Part 4

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

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

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

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

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

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

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

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

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

Credits should be extended with the greatest caution.

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

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

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

The following cities should be visited:

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

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

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

VI CHILE

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The following cities are worth visiting for trade purposes:

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

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

VII BOLIVIA

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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