Chapter I: Preface

My purpose in this work is to consider and describe the effect of the Panama Canal on the West Coast countries of South America from the year 1905. At this period its construction by the United States may be said to have begun. If my own deep conviction that this influence makes powerfully for their industrial development and their political stability be an illusion, the pages which follow may afford the disbelievers grounds for pointing out wrong premises or false conclusions. “We doubt” long has been the dogma of the North American and the European in everything relating to the permanency of progress in the Spanish-American Republics. “I believe” is yet only the creed of the individual. A huge material fact obtruding itself may secure a listening ear from the doubters. The Canal obtrudes.

The severely practical Northern mind finds itself in a brain-fog with reference to the Southern Continent. Speculative reasoning regarding new forces of civilization does not appeal to it. It wants the concrete circumstances. Now the Canal is not an abstraction. The industrial and commercial energies which it wakens are not abstractions. The interoceanic waterway is a national undertaking, but it shows the way to individual enterprise. More than the gates of chance are opened to American youth. They are the gates of opportunity. Consequently the need of knowledge.

The number of recent books relating to the history of South America seems to indicate a demand for this knowledge in its primary form. They open the path for a volume which may be limited more strictly to industrial, fiscal, and political information. For that reason, while not overlooking the historical element in the institutions and governmental systems, I have not thought it necessary to consider them chronologically from the colonial epoch or even from the era of independence.

The effort to divorce economic and social forces from places and peoples in order to analyze a principle usually is so barren that I have not attempted it. Places have their significance, and people are the human material. Customs and institutions are only understood properly in their environment. So many excellent descriptive works have been written about South America that I have sought to subordinate these features; yet since the information applies to localities something about them could not entirely be omitted. Moreover, I have that abounding faith which leads me to look forward to the time when the engineering marvels of the Canal construction may prove enough of a magnet to draw thither the travelled American who would know what his country is doing and who, once on the Isthmus, will be likely to continue down the West Coast with a view to determining the relative attractions of the noble Andes and the Alps. Yet I have made no attempt to preserve the form of continuous narrative. The treatment of the subject does not demand it.

To South American friends who may be offended at the frankness or the bluntness of the views expressed, a word may be communicated. The confidences extended me while on an official mission widened my own vision of the aspirations of their public men. At the same time they conveyed the idea that the economic evolution to which all look forward will come more swiftly if reactionary tendencies are combated more openly and aggressively. Opinions on the policy of the United States being uttered with freedom, I have not thought it necessary to adopt the apologetic attitude in regard to other Republics. In seeking the constructive elements in the national life and character of the South American countries, it has been with the undisguised hope that the contact and the impact of North American character may be a reciprocal influence.

Acknowledgment of material for the general map, which amplifies that of the permanent Pan-American Railway Committee, is due its chairman, Hon. H. G. Davis, whose faith in the future relation of the United States to the other American countries is an example to the generation which will share the benefits both of the Canal and of railroad construction.

C. M. P.

Washington, D. C.
January, 1906.

CONTENTS

CHAPTER I

ECONOMIC EFFECT OF THE CANAL Page

Philosophic Spanish-American View--Henry Clay’s
Mistaken Population Prophecy--The Andes Not a Canal
Limitation--Intercontinental Railway Spurs--Argentina and
the Amazon as Feeders--Centres of Cereal Production--Crude
Rubber--Atlantic and Pacific Traffic--Growth of West
Coast Commerce--North and South Trade-wave--Distances via
Panama, Cape Horn, and the Straits of Magellan--Waterway
Tolls and Coal Consumption--Ecuador and Peru--Bolivia and
Chile--Isthmian Railroad Rates--Value of United States
Sanitary Authority--American Element in New Industrial
Life 1

CHAPTER II

TRAVEL HINTS

Adopting Local Customs--Value of the Spanish
Language--Knowledge of People Obtained through Their
Speech--English in Trade--Serviceable Clothing in
Different Climates--Moderation in Diet--Coffee at its True
Worth--Wines and Mineral Waters--Native Dishes--Tropical
Fruits--_Aguacate_ and _Cheremoya_ Palatal Luxuries--Hotels
and Hotel-keepers--Baggage Afloat and Ashore--Outfits for
the Andes: Food and Animals--West Coast Quarantines--Money
Mediums--The Common Maladies and How to Treat Them 21

CHAPTER III

THE ISTHMUS OF PANAMA

Canal Entrance--Colon in Architectural
Transformation--Unchanging Climate--Historic Waterway
Routes--Columbus and the Early Explorers--Darien
and San Blas--East and West Directions--Life along
the Railway--Chagres River and Culebra Cut--Three
Panamas--Pacific Mouth of the Canal--Functions of
the Republic--Natural Resources--Agriculture and
Timber--Road-building--United States Authority on the
Zone--Labor and Laborers--Misleading Comparisons with
Cuba--The First Year’s Experience 37

CHAPTER IV

A GLIMPSE OF ECUADOR

Tranquil Ship Life--Dissolving View of Panama Bay--The
Comforting Antarctic Current--Seeking Cotopaxi and
Chimborazo--Up the Guayas River--Activity in Guayaquil
Harbor--Old and New Town--Shipping via the Isthmus and
Cape Horn--Chocolate and Rubber Exports--Railway toward
Quito--A Charming Capital--Cuenca’s Industries--Cereals
in the Inter-Andine Region--Forest District--Minerals
in the South--Population--Galapagos Islands--Political
Equilibrium--National Finances 57

CHAPTER V

PERUVIAN SHORE TOWNS

Pizarro’s Landing-place at Tumbez--Last Sight of the
Green Coast--Paita’s Spacious Bay--Lively Harbor
Scenes--An Interesting and Sandy Town--Its Climatic
and Other Legends--Future Amazon Gateway--Sugar and
Rice Ports--Eten and Pacasmayo--Transcontinental
Trail--Cajamarca--Chimbote’s Naval Advantages--Supe’s
Attractions--Ancon’s Historic Treaty--Callao’s
Excellent Harbor--Importance of the Shipping--Customs
Collections--Pisco’s Varied Products--Rough Seas at
Mollendo--Bolivian and Peruvian Commerce for the Canal 73

CHAPTER VI

LIMA AND THE CORDILLERAS

Pleasing Historic Memories--Moorish Churches and Andalusian
Art--Pizarro’s Remains in the Cathedral--Transmitted
Incidents of the Earthquake--The Palace, or Government
Building--General Castilla’s Humor--Decay of the
Bull-fight--Cultured Society of the Capital--Foreign
Element--San Francisco Monastery--Municipal
Progress--Chamber of Commerce--A Trip up the Famous
Oroya Railway--Masterwork of Henry Meiggs--Heights and
Distances--Little Hell--The Great Galera Tunnel--Around
Oroya--Railroad to Cerro de Pasco Mines--American
Enterprise in the Heart of the Andes 89

CHAPTER VII

AREQUIPA AND LAKE TITICACA

Capital of Southern Peru--Through the Desert to the
Coast--Crescent Sand-hills--A Mirage--Down the
_Cañon_--Quilca as a Haven of Unrest--Arequipa
Again--Religious Institutions--Prevalence of
Indian Race--Wool and Other Industries--Harvard
Observatory--Railroading over Volcanic Ranges--Mountain
Sickness at High Crossing--Branch Line toward
Cuzco--Inambari Rubber Regions--Puno on the Lake Shore 109

CHAPTER VIII

THE REGIONS AND THEIR RESOURCES

Topography a Key to Economic Resources--Coast, Sierra,
and Montaña--Cotton in the Coast Zone--Piura’s High
Quality--Lima and Pisco Product--Prices--Increase
Probable--Sugar-cane as a Staple--Probability of
Growth--Rice as an Export and an Import--Irrigation
Prospects--Mines in the Sierra--Geographical Distribution
of the Deposits--Live-stock on the High Plains--Rubber
in the Forest Region--Iquitos on the Amazon a Smart
Port--Government Regulations for the Gum Industry 123

CHAPTER IX

WATERWAYS AND RAILWAYS

Importance of River System--Existing Lines of
Railroads--Pan-American Links--Lease of State Roads
to Peruvian Corporation of London--Unfulfilled
Stipulations--Law for Guaranty of Capital Invested in New
Enterprises--Routes from Amazon to the Pacific--National
Policy for Their Construction--Central Highway, Callao to
Iquitos--The Pichis--Railroad and Navigation--Surveys in
Northern Peru--Comparative Distances--Experiences with
First Projects--Future Building Contemporaneous with
Panama Canal 137

CHAPTER X

THE PEOPLE AND THEIR INCREASE

Density of Population in Time of the Incas--Three Million
Inhabitants Now Probable--Census of 1876--Interior
Country Not Sparsely Populated--Aboriginal Indian
Race and Mixed Blood--Fascinating History of the
Quichuas--Tribal Customs--Superstition--Negroes
and Chinese Coolies--Immigration Movements of the
Future--Wages--European Colonization--Cause of Chanchamayo
Valley Failure--Climatic and Other Conditions Favorable--An
Enthusiast’s Faith 151

CHAPTER XI

PERU’S GROWING STABILITY

Seeds of Revolution Running Out--Educated Classes Not the
Sole Conservative Force--President Candamo’s Peacemaking
Administration--Crisis Precipitated by his Death--Triumph
of Civil Party in the Choice of his Successor--President
Pardo’s Liberal and Progressive Policies--Growth in
Popular Institutions--Form of Peruvian Constitution
and Government--Attitude of the Church--Rights of
Foreigners--Sources of Revenue--Stubborn Adherence to
Gold Standard--Interoceanic Canal’s Aid in the National
Development 164

CHAPTER XII

ALONG COAST TO MAGELLAN STRAITS

Arica, the Emerald Gem of the West Coast--Memorable
Earthquake History--A Future Emporium of Commerce for
the Canal--Iquique the Nitrate Port--Value of the
Trade--Antofagasta’s Copper Exports--Caldera and the
Trans-Andine Railway to Argentina--Valparaiso’s Preëminence
among Pacific Ports--Extensive Shipping and Execrable
Harbor--Plans for Improvement--No Fear of Loss from the
Interoceanic Waterway--Coal and Copper at Lota--Concepcion
and Other Towns--Rough Passage into the Straits--Cape
Pillar--Punta Arenas, the Southernmost Town of the
World--Trade and Future 180

CHAPTER XIII

LIFE IN THE CHILEAN CAPITAL

Railway along Aconcagua River Valley--Project of Wheelright,
the Yankee--Santiago’s Craggy Height of Santa Lucia--A
Walk along the Alameda--Historic and Other Statues--The
Capital a Fanlike City--Public Edifices--Dwellings of
the Poor--Impression of the People at the Celebration
of Corpus Christi--Some Notes on the Climate--Habits
and Customs--“The Morning for Sleep”--Independence of
Chilean Women--Sunday for Society--Fondness for Athletic
Sports--Newspapers an Institution of the Country 201

CHAPTER XIV

NITRATE OF SODA AN ALADDIN’S LAMP

Extensive Use of Nitrates as Fertilizers--Enormous
Contributions to Chilean Revenues--_Résumé_ of
Exportations--Description of the Industry--How the
Deposits Lie--Iodine a By-product--Stock of Saltpetre in
Reserve--The Trust and Production--Estimates of Ultimate
Exhaustion--A Third of a Century More of Prosperous
Existence--Shipments Not Affected by Panama Canal--Copper
a Source of Wealth--Output in Northern Districts--Further
Development--Coal--Silver Mines Productive in the
Past--Prospect of Future Exploitation 217

CHAPTER XV

CHILE’S UNIQUE POLITICAL HISTORY

National Life a Growth--Anarchy after Independence--Presidents
Prieto, Bulnes, Montt, Perez--Constitution of 1833--Liberal
Modifications--The Governing Groups--Civil War under
President Balmaceda--His Tragic End--Triumph of his
Policies--Political System of To-day--Government by the
One Hundred Families--Relative Power of the Executive and
the Congress--Election Methods Illustrated--Ecclesiastical
Tendencies--Proposed Parliamentary Reforms--Ministerial
Crises--Party Control 232

CHAPTER XVI

PALPITATING SOCIAL QUESTIONS

Existence of the Roto Discovered--Mob Rule in
Valparaiso--Indian and Caucasian Race Mixture--Disquieting
Social Phenomena--Grievances against the
Church--Transition to the Proletariat--Lack of Army and
Navy Opportunity--Not Unthrifty as a Class--Showings of
Santiago Savings Bank--Excessive Mortality--Need of State
Sanitation--Discussion of Economic Relation--Changes in
National Tendencies--Industrial Policies to Placate the
Roto 248

CHAPTER XVII

CHILE’S INDUSTRIAL FUTURE

Agricultural Possibilities of the Central Valley--Its
Extent--Wheat for Export--Timber Lands of the South--Wool
in the Magellan Territory--Grape Culture--Mills
and Factories--Public Works Policy--Longitudinal
and Other Railway Lines--Drawbacks in Government
Ownership--Trans-Andine Road--Higher Levels of Foreign
Commerce--Development of Shipping--Population--Experiments
in Colonization--Internal and External Debt--Gold
Redemption Fund--Final Word about the Nitrates 262

CHAPTER XVIII

WAYFARING IN BOLIVIA--THE ROYAL ANDES

Old Spanish Trail from Argentina--Customs Outpost at
Majo--Sublime Mountain View--Primitive Native
Life--Sunbeaten Limestone Hills--Vale of Santa
Rosa--Tupiza’s People and Their Pursuits--Ladies’
Fashions among the Indian Women--Across the Chichas
Cordilleras--Barren Vegetation--Experience with Siroche,
or Mountain Sickness--Personal Discomforts--Hard
Riding--Portugalete Pass--Alpacas and Llamas--Sierra of
San Vicente--Uyuni a Dark Ribbon on a White Plain--Mine
Enthusiasts--Foreign Consulates 278

CHAPTER XIX

WAYFARING IN BOLIVIA--THE CENTRAL PLATEAU

A Hill-broken Table-land--By Rail along the
Cordillera of the Friars--Challapata and Lake
Poöpo--Smelters--Spanish Ear-marks in Oruro--By Stage
to La Paz--Fellow-passengers--Misadventures--Indian
Tombs at Caracollo--Sicasica a High-up Town, 14,000
Feet--Meeting-place of Quichuas and Aymarás--First Sight
of the Famed Illimani Peaks--Characteristics of the Indian
Life--Responsibility of the Priesthood--Position of the
Women--Panorama of La Paz from the Heights--The Capital
in Fact--Cosmopolitan Society 297

CHAPTER XX

THE MEXICO OF SOUTH AMERICA

Depression and Revival of Mining Industry--Bolivia’s Tin
Deposits and Their Extension--Oruro, Chorolque, Potosi,
and La Paz Districts--Silver Regions--Potosi’s Output
through the Centuries--Pulacayo’s Record--Mines at
Great Heights--Trend of the Copper Veins--Corocoro a
Lake Superior Region--Three Gold Districts--Bismuth
and Borax--Bituminous Coal and Petroleum--Tropical
Agriculture--Some Rubber Forests Left--Coffee for
Export--Coca and Quinine--Cotton 313

CHAPTER XXI

BOLIVIAN NATIONAL POLICY

Panama Canal as Outlet for Mid-continent Country--Railways for
Internal Development--Intercontinental Backbone--Proposed
Network of Lines--Use Made of Brazilian Indemnity--Chilean
Construction from Arica--Human Material for National
Development--Census of 1900--Aymará Race--Wise
Governmental Handling of Indian Problems--Immigration
Measures--Climatic Variations--Political Stability--General
Pando’s Labors--Status of Foreigners--Revenues and
Trade--Commercial Significance of Treaty with Chile--Gold
Legislation--A Canal View 331

CHAPTER XXII

NEW BASIS OF THE MONROE DOCTRINE

John Quincy Adams’ Advice--Canning’s Trade Statesmanship--Lack
of Industrial and Commercial Element--Excess of
Benevolent Impulse--Forgotten Chapters of the Doctrine’s
History--The Ecuador Episode--President Roosevelt’s
Interpretation--Diplomatic Declarations--Spectres of
Territorial Absorption--Change Caused by Cuba--Progress
of South American Countries--European Attitude on
Economic Value of Latin America--German and English
Methods--Proximity of Markets to United States Trade
Centres--Conclusion 351