1939: El Salvador

On Jan. 4, the Constitutional Congress extended the term of President Maximiliano Hernandez Martinez for six years. This is the third instance of its kind recently in Central America. By similar technique Guatemala, Honduras and Nicaragua likewise have 'constitutional dictators' at their head. Internal disorders in December 1938 had led to the cancellation of presidential elections scheduled for January 1939. The army, National Guard and police were mobilized early in January to suppress a threatened revolt promoted by former army officers and civilians opposed to the continuance of the Martinez government. On Jan. 20, the Constitutional Congress abrogated the Constitution of 1886 and approved a new one, which among other provisions, empowers the President to appoint mayors, who were formerly elective officers, for the entire country.

There are strong German and Italian colonies in El Salvador, where the Germans are rich coffee and sugar planters and business men. Nazi influence, therefore, has been strong. The German Consul General is also manager of the Mortgage Bank; a German heads the Salvadorean military academy and is an official instructor of the army. But, in spite of strong totalitarian influence, the Reich stands second to the United States in trade with the Republic. The United States is the principal purchaser of Salvadorean coffee, which represents about 90 per cent of the country's exports. In 1938 Germany took only 11 per cent of the coffee exported, the United States about 65 per cent.

The ordinary budget for 1938-39 estimated revenues at 17,354,000 colones and expenditures at 17,325,000. The chief economy in expenditures is in the Public Credit item, which reflects El Salvador's temporary suspension of service on the foreign debt. The 1939 budget foresees a revenue reduction of about 2,000,000 colones, due to the sharp decline in coffee prices. With the prospect of a large coffee harvest in the 1938-39 season and slightly higher coffee prices, the economic outlook this past year improved somewhat.