Uruguay

Finance.

Of the national revenue nearly one-third is derived from customs duties, taxes being levied also on real estate, licences, tobacco, stamped paper and in other ways. Nearly half the expenditure goes to meet debt charges, while Government, educa tion, internal development, and defence absorb most of the re mainder. The public debt of Uruguay was 129,774,119 pesos in 1900 and 176,693,631 pesos in 1924, a small relative increase. The budget estimates for 1924-25 were: revenue, 45,182,207 pesos and expenditure, 45,120,052 pesos. Revenue for 1923-24 was 44,963,678 pesos and expenditure 43,033,998 pesos. Customs re ceipts in 1924 were 14.573,890 pesos.

The Bank of the Republic was established in 1896 with a nomi nal capital of 12,000,000 pesos and in 1899 it received the right to issue further shares amounting to 5,000,000 pesos. Its note issue (for which it has an exclusive right) may not exceed the value of half the subscribed capital. Besides a number of local banks, branches of German, Spanish, French and several British banks are established in Montevideo.

There is no Uruguayan gold coin in circulation, but the theo retical monetary unit is the gold peso national, weighing 1.697 grammes, .917 fine. The silver peso weighs 25 g., .900 fine. A half, fifth and tenth of a peso are coined in silver.

Army.

There is a standing army with a peace strength of about 7.000 officers and men. Service is voluntary. In addition to this there is compulsory service in the National Guard (a) in the first class, consisting of men between 17 and 3o years of age, liable for service with the standing army, and numbering some 15,000; (b) in the second class, for departmental service only, except in so far as it may be drawn upon to make up losses in the active units in time of war, consisting of men from 3o to 45 years of age, and (c) in the third class, for local garrison duty, consisting of men between 19 and 45 years old. The army and guard are well equipped with modern arms.

History.

In 1512 Juan Diaz de Solis entered the Paranaguazu or sea-like estuary of the Plata and landed about 7o m. east of the present city of Montevideo. Uruguay at that time was in habited by Indians, of whom the dominant tribe was called Charrua, a people described as physically strong and well-formed, and endowed with a natural nobility of character.

Solis, on his second visit, 1515-16, was slain by the Charrilas in Colonia. Eleven years later Ramon, the lieutenant of Sebastian Cabot, was defeated by the same tribe. In 1603 they destroyed,

in a pitched battle, a veteran force of Spaniards under Saavedra. During the next 5o years three unsuccessful attempts were made by the Spaniards to subdue this courageous people. The real conquest of Uruguay was begun under Philip III. by the Jesuit missions. It was gradually consummated by the military and commercial settlements of the Portuguese, and subsequently by the Spaniards, who established themselves formally in Montevideo under Gov. Zavala of Buenos Aires in 1726, and demolished the rival Portuguese settlement in Colonia in 1777. From i75o Monte video enjoyed a provincial government independent of that of Buenos Aires. The colonial history consists chiefly of a struggle between Spain and Portugal for the Banda Oriental del Uruguay which lay on the border between their possessions. The American Revolutionary War, the French Revolution and the British in vasions of Montevideo and Buenos Aires (1806-07), under Gens. Auchmuty and John Whitelocke, all contributed to the extinction of the Spanish power on the Rio de la Plata. During the War for Independence, Montevideo was taken in 1814 by the Buenos Aires general Alvear (see further MONTEVIDEO). The long struggle for dominion in Uruguay between Brazil and the revolutionary Government of Buenos Aires was concluded in 1828, through the mediation of Great Britain, Uruguay being declared a free and independent State. The republic was formally constituted in 1830. Subsequently Juan Manuel Rosas, dictator of Buenos Aires, interfered in the intestine quarrels of Uruguay; and Montevideo was beseiged by his forces, allied with the native partisans of Gen. Oribe, for nine years (1843-52).

After the declaration of independence the history of Uruguay became a record of intrigues, financial ruin, and political folly and crime. The two great political factors for generations have been the Colorados and the Blancos. So far as political principles were concerned, there was small difference between them. Men were Colorados or Blancos largely by tradition and not from political conviction. The Colorados have held control for many years, and the attempts of the Blancos to oust them have caused a series of revolutions, the last of these being in 1910. The military element, moreover, has frequently conspired to elect a president amenable to its demands. The old Blancos and Colo rados are superseded by conservatives or progressives, the latter favouring advanced social legislation.