Chapter V: Part II: Student Reports (1)

THE ECONOMIC HISTORY OF VENEZUELA

REFERENCES USED.--History of South America, W. H. Koebel; With the Trade Winds, Ira Nelson Morris; The Land of Bolívar, Statesman's Yearbook, 1918-1919; Reports of International High Commission; Reports of Minister of Finance (Venezuela); Official Gazette of Venezuela.

GEOGRAPHICAL

The United States of Venezuela occupies the northernmost part of South America bounded on the ocean side by the Atlantic and the Caribbean and on the land side by British Guiana, Colombia and Brazil. It has an area of 393,976 square miles (1,020,396 kilometers) with a population, however, of only 2,848,121 or approximately 7 to the square mile. This is in striking contrast with the figures obtained from the United States Census of 1920 which shows an average population of 35.5 to the square mile.

Venezuela is divided geographically into four zones, the _llanos_ or large plains and river valleys which afford excellent opportunities for the raising of cattle, the _mountain section_, formed by three mountain ranges, the _table lands_ or plateaus and the _mining zone_. Venezuela covers the same extent of superficial area as France, Belgium, Holland, Denmark, Switzerland, Portugal, the United Kingdom of Great Britain and Ireland. The country is especially fortunate in having an immense coast line which extends over 1,800 miles. It has 32 ports, some 50 creeks and bays, 7 peninsulas and 7 straits. Besides the Lake of Maracaibo, which is the largest and of special importance, there are also 204 smaller lakes, 60 rivers, 8 of which are of the first magnitude. Along with the variety of physical features Venezuela has a variety of climate which permits the raising of many crops of the tropical and temperate zones.

POLITICAL

Venezuela was sighted by Columbus on his third voyage in 1498, when he entered the Gulf of Paria and sailed along the Delta of the Orinoco. In 1550 this territory became the Captain-generalcy of Caracas and remained under Spanish rule until early in the nineteenth century.

The modern history of Venezuela dates from the year 1813 when Simón Bolívar took up arms against the Spanish Government and finally defeated them at the Battle of Boyaca on August 7, 1819. Two years later at Carabobo the Royalist forces were entirely routed and an end was put to Spanish control in South America.

Simón Bolívar is venerated in Venezuela as the father of his country, a title which he richly deserves. He was born in Caracas in 1783 and from his earliest years his life seemed to be dedicated to the cause of freedom. As a young man he studied in France and was an eye witness to many of the scenes of the French Revolution, so that the spirit of freedom and revolt against despotic government was further intensified in him.

After his victory over the Spanish forces in 1821 Bolívar was formally appointed President of Colombia which then included the present republics of Venezuela and Ecuador. In 1830 Venezuela separated from Colombia and became an independent state. The remainder of Bolívar's public career was devoted to tireless labor in behalf of his people that they might enjoy a stable and beneficial government. He died at Santa Marta on December 17, 1830, almost penniless after having labored throughout his entire life in the interest of his native country.

On March 30, 1845, Spain recognized the independence of Venezuela in the Treaty of Madrid.

A period of successive revolutions followed until finally in 1870 Guzman Blanco assumed control of the country as dictator. Evading the provisions of the constitution which prohibits the election of a President for successive terms, Blanco successfully arranged through two decades for the nomination of some one of his colleagues who was to hold office as a figurehead.

The people finally tired of this procedure and in 1889 there was a revolt against the dictator which resulted in his overthrow. At the elections which followed General Andueza Palacios was elected to the presidency, but another revolution followed in 1891, during which Palacios was unseated and General Crespo, his vanquisher, took up the reins of government.

During the administration of General Crespo trouble arose with Great Britain over the boundary between British Guiana and Venezuela. President Cleveland intervened in 1895, urging arbitration and finally in 1899 the matter was amicably settled. This difference with Great Britain left certain memories with the Venezuelan people which for a long time operated to the discouragement of British capital.

After another series of revolts, General Cipriano Castro became president in 1900. Internal disturbances continued and in addition to this misfortune, Castro ruled as a dictator, employing corrupt and revolutionary methods which not only aggravated the domestic disease but ruined credit before the nations of the world. In 1907 the Belgium debt was repudiated and the following year trouble arose with Holland regarding the harboring of refugees in Curaçao. Diplomatic relations were also broken off with England, Italy and France during Castro's administration. Finally, in 1908 he found it advisable to retire to Europe and in his absence Juan Vicente Gómez, the Vice President, took control and was installed as President in June, 1910. General Gómez still exercises the supreme power in his capacity as Commander-in-Chief of the Army.

PRODUCTS

(See Reports on Agriculture, Minerals, and Animal Industries.)

BANKS AND CURRENCY

There are four national banks in the country--the Bank of Venezuela, the Bank of Caracas, the Bank of Maracaibo and the Commercial Bank. These four banks issue paper currency, which is not legal tender, although generally accepted as such.

Previous to the establishment of branch banks in Venezuela by foreign concerns, the majority of import and export houses doing business in the Republic were engaged in domestic and foreign banking business. As a general rule, these merchants charged such a high rate of interest that individuals could not improve their property nor prosper in their regular agricultural pursuits.

In 1916 the Royal Bank of Canada opened a branch in Caracas and in several other places in the country. Three years later the National City Bank of New York entered the field and opened branches in Caracas and Maracaibo. Other concerns which have opened branches are the Anglo-Spanish-American Bank, Ltd., The Commercial Bank of Spanish America, Grace & Co. of New York through their branch, the Venezuela Commercial Company, and The Mercantile Bank of the Americas.

The currency is on a gold basis and gold coins of foreign countries are accepted as legal tender. The coinage of silver and subsidiary metal is restricted.

The bolivar, named in honor of the Liberator, is the monetary unit and contains 1-1000 part of a kilogram of gold.

Gold coins are issued in 5, 10, 20, 50 and 100 bolivar pieces. Silver coins are issued in 1, 2½, 5 bolivar pieces and 50 and 20 centimo pieces. The smaller, token coins, are of nickel in 12½ and 5 centimo pieces. The five-bolivar piece is commonly known as the "fuerte" and is worth $.96½ in U. S. gold.

AIDS TO ECONOMIC DEVELOPMENT

Capital can be supplied in either of two ways: by investors from foreign countries or through loans made by the government of Venezuela to individuals who are unable to interest outside capital. For the welfare of the country, the latter seems to be more advisable, as it would reach a larger number of small farmers who are not in need of large sums, and who moreover are not familiar with the financial requirements of foreign investors.

A provision similar to the Federal Farm Loan Act passed in the United States in July, 1917, would be of immense importance in aiding agriculture enterprises.

The lack of immigration has long been a serious problem in the economic development of this country; it can only be said that the government has this question under discussion and probably something will soon be done to induce immigrants to come to Venezuela where a multitude of opportunities await them.[2] However, it will be necessary for the government to assure this class of prospective citizens that the bulk of desirable land is still in the hands of small holders and that the power of the government is sufficient to protect the small farmers.

[2] See report on new Immigration Act, pp. 39-41.

In spite of the fact that the country is very sparsely settled, the present railroad system is inadequate and large tracts of land are of little or no value because of the expense of handling the products. Obviously, the products of these areas can not successfully compete in the world's markets, if the margin of profit has been absorbed antecedently by high transportation expenses.

The oldest railroad is the Bolívar Railroad which was begun in 1873. It is a 24-inch gauge, 176½ kilometers long and extends from Tuscasas to Barquisimeto. The La Ciella line was authorized in 1880 and has a 91-meter gauge and a length of 81½ kilometers.

The most important road and one of the few which has paid any returns is the La Guaira to Caracas line, which is about 23 miles long and was built by British capital.

In passing it can truly be said that railroad development has been retarded as much by political insecurity as by the undeveloped industrial state of the country, the topography and the expense of securing railroad equipment. However, the present administration is giving considerable attention to this need and an extensive program of wagon-road building is now in process of construction and plans have also been perfected for extensive railroad expansion.

GOVERNMENT

The Republic of Venezuela was founded in 1830 by separation from the other members of the "Free State" established by Simón Bolívar within the limits of the old Spanish colony of New Granada. The Constitution was modeled after that of the United States of North America, but greater autonomy is allowed to provincial and local governments.

The chief executive is the President, elected for a term of six years, assisted by six ministers and a Federal Council of 19 members. The Federal Council is appointed by Congress every two years; the Council chooses a President from its own members, who is also President of the Republic. Neither the President nor members of the Federal Council can be re-elected for the following period.

The legislative branch of the government is divided into two houses called the Senate, whose members are elected for six years by the State Legislatures, and the House of Representatives, whose members are also elected for a six year-period, but by direct vote, one to each 40,000 inhabitants.

The country is divided into 20 States, 2 Territories and a Federal District. The National Congress includes 40 Senators and 52 Representatives. Each state has an equal number of representatives, each having a legislative Assembly, whose members are chosen in accordance with its respective constitution.

PROSPECTIVE

Venezuela stands to-day upon the threshold of great interior development especially in agriculture and cattle-raising. Her position is similar to that of the United States after the Civil War when vast areas, sparsely settled, lay awaiting the movement of population to develop them. Her mineral resources are practically untouched and opportunities await foreign capitalists who are familiar with the development of new countries.

The political situation, however, should not be neglected. W. H. Koebel in his "History of South America" says, "No state of South America can show such a perpetual ferment, such a fog of unrest and strife hanging over and choking its development as this." Whether or not the past eight years of stable government and national prosperity has demonstrated to the people of Venezuela the proper course to follow is a question beyond the scope of the present inquiry.

In any event, the foreign investor will be well advised if he places his capital in Venezuela only after mature consideration of the political changes of the last two decades and the ability of the present administration to carry through its policy of enlightened development.

_James F. Costello._

POPULATION, IMMIGRATION, EDUCATION

REFERENCES:

Census Bureau, Caracas, Venezuela, July, 1920.
Memoria del Ministro del Fomento, 1920.
Confidential Report of Department of Commerce, 1919.
Memoria de Instrucción Pública, 1918, 1919, 1920.
Memoria de Obras Públicas, 1920, Vol. 1.
Encyclopaedia Britannica.

The last official census of Venezuela, which was completed in the year 1891, placed the population of the country at 2,323,527. According to the Venezuelan Year Book of 1904, 10% of the people are white and of European descent, but by far the larger part, possibly 70% of the total, is a mixed race in which white and Indian blood prevail, the remainder being pure Indian blood. It is not to be expected that the new census, begun in August, 1919, will show any great changes because of the three following reasons:[3]

1. The neglect of sanitation and hygiene in the past, which was responsible for a heavy death rate.

2. The numerous civil wars and revolutions, which ended however some fifteen years ago, when a reconstruction period commenced under the present régime.

3. Comparative lack of immigration, the actual increase being balanced by the yearly total of emigration of Venezuelans to foreign countries.

[3] In 1917 the population was estimated as 2,848,121. The last census, 1919-1920, may show some increase.

The future, however, holds brighter prospects due to the fact that remedies have been found for the first two causes, and energetic efforts are being made to increase immigration, as will be shown in detail later.

Within an area of approximately 394,000 square miles the greater part of the people is found in the regions of Lake Maracaibo, the Federal District of Caracas and along the Coast, the Southern and interior sections being to a great extent unknown and unexplored. The region of Barquisimeto in the state of Lara is the most densely populated area, while in Apure far to the south is found low swampy land, sparsely populated, interlaced with a network of rivers, which in the rainy season cover the entire country with a blanket of water, making travel impossible for months and mail deliveries most difficult and irregular.

The agricultural zone extending along the coast and inland to the Orinoco, employs 20% of the population in this pursuit alone, and contains all the important cities of Venezuela, with the exception of Ciudad Bolívar. The largest city is Caracas, with a population (including the Federal District) estimated to-day at 137,687, an increase of 47,687 since 1891. Its sea-port is La Guaira, connected by a railroad winding around 23 miles of mountains. The second port of importance is Puerto Cabello in the vicinity of Valencia, the second largest city of Venezuela, which has a population estimated at 64,681. Maracaibo with 48,480 is the third largest city in Venezuela, being second in the country in business importance. This last district ought to have the heaviest increase in the future due to the location of the mines and petroleum wells in this area which attract the majority of immigrants, while its heavy coffee exportations offer a wide field for investment and employment.

Mérida, and Barcelona with its port of Juanta which serves the coal and salt mining regions, are two important populous regions while other cities varying in population from 10,000 to 50,000 are Ciudad Bolívar, Barquisimeto, Trujillo and Juanare.

A glance at the following data, with the last two reports approximately estimated, will serve to show the increase.

1891 official census 2,323,027 Ratio per square kilometer 22
1911 " " 2,743,833 " " " " 26
1917 " " 2,848,121 " " " " 27

The most heavily populated districts are:

Federal District 137,687 Density per square kilometer 70.2
Carabobo 193,234 " " " " 43.9
Nueva Esparta 52,431 " " " " 39.6
Trujillo 185,624 " " " " 24.4

The least populated states are:

Bolívar 69,938 Density per square kilometer .03
Apure 30,008 " " " " .04

The territories which have had no increase since 1891:

Amazonas 45,097 Density per square kilometer .02
Delta-Amaeuro 9,243 " " " " .02

Revised statistics June 19, 1920, for the city of Caracas:

Catedral 12,229
Altagracia 14,280
Santa Teresa 6,050
Santa Rosalia 19,284
Candelaria 13,344
San Juan 16,436
La Pastora 11,409
San Jose 6,688
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Total 90,720
Remainder of District 46,967
--------
District total 137,687

Yearly increase of population estimated from comparative statistics of births, deaths, immigration and emigration:

1910 28,091
1911 30,310
1912 11,797
1913 24,050
1914 24,988
1915 12,904
1916 9,589
1917 20,359
1918 8,308
1919 20,590

IMMIGRATION

The nationalities that immigrate to Venezuela, in order of numbers, at the present time are Americans, Germans, Italians, Spaniards, Syrians, Hollanders, with few French and English. Of these, the Spaniards, Italians and Syrians alone, with a few odd exceptions, become citizens. Before the war, Germany furnished the preponderant immigrant element but to-day the Germans are coming in fewer numbers, and Americans are increasing proportionately.

The reasons for the American increase are mainly the establishment of three branches of the Royal Bank of Canada in Venezuela in 1916; the National City Bank of New York with two branches, one in Caracas the other in Maracaibo, and the Mercantile Bank of America with branches in the same two cities. As mentioned above, the petroleum activities in San Lorenzo in the Maracaibo district, the mines and coffee ventures, also brought many Americans.

The lack of immigration in the past has been due mainly to sanitary conditions, and the internal troubles of the country. The foreigner, if unmolested long enough to build up a profitable business, faced the danger of having it swept away, and his life endangered during one of the frequent revolutionary outbreaks prior to the present régime. However, great efforts are being expended to promote immigration as vitally necessary for the future successful upbuilding of the country, for Venezuela relies for her increase in population upon this source and consequently several methods have been pursued to attain this end. A glance at the laws of immigration formulated January 7, 1893, will show the favorable inducements offered foreigners.

The Decree of 1893 created a Board of Immigration to promote colonization. The Board is known as the Central Board of Immigration and established subordinate boards throughout the country. These societies, state societies, as well as private companies, were authorized to make the following favorable concessions to induce foreigners to come and colonize unused lands.

1. Payment of the immigrant's passage by land and sea, from the
place of embarkation to any of the main immigrant depots. The
National Government may also pay the passage of the immigrant
from the place of residence to the place of embarkation.

2. Payment of landing expenses and board and lodging for thirty
days after arrival.

3. Admission free of duty of their wearing apparel, domestic
utensils, and instruments of trade.

4. Exemption of any payments for necessary passports.

SPECIAL PROVISIONS

All rights accorded by law to aliens are guaranteed, and if naturalized they are exempt from military duties, except only in case of foreign wars.

Special provisions were also made in behalf of individuals and companies organizing colonies for settlement in Venezuela.

The manner of making contracts with immigrants is carefully specified in the following manner:

(_a_) Those who purchase lands during the first two years of
their settlement, shall not be bound to pay the price thereof
until after the expiration of four years, counted from the day
actual possession is taken. They can not dispose of the land,
however, during this period.

(_b_) The title is not to be determined until the stipulated
price is paid and the required cultivation and residence proved.

Special provisions and concessions were also made for the colonization of public lands by private individuals and companies.

There is an annual appropriation in the National Budget to promote this project. At the time of this writing, Mr. Simon Barcelo is in Europe, traveling through the different countries inducing immigrants to come, and acting as a forwarding agent. The result of his endeavors is being manifested in the increased number of immigrants arriving within recent months.

Venezuela's immigration is bound to increase in the future, for advertisement is bringing results. The subjoined statistics will show that this is not the only problem confronting the Government, for the balance of immigration and emigration is only slightly in favor of the former, as many Venezuelans leave the country yearly for the West Indies, the United States and Europe. Whereas before the war, the majority of the youths were educated in Europe, and travelers naturally sought Europe, difficulty of communication and transportation during the war turned the stream toward the United States, and the present popularity of Americans in Venezuela bids fair to perpetuate this condition of affairs.

_Year_ _Immigration_ _Emigration_
1910 8,273 7,233
1911 9,204 7,219
1912 9,615 7,981
1913 11,617 10,708
1914 10,610 9,742
1915 9,818 8,770
1916 8,596 7,639
1917 7,857 7,182
1918 6,153 5,841
1919 12,433 12,897

PUBLIC EDUCATION

Education in Venezuela is free, and in the six primary grades is compulsory, the schools from the ages of 7 to 14 years being maintained by the National Government, State, or Municipality, the Department of Education being under the direct supervision of the Minister of Public Instruction, with subordinate officials forming a board. In 1908 Mr. Guillermo Todd, a distinguished Venezuelan educator, was sent to the United States, where he spent two years in the larger cities inspecting the school system, the normal schools and universities. On his return he was appointed superintendent of schools, and reorganized the system, introducing many American ideas and methods which largely prevail to-day.

The maintenance of the educational system depends upon the receipts from stamps, from post-cards and letters, from fines collected from violators of the instruction laws; from taxes upon inheritances, imposts upon tobacco leaves and manufactures, and from the proceeds of the revenue stamps placed upon boxes of cigars.

During the school year of 1919 there were founded two primary schools with three teachers each, two with two teachers and nine schools with one teacher. Two schools were suspended and eleven changed into co-educational with one teacher, while thirteen schools changed their location. Heretofore education has followed the population only. Outside the cities, towns and large cities near the coast there were scant educational facilities, and the rural population was to a large extent uninstructed, there being no schools nor teachers. During 1917 a movement was inaugurated to establish rural schools in all industrial districts, and migratory schools of this kind are now in operation in Frujillo, in Mario El Cantado and Caracas, the states and municipalities have taken the matter in hand. On September 19, 1919, a decree was passed by the National Government to offer a bonus in the form of wages, of from 100 to 200 bolivares ($20.00 to $40.00) to competent persons possessing a certificate of primary elemental instruction, who would enroll and teach children below fourteen years of age the rudiments of education in localities of small population where there were no public schools nor teachers. The bonus to be received varied according to the number of pupils enrolled; many small classes are now in operation throughout the rural districts.

The Obligatory Instruction Law compelling children from 7 to 14 years of age to attend class has been rigidly enforced by Government decree during 1919; a list of offending parents is compiled and they are visited by educational officers, and fined if found guilty of not sending their children to school. By an order of June 20, 1919, English is to be henceforth taught in all primary schools, in view of its present importance as a commercial language. On September 1, 1919, appropriation being made, two new Manual Training Schools were founded, one at Mérida, the other at San Cristobal. Physical training is now considered an important part of the training, and at least a half-hour a day is spent in calisthenics and gymnastic training. In 1918 the Boy Scouts movement was proposed, and introduced into the schools of Maracaibo, where under the supervision of Mr. W. Douglas it has been intertwined with the courses of the public educational institutions. This movement is now receiving national prominence, and gained favorable commendation in the Memoria de Instrucción Pública (1918).

According to the latest data, there are approximately 1,500 primary schools in Venezuela with 50,000 pupils enrolled, but the system is laboring under the difficulty of a lack of teachers, due to inadequate compensation. The children attend school six days a week, but on Saturday have class in the morning only. The curriculum consists of a daily lecture or assembly, elements of the Spanish language, arithmetic, the legal system of weights and measures, rudiments of etiquette and hygiene, moral and civic instruction, gymnastic exercises or national songs, and elements of manual training. The afternoon classes embrace writing, geography, history, topics of the day and gymnastic exercises.

The Secondary Education of Venezuela is not as generally widespread, in proportion, as primary education. There are 102 schools of this class corresponding to high schools in the United States; 58 are for boys, 38 for girls, and 4 are co-educational. Some are grouped into Federal Colleges and Normal Schools annexed to Federal Schools in Caracas and Valencia.

Caracas is nominally the center of education in Venezuela. Here are found two normal schools, one for men and one for women, and two national schools of arts and trades, one for each sex. In 1917 Schools of Commerce were instituted at Caracas, Maracaibo, Puerto Cabello, Curúpano and Ciudad Bolívar. These are similar to our own commercial schools, teaching languages, bookkeeping, stenography, accounting and the like. Besides, there are found throughout the country thirty-four schools of higher instruction, and twenty-one subsidized by the Government.

One institution, founded June 30, 1919, may be interesting to note, _viz_, the National Telegraph School of Caracas in which the first pupils were enrolled from July 1 to 7, 1919. The school is situated in the Federal Telephone and Telegraph Building.

The candidate must have the following qualifications:

1. Be a Venezuelan.
2. Over 15 years of age and under 25.
3. Have had elementary primary instructions and the certificate issued
for the same.
4. Be of good character.
5. Have no contagious diseases, and no physical defects.
6. In case he is a minor he must have the permission of his legal
guardian.

There are six National Universities, located in the following cities:

1. Central University of Caracas.
2. The University of the Andes at Mérida.
3. The University of Valencia in the State of Carabobo.
4. The University of Maracaibo in the State of Julia.
5. The University at Ciudad Bolívar in the State of Bolívar.
6. The University of Barquisimeto in the State of Lara.

The following courses are pursued in the Universities: Medicine, Law, Political Science, Philosophy and Letters, Dentistry and Pharmacy.

The length of these courses is six years with the exception of pharmacy, which is a four-year course.

Among the professional schools the following are of greater importance:

1. School of Engineering at Caracas.

2. School of Naval Construction at Puerto Cabello.

3. School of Political Science at San Cristobal.

4. School of Medicine in Caracas (founded December, 1915). A free dispensary is attached, subsidized by public funds under the direction of Civil Hospitals.

5. School of Dentistry, Caracas (1916).

6. School of Sciences (Physical, Natural and Mathematical) Caracas (December, 1915).

7. School of Chemical Research.

Of the Academies the more important are:

1. Those of natural science, music, oratory and modern languages found in the larger cities.

2. The Academy of Language in Caracas devoted to the national language and literature.

3. The Academy of History in Caracas devoted to national history.

4. One seminary at Caracas,--the Catholic Seminary for Theology and Canonical Jurisprudence.

Under "miscellaneous" we may consider the following:

The National Library of Caracas containing 50,000 volumes; a national museum containing a valuable historical collection; the Cajigal Observatory devoted to Astronomical and Meteorological work; the libraries of Valencia and Maracaibo, and the Pasteur Institute in Caracas.

Among the educational achievements of the past few years, the following are worthy of mention:

1. Departments for engineering work.

2. Departments for the administration of budget.

3. Improvements in laboratories in physics, mineralogy, geology, botany and zoology.

4. Enlargement of the libraries and improvement of the school of medicine.

5. The schools of arts and crafts for men has 541 men enrolled. The clever map making of the students should be especially noted.

6. The meteorological stations in Mérida, Maracaibo and Calabozo.

The appropriation for education for the fiscal year July 1, 1920 to June 30, 1921, recently passed by the Venezuelan Congress, contains the following items:

_Bolivares_
1. Ministry 120,580
2. National Council of Instruction 119,016
3. Primary Education 2,465,542
4. Secondary Education 259,240
5. Normal Education 203,940
6. Board of Inspection 135,600
7. Superior Instruction and Institutes
of University Extension 373,781
8. Special Instruction 326,672
9. Celebrations and Entertainments 143,940
10. General Costs 180,000
----------
Total Bs. 4,328,181

It may be said in conclusion that Venezuela fully recognizes the importance of sound educational institutions and every effort is being expended to bring about the desired results through legislation. The work is slowly materializing but assuredly progressing. By far the greatest problem is the lack of professors. Educational progress has of necessity been retarded in the past but as the era of prosperity of the country has been gradually, but surely, dawning, this important branch has not been neglected, and a brighter future is before the Venezuelan youths which will preclude the necessity of going abroad, as they have done in the past, to complete their training.

The country has need of highly educated men; it is determined to provide the institutions necessary to satisfy these needs.

_Thomas F. Morris._

PORTS OF VENEZUELA

With an increasing commerce and steady betterment of domestic economic conditions, the ports of Venezuela are rapidly assuming a position that for continued development and general good condition has never been equalled in the history of the country. All countries recognize the vital economic value of ports and with few exceptions can gauge their own prosperity by the nature and number of their harbors. Few countries are more dependent upon their ports than Venezuela. Because of poor inland communication with neighboring countries, and an inability to maintain itself, largely due to lack of manufactures, and due also to a marked dependence upon the outside world for the marketing of its products, this nation is to a high degree reliant upon its foreign commerce and hence, in turn, upon its ports.

Fortunately, Venezuela has a long coast line of 3,020 kilometers, indented with 32 harbors, 50 small bays and many coves. The most important ports in the approximate order of importance are: La Guaira, Maracaibo, Puerto Cabello, Ciudad Bolívar, Carúpano, Puerto Sucre, La Vela, Cristobal Colón, Caño Colorado, Guanta, Pampatar, Imataca and San Antonio del Táchira. At the present time many of the best natural ports and the most favorably situated are still undeveloped or occupy a secondary position. This is partially due to the lack of development of their naturally rich and fertile hinterlands, difficulties of transportation and unsympathetic government legislation. However, remedies are now being applied and it can safely be predicted that certain of the minor ports will soon outstrip the older and better developed ones. A brief survey will serve to show the general nature and economic status of some of the better known ports.

Chief in importance is LA GUAIRA which, connected with Caracas by 24 miles of railroad, stands as the commercial center of Venezuela and will be treated in more detail later.

MARACAIBO

Situated on a fresh water lake of approximately the same size
as Lake Erie, the Port of Maracaibo drains a large hinterland.
Coffee and petroleum are its two important exports. Besides
that of Venezuela, much coffee of Colombian origin is exported
from the port. It may also be noted that there is an ever
increasing exploitation of petroleum and a corresponding demand
for harbor facilities. Physically the port enjoys a great
advantage in being located on a large lake fed by numberless
rivers.

The lake itself could accommodate vessels of thirty-foot draft,
while three of the largest rivers, the Catatumbo, Lulia and
Escalante can be travelled by river steamers of fair size.
The two former streams are navigable as far as Villamizar in
Colombia, and afford a fine transportation route for the coffee
and other products of Santander. However, the port suffers a
great disadvantage, as the main channel leading into the port
is obstructed by a bar. The depth of water on this bar ranges
from seven feet at low tide to twelve feet at high tide. The
project of dredging the channel seems to be entirely feasible
and if accomplished would add greatly to the general prosperity
of Venezuela.

PUERTO CABELLO

Deriving its name from the fact that its waters were considered
so placid that a vessel might anchor within its protection
sustained by a single strand of hair, Puerto Cabello remains
the most sheltered port of Venezuela. Equipped with a floating
dock 282 feet long, 80 feet wide and 21 feet high, it is
able to take care of vessels up to 2,000 tons and has proved
especially serviceable for the small steamers that serve the
coast cities of Venezuela and Colombia. Coastwise vessels of
light tonnage are constructed here and repairs of an extensive
nature may be made. Many improvements to the ship building
plant and repair docks are under way and the new floating
dry dock when completed will permit the docking of vessels
up to 4,000 tons, which means that it will be capable of
accommodating practically all vessels that touch Venezuelan
ports. The average depth of the harbor is 28 feet. Cattle are
an important export, large consignments being made from the
surrounding country. A frozen meat establishment controlled by
English interests is of considerable value to the port, the
meat being shipped to England in special ships. Puerto Cabello
is 20 miles distant from Valencia and has railroad connections
with both it and Caracas. Other exports besides cattle are
coffee, cacao, dyewoods, hides, skins, and copper ores.

CIUDAD BOLÍVAR

A river port situated on the right bank of the Orinoco 240
miles above its mouth, Ciudad Bolívar is the commercial center
of the Orinoco basin. A bar which blocks the river channel
prevents ships of more than twelve feet draft from navigating
the harbor. Due to the large quantity of sand deposited by
the river and its tributaries, dredging is practically an
impossibility. Vessels of less than twelve feet draft can go
up the Orinoco as far as San Fernando de Apure. The principal
exports are cattle, horses, mules, tobacco, cacao, rubber,
tonka beans, bitters, hides, timber and other forest products.
The port has connections with government land lines, regular
communication with the lower and upper Orinoco and steamship
lines to New York and the Antilles. The government imposes a
surtax of 30% on imports from the West Indies which greatly
diminishes the commerce of the port.

MINOR PORTS

=Carúpano= is well located for commerce, being on the Caribbean
coast at the opening of two valleys. It is the commercial
center of the rich and populous hinterland of the valleys
of Tunapui and Pilar and the valuable forests of Coiguar.
The principal exports are coffee, cacao, cotton and forest
products. Although possessing fair wharves, the harbor is very
open and cargo must be moved in lighters and launches to the
piers. Traffic is almost entirely of a coastwise nature with La
Guaira.

=Guanta= is one of the eastern ports of the country and has an
excellent natural land-locked harbor. Its wharf can accommodate
trans-Atlantic steamers, although commerce from abroad is
light. The wooden pier, formerly in very bad condition, is
being replaced by one of concrete. Guanta is connected by
twenty-four miles of railroad with the coal mines of Naricuse
and furnishes fuel for coastwise vessels. Large numbers of
cattle are raised in the surrounding country and upon the
completion of improvements the harbor should have a very bright
future. By a government decree of 1917 the port was closed to
import commerce and depends almost entirely upon exports for
its functioning.

=Puerto Sucre= is situated west of the city of Cumaná at a
distance of less than a mile. It is equipped with a wooden
pier constructed by the Cumaná and Carúpano Pier Company. The
depth of water varies greatly and the loading and unloading of
vessels is accomplished in lighters belonging to the company.
The commerce of the port is small, most being undertaken with
the neighboring ports of Venezuela.

=La Vela= borders on a low swampy region and is connected by
railroad with Coro. Except for a small coastwise trade with
Puerto Cabello, the port enjoys little commercial activity.
Coal mines are near by and with their future exploitation an
increase in commerce may be expected. The waters of the harbor
are unusually rough and lighters must be used for discharging
cargo.

THE ROAD THROUGH THE MOUNTAINS]

While there are many other ports besides those mentioned above, their commerce is so light and in such a poor state of development that more consideration need not be given them here. For the most part, their commerce is entirely coastwise and is carried on principally in small sailing vessels. The fundamental obstacle to their future progress and indeed to the progress of the entire nation seems to be lack of population--a difficulty which the government is striving hard to overcome by furnishing immigrants with free transportation, and paying passport expenses.

SPECIAL PORT ACTIVITIES

At present there are no free ports in Venezuela and despite many rumors and much discussion the establishment of a free port, at least for some time, seems improbable. However, the Minister of Finance has recommended the installation of bonded warehouses at some port centrally located on the coast mainly for the better accommodation of coastwise trade. Cargoes could be placed for a long period of time in the proposed warehouses and the charges collected with the movement of goods. The advantage of such a plan would be principally the ability of profiting from market conditions and the fluctuation of prices. The execution of this plan depends solely upon the legislation of the government and will be officially considered in the near future.

Of far greater importance is the proposed project of transforming Puerto Ocumare de la Costa from a small harbor with very little commerce into a leading port capable of becoming a formidable rival of La Guaira. For the accomplishment of this the former port would have to be connected by railroad with Maracay, a distance of 43 miles, and goods shipped to the territory which La Guaira now supplies. The railroad would be very difficult to construct as it would have to traverse a mountainous country and would take years to complete. Engineers are considering the feasibility of the undertaking. The reason for the new project is generally believed to be the raise in rates of the La Guaira Harbor Corporation brought about by changing from weight to volume measurement of cargo. The company justifies its charge advance on the grounds that it was necessitated by the increase in wages due to strikes. However, the government insists that the raise is entirely out of proportion to the increase in salary paid. The new rates impose an increase in charge of 37½% on coffee, 87⅓% on cacao and 300% on hides. Proportionate increases are made on many other articles.

It is needless to say that if the plan is carried out it will directly or indirectly affect a large portion of the country. And whether the economic advantages, such as new harbor development, the opening up of new lands, and the increased mileage of railroads will justify the disadvantage of large expenditures and risks involved is a question that time alone can answer.

PORT OF LA GUAIRA

Formerly considered one of the most dangerous harbors on the Caribbean coast, La Guaira is to-day Venezuela's leading port and the recipient of a large volume of commerce both from Venezuela and abroad. Its prosperity may be assigned to several causes. By reason of its proximity to Caracas, the capital and chief city of the republic, the port enjoys a great commercial advantage, as Caracas is a center of transportation activities. Again, the harbor besides being favorably located can accommodate vessels of large draft and possesses harbor and warehouse facilities of an extensive nature. Government legislation has also accomplished much to assure its preeminence as certain laws now in force operate to divert much commerce to La Guaira that would normally go to other Venezuelan ports.

The port works and equipment are owned by the La Guaira Harbor Corporation, an English company that has undertaken improvements totalling $5,000,000 and that have changed the harbor from a natural to an artificial port. Before the improvements, the port was an open roadstead--unsheltered and very dangerous. At the present time it is protected by a stone and concrete sea wall, constructed from an average depth of 29½ feet and rising 19½ feet above water. This protection is ample and ships may move about and anchor in complete safety. The sheltered area of the harbor is 75 acres and has an average depth of from 28 to 30 feet. Entrance is made between the buoy at end of pier No. 5 and buoy No. 4 placed at a distance of 300 feet. The maximum range of tide is approximately 3 feet. Vessels of 23-foot draft can safely navigate the harbor.

Landing is made at jetties inside the breakwater and the cargo is loaded on cars and taken to warehouses. The jetties are three in number and can accommodate three large or four small steamers. These jetties are all equipped with railway facilities. Bunkerage is not available and vessels must coal from lighters or cars on wharf. The port can supply only a limited amount of coal, mostly Cardiff briquettes. Fuel oil can not be obtained, but is available in large quantities at Curaçao, 60 miles distant.

The population of the port is estimated at 26,000. The climate is very hot with an average temperature of 84°. The prevailing winds are northeast by southwest.

Though but 8 miles from Caracas, 24 miles of winding railroad through the mountains are necessary to connect the port with the capital. The line is owned by an English company, has a gradient of 4% and is of 3-foot gauge. From Caracas the Great Railroad of Venezuela operates a road to the city of Valencia which in turn is connected by a third line to Puerto Cabello.

The principal exports of the port are coffee, cacao and hides which are sent principally to the United States, with which commerce is greatly increasing. Much cacao of the better grade is exported to France.

The imports are textiles, chemicals, machinery, hardware, paper products, drugs and medicines, of which 75% come from the United States. Large return cargoes are difficult to get and at times absolutely unobtainable.

The following statistics may serve to show the volume of commerce of the port:

MOVEMENT OF CARGO FROM THE PORT OF LA GUAIRA

_1918_ _1919_
_Metric_ _Metric_ _Increase_
_Tons_ _Tons_ (_M. T._)
Foreign imports 25,384 38,843 13,459
Foreign exports 26,186 30,632 4,445
Coastwise trade 55,446 64,195 8,748
-------- ------- -------
Total movement 107,017 133,671 26,654

MOVEMENT OF PASSENGERS FROM LA GUAIRA

_Year_
1915 8,216
1916 8,707
1917 9,976
1918 9,897
1919 15,974

MOVEMENT OF CARGO FROM PORT OF LA GUAIRA BY YEAR SINCE 1905

_Year_
1905 92,489
1906 89,299
1907 93,548
1908 63,012
1909 74,414
1910 81,525
1911 91,996
1912 105,844
1913 116,116
1914 110,498
1915 104,583
1916 113,351
1917 123,963
1918 107,017
1919 133,671

PILOTAGE AND TOWAGE

Pilotage is not compulsory and is little used as entrance to the harbor is easily made. When signalled for, the pilot boards the vessel about 2 miles off shore and proceeds to the port. Towage is very seldom used, the only tug available being owned by the harbor corporation. The charge for towage is $50 for a distance of from 4 to 6 miles off shore.

Mooring and shifts within the harbor are made from swinging buoys and with the vessel's own equipment of capstan and winches. A mooring charge of $0.0286 per net ton register is collected by the harbor corporation both on steamers and sailing vessels.

LIGHTERAGE AND CARTAGE

The port is equipped with six lighters of 30 ton capacity, all of which are owned by the corporation. They are principally used when the mole is overcrowded and for the handling of large packages. Vessels carrying explosives or other dangerous cargo must anchor just inside the breakwater and discharge their goods into lighters.

Cartage for local delivery is accomplished by means of small two-wheeled carts; most of the cargo, however, is handled by the railroad with which the jetties are all connected.

STEVEDORING

Harbor conditions, on the whole, are satisfactory. When experienced, the help is skillful and efficient but unfortunately is hard to obtain. The employees have no union and are for the most part mulattoes. The regular hours of work are from 7 A. M. to 4:30 P. M., while overtime (daylight) is from 4:30 P. M. to 6:30 P. M.

The cost of discharging cargo is 60c. per hour during the regular hours. For overtime in daylight the rate is increased 40c. and in night time 60c. Tally clerks receive $3.00 per day with 40% increase for overtime in daylight and double time after 9:00 P. M.

The time rate for handling cargo is about 20 metric tons per hour by gang of 20 men. The discharging rate varies according to the nature of the cargo as it can not be placed on the wharf faster than the employees of the Customs House can check it.

PORT CHARGES

Of first importance are the charges collected by the government, which include the following: An export tax on coffee, cacao, etc., which is paid by the exporter, the vessel not being charged; a tax by the captain of the port to the value of $2.41; interpreter's service, which, however, is not compulsory, $6.18; port doctor fee $9.65 for steamers and $4.83 for sailing vessels; pilotage, if taken, for steamers $16.21, sailing vessels $11.58; government stamps, $1.93.

Vessels are boarded by the port doctor and a bill of health is required from the Venezuelan Consul at the last port, also lists of passengers and crew.

The port possesses an under-equipped hospital and a fee of $3.86 is collected by the hospital association from each large vessel entering or leaving the harbor. If proceeding to another domestic port a bill of health is required and a charge of $2.35 is made by the government.

The municipality collects a water charge of $46.32 whether water is taken on or not. If additional water is desired, a further charge of 77c. a ton is made. Other charges are made by the Harbor Corporation including $0.0386 per net ton register for mooring and a similar sum for each metric ton loaded or discharged during regular hours.

WHARVES AND WAREHOUSES

The breakwater pier is equipped with 3 jetties of concrete construction, with a vessel clearance of 2,000 feet. The length of jetty No. 1 is 70 meters, while that of No. 2 and No. 3 combined is 215 meters. Their width is 15 meters and the depth of water at low tide is 30 feet. The jetties have a capacity of 6,000 tons of general cargo.

The pier is equipped with ten revolving steam cranes, the largest of which is of 12 ton capacity with boom radius of 60 feet at an angle of 45°. The remaining cranes are of 5 and 3 ton capacity respectively.

The port has four warehouses with a total floor space of 5,134 square meters. All are in charge of the government and are in good condition. Strict regulations are in force and the Custom House processes are of a character to discourage commerce.

The national tariff is highly protective, the government receiving a large percentage of its revenues from this source. Few goods are admitted free and those likely to compete with home industry are severely taxed.

DOCUMENTS

Necessary for port doctor:
Bill of health.
List of crew (register).
List of passengers.

Necessary for customs authorities:
Ship's register (sometimes demanded).
Consular dispatch from Venezuelan Consul, consisting of one
sealed package with general manifest of cargo, consular
invoices, bills of lading, etc.
Two copies of crew list.
Two copies of the passenger list.
Two copies of the list of provisions and stores.
Two copies of the "Sobordo" in hand.
Two copies of the B/L sealed by Venezuelan Consul in the last
port.

Necessary for agency:
Vessels bringing cargo from United States ports:
1 copy of manifest.
1 set of ship's export declarations.
1 set ship's papers (from American vessels).

_Paul Babbitt._

OCEAN, CABLE AND RADIO COMMUNICATION WITH VENEZUELA

Venezuela, northernmost of the South American republics, comprises an area of 393,976 square miles, including vast mineral resources and land well suited for agricultural pursuits and cattle raising. Among the principal agricultural products which Venezuela raises in sufficient quantity for export to other parts of the world are coffee, cocoa, sugar, tobacco and rubber. Other exports are gold, hides and skins. Among the principal imports we find cotton goods, wheat flour, and, in short, all manufactured articles used in the tropics except shoes, laundry soap, candles, matches, salt, ready-made clothing and similar articles upon which tariff rates are prohibitive.[4]

[4] United States Commerce Reports (No. 48-A), 1920.

It is within my province here to discuss communication facilities between Venezuela and other countries, both in regard to steamship facilities, and cable and wireless communication, for the purpose of determining whether or not the existing lines of communication are best suited to promote commerce between Venezuela and the countries to which and from which she exports and imports products.

The first point to be considered is that of shipping communications, since it is in ships that foreign commerce must be carried. In the following pages we shall briefly discuss Venezuelan ports, volume of shipping entering and leaving these ports and the countries and lines owning and operating these ships.

The principal Venezuelan ports in order of their importance are La Guaira, Maracaibo, Puerto Cabello and Ciudad Bolívar.[5]

[5] Reports of Trade Commissioner Bell, Commerce Dept.

_La Guaira_, due to its geographical position as the port nearest the United States and Europe (2,000 miles from New York and New Orleans), together with the fact that it is near Caracas, the capital and commercial centre of Venezuela, is the most important port in that country. It is therefore a port of egress and entry for Caracas and central Venezuela. Besides being the capital and largest city, Caracas is, to a peculiar degree, the centre of the commercial and industrial, as well as the political life of Venezuela. Practically every company engaged in any sort of business maintains an office in Caracas, which accounts in part for the importance of the nearby port of La Guaira.

Due to the importance of coffee and sugar growing in the district around _Maracaibo_, this port is the second in importance in Venezuela.[6] It is situated at the entrance of a great lake which opens the way to a territory rich in coffee and sugar plantations as well as in coal mines and petroleum fields. Its only disadvantage is the fact that a shallow channel which must be dredged continually prohibits the entrance of vessels of large tonnage at many periods of the year.

[6] Consular reports from La Guaira and Maracaibo.

The next port in importance, that of _Puerto Cabello_, is the inlet and outlet for a district containing three of Venezuela's largest cities, Valencia, Barquisimeto and Coro. This region is preeminently agricultural in its activities and its prosperity is largely dependent on its export trade in coffee, cacao, hides, skins, copper ore and frozen meat.

_Ciudad Bolívar_,[7] fourth in importance of the ports of Venezuela, is situated on the Orinoco River, about two hundred miles above its mouth. In every respect its commerce is very different from that of the rest of Venezuela, depending not upon the products of manufacturing or agriculture, but upon wild products of the forests; upon gold mined and washed in Venezuelan Guiana, and upon hides which are rafted down the Orinoco and its tributaries from southern Venezuela and eastern Colombia.

[7] Consular reports from Puerto Cabello and Ciudad Bolívar.

In order to give a clear idea of the ships and tonnage entering and leaving the various Venezuelan ports, as well as their nationalities, I have compiled statistics from the official figures given by the Minister of Hacienda for the year 1918, the last year for which figures could be obtained. A study of these figures shows the relative importance of the ports of the country as well as the volume of commerce with foreign nations.[8]

SUMMARY

_Number of Ships Entering Each Port, January-June, 1918._

PORTS SHIPS TONNAGE TOTAL
_Steam_ _Sail_ _Steam_ _Sail_ _Ships_ _Tonnage_
La Guaira 52 18 102,762 962 70 103,724
Maracaibo 12 39 9,522 4,380 51 13,902
Puerto Cabello 33 24 107,041 1,563 57 108,604
Ciudad Bolívar 14 1 3,118 9 15 3,127
Carúpano 14 14 17,145 184 28 17,329
Puerto Sucre 5 33 2,474 285 38 2,759
La Vela -- 33 -- 1,797 33 1,797
Cristobal Colón 13 36 13,250 1,307 49 14,557
Pampator 2 44 511 630 46 1,141
---- ---- -------- ------- ---- --------
Total 145 242 225,823 11,117 387 266,940

_Nationalities of Ships Entering These Ports, January-June, 1918._