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Chapter IV: Appendix: 377 (3)

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Columbus on his fourth trip of discovery to the New World was the first European to sight Colombia. He sailed along the coast during September, 1502, but did not undertake to land. Alonso de Ojeda in 1508 obtained a patent from the Spanish crown and after repeatedly repulsing the warlike Indians, secured a foothold at Cartagena, which place he proceeded to fortify. Others with warrants from the King of Spain also entered the territory, ultimately subjugating the Indians and establishing the capital at Bogota in 1538.

The province was called New Granada and was governed by a Viceroy until 1810 when a revolutionary movement deposed him, and on December 17, 1819, the Republic of Colombia was born. Under the guidance of Simon Bolivar, Venezuela and Ecuador joined with Colombia in forming a union of these republics, which could not be held together after the death of the founder, in 1830. On the dissolution of this body of states, the Republic of New Granada came to light November 17, 1831, this title being changed to the United States of Colombia in 1863.

Colombia covers an area of 438,436 square miles, and like the United States enjoys the unique advantage of having a coast line on two oceans—the Caribbean Sea to the northwest being part of the Atlantic and the Pacific on the south and west. Ecuador and Peru form her southern boundary, Brazil and Venezuela are on her eastern frontier, while Venezuela stretches across much of her northern limits, and the Republic of Panama is the only land on the west.

Colombia is a land of mountains, plateaus and wide plains. To the east and south are large areas of level ground known as “_llanos_,” or “_selvas_,” covered with grass and tropical growths including virgin forests. This section has enormous rainfalls, is very warm, unhealthful and sparsely populated, in fact, has hardly been explored. There are three different mountain systems running northeast and southwest, between which are rich, luxuriant valleys, capable of great agricultural possibilities. These mountains contain many extinct volcanoes, of varying altitude, one being 18,000 feet high.

The climate ranges from tropical to temperate, Bogota, the capital, having a uniformly cool and spring-like temperature throughout the year, due to its elevation of 8600 feet. In the lowlands, and especially along both coasts, the heat is oppressive and far from salubrious. This is also true of much of the low-lying interior country. The cities on both coasts are notably unsanitary.

Colombia claims a population slightly in excess of 5,000,000, but I doubt if it really has 4,000,000. About one-tenth of the inhabitants are pure white and there are 200,000 wild Indians, living primitively under tribal chiefs, nominally under the control of the local government. The remainder are mixtures of white, black and Indian in varying proportion, over 300,000 of whom are negroes and mulattoes. Little can be hoped for from the majority of these people owing to their poor source of origin and the climatic conditions which surround them.

The Government recognizes the doctrine of states rights, and is republican in form with the usual branches, judicial, legislative and executive. A President with two Vice-Presidents represent the executive control, and the legislative body is composed of a Senate and House of Representatives.

The mountainous topography of Colombia has had much to do with the scarcity of railways, rendering them expensive in construction and owing to the great distance between possible termini, likely to make them profitless ventures. There are about 650 miles of railroads in Colombia, many of them supplemental to river transportation, or connecting ports with interior towns. It is doubtful if this condition will ever alter materially.

The trade of Colombia is carried chiefly on the Magdalena River, which is 1060 miles long with a swift current, and navigable to Honda, a city 600 miles from Barranquilla at its mouth. A marine railway, around the rapids at Honda, allows small steamers to go about 200 miles above this inland port. Goods intended for Bogota usually go via rail from Puerto Colombia to Barranquilla, a distance of about sixteen miles, and are then transferred to the stern wheeler, wood-burning, river steamers for all the world like those which navigate the Mississippi. A trip from Barranquilla or from Cartagena to Bogota takes via the Magdalena River from ten to fourteen days, according to the stage of water in the river and includes steamboat, railway and muleback travel. In making this trip the traveler is advised to take tinned food and bottled mineral water.

Travel through Colombia at best is difficult, the roads are bad and the hotels miserable. Goods intended for Bogota have six trans-shipments from the ocean to their destination—an argument for good packing.

The Atrato River, which rises in the foothills of the Andes and empties into the Gulf of Darien, an arm of the Caribbean Sea and which England threatened to make into a canal connecting the two oceans if not given special privileges in the Panama Canal, is navigable for about 225 of its 350 miles. The largest river on the Pacific side is the San Juan, being navigable for 150 of its 200 or more miles. The rivers emptying into the Amazon are navigable for canoes and lighters, but are so remote and in such a sparsely populated region as to be negligible quantities in this connection.

Agricultural experts estimate that only one-third of Colombia is susceptible of cultivation, the eastern part being swampy and the high mountain lands incapable of sustaining any growth, especially at an elevation of 13,000 feet. The belt of coast lands with the plateau regions can be made highly productive.

Coffee is perhaps the largest crop grown, in 1913 the output being nearly 55,993 tons valued at $16,777,908, practically all of which came from the Cauca Valley, and nearly all taken by the United States.

Some cotton is grown, of a particularly long fibre, and this industry could be easily developed into a larger one.

Due to the work of the United Fruit Company of Boston, which maintains banana plantations near Santa Marta and Cartagena, the growing of this staple fruit is enlarging into a great business, owing to the fact that the soil and climatic conditions are ideal for its propagation. In 1913, $1,996,999 worth of this fruit alone was shipped.

Rubber to the extent of $736,427, tobacco valued at $442,461, most of which went to Germany, ivory or tagua nuts worth $754,708 and Panama hats to the extent of $1,174,641 were shipped in 1913. These industries are susceptible of a greater increase.

The cattle-raising business could be materially developed in some sections of the country which now grazes about 3,000,000 head. The breeding of goats could be done profitably. Hides to the value of $2,661,721 were exported last year, the United States taking by far the greater portion. Some 30,000 alligator skins are sent annually to the leather markets of Europe and America.

Excellent hard, cabinet and dye woods are to be found toward the interior, but the poor transportation facilities retard the development of trade in this field.

Colombia’s chief wealth is in her mines. There is much gold, also iron, silver, lead, copper and coal. In the production of platinum this country ranks next to Russia. Petroleum is found and the petroleum industry is rapidly assuming large proportions. Practically all the emeralds of the world to-day come from Colombia, this precious stone being worth more per carat than diamonds. The government controls the exploitation of emerald mines, leasing them to operators. The chief groups of mines are the Muzo, the Coscuez, the Chivor and the Cuincha, the first named having a yearly output of 262,548 carats of the first water, 467,690 of the second, 22,700 of the third and 17,800 of the fourth class. The Chivor group, it is estimated, is capable of producing $500,000 worth of these stones per year.

Gold to the value of $6,634,914 was exported in 1913. Its production increases annually. About $1,000,000 worth of silver and $600,000 worth of platinum were shipped abroad in 1913.

Colombia is presumably on a gold standard, having as its unit of value a _peso_ or dollar equal in value to the American one. As a matter of fact, however, the currency in circulation is an inconvertible paper dollar, which fluctuates in value according to the stability of the government. I have seen it take three hundred of these dollars to equal one of ours. Now a paper dollar is worth about one cent gold. Business transactions are usually done in United States dollars or English pounds.

Much of the business of Colombia is in the hands of the Germans who maintain houses at the port towns and branches at other trade centers in the interior. The English are the next largest investors, followed by the French.

Colombia in 1913 imported goods to the value of $28,535,780 and exported products worth $34,315,252. Of these amounts the United States shipped her 27 per cent., Great Britain 20 per cent. and Germany 14 per cent. Colombia shipped us 55 per cent. of her products, to Great Britain 16 per cent. and to Germany 9½ per cent. Expressed in figures we bought from Colombia $18,861,880 and sold her $7,629,000. It is obvious that we should do a much larger trade with the country, especially when it is practically next door to us. Our trade with her in textiles now is $1,500,000 against England’s $3,500,000. In this one line we should be able to make a 100 per cent. increase.

Colombia exports coffee, gold, emeralds, platinum, rubber, tagua nuts, hides, skins, feathers, bananas, hats, and requires textiles, foodstuffs, flour, kerosene, railway supplies, hardware, machinery, medicines, paper, metals, wines and liquors.

While Colombia _per se_ does not impose a tax in order to do business within her territory, many of the municipalities do. This problem is a matter that can generally be adjusted with the leading police official of the city.

The chief cities are:

_Population_
Bogota 150,000
Medellin 72,000
Barranquilla 50,000
Cartagena 40,000
Manizales 35,000
Sonson 30,000
Pasto 28,000
Aguadas 27,000
Cali 27,000
Ibague 25,000
Palmari 24,000
Neiva 22,000
Monteria 21,000
Yarumal 21,000
Cucuta 20,000
Bucaramanga 20,000

Travel is tiresome, cities hard to reach, samples difficult to carry. The country can be thoroughly covered by calling on the trade in Barranquilla, Cartagena, Bogota, Santa Marta, Rio Hacha, Medellin and Bucaramanga. The larger business houses are located at these points and have branches in the smaller cities, to which goods are shipped, and with which they are in close contact.

Colombia may be reached directly from the United States by the United Fruit Company’s ships which stop at all ports on the Caribbean Sea, or one may go direct to Colon and there transship to some vessel, of which there are many plying along the coast.

Buenaventura and Tumaco are the largest ports on the Pacific coast and are in weekly connection with Panama through the medium of small steamers.

XI
VENEZUELA

Venezuela was discovered by Columbus on his third voyage to America August 1, 1498, at the time of his visit being the home of more than 150 different tribes of warlike Indians, who resisted to their limit the attempts made by Spain to conquer them and explore the country. In 1520, Cumana, on the coast of the Caribbean Sea, was founded and is the oldest European settlement in this hemisphere. The Indians, however, kept up a continuous warfare against the invaders, being gradually pushed into the interior while the conquerors established themselves along the coast in towns fortified to resist invasion from the buccaneers who paid them many visits.

An attempt at independence was made in 1718, which was suppressed. Although quasi loyal to the Spanish crown, there were many abortive attempts at revolution, which finally assumed definite form in 1810 when the citizens of Caracas revolted openly, and declared Venezuela independent July 5, 1811. Spain, however, put down this uprising and reestablished its authority, maintaining control of the colony until August 7, 1819, when Simon Bolivar defeated the Castilian army, and made Venezuela one of the three States of Greater Colombia. With the breaking up of this alliance Venezuela became absolutely independent September 22, 1830.

Venezuela is situated in the northern tip of South America with a northwestern boundary of 2000 miles on the Caribbean Sea. To the east she is bounded by British Guiana, on the south by Brazil and the west by Colombia, a total area of 393,976 square miles, although it is really doubtful if the exact extent of the country is known, especially along the Brazilian frontier. It is as large as Illinois, Indiana, Ohio, Michigan, Wisconsin and Iowa.

There are three different mountain regions in Venezuela—a continuation of the Andes—the Coastal Range and the Parima Range, between which are many high plateaus. The mountain ranges reach an altitude of nearly 10,000 feet, while the highest plateau is about 6000 feet.

Owing to the mountain systems, Venezuela is divided into three climatic zones: the tropical extending along the coast and up into the valley through the center of which flows the Orinoco River, the semi-tropical zone to be found in the llanos or broad plains or plateau between the mountain ranges, and the temperate zone along the sides of the mountains on which is grown the famous coffee for which the country is noted.

The United States of Venezuela is a federal union with a republican form of government, the States, of which there are 20, being entirely autonomous in their internal affairs. The executive power is vested in a President and two Vice-Presidents, and the legislative in two houses—a Senate and a Chamber of Deputies.

While the official estimate of the population is 2,743,000, it is doubtful if the country has 1,500,000 inhabitants. There are about 400,000 semi-nomadic Indians, the remainder being of mixed blood, part Indian, part negro, part white, or a mixture of all three. Pure white and pure negroes are comparatively few. There are perhaps 20,000 Europeans engaged in business and located in the larger cities, the countries represented in the order of their population being Germany, Italy, France, Spain, England and a very few Americans.

In the northwest of the country is situated Lake Maracaibo, 370 miles in circumference, covering an area of 8000 square miles, and navigable over its entire surface. This lake is accessible to the Caribbean Sea by a strait 34 miles long and varying from 8 to 12 miles in width. Its channel permits the entrance of ocean-going vessels of 5000 tons or less.

The fluvial systems of Venezuela are numerous, there being about 70 rivers navigable for shallow-draft boats for over 6000 miles, the third largest river in the world—the Orinoco—with its many tributaries contributing some 4000 miles of this distance. About 600 miles up this river is situated the town of Ciudad Bolivar, formerly known as Angostura, where the bitters of that name were first made. Regular lines of ocean-going vessels and steamboats run to this inland port, the river being navigable for smaller vessels to San Fernando de Apuri, where the Apuri River joins it over a thousand miles from its mouth. It drains a territory of over 370,000 square miles. Other navigable rivers are the Meta, the Portuguesa, the Yaracuy, and the Escalante. Along the coast of Venezuela there are about 50 harbors and 32 ports.

For its size there are few railways in Venezuela, the total mileage being about 550, and the chances are that it will be many years before there will be any marked activity in this field, due to the topography of the country, its lack of population and its tendency to revolutions. Some idea of the conditions confronting the engineer may be had when I state that the German railway from Caracas to Valencia, a distance of 111 miles, is cut through the mountains in 86 different tunnels and passes over 212 bridges, often coming out of a tunnel on a bridge and into a tunnel again. Every time a revolution started some of its bridges were blown up or tunnels blocked. The English road from La Guaira to Caracas, a distance of 23 miles, has nowhere 50 feet of straight track and goes up the mountain its entire length at a gradient of 4 per cent. The road from Valencia to Puerto Cabello, a distance of 33 miles, owned by an English company, requires a rack and pinion supplemental track to negotiate some of its climbs.

There are no manufactured products exported from this country. The few things elaborated within its confines, matches, candles, shoes, beer, alcohol, sugar and the like, are for local consumption.

The chances are that its people will always be pastoral in their pursuits. Its coffee and cocoa are world famous and form a large proportion of its exports, about 25 per cent. of its population being engaged in this line. In 1912, $15,137,994 worth of coffee was exported, two-fifths of this going to the United States and the remainder to Germany. “Caracas” cocoa is famous, most of the product going to France, which in 1913 imported $2,305,475 worth of this article alone.

Tonka beans, used in flavoring extracts, are shipped to the United States, which bought $137,156 worth of them in 1913.

This country is rich in dye woods, cabinet and hard woods, but the great distance of the forests from the seacoast retards this industry.

“Ballata,” an inferior rubber, much used in the arts and found in the forests bordering the Orinoco and its tributaries, formed an important article of export, $1,767,259 worth being shipped abroad in 1913.

One of the largest asphalt deposits in the world, covering 1000 acres in extent, is to be found in the State of Bermudez. This is owned by an American company and is practically all exported to the States, $294,184 of the $303,589 shipped last year going to America, and the remainder of $9,405 to England.

Venezuela, due to its vast grassy, well-watered plains, is destined to become one of the world’s greatest cattle-producing countries, and is capable of supporting many million heads. It is estimated that there are more than 2,000,000 goats and 3,000,000 head of beef cattle in this land to-day. Four slaughter-houses adapted to ship frozen meat to Europe were opened and seemed to be on the verge of success when governmental interference closed them.

Hides to the extent of $1,010,636 and goatskins to the value of $365,447, came to the United States from this country in 1913. Feathers, horns, wild animal skins, deer skins and fish-sounds are also large items of export.

The extent of the mineral wealth of Venezuela is unknown, but the chances are that it is exceedingly rich in such deposits. It is certain that there is gold, silver, copper, iron, tin, sulphur, asphalt, coal, lead, petroleum, phosphates, manganese and caolin. One gold mine between the years 1871–1890 yielded $25,000,000. I have seen many Indians bring bottles of gold dust to stores to trade for supplies. There is undoubtedly much gold to be found in the country and the man with determination and enterprise who will follow this clue is sure to get rich returns.

The Island of Margarita, off the coast of Venezuela, and owned by the Republic, produces the finest of pearls and mother of pearl. Other islands off the coast are rich in guano and phosphate rock.

Venezuela is on a gold basis, the _bolivar_, equalling almost 20 cents in our currency, being the unit of value. The _peso_, according to which bills of the country are reckoned, consists of four _bolivars_, and is a fictitious coin not existing in reality. The “_peso fuerte_,” or five-_bolivar_ piece, is a regular silver coin.

The bulk of the business of Venezuela is handled by the Germans, although the United States takes most of its exports, with France second, Germany third and England fourth. German merchants are all over the country, the Italians also are much in evidence.

In 1912, the latest data available, Venezuela exported goods to the value of $25,260,908 and imported articles worth $20,568,940.

She purchases agricultural implements, arms, ammunition, bags for coffee and cocoa, beer, butter, canned goods, confectionery, chemicals, drugs, medicines, flour, glassware, iron-ware, lard, leather, oils, paints, paper, perfumery, railroad material (chiefly from Europe), wall-paper, wines, textiles, cotton and woolen goods, shoes, hats, and exports coffee, cocoa, hides, skins, horns, feathers, dye woods, tonka beans, gold, pearls, guano, phosphate rock, fish-sounds and ballata.

There are no fees or taxes assessed on the commercial traveler, and samples are as a rule admitted duty free.

The following cities should be visited:

_Population_
Caracas 100,000
Valencia 65,000
Barquisimeto 60,000
Maracaibo 50,000
Puerto Cabello 40,000
Ciudad Bolivar 40,000
La Guaira 20,000
Cumana 10,000
Carupano 10,000
Barcelona 10,000

A visit to the Island of Margarita is not necessary because its traders come to the ports of Venezuela for supplies.

Owing to the fact that in Venezuela the consignee can obtain his goods without presenting an invoice or bill of lading, it is well, unless the merchant to whom the goods are shipped is known to be reliable, to send them through some bank or banker, with draft attached.

Venezuela is reached by the Red D Line, flying the American flag, direct from New York to La Guaira, which maintains weekly freight and passenger sailings. The Royal Dutch West Indies Line, under the Dutch flag, sail bi-monthly from New York, having freight and passenger service, but their route involves many stops and takes about twice the time of the direct Red D Line.

Ciudad Bolivar may be reached by either of these lines or by going to Trinidad, B. W. I., on any of the vessels touching there, then taking the river steamers which cross the Gulf of Para and make the Orinoco River landings. Better passage and quicker time can be made for these ports by taking a Red D ship to La Guaira and trans-shipping there to one of the coast boats.

XII
CENTRAL AMERICA

Owing to their many points of similarity in productions and climate and their geographical position, the five republics of Central America, the English colony of British Honduras, as well as the Republic of Panama, may be considered together.

Nicaragua and Costa Rica were discovered by Columbus on his last voyage to the New World in 1502, and a small settlement was made by him in Costa Rica, which the Indians afterwards destroyed, being incensed by the treatment received at the hands of the invaders. In 1540 a further attempt to establish a trading-post was successful and finally in 1565 a Spanish governor was appointed, these colonies having proved to be valuable acquisitions to the crown.

In the meantime, Cortez, having completely subjugated the Aztecs in Mexico, dispatched his officers in all directions to explore the countries to the south. Pedro Alvaredo, after a series of battles, finally established Spanish rule over San Salvador in 1525, and Guatemala in 1527 when he founded the City of Guatemala. Spanish Honduras was acquired in 1526 by means of conquest.

British Honduras was originally a part of Guatemala, the Spanish troops stationed there having conquered it, and it was ceded by Spain to England in 1760.

Panama was a part of Colombia and was discovered by Columbus in 1502 who minutely explored its shore in search of an expected passage to the Pacific. In 1903 it revolted against Colombia and became an independent republic.

In 1821 the five Central American Spanish Colonies, after many unsuccessful attempts at independence formed a Federation, known as the Central American Federation. This independence, however, was short-lived, for Augustin Iturbide, who had proclaimed himself Emperor of Mexico, annexed them to his territory in 1822 despite their protests. After the downfall of Iturbide’s government and the execution of its head, these states again formed a new union in 1824. Continual friction and lack of harmony among the various countries, caused its dissolution and one state after the other withdrew and ultimately established and proclaimed its independence. Several abortive attempts since the rupture of 1839 have been made to reorganize this union, and the chances are that these states will always maintain their separate individualities.

Each one, including Panama, is organized as a republic, with a constitution based on that of the United States, an executive in the personage of a President, and a legislative body composed of two houses—a Senate and a House of Representatives or Chamber of Deputies.

British Honduras is ruled by a governor sent from England.

Guatemala has a total area of 48,290 square miles, with a population of 2,000,000, the greater portion of whom are Indians, mixed breeds, some negroes, chiefly from the West Indies, and perhaps 50,000 whites, mostly Europeans and Americans. It is bounded on the north by Mexico, on the east by British Honduras, and Salvador, while the Pacific forms its southern and western boundary.

Salvador with an area of 7,225 square miles is the smallest of the Central American Republics. It has a population of 1,700,000 and its people are of a progressive type. There is a large percentage of Indian and mixed blood among the inhabitants with a fair number of whites. The Pacific Ocean forms its southern boundary, Guatemala its western and Spanish Honduras its northern and eastern limits.

Honduras extends over 46,250 square miles, with a population of 600,000, chiefly Indians, 100,000 of whom are uncivilized. There are few whites and many mixed breeds. Its northern boundary is the Gulf of Honduras, an arm of the Caribbean Sea. Guatemala is on its western frontier, Salvador, with a bay of the Pacific Ocean on its south and Nicaragua on the east.

Nicaragua has 49,200 square miles of territory with 700,000 inhabitants, mostly Indians, and mixed breeds, with a gradual increasing of the white race. Honduras runs diagonally across from northeast to southwest, the Pacific Ocean is on its west coast, Costa Rica on the southern frontier, and the Caribbean Sea washes its eastern boundary.

Costa Rica covers 23,000 square miles and has 399,424 citizens, about 7000 being Europeans, Americans or from the West Indies. There are about 5000 Indians and the remainder whites, blacks and mulattoes. Its northern neighbor is Nicaragua, the Caribbean Sea washes its eastern shore, Panama is its southern boundary, while the Pacific Ocean laves its entire western coast.

Panama, 33,800 square miles in extent, with about 400,000 inhabitants, and varying in width from 37 to 110 miles, needs little description. It is bounded on the north by Costa Rica, on the east by the Caribbean Sea, the south by Colombia, and the west by the Pacific Ocean.

Through its center is a strip of land stretching five miles on either side of the Panama Canal for a distance of 45 miles and known as the Canal Zone. By the Isthmian Canal Convention of November 18, 1903, the United States acquired a perpetual right of occupation, use and control over the Zone, paying the Republic of Panama the sum of $10,000,000, and, beginning February 26, 1913, the sum of $250,000 annually so long as such occupancy continues. The Canal Zone is governed by the President of the United States. The population of this strip during the building of the canal was as high as 70,000, but it is doubtful if it has 30,000 inhabitants to-day. With the completion of the Canal, the force of workmen necessary to maintain it in running order, together with civilian employes and the United States garrison, will make a permanent population of perhaps 25,000.

British Honduras, with an area of 7562 square miles and a population of 40,000, is the only European colony in Central America. Its inhabitants are Indians and negroes, with a few mixed breeds, and less than a thousand whites. It has no railways, although some effort has been made to get capital interested, so far unsuccessfully. The British Government seems to have completely neglected this possession. Its rivers, navigable for some distance, serve all its transportation requirements.

The topography and climate of all these countries is much the same. Mountain ranges cross and recross them, having peaks of considerable altitude, many of which are still active volcanoes. As is obvious, these mountain systems influence the climate to a marked degree, making it always pleasant and spring-like in the plateaus extended between them, as well as in the intermediary table-lands. The higher elevations are always cool, while the low-lying coast-lands are extremely warm and, as a rule, unhealthy. The watershed which they form deflects the streams arising in them toward either the Pacific or the Atlantic. If harnessed these streams could be used to great advantage for light and power. Near the coast they are navigable for small steamers of light draft and canoes and are also useful in getting out lumber, affording a cheap method of transporting it to the coast.

Due to the smallness of the countries, and the complications in the way of engineering problems, especially in the mountains, there are comparatively few railways.

Costa Rica has 490 miles of railroad, by means of which the capital is kept in touch with ports on the Atlantic and Pacific Oceans.

Salvador has about 174 miles of railroad in operation with about fifty more in progress of construction. Transportation in the interior is made convenient and comfortable by the 2000 miles of really good roadway built in accordance with the most modern methods.

Guatemala contains 450 miles of railroads which afford an ocean to ocean communication.

Honduras possesses slightly over 100 miles of road, in a bad state of repair, with obsolete rolling-stock. Engineers are making preliminary surveys which will mean a material addition to the railway mileage here.

Nicaragua maintains about 225 miles of railway which touch her leading cities. In addition to this, Lake Nicaragua, 92 miles long, and Lake Managua, 32 miles long, are used largely for transportation purposes and have a fair-sized fleet of steamers operating in connection with the railways.

Panama has no railways of its own at present, although $3,000,000 has been borrowed from New York bankers for the purpose of building lines throughout the Republic.

The Panama Railway, owned by the United States Government, passing through the Canal Zone, and about 50 miles in length, may be considered as a portion of the railway system of the Republic of Panama for its citizens have the use of it for every purpose.

Substantially all the railways of Central America are equipped with American rolling-stock and operated with but few exceptions under American control. It is extremely doubtful if the demands of these republics will warrant a very great expansion of railways for years to come.

These countries have no manufactories, and were designed by nature to be agricultural. In time, with the development of steamship service they may become truck gardens for the United States, as their soil is admirably adapted for vegetables, early fruits, melons and berries. In some districts, especially in Nicaragua and in Honduras, cattle could be raised much more extensively. There are mines, but not of sufficient wealth to attract much capital.

Owing to the diversity of zones, there are opportunities for many varieties of fruits, vegetables, and cereals. For centuries these countries have been covered with the most luxuriant tropical growths, so that the subsoil is overlaid with a thick mould estimated at over ten feet deep, capable of excessive productive possibilities. Tobacco, sugar, indigo, rice, corn, coffee, cocoa, cocoanuts, and bananas, are the principal products.

Virgin forests are numerous; in fact they exist throughout Central America. There is an abundance of pine, oak, many natural hardwoods, such as ironwood, and mahogany, plenty of cedar, and a host of ideally grained cabinet woods, susceptible of high polish. Logwood, dividivi, quebracha, and other trees furnish dye woods. Throughout these countries grows the Peruvian balsam from which the well known balsam of commerce comes. There are rubber trees. Much of the chicle from which chewing-gum is made comes from these lands, as well as other gums of a medicinal nature.

Banana growing has done much to bring prosperity to Costa Rica, Guatemala, Nicaragua, Honduras and Panama and the chances are that this industry will become the chief one of all these countries, along their lowlands, which are so well adapted to the propagation of this fruit now so much in demand.

As an evidence of the growth of this business and what it means to these localities, let me state that in 1913 Costa Rica exported $5,200,000 worth of bananas; Panama, $1,150,000; Nicaragua, $425,000; Guatemala, $825,000; Honduras, $1,400,000, and British Honduras, $200,000. And this trade is yet in its infancy. The markets of Europe, notably Germany and England, are also supplied from these countries and within twenty-five years the demand will undoubtedly double, due to the opening of the Canal, which permits the dispatch of the fruits along the west coast of South America in modern vessels.

Coffee is also an important export. In 1913 Costa Rica exported $3,600,000 worth of coffee; Nicaragua $1,780,000; Guatemala $12,250,000; and Salvador $7,900,000.

Gold and silver amounting to $6000 was exported from Panama last year; $875,000 from Costa Rica; $900,000 from Nicaragua; $900,000 from Honduras, and $1,600,000 from Salvador.

These with hides and skins, cocoanuts, ivory nuts, cabinet and other woods, rubber, balsam, chicle, tortoise-shell, pearl shells, sugar and tobacco form the principal items of export.

The exports and imports during 1913 were as follows:

_Country_ _Exports_ _Imports_
Panama $ 2,467,556 $10,400,000
Costa Rica 10,432,553 8,778,497
Nicaragua 3,861,516 4,966,820
Salvador 9,928,724 6,173,545
Guatemala 14,449,926 10,062,328
Honduras 3,300,254 5,132,678
British Honduras 2,850,000 3,500,000

The bulk of the export and import trade of all of these countries is in the hands of the United States, due to our geographical position, and the fact that we have many citizens living within their boundaries, engaged in various enterprises. England, Germany and France are our closest competitors. Perhaps Germany has more real money invested here, and there is a great preponderance of German mercantile establishments throughout these nations. The following table gives the details for 1913:

IMPORTS TO CENTRAL AMERICA FOR 1913

_Country_ _U. S._ _Germany_ _United Kingdom_
Guatemala $5,053,060 $2,043,329 $1,650,387
Salvador 2,491,146 713,855 1,603,846
Honduras 3,463,662 558,327 751,651
Nicaragua 2,549,026 804,038 939,290
Costa Rica 4,515,871 1,355,417 1,303,187
Panama 5,483,678 970,263 2,453,118
British Honduras 2,250,000 7,280 300,000

EXPORTS FROM CENTRAL AMERICA FOR 1913

_Country_ _U. S._ _Germany_ _United Kingdom_
Guatemala $3,923,354 $7,653,557 $1,600,029
Salvador 2,823,251 1,699,694 705,607
Honduras 2,869,188 176,112 13,467
Nicaragua 1,766,548 702,265 515,381
Costa Rica 5,297,146 509,804 4,364,436
Panama 2,130,000 240,000 86,000
British Honduras 1,325,000 55,000 675,000

Each one of these countries requires cotton and woolens, iron and steel supplies, corrugated iron, tools, machinery, food-products, flour, wines, liquors, mineral waters, wooden ware and manufactures, agricultural implements, soaps, perfumes, pharmaceuticals, surgical instruments, boots and shoes, hats, hardware, oil, candles, electric supplies, glassware, coffee sacks, socks, stockings, rubber goods, musical instruments and paints. In fact they are dependent upon the outside world for all the manufactured necessities of life.

American money is accepted in preference to any other throughout this part of the world, although each country has its individual monetary system.

In the Canal Zone American and Panamanian money is interchangeable, that is either United States or Panama currency is equally well received. The Republic of Costa Rica as well as the English Colony of British Honduras, are on a gold basis, while Spanish Honduras and Salvador are on a silver basis, the national money in common circulation in Guatemala being inconvertible paper, subject to daily fluctuations, dependent upon market conditions and the law of supply and demand. Nicaragua and Panama are on a gold exchange standard basis.

The following table gives the necessary data as to the monetary units and the respective value in United States gold:—

CENTRAL AMERICAN CURRENCY

_Country_ _Standard_ _Unit_ _Value in _Condition_
U. S.
Gold_
Costa Rica Gold Colon 46½ cents Staple.
British Honduras Gold Dollar 100 cents Staple.
Nicaragua Gold exchange Cordoba 100 cents Staple.
standard
Panama Gold exchange Balboa 100 cents Staple.
standard
Honduras Silver Peso 39 cents Practically
staple.
Salvador Silver Peso 44 cents Practically
staple.
Guatemala Inconvertible Peso 5 cents Subject to daily
paper fluctuation.

In all these countries the subject of commercial travelers’ fees may be dismissed briefly, by stating that British Honduras, Costa Rica, Panama and Salvador require the payment of fees and the others do not. By the exhibition of tact it is often possible to evade these charges, especially if proper arrangements are made with some local agent or merchant.

The following cities should be visited:

_Country_ _Cities_ _Population_
British Honduras Belize 20,000
Guatemala Guatemala City 100,000
Quezaltenango 25,000
Coban 23,000
Salvador San Salvador 70,000
Santa Ana 60,000
San Miguel 30,000
Honduras Tegucigalpa 40,000
La Ceiba 10,000
Nicaragua Leon 70,000
Managua 40,000
Granada 15,000
Bluefields 6,000
Costa Rica San Jose 50,000
Cartago 5,000
Puerto Limon 6,000
Panama Panama 40,000
Colon 20,000
Bocas del Toro 10,000

With the single exception of Salvador, all these countries are most easily reached from the eastern coast, there being many passenger and freight vessels with regular sailings from New York, Baltimore, Mobile and New Orleans. The United Fruit Company maintain an excellent bi-weekly service between the chief ports of Central America and New York and New Orleans.

Steamship service along the west coast is miserable, passenger and freight rates being excessive. The passenger ships from San Francisco are old, poorly equipped, slow and the food inferior. Travelers are recommended to enter these countries from the east, taking the railway across to the west coast, and a local coasting steamer thence to their destination. The Kosmos Line maintains an irregular service from San Francisco. Salvador has a national line of steamships, making calls at ports in Nicaragua, Honduras, and Guatemala and going as far north as Salinas Cruz in Mexico, the western terminus of the Tehuantepec Railway, from which goods coming from the eastern part of the United States, after crossing Mexico, are reshipped for Central American west coast ports.

XIII
MEXICO

Prior to the invasion of Mexico by the Spaniards, the Aztecs who inhabited the country, had developed a wonderful system of religion, education, civilization and government. Hernando Cortes landed April 12, 1519, at about where Vera Cruz is now located, marched inland, and with the aid of friendly Indians succeeded in finally conquering the inhabitants, burning their cities, destroying their libraries and killing their emperors, in reward for his service being made Governor of New Spain as the Spaniards called this land in 1522. The Spanish possessions in Mexico and Central America were united for the purposes of government, and a viceroy appointed first in 1535, this method for the control of these colonies being used until 1821. Spanish rule in Mexico, as with all of her dependencies, was harsh, and the spirit of revolt came to a head in 1810, under the leadership of a Spanish priest, Miguel Hidalgo y Costilla, who was defeated and executed in 1811. The movement for freedom was kept alive by another priest, Jose Maria Morales, who was captured and killed in 1815. In 1821 Augustin Iturbide defeated the Spanish army and was successful in having himself crowned Emperor of Mexico July 21, 1822. He was forced to abdicate in 1823, and to leave the country, but returning in 1824, was captured and shot. On the departure of Iturbide, Gen. Antonio Lopez de Santa Ana proclaimed the country a republic, Guadalupe Victoria becoming the first president. Spain sent an army to regain Mexico in 1829 but was utterly defeated, within three months after landing, and ultimately the Spanish Crown recognized the independence of Mexico, Dec. 28, 1836.

April 21, 1836, Texas seceded from Mexico and was annexed to the United States in 1845, following which Mexico went to war with its northern neighbor, was conquered and had her capital occupied by American troops.

Taking advantage of the American Civil War, Napoleon III, aided by England and Spain, in 1862 placed the Austrian prince, Maximilian, on a throne in Mexico, maintaining him in power by a European army. When the Civil War had terminated and it became evident that the Washington government would oppose this European invasion of Mexico, Napoleon III withdrew his military support, Maximilian was captured, and on June 19, 1867, was shot at Queretaro. On the death of the second Emperor of Mexico, the republic again came into being; six presidents had controlled its destinies up to the assassination of Francisco Madero and the assumption of the executive power by Victoriano Huerta. Porfirio Diaz, who ruled from 1877 to 1911 gave Mexico a stability that it never possessed before or since.

More than 300 successful or abortive attempts at revolution are recorded during the stormy life of Mexican independence. A confusion of empires, republics, dictatorships and military usurpations have succeeded each other with bewildering rapidity. Between 1821 and 1868 the form of government was changed ten times, over fifty persons succeeding each other as presidents, dictators or emperors. And the end is not yet in sight. The curse of anarchy and military dictatorship hangs over the land like a pall. Murder, assassination, execution, rapine, the wanton destruction of property and the complete paralysis of the commerce of the nation make us ask how long can this continue? It is safe to assume that when some man is found strong enough to take up the frayed fragments of this people, and bring order out of chaos, a republican form of government will again be established.

Its constitution, based after ours, calls for a federal form of government, the various states being free to regulate their internal affairs; the executive power is vested in a President and Vice-President elected for six years each, with a legislative body of two branches, namely, a Senate and a Chamber of Deputies.

Mexico, including the islands along its coast and Southern California, extends over an area of 767,097 square miles. Its northern boundary is the United States, a coast line of 4574 miles on the Pacific Ocean marks its western and southern limit, in connection with a portion of Guatemala and British Honduras, while a little section of Guatemala, 1400 miles of the Gulf of Mexico and 327 miles on the Caribbean Sea form its eastern confines.

Two mountain systems traverse the entire country between which are a series of plateaus of various altitudes and many fertile valleys. An evidence of the extent of these elevated table-lands may be formulated when one realizes that Mexico has fifty-three cities located above an altitude of 4000 feet. Mexico City in the valley of Anahuac is 7850 feet above sea level. The mountains have many high peaks and extinct volcanoes, always covered with snow, the chief ones being Popocatepetl, 17,748 feet, Ixtaccihuatl, 16,176 feet, and Ajusco, 13,628 feet.

Owing to the location of the country partly in the Temperate and partially in the Torrid Zones, the climate is diversified, the varying altitudes tempering extreme heat, except, of course, along the low lands near both coasts. There are two seasons—the wet and the dry, the times for the rains being materially governed by the altitude and location, but generally corresponding respectively to our winter months.

The present population is about 14,000,000 although it was estimated to be 15,063,207 in 1910. The greater number of these people are unlettered Indians, and mixed breeds. There are some negroes about the coastal regions. Most of the business of the country is in the hands of the foreigners, Americans predominating, with many English, Spanish, French and Germans.

There are about 16,000 miles of railway in Mexico in actual operation, with 1000 more contemplated. The Mexican government owns 8612 miles of road, while the remainder is controlled by private interests. These roads form a network in the interior, and lead from both coasts and the United States toward Mexico City.

Mexico has no large rivers suitable for the navigation of ocean-going vessels to any great distance. She has, however, much available water power, which is going to waste, and possesses thirty-four deep water ports on her eastern shore and thirty-one on the Pacific.

The chief wealth of Mexico is in her mines, although agricultural products and the raising of cattle add much to her source of revenue, the annual value being estimated at more than $200,000,000.

The soil is exceptionally productive, yielding coffee, henequen, corn, cocoa, tobacco, fruits, beans and cotton. At one time much rubber was exported and there are to-day many estates of cultivated rubber unable to ship their products.

The forests have valuable woods and have been but little exploited. In the north are excellent pine forests, while cedar, mahogany, dye and many cabinet woods abound in the south.

Henequen-growing, from which rope is made, is a prosperous and profitable industry in southern Mexico. Chicle, the gum from a resinous tree, is found throughout the tropical forests of the country, while guayule, a sort of bastard rubber, is being grown extensively. Owing to the troubled condition of Mexico for the past few years, it has been impossible to get authentic data as to the quantities exported in these various lines.

Over $700,000,000 is invested in mining in Mexico, of which sum $500,000,000 is American, $90,000,000 English, $10,000,000 French and $30,000,000 Mexican.

The leading minerals exported in 1912, the latest records available, were:

Silver $44,784,177
Gold 24,952,558
Copper 13,285,192
Lead 3,009,060
Antimony 859,876
Zinc 441,897

The production of petroleum is rapidly increasing, in 1912 over 17,000,000 barrels being the output from the wells.

Mexico has been dependent upon Europe and the United States for her coal supply, her yearly requirements being about 5,000,000 tons of which she produced from local mines almost 1,000,000 tons. There are, however, enormous deposits of this commodity and under proper development Mexico could supply her own needs in this line as well as become an exporter.

The local industries comprise paper mills, cotton-mills, cigarette factories, woolen-mills, breweries, sugar refineries, shoe, furniture and match factories. They produce only sufficient for home consumption.

Mexico exported goods to the value of $150,202,808 in 1913, while during the same period her imports reached the sum of $97,886,169, the United States buying and selling the greater portion thereof.

The following table shows the relative amounts of exports and imports credited to the leading mercantile nations.

_Country_ _Imports from Mexico_ _Exports to Mexico_
United States $48,643,778 $116,017,854
United Kingdom 12,950,046 15,573,551
Germany 12,610,384 8,219,009
France 9,168,977 3,575,509

The monetary system of Mexico to-day is completely disorganized, owing to the issuance of paper money by the many revolutionary leaders. Mexico is nominally on a gold exchange standard basis, the _peso_ having a value in American gold of 49.846 cents. Prior to the present unrest in this country, there were direct banking connections between Europe and the United States.

Some of the states and municipalities charged commercial travelers’ taxes, while others did not. As a rule these fees can be evaded.

Under ordinary conditions travel accommodations in Mexico are not bad and the hotels passable.

The following are the leading cities:

_Population_
City of Mexico 500,000
Guadalajara 120,000
Pueblo 100,000
Monterey 65,000
San Luis Potosi 61,000
Vera Cruz 60,000
Merida 50,000
Guanajuanto 42,000
Aguas Caliente 40,000
Morelia 40,000
Queretero 40,000
Zacatecas 36,000
Chihuahua 35,000
Orizaba 35,000
Toluca 30,000
Jalapa 25,000
Saltillo 25,000
Tampico 25,000
Torreon 25,000
Colima 21,000
Campeche 20,000
Irapuato 20,000
Mazatlan 20,000
Cuernavaca 15,000
Manzanillo 12,000

Mexico may be entered by rail from the United States at Nogales, Ciudad Porfirio Diaz, Ciudad Juarez and Laredo. There are many lines of steamships from Europe, New York and Gulf ports, plying to the larger eastern coast cities. Its western coast is reached by direct steamship lines from San Francisco, Canada and one line every two weeks from Japan, calling en route at China, Hong Kong and Hawaii, and proceeding down the west coast of South America, touching at all the leading ports to and including Coronel, Chile.

XIV
CUBA

Cuba is so near to us and our commercial and political relations with it are so intimate that it is worthy of careful study. It was discovered by Columbus on his first trip to America October 28, 1498, and in 1511 Diego Velasquez was appointed its first Spanish governor. His principal task was the subduing of the warlike Carib Indians. In 1762 when Spain was fighting England and France, Havana was captured by the English who, when peace was finally declared, returned it to Spain.

Many sporadic attempts at independence were made, the earliest dating from the beginning of the last century when all of Spain’s colonies in this hemisphere revolted. None was successful, however, until American intervention in 1898 when Cuba became free and in May 1902 inaugurated her first president.

Cuba, situated in the Atlantic Ocean, but a few hours sail from Florida, is 760 miles long, slightly over 90 miles in width at its eastern end and about 20 miles at its western extremity with about 2000 miles of coast line containing many deep water harbors. Its area covers 45,881 square miles. Situated 38 miles off the southern coast of Cuba is the Isle of Pines, containing 1214 square miles, with a population of 3500, including many American colonists engaged in raising citrus fruits. The island is governed by Cuba.

The chief topographical features of Cuba are the many mountain ranges which cross and intersect each other, the eastern end being particularly mountainous, with one peak 8600 feet high. Between the mountains are many fertile, healthful and beautiful valleys and plateaus.

The climate varies from the tropical warmth of the coast to cool on the plateaus and on the mountain sides. The trade winds do much to modify the heat and add to the agreeableness of the temperature. There are two seasons, the wet and the dry, the first lasting from May to October, and the dry the remainder of the year, the average rainfall being fifty-four inches. The thermometer ranges from 60° to 92° Fahrenheit. Since the American invasion when its various cities were cleaned up and made sanitary Cuba claims to be the second healthiest country in the world, with a death rate of 12.69 per thousand as against Australia’s 12.00 per thousand.

Cuba’s population is 2,457,990, about half of whom are white and the remainder black or mulattoes. The larger percentage of her foreign inhabitants are Spaniards, who elected to remain after the close of the war, and Americans.

Her government is of the republican representative type, consisting of a President and Vice-President, elected for four years, and a Senate and House of Representatives, the Constitution being based on that of the United States.

Cuba has 2360 miles of steam railways, over 200 miles of electric systems, and 1246 miles of excellent macadamized roads, which are probably unsurpassed anywhere in the world, and are ideal for automobiling, being over sixteen feet wide.

Most of the rivers of Cuba are short, with currents too swift for navigation. Some of them can be used for short distances by shallow draft boats, a favorite means of getting sugar to ports. The Cauto is navigable for 50 miles and the Sagua la Grande for 20 miles.

Sugar is king in Cuba, the 1914 crop being worth $240,000,000, with only 4 per cent. of the available soil under cultivation, and but 172 estates growing and grinding cane.

Tobacco ranks next in importance, the annual production averaging $32,000,000. This industry is centered in the Province of Pinar del Rio which grows the famous Vuelta Abajo leaf. Much of this tobacco is made into cigars and cigarettes in the country, the local factories exporting in 1913 $13,878,436 worth while leaf tobacco amounting to $17,604,299 was shipped abroad in the same time.

Although the groves are young and have not reached full bearing yet, citrus fruits and vegetables to the extent of $10,000,000 were shipped in 1913. Pineapples, henequen, cedar, mahogany, bananas, mangoes, figs, cocoanuts, tamarinds, guavas, and honey valued at $8,000,000 are annually exported.

In 1911, there were 1074 mines registered with the government, including iron, copper, gold, mercury, lead, zinc, antimony, coal, asbestos, asphalt and manganese, the total production of which in 1913 amounted to $5,068,449, iron being the chief metal exported, valued at over $4,000,000.

Excellent opportunities exist for truck-farming, bee-culture, lumbering, and cattle-raising. Good markets for all these products prevail throughout Cuba and also in the United States.

Nearly $400,000 worth of sponges and $50,000 worth of tortoise shell are annually exported.

In 1913 Cuba exported goods valued at $165,135,059; her imports in the same year being $143,826,829. Her export trade has increased 140 per cent. in ten years and her imports 82 per cent. Since Cuba has been a republic her foreign commerce has increased 250 per cent.

The United States takes 85 per cent. of Cuba’s exports, and supplies her with about 60 per cent. of her requirements; the United Kingdom receiving 11 per cent., Germany 2 per cent., France 1 per cent., and Spain which formerly controlled this trade but four-tenths of one per cent. England exports 13 per cent., Spain 8 per cent., Germany 7 per cent. and France 6 per cent. of Cuba’s imports.

Cuba requires foodstuffs, textiles, shoes, machinery, tools, hardware, chemicals, drugs, toilet and paper materials. The main articles of import, and their value, last year were:

Potatoes $ 1,897,066
Condensed Milk 2,165,766
Flour 4,327,806
Lard 6,148,827
Hams 735,918
Wines and Liquors 1,473,391
Cotton Goods 12,648,470
Shoes 4,980,055

Cuba has just established its own coinage. Its monetary system is on a gold basis. The unit is the gold _peso_, worth exactly one dollar, United States money. A silver fractional currency, with subsidiary coins resembling our nickel, two and one cent pieces, is employed, these also being the equivalent in value of American money of the same denomination. Formerly American currency was in use, and the possibilities are that it will continue to be accepted at its face value through the island.

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Selling Latin America: A Problem in International Salesmanship.Chapter IV: Appendix: 377 (3)

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