"It must be borne in mind that the importers of this Republic are for the greater part Germans, and their interest and inclination lead them to trade with the fatherland. England also is preferred over the United States, possibly because Guatemala merchants can more easily identify themselves in England and get better credits. American goods therefore are imported only when their quality places them so far ahead of the European article that the merchant is almost compelled to have them in stock. The American manufacturers should become better acquainted with this trade, ascertain who are worthy of credit, and extend it. The long voyage and delay _en route_ compel the importer to ask long credits. It is sometimes two or three months after shipments destined for this city leave the manufacturer before they can be displayed in the store of the importer. The custom duty on about all cotton goods is collected on gross weight of the package. Great care should be taken with invoices for custom-house purposes; the goods must be described in exact phraseology of Guatemala custom tariff." CHAPTER V. CLIMATE AND IMMIGRATION. The population of Guatemala according to the general census of the Republic taken at the beginning of 1904 was 1,842,000. This was the actual enumeration, but as there were many cases in which a complete account was not possible the inhabitants probably number 2,000,000. Of those enumerated by races 750,615 were Ladinos, and 1,091,519 were of the aboriginal race. The Ladinos are the descendants of the white race and of a mixture of European and Indian. The Indian population is principally engaged in farming and in small commercial enterprises in the interior. The Ladinos are much more energetic. The natives of the high and cold regions are the most vigorous. For many years it has been the aim of the Guatemalan government to attract foreign immigration. Under President Estrada Cabrera's administration systematic measures for this purpose have been taken and the policy of encouraging immigrants and colonists, especially from the United States, has become a settled one. Practically one-half the fertile territory is yet uncultivated for want of tenants and there are many agricultural industries which require a very small amount of capital while they assure independence to those who follow them. The first question asked is whether the natives of the temperate regions, Europeans and North Americans, can live and work in the climate. The answer is that there are large areas suitable for them where they may engage in coffee-growing, dairying, stock-raising and similar occupations. The districts known as the Highlands or "Los Altos" are at an average elevation of 5,000 feet and comprise some of the most inviting sections of Guatemala. The uplands include Quezaltenango, Solola, Quiche, Huehuetenango, Totonicapam, and San Marcos. THE THREE ZONES.