Chapter III: Appendix: 377 (2)

All vessels leaving either Europe or the United States and calling at Buenos Aires touch at Montevideo the day before arriving at Buenos Aires, as well as on the return trip. Two night lines of comfortable steamers connect Buenos Aires and Montevideo, which are about 110 miles apart. Ample transoceanic and coastwise freight service is also provided.

V
PARAGUAY

Due to the ambitions of one man—Carlos Antonio Lopez—a dictator of the worst type, with Napoleonic designs, Paraguay, one of the finest of South American countries, one with brilliant prospects and holding the greatest opportunities, is to-day the most backward and has the smallest population.

Paraguay was discovered by Sebastian Cabot in 1526. Following him came Juan de Ayolas and Domingo Irala, who in 1536 founded the city of Asuncion, now the capital of the republic. Up to 1810 it was a Spanish colony, being latterly governed by the Viceroy from the home country who resided in Buenos Aires. At that time it was called the Province of Paraguay. It declared its independence from the mother country in 1811, the Spanish Governor-General aiding in the movement. After trying various forms of government it became a republic in 1844, which form of government still exists, the executive power being vested in a President and Vice-President, with a legislative body composed of a Senate and Chamber of Deputies.

It is impossible in even briefly writing of this really wonderful country to refrain from some reference to the one man, Lopez, whose desire for power resulted in the almost total annihilation of a people. His arbitrary rule embroiled his nation in disputes with much of Europe and the United States, and resulted in a war with Uruguay, Brazil and Argentine. In addition to this internal strife developed in which assassins, murderers and executioners played their parts. When Lopez was finally killed and his power gone, Paraguay’s population, according to Dawson, the well-known historian, had decreased from a “1,300,000 to a little over 200,000, only about 29,000 being men and 90,000 children under fifteen years of age.” There were five women to one man. As a result of this devastation the country never has revived. Recent revolutions have set it back still further and whatever of good may come to this benighted land must be written in the future tense.

Paraguay is almost an inland country, having but one outlet to the sea in the Parana River. Its 196,000 square miles of territory is bounded on the north by Brazil and Bolivia; on the west and south by Argentine, and on the east by Argentine and Brazil. The Paraguay River runs directly through its territory from south to north dividing it into two sections, Western Paraguay, or the Chaco, and Eastern Paraguay. It is well watered with many small streams, while toward the north and east are mountain chains.

The climate of Paraguay is so equable that the country is sometimes called the “Sanitarium.” The two seasons are the rainy and the dry. It never snows in this land and flowers in great variety and a riot of color bloom constantly. The southern two-thirds are in the Temperate Zone, the northern one-third in the Tropic Zone.

The population is estimated at 800,000, over 100,000 of which are wild Indians, the remainder being largely of mixed blood, negro predominating. There have been some sporadic attempts to encourage immigration, which have not resulted in any great movement in this direction, owing to the instability of the government and the backward condition of the people as well as to the general isolation of the country.

Travel in Paraguay is most primitive. There are few roads and most of the commerce is carried by bullock carts on almost impassable trails or by pack train over narrow paths. But one railway, having a total length of about 250 miles, ekes out a homeopathic existence, running from Asuncion, the capital, to Ville Encarnacion. Many railways must be built to open the country. One can go by rail from Asuncion to Buenos Aires in two days, the trip requiring a ferry-age from Posadas to Ville Encarnacion. The Trans-Paraguayan Railway now in course of construction will do much to develop the country. Communication with the outside world via Montevideo or Buenos Aires is maintained by river steamers, requiring from five days to a week to make the trip to Asuncion, which is about 1100 miles from the Argentine capital.

Interior of a gentlemen’s hat store, Asuncion, Paraguay
]

A country store in Colombia
]

From Asuncion it is possible to go into the interior or even to Brazil, on light-draft steamers, the Guyara Falls, 1300 miles above the capital, stopping navigation of the Parana River at this point.

The Paraguay River is navigable for vessels of twelve-foot draft to Asuncion and for smaller vessels 700 miles farther.

Most of the commerce of Paraguay is carried in lighters drawn by tugs, and these emissaries of trade are to be met on all the rivers and waterways of this country.

There are several lakes, navigable for small craft, but of no importance from a commercial standpoint.

While both the climate and the soil warrant one in stating that Paraguay is susceptible of high agricultural development, little has been done in this regard, outside of locally producing the few vegetables and fruits required for home consumption. Sugar-cane, tobacco, tropical fruits and cotton would thrive in this country. Each one of these staples has been successfully raised, the cotton being something like our own famous Sea Island brand.

A business, small in size, yet of great importance, and restricted to this locality, is the production of oil of petitgrain, a form of orange perfume, much in use in European perfume houses as a base for toilet and flavoring extracts. The essential oil is obtained in the most primitive manner and is always in great demand.

A lace peculiar to the country, called “nanduti” or spider lace, is made by native women, and if properly commercialized might develop into a paying trade.

The growing and curing of “Yerba Mate,” a native tea, used extensively in Paraguay, Uruguay, Brazil, Argentine and Chile, yields considerable income, but is never destined to become an article of great international commerce. The plant or shrub grows wild. The crop amounts to about 18,000,000 pounds yearly.

Quebracho, a red-colored wood, rich in tannin, is indigenous to the country. It is used for furniture and railroad ties and the extract made from it is employed in tanning leather. In one year, over $4,000,000 of this wood alone was imported to the United States, much of it being used for paving blocks.

Thousands of acres of cabinet and other commercial woods are to be found in the forests, but are without value, owing to their isolation and lack of means of transportation to get them to the markets.

The country has some ore deposits. The principal ones are copper, mercury, manganese and iron. They cannot be developed on account of their remote location.

It therefore follows that the chief industries of Paraguay for years to come will be in the production of raw materials and in the raising of cattle for which its well-watered plains are admirably adapted. It has now about 6,000,000 head of cattle and sheep and two slaughter-houses, killing about 40,000 annually. There are two large American companies engaged in the cattle industry; also one big German firm in the same line.

Paraguay has not invited capital and inducements of this nature need not be expected for some time.

While supposedly on a gold basis, money of this metal exists only as a fiction. The inconvertible paper _peso_ has a fluctuating value, being at times as low as two and a half cents U. S. gold, and as high as five cents U. S. gold, according to the stability of the government and local commercial conditions.

Credits should be extended with the greatest caution.

In 1913 Paraguay exported $5,462,000 worth of materials, chiefly fruit to Argentine, as well as yerba mate, timber, hides, dried beef, quebracho, lace, and tobacco. Most of her exports were taken by the neighboring republics, and by them reshipped to the markets of the world. No exports to the United States for 1913 are given, but in 1912 they amounted to only $593. Germany is her largest European creditor, last year taking over $1,198,686 of her products.

Paraguay in 1913, imported $7,671,551 in textiles, foods, hardware, fancy and toilet goods, shoes, hats, liquors, drugs, clothes, steel and iron, of which amount the United States contributed $181,367 as against Germany’s $989,898 and England’s $963,418.

Commercial travelers are supposed to pay a duty proportionate to the business they do. As a matter of fact, no effort is made to collect this tax and the local merchant generally protects the traveler visiting him from such exploitation.

The following cities should be visited:

_Population_
Asuncion 60,000
Villa Rica 35,000
Concepcion 25,00
Encarnacion 10,000

Owing to its situation it is necessary in order to reach Paraguay to go by train or boat from Buenos Aires, or by boat from Montevideo; the journey from Buenos Aires is the quickest and most comfortable.

All goods intended for Asuncion or other points in the country are trans-shipped at either Buenos Aires or Montevideo, arrangements for which can be made with the lines running from Europe or the United States direct to either of these ports. Or your customer in Paraguay will instruct you to ship his order through some agent whom he will specify in his shipping instructions, who will attend to the routine detail to forward the consignment.

VI
CHILE

After Pizarro had conquered Peru he dispatched Diego de Almagro with an army, instructing him to explore and take the territory to the south, or what is now Chile. He was unable to accomplish the task. In 1540 Pizarro sent another expedition under Pedro Valdivia, whom fortune favored and who penetrated to what is now the city of Santiago, which he founded in 1541. For more than 100 years the warlike Araucanian Indians made repeated attacks on settlers in this territory, the Spaniards having great difficulty in conquering them. A treaty of peace was concluded in 1640.

When the revolutionary movement in South America started against Spain, Chile on September 18, 1810, declared her independence, and became the scene of much fighting, finally on April 5, 1818, defeating forever Spanish power and becoming absolutely independent.

A republican form of government was adopted, the executive power being vested in a President, and the legislative in two houses, a Senate and a Chamber of Deputies.

The Republic of Chile has 292,580 square miles, with a ragged coast line of 2,627 miles, and varies in width from 90 to 248 miles. It is bordered on the north by Peru, the east by Bolivia and Argentine, the south and west by the Pacific Ocean.

Two almost parallel ranges of mountains, the Cordillera de la Costa and the Andes, run from north to south, with a valley over 500 miles long and 40 wide spread between them. In this chain of mountains are more than 30 extinct volcanoes from 11,700 to 21,340 feet in height.

Owing to its extreme length Chile possesses many climates. To the north it is dry and hot, the central portion being decidedly temperate with changing seasons, almost like California, while in the south the temperature gets lower, and rains increase. To the extreme south there is much snow and cold with but little vegetation.

Valparaiso
]

There are practically no negroes in the 3,500,000 of Chile’s population. Some writers estimate that 25 per cent. of the inhabitants are Germans, or of German descent, this nation having many business men and large colonies in the Republic, especially toward the south and around Valdivia. Perhaps 50 per cent. are descendants of the Araucanian Indians by the early Spanish explorers. There is a large percentage of English; it is estimated that in Valparaiso, a city of 250,000, there are at least 20,000 Anglo-Saxons. The French and Italian colonies are also quite numerous.

Chile ranks third in South America in her railways, possessing a total of 3800 miles, nearly 2000 of which are owned by the Government. A longitudinal railway, designed to run practically the length of the country—2132 miles—from north to south, is in process of construction. It will be connected with the coast and the hinterland by roads crossing it at right angles, and is designed to develop the entire country and to be of strategic value in transporting troops. Two new trans-Andean roads are contemplated in addition to the one now running from Los Andes to Mendoza, one to operate about 300 miles north of Santiago—the other to cross 400 miles to the south of the capital. Other lines from the smaller ports to the longitudinal road are proposed, in all over 3000 miles being projected. Of the roads maintained by the government, it might be said that they are run at a great annual loss, a condition which may operate materially against the country’s prosperity at some near date. Many of the privately owned roads are used only in connection with the nitrate industry.

Chile has many small rivers varying from 25 to 150 miles in length arising in the mountains and rushing to the sea. Most of them are dry a greater part of the year, but during the rainy season become raging torrents. With the exception of a few in the southern part of the country, they are not navigable, but by a proper system of conserving and storing their water might be made useful for generating power or light.

Her extensive coast line gives Chile 59 ports on the Pacific, most of which are open roadsteads and at certain times of the year positively dangerous, loading and unloading of vessels being done by means of lighters, ships being obliged to lie from one to two miles off the land. The principal ports from north to south in the order named are Arica, Pisagua, Iquiqui, Tocopilla, Antofagasta, Taltal, Caldera, Carrizal, Coquimbo, Valparaiso, Talcahuano, Coronel, Valdivia, Puerto Monte, Ancud, and Punta Arenas, the most southerly city on this continent and one of the big fur markets of the world.

Chile is to-day spending millions of dollars on the modernization of her leading ports so as to properly safeguard life and property, but it will be years before this work is finished.

Primarily the wealth of Chile comes from her nitrate beds and her mining possibilities. There are about $150,000,000 invested in the nitrate industry alone—$55,000,000 being English and $51,000,000 local. American capital is little represented in this line. The exports in 1913 amounted to 60,500,000 _quintals_, a _quintal_ being 101.41 pounds; the value in money was $98,239,569. Iodine is one of the by-products in the manufacture of nitrate, and is controlled by a combination or trust, $1,876,277 worth being exported last year, the United States taking 183 tons, England 65 tons and the remainder of Europe 264 tons.

The nitrate beds run a distance of 450 miles south of the Camarones River, at an altitude of 4000 to 5000 feet and from 10 to 20 miles inland. Many theories have been advanced as to these deposits, the one generally accepted being that these fields were once the bottom of some sea elevated by a titanic upheaval. The beds vary in width from a half to five miles, and the “caliche” or strata of earth bearing the nitrate is usually covered by sand and dirt varying from a few inches to 10 feet. This is blown out by dynamite, separated by washing and boilings from foreign matter, then bagged and shipped. A more desolate spot than a nitrate “officina,” as these reduction plants are called, would be hard to imagine. No trees or vegetation are to be seen and even water has to be carried for miles in cars for operating the machinery and for other uses. Authorities differ as to the extent of the deposits, some alleging they will be worked out in 20 years, while others claim there is sufficient supply available for 200 years. Nitrate is used extensively in the arts, for manufacturing gunpowder and explosives and for a fertilizer in agriculture.

Copper is found in great profusion, $7,947,307 worth being exported last year. One of the largest copper mines is owned by the Braden Copper Company, an American concern. In 1913 its average daily production was 30 tons of bar copper. Machinery is being installed which is intended to double this output. Chile at one time contributed one-third of the world’s supply of this metal and mineralogists state that there are yet great bodies of high grade ore awaiting the discoverer.

Coal is found throughout the south of Chile, one coal field alone being estimated to contain 1,862,000,000 tons. Over $7,500,000 is invested in this enterprise.

Iron ore of excellent quality and freeness from sulphur is found in large quantities. An American company is largely interested in developing this market, and contemplates investing $6,000,000 in their property.

There are silver and gold, deposits of salt and borax, as well as cobalt, nickel, mercury bearing ores, tungsten, zinc, graphite, sulphur and alum. All of these await proper development as they exist in paying quantities.

Much of the territory, which resembles California in scenery, climate and formation, is given over to agriculture. Over 600,000 tons of wheat were harvested in 1912 with 71,000 tons of barley, 50,000 tons of oats and 40,000 tons of corn. Some authorities claim Chile to be the fourth largest wine producing country of the world, most of its vintage being consumed locally.

Stock raising is increasing, especially to the south, where sheep are profitably grazed. The latest census gives the number of cattle at 1,900,000, sheep 5,000,000 and goats 300,000. Much wool from three to four-inch staple is produced, last year 20,563,833 pounds being exported. Dairying is rapidly growing. Bee culture is becoming a permanent industry, there being 90,000 hives in Chile in 1913. Much honey and wax are exported.

There are millions of acres of virgin forests of valuable hard woods in the south, the north being a barren, treeless country. The chief trees are the Chilean oak, the rauli, elm, cypress, pine, cherry, laurel and of late the eucalyptus is being propagated extensively.

Some industries such as shoe factories, canneries, breweries, distilleries, sugar refineries, cracker bakeries, and the like exist but their products are for local consumption.

The fruits of Chile, such as the cherry, peach, pear, apple, nectarine, plum, apricot and melon, are the equal of ours. Inasmuch as the seasons here are reversed, these luscious fruits would reach our markets during winter, and this could be developed into a profitable trade.

Chile exports nitrate of soda (nitrate), copper, iodine, wheat, borate of lime, iron, gold, silver, wool, hides, woods, honey, and wax.

She imports bottles, cars and rolling stock, cement, cotton goods, glassware, iron and steel manufactures, such as wire, nails, pipes, corrugated iron, hardware, tools, locomotives, mining and agricultural machinery, mineral waters, paper, petroleum, rice, sacks, tinned salmon, thread, tea, woolen goods, shoes, and hats.

Chilean money is unstable and fluctuates from day to day, the paper _peso_ or dollar being worth from 17 to 36 cents, according to variations in exchange. A gold _peso_ exists fictitiously for trade purposes, being estimated at 18 pence or 36 cents U. S. gold. When this mark “$” is followed by the word _oro_ the amount is understood to be gold. If however this abbreviation is used “m/c” it means “moneda corriente” or the paper money.

Chile has for a long time talked of changing its currency and making it staple. The sooner this is done the better for the country. Such a movement has been greatly retarded by men who have made money due to the fluctuations in currency.

Both the English and Germans have large interests here, and as a consequence do the bulk of the exporting and importing business with Chile. Imports in 1913 were $122,075,994 as against $139,878,201 of exports. India shipped to Chile $3,500,000 worth of jute bags for nitrate in 1913, and stands seventh in the list of countries sending goods here, the United States being third with $16,806,341 to its credit as against England’s $38,616,886 and Germany’s $33,189,070.

Commercial travelers are not required to pay a license. The authorities are very liberal about admitting samples.

The following cities are worth visiting for trade purposes:

_Population_
Santiago 400,000
Valparaiso 250,000
Iquiqui 50,000
Concepcion 50,000
Chillon 45,000
Antofagasta 35,000
Punta Arenas 20,000
Talcahuano 16,000
Valdivia 16,000
Coquimbo 12,000

Chile may be reached by taking any line from New York to Buenos Aires, then crossing via the Trans-Andean road to Santiago or Valparaiso, or by any line of steamers sailing for Colon, thence via train to Panama from where English, German, Chilean or Peruvian steamers sail weekly, touching at all the leading coast ports. There are also English and German ships direct from Europe, which pass through Smythe Channel on the southwest coast of Chile and touch at all its ports on both the outward and return voyage.

VII
BOLIVIA

Bolivia, the fourth largest of the South American republics, extending over an area of 708,195 square miles, is without a seacoast, having lost control of her ports on the Pacific Ocean as a result of the war between Peru and Chile. This country occupies as much territory as all of the states east of the Mississippi, excepting those of New England, or is as large as the combined areas of California, Washington, Oregon, Idaho, Arizona, Utah and Nevada, and is bounded on the north and east by Brazil, the south by Paraguay, Argentine and Chile, while her western boundary is made up by Peru and Chile.

After Pizarro discovered Peru, he organized an expedition, explored Bolivia, and annexed it to the Spanish crown, which controlled its destinies until all of Latin America revolted against the home government. In 1809 the Spanish authorities were deposed and independence declared in 1825, as a result of the Battle of Ayacucho, fought on Dec. 9, 1824, when the Spanish forces were totally defeated.

Simon Bolivar, the hero of the rebellion against Spain, drafted its constitution which provided for a President, two Vice-Presidents, and two houses of Congress—composed of a Senate and a Chamber of Deputies.

Although Bolivia is entirely within the Tropic Zone, it is blessed with a variety of climates, due chiefly to its altitude. There are two seasons, the rainy from December to May and the dry covering the remainder of the year.

Owing to some gigantic convulsion of Nature, ages ago, what evidently was the bottom of the ocean was forced upward, and now forms an enormous plateau over 500 miles in length, covering more than 60,000 square miles, at an average altitude of 12,000 feet. This is a comparatively barren stretch of land with little vegetation, but is extremely rich in mineral deposits.

Running north and south, and at the east and west sides of this vast plateau are two ranges of the Andes, the distance between them being about 85 miles. In addition to these main ranges are many others which criss-cross the country in numerous directions. In but few, if any, countries of the world is there to be found such a wealth of scenery, Bolivia possessing three of the highest peaks in this hemisphere, namely Illampu, Sorata and Illimani, the sentinel of La Paz, whose snowcovered peak towers into space 22,500 feet.

As may be surmised the climate in the plateau and mountain regions is cool and invigorating most of the year, but extremely warm in the summer, while as the land descends toward Brazil and the upper Amazon region it becomes milder until it reaches tropic warmth.

On account of the high altitude of Bolivia, the traveler generally has attacks of what is known locally as “puno” or “sirroche”—or in plain English, mountain sickness, owing to the rarity of the atmosphere. While it is exceedingly unpleasant and may cause palpitation of the heart, shortness of breath, bleeding at the nose and ears, and other disagreeable symptoms, it seldom results fatally. Rest until acclimated and the use, under a physician’s direction, of some heart stimulant, are all that is necessary to restore the patient to his normal state. Stout persons are apt to suffer more than others and should exert themselves as little as possible. Compressed oxygen is carried in most of the passenger trains to give immediate relief in case of danger from mountain sickness, the train crew being instructed as to its administration.

The population of Bolivia is estimated at 2,300,000, but no census has ever been taken, and it is doubtful if it has more than 1,500,000 inhabitants. Fully fifty per cent. of its people are docile, full-blooded Indians, living the most primitive life and speaking their own dialect with a few head men familiar with Spanish, which is the official or state tongue. The Beni, or white Indians of Bolivia, are a rather warlike race and have maintained their tribal laws, the control of their lands and customs, independent of all attempts to subjugate them. In fact, the Bolivians stand in awe of them. There are about 500,000 “cholos,” the native term for half-castes or mixed breeds, 250,000 whites of Spanish descent and perhaps 10,000 foreigners,—that is Americans and Europeans engaged in business.

Bolivia has been the scene of a remarkable railway development encouraged by the government. There are to-day about 900 miles of road in actual operation, about 400 miles in the process of construction and nearly 2,500 miles, plans and estimates for the completion of which are under consideration.

These railways maintain three arteries of commerce with the Pacific coast from the interior, and reach the ocean via Lake Titicaca at Mollendo, Peru; at Antofagasta, and also at Arica in Chile, the last named being the shortest and most direct route from the coast to the capital at La Paz, a distance of 274 miles, and only recently completed, requiring about 14 hours for the journey. To go to La Paz via Mollendo, or via Antofagasta is much longer in distance, requiring two days’ time, but repays the traveller in the magnificence of the scenery encountered all along the line.

Roads are in process of construction from Potosi to Sucre, in order to afford an outlet for the products of the mines located in this vicinity, and from Uyuni to Tupiza near the border line of Argentine, so that direct communication can be had with this country as well as Chile and Peru. Other roads are being built from Oruro to Banderani and Oruro and Cochabamba, also from La Paz to Yungas, from Yungas to Puerto Panda and from Cochabamba to Chimon. The government also intends building roads from Yacuiba to Santa Cruz, and thence to Puerto Saurez. Connecting lines will be built to the famous Mamore-Madeira R. R. in Brazil.

There is a perfect net work of rivers in Bolivia, located chiefly in the northeast and southeastern sections, many of which are navigable for light draught vessels and lighters. It is estimated that the Paraguay, Beni, Itenes, Mamore, Pilcomayo, Paragua, and other streams give a total water transportation of more than 11,000 miles. These streams, however, can be used more advantageously as commerce carriers toward Brazil, Paraguay and Argentine than to the West Coast countries. Various projects have been suggested for dredging them and providing locks so as to develop the territory drained by them, but it is doubtful if the next century will see this work started, although it is feasible.

Lake Titicaca is the highest body of navigable water in the world, the steamers which operate on it having been brought from Europe in sections and erected on its banks. It is one of the largest lakes in this hemisphere, covering an area of more than 4,000 square miles and being 160 miles long and 30 wide. While the steamers which ply on its surface carry passengers, they also bring all of the freight into or leaving the country via the port of Mollendo in Peru.

Bolivia may rightly be called the mineral storehouse of the world, for locked within the heart of her many mountains are untold riches, the tons which she has contributed to the universe being microscopic in proportion to what remains. Her inexhaustible dried lakes of borax and salt, glistening like snow in the pure air of the high elevation, have been scraped for centuries without apparently reducing their supply. There are many rich deposits of gold, silver, copper, tin, antimony, bismuth, borax, zinc, wolfram and coal.

In the production of tin, Bolivia ranks second, the chief producer being the Malay Peninsula. Tin forms about 70 per cent. of the total export of Bolivia, amounting in value to over $23,000,000, Great Britain taking about 90 per cent. of the output of the mines and selling it to the other nations of the world. There are yet enormous unworked deposits of this metal in this land.

_Copyright by Underwood & Underwood_

Lake Titicaca at Puno, Peru, with native balsas in the foreground.
Balsas, which are made of reeds lashed together, are used for
carrying freight and passengers
]

Bolivia is one of the largest bismuth producing countries of the world and the third in the production of copper, and is rich in antimony and wolfram. In 1912, the latest available authentic data, she exported the following amount of metals:

Antimony $ 26,615
Bismuth 784,183
Copper 1,311,156
Gold 23,039
Silver 1,676,704
Tin 23,289,732
Wolfram 114,847
Zinc 129,243

If the forests of Bolivia as well as the territory sloping toward Brazil were more accessible, much of value would be added to its products. This land is especially adapted for grazing and agriculture as well as the growth of medicinal plants and trees.

In 1912, Bolivia exported rubber to the value of over $6,000,000.

It gives to the pharmacopœia the following drugs: aconite, arnica, belladona, some camphor, cocaine, digitalis, ipecac, jalap, quinine, quassia, sarsaparilla, tamarind, tolu and valerian.

Cabinet woods, such as ebony, mahogany, rosewood, satinwood and cedar are to be found in great profusion. Fruits of the tropical and temperate zones flourish. Coffee and cocoa are largely grown.

Bolivia is one of the few countries of the world without a national debt, a remarkable condition of affairs, more especially for a Latin American country, and its monetary system is on a gold basis, the unit being the _boliviano_, worth about 39 cents in our currency.

English capital is largely invested in the various mines and railways but the greater portion of the mercantile business, especially in the crude drug line, is in the hands of Germans, who shipped to the Fatherland over 83,000 pounds of the 100,000 pounds of quinine exported last year.

In 1913 Bolivia exported tin, rubber, silver, copper, bismuth, cocoa, wolfram, zinc, lead, hides, alpaca-wool, medicinal and crude drugs to the value of $36,551,390. Her imports during the same time were $20,600,000, comprising iron, steel and railway building materials, textiles, machinery, arms and ammunition, foodstuffs, toilet goods, glass ware, and medicines.

Bolivia is one of the countries where the travelling salesman is sure to be obliged to pay a tax; the porters, hotel employes and others assisting, on a commission basis, of course, the person who has this concession. The fee which amounts to about $115 can often be “side-stepped” by arrangement with the local merchant with whom you may desire to establish a connection. Under no circumstances let it be known that you are a travelling man until you have perfected your plans with regard to this problem.

The following cities should be visited:

_Population_
La Paz (the capital) 85,000
Cochabamba 35,000
Sucre 30,000
Potosi 28,000
Oruro 25,000
Santa Cruz 20,670
Tarija 10,000
Tupiza 5,000

Bolivia may be reached via the three cities referred to, namely Mollendo, Antofagasta and Arica, these places being ports of call for all vessels. Both the Peruvian and Chilean steamship companies, as well as the European lines, touch here also. It is to be expected that some of the larger lines from New York will arrange a service passing through the Panama Canal and calling at these places, thereby saving the long trip around the Horn, or the trans-shipping at Colon and Panama.

VIII
PERU

Recent archæological finds warrant some authorities in claiming Peru to have been the home of a highly civilized and cultured people 25,000 years before Christ. The race which inhabited the land then were the Chumus, the progenitors of the Incas, whom Pizarro found when his expedition arrived in Peru from Panama in 1532. The Incas had a socialistic form of government, were able engineers, good surgeons, noted agriculturists and really a wonderful people. The treatment of this docile and intellectual nation by the invading Spaniards is one of the darkest pages of history.

Francisco Pizarro founded Lima, the capital of Peru, in 1535, was appointed by the Crown governor of the newly acquired territory and was assassinated in front of his palace in 1541.

The great wealth which Peru, through her rich mines, contributed to Spain, warranted that country in making this possession a viceroyalty, the viceroy at one time governing all Spanish possessions in South America from Lima.

The movement for independence from Spanish control, started early in the last century, found many adherents in Peru and after several reverses the yoke of Spain was thrown off July 28, 1821, a congress organized in 1822, representing a republican form of government and the first president inaugurated in 1823.

In 1879, over a question of boundary lines, Peru became involved in a war with Chile, lasting five years, the result being the defeat of Peru and the invasion of its capital. As a consequence, Peru ceded one of its richest provinces, Tarapaca, outright to Chile, and the territories of Tacna and Arica conditionally for ten years, at the end of which period a vote was to be taken in these provinces, and the inhabitants were to decide under which country they preferred to remain. The Chileans, despite the repeated requests of Peru, have failed to observe this condition of the peace treaty and these territories with all their wealth still are under the control of the conquerors. The methods employed by the Germans in Alsace-Lorraine have been used here by Chile, and the chances are that this district will always remain in the hands of its present governors.

A President and two Vice-Presidents, together with a legislative body of two branches, a Senate and a House of Representatives, control the destinies of Peru.

Peru contains 687,600 square miles, and is bounded on the north by Ecuador and Colombia, on the east by Brazil and Bolivia, on the south by Chile, its western boundary being washed by the waters of the Pacific for its entire length of 1600 miles. For purposes of comparison Peru covers as much territory as Texas, Nevada, Utah, New Mexico and Arizona.

Three mountain ranges run through this country between which are found extremely fertile and productive plateaus, the scene of much of the country’s agricultural development. The land from the coast to the foothills of the Andes is as a rule barren, and were it not for the Humboldt Current which runs close to the shore and cools it, would be exceedingly tropical. On the eastern slopes of the Andes, as they stretch toward Brazil and Bolivia, there is a wealth of verdure, vegetation and virgin forests, due to the heavy rains and the tropical sun’s action. This comprises three-fourths of Peru’s territory. The table-lands are cool and enjoy a temperate climate. From June to November, the days are marked by a fine drizzling rain, particularly along the coast but for the rest of the year rain coats and umbrellas are not needed.

Peru claims a population of 4,500,000 but I seriously doubt if it will reach 3,500,000. Of this number fully half are unlettered, ignorant Indians, lacking in ambition, requiring few necessities and living most primitively. One-fourth are half-breeds, the descendants of the conquerors and the Incas. About two per cent. of the population are Chinese. Here it may be noted that many archæologists and anthropologists believe that the early settlers of Peru came from China, across the stepping stones in line with the finger of Alaska which points toward Asia, and by degrees wandered down the western coast of America, finally establishing a government near what is now the city of Cuzco. Perhaps 15 per cent. are pure white. There are nearly 50,000 Europeans and Americans located throughout Peru. Italians and their descendants are most numerously represented, followed by Germans and English.

Peru has no navigable rivers on her west coast, the many streams which empty into the Pacific being dry or very low except during the periods of heavy rains. Properly husbanded their water power could be effectively used. To-day they serve for irrigation and near some of the larger cities, such as Lima and Callao, have been advantageously used for generating electric light and power for tram systems. On the eastern side of Peru there are about 3500 miles of navigable rivers for light-draft vessels, drawing 8 to 15 feet, all of these streams ultimately emptying into the Atlantic.

Iquitos with 20,000 inhabitants, on the Amazon, 2500 miles from the Atlantic Ocean, is the center of the rubber industry, and is more accessible from New York than from the capital of the Republic, Lima.

Peru has 1840 miles of railway, 1300 being standard and 500 narrow gauge. Nearly 3500 miles of road have been surveyed and are in various process of construction. Nominally about 1200 miles of these roads are owned by the Government but are operated and controlled by the Peruvian Corporation, Ltd., an English organization, whose presence is very much in evidence in Peru, and which also operates a line of steamers on Lake Titicaca. Under the present contract with the government this concern is to control the railways under it until 1973, a certain percentage of the profits to go to the State, and another portion to be utilized in railway extension.

The Peruvian Corporation, it should be stated, was organized by Europeans holding Peruvian bonds on which it was impossible to collect the guaranteed interest, due to the mismanagement of the government as well as the outcome of the war with Chile. This corporation took over and cancelled the indebtedness in return for certain privileges among which was the right to exploit the railways.

To Henry Meiggs, an American from San Francisco, Peru and the world is indebted for the completion of what are the most marvelous railways on the globe. By a series of twists and turns, which include 65 tunnels and 67 bridges, it climbs to the highest point in the world ever reached by a railway, 15,665 feet above sea level in a distance of 138 miles, to what is locally called “the roof of the world.” Some idea of the rapidity of the ascent may be gained when I state that in the first twenty-five miles from Lima the train ascends 2800 feet above the sea, while it reaches 5000 feet twelve miles further on its journey.

Another wonderful road runs from Mollendo through Arequipa and on to Puno, at the edge of Lake Titicaca, passing through the most magnificent scenery and ascending to an altitude of 14,665 feet. There are numerous Americans employed in the management of the Peruvian railways and practically all the rolling stock comes from the States.

The many mountains paralleling the coast make railway construction a difficult and expensive problem. It is possible that this will have much to do with the retarding of the progress of mine development, inasmuch as many of the mineral deposits are almost inaccessible due to their interior location.

Unlike Chile, Peru has many natural harbors, affording protection against storms, Mollendo, Salaverry and Eten being the only ones really dangerous to shipping and life. The ports from north to south are Tumbez, Paita, Eten, Pacasmayo, Salaverry, Chimbote, Huacho, Ancon, Callao, Pisco, Mollendo, and Ilo. The docks at Callao, the leading port, are quite modern and capable of receiving the largest vessels.

_Copyright by Underwood & Underwood_

Oroya Line, Peru
]

Peru’s products are chiefly mineral and agricultural.

Her mines have long been famous, producing gold, silver, copper, iron, coal, bismuth, lead, quicksilver, tungsten, antimony, molybdenum, vanadium and borax. Her petroleum fields are a source of much revenue. Her guano industry is being revived by protecting the birds which frequent the islands and by restricting the working of these deposits. Sugar cane, cotton, and rice are profitably raised.

The forests of the eastern section are rich in cabinet and medicinal woods.

Copper is the leading metal mined, the production in 1912 being valued at $9,625,000, while the amount of silver extracted in the same period was $5,152,412. Vanadium, used for hardening steel, exists, the deposits being larger than in any other locality. More than $500,000, or 70 per cent. of the world’s output, was exported in 1912. The bulk of these industries is controlled by American capital and many Americans are employed.

There was mined in Peru in 1912, 268,000 long tons of coal, 254,088 of which came from the mine owned by the American companies operating at Cerro de Pasco and was used chiefly in the smelters. Geologists estimate that there is a carboniferous area in this country of approximately 40,000,000 tons of coal.

Peru is fortunately rich in being the possessor of petroleum fields yielding a high-quality oil, much of which goes to the States and Europe for purifying. One local refinery has a capacity of 300,000 gallons per month. The Standard Oil Company owns some of these properties, but the largest holders are British and Italians. In 1912, 214,947 metric tons of oil were produced. The national line of steamers are oil burners.

In 1913 Peru exported over $51,000,000 worth of cotton and $7,500,000 of sugar; $2,000,000 of vicuna, alpaca, llama and sheep’s wool; $500,000 worth of cocaine and $3,000,000 worth of rubber. Much coffee, tobacco, and cocoa are grown, most of which is used for home consumption.

Peru’s crops are produced chiefly by irrigation, the watersheds on the mountain sides being of great advantage in this connection.

Cotton is manufactured into cloth in mills situated at Lima, Arequipa and Ica. There are also woolen mills but they do not come anywhere near supplying the local demand and much is imported.

Panama hats are largely produced, in 1911 the exports in this line reaching the enormous sum of $2,147,668. Some twenty-five factories in the Cuzco valley are devoted to the production of cocaine, the world’s supply largely coming from this section. The cattle and wool growing industries are capable of much greater development.

Peru is on a gold basis, the _sole_ being the unit of value. This is a silver coin and is designated thus “$.” Ten _soles_ ($10) equal a gold _Libra_ or pound, worth a pound sterling or $4.8665 U. S. gold and expressed thus “_Lp._,” meaning _Libra Peruana_, or Peruvian Pound. A _sole_ contains 100 _centavos_, or cents.

Peru’s exports in 1912 were $45,871,504, and her imports $25,066,354, the bulk of the business being done with the United Kingdom, the United States being second. Within the past five years the exports from and imports to the States have materially increased and are rapidly approaching those of our greatest competitor, England. This is due perhaps to the development of the mining industries, under the control of American capital. In 1910, England shipped Peru $8,134,189 worth of goods to our $4,484,214 and Germany’s $3,842,855. In 1912 the figures were as follows, England $6,800,708, United States $5,763,423 and Germany $4,557,698. Undoubtedly the figures for 1913, when available, will show a decided further gain for us.

Peru exports copper, gold, silver, mercury, vanadium, bismuth, cocaine, quinine, wool, sugar, petroleum, hides, hats and guano, and imports textiles, mining machinery, oil machinery, pipe, railway supplies, windmills, corrugated iron, tools, hardware, flour, canned goods, shoes, electric supplies, typewriters, mineral waters, wines and liquors.

The bulk of invested capital is English, but in this line the Americans are forging to the front. Germans, Italians, and French are chiefly interested as merchants throughout the country.

There are no taxes or restrictions placed on commercial travelers and samples are admitted duty free.

If you are handling mining machinery or devices for use in mines or petroleum fields, it is apparent that the localities where these industries thrive should be visited personally. Many of the mines have company stores located in their holdings that are worthy of calls, while others maintain purchasing agents in Lima for this purpose. Inquiry of local authorities will give all the information necessary, otherwise the following cities should be visited:

_Population_
Lima 150,000
Callao 35,000
Arequipa 35,000
Cerro de Pasco 18,000
Piura 15,000
Trujillo 12,000
Mollendo 6,000

Cuzco, with a population of 26,000, is hardly worth a visit for business purposes, but is interesting for its historical associations. It was the ancient metropolis of the Inca Empire. Mostly all of its buildings were of stone, set together as wonderfully as the Pyramids, their joints being so perfect that a knife blade cannot be inserted between them. Streets crossed each other at right angles, and were paved with naturally colored stones, forming intricate patterns and geometrical designs, which can still be seen. There was an imposing temple dedicated to the sun, whose walls were studded with gold plates. Water from the mountains ran through the city streets, while around the entire town were fortifications many of which yet remain. Its civilization was of the highest order.

Iquitos, 20,000, should only be visited from Mañaos in Brazil. It is a good business town.

Peruvian ports can be reached via the Straits of Magellan and Smythe Channel from New York or via Colon and Panama. There are direct European steamers from England and Germany weekly, with connections for Panama, either through their own lines or via the Chilean or Peruvian National steamers, both of which make all the ports along the coast. There are also tramp and freight boats from San Francisco which carry passengers, but for personal comfort this service is not to be recommended.

To get to Iquitos, take the river boats from Mañaos, Brazil.

IX
ECUADOR

Sebastian de Benalcazar, a lieutenant of Pizarro, on December 6, 1534, was the first European to enter the Kingdom of Quito, the seat of government of the Caras Indians. The Spaniards controlled this territory at different times from Lima, Peru, or from Bogota, Colombia, as conditions warranted.

In 1809 the Ecuadorians attempted to throw off the yoke of Spain, but were unsuccessful in establishing their independence from the Mother Country until May 24, 1822, when General Sucre defeated the Spanish forces at Pichincha, as a result of which Ecuador entered a union, fathered by the Great Liberator, Simon Bolivar, and comprising as its other states Colombia and Venezuela. Internal dissension which grew resulted in the dissolution of this trinity of republics, and on August 14, 1830, Ecuador proclaimed herself an independent republic, adopting a constitution similar to those in vogue in Latin America. The executive power is vested in a President and Vice-President, the legislative in a National Congress composed of two houses—a Senate and a Chamber of Deputies.

Ecuador has an area of 116,000 square miles, or about as big as the combined areas of Missouri and Arkansas. The Galapagos Islands, which at one time the United States tried to acquire by purchase for a coaling station, lying 750 miles to the westward, with an area about 2500 square miles, also belong to this country.

Ecuador is wedge-shaped, bounded on the north and east by Colombia, on the south by Peru while the waters of the Pacific lap its western shore line.

The climate is diversified, running all the gamuts of change from tropic, semi-tropic and temperate to cold. The tropical region, as may be surmised, starts at the coast line and continues to the foothills where it gradually changes to semi-tropical at 6000 feet, and to cold in the fertile plateau on which Quito is situated at about 9000 feet. Above this in the mountains it is always much colder. The Equator passes across the northern tip of the country near Quito, while two ranges of the Andes run parallel throughout its length for 520 miles, embracing some of the highest peaks in the system, Chimborazo being 20,498 feet high and Cotopaxi 19,613. The plateau between these ranges averages 65 miles in width and has a mean altitude of 8250 feet.

These mountains form watersheds giving rise to two river systems, flowing respectively toward the sea and toward the interior, which ultimately develop into 91 distinct rivers, only one, the Guayas, on which Guayaquil is situated about 60 miles from where it empties into the sea, being of any great commercial value. The other rivers which are navigable for a short distance are the Daule and the Vinces in the west, while the extension of the Amazon in Ecuador, there called Marañon, affords direct communication with Brazil.

A census has never been taken in Ecuador but the population is estimated at 1,500,000. Perhaps 1,200,000 would be nearer the true figure. Seventy-five per cent. are Indians, 200,000 half-breeds, 100,000 white, 2500 negroes, with a floating foreign population of 7500.

There are fewer railways in Ecuador than any other country of South America. One American owned and operated railway running from Duran, on the opposite bank of the river from Guayaquil to Quito, a distance of 285 miles, may be described briefly as the scenic road of the world. There is another road of about 20 miles, and one or two contemplated lines.

Ecuador has been cursed by revolutions, and depressed by the lack of enterprise on the part of its various governments. Guayaquil is perhaps the dirtiest city in the world and at all times a hotbed of filth and disease. For these reasons it has been shunned by tourist and traveler alike, although it is one of the best markets I know of on the West Coast.

The country has no great industries. It is, however, susceptible of enormous developments. It has no agriculture to speak of, but can successfully raise sugar, tobacco, coffee, cotton, cocoa, bananas, wheat, cereals and tropical and temperate fruits. Its forests are rich in cabinet and hard woods. Medicinal trees abound, as well as the tagua nut tree from which the ivory nut comes, and the species of palm which furnishes the fibre for Panama hats. Cocoanuts are plentiful and of an excellent quality. There are minerals in quantities sufficient to pay for the mining, such as coal, sulphur, copper, gold, iron and silver. Oil has recently been discovered. Over most of the land disease lurks and the ambition of the native is dead.

The monetary unit of value is the _sucre_, named after one of its military heroes; it has a value in American money of 48.7 cents. Ten _sucres_ are the equivalent of a pound sterling and are called a _condor_, after the Andean bird.

There are a few English houses in business here, but the bulk of the trade is under German control. Many Syrians have come to the country and established themselves as petty merchants.

Cocoa is largely grown in Ecuador, the bean being of a high grade, rich in color and fats. Strange to say, practically none of the chocolate of commerce is made here, the crude dried bean only being exported. In 1912 $7,653,505 of this article alone was exported, chiefly to Europe, despite the fact that we, as a nation, are the largest users of chocolate.

Forty million one hundred and forty-three thousand four hundred and fifty-two pounds of tagua or ivory nuts worth $936,511 were exported in the same time, most of it going to Germany to be made into buttons; one German village has fourteen factories elaborating this product into the finished article of commerce.

Panama hats are made by individuals, collected by jobbers, and exported, this trade in 1912 amounting to $1,372,051.

More than $1,000,000 worth of rubber was exported in 1913, and in the same time coffee to the value of $783,787, most of which went to Chile.

The total exports in 1912 amounted to $13,717,884, as against $10,652,843 imports, the leading articles being boots and shoes, candles, ready made clothes, crockery, drugs, food stuffs (flour and canned goods), hats, hardware, machinery, oils, paper, perfumes, textiles, wines and liquors.

I cannot refrain from repeating that Ecuador, due to the prevalence of disease, is passed over by most travelers and as a consequence there is little competition, and one is sure of doing business here if his product is appropriate.

A small license or fee is one of the legal requirements to sell goods in this country, but is more honored in the breach than the observance.

These towns should be made:

_Population_
Guayaquil 80,000
Quito 80,000
Cuenca 35,000
Riobamba 18,000

There is but one city in the Galapagos group of islands, namely Floriana. They are unworthy of any attention from a commercial standpoint.

Ecuador is reached most directly from Panama in about three days. Travelers going to Peru or Panama from any of its ports are detained in quarantine and have their baggage disinfected. This rule is strictly observed. Freight should be sent via any line to Colon or Panama for trans-shipment as there are but few direct boats. From San Francisco the Kosmos Line of Hamburg formerly maintained a bi-monthly direct service which may be resumed after the war. The West Coast Line from New York has irregular sailings via the Strait of Magellan, carrying only freight; the voyage takes about three months as the ships drop off cargo en route.

X
COLOMBIA