The currency of Guatemala is silver, with the exception of about $50,000 of Government paper, and, like the silver currency of the United States, is worth only about seventy per cent of its face in gold; but, unlike the Northern Republic, Guatemala has not the power to float her debased coin, and the standard is therefore American gold. To meet its needs the Government sometimes mortgages to money-lenders its revenues in part, or even puts a custom-house in pawn; and cases have occurred where its subsidies have been suspended by arbitrary decree for a year, or even longer. Hence the unwillingness to embark in any enterprise that is largely dependent on Government aid. Even the mail-subsidies when paid are paid with orders on the customs. This, together with the very heavy import duties, certainly checks the investment of foreign capital; though to those within the country, and informed as to methods, the duties are much lightened by purchasing Government bonds at fifty per cent and paying them for duties at par. By this and similar practices, which I do not think it best to describe, large mercantile establishments derive great profit at the expense of the revenues. To meet the needs of commerce there are but three banks; two, “El Banco Internacional” and “El Banco Columbiano,” are in the City of Guatemala, while the third is in Quezaltenango. These have between them a capital of perhaps $5,000,000, and they do the business of banks of circulation, deposit, and exchange. The usual rate on deposits subject to sight drafts is three per cent per annum, and on current accounts and discounts twelve per cent; while they pay their stockholders from twelve per cent to twenty per cent in dividends. The Banco Internacional has called in but seventy per cent of its capital stock. These banks date only from 1875, and their notes are hardly current outside the larger cities. Many of the principal mercantile houses do a larger banking business, and hold extensive private deposits. Of large corporations Guatemala has but few. That of the Piers (Compañia de los Muelles de San José y Champerico) has a capital of $250,000; its profits are said to be immense, as it holds the monopoly of all the landing facilities on the Pacific coast. The railroads between Guatemala and San José, and between Champerico and Retalhuleu, are capitalized at about $5,000,000. The proposed railroad from Puerto Barrios (Santo Tomas) to the capital, at present mostly owned by natives, will, it is supposed, cost from twelve to fifteen millions. The street railway in Guatemala has a capital of $200,000.