstanding obligations, draws 6%), in spite of the fact that the interest and amortization are guaranteed by a fiscal agent, whose issue of stamps must be used for payment of most of all customs duties. Since 1923, when the loan was floated, Salvador has enjoyed a surplus of revenues, when prior to that time there was almost invariably a deficit. The figures since 1923 are as follows, in American dollars :— The unit of currency is the colon, established on July 16, 192o, at a value of 5o cents, U.S. currency. The colon is divided into Ioo centavos, and subsidiary silver and nickel coins are issued. U.S. currency is legal tender for all debts. There are three banks authorized to issue paper currency, the Banco Salvadorefio, the Banco Occidental and the Banco Agricola Comercial. On Dec. 31, 1926, there were 15,904,868 colones of paper in circulation, secured with a gold reserve of 65% of their face value.
The present Constitution of Salvador was promulgated Aug. 13, 1886, and provides for the three divisions of government. The legislative function is vested in a congress of a single chamber, which meets annually between Feb. I and 15, for 4o sessions; other sessions may be called for special purposes by the president. The chamber has 42 members, 3 from each department elected by popular vote for one-year terms. Voting is obligatory on every male citizen of 18 years or over. The president and vice president are elected by popular vote for four year terms, and may not succeed themselves for the ensuing f our year term. The president of Salvador is Dr. Pio Romero Bosque, whose term expires on March I, 1931. The president has four cabinet officers, who are required to attend meetings of congress and to answer inquiries from the deputies. The judiciary is com posed of a supreme court, one court of third instance, and several of first and second instance. The supreme court is composed of three judges of third instance, and four of second instance. Salva
dor is divided into 14 departments presided over by governors appointed by the president for terms of four years.
In 1926 there were 849 public schools with 1,555 teachers and 51,933 enrolled pupils, ten travel ling teachers serving rural schools. There were also 37 private schools and 61 municipal schools. In secondary education there were the National Institute and 16 private lyceums, two normal schools and the National university with faculties of arts and the professions. The Roman Catholic religion prevails, although there is freedom of worship. The church is headed by an archbishop in San Salvador and bishops in Santa Ana and San Miguel.
Salvador was conquered by Pedro de Alvarado, Cortes' doughty lieutenant, who invaded the present republic in 1524 and early the next year met and defeated the Indians and captured their capital, Cuscatlan, placing the rule of the new region under the captain-generalcy of Guatemala. Salvador de clared her independence from Spain with the other countries of Central America, on Sept. 15, 1821, and her history was that of Central America during the early period (see CENTRAL AMER icA). Her independent career has been marked by numerous revo lutions and wars against other Central American countries (see CENTRAL AMERICA). Through the World War, apparently follow ing Mexico's example, she remained neutral, and later requested the United States to explain a reference in the Versailles Treaty to the Monroe Doctrine.
What was hailed as her first free election in almost twenty years was held in Jan. 1931 when Arturo Araujo was chosen presi dent. Economic distress, however, combined with the general surge of reform spirit throughout Latin America led in December to the government's overthrow and the elevation of Gen. Maxi miliano Hernandez Martinez to the presidency. For several years this administration was embarrassed by a refusal of its neigh bours and the United States (pursuant of a treaty of 1923) to recognize it. Martinez, nevertheless, managed to stay in office until 1934, when recognition was accorded. In 1935 he was re elected without serious opposition for four more years. (W. Tiro.)