Chapter XXXIII: South American Trade (1)

Although information and advice in regard to South American trade
have been liberally proffered in many books and magazines, and in
various addresses to commercial bodies, a few additional remarks may
be of service; as from current report, cogent need still exists to
reiterate with emphasis many suggestions previously urged, some of
these in a magazine article of my own as long ago as July, 1907, but
equally important today.

Except for certain facts of common knowledge, it would go without
saying that the first and most important point for a manufacturer to
consider is whether or not he really cares to cultivate South
American trade, and will make a determined and persistent effort to
secure and preserve it; a few occasional sales certainly not being
worth while. To form an intelligent opinion on this question
conditions must be thoroughly understood.

Commercial men should by this time be aware that in the regions to
the south business opportunities are large and are rapidly
increasing, that the population of the Latin American Republics is
above seventy millions, and that their commerce, amounting in 1912
to two and a half billion dollars, is far greater than that of China
and Japan together. In fact Argentina alone has more commerce than
either of these Asiatic countries, and Brazil has more than Japan.
Further, the ratio of increase on our South American continent is
greater than in those regions of Asia.

Next, the manufacturer should realize that the longer he delays
entering the field the smaller will be his chance of success; that
the British and Germans have long been on the ground, and that, in
spite of our fancied superiority in business methods, they will not
easily be supplanted. He should understand that the South Americans
in general are not eager to trade with us, their association with
Europe, both by blood and by steamship lines, being closer and
stronger. In some countries we are really unpopular; in others they
do not care a rap about us either way. Many Latin Americans are
distrustful and suspicious of our nation from a political point of
view. They dislike the boorish and supercilious manner of some of
our half-educated traveling, railroad, and mining men, although
Americans of broader intelligence and better manners are well liked.
Even in Peru, which country, if any, is supposed to be especially
friendly, a prominent statesman, F. Garcia Calderón, in his recent
book on Latin America, expressed grave fears of the _Yankee Peril_,
more serious than that of the Germans.

Pleasant speeches at dinner should not blur the fact that Latin
Americans are more enthusiastic about _Latin_ America than _Pan_
America. Capital, to be sure, from any quarter is welcomed in
undeveloped countries and decidedly better bargains will not be
despised. Ecuador, Peru, and Bolivia gladly accept our money for
internal development, but Brazil, Chile, and Argentina, as a rule,
get what they need from Europe, nearly a billion and a half dollars
being invested in Argentina by Great Britain alone. It is time to
realize that it is for our interest more than theirs to cultivate
friendly and commercial relations with South Americans. They will
not be neglected by others or suffer greatly if we do not favor them
with our presence and regard. To undertake the establishing of
commercial relations with the idea that it is a condescension on our
part is a mistake certain to interfere with the rapid extension of
business.

It is obvious that only those American goods which are exclusive or
which _require_ no tariff advantage can long compete successfully on
even terms abroad with European wares, now sold by active
enterprising business men determined to keep and increase their
trade.

An important and primary consideration is the willingness and
ability to conform to South American custom in regard to _credit_;
it is rulable to defer payment from three to six months after the
delivery of the goods, the price being fixed accordingly or interest
being added. Such credit, readily granted by European firms, must be
given by ours in order to secure extensive trade. In some quarters
an idea is current that South American credit is not generally good,
but shippers of many years’ experience assert that customers there
are quite as reliable and honest as those in Europe or the United
States. Furthermore, certain New York shippers take charge of and
guarantee the collections, so that no loss is possible. Where
results have been unsatisfactory it has often been due to the
incompetence or dishonesty of the agent rather than to the Latin
American with whom he dealt. Naturally suitable precautions should
be taken and careful scrutiny exercised, as not every one is honest
in any quarter of the globe.

As an aid in investigating credit, as well as for other reasons, the
establishment of _American banks_ in the various countries is an
urgent necessity. Rumors as to plans for these have long been
abroad, but as yet nothing has been accomplished. Few of our houses
may be capable of organizing a great chain of banks like that of
_London and La Plata_; those who might apparently do not wish to, or
they are awaiting the passage of the currency bill. But in any of
our large cities capital might be raised to organize a single bank
in Rio, Montevideo, Buenos Aires, or other cities, which would be a
valuable center of credit information as well as of exchange. Under
able and cautious management such banks would be of great service to
our exporters and repay the investors with 10 or 12 per cent
dividends if not more.

Much has been said about _American Steamship Lines_ as an
encouragement to our commerce. While it would indeed be a pleasure
to see the Star Spangled Banner now and again floating from
vessels in foreign ports, this is of less consequence than the
banks. If neither business judgment nor patriotism impels our
multi-millionaires to build up a merchant marine, our needs will
be supplied by others. Already we have excellent bi-weekly
passenger service from New York to Buenos Aires and every week
steamers to Rio. On the completion of the Canal we shall have
weekly service from New York down the West Coast by at least two
good lines of steamers. In addition a large number of freight
steamers is already plying to each side.

With favorable consideration in regard to embarking on foreign
trade, or even as a preliminary, some ordinary geographical
knowledge and a slight acquaintance with local conditions, easily
procured, is highly desirable. It is not a prepossessing
introduction for a gentleman to receive a letter directed “_Buenos
Aires_, Brazil or Chile,” as often happens, this being one degree
worse than if Brazil or Chile were used alone, as the former address
betrays not merely ignorance but the man’s indifference to his
display of it. The common practice of mailing letters with
insufficient postage is still more annoying, and is _absolutely
inexcusable_.

Many of our largest industries and some smaller ones already have an
excellent trade with South America, so that on the average the
United States stands third in the value of goods imported into the
various countries. Great Britain is first and Germany second. One
meets their representatives everywhere.

As from six weeks to three months will pass before an answer may be
received to one’s letter addressed to the United States Consul
resident in the various countries, it is the more important to learn
as much as possible at home of the character of the different
localities, the variety of climate and productions, the condition of
the people and their requirements; some of which information may be
found in the valuable monthly _Bulletin of the Pan American Union_,
in the excellent Semi-Monthly, _The South American_, and in the
multitude of books recently written on the various countries.

With even the slightest knowledge one might avoid the absurdity of
sending lawn mowers to Iquique, a barren desert where for the few
and expensive plots of grass not only the water but the soil is
imported; or rubber boots to Lima, where only a slight drizzle is
ever experienced and small probability exists of need in the back
country; or old-fashioned chandeliers on a three-foot stem to places
where electricity is employed or where the ceilings are 15 feet
high. If ordinary precautions had not been ignored, it would seem
foolish to say that before shipping goods one should ascertain
whether such articles are wanted in that locality.

It is well to note that except in the case of some novelty, the
people know what they want and insist upon having it. They will not
take what _we_ think they ought to want or what is convenient for us
to send. The Latin Americans are quite as fashionable and up to date
as we are; the Indians, on the contrary, want the same thing year
after year and for centuries. If their trade is desired their taste
must be catered to, for others are ready to supply what they want if
we do not.

_Permanent_ commercial interests alone should be sought. Great
injury has been inflicted upon the reputation of our merchants by
the unjustifiable conduct of manufacturers, who in dull times have
sent men abroad to take orders; then, business at home reviving and
rush orders being received, they have turned back to their old
customers, ignoring the new and leaving _their_ orders unfilled,
careless of their embarrassment and inability to supply their needs
from any local market. Such trade permanently reverts to the British
dealers upon whose steadiness they can rely.

It would seem a gracious act if some of our large manufacturers,
instead of wanting the whole earth, should cultivate the South
American trade, certain to prove profitable, and leave some of their
home market to be taken care of by smaller people not so well
prepared for the conquest of distant fields.

The _changeableness_ sometimes exhibited seems extraordinary. An
American in Bolivia engaged in a large business with Indians, after
much urging and time spent, was persuaded by a traveling man from
New Orleans to give him an order for a thousand dollars’ worth of
goods to be delivered within six months. About the time they were
expected, the American received a letter saying that the firm had
concluded not to fill any orders to Bolivia!

A difficulty frequently experienced where cash sales have been made,
and an excessive annoyance to the purchaser, is that a draft sent at
the same time with the goods if not earlier reaches the consignee a
week, a month, or more before the arrival of the merchandise. A
month’s interest is lost by the purchaser, with the goods not in
hand. When they do arrive they are often not as ordered, deficient
in quantity and quality, and naturally that is the end.

It should be superfluous to say that merchandise should be up to the
_quality_ of the _sample_, but not so. Such happenings, common at
home, will not work abroad where the tariff is level and competition
free.

Further, the goods must be precisely _like_ the sample, not even
something better. Men who order two-wheeled vehicles do not want
four-wheeled. The latter in some sections are impossible. The
assumption that people do not know what they want, or the
carelessness which permits of gross mistakes in shipping goods
thousands of miles is evidence of crude business ideas and methods.

In most sections a slight difference in price is not so keenly
regarded as the quality of the goods and the _steadiness_ of price.
It is more agreeable to them that an article should be sold for 30
cents through a period of years than that it should vary from 25 or
28 cents to 32.

_Careful packing of goods_, a matter of the greatest importance, has
for years been continually urged, without avail or with but slight
improvement. It is as true now as seven or eight years ago that
packages from the United States on the dock in South American ports
may be picked out on account of their disreputable appearance. Boxes
splitting open, bags and bales ripping apart, many goods lost or
ruined, is the continual complaint. Of course there are exceptions.
Some houses may have reformed.

A United States official, writing for goods to his New York
druggist, charged him particularly about the packing. The bottles
arriving in a pasteboard box were broken. Again he tried with
definite instructions and the same result. The next order went to
England, where it was properly filled.

The persistence in _ignoring expert advice_ is extraordinary. Agents
in South America often send explicit directions as to packing, the
size and weight of boxes, etc., without the slightest effect. Goods
are dispatched in a 500 or 1000 lb. box to a region where they must
be transported on the back of llamas, whose load is 100 lbs. The box
is left on the dock or at the railway station; the goods are never
used.

New York shippers report that much freight reaches them in a
condition impossible to embark on the long journey. It must be
refused or repacked. These are curious commentaries on the
supposedly superior business ability of Americans. The splendidly
bound boxes and bales of British goods are in striking contrast.

On the East Coast transportation by water and rail is general,
though not complete. On the West, Chile is well served with
railroads, Bolivia’s are rapidly developing, but an enormous region
remains, especially in Bolivia, Peru, and Ecuador, where
transportation by mules, burros, llamas, and Indians will long
continue to be the only methods.

A material factor in securing South American trade where agents are
employed is the sending of _suitable_ and _competent men_. One of
our largest houses, noted for the rather superior quality of its
salesmen, admitted that _they_ had by _experience_ discovered that
some who were very good salesmen here did not succeed there.
Precisely why Americans should be so reluctant to follow advice from
experts on subjects of which they are ignorant is a puzzle; but it
is a fact that the preaching of many men for many years seems
largely to have fallen on deaf ears. We should comprehend that South
Americans are not ignorant barbarians, that in general they have
more culture, often more education, than our business men, that
their manners are much better, and that if we desire their business
we must adapt ourselves in some degree and treat them with courtesy
and not arrogance. To speak of them as monkeys, savages, and dagoes,
even so as to be overheard, to commit other acts of unpardonable
rudeness in churches and elsewhere, boorishly to inform them that
they are half a century behind the times, are acts which might seem
incredible but are by no means rare. A man who is thoroughly
convinced of his own superiority and who regards the courteous
amenities of life practiced by Latin Americans as silly and time
wasting, as an evidence of insincerity and of a lack of practical
common sense, who fancies himself above the conventions of dress and
manners as practiced in the cities visited, and as they are in
Europe, who would rush and push his wares is likely to make an
unfavorable impression and to learn that more haste is less speed.

It should be obvious that to accomplish much a man _must speak the
languages_ of the countries visited. What success would a man
speaking no English have in the United States? Spanish is current in
all the Republics save Brazil; there it is understood by all persons
of education, and may do fairly in the large cities; but for an
extended tour or a long stay in Brazil a knowledge of Portuguese is
essential.

_Two extremes_ are noticed by the observant traveler in South
America, each of which appears objectionable. Some American goods
are sold at one-half or one-quarter of the home price; which might
cause the disinterested layman to conclude that our tariff needed
revising; other articles are sold at double or triple the price at
home (not always the fault of the duty), a practice in the long run
likely to prove unprofitable. Thus a popular sewing machine was
bought a few years ago in Arequipa at one-fourth the price in
Boston. White paper made in the United States is cheaper in Chile
than in Chicago. On the other hand, in La Paz, shoes worth $2.50
cost $5.50 to $6.00, kerosene oil sold at about $5.00 for a case of
10 gallons, a can of corned beef costs 80 cents; and ham, 60 to 80
cents a lb. The last, put up by a Chicago packer, could be purchased
more cheaply at retail from an English firm, having come by way of
London, than at wholesale from the Chicago agent on the ground; and
the home office would not take a direct order. Whether the price was
according to the plans of the home office, or the idiosyncrasy of
the agent anxious to make his fortune in a hurry, is unknown. That
some agents are arbitrary in their charges might be judged from the
fact that boots sold at Mollendo for $5.00 a pair were priced in La
Paz at $14.00.

The _sharp practice_ of some salesmen is greatly to the disadvantage
of others. The man who sold a snow-plow to some one on the coast
lands of Peru on the plea that the climate would change on the
completion of the canal no doubt prides himself on his smartness,
indifferent to the fact that he has done much to discredit Americans
in all that region. Many seem to think that patriotism consists
simply in “blowing” about their country; that they might do it a
better service by honorable conduct and courteous demeanor does not
occur to them.

I have heard that in many places on the plateau, as probably in the
interior, it is customary to charge the poor Indians who earn but 50
or 75 cents a day double the already high price which a white man is
asked for the same article, a sample no doubt of the justice and
fair dealing for which we are told that men are distinguished, but
in which women are said to be lacking.

Ten dollars a day has been allowed as a suitable sum for _traveling
expenses_, and one following the railroads and not being burdened
with heavy samples might find this sufficient. In the interior where
many pack animals must be employed, or with a large supply of
baggage to go by rail, and in Brazil and Argentina where heavy
license fees must be paid, the fifteen dollars a day asserted by a
recent traveler to be necessary may be desirable. It depends, too, a
good deal upon the skill and character of the man.

The _tax on commercial travelers_ who sell goods or who merely
exhibit samples and take orders is an item to be considered in
connection with other expenses. In some countries a separate license
must be obtained for each Province or Department, corresponding to
our States; in others for each Municipality. A few countries, more
liberal, exact no fee whatever.

Beginning with _Ecuador_, $50 is here charged for one visit.

In _Peru_ no license is required for commercial travelers, but there
are certain regulations as to samples. If they are such as would
enter free of duty no charge is made. If the articles are dutiable,
one of each kind and variety is permitted free entry, providing the
importer presents in duplicate an itemized description of packages
and articles, pays the duty in cash or with bank draft, and within
three months exports these samples, thereupon receiving back the
cash or bank draft which he has deposited. Should there be any
deficiency or substitution of articles, double duty will be exacted
and the article substituted will be confiscated.

If samples enter Peru by Mollendo to go to Bolivia, not to return by
the same route, they are dutiable, unless the Peruvian Consul in La
Paz sends a certificate that the samples have entered Bolivia. The
duty previously paid is then refunded. A fee of $12.50, U. S. gold,
is charged by the city of Arequipa as a license in that particular
section.

_Bolivia_ is a more expensive country to visit and for that reason
is omitted from the itinerary of many travelers. The policy of the
Government seems particularly injudicious in view of the fact that
their country is out of the way, that it has no great cities, and
that large sales are required to cover the additional time and cost
of the journey even without the considerable fee exacted.

Further, each municipality collects a fee for itself; there is no
general tax. The fee varies according to the class of goods but in
general for La Paz, the chief city (pop. 80,000), is 300 _bol._ or
$116.70 U. S. gold; never more. The authorities of Cochabamba are
said to charge 1000 _bol._ for the privilege of selling in their
pretty city, while Oruro demands but 100 _bol._ As to other cities
inquiry must be made in the country. There is talk of reducing the
Cochabamba fee and perhaps the Bolivian Government will soon realize
that the country will do better to adopt the more liberal policy of
her neighbors, Peru and Chile. It should be added that if two
persons go together as representatives of the same house each one is
obliged to pay the tax.

_Chile_, like Peru, is extremely favorable to the commercial
traveler, requiring no permits and no duty on the samples, unless in
whole pieces of stuff or in complete sets of objects. Six months are
allowed in which to reship samples free of duty.

The sections of the East Coast are much more exacting.

_Argentina_, noted for high prices generally, also has large license
fees; these not for the country as a whole, but for each individual
State or Province. A license covering the Federal Capital, Buenos
Aires, costs 500 Arg. _pesos_, paper, $212.30 U. S. gold, and is
good for one year. Each State has its own additional charge, mainly
good for a whole year, though a few have half rates for six months
and one or two, monthly licenses. These permit either selling goods,
or showing samples and taking orders.

Not to enumerate all of the various districts it may be said that
the fees vary from nothing in Neuquen to 1680 _pesos_, about $700 U.
S. gold, in Salta; all of the remaining fees except those of
Tucumán, Entre Rios, and Mendoza, which are 600 _pesos_ ($255),
being less than that of Santa Fé, which is 400 _pesos_, about $170,
per annum. Samples of no value pay no duty; on others the duty which
is paid is refunded if the samples are exported within six months.
In some places a difference is made in the license fee if but one
line of samples is offered.

In _Paraguay_ license fees are charged in each of the five chief
cities, varying, according to the importance of the firm
represented, from $84 gold to $385. At other points, the license is
one-third the amount in these cities. An advisory board of merchants
fixes the class to which each traveler belongs, five classes
altogether. No extra charge for representing more than one firm. No
distinction for selling without samples. No tax for samples if taken
out within six months.

_Uruguay_ is said to charge 100 _pesos_ or $103.42 U. S. gold, for
the calendar year, the license expiring December 31. Application to
the Chief of Police of Montevideo on paper with a 50 cent stamp
being made, the certificate issued must be presented to the
Director-General of Indirect Taxes to obtain the required license.
Samples entered under bond are not subject to duty. According to the
Consul General of Uruguay a license for the city of Montevideo only,
all that most persons care for, is issued for ten _pesos_, $10.35.

_Brazil_ requires no federal tax of commercial travelers but the
States and cities more than make up this deficiency. As a milreis is
practically 33 cents, or three milreis about one dollar, only one
figure need be given.

Pará charges 300$ (i.e., milreis) as a State tax per annum, and 365$
for the city on each visit. If goods are actually sold, trader’s or
hawker’s license is also required.

In Pernambuco there is no State tax, and but 53$ for the city of
Fortalezain Ceará.

Bahia charges 100$ for a yearly license, but it must be renewed if
one leaves the country and returns.

No license is required in Rio unless goods are sold, when a trader’s
license is necessary.

São Paulo State has no tax but the city has a fee of 1000$ and the
city of Santos 500$.

The State of Rio Grande do Sul has a tax of 150$ for selling in
cities, 100$ for towns, 80$ for other places. The cities of Porto
Alegre, Pelotas, and São Gabriel exact each a license fee of 200$,
Uruguayana 300$, Bage 800$, São Borga 60$.

A power of attorney is generally necessary if agents are to receive
money, this to be filed with a notary public who supplies copies in
Portuguese on request.

Samples of no value pay no duty, but if worth more than one milreis
duty is levied. The amount is deposited in the Custom House and if
the goods are checked and sent out from the same port the duty will
be returned.

The Central Railway has a mileage book and the Leopoldina Railway
gives a discount of 20 per cent on samples and on fares of
travelers.

Information on various matters may be found in the latest Exporters’
Encyclopædia; and is furnished to members by the Pan American States
Association, the National Association of Manufacturers, and the
American Manufacturers Export Association.

As to the resources of the South American countries and the variety
of goods which may be exported thither to advantage, these things
are set forth in detail in many books, in consular reports, and in
back numbers of the Pan American Bulletin, to be found in our large
libraries. I have here space for a few remarks only. Since the
continent as a whole is still thinly settled and largely
undeveloped, its productions and exports are chiefly mineral and
agricultural, its imports manufactured goods, as is the case
generally with young countries. Conditions in some respects resemble
those in the United States half a century ago. Everywhere railways
are being laid, and bridges built; towns are needing sewers,
electric lights, street cars, and all modern improvements. The great
cities are for the most part supplied with these, but many smaller
ones are thinking about them or have merely made a beginning.

Material and equipment for the building and operation of railroads
are needed in every country, bridge building material as well. Our
steel men, our locomotive and car builders have been wide awake to
such matters and are doing excellent business in some of the
countries. Where, as in Argentina, most of the railways are financed
with British capital, Americans have less chance in proportion than
in those countries where American capital is considerably employed,
as in Ecuador, Peru, and Bolivia.

Agricultural machinery of almost every kind and agricultural tools
are in great demand on the East Coast, on the vast estates of
Argentina, to some extent in Uruguay and Brazil. They have a smaller
sale on the West Coast, where mining machinery is one of the prime
necessities. Electrical apparatus of all kinds is everywhere needed
and is largely supplied by the General Electric and other companies.

Although most of the countries have coal, the mines are not greatly
developed except in Chile; hence much is imported; a good deal of
lumber also, in spite of immense forests, as yet unavailable save in
a few localities.

In all of the countries the chief import is textiles, principally
from Europe, though the United States furnishes a good deal of the
coarse grades of cotton, canvas, etc. Industrial machinery,
automobiles and other vehicles, utensils, hardware, corrugated iron,
sewing machines, paper of various kinds, motors, scales and
balances, surgical and mathematical instruments, pianos and piano
players, petroleum, gasoline, etc., lubricating oils, typewriting
machines; canned goods, particularly on the West Coast, including
milk, meat, and salmon, especially for miners, also used in the
rubber country; leather goods, boots and shoes, watches, soap,
druggists’ supplies and medicines, lard, twine, motors, dynamite,
arms and ammunition, fence wire, pumps, pipings and fittings, tin
plate, glass, porcelain, watches, phonographs, photographic
material, and all kinds of novelties and general merchandise are
among the articles imported; a few animals, chiefly blooded stock
from Europe.

Should one desire to engage in business for himself in any of the
Republics, there are good openings for persons with capital who
speak the language. Persons without money are warned by our consuls
not to go, unless they have a definite engagement or are specialists
in certain lines where experts are pretty sure to be desired.

It is unwise to trust implicitly the stories about wonderful mines,
though these doubtless exist. If genuine, they are often impossible
to exploit without an enormous outlay of capital as was the case
with the Cerro de Pasco mines; moreover, as thousands if not
millions of people have been deceived about mines in the United
States and in regard to many other money-making schemes, it is still
more foolish to give credence to tales promising untold wealth in
those distant countries. With the best of intentions the enthusiast
is liable to be mistaken and deliberate fraud is common; therefore,
caution is ever needed. Yet with careful investigation opportunities
in almost any line may be found in some one of these rapidly
developing countries, superior to those afforded in more thickly
settled regions of the earth.

CONCERNING THE COUNTRIES INDIVIDUALLY.

=Ecuador.= In Ecuador, it may be noted, the United States stands
second among importing nations. As a place for investment,
enterprise, and residence, it has advantages and disadvantages. The
coast region, on account of excessive rainfall, humidity, and heat,
has a less agreeable and healthful climate than the rainless
Peruvian shores with their moderate temperature; malaria and yellow
fever being endemic in Guayaquil, though probably not everywhere on
the coast.

The sierra and _montaña_ regions of the two countries are quite
similar, the high valleys of the sierra district enjoying a
healthful and delightful climate. The natural resources resemble
those of Peru, although the chief exports are dissimilar. Ecuador’s
cocoa plantations are her largest source of wealth and supply her
principal export. Vegetable ivory, fruit of the tagua palm, is
another important article of production, most useful in making
buttons. The manufacture of Panama hats is an industry long
flourishing. Some coffee and rubber are exported, also hides; and
sugar cane is raised. Rich mineral resources are undoubted; gold,
mercury, copper, iron, coal, lead, platinum, and silver; these still
undeveloped; petroleum and sulphur are found. Many manufacturing
industries are carried on in a small way, but such goods are mainly
imported: textiles, food stuffs, clothing, drugs, boots and shoes,
paper, leather, crockery, vehicles, etc., are some of the
importations, with material for railroad building and rolling stock.
As the development of the country is regarded as twenty-five years
behind that of Peru, it would naturally afford better opportunities
in some directions and poorer in others. Railroads are planned in
several directions.

=Peru.= The Republic of Peru presents probably the greatest variety
of climate, soil, and productions, to be found in any portion of the
globe. Along its 1200 miles of coast may be raised in the irrigated
valleys nearly all tropical and temperate products. In the sierras
will be found practically every variety of mineral, and in one place
or another climates to suit every taste. Whatever one may desire is
therefore to be procured within its borders, although not all points
are equally accessible.

The coast lands present unique advantages for agriculture, in that
the climate may be depended upon; there is no fear of drought, of
sudden storms, or of frost, and though within the tropics there is
no excess of heat.

Of 50,000,000 acres capable of irrigation in this section but
2,000,000 now have the facilities, and of these not all are
employed; hence there is ample room. The difficulty is lack of
capital and sometimes of labor.

The chief export of Peru is sugar; and if our Louisiana planters on
account of tariff reduction feel like making a change, they will
find in Peru an ample field where four tons to the acre are produced
and a price of 1½ cts. a lb. will bring a profit.

Cotton plantations offer excellent opportunities; the best qualities
grow well, Sea Island, Upland, etc.; also the native Peruvian which
brings the highest price of all, being hardly distinguishable from
wool. Yet, as it takes several years to come into bearing (it lives
10 or 15 years), the Upland which bears in six months is preferred
by many. In southern Peru vineyards and orchards are a specialty,
fruits most delicious, figs, melons, grapes, chirimoias, olives, and
paltas, with vegetables, and with alfalfa, wheat, and maize. Tobacco
is raised in various sections and coffee in many, none finer in the
world.

The sierra country is full of minerals: gold, silver, lead, copper,
quicksilver, tungsten, cinnabar, vanadium, anything you can mention.
Every kind of coal is found, though as yet the mines are mostly
undeveloped for lack of transportation facilities; oil of fine
quality exists along the coast in Tumbes, in Puno near Lake
Titicaca, and in other sections; borax in the Arequipa district;
iron in many quarters; peat in Junín. On the plateau, besides
minerals galore, are excellent cattle lands; many sheep are raised,
Scotch shepherds and collies here looking after them; the native
breed is crossed with imported merinos, making good stock,
furnishing 5 to 8 lbs. of wool per head. Alpacas every two years
yield from 6 to 9 lbs. of better wool, while the vicuña furnishes a
smaller supply of still finer grade.

The east side of the mountains is rather difficult of access, but
not too far down, affords a delightful climate; a colony willing to
work would find pleasant homes in various localities. In valleys
near Cuzco is the finest of cocoa, in the Chanchamayo or Perené
Valley back of Lima and Oroya are millions of coffee trees, lower
down is plenty of rubber. Some is exported by way of Mollendo from
the Inambari, Timbopata districts, more by Iquitos and Pará from the
Ucayali, the Putomayo, and other sections. While men frequently say
that they do not go to such countries for their health, it is indeed
a pity that some seem to forget that they are human beings and treat
the inoffensive natives in a manner far worse than savages. In these
regions the heat and humidity are unpleasant and in limited sections
unhealthy, though the dangers are by some over-estimated. Many
papers and magazines publish sensational stories of adventure, often
knowing them to be exaggerated; all books do not justly represent
conditions. Many stories of hardship, when true, are merely evidence
of ignorance and bad judgment, utterly foolish conduct quite
inexcusable, in sections where others have experienced not the
slightest difficulty.

Persons with moderate capital not interested in mining or
agriculture might find it profitable to undertake manufacturing in
certain lines. There are now in the country a few factories for
cotton, woolen, biscuit making, chocolate, fruit preserves, cocaine,
and matches; also flour mills.

There is opportunity for electrical power in many places, for
installing electric lights, sewers, water pipes, etc.

Provisions are in certain sections extremely cheap, in others very
dear, on account of transportation difficulties. Lima is called
expensive and it would seem that eggs and chickens might be
profitably raised near by, also dairy products and other supplies.

At present the chief exports from Peru in the order of their value
are minerals, sugar, cotton, rubber, wool, petroleum, guano, Panama
hats, hides and skins, ice, cocaine, coca, coffee. The leading
imports are textiles, coal, machinery, etc. from the United States,
machinery, wood, drugs, meats, bread-stuffs, shoes, coal, hardware,
arms and ammunition, soap, vehicles, instruments and apparatus,
general merchandise.

It should be noted in connection with Peru, that machinery and
supplies for railroad construction and for mining are admitted free
of duty; also as an item of great importance, that the export tax on
rubber is less than one-quarter of that exacted by Brazil and a
little smaller than the one fixed by Bolivia. For this reason the
country is especially favorable for the extension of the rubber
industry.

=Bolivia.= The products of Bolivia are like those of Peru except
that its agricultural resources are as yet little developed. Hence
there is more importation of food stuffs; flour is an article of
export from the United States, as well as preserves and suet. Canned
stuffs are useful to the mining and railroad people. Cartridges,
leather goods, soap, kerosene, furniture, clothing, dynamite,
firearms, copper wire, iron and steel, vinegar, Florida water, wood,
agricultural tools, mining machinery, lard, cotton, cameras, sewing
machines, typewriters are other imports.

Bolivia presents excellent opportunities for mining. Tin of first
importance, silver, copper, and bismuth are now the chief mineral
exports, although rich deposits of gold are attested.

The _montaña_ country presents conditions similar to Peru, for the
rubber industry, for the raising of coffee, coca, quinine, and other
products. A grain called _quinua_, cultivated on the plateau, is
said to be more nutritious than wheat. The alpaca and vicuña here
flourish, the former supplying 15 lbs. of wool every other year.
Persons who find the plateau region cheerless might enjoy the
agricultural section part way down the eastern slope of the
mountains; thus a San Francisco gentleman, many years resident of
the Garden City, Cochabamba, over whose climate and future prospects
he speaks with enthusiasm. Tarija, farther south, has a delightful
climate and equal prospects.

One American living on the plateau has been doing a thriving
business by making monthly trips to the interior 150 miles to the
east, selling goods at the _haciendas_ and the Indian villages,
$10,000 worth on a trip, and bringing back fruit and vegetables to
the cities above.

The several lines of railway just completed and several more in
construction make certain the immediate development and rapid
progress of this country. The possibilities for the production of
wool are very large and also for cattle raising. The climate of a
large part of the country is healthful and agreeable, and residence
in La Paz and other cities is enjoyed by many Americans. Bolivia’s
rapid development and prosperity is assured.

=Chile.= The country of Chile, curiously unique in shape, being
excessively long and thin, extends over 2000 miles from north to
south, with a width of from 105 to 248 miles from east to west.
Although so narrow, it has each way three well marked divisions:
from north to south, the rainless, desert and nitrate region, within
and near the tropics; the temperate central section, a rich
agricultural district with considerable rainfall; and the southern
portion, with too much precipitation, rain, snow, and fogs, largely
a forest land with some swamps and grazing country. Along the entire
shore runs the Coast Cordillera with an altitude ranging from 1000
to 6000 or 7000 feet; then comes a plateau or valley, in the far
south a drowned valley with straits and fjords, and at the east the
great Andes Mts., the height of which forms the eastern boundary
line.

A variety of climate and scenery is obviously presented, agreeable
to dwellers in the Temperate Zone. Aside from the strictly tropical
productions, almost everything found in Peru and Bolivia is here
provided; minerals galore, especially copper, iron, and coal, with
gold, silver, etc., in addition to the world famed nitrates, and
iodine. Petroleum and natural gas have recently been discovered.
Noted, like California, for its fine fruits and vegetables, the
central section affords ample field to increase their production.
Here, too, the raising of grain and of forage plants is extensively
practiced; stock farming is a great source of wealth, Chilian horses
are of noted excellence, and cattle flourish. Viticulture and
apiculture are profitable, the export of honey being important. At
the south, the growing lumber business offers a fine field to
experts, as well as the valuable fisheries. The already large sheep
raising interests are chiefly in the territory of Magellan. The
canning industry both as to fruits and fish may be developed with
great profit. Manufactured goods are produced to the extent of
$130,000,000 worth a year. Railway building, which has been rapidly
progressing, will for some years continue to be an important field
of labor. The Government has planned to expend within this decade
many millions of dollars for public works, hydraulic and maritime,
for irrigation, public buildings, and railways.

The imports include such things as sugar and coffee, also petroleum
from Peru; from the United States, mineral products, especially
steel and coal, with machinery of various kinds, paper, vegetable
produce, textiles, chemicals, etc.

Presenting conditions similar to our own West Coast, including the
earthquakes, the British and German settlers in the country have as
much enthusiasm for their new home as have immigrants to California.
In scenery, climate, and opportunities, Chile offers unusual
attractions.

I had forgotten to state that valuable oyster beds exist in the Gulf
of Ancud, and that on the island of Chiloe two crops a year of
excellent potatoes may be grown.

=Argentina.= Argentina with its great plains is entirely different
from the West Coast countries. From its configuration, its
development, especially its railroad building, has been a far
simpler proposition. It was easy to raise cattle and with the
profits thus obtained to cultivate immense agricultural properties.
Almost every kind of vegetable production is to be found in this
great Republic, and the rewards of agriculture and stock raising
have been quite equal to the wealth of the mines elsewhere and far
more useful.

The plague of locusts is an occasional drawback, but not serious
enough greatly to interfere with the grand total of production. As
the boundaries on the west extend along the height of the Andes,
some mineral wealth exists on their slopes, but the possibilities in
stock and wheat raising have been too attractive for much attention
to be devoted to mining matters. The agricultural products, wheat,
oats, and linseed run up into millions of tons; the quantity of
exports of these surpasses in value those of the United States,
while that of meat exported is vastly greater. With their small
population relative to the extent of territory it is certain that
for many years Argentina will raise cattle and sheep enough to help
out the more thickly settled portions of the globe. To enter into
such enterprises today of course capital is needed, though some of
the present day millionaires went thither with nothing and worked
their way to fortune. Wages for mechanics are good, and in some
other lines, but expenses also are large. According to the number of
inhabitants Argentina has more railways than the United States,
though not in proportion to the extent of territory. Almost
everything is imported into the country except meat and agricultural
products, our share of the imports being less than half that of
Great Britain.

The northern and southern sections of Argentina still afford
splendid opportunities to the pioneer, presenting a wide choice of
climate and variety of employment. In the tropical and sub-tropical
regions of the north are immense forests for exploitation with
quebracho, laurel, palms, and woods in endless variety, lands
suitable for the culture of coffee, sugar cane, yerba mate, cotton,
rice, hemp, mandioca, and banana, and in places farther south or on
uplands, soil for barley, wheat, corn, alfalfa, tobacco, the vine,
etc.

The central pampa is of course the especial region for cereals,
wheat, corn, and flax, and this is not entirely pre-empted. In
Patagonia at the south there is a great field for raising cattle,
sheep, goats, horses, guanaco, and the ostrich, as for alfalfa,
wheat, and barley, though in the greater part irrigation is
necessary for agriculture. With moderate capital pioneers of
experience and skill should be able to amass large fortunes.

From lack of coal, if not of water power, it is probable that
agricultural and animal products will long continue to be the chief
exports of Argentina and that manufactured goods will be the
principal imports. Textiles and manufactures of these are of the
greatest value, iron and steel articles come second, railway cars
and equipment and other vehicles third, then come building
materials, earth, stone and coal, and so on, every kind of
merchandise in use in a civilized country. Goods that sell in New
York and Paris are likely to sell in Buenos Aires, only—the Pure
Food Law is strict. Chicago hams are barred, though British hams are
admitted.

Our farming machinery and tools have been largely sold, yet by some
the machinery is called too light to last and an English make is
preferred. An Australian machine, called a _cropper_, a thrasher and
harvester combined, has been received with much favor. Duties
generally are very high.

For successful competition in foreign markets, the highest grade of
our goods must be presented and business contracts strictly carried
out.

=Paraguay=, with a healthful sub-tropical climate, possesses
splendid forests with woods similar to those of the Argentine Chaco,
great plains supporting many herds of cattle, and land capable of
producing excellent cotton, tobacco, fruit, and all kinds of
tropical growths. The _yerba mate_ which grows wild, but may be
cultivated, is one of the chief exports, bound to increase rapidly,
as the beverage, more healthful than tea or coffee, is extremely
popular even with the European immigrants, and in foreign countries.
Hides, quebracho extracts, and timber are exports of still greater
value. The character of the imports is much the same as in the
neighboring countries. Railroad building is going on, and in spite
of recent war, internal development is in progress. Railway material
is free of duty as is the case also with agricultural and industrial
machinery, ship building material, wire fencing, etc.

=Uruguay=, with a fine temperate climate and a pleasant rolling
country, is attractive to settlers with an eye to cattle raising or
agriculture. Americans of this class, as well as business men and
investors in any line, are cordially welcomed by Uruguayans, and
finding the atmosphere more homelike than in some other places they
are well content to stay. While agriculture and the live stock
industry are the chief activities, there are local manufacturing
interests which do not, however, begin to supply the market. Railway
extension is in progress, and the navigable rivers are an important
accessory.

By far the greatest export is animal production, including wool,
skins and hides, meat and meat extracts, etc., while agricultural
products are a distant second.

The imports are similar to those of Argentina, including practically
everything which it does not export.

=Brazil=, like Peru, embraces within its borders an immense variety
of resources, and a considerable though smaller diversity of
climate. On the highlands of the tropics it is comfortably cool, as
well as in the south. In many quarters it is temperate and even
subject to frost, in a few places to snow.

The magnitude of its wealth in rubber, coffee, and all tropical and
sub-tropical productions is well understood; the richness of its
mineral deposits is less known. Still less perhaps is the fact that
Brazil is larger than the United States proper, and that it contains
six cities of 100,000 or more population, including one of 400,000,
São Paulo, and Rio with approximately a million.

Everything is included within her boundaries, and whatever one’s
taste in business, apart from polar exploration, there is room for
its gratification here—opportunities for the settlement of colonies
in delightful climate and surroundings on the richest soil, if
persons care to indulge in agriculture, and locations equally
favorable for entering into mining or commercial industry. Cattle
raising is a growing occupation. Food stuffs in Rio being very dear,
market gardening could be engaged in to excellent advantage in many
spots on the highlands at no great distance by rail from the
capital. A similar opportunity exists near Buenos Aires, though as
land in the vicinity is held at a high price it would be necessary
to go farther out on the railway, or across the river into Uruguay.

The coffee plantations of Brazil are already so extensive as to make
entrance into that business undesirable if not impossible, except by
the purchase of plantations already in bearing. Aside from coffee
and rubber, the chief agricultural products are rice, cotton, sugar,
_yerba mate_ or Paraguay tea, mandioca, and cacao, or cocoa. Many
manufactured goods are now produced, mainly of the ordinary
necessities of life, leaving plenty of room for importation. It is
desired to increase such industries. Inducements are offered by the
Federal Government for establishing ironworks, the State of Rio has
granted large privileges to the first flour mill, and a subsidy to a
firm making paper from the reed _papyrus_ which grows all along the
coast. Manufactures of rubber would be very profitable on account of
the 20 per cent export tax on rubber and the high tariff on imports.
Steam laundries, fruit canneries, chemical works, and other
industries may be inaugurated to advantage in various places.

From the United States is imported a great variety of articles,
railway cars and locomotives, automobiles, machinery of many kinds,
sewing machines, typewriters, apples, general merchandise, and other
articles without end.

Railways are being rapidly extended and planned for the future, and
aside from the rubber business every kind of industry and commercial
activity may be pursued amid agreeable and healthful surroundings.

* * * * *

It is desirable that one wishing to enter into business of any kind
in South America should make the tour and see for himself the
character of the country and the opportunities offered. At the very
least, he should read a number of the many books which have been
written, although some of these contain a few errors and others
which have been published ten years give wrong ideas on account of
the rapid changes; from perusing several of the latest works a fair
idea of conditions will be gained. Also the poor consuls will be
grateful, both those of the United States in foreign countries and
_their_ representatives here, if people will at least use an atlas
and a geographical reader if nothing more before writing letters, so
that they will not bother these hard-worked officials with
absolutely foolish questions. It should not be necessary for consuls
to give information which every schoolboy _ought_ to possess,
although I fear he does not.

When children and grown people are ignorant of the names of the
capitals of the various States in the Union, it is perhaps too much
to expect them to know whether Lima is on the East Coast or the
West, or whether Argentina is a breakfast food or a fish. If my
labors incite others to seek further information and especially to
make the delightful South American Tour, I shall feel that I have
performed a genuine service.

------------------------------------------------------------------------

BIBLIOGRAPHY

A list of some recent books on South America is appended. By no
means complete, it includes works for the most part easily
obtainable. While some of these present merely superficial
observation, and few profess to be exhaustive, all to the average
reader will be more or less instructive and entertaining. A
legitimate difference of opinion exists as to people, places, and
possibilities; other contradictory assertions arise from too hasty
judgments. Errors, however, are generally of minor importance,
although in some cases wrong impressions of people and places are
conveyed. On account of rapid changes the books published within the
last five or eight years are especially valuable; yet some of those
earlier written supply important information on particular subjects.
To gain a fair idea of the various countries several general works
should be read and a few of those on the individual Republics.

Monographs on each of these, published by the Pan American Union,
may be procured at $1.00 a copy.

The large and handsomely illustrated volumes on Peru, Bolivia,
Chile, and Brazil by Marie Robinson Wright, with some negligible
extravagance of compliment, contain much that is of value and hardly
procurable elsewhere; historical information and descriptions of the
general aspect, the resources, and the conditions of the various
countries, presented with unusual fulness, accuracy, and elegance.

SOUTH AMERICA IN GENERAL

PAN AMERICAN UNION—PEACE, FRIENDSHIP, COMMERCE. John Barrett.
Washington, Pan American Union. 1911. $1.00.

LATIN AMERICA, ITS RISE AND PROGRESS. F. Garcia Calderon. New York,
Charles Scribner’s Sons. 1913. $3.00.

SOUTH AMERICA. William D. Boyce. Illustrated. Chicago, Rand, McNally
& Co. 1913. $2.50.

ACROSS UNKNOWN SOUTH AMERICA. W. Savage Landor. Boston, Little,
Brown & Co. 1913.

THROUGH SOUTH AMERICA. H. W. Van Dyke. New York, Crowell Publishing
Co. 1912. $2.00.

SOUTH AMERICA, OBSERVATIONS AND IMPRESSIONS. James Bryce. New York,
The Macmillan Co. 1912. $2.50.

SOUTH AMERICA. Forrest Koebel. With colored illustrations. New York,
The Macmillan Co. 1912. $5.00.

A WOMAN’S WINTER IN SOUTH AMERICA. Charlotte Cameron. Boston, Small,
Maynard & Company. 1912. $1.50.

HISTORY OF SOUTH AMERICA. C. E. Akers. New York, E. P. Dutton & Co.
1912. $6.00.

SOUTH AMERICAN ARCHAEOLOGY. T. A. Joyce. New York, G. P. Putnam’s
Sons. 1912. $3.50.

SOUTH AMERICAN PROBLEMS. Robert E. Speer. New York, Student
Volunteer Movement. 1912. 75 cents.

SOUTH AMERICA TODAY (ARGENTINA, URUGUAY, BRAZIL). G. E. B.
Clemenceau. New York, G. P. Putnam’s Sons. 1911. $2.00.