_Finance._--The revenues of the republic are derived from import and export duties, liquor, tobacco and stamp taxes, inheritance tax, salt, gunpowder and playing cards monopolies, consular charges, and sundry miscellaneous receipts, including those from posts, telegraphs and railways. Up to 1907 the customs duties were increased by surtaxes amounting at that time to 100%. The minister of finance proposed to abolish these surtaxes and double all the rates of duties involved. On exports, however, all the duties were to be abolished except those on cacao, coffee, hides, rubber, tagua (ivory nuts), hat fibre, hammock fibre and tobacco. For 1907 the revenues were £1,424,770 and the expenditures £1,383,122. On the 10th of October 1906, when the report of the provisional government created by the revolution of the preceding January presented its financial report to a national assembly, the total obligations of the country were stated to be:-- Sucrés. Railway bonds, 12,282,000 sucrés gold at 107% premium 25,423,740 Banco del Ecuador, advances 3,000,000 Banco Comercial y Agrocola, idem 2,400,000 Internal debt 739,575 Condor bonds 757,000 French Finance Corporation 887,000 --------- Total 33,207,315 In £ sterling at 10 sucrés per £ 3,320,731 The foreign debt of the republic, which in 1898 stood at £693,160 in bonds, was assumed by the Guayaquil & Quito Railway Co. under contracts of 1897, 1898, 1899 and 1900, the government guaranteeing interest on the sum of £2,520,000 railway mortgage bonds for 33 years and recognizing the external debt at 35% of its face value. This debt originated in 1830, when Ecuador seceded from the Colombian confederacy and was charged with 21½% of the indebtedness of the three states. In 1855 the amount was fixed at £1,824,000, and in 1892 it was converted into a new consolidated debt of £750,000. Payments of interest and amortization had been very irregular, and its transfer to a foreign company as the price of a railway concession put an end to a transaction which had been a serious discredit to the country. The amount outstanding on the 31st of December 1907 was 10,808,000 sucrés (£1,080,800). It should be said that the difficulties in regard to this debt arose from a feeling in Ecuador that the part assigned to it in 1830 was much too large, and that it was contracted almost wholly for the benefit of the two northern republics, Colombia and Venezuela.