resemble those of Mexico. The Spanish-speaking people live
in the table-lands, where the climate is healthful. The coast-plain of
the Atlantic is forest-covered and practically uninhabited save by
Indians. Guatemala is the most important state. A railway from _Puerto
Barrios_, its Atlantic port, through its capital, _Guatemala_, to its
Pacific port, _San Jose_, is nearly completed. British Honduras is a
British territory acquired mainly for the mahogany product, which is
shipped from _Belize_. Honduras has great resources in mines, cultivable
lands, and forests, but these are undeveloped. Salvador is the smallest
but most progressive state.

[Illustration: ROUTE OF PROPOSED NICARAGUA CANAL.]

Nicaragua is politically of importance on account of the possibilities
of an interoceanic canal. A treaty for this canal, involving both
Nicaragua and Great Britain, has already been signed by the powers
interested. Many engineers regard the Nicaragua as preferable to that of
the Panama canal. The shorter distance between New York and the Pacific
ports of the United States, a saving of about four hundred miles, is in
its favor. The longer distance of transit and the dangers of navigating
Lake Nicaragua are against it. Costa Rica is favorably situated for
commerce, but its resources are not developed. A railway from _Puerto
Limon_ is nearly completed to _Puenta Arenas_, an excellent harbor on
the Pacific side.

Coffee, hides, mahogany, and fruit are the only products of importance
that connect these states with the rest of the world. About half the
trade goes to the United States. The Germans and English supply a
considerable part of the textiles and manufactured articles. The coffee
of Costa Rica is a very superior product. Much of the mahogany and
forest products goes to Great Britain. Fruit-steamers call at the
Atlantic ports for bananas, which are sold in New Orleans and the
Atlantic cities.

=The West Indies.=--The climate and productions of these islands are
tropical in character. Sugar, fruit, coffee, tobacco, and cacao are the
leading products. From the stand-point of the planter, the sugar
industry has been a history of misfortunes. The abolition of slavery
ruined the industry in many of the islands belonging to Great Britain.
The competition of the beet-sugar made in Europe drove the Cubans into
insurrection on account of the excessive taxes levied by the Spaniards,
and ended in the Spanish-American War.

The fruit-c