Selling Latin America: A Problem in International Salesmanship. What to Sell and How to Sell It
Part 5
In the production of tin, Bolivia ranks second, the chief producer being the Malay Peninsula. Tin forms about 70 per cent. of the total export of Bolivia, amounting in value to over $23,000,000, Great Britain taking about 90 per cent. of the output of the mines and selling it to the other nations of the world. There are yet enormous unworked deposits of this metal in this land.
Bolivia is one of the largest bismuth producing countries of the world and the third in the production of copper, and is rich in antimony and wolfram. In 1912, the latest available authentic data, she exported the following amount of metals:
Antimony $ 26,615 Bismuth 784,183 Copper 1,311,156 Gold 23,039 Silver 1,676,704 Tin 23,289,732 Wolfram 114,847 Zinc 129,243
If the forests of Bolivia as well as the territory sloping toward Brazil were more accessible, much of value would be added to its products. This land is especially adapted for grazing and agriculture as well as the growth of medicinal plants and trees.
In 1912, Bolivia exported rubber to the value of over $6,000,000.
It gives to the pharmacopœia the following drugs: aconite, arnica, belladona, some camphor, cocaine, digitalis, ipecac, jalap, quinine, quassia, sarsaparilla, tamarind, tolu and valerian.
Cabinet woods, such as ebony, mahogany, rosewood, satinwood and cedar are to be found in great profusion. Fruits of the tropical and temperate zones flourish. Coffee and cocoa are largely grown.
Bolivia is one of the few countries of the world without a national debt, a remarkable condition of affairs, more especially for a Latin American country, and its monetary system is on a gold basis, the unit being the _boliviano_, worth about 39 cents in our currency.
English capital is largely invested in the various mines and railways but the greater portion of the mercantile business, especially in the crude drug line, is in the hands of Germans, who shipped to the Fatherland over 83,000 pounds of the 100,000 pounds of quinine exported last year.
In 1913 Bolivia exported tin, rubber, silver, copper, bismuth, cocoa, wolfram, zinc, lead, hides, alpaca-wool, medicinal and crude drugs to the value of $36,551,390. Her imports during the same time were $20,600,000, comprising iron, steel and railway building materials, textiles, machinery, arms and ammunition, foodstuffs, toilet goods, glass ware, and medicines.
Bolivia is one of the countries where the travelling salesman is sure to be obliged to pay a tax; the porters, hotel employes and others assisting, on a commission basis, of course, the person who has this concession. The fee which amounts to about $115 can often be “side-stepped” by arrangement with the local merchant with whom you may desire to establish a connection. Under no circumstances let it be known that you are a travelling man until you have perfected your plans with regard to this problem.
The following cities should be visited:
_Population_ La Paz (the capital) 85,000 Cochabamba 35,000 Sucre 30,000 Potosi 28,000 Oruro 25,000 Santa Cruz 20,670 Tarija 10,000 Tupiza 5,000
Bolivia may be reached via the three cities referred to, namely Mollendo, Antofagasta and Arica, these places being ports of call for all vessels. Both the Peruvian and Chilean steamship companies, as well as the European lines, touch here also. It is to be expected that some of the larger lines from New York will arrange a service passing through the Panama Canal and calling at these places, thereby saving the long trip around the Horn, or the trans-shipping at Colon and Panama.
VIII PERU
Recent archæological finds warrant some authorities in claiming Peru to have been the home of a highly civilized and cultured people 25,000 years before Christ. The race which inhabited the land then were the Chumus, the progenitors of the Incas, whom Pizarro found when his expedition arrived in Peru from Panama in 1532. The Incas had a socialistic form of government, were able engineers, good surgeons, noted agriculturists and really a wonderful people. The treatment of this docile and intellectual nation by the invading Spaniards is one of the darkest pages of history.
Francisco Pizarro founded Lima, the capital of Peru, in 1535, was appointed by the Crown governor of the newly acquired territory and was assassinated in front of his palace in 1541.
The great wealth which Peru, through her rich mines, contributed to Spain, warranted that country in making this possession a viceroyalty, the viceroy at one time governing all Spanish possessions in South America from Lima.
The movement for independence from Spanish control, started early in the last century, found many adherents in Peru and after several reverses the yoke of Spain was thrown off July 28, 1821, a congress organized in 1822, representing a republican form of government and the first president inaugurated in 1823.
In 1879, over a question of boundary lines, Peru became involved in a war with Chile, lasting five years, the result being the defeat of Peru and the invasion of its capital. As a consequence, Peru ceded one of its richest provinces, Tarapaca, outright to Chile, and the territories of Tacna and Arica conditionally for ten years, at the end of which period a vote was to be taken in these provinces, and the inhabitants were to decide under which country they preferred to remain. The Chileans, despite the repeated requests of Peru, have failed to observe this condition of the peace treaty and these territories with all their wealth still are under the control of the conquerors. The methods employed by the Germans in Alsace-Lorraine have been used here by Chile, and the chances are that this district will always remain in the hands of its present governors.
A President and two Vice-Presidents, together with a legislative body of two branches, a Senate and a House of Representatives, control the destinies of Peru.
Peru contains 687,600 square miles, and is bounded on the north by Ecuador and Colombia, on the east by Brazil and Bolivia, on the south by Chile, its western boundary being washed by the waters of the Pacific for its entire length of 1600 miles. For purposes of comparison Peru covers as much territory as Texas, Nevada, Utah, New Mexico and Arizona.
Three mountain ranges run through this country between which are found extremely fertile and productive plateaus, the scene of much of the country’s agricultural development. The land from the coast to the foothills of the Andes is as a rule barren, and were it not for the Humboldt Current which runs close to the shore and cools it, would be exceedingly tropical. On the eastern slopes of the Andes, as they stretch toward Brazil and Bolivia, there is a wealth of verdure, vegetation and virgin forests, due to the heavy rains and the tropical sun’s action. This comprises three-fourths of Peru’s territory. The table-lands are cool and enjoy a temperate climate. From June to November, the days are marked by a fine drizzling rain, particularly along the coast but for the rest of the year rain coats and umbrellas are not needed.
Peru claims a population of 4,500,000 but I seriously doubt if it will reach 3,500,000. Of this number fully half are unlettered, ignorant Indians, lacking in ambition, requiring few necessities and living most primitively. One-fourth are half-breeds, the descendants of the conquerors and the Incas. About two per cent. of the population are Chinese. Here it may be noted that many archæologists and anthropologists believe that the early settlers of Peru came from China, across the stepping stones in line with the finger of Alaska which points toward Asia, and by degrees wandered down the western coast of America, finally establishing a government near what is now the city of Cuzco. Perhaps 15 per cent. are pure white. There are nearly 50,000 Europeans and Americans located throughout Peru. Italians and their descendants are most numerously represented, followed by Germans and English.
Peru has no navigable rivers on her west coast, the many streams which empty into the Pacific being dry or very low except during the periods of heavy rains. Properly husbanded their water power could be effectively used. To-day they serve for irrigation and near some of the larger cities, such as Lima and Callao, have been advantageously used for generating electric light and power for tram systems. On the eastern side of Peru there are about 3500 miles of navigable rivers for light-draft vessels, drawing 8 to 15 feet, all of these streams ultimately emptying into the Atlantic.
Iquitos with 20,000 inhabitants, on the Amazon, 2500 miles from the Atlantic Ocean, is the center of the rubber industry, and is more accessible from New York than from the capital of the Republic, Lima.
Peru has 1840 miles of railway, 1300 being standard and 500 narrow gauge. Nearly 3500 miles of road have been surveyed and are in various process of construction. Nominally about 1200 miles of these roads are owned by the Government but are operated and controlled by the Peruvian Corporation, Ltd., an English organization, whose presence is very much in evidence in Peru, and which also operates a line of steamers on Lake Titicaca. Under the present contract with the government this concern is to control the railways under it until 1973, a certain percentage of the profits to go to the State, and another portion to be utilized in railway extension.
The Peruvian Corporation, it should be stated, was organized by Europeans holding Peruvian bonds on which it was impossible to collect the guaranteed interest, due to the mismanagement of the government as well as the outcome of the war with Chile. This corporation took over and cancelled the indebtedness in return for certain privileges among which was the right to exploit the railways.
To Henry Meiggs, an American from San Francisco, Peru and the world is indebted for the completion of what are the most marvelous railways on the globe. By a series of twists and turns, which include 65 tunnels and 67 bridges, it climbs to the highest point in the world ever reached by a railway, 15,665 feet above sea level in a distance of 138 miles, to what is locally called “the roof of the world.” Some idea of the rapidity of the ascent may be gained when I state that in the first twenty-five miles from Lima the train ascends 2800 feet above the sea, while it reaches 5000 feet twelve miles further on its journey.
Another wonderful road runs from Mollendo through Arequipa and on to Puno, at the edge of Lake Titicaca, passing through the most magnificent scenery and ascending to an altitude of 14,665 feet. There are numerous Americans employed in the management of the Peruvian railways and practically all the rolling stock comes from the States.
The many mountains paralleling the coast make railway construction a difficult and expensive problem. It is possible that this will have much to do with the retarding of the progress of mine development, inasmuch as many of the mineral deposits are almost inaccessible due to their interior location.
Unlike Chile, Peru has many natural harbors, affording protection against storms, Mollendo, Salaverry and Eten being the only ones really dangerous to shipping and life. The ports from north to south are Tumbez, Paita, Eten, Pacasmayo, Salaverry, Chimbote, Huacho, Ancon, Callao, Pisco, Mollendo, and Ilo. The docks at Callao, the leading port, are quite modern and capable of receiving the largest vessels.
Peru’s products are chiefly mineral and agricultural.
Her mines have long been famous, producing gold, silver, copper, iron, coal, bismuth, lead, quicksilver, tungsten, antimony, molybdenum, vanadium and borax. Her petroleum fields are a source of much revenue. Her guano industry is being revived by protecting the birds which frequent the islands and by restricting the working of these deposits. Sugar cane, cotton, and rice are profitably raised.
The forests of the eastern section are rich in cabinet and medicinal woods.
Copper is the leading metal mined, the production in 1912 being valued at $9,625,000, while the amount of silver extracted in the same period was $5,152,412. Vanadium, used for hardening steel, exists, the deposits being larger than in any other locality. More than $500,000, or 70 per cent. of the world’s output, was exported in 1912. The bulk of these industries is controlled by American capital and many Americans are employed.
There was mined in Peru in 1912, 268,000 long tons of coal, 254,088 of which came from the mine owned by the American companies operating at Cerro de Pasco and was used chiefly in the smelters. Geologists estimate that there is a carboniferous area in this country of approximately 40,000,000 tons of coal.
Peru is fortunately rich in being the possessor of petroleum fields yielding a high-quality oil, much of which goes to the States and Europe for purifying. One local refinery has a capacity of 300,000 gallons per month. The Standard Oil Company owns some of these properties, but the largest holders are British and Italians. In 1912, 214,947 metric tons of oil were produced. The national line of steamers are oil burners.
In 1913 Peru exported over $51,000,000 worth of cotton and $7,500,000 of sugar; $2,000,000 of vicuna, alpaca, llama and sheep’s wool; $500,000 worth of cocaine and $3,000,000 worth of rubber. Much coffee, tobacco, and cocoa are grown, most of which is used for home consumption.
Peru’s crops are produced chiefly by irrigation, the watersheds on the mountain sides being of great advantage in this connection.
Cotton is manufactured into cloth in mills situated at Lima, Arequipa and Ica. There are also woolen mills but they do not come anywhere near supplying the local demand and much is imported.
Panama hats are largely produced, in 1911 the exports in this line reaching the enormous sum of $2,147,668. Some twenty-five factories in the Cuzco valley are devoted to the production of cocaine, the world’s supply largely coming from this section. The cattle and wool growing industries are capable of much greater development.
Peru is on a gold basis, the _sole_ being the unit of value. This is a silver coin and is designated thus “$.” Ten _soles_ ($10) equal a gold _Libra_ or pound, worth a pound sterling or $4.8665 U. S. gold and expressed thus “_Lp._,” meaning _Libra Peruana_, or Peruvian Pound. A _sole_ contains 100 _centavos_, or cents.
Peru’s exports in 1912 were $45,871,504, and her imports $25,066,354, the bulk of the business being done with the United Kingdom, the United States being second. Within the past five years the exports from and imports to the States have materially increased and are rapidly approaching those of our greatest competitor, England. This is due perhaps to the development of the mining industries, under the control of American capital. In 1910, England shipped Peru $8,134,189 worth of goods to our $4,484,214 and Germany’s $3,842,855. In 1912 the figures were as follows, England $6,800,708, United States $5,763,423 and Germany $4,557,698. Undoubtedly the figures for 1913, when available, will show a decided further gain for us.
Peru exports copper, gold, silver, mercury, vanadium, bismuth, cocaine, quinine, wool, sugar, petroleum, hides, hats and guano, and imports textiles, mining machinery, oil machinery, pipe, railway supplies, windmills, corrugated iron, tools, hardware, flour, canned goods, shoes, electric supplies, typewriters, mineral waters, wines and liquors.
The bulk of invested capital is English, but in this line the Americans are forging to the front. Germans, Italians, and French are chiefly interested as merchants throughout the country.
There are no taxes or restrictions placed on commercial travelers and samples are admitted duty free.
If you are handling mining machinery or devices for use in mines or petroleum fields, it is apparent that the localities where these industries thrive should be visited personally. Many of the mines have company stores located in their holdings that are worthy of calls, while others maintain purchasing agents in Lima for this purpose. Inquiry of local authorities will give all the information necessary, otherwise the following cities should be visited:
_Population_ Lima 150,000 Callao 35,000 Arequipa 35,000 Cerro de Pasco 18,000 Piura 15,000 Trujillo 12,000 Mollendo 6,000
Cuzco, with a population of 26,000, is hardly worth a visit for business purposes, but is interesting for its historical associations. It was the ancient metropolis of the Inca Empire. Mostly all of its buildings were of stone, set together as wonderfully as the Pyramids, their joints being so perfect that a knife blade cannot be inserted between them. Streets crossed each other at right angles, and were paved with naturally colored stones, forming intricate patterns and geometrical designs, which can still be seen. There was an imposing temple dedicated to the sun, whose walls were studded with gold plates. Water from the mountains ran through the city streets, while around the entire town were fortifications many of which yet remain. Its civilization was of the highest order.
Iquitos, 20,000, should only be visited from Mañaos in Brazil. It is a good business town.
Peruvian ports can be reached via the Straits of Magellan and Smythe Channel from New York or via Colon and Panama. There are direct European steamers from England and Germany weekly, with connections for Panama, either through their own lines or via the Chilean or Peruvian National steamers, both of which make all the ports along the coast. There are also tramp and freight boats from San Francisco which carry passengers, but for personal comfort this service is not to be recommended.
To get to Iquitos, take the river boats from Mañaos, Brazil.
IX ECUADOR
Sebastian de Benalcazar, a lieutenant of Pizarro, on December 6, 1534, was the first European to enter the Kingdom of Quito, the seat of government of the Caras Indians. The Spaniards controlled this territory at different times from Lima, Peru, or from Bogota, Colombia, as conditions warranted.
In 1809 the Ecuadorians attempted to throw off the yoke of Spain, but were unsuccessful in establishing their independence from the Mother Country until May 24, 1822, when General Sucre defeated the Spanish forces at Pichincha, as a result of which Ecuador entered a union, fathered by the Great Liberator, Simon Bolivar, and comprising as its other states Colombia and Venezuela. Internal dissension which grew resulted in the dissolution of this trinity of republics, and on August 14, 1830, Ecuador proclaimed herself an independent republic, adopting a constitution similar to those in vogue in Latin America. The executive power is vested in a President and Vice-President, the legislative in a National Congress composed of two houses—a Senate and a Chamber of Deputies.
Ecuador has an area of 116,000 square miles, or about as big as the combined areas of Missouri and Arkansas. The Galapagos Islands, which at one time the United States tried to acquire by purchase for a coaling station, lying 750 miles to the westward, with an area about 2500 square miles, also belong to this country.
Ecuador is wedge-shaped, bounded on the north and east by Colombia, on the south by Peru while the waters of the Pacific lap its western shore line.
The climate is diversified, running all the gamuts of change from tropic, semi-tropic and temperate to cold. The tropical region, as may be surmised, starts at the coast line and continues to the foothills where it gradually changes to semi-tropical at 6000 feet, and to cold in the fertile plateau on which Quito is situated at about 9000 feet. Above this in the mountains it is always much colder. The Equator passes across the northern tip of the country near Quito, while two ranges of the Andes run parallel throughout its length for 520 miles, embracing some of the highest peaks in the system, Chimborazo being 20,498 feet high and Cotopaxi 19,613. The plateau between these ranges averages 65 miles in width and has a mean altitude of 8250 feet.
These mountains form watersheds giving rise to two river systems, flowing respectively toward the sea and toward the interior, which ultimately develop into 91 distinct rivers, only one, the Guayas, on which Guayaquil is situated about 60 miles from where it empties into the sea, being of any great commercial value. The other rivers which are navigable for a short distance are the Daule and the Vinces in the west, while the extension of the Amazon in Ecuador, there called Marañon, affords direct communication with Brazil.
A census has never been taken in Ecuador but the population is estimated at 1,500,000. Perhaps 1,200,000 would be nearer the true figure. Seventy-five per cent. are Indians, 200,000 half-breeds, 100,000 white, 2500 negroes, with a floating foreign population of 7500.
There are fewer railways in Ecuador than any other country of South America. One American owned and operated railway running from Duran, on the opposite bank of the river from Guayaquil to Quito, a distance of 285 miles, may be described briefly as the scenic road of the world. There is another road of about 20 miles, and one or two contemplated lines.
Ecuador has been cursed by revolutions, and depressed by the lack of enterprise on the part of its various governments. Guayaquil is perhaps the dirtiest city in the world and at all times a hotbed of filth and disease. For these reasons it has been shunned by tourist and traveler alike, although it is one of the best markets I know of on the West Coast.
The country has no great industries. It is, however, susceptible of enormous developments. It has no agriculture to speak of, but can successfully raise sugar, tobacco, coffee, cotton, cocoa, bananas, wheat, cereals and tropical and temperate fruits. Its forests are rich in cabinet and hard woods. Medicinal trees abound, as well as the tagua nut tree from which the ivory nut comes, and the species of palm which furnishes the fibre for Panama hats. Cocoanuts are plentiful and of an excellent quality. There are minerals in quantities sufficient to pay for the mining, such as coal, sulphur, copper, gold, iron and silver. Oil has recently been discovered. Over most of the land disease lurks and the ambition of the native is dead.
The monetary unit of value is the _sucre_, named after one of its military heroes; it has a value in American money of 48.7 cents. Ten _sucres_ are the equivalent of a pound sterling and are called a _condor_, after the Andean bird.
There are a few English houses in business here, but the bulk of the trade is under German control. Many Syrians have come to the country and established themselves as petty merchants.