The climate of Sinaloa is good; in the upper regions excellent. The coast zone is hot during the dry season, and here, in places, the malaria found on the coast of both North and South America is encountered at times. The principal agricultural products are sugar and cotton, and these are followed by the numerous fruits, vegetables, fibres, timber, and other matters common to these rich zones, at their respective elevations, including coffee and the cocoanut trees. Cattle and horse-breeding flourishes under the favourable conditions the region affords for this industry. Wild game is freely encountered, as pheasants, quail, and other birds, deer, &c. The cost of living is low, the soil fertile, and labour cheap, conditions which seem to promise growing prosperity. The mineral resources include copper, gold, silver, and other metals. The remarkable resources of this favoured part of the country have largely remained fallow due to the lack of railways. No lines yet connect the state with the rest of the community. Recently, available passes over the Sierra which isolate the state from the railway system of the Republic, have been brought into notice, and capitalists, principally American, are engaged upon projects to build lines to the coast, traversing the state, among them being the Mexican Central Railway. The capital city of Sinaloa is Culiacan; and the principal that of Mazatlan, the handsome and flourishing seaport, which awaits the coming of a railway. Probably a busy future awaits the development of this state. The Territory of Tepic, formerly part of the State of Jalisco to the south, is the next of the Pacific littoral states. This small region was separated from Jalisco in 1884, on account of long rebellion against the Federal Government, and it remains as a Federal Territory, and not a state. Its coast-line is 155 miles long; its area is 10,950 square miles, and population 150,000. The climate is very hot on the coast zone and temperate in the hills. Several rivers and streams flow through it from the Sierra, some of which are navigable for short distances from its mouth. The region partakes much of the character of that to the north, already described, and of that of its parent state Jalisco, which follows. The most important agricultural product is sugar, followed by rice, maize, and coffee respectively. Mining--gold and silver--is an important industry, and numerous small native plants exist for ore-treatment. The lack of any railway communication, however, prevents the development of the resources of what is a promising territory. Various railway projects are under consideration, having as their terminus the port of San Blas, and connecting this and Tepic, the capital town, with the railway system of Mexico beyond the Sierras.