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                         SELLING LATIN AMERICA


[Illustration]




                         SELLING LATIN AMERICA
                A Problem in International Salesmanship
                    WHAT TO SELL AND HOW TO SELL IT


                                   BY

               WILLIAM E. AUGHINBAUGH, M.D., LL.B., LL.M.

                     _Illustrated from Photographs_

[Illustration]

                                 BOSTON
                        SMALL, MAYNARD & COMPANY
                               PUBLISHERS




                           _Copyright, 1915_

                     BY SMALL, MAYNARD AND COMPANY

                             (INCORPORATED)


                                Printers
                  S. J. PARKHILL & CO., BOSTON, U.S.A.




                                FOREWORD


I made the acquaintance of Doctor W. E. Aughinbaugh about eight years
ago, when I was in charge of the advertising department of a large
concern doing an international business. The doctor came with us to look
after the export trade, especially in the West Indies and South America.
My work naturally brought me into close association with him, and I soon
began to appreciate his unusual ability in many directions and his
special fitness for the position he occupied. There seemed to be no
phase of merchandising in far-off markets with which he was not fully
conversant; nor did this knowledge relate solely to Latin America. He
had previously travelled the distant markets of the Orient in the
interests of an American house whose products he successfully introduced
there and to him the Far East was an open book.

He has been in Egypt eight times on business missions. He has travelled
Somaliland, Palestine, Asia Minor, Morocco, Tunis, Tripoli, Algiers,
South Africa, Persia, Arabia, Afghanistan, Cashmir, Beluchistan, India,
Assam, Burma, Siam, China, Cochin-China, Japan, the East Indies and all
over Europe with the single exception of Russia. The doctor also spent
two years of his restless life in the Far North where a business mission
of importance took him into Iceland, Greenland, Labrador, Newfoundland,
Cape Breton Island, Prince Edward Island and the Hudson’s Bay Country.
As to the West Indies and South America, he has been not only to them,
but through them many times and in every habitable spot where business
was to be done. Some idea may be gained as to the frequency of his
visits to South America by mentioning the fact that he has made
thirty-six trips across the Equator.

Dr. Aughinbaugh talks about the markets of foreign countries with the
authority of long experience for he has been engaged in these special
fields for more than twenty years; yet he is still a young man with a
modern viewpoint. He speaks the languages of many countries and speaks
them well. His information is first-hand, reliable data gathered on the
ground where he lived and worked, whose people he knew and could speak
to in their own tongue, not the unreliable, superficial vaporings of
some dilettante globe-trotter who has given the high-spots of
civilization the “once over” and therefore considers himself a competent
authority to write upon the commerce, customs and manners of foreign
countries the very languages of which he does not understand without the
aid of an interpreter, or who could not find his way back to the railway
station or dock without the assistance of a guide.

Doctor Aughinbaugh is no such lightweight. He has not written this book
because he believes he knows it all. Left to himself he would never have
written it. It was only after repeated urgings on the part of some of
his friends who appreciated his ability to write an unusual book, that
he consented to undertake the work, and then he did so under protest.

It may be asked with pertinence how a man could travel in the interest
of one line and yet be in possession of so much information relating to
every other line; or how one could master the intricacies of foreign
banking and credits and still attend to his business. The answer to all
of this is that no man can successfully negotiate foreign markets unless
he is more than a mere “order taker.” As to the doctor’s ability to
measure the requirements of a market all the way from cereals to
concrete, that may be accounted for by the fact that he is both a
physician and a graduate of the law, and while he never practised at the
bar to any great extent he did have considerable experience in medicine,
a profession which developed a naturally analytical mind, so that he
looked at things with the eyes of a student and from the viewpoint of
the trained diagnostician. For six years he followed medicine in Latin
America, finally giving it up to accept an offer from a large company
who compensated him accordingly. His experience in that line alone took
him all over the world and the ramifications of the business brought him
into close contact with the marketing of nearly every other commodity.
But even had this not been so, he is the sort of man who would have
sensed a business opportunity because he is naturally a keen observer
and everything interests him. He is the type of man who absorbs
information; he does not have to be shown—he sees.

Here, then, is a man possessed of a fund of particularly desirable
information—especially valuable to-day when Europe is war-mad and, in
her sanguinary frenzy, has left open the door of opportunity to peaceful
Uncle Sam. Why not put this information in concrete form for the benefit
of American commerce?

These considerations were put up to the author by some of his friends
who knew him to be a keen, accurate, analytical observer, a writer and a
_raconteur_ of more than ordinary ability, and this book was the result.

Probably never—let us fervently hope never for the same reason—will the
United States have another opportunity such as the present one, to enter
those fruitful fields to the south, where Europe in general, and Germany
in particular, has reaped a golden harvest for so many years.

A careful reading of this book—not a difficult matter, for unlike most
works on commerce it is full of lively interest—will be profitable to
every business man interested in the subject of Latin America. It will
be valuable to those who are equipped or willing to prepare themselves
to cope with conditions as they really are, and just as valuable to
those who are not, for it may save them from the costly mistakes of
experimentation in foreign fields.

                                                        MAURICE SWITZER.

New York, March 20, 1915.




                                CONTENTS


 CHAPTER                                                            PAGE

       I GENERAL REMARKS ON FOREIGN TRADE                              1

      II BRAZIL                                                       13

     III ARGENTINE                                                    31

      IV URUGUAY                                                      49

       V PARAGUAY                                                     57

      VI CHILE                                                        67

     VII BOLIVIA                                                      79

    VIII PERU                                                         91

      IX ECUADOR                                                     106

       X COLOMBIA                                                    114

      XI VENEZUELA                                                   126

     XII CENTRAL AMERICA                                             138

    XIII MEXICO                                                      156

     XIV CUBA                                                        168

      XV SANTO DOMINGO                                               176

     XVI HAITI                                                       182

    XVII PORTO RICO                                                  186

   XVIII THE GUIANAS: BRITISH, DUTCH AND FRENCH                      191

     XIX EUROPEAN POSSESSIONS IN THE WEST INDIES                     199

      XX FOREIGN TRADE WITH LATIN AMERICA AND HOW IT DEVELOPED       212

     XXI METHODS OF DOING BUSINESS                                   224

    XXII THE SALESMAN AND THE CUSTOMER                               242

   XXIII CUSTOM-HOUSES AND TARIFFS                                   266

    XXIV TRADE MARKS                                                 276

     XXV FINANCE AND CREDITS                                         288

    XXVI PACKING AND SHIPPING                                        311

   XXVII ADVERTISING                                                 331

  XXVIII RECIPROCITY                                                 345

    XXIX HEALTH PRECAUTIONS                                          368

         APPENDIX                                                    377

         INDEX                                                       401




                             ILLUSTRATIONS


                                                                    PAGE

 THE HARBOR OF RIO DE JANEIRO                                         14

 AVENIDA RIO BRANCO AND OPERA HOUSE, RIO DE JANEIRO                   28

 TAKING PRODUCE TO THE STATION, ARGENTINE                             36

 GRAIN ELEVATORS, BUENOS AIRES                                        44

 INTERIOR OF A GENTLEMEN’S HAT STORE, ASUNCION, PARAGUAY              60

 A COUNTRY STORE IN COLOMBIA                                          60

 VALPARAISO                                                           68

 LAKE TITICACA AT PUNO, PERU                                          86

 OROYA LINE, PERU                                                     98

 A COMPARISON OF CLIMATES                                            224

 DRYING HIDES AND SKINS IN ARGENTINE                                 240

 AVENIDA CENTRAL, RIO DE JANEIRO                                     262

 CALLE RIVÀDAVIA, BUENOS AIRES                                       288

 A PACK-TRAIN ON THE ANDES TRAIL IN COLOMBIA                         312

 LLAMAS IN CERRO DE PASCO, PERU                                      316

 CHILEAN INFANTRY. _See page 220_                                    340

 ADVERTISEMENT OF COGNAC BISQUIT                                     340

 SOUTH AMERICAN APPRECIATION OF ADVERTISEMENTS “MADE IN
   U. S. A.”                                                         342

 THE PLAZA HOTEL IN BUENOS AIRES                                     368


                                  MAPS

 SOUTH AMERICA                                            _Frontispiece_

 CENTRAL AMERICA                                                     138

 MEXICO                                                              156

 THE WEST INDIES                                                     168




                         SELLING LATIN AMERICA




                                   I
                    GENERAL REMARKS ON FOREIGN TRADE


War completely changes commercial currents. The victor takes the
established and profitable trade, leaving to the vanquished the harder
lines of business and the development of new fields. This is as true of
the first war recorded by history as it will be of the last.

As an illustration of the veracity of this statement it is only
necessary to recall our war with Spain. Prior to her defeat, Spain
controlled the bulk of the banking and commerce of the Philippines, Cuba
and Porto Rico. To her possessions she exported wines, foods,
manufactured articles, textiles, drugs, perfumes, canned goods, shoes
and hats, receiving in exchange their sugar, tobacco and coffee.

To-day the United States consumes all of these exports, while the
requirements of the three countries are supplied by America, which also
does their financing through banks organized in these possessions, and
capitalized with American money. To be more specific and by way of a
concrete example let me mention Cuba, which in 1913 exported
$165,000,000 worth of products, all but 15 per cent. of which was taken
by the United States, the amount shipped to Spain being about
four-tenths of one per cent. During the same period of time she imported
goods to the value of $132,000,000 of which we supplied 65 per cent.
against Spain’s 8 per cent. Since 1902, Cuba’s foreign commerce has
increased 250 per cent. due absolutely to the part played by the United
States in the Spanish-American war. The same condition of affairs in
exports, imports and other lines is equally true, although not on such a
large scale, of course, of the Philippines and Porto Rico.

The Napoleonic wars gave to England the strong position she now occupies
in the financial and commercial world. Her bankers and shippers,
merchants and manufacturers, with one accord grasped the opportunity
that presented itself then and have held the supremacy thus gained for
more than a century.

Perhaps it was the recollection of what gave Great Britain her start in
this field which led the London _Spectator_ to remark, at the outbreak
of war in 1914:

“The present war gives the United Kingdom an excellent opportunity to
capture the export and import trade of Germany and Austria-Hungary.”

If England, engaged in the most desperate and expensive war she or the
civilized world ever has known, with her enormous resources taxed to
their utmost, saw an “opportunity” for trade expansion, how much greater
is the chance in this line for an absolutely neutral power, populated
with keen business men, and provided by Nature with unparalleled
productive possibilities.

The war in Europe developed the most remarkable business situation for
the United States ever presented to any nation. The virtual closing of
all the doors of the export and import trade of the Old World and the
almost total dependence heretofore of the Far East and Latin America,
especially, on Europe for finance and trade connections made the war
truly the psychological moment for us, as a nation, not only to overcome
the lead of the European commercial world, but also to cement by other
than ties of business the bonds of friendship due us not only on account
of our ideal geographical position, but also because of our similar
republican form of government.

By embracing this extraordinary opportunity—apparently almost created
for our express benefit, we being the only people able to profit by
it—we can make the nations which formerly depended on Europe for support
in their trade ventures our business allies, our sincere friends and
well-wishers, and at the same time bring about a new trade alignment so
that all America will reap the benefit.

Let us briefly consider some of the enormous possibilities of foreign
trade in Latin American countries.

Latin America—that is, the countries of Central and South America,
together with Mexico, Cuba, Santo Domingo and Porto Rico—comprises
twenty distinct states, with a total population of about 65,000,000, a
large portion of whom are Indians and half-breeds—a fact which we should
not lose sight of in view of the tremendous imports.

Statistics recently compiled by the Pan-American Bureau show that these
countries, in 1913, conducted a foreign commerce valued at
$2,870,178,575. Of this the imports were $1,304,261,763, and the
exports, $1,565,916,812, thus giving Latin America a favorable balance
of $261,655,049.

Ten of these countries alone purchased goods to the amount of
$961,000,000. Of this sum Great Britain supplied $273,000,000; Germany,
$180,000,000; France, $84,000,000; Italy, $54,000,000; Belgium,
$47,000,000, and Austria-Hungary, $8,000,000. The United States exported
to these ten countries last year $160,000,000 and imported from them
$250,000,000. Brazil, in 1913, imported $15,000,000 in textiles alone,
of which amount the United States supplied only $500,000. In the same
length of time Argentine imported goods to the amount of $468,999,996,
of which amount less than 8 per cent, was supplied by this country. The
United Kingdom exported to all of Latin America $23,500,000 worth of
coal in 1913, the United States, during the same period of time,
$750,000.

Practically the same story in all lines of exports could be told of
these countries, demonstrating that individually in nearly all cases the
United States is the largest consumer of their raw or finished products
and the smallest exporter of the goods they most require.

Fearful that some one may infer after looking at these figures that
European countries have preferential duties with Latin America, let me
state most emphatically that this is not the case. With one single
exception no favoritism is shown any of the trading nations, in the
matter of import fees, and in that instance we benefit by it. Brazil
makes a decided preferential tariff in favor of some of our goods in
view of the fact that we are the largest consumers of her chief
product—coffee.

Everyone of these countries is in process of development and expansion.
They have in profusion the things the busy world most needs. Their mines
are the richest known to man. Some have been worked for thousands of
years and are still productive. Their broad fields are destined to make
them the granaries of the world. Their miles of pasture lands and their
extensive acreage mean that Europe and the United States will depend
upon them for meat. Their vast virgin forests are capable of supplying
humanity with cabinet and other woods for several centuries. Their trade
and imports must therefore increase. It is apparent that they cannot
diminish. We cannot as a nation afford to remain indifferent any longer
to their possibilities and opportunities.

Very naturally there have been many objections on the part of our
business men to going after this trade which all of Europe strained
every resource to acquire and control. It was urged that we had all the
business we required; that we lacked foreign banking facilities; that
our merchant marine was small and inefficient; that to go abroad for
trade meant learning new languages, acquiring new customs, opening new
accounts, taking more risks. These conditions were equally true when the
European merchant decided to enter this field. He met and overcame all
these difficulties under far more adverse circumstances than exist for
us, to-day. His experience in this territory has charted the path for us
to follow, and if we take advantage of the beacons he has erected we
shall be saved from many pitfalls.

Latin America with the things the world most requires—wheat, meat, wool,
coffee, sugar, nitrates, minerals, woods—can never collapse completely
through any financial crisis. Furthermore its power of reviving quickly
from any unfavorable panic is truly phenomenal. I recall Venezuela, the
year she terminated her bloodiest revolution under Castro, harvesting
and exporting a bumper crop of coffee, which immediately cleared up her
monetary depression, and this rapid convalescent condition has been
duplicated time and time again after every period of internal trouble
experienced by all of these countries.

Nature has been bounteous in her gifts to these favored lands of the
sun. If in a given locality the soil is not fertile, it is rich in
mineral wealth, or covered with luxuriant forests. Throughout Latin
America large and small rivers afford easy and cheap means of
transportation. Drought or excessive rainfalls are comparatively
unknown. Despite the fact that a majority of the population lives
primitively, epidemics of a severe nature have been few and far between.
Revolutions, formerly the blight on these lands, are becoming rare and
in most of these countries there have been no such uprisings or
demonstrations of this character for more than twenty years.

The opportunities for successful business in almost any chosen line in
Latin America are unlimited, provided one uses ordinary judgment and
simple tact in the undertaking. Furthermore less capital is required to
start an enterprise than in lands where competition is keener, and less
energy necessary to insure success. The truth of these statements is
demonstrated most completely by the fact that millions of Europeans—many
of them uneducated and possessed of no great amount of ability or
money—have settled throughout these lands and established themselves in
prosperous occupations.

The greatest possibilities exist along the lines of general development.
All these countries are new; most of them practically unexplored—many of
them not even having their boundary lines definitely established. Think
of what must be the opportunities in Brazil—a country larger in area
than the United States, and supporting only 20,000,000 people—or of
Argentine, spreading over almost as much territory as Europe, excepting
Russia and Austria-Hungary, with a population slightly more than
7,000,000. It is to these countries that overcrowded Europe must come
for elbow room—for a glimpse of the sun.

Once a business or a plant is established in Latin America one need not
have the intense fear of bitter local competition. These people have
never been manufacturing or creative in their desires, and the chances
are, if we are to predicate their future from their past, that they
never will become competitors in any of these fields. Climatic
conditions, racial and inherited traits have made them follow the lines
of least resistance and they have become cattle raisers and large
farmers, while comparatively few have entered commercial life. This
being true it follows that these countries are ideal for those desirous
of leading an active commercial or manufacturing career.

All of Latin America is in the process of awakening. They are building
railways, making vast municipal and national improvements, exploiting
their natural resources, modernizing their agricultural methods. The
advent of the foreigner has been potent in raising their standard of
living. If these people were to raise their standard of living to that
of the United States at the present time, it would be the equivalent, so
far as market possibilities are concerned, to creating three new
Americas. Each day sees some progress in this direction, and with it a
desire for more of the comforts of modern civilization—for more of the
things which go to make up the full and complete life. This means
employment for their people—civic progress—and prosperity.

Their markets are easily reached, the merchants willing to buy, our
producers capable of providing the things they require. Their first
orders may be small, but they become enormous buyers when they find the
article adapted for their needs. The European marts which might have
supplied the things these nations require in their growth cannot do so
for a long time to come, thus giving us an ideal opportunity to capture
these markets and at the same time introduce American methods throughout
the length and breadth of the land.




                                   II
                                 BRAZIL


The Republic of the United States of Brazil, including the Acre
Territory, is the largest of the South American countries and if we
include Alaska and our island possessions is really larger in area than
the United States of America, by about 200,000 square miles. It is
fifteen times larger than Germany and sixteen times larger than France.
With the exception of Ecuador and Chile its frontier touches every
country of South America, being bounded on the north by British, French
and Dutch Guiana and Venezuela; on the west by Colombia, Peru, Bolivia,
Paraguay and Argentine; on the south by Uruguay, while the Atlantic
Ocean forms its eastern and a portion of its northern limitation. Its
most eastern point is but three days’ sail from the western coast of
Africa. It is the fourth largest country in the world, and is widest
between the Equator and the Tropic of Capricorn, covering an area of
3,292,000 square miles.

The population has been variously estimated at from 20,000,000 to
24,000,000, of whom less than 1,000,000 are aborigines, thus giving it
about one-fifth of the population per square mile of the population of
the United States of America. Its inhabitants are white, black,
mulattoes, Indians and mixed breeds, a heavy percentage being
descendants from the slaves imported originally from Africa, slavery in
Brazil having been abolished in 1888.

The language of Brazil is Portuguese except among the Indian tribes,
each one of which has its own dialect. These Indians are to be found in
the interior and the remote districts, and are a negligible quantity as
far as trade is concerned, living primitive lives and having few wants
that the rich country and rivers cannot supply.

[Illustration:

  The Harbor of Rio de Janeiro
]

Brazil was discovered April 22, 1500, by Pedro Alvarez Cabral, a
Portuguese explorer, but no definite attempt was made to settle it, or
assume governing power by the Portuguese until 1549, fifty-seven years
after Columbus had been to America, when Portugal awoke to the great
possibilities of the country and dispatched her first Governor General
in the personage of Thome de Souza.

During the century following the arrival of its first constituted
governor, Brazil became the scene of numerous attacks and invasions on
the part of the French, Dutch and British, each one desirous of
acquiring portions of its territory, having been attracted by the
current stories of its great wealth and latent resources. For a time
both France and Holland established themselves in a small way within its
boundary, but ultimately abandoned their outposts.

From 1640 to 1808 Brazil was governed by a Viceroy, who resided in Rio
de Janeiro. The victorious armies of Napoleon and their progress across
the Spanish Peninsula ultimately caused King John to abandon his capital
in Portugal and flee to Brazil, where he established himself in Rio de
Janeiro (in 1808), and ruled Portugal from this one of his possessions.
This is the only instance in history of any portion of Europe ever being
ruled from the western continent. When peace came to Europe, King John
returned, leaving Brazil under the regency of his eldest son Dom Pedro,
who in 1822, proclaimed Brazil independent of Portugal, and established
himself in power as Emperor, the first and only instance of such a form
of government in South America. Dom Pedro was forced to abdicate in 1831
in favor of his son Dom Pedro II, who after reigning through a regency
assumed the throne on becoming of age in 1840. It is unnecessary to
detail the causes that led to the bloodless revolution of November 15,
1889, which ended his reign and by means of which Brazil proclaimed
herself a republic, adopting a constitution patterned after our own and
a government comprising a President, with legislative powers vested in a
Congress composed of two bodies, a Senate and a Chamber of Deputies.

Brazil is so immense, situated between the fifth degree north and the
thirty-third degree south, and its topography so varied that it has all
kinds of climates excepting extreme cold. Lying in the temperate and
tropical zones one would incline to the belief that it would be more or
less warm, but its many rivers and mountains, its high table-lands and
plateaus exert a beneficial influence in this regard and materially
modify what otherwise would be extreme degrees of heat.

More than half of Brazil is an elevated plateau, varying from 2000 to
3000 feet in altitude. It has four distinct mountain ranges, which
deflect its rains and form vast watersheds for irrigating the fertile
lands at their base. The eastern and central portions are elevated while
the chief characteristics of the north and west are its fertile plains
and valleys.

The coast of Brazil straggles along for over 5000 miles and is provided
with numerous natural harbors, where the earlier settlers established
cities which have grown and prospered, the principal ones from the north
to the south being Belem, or Para, San Luiz, Parnahyba, Fortaleza or
Ceara, Natal, Parahyba, Recife or Pernambuco, Maceio, Aracaju, São
Salvador or Bahia, Victoria, Rio de Janeiro, Santos, Paranagua, São
Francisco, Rio Grande do Sul and Porto Allegre. As a rule each of these
ports is the terminus for a railway system penetrating the interior,
designed solely for the purpose of bringing the products to market and
carrying supplies and necessities to the part of the country dependent
upon it. There are practically no trunk or interstate lines, but plans
are now formulated to overcome this condition.

Manaos is an inland port of Brazil, famous as a trading depot and one of
the centers of the rubber industry. It is located on the Rio Negro, at
its mouth where it empties into the great Amazon, one thousand miles
from the Atlantic Ocean, and maintains direct steamship connection with
the United States and Europe as well as the other ports of Brazil.

Perhaps no other country in the world is so well provided with rivers as
Brazil. The mighty, muddy Amazon, the greatest river in existence,
practically traverses the country from east to west in its 3850 miles
journey to the sea. Some idea of its strength and volume may be gained
when I state that its yellow waters color the Atlantic for over 100
miles beyond its mouth, and freshen the salt water for a distance of 180
miles. Emptying into this Queen of Rivers are more than 200 tributaries,
over 100 of which are navigable, the famous Rio Roosevelt or River of
Doubt forming one of the number. There are over 10,000 miles of
navigable waterways for ocean vessels and 20,000 miles for light-draft
boats.

Brazil is a pastoral country and the indications are that it will always
remain so. Its vast savannahs and fields have formed ideal locations for
raising cattle and sugar, while its mountain sides and plateaus are
unparalleled for the growth of its staple product—coffee, the average
yearly crop of which is the enormous amount of 1,596,000,000 pounds.
Rice, cotton, sugar, tobacco, matte (a species of tea for native use),
mandioca (a starchy tuber from which a bread is made much liked by the
native) and cacao are also extensively grown. India rubber, the use of
which was early known to the Indians of Brazil, to whom it is indebted
for its name, is the second leading product of this remarkable land. The
tree, the juice of which produces this twentieth century necessity,
grows wild in the northern portion of the country, although it can be
successfully cultivated. No effort is made to preserve the trees when
once tapped, and the rubber prospectors are continually going farther
and farther into the interior in search of new districts. The trees are
from three to twelve feet in diameter, of slow growth, indigenous to the
region of the Amazon and its tributaries, growing wild, scattered
through the jungles and tropical shrubbery.

The forests of Brazil are practically virgin. They abound in dye,
cabinet and hard woods and the opportunities for the development in this
field alone are enormous. Due to the fact that the country has a
wonderful series of aqueous arteries the transportation problem to mills
and markets is easily solved and the waterpower can be used in preparing
the timber for shipping.

Brazil has at present more local factories than all the other Latin
American countries combined, forty per cent. of her manufactured
articles being cotton goods, which find a ready market. In the Federal
District of Rio de Janeiro, five of these mills have eight thousand
operatives, producing yearly about 80,000,000 yards. Petropolis has four
mills and São Paulo twenty-five with a total output of nearly
100,000,000 yards. The number of establishments in this industry alone
amounts to 3664, giving employment to 168,760 hands, with a total yearly
output of 275,000,000 yards of goods.

Of late the shoe-making industry has developed extensively. In 1913
there were in all of Brazil 4524 factories employing ten or more
operatives, with a total invested capital of $18,857,000. These plants
are nearly all operated by American machinery, many of them under
American superintendents, the demand for American equipment being
sufficiently large to warrant the big shoe machinery and shoe-finding
houses of New England in maintaining their own offices and carry their
own stock in the larger cities devoted to this business.

Brazil is wonderfully rich in mines of precious and semi-precious
stones. Among the semi-precious stones to be found are achroite,
actinolite, agates, amethysts, analcime, anatase, andalusites,
anthophyllite, apophyllite, apatite, aquamarines, cymophane, citune,
columbite, desemine, iolite, jasper, opals, ruby, sapphires, spinel,
topaz, tourmalines. There are many deposits of minerals, such as copper,
iron, silver, gold, arsenic, barium, bismuth, cinnabar, cobalt, galena,
manganese, nickel, platinum, tin, and wolframite. There are also rich
veins of asbestos, coal, soapstone, sulphur, salt, marble, mica, and
evidences of petroleum.

Gold has been mined in Brazil for over 300 years, the principal deposits
being in the State of Minas Geraes. A mine near the Honario Bicalho
station produced from 1888 to 1912, over $26,000,000 worth of gold and
as late as 1911, paid a dividend of 10 per cent. An English authority
has estimated the total output of gold to date from all mines at
$1,000,000,000.

Brazil is reputed to be the second largest diamond-producing country in
the world, the Brazilian stone being considered fifty per cent. better
than others owing to the constant attrition it has undergone in
prehistoric days. At one time more than 40,000 men were employed in this
industry in Minas Geraes alone. The best diamond fields extend from 10
degrees to 25 degrees south latitude and many enormous and high-grade
stones have been discovered, the total amount exported in 175 years or
up to 1903, being estimated at four tons. Edwin Streeter in his book on
precious stones, says that “The State of Minas Geraes produced in the
first twenty years 144,000 carats. Up to 1850,—5,844,000 carats worth
$45,000,000 were sold and some $10,000,000 stolen from the mines by
employes.” As an evidence of the fact that these mines are still
productive, there were registered 456 claims in 1909 in the Diamanta
Districts, which produced $1,000,000 worth of gems. In 1911 there were
registered in the State of Minas Geraes 437 claims.

Travel along the coast and to the cities located on the railway lines is
comparatively convenient and comfortable although very expensive. In the
interior and from the beaten paths it is difficult and filled with
hardships.

Living is high—much more so than in the larger cities of the States or
Europe. Hotels are far from the standard one is accustomed to in towns
of corresponding size, throughout the world—a statement equally true of
all Latin America.

At first the monetary system of Brazil may confuse one, its currency
being on the gold exchange basis. A _milreis_ is the unit of value and
while it is subject to fluctuation, may for all practical purposes be
reckoned as worth .33⅓ cents, or three _milreis_ as the equivalent of a
United States dollar. The symbol for the unit is $ and the value of our
dollar would be expressed thus 3$000. A _conto_, or about $333.33 would
be written 1000$000. The banking of Brazil is chiefly controlled by the
British, while Germany is their closest competitor, both France and
Italy being represented each by a bank. The National City Bank of New
York has recently established a branch in Rio de Janeiro, with
sub-agencies throughout Brazil, so that direct exchange on New York may
now be bought.

Brazil imported in 1913, $326,428,509 worth of goods, of which sum the
United Kingdom supplied $79,881,008; Germany, $57,043,754; United
States, $51,289,682; France, $31,939,752; Argentine, $24,293,712.

In the same period of time she exported goods to the value of
$315,164,687, the United States taking about one-third of the total
amount or to be exact, $102,652,923; Germany, $44,392,410; United
Kingdom, $41,701,815; France, $38,685,561; Holland, $23,252,700.

The United States should do a much larger trade with Brazil owing to a
preferential duty allowed our nation due to the fact that we are the
largest consumers of her leading staple—coffee. According to government
decree No. 9323, of January 17, 1912, flour imported from the States
pays 30 per cent. less duty than if imported from any other land, while
dried fruit, condensed milk, typewriters, rubber articles, and supplies,
scales, refrigerators, cement, corsets, school furniture, windmills,
watches, desks and printing inks, pay 20 per cent. less duty than
similar articles imported from other countries.

Brazil exports coffee, rubber, hides, skins, cacao, tobacco, salt,
cotton, sugar, woods, nuts, precious and semi-precious stones and gold.
She imports foodstuffs, shoes, machinery, textiles, building woods,
ammunition, wheat, automobiles, vehicles, codfish, dried fruits, glass,
toilet articles, building and kitchen hardware, cement, scientific
instruments, iron and steel, enamelled ware, paints and varnish,
haberdashers’ goods, cottons, hats, corrugated iron, galvanized iron,
tools, condensed milk, stationery, pipe, printing material and presses,
electric machinery and supplies, typewriters, nails, screws and rivets.

American fruits are much in demand in Brazil, and an excellent market
exists to-day for apples. Potatoes, onions, beets, garlic and other
fresh vegetables would also sell well and a lucrative trade in these
necessities of life could be developed without any great effort. The
refrigerator ships running from the Argentine to New York with meat
could carry as return freight these perishable cargoes at a low rate.

Steamship connections between Europe and the United States, with
Brazilian ports are numerous and sailings comparatively frequent and as
a rule the accommodations are all that could be desired. From New York
the Booth line (English) has two steamers a month to North Brazil and
Amazon River towns, touching at Barbados, Para and Manaos, with a ship
every six weeks to Iquitos, Peru. One steamer goes each month to North
Brazilian ports including Parnahyba, Natal and nearby localities. The
United States Steamship Line (American) has one vessel monthly for
Pernambuco, Rio de Janeiro and Santos, freight being redistributed at
these ports for intermediate points. The Lloyd Brazilleiro Line
(Brazilian) maintains a semi-monthly service between New York and Natal,
and Parahiba; and Pernambuco, Rio de Janeiro, and Santos, with
occasional service to other larger ports. These boats do not as a rule
carry passengers. They also maintain a service along the smaller coast
towns and the rivers leading into the interior of Brazil, even having
regular sailings from Asuncion, Paraguay, for Brazilian river towns. The
Lamport & Holt Line (English) has weekly sailings from New York to
Bahia, Rio de Janeiro and Santos, generally stopping at Trinidad and
Barbados, West Indies, on their trip north. The Prince Line (British)
touch once a month at Rio de Janeiro and Santos, carrying freight
chiefly. Other vessels of this line make monthly calls at Pernambuco,
Bahia, Rio de Janeiro and Santos. Numerous tramp ships also sail from
American ports on the eastern coast of the States to Brazil.

[Illustration:

  _Photograph by Underwood & Underwood_

  Avenida Rio Branco and Opera House, Rio de Janeiro
]

Brazil has 15,272 miles of railways, federal, state and private, over
many of which tickets which correspond to our mileage books are issued,
for the convenience of the travelling public. Many new lines are in
process of construction or contemplated, and a very decided effort is
being made to unite the various main lines by connecting roads, so that
the entire republic, including its most remote districts, may be thus
reached.

The leading cities, which should be visited for business purposes, are:—

                                           _Population_
                Rio de Janeiro                1,128,000
                São Paulo                       450,000
                Bahia                           300,000
                Belem or Para                   250,000
                Pernambuco                      200,000
                Porto Allegre                   125,000
                Mañaos                           60,000
                Santos                           45,000
                Campinas                         40,000
                Ceara                            40,000
                San Luiz or Maranao              40,000
                Parahiba                         32,000
                Nichteroy                        30,000
                Florianopolis, or Desterro       27,000
                Rio Grande do Sul                20,000

Some of the States and municipalities of Brazil have a special tax for
commercial travellers, which varies from year to year, concerning the
payment of which arrangements can be best made when on the ground. A
small tax is also levied on trade samples, presumably to be refunded
when leaving the country. It is advisable to learn how best to handle
the situation from travellers with whom you will meet en route. As a
rule, all of these are mere matter of detail and can be advantageously
arranged, through the proper channel.




                                  III
                               ARGENTINE


Juan Diaz de Solis in 1508 discovered the Rio de la Plata, otherwise
known as the River Plate, while searching for a southerly passage to the
Pacific Ocean. In 1525 Sebastian Cabot entered the river and gave it the
name it now bears, at the same time erecting a fort near its mouth. A
wealthy Spaniard, Pedro de Mendoza, in 1536, in exchange for certain
landed rights and governmental privileges, established what is now the
present city of Buenos Aires.

It is unnecessary for the purposes of this book to do more than state
briefly that the conditions imposed by Spain on all its colonies were
outrageously unjust and caused much dissension. Efforts to progress were
throttled and the friction between the mother country developed until
the conquest of Spain by Napoleon, which gave the many Spanish colonies
that had become thoroughly satiated with disgust and contempt for the
Madrid Government, a chance to rebel and establish themselves as
independent nations. Taking advantage of the condition in Europe and
having in mind the successful revolution of the American colonists, the
people of Argentine, Bolivia, Paraguay and Chile revolted, and after
much fighting finally drove the Spanish troops from their shores. May
25, 1810, the people of Buenos Aires declared their independence. A
Congress was held in Tucuman on July 9, 1816, the result of which was
the more complete unification of the Argentine people under the title of
the United Provinces of the La Plata River. The government in 1860
adopted as its national title “The Argentine Nation” by which it now
prefers to be called.

Few know that the British had covetous plans upon this really wonderful
country and twice invaded it, once in 1806, and again in 1807. After
their fleet had bombarded the capital, the troops landed, and were both
times thoroughly defeated, some of the English battle flags which were
captured still being exhibited in Buenos Aires.

The government of the Argentine Nation is patterned after that of the
United States of America, and has a constitution similar in its
important features. There are three branches of government, executive,
legislative and judicial; the legislative power being vested in a
Congress composed of a Senate and a House of Deputies. The executive
power is vested in a President and Vice-President elected as those of
the United States, each holding office for the period of six years. Of
late the Government has been very stable and there have been less
tendencies to overthrow the authorized power than in most Latin American
countries. By a treaty with Chile in 1881, the great territory of
Patagonia, to the south of the Argentine, was divided between these two
nations.

Argentine covers an area of 1,153,418 square miles, or about one-third
as large as the United States. To be more specific it is as large as
Texas, and all of our territory east of the Mississippi. It is bounded
on the north by Bolivia, and Paraguay, on the west by Chile, on the
south by a portion of Chile and the Atlantic Ocean. Paraguay, Brazil and
Uruguay, together with the Atlantic Ocean which washes its shores for
more than 1500 miles, constitute its eastern boundary. Over 700,000,000
acres of its land is admirably adapted for cattle raising and the
growing of cereals, a fact which argues much for its future development
and prosperity.

Its population is variously estimated at from 6,000,000 to 9,000,000 but
it can with safety be placed at 7,000,000, a little less than 25 per
cent. of its inhabitants residing in the city of Buenos Aires, which has
1,700,000 citizens, a rather unusual condition of affairs. The early
settlers of the Argentine were of course Spaniards and their descendants
form the bulk of the population to-day. There are comparatively few
blacks or mixed breeds, slavery having been abolished in 1813, while the
Indians and aborigines are scattered along the frontier. Early in its
history Argentine encouraged emigration from Europe, using as an
inducement the free grant of public lands, which proved especially
attractive to the Italian and Spaniard. In fact the preponderance of the
Italian in the business and social life, due to this movement has had a
noticeable effect on the Spanish language as spoken in this country.
From 1857 to 1913 the total of newcomers amounted to 4,781,653, many of
whom became landholders and began at once to contribute to the growth
and wealth of the country. The population to-day is 7.8 persons per
square mile as against 32.31 per square mile in the United States. More
than 300,000 persons migrate to this country each year.

The chief characteristic of the physical formation of the Argentine is
its vast pampas or plains stretching from the Rio de la Plata to the
west, terminating in the foothills of the Andes, or the Cordilleras.
Perhaps no part of the earth’s surface has such flat, smooth, treeless
plains as here confront the traveller. The climatic conditions, owing to
the fact that it extends over thirty-four degrees of latitude, vary from
tropical in the north to practically arctic coldness in the south, the
seasons being the reverse of ours,—that is, they have winter when we
have summer and vice versa. The greater portion of the country is in the
temperate zone, the summers being very hot and the winters typified by
heavy rains, especially in the eastern portion, diminishing toward the
west where there is often much drought. In the extreme south, in what
was formerly Patagonia the heavy snows of winter take the place of
rains, which together with the warm summers produce a luxuriant growth
of grass, especially adapted for the grazing of sheep.

[Illustration:

  _Photograph by Underwood & Underwood_

  Taking produce to the station, Argentine
]

The Argentine has for some years been one of the granaries of the world
and as its available land becomes cultivated is destined to play a more
important rôle in this field. Some idea of its rapid development may be
gained from the fact that in 1904, 26,000,000 acres were under
cultivation, while in 1913 over 60,000,000 were sown. Wheat is of course
its chief cereal, last year over 17,000,000 acres being cultivated. The
Argentine Agricultural Department states that for the same period of
time there were 12,000,000 acres in corn; 4,000,000 in oats and
15,000,000 in lucerne or alfalfa, proportionately large territories
being planted with barley, sugar, grapes, rice, cotton and tobacco.

This country has been the second largest linseed producing nation of the
world, yielding first place to India. Last year nearly 6,000,000 acres
were devoted to the growing of this seed alone.

Comparatively little attention is paid to truck gardening or the raising
of kitchen vegetables, fruits or berries, and this offers a remarkable
opportunity to one versed in the subject. Conditions for growing these
necessities are most favorable but have been neglected in the efforts
made to develop other sources of revenue.

Tucuman has been the center of the sugar industry, practically all of
which is consumed in the country, 43 refineries and plants being devoted
to this business. The grapes grown at the foot of the eastern slopes of
the Andes, near and around Mendoza, yield 500,000,000 quarts of wine
yearly, most all being for internal consumption. Owing to the reversal
of seasons here, crops are harvested when ours are being sown.

Recently dairying has developed to a remarkable extent, over 1300
creameries and factories being devoted to the manufacture of butter and
cheese, doing a gross business of nearly $9,000,000. Much butter and
cheese are shipped to England, Brazil and South Africa. For the first
time in its history, butter was exported to the United States last year.

Flour milling was established in the Argentine in the 16th century.
Prior to this Chilean flour supplied the demands for this article.
To-day in addition to providing sufficient for its own requirements,
Argentine ships much of its flour to Brazil, Chile and Europe and has
about 800 flour mills in operation, representing an investment of
approximately $14,000,000.

From the days of the early Spaniards stock-raising has flourished and
will always be one of the chief industries of the land. Not only the
Government but individuals as well realize this and co-operate with each
other for the purpose of producing the best strains of all breeds of
cattle.

There are many “refrigerificos” or cold-storage plants and abattoirs
throughout the land and for years Europe received practically all of
Argentine’s animal products, her exports in this line alone being
approximately $350,000,000 in 1914. Due to the fact that these
establishments were operated by British capital, England naturally took
most of this meat. The larger American packing-houses have now entered
the trade with the double purpose of supplying both their European and
American customers from this field and direct refrigerator ships now run
from the River Plate to New York City with cargoes of Argentine beef and
mutton. The last census showed 30,000,000 beef cattle; 9,000,000 horses;
500,000 mules; 300,000 asses; 90,000,000 sheep; 4,000,000 goats and
3,000,000 pigs.

Nature seems content in having blessed this country with fertile pampas
and agricultural lands, consequently there are comparatively few
minerals within its territory. There are however some veins of gold,
silver, copper and wolfram. Petroleum has recently been discovered, but
not in large quantities. There is no coal in the Argentine, but in some
sections bogs of peat cover extensive areas and await development.

To the north and in the interior are forests of valuable woods, there
being over thirty-three species of commercial value. Quebracho wood is
found in the provinces of Santa Fe, Santiago del Estero and Corrientes.
It is very hard, impervious to moisture and will not rot. Due to these
admirable qualities it was formerly used for sleepers for railways but
now owing to the fact that it is excessively rich in tannin it is used
almost exclusively for the purpose of curing leather. Formerly it was
exported in large logs to Europe or to the States and the tanning
extracts expressed, but to-day there are many factories in the districts
where the wood is grown, devoted to obtaining the tannin directly,
thereby materially reducing the cost of the article. Inasmuch as hides
and quebracho are products of the Argentine it would seem that the
tanning of leather would under proper management develop into a large
industry here. The export of tannin for 1914 was over $11,000,000.

Outside of the industries referred to and a few breweries, cigar
factories, and apparel factories, wherein goods for local consumption
are produced, there is no general manufacturing in the Argentine.

No other country of Latin America is as well provided with railways as
the Argentine, nor with as regular and superior access to Europe and the
States and all parts of the world. More than fifty steamship lines
arrive and depart regularly from the various Argentine ports, all the
seafaring nations of the earth being represented. In 1852, one observer
counted over 600 vessels in the harbor of Buenos Aires flying the
American flag or more than double the number of all the other nations
combined. To-day but few are to be seen in the vast shipping of this
busy port.

The Argentine Republic stands ninth among the world’s nations in the
length of her railways, having about 22,000 miles of track. Many lines
are in process of construction or contemplated, the public and the
government both realizing that a complete network of railways leading to
the ports accelerate the moving of crops and cattle and are absolutely
essential to its prosperity. Buenos Aires quite naturally is the
principal terminal of most roads, while Santa Fe, Rosario, Bahia Blanca
and La Plata are rapidly coming to the front as shipping centers and are
providing appropriate facilities for handling trade. It has been said
that every railway in the country is extending its lines more and more
into the interior, and railway journeys to Brazil, Paraguay and Bolivia
as well as Chile are now possible. It may be interesting to note that
the longest stretch of straight track known to railroad builders is to
be found in the Argentine, where the rails run a distance of 175 miles
without a curve of any kind.

Wagon roads outside of the larger cities are poor and in bad condition,
and much is needed to be done in this respect.

There are many weekly sailings of the most modern and swift passenger
ships to Europe, one Italian line making the voyage from Buenos Aires to
Genoa in fifteen days. It is also possible to go via Hamburg or England
to New York in better ships for practically the same money and in less
time than is taken by ships engaged in the direct run from Buenos Aires
to New York. The Lamport & Holt Line (British) runs directly from New
York to Buenos Aires, with weekly sailings, carrying freight and
passengers. The Prince Line (British) and the Barber Line (American but
flying the British flag), the Norton Line (British), the American Rio
Plate Line (American) leave New York twice a month for Argentine ports.
The Houston Line (British) from Boston and New York and the New York and
South American Line sail monthly from New York for River Plate ports.
The Munson Line (American) from Mobile, Alabama, sends two ships monthly
to Buenos Aires. There are many tramp ships from American ports in this
trade also.

The docks and facilities for handling goods in Buenos Aires are second
to none in the world and are modeled after the famous Liverpool system,
having cost over $50,000,000. Steamers unload cargoes directly into the
government custom warehouses, on the other side of which are networks of
railway tracks from which they can be forwarded to the interior. Each of
the large cement-sided canals or basins for the ship traffic is provided
with locks or water gates, while the masonry warehouses, buildings and
grain elevators extend for miles along the city water front. Yet the
business of the port has grown so that there is much congestion,
especially at certain seasons of the year and plans are being considered
for doubling its present facilities.

[Illustration:

  _By permission of the editor of_ The Americas

  Grain Elevators, Buenos Aires
]

Much of the impetus in trade circles in this land is due to the presence
of the English, Germans and Italians who control the banking,
transportation and commercial life of the country. Both the Briton and
the Teuton have large sums invested in all kinds of enterprises, the
total being estimated at $2,000,000,000. The Italian has developed into
the small shopkeeper and farmer. In Buenos Aires alone there are two
daily papers printed in English, which serves to give some idea of the
extent of the English speaking population in this city. There are also
daily papers published in Italian, German, French and Arabic.

Practically all the nations of Europe are represented in the banking
business, the United States being the last to enter the field. The
English are the strongest and the Germans next.

Argentine is supposed to be on a gold exchange basis, the gold _peso_
being worth one hundred _centavos_, or in our money 96.5 cents. The gold
_peso_ is designated by the sign $C/L, the symbol C/L meaning _curso
legal_, or legal tender. This is practically an imaginary coin, and the
money one sees is paper currency, the paper _peso_ being worth 44 per
cent. of its face value, or 42.46 cents in United States gold. This is
represented in the following manner $M/N, meaning _moneda nacional_ or
national money. This paper currency fluctuates slightly each day, being
governed by the market conditions. The abbreviations O/S, C/L, and M/N
are placed before the dollar or _peso_ mark, as for example O/S $500 or
may follow it, as, for instance, $500 M/N.

The Argentine has long been noted for its unfavorable fees charged
travellers, each province having a separate tariff, varying according to
the commodity one may be selling. They are subject to such changes on
short notice that it is useless to give them here, besides the subject
has been dealt with elsewhere in this book. Before doing business it is
wise to give this matter careful consideration. No duty is charged on
samples.

The following cities should be visited:

                                    _Population_
                       Buenos Aires    1,700,000
                       Rosario           300,000
                       Cordoba           120,000
                       La Plata          100,000
                       Tucuman            80,000
                       Bahia Blanca       75,000
                       Mendoza            65,000
                       Santa Fe           50,000
                       Salta              40,000
                       Parana             37,000
                       Corrientes         30,000
                       San Juan           16,000
                       San Luis           15,000

The Argentine exported goods to the value of $468,999,410 in 1913, and
during the same time imported goods to the extent of $408,711,966, of
which amount less than 8 per cent. came from the United States. England
controlled the bulk of the trade with Germany second and France third.

The principal exports are meats and meat products, agricultural products
such as wheat, corn, oats, barley, linseed, hay, alfalfa, woods and dye
woods, live animals, wool, hides, skins, butter and cheese. It imports
foodstuffs, textiles, iron, steel, railway supplies and rolling stock,
agricultural implements and machinery, wagons, carriages, automobiles
and automobile supplies, electrical apparatus, glass, china, ready-made
clothes, hats, shoes, toilet articles, drugs and chemicals, paints and
varnish, stockings and socks, silks, kitchen-utensils, enamelled ware,
tools, vegetables, fruits, eggs, oils, greases, and coal.




                                   IV
                                URUGUAY


The first European who set foot on Uruguayan soil was the man who
discovered the Rio de la Plate—Juan Diaz de Solis. This was in 1508. He
and his associates were immediately attacked by the Charruca Indians,
who annihilated the party. Later on Portuguese settlers from Brazil
attempted to colonize this land, but they met with repulses, as did also
the Spanish colonists who followed them. As a result of the invasion of
this territory by Portuguese and Spanish it was claimed by both these
countries and became a bone of contention between them for more than two
hundred years. The Portuguese colonists were finally routed bodily and
their city of Montevideo, founded in 1724, came under control of the
Spanish Viceroy. Portugal still persisted in claiming this province and
when Dom Pedro made an Empire of Brazil, he also attempted to exercise
jurisdiction over Uruguay as well. This ultimately resulted in a war
between Brazil and Argentine, in which the Uruguayans rallied to the aid
of the Argentinians, defeating the Brazilians. A treaty of peace in
which the mediation of England was asked, was signed August 27, 1828,
giving Uruguay its independence.

The present government is based upon that of the United States and
comprises executives in the persons of a President and a Vice-President,
elected for four years, and a legislative body, consisting of a House of
Representatives and a Senate.

Uruguay occupies an area of 72,210 square miles, or is about as large as
all of the New England States. It is virtually an extensive undulating
plain, having in its northern section a series of mountain ranges but
few of which are higher than 2000 feet. It is bounded on the east by the
Atlantic Ocean and on the north by Brazil, the Rio Cuareim flowing
between the two countries. The Uruguay, dividing Argentine and Uruguay,
forms its western boundary while the wide mouth of the Rio de la Plate
may be called its southern boundary line.

The climate is extremely temperate and healthful—so much so in fact that
it is rapidly developing into a summer resort for Chileans, Argentinians
and Brazilians; many of the wealthiest of these nationalities have
established seashore homes within its boundaries, especially outside of
Montevideo. Extreme summer heat such as one finds in Buenos Aires, is
never encountered here, although there are days in winter when it is
particularly cold. Snow occasionally falls.

Uruguay has a population of 1,500,000, its people being among the best
in Latin America. As in Argentine, the Indians are comparatively few and
to be found in remote districts only. There are practically no negroes
and mixed breeds. Owing to the influx of English, Italian, and Swiss
colonists, the standard of the population is continually rising and its
geographical position, salubrious climate and vast areas of tillable
land will attract more and more desirable settlers to its boundary.
Immigration is encouraged along the most modern and progressive lines.

Uruguay is fortunate in having many navigable rivers, the chief of which
are the Rio de la Plate and the Uruguay, giving a total of over 700
miles of water deep enough for ocean-going vessels. One river alone—the
Uruguay—has ten ports open for interoceanic trade, the cities on this
river being Carmelo, Neuva Palmira, Soriano, Fray Bentos, Neuva Berlin,
Casa Blanca, Pysandu, Neuva Pysandu, Salto and Santa Rosa. Mercedes is a
large city, on the Rio Negro, and is used as a port of call for
ocean-going vessels. There is also Lake Merim on the borders of Brazil
on which run small launches.

Uruguay has comparatively few railroad systems and only 1600 miles of
railways. There are many projects for railway development however and
the completion of the mileage planned will rapidly bring the country to
the fore. American capital is now being interested in this field.

While there are some minerals to be found in the mountainous sections,
still the country will always be a pastoral one. Mica, gold, precious
stones and petroleum are known to exist, yet comparatively little, if
anything, has been done along these lines.

Of her 45,000,000 acres of land, less than 5 per cent. is devoted to
agriculture, owing to lack of population. There are about 1,700,000
acres of virgin forest lands and over 40,000,000 acres devoted to
grazing cattle and sheep.

Wheat is the chief cereal grown, with corn, barley, oats and linseed in
the order named. Tobacco has been tried with favorable results.

The raising of cattle of all kinds and the maintenance of
slaughter-houses and packing establishments for the purpose of supplying
Europe with meat forms the largest industry. One plant alone at Fray
Bentos—owned by the Liebig Company and where the extract of that name is
made,—kills over 3,000,000 head a year. Very naturally meat by-products
are produced and exported in large quantities. Much frozen and tinned
meat is exported. Some idea of the enormous size of the cattle industry
here may be gained when we are told that at the present time Uruguay has
over 9,000,000 cattle, 30,000,000 sheep, 800,000 hogs, 600,000 goats and
430,000 horses.

One of the leading industries is the shearing of wool, all of which is
exported. The good climatic conditions, in connection with attention
paid to breeding, have resulted in the production of a wool of superior
length and texture and as a consequence wool-buyers from Europe are
attracted to this market. In 1913 the amount exported reached the
enormous sum of $35,875,975.

Despite the fact that Uruguay has no gold coin of its own, it is on a
gold basis and its _peso_, or dollar, is worth almost four cents more
than ours, or to be exact, $1.034. This is a decidedly unusual state of
affairs for Latin America, and reflects favorably on the financial
condition of the country.

There is much English capital invested here, and to a large extent trade
is in the hands of Englishmen. Many German and Italian houses are
represented and these nationalities are also becoming interested in
local enterprises.

Uruguay exports wool, hides, horn, hair, meats and meat products, grease
tallow, grain and cereals, the total amount expressed in figures for
1913 being $65,142,000.

In 1913 she imported goods to the value of $50,666,000, the leading
items being foodstuffs, iron, steel, glass, china, wooden products,
oils, chemicals, medicines, stationery, toilet articles, tobacco,
textiles, shoes, hats, and silks.

While commercial travellers are supposed to pay a yearly license of
$100, still this can be waived by making the proper connection with some
local dealer or commission house.

The following cities should be visited:

                                    _Population_
                        Montevideo       500,000
                        Pysandu           35,000
                        Mercedes          25,000
                        Salto             25,000
                        Fray Bentos       15,000
                        Rivera            10,000
                        Guadalupe         10,000
                        Minas             10,000
                        Florida           10,000
                        Colonia           10,000

Uruguay has from three to five steamships sailing weekly direct for
Europe, or the United States.

All vessels leaving either Europe or the United States and calling at
Buenos Aires touch at Montevideo the day before arriving at Buenos
Aires, as well as on the return trip. Two night lines of comfortable
steamers connect Buenos Aires and Montevideo, which are about 110 miles
apart. Ample transoceanic and coastwise freight service is also
provided.




                                   V
                                PARAGUAY


Due to the ambitions of one man—Carlos Antonio Lopez—a dictator of the
worst type, with Napoleonic designs, Paraguay, one of the finest of
South American countries, one with brilliant prospects and holding the
greatest opportunities, is to-day the most backward and has the smallest
population.

Paraguay was discovered by Sebastian Cabot in 1526. Following him came
Juan de Ayolas and Domingo Irala, who in 1536 founded the city of
Asuncion, now the capital of the republic. Up to 1810 it was a Spanish
colony, being latterly governed by the Viceroy from the home country who
resided in Buenos Aires. At that time it was called the Province of
Paraguay. It declared its independence from the mother country in 1811,
the Spanish Governor-General aiding in the movement. After trying
various forms of government it became a republic in 1844, which form of
government still exists, the executive power being vested in a President
and Vice-President, with a legislative body composed of a Senate and
Chamber of Deputies.

It is impossible in even briefly writing of this really wonderful
country to refrain from some reference to the one man, Lopez, whose
desire for power resulted in the almost total annihilation of a people.
His arbitrary rule embroiled his nation in disputes with much of Europe
and the United States, and resulted in a war with Uruguay, Brazil and
Argentine. In addition to this internal strife developed in which
assassins, murderers and executioners played their parts. When Lopez was
finally killed and his power gone, Paraguay’s population, according to
Dawson, the well-known historian, had decreased from a “1,300,000 to a
little over 200,000, only about 29,000 being men and 90,000 children
under fifteen years of age.” There were five women to one man. As a
result of this devastation the country never has revived. Recent
revolutions have set it back still further and whatever of good may come
to this benighted land must be written in the future tense.

Paraguay is almost an inland country, having but one outlet to the sea
in the Parana River. Its 196,000 square miles of territory is bounded on
the north by Brazil and Bolivia; on the west and south by Argentine, and
on the east by Argentine and Brazil. The Paraguay River runs directly
through its territory from south to north dividing it into two sections,
Western Paraguay, or the Chaco, and Eastern Paraguay. It is well watered
with many small streams, while toward the north and east are mountain
chains.

The climate of Paraguay is so equable that the country is sometimes
called the “Sanitarium.” The two seasons are the rainy and the dry. It
never snows in this land and flowers in great variety and a riot of
color bloom constantly. The southern two-thirds are in the Temperate
Zone, the northern one-third in the Tropic Zone.

The population is estimated at 800,000, over 100,000 of which are wild
Indians, the remainder being largely of mixed blood, negro
predominating. There have been some sporadic attempts to encourage
immigration, which have not resulted in any great movement in this
direction, owing to the instability of the government and the backward
condition of the people as well as to the general isolation of the
country.

Travel in Paraguay is most primitive. There are few roads and most of
the commerce is carried by bullock carts on almost impassable trails or
by pack train over narrow paths. But one railway, having a total length
of about 250 miles, ekes out a homeopathic existence, running from
Asuncion, the capital, to Ville Encarnacion. Many railways must be built
to open the country. One can go by rail from Asuncion to Buenos Aires in
two days, the trip requiring a ferry-age from Posadas to Ville
Encarnacion. The Trans-Paraguayan Railway now in course of construction
will do much to develop the country. Communication with the outside
world via Montevideo or Buenos Aires is maintained by river steamers,
requiring from five days to a week to make the trip to Asuncion, which
is about 1100 miles from the Argentine capital.

[Illustration:

  Interior of a gentlemen’s hat store, Asuncion, Paraguay
]

[Illustration:

  A country store in Colombia
]

From Asuncion it is possible to go into the interior or even to Brazil,
on light-draft steamers, the Guyara Falls, 1300 miles above the capital,
stopping navigation of the Parana River at this point.

The Paraguay River is navigable for vessels of twelve-foot draft to
Asuncion and for smaller vessels 700 miles farther.

Most of the commerce of Paraguay is carried in lighters drawn by tugs,
and these emissaries of trade are to be met on all the rivers and
waterways of this country.

There are several lakes, navigable for small craft, but of no importance
from a commercial standpoint.

While both the climate and the soil warrant one in stating that Paraguay
is susceptible of high agricultural development, little has been done in
this regard, outside of locally producing the few vegetables and fruits
required for home consumption. Sugar-cane, tobacco, tropical fruits and
cotton would thrive in this country. Each one of these staples has been
successfully raised, the cotton being something like our own famous Sea
Island brand.

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.

[Illustration:

  Valparaiso
]

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.

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.

[Illustration:

  _Copyright by Underwood & Underwood_

  Lake Titicaca at Puno, Peru, with native balsas in the foreground.
    Balsas, which are made of reeds lashed together, are used for
    carrying freight and passengers
]

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.

[Illustration:

  _Copyright by Underwood & Underwood_

  Oroya Line, Peru
]

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.

Cocoa is largely grown in Ecuador, the bean being of a high grade, rich
in color and fats. Strange to say, practically none of the chocolate of
commerce is made here, the crude dried bean only being exported. In 1912
$7,653,505 of this article alone was exported, chiefly to Europe,
despite the fact that we, as a nation, are the largest users of
chocolate.

Forty million one hundred and forty-three thousand four hundred and
fifty-two pounds of tagua or ivory nuts worth $936,511 were exported in
the same time, most of it going to Germany to be made into buttons; one
German village has fourteen factories elaborating this product into the
finished article of commerce.

Panama hats are made by individuals, collected by jobbers, and exported,
this trade in 1912 amounting to $1,372,051.

More than $1,000,000 worth of rubber was exported in 1913, and in the
same time coffee to the value of $783,787, most of which went to Chile.

The total exports in 1912 amounted to $13,717,884, as against
$10,652,843 imports, the leading articles being boots and shoes,
candles, ready made clothes, crockery, drugs, food stuffs (flour and
canned goods), hats, hardware, machinery, oils, paper, perfumes,
textiles, wines and liquors.

I cannot refrain from repeating that Ecuador, due to the prevalence of
disease, is passed over by most travelers and as a consequence there is
little competition, and one is sure of doing business here if his
product is appropriate.

A small license or fee is one of the legal requirements to sell goods in
this country, but is more honored in the breach than the observance.

These towns should be made:

                                   _Population_
                         Guayaquil       80,000
                         Quito           80,000
                         Cuenca          35,000
                         Riobamba        18,000

There is but one city in the Galapagos group of islands, namely
Floriana. They are unworthy of any attention from a commercial
standpoint.

Ecuador is reached most directly from Panama in about three days.
Travelers going to Peru or Panama from any of its ports are detained in
quarantine and have their baggage disinfected. This rule is strictly
observed. Freight should be sent via any line to Colon or Panama for
trans-shipment as there are but few direct boats. From San Francisco the
Kosmos Line of Hamburg formerly maintained a bi-monthly direct service
which may be resumed after the war. The West Coast Line from New York
has irregular sailings via the Strait of Magellan, carrying only
freight; the voyage takes about three months as the ships drop off cargo
en route.




                                   X
                                COLOMBIA


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The chief cities are:

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

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

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

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




                                   XI
                               VENEZUELA


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The following cities should be visited:

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

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

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

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

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




                                  XII
                            CENTRAL AMERICA


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

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

[Illustration: CENTRAL AMERICA]

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

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

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

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

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

British Honduras is ruled by a governor sent from England.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The exports and imports during 1913 were as follows:

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

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


                  IMPORTS TO CENTRAL AMERICA FOR 1913

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


                 EXPORTS FROM CENTRAL AMERICA FOR 1913

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

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

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

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

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

                        CENTRAL AMERICAN CURRENCY

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

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

The following cities should be visited:

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

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

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




                                  XIII
                                 MEXICO


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

[Illustration: MEXICO]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The following are the leading cities:

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

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




                                  XIV
                                  CUBA


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

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

[Illustration: CUBA, PORTO RICO and JAMAICA]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Banking houses in close association with American financial institutions
are numerous here and every modern facility in this connection is
afforded. American capital is largely invested in various enterprises;
England and Canada are also well represented here.

Commercial travellers pay no tax in Cuba, and samples are admitted duty
free.

Travel is convenient and comfortable and the hotels fairly good,
especially in the cities.

The following places should be visited:

                                     _Population_
                       Havana             350,000
                       Matanzas            75,000
                       Cienfuegos          75,000
                       Camaqüey            70,000
                       Manzanillo.         56,000
                       Santiago            55,000
                       Pinar del Rio       53,000
                       Santa Clara         48,000
                       Guantanamo          45,000
                       Trinidad            31,000
                       Cardenas            30,000
                       Guanabacoa          27,000

Cuba may be reached by rail or water routes, it now being possible owing
to an ocean ferry via Florida to land in Havana in the sleeper in which
one left New York.

There are 22 steamers a week from the leading ports of the United States
for Cuba, in addition to others regularly from Europe and Mexico. There
are weekly ships from New York, Boston, New Orleans, Mobile and
Galveston to Havana. There is also direct daily service between Tampa,
Florida and Havana.




                                   XV
                             SANTO DOMINGO


The Dominican Republic occupies the eastern and larger section of the
island known as Santo Domingo or Haiti.

This island was discovered by Columbus on his first voyage December 6,
1492. The peaceable aborigines whom he found on landing were so abused
under the Spanish rule, that by the year 1500 fully 90 per cent. had
died and the colonists turned to Africa for slaves to work their
estates, 4000 being brought here in 1517.

French, Dutch and English buccaneers made this island their rendezvous
owing to its favorable location. France recognized them as constituting
a state in 1630 and gave them the protection of the home government. In
1697 France secured control over the western half of the island, and in
1795 obtained by treaty the remaining portion.

In 1809 Spain and France were at war, and Spanish rule was again
established on the island. The Spanish-speaking section of this
territory declared its independence of Spain in 1821 and in 1822 the
Haitians acquired control of the entire island, governing it until 1844,
when as the result of a rebellion in 1846 Santo Domingo became
independent, remaining so until 1861 when again fearing conquest she
petitioned Spain to direct her destinies. Following a revolution in
1863, Spanish rule terminated in 1865, the country since being known as
the Dominican Republic. Uprisings and revolutions followed each other
and foreign debts accumulated to such an extent that European invasion
was threatened. In 1907 the United States undertook to administer the
affairs of the government through American officials, cancelling each
year from the revenues of the country a portion of its foreign debt,
using another portion for internal national improvements.

The present constitution provides for a President as an executive and a
Senate and Chamber of Deputies for legislative purposes.

The island of Santo Domingo, or Haiti, is about 400 miles long and 160
wide, its shores possessing numerous deep-water bays and inlets. Four
almost parallel mountain-ranges exist within its boundaries, one peak,
Mt. Tina, being 10,300 feet in altitude. These mountains form an
excellent watershed, resulting in many creeks and streams, but few
navigable and those only for very light draft boats.

Along the coast and in the lowlands, the heat is extreme, Haiti being
much warmer than Santo Domingo. The high lands of the interior and the
plateaus between the mountains are pleasant and healthful. Continuous
sea breezes add materially to the comfort of the inhabitants.

The Dominican Republic has an area of 19,325 square miles and a
population of 673,611, mostly blacks or mulattoes. There is a small
white foreign population, numbering perhaps 10,000.

There are 160 miles of railway, partially under government ownership,
and 250 miles of railway privately owned and used in connection with the
larger sugar estates.

There exist exceptional opportunities for cattle and goat raising.
Lumbering of hard, dye and cabinet woods could be profitably developed.
Gold is washed from the rivers in small quantities and some copper, iron
and silver are found.

Cane is extensively grown throughout the island, the amount exported in
1912 being $5,841,357. Cocoa is largely raised, the crop last year
yielding $4,248,724. Tobacco, coffee, beeswax, honey, bananas,
lignum-vitae, dye woods, mahogany, gums, resins, hides and copra form
the other leading items of its exports which in 1913 amounted to
$12,385,248.

In the same period her imports were $8,217,898, consisting of cotton
goods valued at $2,000,000, iron and steel, $1,400,000, meat and butter
$660,000, flour $450,000, drugs $225,000, paper $125,000, and soap
$100,000. Last year this country used 16,221,141 pounds of rice, 94.5
per cent. of which came from Germany, a land that does not grow a pound
of this cereal.

The United States takes considerably more than 50 per cent. of this
country’s exports, and ships it about 70 per cent. of its requirements,
Germany ranking next, followed by England and France.

Santo Domingo has no currency of its own, but uses American money. An
American bank in Santo Domingo City exists, being the only financial
institution in the country, and affords every facility in monetary
matters. Credits are fairly good and detailed information will be
supplied by the bank.

Travelers pay no tax and samples are admitted duty free.

The chief cities are:

                                        _Population_
                   Santo Domingo              30,000
                   Santiago                   15,000
                   Puerto Plata               10,000
                   San Pedro de Macoris        7,000
                   Sanchez                     5,000

The Clyde S. S. Company (American) maintains a semi-monthly service from
New York touching all the ports of the Republic. There are many European
lines calling at the various ports also.




                                  XVI
                                 HAITI


Much of the history of Haiti is associated with its neighbor, Santo
Domingo, and need not be again told. After the French had established
their government in this island they imported negroes from Africa as
slaves. These revolted in 1791 and in 1801 declared their independence,
finally expelling the French in 1804. This land has been the scene of
much bloodshed and lacks stability in its government, as it always will
until taken under the control of some strong power.

Its geography and climatic conditions are the same as those of Santo
Domingo, its area of 10,200 square miles supporting a population
estimated at 2,000,000, French or a “patois” being the language spoken.
Perhaps 95 per cent. of its inhabitants are negroes, or have negro
blood. The country is backward. But few attempts have been made to
modernize it and it is to-day one of the most hopeless nations of this
hemisphere. About 75 miles of railways are in operation. No navigable
streams exist. There are no roads, travel in the interior being over
trails. The natives are ignorant, uneducated and in some portions of the
land are supposed to practice cannibalism. There are two seasons—a rainy
and a dry—the rainy lasting from April to November.

Haiti’s chief products are coffee, 40,000 tons of which were exported
last year, cocoa, dye woods and cabinet woods, medicinal gums, rubber,
castor oil bean and bark for tanning. Her exports of $17,300,000 for
1913 were divided as follows:

                       France         $8,500,000
                       Germany         6,400,000
                       United Kingdom  1,300,000
                       United States   1,100,000

while her imports for the same period amounted to $8,700,000, credited
to the following nations:

                       United States  $6,500,000
                       France            800,000
                       United Kingdom    630,000
                       Germany           530,000
                       Others            240,000

Her requirements are for flour, rice, foodstuffs, candles, oil, cotton
goods, shoes, hats, and tools.

The country is retrograding and there is no inducement to capital to
revive its exhausted financial condition.

The monetary system is in a hopeless tangle, and is on an inconvertible
paper basis, a _gourde_ the unit of value, fluctuating from 20 to 24
cents, U. S. Gold. There has been some talk of placing its finances on a
gold basis, but this is visionary. There is one bank—Banque Nationale de
la Republique d’Haiti, financed by American money, but it has been
closed by the government. No one can authoritatively state with
certainty as to the outcome in consequence of this condition of affairs.
Credits should be closely watched. Owing to the heavy national debt and
the inability of the government to administer its affairs, it is quite
possible that the United States will sooner or later be forced to play
the rôle it is at present doing in Santo Domingo.

There is a tax for travellers but by arrangement with some of the petty
municipal authorities the full sum need not be paid. Samples are
supposed to be free.

Haiti may be reached from New York via the Clyde Line (American) which
disembarks its passengers in Santo Domingo. Tramp steamers or coasting
vessels may there be taken to Haitian ports, or one may go directly by
the Royal Dutch West India Mail line sailing twice a month from New
York.

The principal cities of Haiti are:

                                       _Population_
                     Port au Prince          65,000
                     Jeremie                 35,000
                     Cape Haitien            30,000
                     Aux Cayes               25,000
                     Mole St. Nicholas       12,000




                                  XVII
                               PORTO RICO


Porto Rico was discovered by Columbus in 1493, and colonized by Ponce de
Leon in 1509. Because the greater percentage of the population of the
island speak Spanish and have the traits, desires and inclinations of
that race, it may be briefly considered despite the fact that it has
been an American possession since 1898. Within another 25 years
practically all of its 1,120,000 inhabitants will be able to speak or
understand English, which is now taught in all the schools, education
being compulsory. A large portion of the population are negroes and
mulattoes. There are also many Americans and Europeans.

The island is 100 miles long and 35 wide, containing 2,300,000 acres of
which but 24 per cent. is under cultivation. It is extremely mountainous
toward the interior, one peak reaching a height of 3700 feet, the
lowland on which sugar is cultivated being along the coast. The climate
is warm but equable and comfortable, the trade winds moderating any
tendency toward excessive heat. Porto Rico is a land of continual
summer, and maintains its extreme verdure owing to its rainfall which
has an annual average of 77.30 inches.

Porto Rico has about 500 miles of steam railways, and nearly 1000 miles
of excellent roads. There are no navigable rivers, but many good
harbors.

Its government is under the control of the Insular Board of the United
States War Department, a governor being appointed by the President of
the United States. The Governor has as Council, six resident American
officials, and six natives, who with a House of Delegates of 35 members,
constitute the Legislative Assembly, the veto power being held by the
Executive; legislation is subject to the final revision of the Congress
of the United States. A Resident Commissioner to the United States
having a seat in Congress is elected by the people every two years.

Since the yoke of Spain was cast off the island has progressed
wonderfully under American management. In 1904 its exports amounted to
$16,250,000 and had grown to the enormous sum of $43,000,000 in 1914,
while its imports in 1904 were $13,000,000; they had increased in 10
years to $35,500,000. Its development and prosperity have been steadily
upward. Owing to the fact that it has free trade with the United States,
we do most of its business, last year taking $34,400,000 of its exports
and sending it $31,750,000 of its imports.

Its chief exports are:

 Sugar (400,000 tons)                                      $28,000,000
 Tobacco (170,000,000 cigars, 12,000,000 packs cigarettes)   5,000,000
 Coffee (20,000 tons)                                        7,000,000
 Fruits  (oranges, pineapples, grape-fruit, cocoanuts)       3,000,000

Porto Rico is essentially an agricultural country and will remain so.
Cattle can be raised. There are no mineral resources.

Its requirements are for foodstuffs, flour, meats, tools, fertilizer,
oil, machinery, cement, structural iron, vegetables, dried fruits, and
fish, cotton goods, shoes, wines and liquors, confectionery, butter, and
toilet articles.

United States money is used exclusively, as are also our systems of
weights and measures. Direct banking is done with the United States
through nine banks in the island.

English is the official tongue, Spanish the popular language.

There are no travelers’ taxes and samples pay no duty.

The following cities are the most important:

                         _Cities_  _Population_
                         San Juan        50,000
                         Ponce           35,000
                         Mayaguez        17,000
                         Caguas          11,000
                         Arecibo         10,000
                         Fajardo          9,000
                         Yauco            8,500
                         Guayama          8,500
                         Humacao          7,000
                         Aguadilla        6,000
                         Cayey            5,000
                         Coamo            4,000

Thirteen lines of vessels connect this island with the United States,
four going direct to New York and providing a semi-weekly mail service.
There are also ships to Europe as well as the nearby islands.




                                 XVIII
                 THE GUIANAS: BRITISH, DUTCH AND FRENCH


Most travelers ignore British, Dutch and French Guiana, assuming that
climatic conditions are unfavorable and the small size of the population
means no demand for goods. The fact is that they are not unhealthful,
that their credit is good, their merchants reliable, their purchasing
power in proportion to their inhabitants is excellent and especially the
Dutch and British colonies are friendly to us and what we produce. They
are well worth a visit, and spend annually in the United States jointly
about $3,000,000. Furthermore, they are easily accessible from either
Trinidad or Barbados.

British Guiana is by far the largest and most prosperous. This entire
tract was at one time in the possession of Spain and was under its
control until 1624. The Dutch in 1648, after the close of their war with
Spain, and through one of their mercantile companies, obtained a trading
port in what afterwards became known as Dutch Guiana. Following their
move, the English under Sir Walter Raleigh, acquired their present
possession, establishing a town now known as Surinam, the English
afterwards giving a portion of this territory to the Dutch in exchange
for their holdings in North America. About the same time the French
established a colony at Cayenne, and later on came near being embroiled
in a war with Brazil over the boundary line, which was finally amicably
adjusted.

These three European colonies, the only ones by the way, in South
America, British Guiana being the most westerly, French Guiana the
eastern and Dutch Guiana between the others, have for their northern
boundary the Atlantic Ocean. Venezuela is the western neighbor of
British Guiana. Brazil touches each of these colonies as their southern
border, also forming the western boundary of French Guiana.

The topography of all of these possessions is similar. Toward the
interior are mountains whose watershed forms many small rivers and
creeks flowing toward the Atlantic. Between the mountains and the ocean
are broad fields or savannahs, millions of acres in extent, which
gradually terminate in the low lands near the sea. In the highlands and
toward the mountains of the interior the climate is spring-like, but it
is always very warm along the coast, the temperature being about 80°
Fahrenheit, the entire year. There is much rainfall—100 inches being the
annual average.

British Guiana covers an area of 90,277 square miles, with a population
of about 300,000, composed of about 160,000 coolies, imported by
contract from India and under the supervision of the British government,
the remainder being white, black and mixed breeds. The native Indians
have never been counted owing to the inaccessible location of their
settlements. The East Indians were brought for the purpose of working
sugar plantations, labor being very scarce. There are also about 5000
Chinese.

Georgetown with 55,000 inhabitants is the capital, the other settlements
being Essequibo and Berbice.

The exports which represent the country’s products were in 1913:

                          Sugar    $5,250,000
                          Rum       1,000,000
                          Gold      1,400,000
                          Balata      800,000
                          Rice        500,000
                          Diamonds     80,000

Of this the United Kingdom took goods worth $9,300,000 and the United
States but $125,000.

During the same period, the imports amounted to $7,750,000, England and
her colonies supplying $5,545,000 and the United States $1,800,000.

This colony has about 100 miles of railway, its many rivers and creeks
sufficing for its interior transportation.

No traveler’s license is required.

Banking is done through Canada and London; banks in these places having
branches in Georgetown and selling exchange on New York. English or
American money is used.

Sugar is the great crop here and rum, a byproduct from the sugar cane,
the next largest. Cattle might be raised extensively. The forests are
rich in cabinet woods. Cocoa, rice, bananas, rubber and cocoanuts could
be more extensively grown. There are some gold and a few diamond mines
in operation. This colony could be much more highly developed.

The business is almost entirely in the hands of the British, England
selling about 65 per cent. of its requirements and the United States 25
per cent.

They import bags and sacks, boots and shoes, flour, corn meal, coal,
drugs and medicines, vegetables, hardware, machinery, clothes, textiles,
oils, wines and liquors, tobacco, cigars and cigarettes.

Georgetown is the only town to visit, and is best reached by either one
of the several steamers sailing from Trinidad or Barbados.

Dutch Guiana, sometimes called Surinam, is 46,060 square miles in area,
with a population of 87,500, mostly Indians, negroes and Javanese, who
are brought out to work the canefields. The proportion of white is small
and they are mostly merchants and government employes.

This country is susceptible of agricultural development, its products
and requirements being the same as British Guiana. Paramaribo, with
40,000 inhabitants, is the capital and only town that will repay a
visit. This colony is not very progressive, and its trade is decreasing.
In 1912 its exports were $3,500,000, mostly sugar, with some cocoa,
coffee, balata, gold, bananas and rum, of which Holland took $1,500,000
worth and the United States $900,000.

It imported goods to the value of $3,000,000, Holland supplying
$1,700,000 and the United States $700,000.

There are opportunities here but for some reason the colony has been
neglected, the capital, Paramaribo, having no modern conveniences, not
even a water supply, although it is ideally located for sewerage and
aqueducts.

Dutch money is in use, although American and English is accepted.
Merchants maintain accounts in New York or Europe for their
requirements. Credits are good. English is spoken by all business men.

The Royal Dutch West Indies Mail direct from New York has two sailings a
month for this colony. It is also accessible from Trinidad, Curaçao, and
Barbados.

French Guiana has 49,000 square miles of territory, with a population of
about 13,500, some 8,500 of which are convicts, as this is a penal
settlement. Capt. Dreyfus was confined here on Devil’s Island. This is
the least developed and less promising of these colonies. There is
little agriculture and less cattle raising. Whatever trade there is is
controlled by France.

In 1912 the exports were:

                       Gold           $2,000,000
                       Phosphate          55,000
                       Balata             20,000
                       Rosewood oil       46,000
                       Rosewood           19,000
                       Cocoa and hide  2,400,000

Most of this was shipped direct to the mother country.

Of the imports of $2,000,000, 70 per cent. came from France, our share
being $300,000. It is doubtful if our trade here could be materially
increased. Cayenne is the only town to visit, and may be best reached
from Trinidad or from the French possession of Martinique or Guadaloupe.
French money is in use and while dealers give drafts on Paris or London,
most of them having business with New York, do so through some branch of
the Credit Lyonnais.

No traveler’s fee is required. French is spoken.

All of these possessions are ruled by officials sent from the motherland
for a term of years.




                                  XIX
                EUROPEAN POSSESSIONS IN THE WEST INDIES


Four European countries, England, France, Holland and Denmark, have
possessions in the West Indies. They are readily accessible, cleanly,
attractive, hospitable, and will repay a visit both for business and for
pleasure. All of them are dependent on the outside world for their
staples and food supplies, and to-day are receiving great attention at
the hands of the Canadian merchant, who has in many instances supplanted
us, especially in such necessities as flour, dried fish, butter,
potatoes, onions, cheese and fruits. Their trade is well worth catering
to, and much of it can be diverted into American channels. With the
exception of Martinique and Guadeloupe, English is spoken universally,
even in the Dutch and Danish islands.

The Dutch colony of Curaçao consists of the island of that name, and the
adjacent islands of Bonaire, Aruba, St. Eustache, Saba and the southern
part of St. Martin, the northern portion belonging to France. These
islands are small and situated about 60 miles off the coast of Venezuela
to the north, having a total area of 403 square miles, Curaçao being the
largest, and about 30 miles long with an area of 210 square miles. They
are mostly all of coral formation and cannot raise enough food for the
sustenance of their 50,000 inhabitants, 30,000 of whom reside in
Curaçao.

Wilhelmstadt with 25,000 is the capital and the residence of the Dutch
Governor. It is well equipped for coaling and provisioning ships, being
a free port, and as it is in the beaten path of travel from Europe to
the Panama Canal its future seems bright.

The inhabitants of these islands are poor whites who have intermarried
and a few blacks. Curaçao, however, is the home of many wealthy Jews,
whose forefathers were banished from Portugal, these islands having
formerly belonged to that country. They are all merchants or traders,
owning coasting vessels that ply along the Latin American shores and the
other islands. Their credit is good and they are thoroughly up-to-date
in their business methods.

While Dutch money is used, American, English, French, German and other
currency is received at the current rate of exchange. There are no
government banks, but each merchant has credits in the United States or
Europe and buys and sells exchange against it.

The total exports of these islands are less than $1,000,000 yearly,
$300,000 representing coal brought from the United States and resold to
steamers. Many straw hats made from fibre imported from Venezuela and
Colombia are exported, the yearly production being about $350,000. Aloes
to the extent of $70,000 and dividivi, a dye wood, to the value of
$25,000, with hides, skins, and a native lace are the chief exports.
Aruba ships some phosphate rock and has one small gold mine in
operation. Much smuggling is done into Latin America.

This group imports about $2,000,000, $500,000 coming from the United
States, $250,000 from Holland and the remainder from the leading
European nations. They require flour, rice, beans, onions, garlic,
corn-meal, condensed milk, medicines, oil, candles, tinned foods, soups,
hams, cottons, shoes and hardware.

No duty or fees for travelers are charged.

The “Red D” (American) Steamship Line has a ship a week from New York to
Curaçao, and the other islands can be reached by coasting boats from
this port.

The Danish West Indies consist of three small islands in the Caribbean
sea, St. Thomas, St. Croix and St. John, their total area being 138
square miles, with a population of about 25,000, mostly negroes, a few
mulattoes and some European officials. St. Thomas, the largest in the
group and about 26 miles from Fajardo, Porto Rico, is used as a coaling
station for Hamburg-American ships in the Latin American trade. Its
imports of $1,000,000 in 1913 are chiefly accounted for by one item—coal
from the United States amounting to $550,000. Much bay rum is distilled
here. The Panama Canal may revive the trade of this island, owing to its
location in the lane of steamship travel.

St. Croix, with 14,000 people in its 81 square miles of area, raises
sugar and cotton. They also make considerable rum.

The United States in 1913 exported $600,000 of St. Thomas’s $1,000,000
imports and $550,000 of St. Croix’s $800,000 worth of imports.

No fees are charged in these islands for commercial travelers.

American money is used here as much as Danish. There are no banks,
merchants maintaining credits in New York or European markets from the
sale of their exports and drawing against them. English is spoken
universally.

The Quebec Steamship Company sailing from New York connects with St.
Thomas; the other islands being reached by coasting vessels from this
point. There are many opportunities from San Juan, Porto Rico, to get to
St. Thomas.

These people buy from us coal, food stuffs, flour, dried fish, candles,
oil, rice, onions, beans, shoes, clothing, boots, medicines, soaps and
other staples.

The French islands in the Caribbean Sea are Martinique and Guadeloupe,
and they import their requirements from the mother country, owing to the
fact that such goods pay no duties. The town of St. Pierre, Martinique,
with its entire population of 70,000 inhabitants was totally destroyed
by an eruption from the extinct volcanoe of Mt. Pelee, May 8, 1902.
Josephine, the first wife of the Great Napoleon, was born at Fort de
France, Martinique.

We sell these colonies some food stuffs, oils and necessities, our
yearly sales to Martinique being about $700,000 and to Guadeloupe about
$900,000.

Martinique raises sugar and manufactures rum, her sugar production being
about $3,000,000 yearly, and her rum export equalling $2,000,000
annually. Guadeloupe exports about $3,000,000 yearly, mostly cocoa, bay
leaves, and vanilla beans.

The natives all speak French, and are mostly negroes and half-breeds,
with the usual admixture of French officials and soldiers. Guadeloupe
has about 1200 square miles and a population of 160,000, while
Martinique possesses an area of 380 square miles with about 200,000
inhabitants.

The smaller islands of Marie Galante, St. Barts and half of St. Martins
also belong to France and get their supplies from either Martinique or
Guadeloupe.

The Quebec Steamship Company maintains a direct service between New York
and these islands, connections for the smaller ports being made by
coasting vessels. France also has a line of ships from Europe direct.

The British West Indies are made up of the following islands:

Trinidad and Tobago, Jamaica and Turks Island, with Caicos Islands and
Caymans; Barbados; the Leeward Islands, consisting of Antigua, St.
Kitts, Barbuda, Redonda, Virgin Islands, Nevis, Anguilla, Montserrat and
Dominica; the Windward Islands comprising Granada, Grenadines, St.
Vincent, and St. Lucia; the Bahamas and Bermuda.

Of these islands the population perhaps numbers 1,500,000, mostly
blacks, and mulattoes, with a small percentage of white officials and
merchants. The larger islands of Jamaica with 900,000 people, Barbados
with 200,000 and Trinidad with 300,000 are the only ones worth visiting
for business purposes, as merchants in these places have trading
connections with residents of the smaller localities. Kingston in
Jamaica, Georgetown in Barbados, and Port of Spain in Trinidad are the
only large cities, and have good hotels and prosperous business houses.

English is spoken exclusively everywhere and American money accepted at
its face value as readily as English currency in all these possessions.
The larger islands have branches of Canadian and English banks with
direct connection in New York. Credits are good.

In 1913 the exports were as follows:

              Trinidad and Tobago              $26,000,000
              Jamaica and her outlying islands  11,000,000
              Barbados                           5,000,000
              Leeward Islands                    2,800,000
              Windward Islands                   2,900,000
              Bahamas                            1,300,000
                                               ———————————
                                               $49,000,000

Trinidad, (with Tobago, twenty miles distant), 1754 square miles in
area, is perhaps the most important. Of the $26,000,000 it should be
noted that $11,000,000 was for coal, trans-shipped and not produced in
the country, thereby reducing her actual productive power in money to
$15,000,000. Her chief exports were as follows:

                          Cocoa     $7,000,000
                          Sugar      2,000,000
                          Asphalt    1,300,000
                          Petroleum    400,000
                          Cocoanuts    500,000

in addition to copra, rum and molasses. Of these exports the United
States took $7,000,000, France $2,500,000, England $2,400,000, Canada
$875,000, and Germany $675,000.

Her imports in 1913 were $13,750,000, England supplying $4,500,000; the
United States $4,000,000, Canada, $1,250,000, France $300,000 and
Germany $200,000.

Both England and Canada are favored by a preferential tariff.

Jamaica covers an area of 4424 square miles. Its exports in 1913 were
$11,000,000 as against $14,000,000 in imports. Her chief exports are:

                          Bananas   $5,000,000
                          Logwood      850,000
                          Coffee       750,000
                          Cocoanuts    650,000
                          Rum          500,000
                          Sugar        260,000
                          Ginger       180,000
                          Tobacco      180,000

Of these the United States took $6,200,000, Great Britain $2,000,000,
France $750,000, Canada $425,000 and Germany $425,000.

Jamaica’s chief export is bananas, almost all of which are taken by the
United States, who in return sells her 50 per cent. of her imports,
England, Canada and Germany following in the order named with
$5,300,000, $1,300,000, and $340,000 respectively to their credit.

Jamaica has no preferential tariff with the United Kingdom and will not
have so long as the United States continues to be her best customer.

Barbados’ area of 166 square miles is the most densely populated piece
of land in the world, with 200,000 inhabitants. It imported $6,500,000
worth of goods in 1913 and exported $2,600,000. It is a great coaling
station for ocean vessels, its trade in this line alone amounting to
$2,400,000 last year.

The United States took $330,000 of its production in 1913 and sold it
goods to the extent of $1,850,000. England controls most of its trade.
Its chief articles of export are sugar, rum and molasses.

The following table shows the imports and exports of the chief of the
remaining islands:

                     _Islands_      _Imports_  _Exports_
                St. Kitts and Nevis $1,250,000 $ 950,000
                Antigua                830,000   850,000
                Dominica               720,000   735,000
                Montserrat             150,000   180,000
                Granada              1,350,000 1,800,000
                St Lucia             1,500,000   550,000
                St. Vincent            600,000   550,000

All of these islands have a preferential duty treaty with Canada and
Great Britain, despite which our own sales with them in 1913 were about
$2,000,000.

Sugar and rum are their chief products. Dominica and Montserrat export
limes, lime juice and citrate of lime. Granada and St. Lucia export
cocoa, and St. Vincent’s chief product is arrow-root. Last year St.
Lucia supplied 135,000 tons of coal to vessels, most of which came from
the United States.

The Bahama group, of which Nassau with 13,000 population is the capital,
exported last year goods valued at $1,300,000, of which amount $850,000
was in sponges and $350,000 in sisal, the United States taking $620,000
worth. The imports in the same period were $2,000,000, of which we
supplied $1,400,000.

Bermuda, 20 miles square with 3,000 inhabitants, depends for its
existence upon the tourists who visit it and what we purchase from and
ship to its shores. Its chief exports are Easter lilies, potatoes and
early vegetables, 4,000 out of 12,000 acres being under cultivation,
yielding the islands $500,000 yearly. Of its $2,775,000 imports this
country supplied $1,600,000, England $750,000 and Canada $350,000.

None of these islands is self-sustaining. They need the necessities of
life; flour, foodstuffs, hams, meats, vegetables, butter, lard, candles,
oil, shoes, cotton, textiles, drugs, soaps, toilet articles, glassware,
machinery and corrugated iron.

The Quebec Steamship Company and the Royal Mail Steamship Company,
sailing from New York, stop at the leading cities of the larger islands,
an inter-island steamship service being provided for. The Lamport and
Holt line touches both at Trinidad and Barbados on their northward trip
and the United Fruit Company boats stop at Jamaica. The Hamburg-American
Line ships call at many of these islands.




                                   XX
         FOREIGN TRADE WITH LATIN AMERICA AND HOW IT DEVELOPED


No military campaign was ever planned with such exactness of detail and
precision as that which characterized the preliminary movements of the
exporting nations of Europe to acquire control of Latin American
markets. When the Franco-Prussian war was over and the Powers of the Old
World had settled down to a development of their resources, it soon
became apparent that foreign fields must be sought in which to dispose
of the excess products of their industry. With that object in view
governments, trade associations, manufacturers, shippers, exporters,
civic and social societies, colleges, merchants, and individuals united
in one harmonious movement to accomplish this purpose. While each nation
followed more or less the same general plan, still Germany attacked the
problem with the thoroughness so typical of its people that its course
in this direction may be taken as an example of what should be done in
similar contingencies, and it may be well worth mentioning in detail.

To impress the Latin American people that their trade was courted by the
nation as well as the individual producer, government commissions were
dispatched from Europe to each of these countries, when possible in a
war vessel of the nation sending them. With much pomp and great ceremony
visits were exchanged between the members of this body and the
authorities ashore and every effort made to develop a national feeling
of regard between both parties, very much the same as we did when
Commodore Perry opened up Japan to the world. Much time was spent in
each country and nothing was overlooked that might be of any aid to
accomplish the object in view.

Following these emissaries from the European Power came officials of
trade bodies and business organizations, college professors and writers,
each one studying the situation from his particular point of view and
noting the things most required and the methods under which business was
conducted. One of the subjects given the most complete and far reaching
attention was the question of banking relations and how to best develop
this important field, for it was early seen that this would form the
most essential link in the perfected chain of business success. In the
meantime the home government had caused to be printed throughout its
territory, full and specific facts regarding the countries, the nature
of their soils, everything obtainable about the flora and fauna, their
mountains and minerals, the various waterways, climatic conditions and
what crops could be grown with profit, with complete data concerning
business opportunities. Commercial schools were opened wherein the
student was taught Spanish and Portuguese, and perfectly drilled in
Latin American business methods and etiquette. Realizing that much of
their future success in these lands would be dependent upon having
colonies throughout them, every effort was made to encourage emigration,
the official authorities knowing full well that affection for the
Fatherland and a belief in the superiority of its products, would
materially help in the dissemination of its goods and keep up a demand
for home made articles, until they had through their own merit obtained
a foothold among the natives. As a direct result of this plan of
colonization, fully one-fourth of the population of Chile are either
German or of German descent, and the southern section of this country
reminds one more of a portion of Germany in its type of building, the
characteristics of the inhabitants, their dress, the nature of their
business and their modes of living than of a Latin nation. The same is
also true in the southern part of Brazil, where the Germans have many
colonies, each provided with public schools in which natives are really
taught German before acquiring their mother tongue.

The real ambassador of commerce—the traveling man—courteous, polite,
affable, familiar with trade customs, national mannerisms, and speaking
both Spanish and Portuguese perfectly was on the scene early, paying
particular attention to the demands of the merchant. If a certain style
of cloth was too wide, the obliging German made it of the dimensions
required. If the color was too subdued for the aboriginal customer of
the native merchant, the pattern and pigment were changed to suit the
buyer. If plows were required with one handle instead of two, so that
the farmer could have the other free for manipulating his cigarette, his
wish was cheerfully complied with. The idea that filled the mind of the
salesmen from Europe was to give the customer just what he wanted, and
this rule was never deviated from. No attempt was made to force the
storekeeper to adopt the customs of Europe in anything, but stress was
laid on the fact that their only object was to oblige in every way the
buyer, and cater to his demands. The suggestion from the storekeeper
that he got six months’ time from England’s manufacturers, on this line
of goods, was combated with the unanswerable argument that the seller
would be pleased to bill the order at eight months if desired.

Samples of native-made articles that sold well were also purchased by
the wide-awake representatives and sent home with full and complete data
as to price, cost of manufacture, quantities consumed, and any other
useful hint that practical observation might suggest, so that those in
Germany might have an opportunity to experiment with a view to reducing
the cost of the article and thereby obtain commercial control of this
particular line. In a word, no stone was left unturned to accomplish the
object always in view, namely—the complete capture of these markets.

As orders began to come in and were ready for exportation Germany
suddenly realized that she was confronted with a problem which she had
not seriously considered before—that of a national merchant marine.
Without ships this vast business, now practically acquired, was at the
mercy of the foreigner who had vessels in which to convey it to the
markets across the seas. With the exorbitant freight rates which were
beginning to be charged, as cargoes multiplied and ships became scarce,
it became obvious that all this newly secured trade would be seriously
jeopardized, if not completely lost, unless the entire situation was
under the absolute control of the Government and in the hands of the
German people. Accordingly the State took up the question, and to make a
long story short, the result was the development of the enormous German
merchant marine,—perhaps the most complete and perfect in the world—with
subsidies from the national treasury, which enabled ship owners to quote
a freight rate per ton so low, that it was cheaper to ship German made
goods from Hamburg to Valparaiso, than from Hamburg to many of the
interior cities of the Fatherland for home consumption. This last stroke
of generalship in this business campaign for commercial supremacy gave
Germany the greatest impetus toward reaching the goal upon which her
eyes were fixed, and as a result her export trade as well as her import
trade, increased by leaps and bounds, making her the envy of all Europe,
a condition which in the opinion of many people undoubtedly had much to
do with precipitating the European War.

This briefly is the story of how Germany secured control of not only
Latin American trade, but much of the over seas business of the world.
In the republics to the south of us the national effect of this
commercial invasion is very noticeable. Natives were invited to visit
and get acquainted with Germans in Germany, and when they accepted were
the recipients of such courteous treatment and became so thoroughly
impressed with the perfection of the German nation in every field of
enterprise, that they returned enthusiasts on the subject. One of the
results of this is seen to-day in the armies of Colombia, Mexico, Chile,
Argentine, Venezuela and some of the Central American countries. They
have all been instructed by German officers, imported for the special
purpose and kindly loaned by the German military authorities—a fact
worthy of serious thought when we think that some day Germany may turn
covetous eyes upon some parts of Latin America. To see some of these
troops march past with their peculiar knapsack, their goose-step and the
_pickelhaub_ helmet, makes one feel that one is in Germany for the time
being, anyway. Throughout the length and breadth of Central and South
America are to be found German delicatessen shops and hotels; German
stores and breweries; German banks and steamship lines; German salesmen
and German schools, each one dependent on the Fatherland for supplies,
and in turn playing an effective part and contributing a strenuous share
toward forcing Germany to the front in every way.

In developing local markets their methods were equally unique and
practical. I recall for instance the first brewery started in Venezuela.
Venezuelans knew of beer in much the same way that we of the States know
of _mate_, the herb used so extensively in the Argentine, Uruguay and
Paraguay, for making a beverage—that is they had read about it and heard
people refer to it, but few really knew what it looked like or how it
tasted. All were naturally more or less suspicious of it. Nothing
daunted the phlegmatic Teutons who had invested their money in the
erection of the plant in pursuing their stolid, predetermined plan of
introducing beer as a national beverage in lieu of the light clarets and
other wines, formerly so much in use in these countries. A building on
the most prominent corner of the city of Caracas was leased and in it
chairs and tables were arranged as in German beer halls, while adjacent
to the bar at which the beer was served direct from the barrel, was a
lunch stand which provided excellent delicatessen food. When everything
was ready, invitations were sent broadcast to the better class families
to come and accept the hospitality of the brewing company without cost
for the purpose of becoming better acquainted with the health and
strength-giving properties of real German beer. Physicians were
“sampled” in detail and told when to prescribe and what to expect from
this wonderful beverage in certain diseases and especially during
convalescence. Within a few months’ time the saloon became a rendezvous
of the elite. Ultimately beer supplanted all other alcoholic drinks in
this particular city. The same plan was carried out in other towns and I
am certain that Latin America to-day can boast of more breweries, per
capita, than Germany. Other local trade problems were attacked and
solved in the same sensible, simple and practical manner, the result
always being that German products grew in favor and in demand.

England, France and Italy of course developed their business in these
lands along much the same lines, but none of these nations showed the
deliberately planned aggressiveness and solidarity of purpose, or the
determined unity of spirit that animated the German. England did more to
establish her connections throughout Latin America along the path of
extensive investments in national and local securities, the building of
railroads, the dredging of harbors and erection of docks, while France,
relying upon the admitted and acknowledged fact that all the civilized
world looked to her for its fashions, styles, millinery, articles of
clothing and dress, toilet goods, and luxuries, very naturally took
advantage of existing conditions and used this as a foundation on which
to erect her trade. Whatever commercial prestige either Spain or
Portugal acquired in these countries was due almost entirely to the
presence of thousands of citizens of these nations, who created a demand
for articles of home production, and this is relatively small.

In this simple but thorough manner was the trail to business success in
this field blazed. The experiences of our predecessors, and the lessons
they learned should stand us in good stead in our efforts and help to
direct our feet from all possible pitfalls. In fact we should, by
following and improving on their attempts, if this be possible, acquire
a commercial supremacy in this territory in less than half the time
taken by the Europeans.




                                  XXI
                       METHODS OF DOING BUSINESS


The question of what method to employ in developing a business in Latin
America depends primarily upon your capital and the nature of your
product. Obviously we manufacture numerous things that these countries
cannot use. Many of our manufacturers seem to be totally unaware of the
goods suitable for these markets or their peculiar requirements. I have
met a man in Brazil selling, or rather trying to sell, snow plows. It is
quite apparent that no amount of exploitation or argument could possibly
produce results with such a commodity. With the exception of a few of
the more southerly cities of South America, and some located in the
highest mountains it would be useless to send a representative to these
fields for the purpose of introducing a heating system, no matter what
virtue it might have. I know of an American canoe manufacturing concern
advertising its wares in a portion of the Argentine which is absolutely
dry and without navigable water, as a result of which imported bull
frogs die of old age without ever having a swim. It therefore behooves
one to make a full and exhaustive investigation through all possible
sources of information, and ascertain if one’s goods are really
appropriate for these lands. Another point worthy of consideration is
that wares especially adapted to the uses of some countries may be
totally unfit for others. Accurate preliminary data of a reliable nature
may generally be obtained by addressing the United States Consuls
located at the various seaports of the Latin American countries. These
gentlemen are especially equipped for obtaining all the information
necessary, and are charged by the United States Government to supply
complete details to inquirers.

[Illustration:

  A COMPARISON OF CLIMATES

  This map shows South America with its cities and countries placed just
    as far to the north of the Equator as they naturally lie to the
    south of it, in order to enable comparison at a glance of the
    climatic relationship between the United States and the South
    American markets. The effect is the same as if the map of the
    Western Hemisphere were folded together at the Equator and the
    impression of the South American part transferred upon the map of
    North America. The longitudinal position of every part of South
    America is thus correct.

  The map at first glance would lead one to say that Argentina has a
    range of climate equal to that from the City of Mexico to Hudson
    Bay, but the climate of South America can’t be judged that way. A
    cold ocean current along the West Coast and a warm one along the
    East Coast greatly modify it. The altitudes of parts of the
    continent within the tropical zone also temper the heat. The extreme
    north of Argentina is described as having the climate of Southern
    Florida. The mean annual temperature at the very southermost part of
    Argentina is said to be about that of Maine with a minimum hardly
    lower than the moderate one of Puget Sound and a maximum no higher
    than that of Nova Scotia. All Argentina is said not to have the
    extreme range of temperature found in the United States. Going to
    show how greatly ocean currents offset latitude, the islands of
    Great Britain are also drawn in on the map in their position
    relative to the Equator. London is farther north than the
    northermost spot in the United States exclusive of Alaska.


  (_Reprinted by permission of the editor of_ The Americas, _published
    by the National City Bank of New York_).
]

The wisest and best plan, once you are determined to enter these fields,
is for one of the heads of the firm or one of the leading officers of
the company to make a preliminary tour through the lands in question for
the purpose of studying the situation and ascertaining the demands
existing for similar lines. On such a trip prices should be carefully
observed, strict attention paid to duties, freight and other incidental
charges. It is by noting and studying these conditions that you will be
able to meet and overcome competition. Special care should be exercised
in giving the natives just what they want and not in trying to foist on
them the thing you wish them to have, even should it be better, cheaper
and more practicable. With this object in view, local dealers and
merchants should be interviewed and care taken to ascertain every detail
that might possibly have any bearing on your future marketing plans.
Being thoroughly prepared in advance helps materially in smoothing the
road to be travelled. Samples of competing lines with prices and minute
data of all kinds should be sent to the home office for reference
purposes.

It will soon be apparent, assuming that the official or representative
who has gone over the field finds it pregnant with possibilities, that
your business in Latin America may be conducted upon one of the
following lines:

First. The opening of your own branch house for each country, or for a
group of countries.

Second. Establishing an exclusive agency for each country with a
resident merchant therein.

Third. Selling through your own representative directly and conducting
your own shipping and banking.

Fourth. Marketing your article through some American export commission
house.

Fifth. Exploiting your goods through your own representative and turning
the account over to a local or native commission house or merchant for
forwarding the goods and collecting for the same.

Sixth. Uniting with several manufacturers in allied lines and sending
one salesman to represent you, on a co-operative plan.

Which of these particular forms of introduction is best adapted to your
special line is a matter for you alone to determine.

Assuming that your capital and commodity warrants you in establishing a
branch house in each individual country or in a group of countries,
which is by far the best plan of conducting your business, the question
of prime importance is that you should be located in or near the leading
seaport in order that you may be close to shipping as well as to be able
to superintend personally the discharge of goods and their clearance
through the slow moving native custom houses. Great care should be taken
to be on the leading line of railway, or near as many different lines as
possible in order to facilitate the forwarding of goods to their
destination and to the interior. These are vital factors and should be
carefully weighed in determining your location. If your business is one
requiring the carrying of a large and varied stock, it will be rather
difficult to get proper warehousing accommodations especially in the
metropolis or port and it may be necessary to erect your own building
for this purpose.

The adoption of this system of introducing a line of goods requires
careful planning and too much stress cannot be laid upon the selection
of a tactful and experienced manager for your venture. Banking
arrangements must be made. Municipal and state taxes must be provided
for and the thousand and one details attended to that are unknown and
unheard of in this country, each one of which requires patience and tact
in solving and means the expenditure of money and the apparent wasting
of much time. In other words the initial expense involved is far greater
than a similar undertaking would be in the United States or Europe and
only a business yielding large profits can be expected to withstand the
immense financial drains to be incurred. While the salaries of the
native office help will be comparatively smaller than the prices paid in
the United States, still there will be noted an increased cost in
maintaining a travelling force as well as the necessary American
employes of the staff. Transportation charges are high and the cost of a
salesman on the road in any of these lands means fully double the
expenses of a similar man in this country. Travel facilities are poor,
distances between markets long and much time must be consumed in each
city visited, especially in the preliminary trips, all of which
increases the cost of the traveller, and for the first few years makes
him a rather expensive luxury. This must be submitted to with patience
for upon his efforts depends your success. It therefore follows that the
business to be done must be a large one to afford such preliminary
charges and its future outlook must be of the brightest character. That
such agencies can be maintained at a profit however is proved by the
fact that all the large houses of Europe prefer doing business along
this line, and within comparatively recent years this is the method
being employed by the big American houses and corporations venturing
into these territories. The Standard Oil Company, the Vacuum Oil
Company, The Singer Sewing Machine Company, The National Cash Register
Company and many of the larger mercantile houses and manufacturing
concerns maintain their own branch offices in the principal cities of
the Latin American countries and are entirely satisfied with the
results.

The establishment of your own agency in a country indicates to the
public your intention to become a portion of the native business
community and gives you a solid standing with the trade besides bringing
you in closer and more intimate touch with the consumer. It has many
other advantageous features which must be apparent.

Should your business not warrant such an outlay, the next best method of
approaching the situation is the appointing of some high-grade, resident
merchant, either foreign or native, in each country, as your exclusive
representative. It is obviously unnecessary to state that in making such
a selection the greatest care should be taken to investigate most
thoroughly the business reputation and financial standing of the one
appointed. Very often it is wisest to give your agency to some small,
young aggressive firm, with limited capital, rather than to a staid old
house with much money and prestige. These suggestions are given for what
they are worth. Common sense will indicate the concern which in your
good judgment is best adapted to represent you properly. Old established
houses generally have the capital and means to introduce goods through
the country and will often guarantee to place a certain amount of
business within the year upon conditions to be specified. Once you have
placed your agency, be sure to turn over all inquiries or orders
received from within their territory to them for their attention. This I
regret to state has not been typical of American houses and has done
much to make responsible firms hesitate about accepting exclusive
agencies. A strict adherence to this suggestion will tend to establish
your honesty of purpose and will be deeply gratifying to your local
representatives.

The house accepting your agency will have its own salesmen to travel the
country and to introduce your line to the trade in addition to other
appropriate means toward this end. They will be only too glad to have
your representative accompany their local man from time to time and are
highly appreciative of such an interest, because it stimulates both the
customer and their representative and at the same time gives you the
opportunity of knowing just what they are doing and what they have to
overcome in the way of prejudice and competition. It is always well to
aid the local agency with a small advertising allowance, to be spent as
your combined judgments may dictate. This gives a further evidence to
them of your desire to go after the trade and keeps their interest more
intense on your line. Unfortunately too many American houses think that
it is unnecessary to spend any money in advertising their goods in these
lands. The sooner they take advantage of the advertising possibilities
afforded by these virgin fields the larger and quicker will come the
returns. Very often it is advisable to make specific allowances to the
firm holding your local agency with a view to having their
representatives make special trips in your behalf. These are, however,
all details to be worked out advantageously between the contracting
parties and will suggest themselves as conditions develop.

In the event of your organization having an export department, properly
equipped to conduct correspondence in the native tongue and give direct
attention to the banking problems arising as well as to shipping and
forwarding it is advisable to have your own traveller, or travellers, to
cover one or more of the countries or all of the territory involved.
This keeps the home office in closer touch with all the details of the
business and is to be commended in certain lines of trade but is only
advisable when one’s foreign department is thoroughly perfected and in
the hands of a competent manager.

Orders sent in by your traveller will contain such complete and specific
instructions as to forwarding and banking that they can be intelligently
handled at a minimum of expense with your own force. It should be
observed however that your representatives for the first few years
should make the entire territory once every twelve months at least, and
oftener if conditions warrant, in order to keep your goods continually
before the dealers and to engrave upon their memories that you are in
the field to stay and wish to cater to them and their wants.

If conditions are such that you cannot afford a personal representative
the commission export house offers opportunities for bringing your goods
to the attention of the native dealer. There are many of these concerns
situated in all of the larger cities of the United States; New York, New
Orleans and San Francisco being especially well provided with them,
owing to the fact that they are the largest ports in the East, South and
West respectively and have excellent forwarding facilities. As a rule
these firms are well supplied with capital and capable of rendering
effective and efficient services. They are open, however, to the one
objection that most naturally they will give the greatest attention to
the line yielding them the largest profit, and just how to induce them
to handle your goods to the exclusion of other competitors is a problem
to be solved by you with the concern you decide to use for your
purposes. Furthermore, it should be your express duty to see positively
that your customer is thoroughly protected against the commission house
making any additional charges or increasing the original price quoted by
you to your client. This has been a common practice, and has had the
effect of tending to retard business and prejudice trade in these lands.

As a rule these agents pay cash for goods when delivered, a feature
which has its attractions to the manufacturer or merchant working on a
limited capital and requiring his money promptly. Their financial
connections are of a kind that enable them to do this, allowing a very
small commission for their trouble. In addition to all these features
they have a corps of experts familiar with shipping procedures,
insurance problems, the routing of freight, packing, banking, as well as
the details of foreign correspondence so that much of the complications
and annoyances of the export trade is taken from your shoulders and
borne by men familiar with the entire subject. Every few months it is
the custom of many of these organizations to send their representatives
through the entire Latin American territory with the idea of developing
trade and receiving orders. There can be no question as to their place
in this field or as to their general efficiency, and it is always well
to discuss with some high class commission export house what they can
offer your particular line when contemplating the possibilities of doing
business in these lands.

A few American merchants have found it expedient to sell goods through
their own representatives, turning the accounts over for delivery to
some local concern for the purpose of forwarding the goods and making
the collections thereon. While this may be advisable under some
conditions, still it is not a practice to be commended and is only
warranted when the local or native commission agent is of a high grade
and financially responsible and where the purchaser is likely to impose
upon the buyer through some of the many methods in vogue among a certain
type of small native business men.

Rather than entrust the future of one’s business in the export field
with an inferior representative, it would be better to co-operate with
several manufacturers in allied lines, and send one man to represent the
entire group. It is questionable if one traveller could do justice to
more than five or six lines and they for obvious reasons should be
related to each other, the principal idea being to economize the time
and expenses of the one handling them. For example, a representative
might carry neckties, shirts, collars, socks, and men’s underwear and
hats, or such lines as corsets, stockings, ladies’ underwear and shirt
waists might be effectively presented by one salesman.

The strictest care should be taken in the selection of the person to
represent each group of merchants and under no circumstances should
lines which might sooner or later develop into competing ones be allowed
to be carried.

Such an arrangement appeals particularly to the smaller manufacturer or
merchant in that it brings his goods to the attention of the foreign
dealer at a minimum of cost with a maximum of efficiency and paves the
way for developing the market. Many of the leading sellers in Latin
America to-day had their start along this line of co-operative selling.

Whatever medium you may feel it wise to select in entering these fields,
bear in mind the fact that under no circumstances should your
representative overstock the buyer with goods. It is far better to
receive small orders at first than to sell large ones which may move
slowly. Climatic conditions are such that in Latin America many goods,
unless sold quickly, rapidly deteriorate and the consequent loss will
fall on the individual merchant and result in complaints from the buyer
if he becomes the possessor of damaged goods, thereby prejudicing your
article in his sight. The salesman in thus cautioning a dealer will
exhibit his material interest in the future welfare of the merchant and
more thoroughly establish a substantial business friendship with his
client.

In many of the countries of Latin America, owing to their enormous
extent and lack of travel facility, as well as the exorbitant local
freight rates and great distances to be traversed it is often wise to
establish more than one agency. In Brazil for example, it might be well
to place agencies in Rio de Janeiro, Santos, Bahia, Pernambuco, and
Para, for the simple but sufficient reason that the freight on goods
from New York to any of these ports direct, is less than the local
freights between many of these cities. To get from Callao, Peru, on the
west coast to Iquitos on the eastern boundary of that republic is a
difficult problem. It is really quicker, cheaper and far more convenient
and comfortable to come first to New York, then go to Brazil and up the
Amazon, to Iquitos, than to undertake the hazardous journey of many
weeks across the risky overland trails through the interior of Peru.
Assuming that you were desirous of giving an agency for some special
line of merchandise liable to be a good seller in the eastern frontier
of Peru as well as throughout the republic, one agency should be placed
in Callao, or Lima and the other in Iquitos. In Chile, it is likewise
often advisable to place an agency for goods in one of the northern
ports of the republic as well as in Valparaiso, or Santiago, either
Iquique or Antofagasta being selected for this purpose, as being best
adapted to reach the center of the nitrate industries.

[Illustration:

  _Photograph by Underwood & Underwood_

  Drying hides and skins in Argentine
]

Many of the Central American countries, particularly Nicaragua,
Guatemala, and Honduras, as well as Mexico, having seaboards on both
coasts will present problems for determining the location of agencies
accessible to both oceans. These and other conditions will be
continually arising. After discussing the matter with your factor or
your representative, common business judgment will be the only safe and
sane rule to warrant you in reaching a decision.




                                  XXII
                     THE SALESMAN AND THE CUSTOMER


The success or failure of a business venture in Latin America depends
materially on the character of the representative sent to these marts of
trade. Never having seen or heard of you or your goods, it is most
natural for the foreign merchant to make his deductions from your
emissary.

The typical ambassador of commerce for South American fields should
combine elegance of dress and courtliness of manners; be a linguist; a
scholar; a diplomat; a philosopher; always a student and a business man
as well. He should continually bear in mind that his visit is
unsolicited—that in a sense he is an aggressor, an intruder, and above
everything he should conform to the usages that custom has established
in this part of the world.

European merchants and their travellers, with the hope of strengthening
their position have spread about the unwarranted idea that the Yankee is
tricky in all his dealings and this condition must at all times be
combated not theoretically but obviously and practically. Be frank with
prospective customers. Do not try to load them up with goods. Keep your
agreements to the letter. Live up to your contract even if you lose
money by doing so. Follow exactly whatever shipping instructions are
given.

After an initial visit to a possible client it is advisable to develop
his social side. Ascertain to what clubs he belongs and get put up at
them, so that an opportunity may arise to see him after the cares that
infest the day are gone. You will find the Latin American a gentleman, a
past master of the art of etiquette, a Chesterfield in matters of
decorum and an agreeable companion. He, like ourselves, has his
weaknesses. Find what they are and cater to them. He will be responsive,
after he gets to know you. The amount of flattery that he will stand for
and assimilate is beyond belief. The Spanish language is especially
equipped for the purpose and provides means for raising to its _n_th
power the superlative degree. Do not for a moment get the idea that you
are dealing with a child, for though, like the Chinaman, he presents a
bland exterior, he is uncannily wise. He knows his line and prices and
market conditions. Existing in a world of little excitement, few
amusements, and one foreign mail per week, his mind is not diverted and
he unconsciously concentrates and becomes a specialist in his business.
Having always lived thousands of miles from markets he has learned to
prognosticate trade developments years ahead.

He expects to talk to you in Spanish excepting in Brazil where the
language is Portuguese, and he will tell you that 100,000,000 people all
over the world speak in this tongue; that European salesmen converse
with him in this tongue. Obviously, if you can discuss affairs with him
in his own idiom you are on the road to success. He often speaks French
too, and if you cannot talk in the language of the Dons he will ask you
to do so in that of the Gauls. Only in the largest establishments of the
big seaport towns will one find merchants with an employe or two
familiar with English. It is therefore obvious without a knowledge of
Spanish a salesman in this territory is hopelessly and seriously
handicapped. In fact he is inefficient. Europeans recognizing the
importance of this employ only representatives speaking the languages of
the countries wherein they travel. I recall meeting a German in Assam
talking fluently the native tongue and later ran across him in Arabia
conversing in Arabic in the market place. Americans have never been
linguists, but in our business lexicon there should be no such word as
“impossible.”

I remember an American traveller for an oil machinery house startling
those in the dining room of the leading hotel in Lima, Peru, by pointing
to the menu and alternately grunting and squealing aloud. He could not
talk Spanish. In a few moments the place was in an uproar. Some thought
he had gone crazy; others that he was insulting the Peruvians or the
proprietor of the hotel. The head waiter rushed to me and asked that I
ascertain what the trouble was. Imagine my surprise when my countryman
in explanation of his barnyard impersonation said: “I was trying to tell
these durned fools that I wanted ham.” Incidents like these are never
forgotten; always magnified when told and invariably hurt us seriously,
socially and otherwise. This little affair happening in a foreign
country where news is scarce was talked of in the hotels, clubs and
cafés, printed in the journals and illustrated in the comic papers.
Americans were always referred to by each narrator as uncouth and the
story gone into with great detail and precision. Grandparents in Peru
one hundred years from now will be telling this yarn to their
grandchildren.

I have long ago ceased to wonder at the lack of common sense exhibited
by some large American houses in selecting the type of man they employ
for Latin America. I recall one well known concern in this country
sending a man to sell carbon paper and typewriter ribbons who spoke only
English. Of the man personally I will only state that by nature he was
the very antithesis of everything he should have been. Calling upon the
leading jobber in his line in Bolivia who spoke only Spanish he found it
impossible to do business, and undertook to tell his prices by yelling
them, a method in vogue among those who have command of one language and
who seem to feel that if you can repeat loudly in a crescendo voice, and
with great precision, what you have to say your hearer will ultimately
by some occult means understand. In the midst of this vocal exercise by
the American, a German happened to drop in, also desirous of selling the
dealer goods, and kindly offered to interpret for the Yankee, which
suggestion was eagerly accepted. The gentleman from the Fatherland was
also selling typewriter supplies and I heard him afterwards telling his
friends in the hotel with much gusto how he handled the matter. I shall
not try to repeat the conversation. It was humiliating for me to think
what a fool my fellow citizen had allowed himself to be made. When the
American said “These ribbons are $4.00 a dozen,” the German translated:
“These ribbons are $8.00 a dozen.” The American salesman told me
afterwards that he had written his house that they could not compete
with European prices in this market and I am certain that this concern
will never again be tempted even to consider Latin American
possibilities. These two cases strikingly serve to illustrate the
importance of being familiar with Spanish, or the language of the
country wherein you are expected to sell goods.

Extremely sensitive and quick to appreciate a kindness, it pays to study
the social usages among Latin Americans and to live in conformity
therewith when among them. It is, for example, considered good taste to
walk always on the side of the street next the curb, to take off your
hat and stand uncovered as the funeral of peon or plutocrat passes, to
bow generally to those present as you enter a streetcar or café and to
salute them similarly as you depart, while gentlemen always raise their
hats when they meet. The observance of these frivolous niceties marks
the gentleman, the failure to do so the man, and the yawning abyss
between these two degrees of masculinity to the Latin American mind
cannot be bridged.

Generally speaking every Latin American is named after some saint and
observes the festival of this canonized individual both socially and
religiously. Ascertain what day this is and always send some little
remembrance. It creates an intimacy hard for us cold-blooded northerners
to understand. Never forget church and national festivals. Both of these
are dearer to the impulsive natives than are our own and are celebrated
more elaborately. It pays to keep a memorandum book for this purpose,
noting data of this nature, so as to be always in close personal touch
with customers and prospective clients. Little cards and other
appropriate souvenirs from the north commemorating these events are
highly cherished as well as deeply appreciated and erect invisible and
effective barricades about the sympathetic Latin, sufficient to repulse
the attacks of other salesmen.

Religion and political conditions should never be discussed. The Latin
American is almost always superstitiously religious and intensely
political. To take the wrong side of a theological argument may land you
in the hospital while an error in judgment on a political problem may
mean jail. Both are places to be avoided in these lands. Besides such
arguments always serve to make one decidedly unpopular and materially
hurt business prospects.

Religious processions are frequent in the streets. They excite curiosity
and are often amusing viewed from our standpoint. Do what the populace
does as they pass: kneel or raise your hat, otherwise get away from the
scene as quickly as you can. Many clerical parades have been turned to
riots by some foolish foreigner failing to observe these suggestions.

With but few exceptions, hotels in Latin America are terrible. Toilet
and bathing accommodations are poor, the cooking vile and the dishes
unpalatable, while the beds are intolerable. Vaults in American
cemeteries are far preferable as residential quarters in comparison with
some rooms I have slept in in this part of the world, especially in the
small towns and villages of the interior. Conditions become rapidly
worse the farther away one gets from the larger cities, and as one
penetrates out of the way places hammocks and your own food supplies are
to be recommended. It would be almost impossible to describe the
primitiveness which exists in this part of the Western Continent away
from the beaten path. Travel facilities are execrable. Trains are slow
and late and accommodations decidedly bad. Steamers are small and stuffy
and not safe. River boats are provided with few if any conveniences.
Going up the Magdalena River in Colombia from Barranquilla to Bogota, a
journey of about ten days, the traveller formerly had to provide his own
sleeping accommodations and this _was wise_, and it always showed good
judgment to carry tinned food and bottled water.

Appointments are more often honored in the breach than in the
observance, more often forgotten or delayed than kept. Business for no
apparent reason is deferred to “mañaña” (to-morrow). Time is not
considered by our friends residing in the vicinity of the equator.

These and many more heart-breaking conditions will confront you every
day of your trip through Mañaña land. Be a philosopher. Don’t grumble.
You came for business. These delays and deprivations are only incidents
in the game; they make the reaching of the goal all the more of a
victory. Grit your teeth and forge ahead. If fleas and mosquitoes and
bedbugs bite, don’t revenge yourself on your possible customer, by
telling him what you think of his country and countrymen. Learn to
smile. It helps more here than elsewhere.

Be a student from the day that you sail from America to the day that you
hand in your last expense account. It will improve you mentally and help
your firm financially. Study the needs of the various countries through
which you pass. Observe what the people require. Listen to suggestions
from all sources. European successes in these markets were greatly
advanced by giving the people just what they wanted. Yours will come in
the same manner. Remember that a vast majority of the population whom
you will meet are either Indians or of Indian origin. Their tastes are
sure to be primitive, to incline to gaudy colorings and lack
practicability. Remember, too, that they are paying the bills. If they
want the things that offend your educated, æsthetic eye, forget it and
explain to the house why they should make them as desired. It is always
easier to follow styles in vogue for centuries than to create new ones
and foist them on the public.

Latin America has always been a hotbed for disease. Be abstemious in
eating and drinking. Alcoholic beverages should be taboo, inasmuch as
they unnecessarily heat the system. Water supplies are inefficient and
often polluted. Your drinking water should be boiled; if good water is
not obtainable otherwise drink some reliable mineral water. Remember
that plague comes from the bite of the flea, and yellow fever and
malaria from the bite of the mosquito, so avoid as much as possible the
places where these pests are to be found. Daily baths are apt to remove
danger from flea bites and sleeping under a net minimizes the
possibilities of contracting yellow and malarial fevers. Personal
hygiene should always be observed. In twenty years of the roughest and
toughest travelling up creeks and down tropical rivers, through forests
heavy with dew, across barren, wind-swept plains, over mountains, in
high and low altitudes, by exercising these suggested precautions I have
had only one serious illness, yellow fever. Conditions have vastly
improved since I first began my trips and are getting better every year.
With judgment one could now take a journey all over Latin America
without any physical dangers or serious illness intervening, and with
less risk than he would be liable to encounter on a trip between New
York and Chicago.

From a perusal of the requirements necessary for a salesman in this
territory, and I may add that I have not overcolored, or underestimated
them, it is apparent that the right man will be difficult to find. If a
house cannot see its way clear to enter this field with the right kind
of a representative, it had better remain out of it altogether or
combine with several concerns in allied lines and send one high grade
man to represent them jointly. It is extremely doubtful if any one could
do justice to more than five firms in such a venture. The plan adopted
by European houses is to send a capable young man to one of the
countries and let him live there until he has acquired the language, the
customs of the people and their ways of doing business. Then they put
him on the road. This serves to demonstrate the thoroughness which
marked every step of the European conquest of these markets. Our
American public schools are now instructing pupils in Spanish and Latin
Americans are coming to this country to acquire English in increasing
numbers right along, so that the possibilities are that within a few
years these conditions will change for the better. To-day, however, the
efficient, competent and reliable salesman for Latin America is so rare
and so much in demand that he can practically name his own salary.

Nearly every country in Latin America requires that a license to sell
goods must be taken out by the salesman before he can do business within
its territory, and as a result there has arisen much cause for
complaint. As a rule these taxes or fees are entirely too high and out
of proportion to those charged anywhere else in the world, thereby
creating a natural tendency to evade the law by every possible means. In
some localities runners about the hotels stand in with the authorities
and for a small sum provide guests with the necessary paper entitling
them to sell goods, while in other places the law is practically
ignored.

The right to collect this tax in many countries is sold yearly by the
municipal authorities for a lump sum to some individual, who always
endeavors to collect as much as he can from the concession. Beware of
the person who holds this right. He has at his beck and call a score of
petty employes about the city and around the hotels who report your
movements to him, and the result is generally disastrous to you,
especially if you try to do business without his permission.

In the Argentine republic for example each province has a fixed fee for
this purpose and the total sum, if paid, would eliminate the profits
from the average amount of your sales. Failure to pay generally means a
term in jail.

The merchant’s yearly taxes in many countries includes the right to sell
goods by travelling salesmen and if he is approached properly by a
non-resident representative will allow him to take advantage of his
business foresight and use this permit, thereby giving a legitimate and
legal opportunity to omit paying these obnoxious charges. By observing
these suggestions and the exercise of diplomacy and good judgment,
little need be feared from the authorities in this connection.

Before entering a foreign country for the first time, it is well to
obtain letters of introduction to leading merchants and especially to
government officials. They prove wonderfully beneficial and are highly
successful in smoothing out the rough places which are sure to be met
with in the paths of business. It generally pays to act implicitly on
the advice given by responsible people living in the land wherein you
are a pilgrim, for they are well acquainted with local idiosyncrasies,
and can suggest the exact spot where a small tip will facilitate matters
materially.

Be sure to cultivate the acquaintance of the high grade old time
traveller whom you will be certain to meet sooner or later on your trip.
You will find him pregnant with pertinent and useful suggestions, which
will do much toward making your initial trip a success. Years of
experience in the Latin American school of business have given him a
marvellous amount of wisdom, which you will always find him willing to
dispense if you are the right kind and not trying to impress the world
with your superior knowledge.

Both as a matter of courtesy and as a good business proposition be sure
to call on the American consular officer whom you will always find at
the port. He is in touch with the local merchants, is generally well
informed as to market conditions and can give you many practical
suggestions. He also has a line on the financial standing of most
dealers throughout his territory.

Be sure that your order blanks are printed in triplicate and in Spanish
for all countries except Brazil where the language is Portuguese. Ample
space should be provided under the captions “Terms”; “How Packed”; “How
Invoiced”; “How Shipped.” When possible, I have always insisted on the
buyer signing the order and filling in with his own handwriting the
spaces referred to. There can be no cause for refusal to accept the
goods, if you have complied with the written conditions of the merchant.
Very naturally when the order has been signed the merchant should have a
copy, another sent to the house, while you retain the third one for your
personal files and for future reference.

If possible always carry your samples in one or more cases. Clothes
should never be packed with them, but in separate trunks. Now and then
you will find officious and over energetic customs officials. Treat them
with courtesy, even if they irritate you. Remember that they can make
you endless trouble and that they may understand any caustic remarks you
may venture to make in English. As a rule, however, these officials are
very considerate. If you are selling shoes, it is wise to bring only one
sample of each pair. If you carry a line of silverware, have each sample
sawed in half. This will at once remove suspicion from you as far as the
customs are concerned.

If you are to travel the West Indies, Central America and the northern
countries of South America, including Brazil, Colombia, Venezuela and
Ecuador, light clothes should be relied upon. Remember too that in the
highlands and mountainous districts of these countries it is often cool,
especially at night, and a light overcoat is therefore advisable. In the
highlands of Peru, Bolivia and Chile, heavy clothes are always worn. The
climate of Southern Chile, Argentine, Uruguay and Paraguay is much like
our middle States, excepting that the seasons are reversed, their winter
corresponding to our summer and vice versa. A trunk packed for a
complete trip for all of Latin America should therefore include both
summer and winter clothing.

It is wise to pay much attention to the style and nature of your
correspondence. American business men for years have been concentrating
and condensing their thoughts—saying in a few words the same thing that
formerly were expressed in pages. The Latin American has not yet
practiced this conservative method of expressing himself and as a result
his correspondence is voluminous and he indulges in word paintings that
are picturesque and unique but not practical. If you are not as
excessive in this respect as he is, the chances are, unless he knows you
exceedingly well, that he will construe your letters as brusque and far
from courteous. His letters will be filled with the sentimental phrases
of past ages. This is his idea of politeness and should be your guide in
addressing him. You cannot be too verbose in your communications. He
comes from a race noted for its grandiloquent declamations and this
typical characteristic, this desire to figuratively gild refined gold,
add a perfume to the violet and a whiteness to the lily, means much to
him. It is one of his ways of estimating your educational worth and of
calibrating your standing as a gentleman. I know of no better
exemplification of this than a comparison between the flowery way Latin
American letters are terminated and our own. It is more personal, more
deferential and more impressive to sign yourself, “Your attentive and
secure servant who kisses your hand,” than briefly and harshly, “Yours
very truly,” yet the former method is the one in which practically all
letters close coming from these sunny lands.

[Illustration:

  Avenida Central, Rio de Janeiro
]

Bills, catalogues, price-lists, in a word all “literature” should be in
the language of the country for obvious reasons and in having these
translated be sure to employ only experienced and able translators.
Nothing paves the way for so much ridicule as poorly expressed and badly
produced business documents, for the keen eye of the Latin notes errors
with great precision. Efficiently produced and artistically printed
materials of this nature impress one in these lands and help materially
in giving you and your firm a high standing in the minds of the native
merchants, while poorly got up pamphlets and the like open his flood
gates of criticism and prejudice both against you and your goods. All
weights and measurements should be in the metric system.

Be sure always to bear in mind that first-class mail to Latin America,
excepting Panama, Mexico, Cuba and Porto Rico, cost five cents an ounce
or fraction thereof and three cents for each additional ounce or
fraction thereof; all printed matter, one cent for each two ounces or
fraction thereof. Be careful therefore to put full postage on all
correspondence, otherwise your mail will be delayed and its recipient
subjected to a series of fines for your sin in short postage which will
have the effect of hurting your cause. Mistakes of this kind are
unwarranted and you should caution the house and the one in charge of
the mail to put proper postage on letters. Latin American merchants
always look upon letters short-posted as a shrewd Yankee plan to make
them pay part of the expenses of your establishment. From their point of
view this is not far from right either, for they are never guilty of
this fault so very prevalent among Americans.

If you have no fixed address instruct your correspondents to send all
mail in care of the consul of the United States of America, at each port
where you intend stopping. Remember that consuls are to be found only at
seaports. To address a letter Care of the Consul for the United States
of America, Bogota, Colombia, would practically mean that you would
never get the letter, for the reasons that these officials are found for
example in Colombia, at Barranquilla, Savanilla, Santa Marta, and along
the seaboard. It is unwise to send mail in care of the General Delivery.
Later on after you have been over the territory and established friendly
relations with some dealer or merchant, mail may be sent in his care.

Passports are unnecessary in Latin America.

Funds should be carried in the form of Letters of Credit. It is wise to
take one of these in Dollars and Cents and the other in Pounds Sterling,
as there will be many opportunities to use one of these advantageously
in selling exchange when the other cannot be so employed. This all
depends of course on the local demands for foreign exchange, and before
buying money, it is wise to ascertain which letter of credit can be used
more profitably. The saving which can be made in the course of a long
trip in closely watching the price of money and buying when conditions
favor you, is worthy of your best attention.




                                 XXIII
                       CUSTOM-HOUSES AND TARIFFS


No one can fully appreciate what difficulties custom-houses and tariffs
can cause until he has had experience with those in Latin America. The
custom-house officials deem it their duty to harass, embarrass, annoy
and add to the troubles, worries and expenses of the merchant in these
lands. They are veritable boulders in the path of business progress. The
charges, fees, tariffs, taxes, and the hundred and one incidental and
unwarranted expenses which exist in no other custom-houses in the world
save in those of Latin America, change from day to day and are
susceptible to as many interpretations as there are government employees
having any work to do with the goods under consideration. It would be
the height of folly to attempt to give tariffs and other custom-house
charges in any Latin American country to-day, for by to-morrow fully
half of them would be changed, and let me add that the alteration is
always in the form of an additional charge and never a reduction.
Tariffs are extreme and exorbitant, subject to the whims and financial
needs of those in power and liable to complete variation without
warning. Customs officials are recruited always from the class of
“politicos” hereinbefore discussed. The positions which they fill are
the political plums of the land. These men have not the interest of
their country, their countrymen or the merchants within their borders at
heart. Their desire is to acquire wealth by exploiting those with whom
their official duties bring them in contact, and they have reduced this
to a perfect science. The doings of Tammany are in the kindergarten
class as compared with these exponents of the theory that to the victor
belongs the spoils. The schemes designed and resorted to by these modern
inquisitors are almost beyond belief, and could only emanate from the
brains of those whose ancestors received their schooling in the days
when the “_auto da fe_” was common and Torquemada reigned supreme. Let
me illustrate by a few custom-house rulings taken at random from
different Latin American ports.

In a certain Central American country, clinical thermometers are
admitted duty free, according to the government tariff schedule.
Laboring under this belief a local druggist ordered one hundred. Imagine
his surprise when the customs collector charged him the duty assessed on
cut glass decanters, classing the thermometers as “etched glass
containers.” Their contents—mercury—was classed as an explosive at a
prohibitive rate and for “trying to evade the customs” a fine of $500.00
was added, or instead of getting the goods in, without charges, the
importer was obliged to pay $642.50 or go to jail.

In a shipment of pickles, because the invoice failed to state whether
they were put up in vinegar or mustard, a fine of $100.00 was collected.

On a box of candy weighing five pounds, sent as a present, the nature of
the ingredients of each separate piece of candy was not indicated, and a
fine of $80.00 imposed and obtained.

The bar of a famous ex-prize-fighter has been for years in a Latin
American custom house because the importer never could raise the money
to pay the arbitrary fine exacted. Brass pays a high duty according to
the schedule of the country to which this bar was shipped, because
cartridges can be made from it, although there is not an ammunition
factory in the entire land. In the decorations of the wooden pillars at
the end of the bar, there were one or two strips of brass about two
inches wide. The whole bar was assessed as of this metal and a duty and
fine amounting to several thousand dollars imposed, which caused the
American who bought it and who had intended to open a café in one of its
cities, to get out of the place on the first ship, leaving the bar as a
souvenir.

An iron bed, with four hollow brass balls as ornaments on the end posts
met with the same treatment in the same custom-house, paying a duty of
$200.00.

Theatrical appliances are free everywhere, especially if the property of
a traveling troupe. Despite this fact and a positive statement to this
effect in the tariff regulations, I knew one large Latin American
country, wherein a _carousel_, or “flying-horse” outfit, was refused
admission unless the owner paid the duty charged on live stock, each
wooden horse being assessed at the rate of $25.00, which is the tariff
on breeding stallions.

Thefts by minor employees of the custom-house are only too common. As a
rule these men are poorly paid and add to their scanty income by
appropriating whatever comes within their reach. I have known of cases
of soap, provisions, perfumes, shoes and the like to be entirely
confiscated in this manner. There is absolutely no redress. Very often
the higher employees are implicated in these nefarious practices. In one
of the largest and most progressive of Latin American cities, all the
foreign and native merchants had been receiving cases short of their
invoiced contents. Complaints to the authorities did not remedy matters.
Finally the thieves became bolder and the thefts more extensive, many
merchants being offered their own goods for sale at prices less than
they originally cost abroad. Concerted diplomatic pressure was brought
to bear, and an investigation promised. The day before the official
hearing, the entire block of custom houses involved was burnt, a strange
coincidence being that the four car tracks in front thereof, were
occupied with loaded freight cars so that the fire engines could not get
near enough to stop the conflagration. All records were thus destroyed
and nothing could be done, the loss, involving millions of dollars,
falling as usual on the foreign merchant.

Pages could be filled with similar data. All of our consular offices are
cognizant of these outrages, yet nothing definite has been attempted to
stop them. No matter what precautions the exporter takes, or how closely
he follows the shipping instructions, his customer can always be
victimized by these scheming officials. European nations suffer equally
with us and it would seem that the time is ripe for some united action
on the part of the great exporting countries to remedy this growing
evil, for that it hurts trade cannot be denied.

Not only are there unwarranted and excessive duties charged on imports
but on exports as well, and on these exports we as the largest user of
the things produced in Latin America pay the bill. These conditions
should be attended to at once, and it should be the business of our
State Department to adjust them properly.

On hides, coffee, rubber and sugar, which are the leading exports from
these countries, the United States charges no duty, or a merely nominal
one. The remarkable feature of this trade is that every Latin American
country imposes on all of these articles heavy export charges, which
according to their own laws are unconstitutional, and we pay the bills,
at the same time allowing them to impose exorbitant duties, outrageous
port charges, and illegitimate fines on our exports to them. It may be
argued that in the end the cost is finally borne by them, but the fact
nevertheless remains that there is much work here to be done by our
government to overcome these conditions for the benefit of all parties
involved. It is decidedly unfair for a country to collect revenues both
ways, namely, on its exports to us and on our exports to it.

The importer is the one who bears the brunt of these burdens. He is
continually paying bribes or fines which are of course added to the cost
of the goods. Failure on his part to “come across” means delays, loss of
goods, higher port charges and incalculable annoyances. One of the great
objections to this system of robbery aside from its basic principle of
error is that one shipment does not serve as a means for calculating a
price on the next one. A new custom-house official (and custom-house
officials are changed in these lands as often as a chameleon changes
color) may have come into office between shipments requiring a higher
standard of fines and bribes to placate. This obviously hurts the sale
of any article and makes the merchant hesitate to renew orders. Both
importers and exporters have preferred to be harassed, fearing that
their failure to comply with these unwarranted and illegal demands would
result in the exclusion of their goods from the country, a condition
which has often been imposed. Concerted action on the part of all
nations to stop this blackmail would meet with the support of the
merchants and importers of these lands, and the sooner some step in this
direction is taken the better.

Under the condition of affairs now existing, and the long-continued
attitude of our government toward all of Latin America, it seems as if
there is no hope for our people or merchants and that we must submit
uncomplainingly to these iniquities. There can be no doubt but that the
existence of such a state of affairs has done much to retard the healthy
growth of trade relations between all of these countries and the rest of
the world. Latin-American merchants are absolutely powerless to remedy
the situation by themselves. Attempts to improve must come from the
outside and be presented through diplomatic channels and most
emphatically insisted upon. A determined effort on the part of this
government would do much to bring about a change and would be a most
potent factor in extending our trade relations in these lands.

It may be argued that despite the system of fines, bribes and graft
which are so intimately associated with the Latin American custom-houses
the lands are prosperous and their merchants thriving, but the fact
cannot be disputed that the practice is decidedly wrong and reflects
materially on the integrity and dignity of the nation permitting it and
positively hampers the legitimate growth of trade.




                                  XXIV
                              TRADE MARKS


The registration of your trade mark should be attended to as soon as
possible if it is your intention to enter the Latin American field with
the article which you manufacture. In many of these countries the laxity
of the laws governing this important commercial protection work great
hardship on legitimately established enterprises. I regret to state that
in nearly every one of these lands, it is legally permissible for anyone
to register any trade mark on fulfilling certain simple conditions and
the payment of a small fee. The result is that a class of men without
scruples are continually on the lookout for articles which are being
well advertised in this country, knowing the probabilities are that
sooner or later there will be a demand for them throughout the world and
especially in the place wherein they reside. Magazines and periodicals
of all classes are watched with care and as soon as extensive publicity
campaigns are launched in the United States or Europe, the chances are
that the trade name of the article being exploited will be
simultaneously registered by a native in many Latin American Patent
Offices. The next step in the technique of these rogues is to wait until
some shipment of the goods in question arrives, a fact easily
ascertained by noting the shipping news from the States and reading the
invoices and the names of consignees, data which is eagerly sought after
and published with great detail by all the papers of the port. An
injunction is then immediately obtained and the entire shipment is
either prohibited from landing or held in the custom house pending
wearying and tiresome legal complications, with the result that the
quasi owner of the trade-mark in question is always victorious and the
shipment either excluded from the country in toto or awarded to the
unlawful owner of the brand, in lieu of court costs and legal fees. In
the latter event they are then sold, and the money derived therefrom
goes of course to the pirates who had the foresight to register the
name. These men often wait for years before accomplishing their purpose
and with the idea of ultimately making money from their venture have
been known to renew repeatedly the trade-mark, when it expired owing to
legal limitations.

Of course on attaching a shipment of goods bearing one of these stolen
and registered trade-marks, the native owner always offers to sell out
his interest in the same, invariably asking a price absurdly excessive,
particularly so when one stops to consider that he is asked to pay a sum
for the right to use his own name. Knowing that he holds the whip hand
in the controversy, and that you must meet his terms and conditions, if
you wish to do business in the country, and further that he has you at a
decided disadvantage in many ways, the situation which develops is
trying in the extreme. Then follows a period of conferences,
time-wasting interviews during which much patience must be exhibited
until ultimately practically the original sum of money asked must be
paid. This has been the general experience of almost every one who has
been so unfortunate as to be confronted by such a situation.

Good business judgment therefore dictates that when you register your
trade-mark in the United States, you should also protect yourself by
registering it in the principal countries of Latin America. The easiest
way to do this is through your patent attorney or legal adviser. If
however you have failed to take this precaution, the first duty of your
representative on arriving in each of the countries in question should
be the registration of your trade name in the proper department of the
government.

In order to give this his personal attention he should have a power of
attorney authorizing him to act in this capacity. This paper may be
prepared by your attorney, and should be in Spanish for all countries
excepting Brazil, where the language is Portuguese. This document should
be signed with the firm name by the individual having the right to do so
and in the case of corporations by the proper officer, and the corporate
seal attached. The signature should then be sworn to before a notary
public, whose name and seal should be certified to by the Secretary of
State for the State wherein the firm or corporation does business or is
chartered. The notarial oath and the certificate of the Secretary of
State may be in English. These papers should then be sent to the
Secretary of State of the United States at Washington, D. C., who will
in turn certify to the fact that the signature of the Secretary of State
for the State in question is correct and they should then be forwarded
to the Ambassador or Minister or proper representative of the Latin
American country, wherein it is desired to register the power of
attorney, who will in turn certify to the signature of the Secretary of
State of the United States. Armed with this much verified and sealed
document, your representative is then in a position to sign your name to
the application for the trade mark on his arrival, and to conduct any
further business before the local government arising therefrom. A
separate legal document of this nature is required for each country in
which you propose to protect your trade name.

In case your mark is not registered prior to the departure of your
representative for Latin America, it is wise to pursue the course above
outlined and have him take the matter up personally. It often happens
that by the exercise of judgment and through acquaintances which will be
made, or the prestige of the local attorney whom your agent will retain,
many objections which might seem unsurmountable can be easily overcome
by the man on the ground. Oftentimes too, the mark can be altered in
word or design, so as to evade one already registered without in any
manner affecting your rights.

When one stops to consider that much over 80 per cent. of the population
of these countries are unable to either read or write, and that they are
therefore forced to recognize an article by some distinguishing sign or
character, the great value of an easily discernible, prominent and
effective trade-mark becomes obvious. As a matter of fact the Indians
who make up the greater portion of the purchasing public of these
countries know goods only by brands and ask the storekeeper for them by
their distinguishing names.

Another feature to be most seriously considered in selecting a name for
your article in Latin America is that the Spanish alphabet contains no
“W.” This letter is formed, when it is necessary to use a word employing
it, by combining two V’s,—thus VV. Even to the educated native this
letter is unpronounceable. It is therefore quite obvious that no word
containing it should ever be used for distinguishing any brand. Such a
trade mark, for instance, as “White Wings” instead of attracting custom,
would act otherwise, owing to the extreme sensitiveness of the native in
fearing criticism in pronouncing the words.

Once your trade mark is established, no matter how crude it may be,
never change it. I know of a firm in Baltimore who formerly did an
enormous business in lard with Brazil. The cans which they used for
export purposes were a gaudy blue color and decorated with a pig of
elephantine proportions. For economic reasons they decided to use plain
tin cans, stamping the porker in relief thereon, but preserving his
pachyderm proportions. The result was a package equally as good, as far
as shipping purposes were concerned, with a saving of about two cents on
each one. As a consequence of the alteration the merchant was absolutely
unable to sell the goods shipped in the new container, and when later on
the manufacturers tried to regain the field which they lost, by sending
their former tins, the natives were sure that they were being deceived
and refused to buy these goods also. Competitors who had eagerly sought
this market took advantage of the situation and the Maryland house was
completely shut out of the territory and absolutely lost their business.

Another illustration may serve to impress the importance of maintaining
your trade mark in its entire originality. The Chinese are great
consumers of canned salmon, and our Western fisheries supply much of the
article. One firm in San Francisco had a brand well liked and very
famous among the Celestials. The label on the tin showed a highly
colored salmon having the wrong number of fins, with tail elevated in
the act of leaping over a waterfall down stream, while the background
was filled with tropical palms and cocoanut trees. The trade mark was
simplicity itself, and was recognized with favor all over the Flowery
Kingdom. Higher education however completely removed the brand from the
map. The head of the house had a son just from college, who had been
recently admitted to the firm. He started to clean up things—to be 100
per cent. efficient. His æsthetic and educated eye at once saw that the
label on the brand which had made the firm’s fortune was a living lie.
Salmon were not colored like the rainbow; leaped up stream only; had
less fins and depressed their tails when doing acrobatic feats. And
horror of horrors—no tropical palms or cocoanut trees grew in the
vicinity of the salmon’s habitat. So the label was reconstructed and
made a work of art, scientifically and piscatorially correct, and not a
mere illegitimate combination of wrong details. Then goods with the new
and authentic label were shipped. When they got to China no Chinaman
could be induced to buy them. They became dubious at once of the changed
label. Living in a land of suspicion they knew intuitively that some
designing schemer was falsifying their favorite trade mark. “No samee
chop” was the laconic reply when told that these were the old and well
known goods in a new dress. Argument was useless. The brand was
completely lost to the market. I know one merchant in Hong-Kong who was
forced to throw two car-loads of this salmon into the sea, because space
in his “go-down” or warehouse was worth more than that occupied by
unsaleable stock.

Should you for some reason contemplate altering your trade mark or the
color or shape or size of your container, always take the wise
precaution of consulting the merchant handling your goods abroad and if
possible adopt or be guided by his suggestions. He is on the firing line
and has his finger on the pulse of the buyers, therefore his opinion is
worthy of the most serious attention.

As typical of the high-handed hold ups of the local Dick Turpins, who
have registered trade marks under their own names in Latin America let
me state that I know of two American patent medicine men whose products
have been extensively advertised and are almost household words in the
United States, paying $28,000 and $25,000 respectively for the privilege
of using their own names in one country of South America. Both of these
concerns had been doing business in the United States for forty years
and they afterwards ascertained that the gentlemen (?) who had
registered their names had been waiting patiently for their coming all
the time. A well known mineral water, within the past two years, paid
according to my positive knowledge $2500 for their trade-mark and
considered that they got off remarkably cheap. The price originally
asked was $20,000 and their representative spent three months on the
ground using every possible means to reduce the figures of the original
demand. In the meantime nearly 500 cases of the water in question were
held up by the authorities, who refused to allow them to be landed until
they had the written consent of the native holding the registration
papers. A prominent typewriter company flatly refused to pay the
excessively high sum demanded by the party holding the right to use
their trade mark, reversed its name, and now sells its machine by this
unpronounceable designation. Pages could be filled with similar
illustrations, showing the great importance of properly protecting your
trade mark at the start.




                                  XXV
                          FINANCE AND CREDITS


The science of foreign banking is the most difficult to understand of
all the departments of modern finance. It requires the experience of
experts whose knowledge must be the most profound and complete and
includes such details as the conditions of the world’s markets, the
existing crops, factory productions, local and extraneous political
affairs, as well as external and internal commerce.

European financiers and merchants soon recognized the importance of
reciprocal banking arrangements between the home countries and foreign
fields and as early as 1862, anticipating the growth of Latin America
and sensing the financial necessities of its future merchants, opened
the London and River Plate Bank, which with its ramifications of
branches and agencies in Argentine, Brazil, Chile, New York, and various
European countries has been a potent factor in developing and
controlling business along British channels. Following the pioneer move
of this corporation, other institutions were organized in England, until
to-day the amount of British capital invested in banks in all of Latin
America is close to $500,000,000.

[Illustration:

  Calle Rivàdavia, Buenos Aires
]

Realizing the benefits to be derived from such monetary connections in
these countries and knowing that a bank’s co-operation meant much to
both the buyer and seller and formed perhaps the strongest link in the
chain of foreign commerce with which they hoped to girdle the world,
Germany followed in the footsteps of England and opened a similar series
of institutions in the same territories, even going so far as to have
branches in England, knowing the decided preference for “bills on
London.” Through their offices in the English capital, they succeeded in
keeping as much as possible of the business they acquired abroad in
their own hands, reaping all possible profit from every transaction. In
their turn, and as their foreign trade demanded it, France, Italy, Spain
and Switzerland entered the field but on a much smaller financial basis,
at the same time restricting their activities so as to confine them more
to the home countries and to persons of their own nationalities engaged
in this field of commerce.

Only recently have statutory and business conditions warranted the
advance of the American banker into this sphere of finance. To-day in
Latin America our banking institutions may be found in the Argentine,
Brazil, Panama, Cuba, Santo Domingo, Porto Rico, Mexico and to a small
extent in Haiti. As it becomes apparent that our merchants and those of
other countries require financial organizations to further and
facilitate trade with the United States, additional establishments will
be opened in these lands until ultimately the dollar will be so
enthroned in the estimation of the business world that it need pay no
homage to the Pound Sterling, which up to the present has been Emperor
Supreme in the Realm of Finance.

That this movement is judicious no one familiar with this trade will for
a moment dispute. The ability of the British banks, through their strong
financial arteries, gave them exceptional opportunities to force
business into the hands of English merchants, by obliging the seller of
exchange, for example, in Buenos Aires on New York to pay from 1 per
cent. to 1.5 per cent. more than if he sold on London, or if he desired
to buy, to pay a correspondingly higher price for a draft on New York
than on London. In addition to exerting thus their powers through a high
rate of exchange to drive merchants into British markets, the profits in
the transfer of money incident to the transaction were enormous. The
truth of this statement is vividly apparent when we are told that in
1912, “bills on London” valued at $9,025,000,000 were sold, on every
penny of which a fraction of a per cent. of profit was made by English
bankers.

It is not deemed necessary for the purpose of this work to go into the
intricacies of the banking problem in Latin America. Such incidents as
local loans, credits and financing, need not concern us, and are best
left for solution to those in this line of business. It is to be hoped
however that the presence of American banking institutions throughout
Latin America will result in the financing with American money of
municipal and national improvements such as water-works, sanitation,
electric and gas companies, subways, harbor improvements,
fortifications, building of warships, telephones, electric and steam
railways. It was the custom of the European financier in making such
loans to stipulate that the work should be done under the supervision of
citizens of, and with articles and machinery purchased in, the country
placing the loan. This was as it should be. It gave their engineers and
contractors an opportunity to force upon these countries their products
and methods, provided permanent employment for many of their countrymen,
who in return created a demand for articles of home production.

We may therefore consider the banking situation only in so far as it
applies to the traveller, the house he represents and the customer he
sells in the accommodation it can afford them and the service it may
render all parties. One of its chief uses will be to give reliable
information as to the credit rating of customers.

From a financial point of view all of Latin America may be divided into
seven groups: (1) the east coast countries of Brazil, Argentine, Uruguay
and Paraguay; (2) the west coast countries of Chile, Peru, Bolivia and
Ecuador; (3) the northern countries of Venezuela and Colombia; (4) the
Central American Republics of Guatemala, San Salvador, Nicaragua, Costa
Rica, Honduras, with which Haiti may be considered; (5) Mexico; (6) the
countries wherein American banking systems exist, such as Panama, Cuba,
Santo Domingo and Puerto Rico, and (7) the extensive group of foreign
possessions and islands such as British, French and Dutch Guiana,
British Honduras, Trinidad, Barbados, Jamaica, Martinique, Guadeloupe,
Curaçao and St. Thomas.

The first and second groups of these South American countries are almost
entirely under the domination and control of the European financier, the
English being paramount, followed by Germans, French, Italians and
Spanish, in the order named. Throughout Brazil, Argentine, Uruguay,
Paraguay, Chile, Bolivia, Peru and Ecuador, in all the larger cities and
ports, as well as in the interior and isolated towns, where business is
to be had, may be found branches, agencies, or representatives of
banking houses of these nationalities. They keep their fingers on the
pulse of trade, know mine outputs, crop prospects, cattle productions,
stability of governments, possibilities of revolutions or political
unrest, the condition of business—in a word everything that has any
bearing on banking or that could by any possibility reflect on the money
market. Taking all these elements into consideration together with the
important factor of the question of supply and demand, they decide the
price of exchange each day or how much a merchant having a foreign
obligation to meet, must pay for the necessary sum to liquidate his
indebtedness. Very naturally a better price is quoted for the money
required if payment is to be made in coin of the bank’s nationality for
the reason that it necessitates less actual movement in the medium of
exchange, the entire transaction as a rule being done on paper. This
preliminary saving of a fraction of a per cent. in a big business means
much in the course of a year and it has a strong tendency to make the
buyer seek markets so situated that he might profit thereby. On the
other hand the Latin American trader desiring to remit to the United
States for goods bought in this country is forced because of lack of
direct financial connection in South America to buy his exchange on
London, Hamburg, Paris or some other European money center, thereby
giving the European banker a profit of a fraction of a per cent. on
every dollar of our foreign business. Furthermore, invoices and bills of
lading are frequently attached to banking documents for custom house
clearance and other purposes, thereby giving the European banker and
through him, his clients and friends, an opportunity of learning our
prices and terms. And so, not content with giving the foreign financier
a chance to make money on our export trade, we also aid our greatest
competitors by supplying prices and information to defeat our commercial
purpose.

Some mercantile houses in the larger of these countries maintain for
their own use accounts in New York against which they draw when
liquidating bills in the States and do a general banking business as
well, including the cashing of drafts and selling of exchange. Obviously
only a large business concern could afford to do this and their natural
tendency is to sell direct exchange on New York as high as the European
banks. The dealer with small capital or the foreign merchant is
invariably for one reason or another forced as a general rule to do
business through the European banker when in need of American exchange.

In both Venezuela and Colombia, their nearness to the United States, a
direct steamship service to our leading ports and the fact that we as a
nation take the bulk of their products, combine to overcome all attempts
on the part of Europeans to establish banks in these countries. As the
local exporters ship their goods to our shores where they are disposed
of they instruct their agents to deposit the moneys so received in local
American banks, against which they issue checks in liquidation of
indebtedness, thereby eliminating the necessity for the services of the
international banker. Local banks in these countries, never very strong,
and always subject to forced loans from financially embarrassed
governments, do not enter materially into the business life of the
community although they also maintain credits in New York and sell
drafts against them. The consequence is that every leading merchant
throughout these lands develops into a foreign banker, on a small scale,
and buys and sells exchange. As long as this condition prevails, and it
works most satisfactorily, the foreign bank will not be required to open
its doors.

Practically the same state of affairs occurs in Central America, the
general tendency to political unrest and the existence of an
inconvertible paper currency in some of these countries, (similar
conditions being current in Colombia) serve to emphasize distrust in
local banks and concentrate banking operations in the hands of the
larger mercantile houses.

Prior to the revolutionary troubles which are now convulsing Mexico,
American, English, German, French and Spanish banks were to be found
throughout that country. The presence of the American banker in this
territory and the great bulk of trade movements between Mexico and the
United States, kept the price of exchange within reasonable bounds.

In Panama, Cuba, Santo Domingo and Porto Rico, American banks exist and
American currency is in use almost exclusively. All financial
calculations are made in dollars and cents and a complete and perfect
system of exchange on leading cities of this country is current so that
the subject need not be further discussed.

As is to be supposed, the European countries having possessions in the
West Indies and South or Central America, very naturally have banking
facilities between these colonies and each mother country. In addition,
prominent Canadian banks have successfully established branches in the
largest of the British colonies for the purpose of building up direct
trade with the Dominion of Canada, thereby eliminating the tribute
London usually demands on exchange. Although we take much of the exports
and sell these possessions most of their necessities, still the
individual business done in each island or colony is relatively small
and the field of operation too restricted to warrant other banking
connections. Besides exchange on New York is cheaper here than
elsewhere, owing to the fact that both Canadian and English banks
maintain branches in that city. In the other colonies merchants, as a
rule, have personal accounts in American banks in the States and are
thereby enabled to handle their own transactions advantageously.

There are four monetary systems in use in Latin America: (1) the gold
standard, wherein gold is the only legal tender, other forms of money
being maintained at a parity with or without a government guarantee; (2)
the gold exchange standard, wherein gold and other forms of money are
legal tender, the conversion of the legal tender into gold being
guaranteed by the government; (3) the silver standard, wherein silver is
the legal tender, and (4) inconvertible paper, the value of which
continually fluctuates and is dependent entirely upon the stability of
the government’s credit.

The gold standard is used by Bolivia, Cuba, Costa Rica, Ecuador, Peru,
Porto Rico, Santo Domingo, Uruguay, the British, French, Danish and
Dutch West Indies and possessions.

The gold exchange standard is in use in Argentine, Brazil, Mexico,
Nicaragua and Panama.

The silver standard is current in Salvador and Honduras.

Inconvertible paper is found in Chile, Colombia, Guatemala, Haiti and
Paraguay.

The basis of exchange between countries depends primarily on the
relation existing between the gold value of their respective moneys, the
price paid being materially influenced by the condition of the balance
of trade and the social or political state of the country. For example,
with the balance of trade in favor of England, the price of exchange on
that country would go up a fraction of a point or so, while if a country
is in a state of political or economic unrest, or at war, the price of
exchange on it goes much higher than if conditions were normal. For
these reasons exchange in all countries varies daily, the price for the
day being decided upon the receipt of European cables from the home
institution. It will therefore be apparent that it is impossible to
determine a fixed rate of exchange for any definite period. By buying
when exchange is low and selling when it is high, much money can be
made, especially if the sum involved is large. The United States did a
gross business with Latin America in 1912 of $526,468,815, practically
all of which was paid for by European exchange. Assuming that the
commission charged was one-half of one per cent., the cost to the
American merchant would be $2,632,344, which in itself is a strong
argument for American banks in these lands.

Furthermore the home offices of all of these European banks having
branches throughout Latin America, have had in mind the rendering of
financial assistance to the home merchant or manufacturer. This was
especially true of the German organizations, which were designed to
foster and facilitate commercial relations of all kinds abroad. In the
headquarters of these institutions, complete records and data are kept
regarding all overseas merchants, their credits and the financial
turnover of their business each year being known. As a consequence when
the exporter presented his shipping documents at say Hamburg, the bank,
should he so desire, knowing the rating of the importer, discounted the
bill, and for the service rendered charged a commission, while the Latin
American customer had the benefit of the time agreed upon for payment,
according to the terms of the sale. Compare this perfect system of the
banks extending courtesy to the exporters and the importers with the
American policy of “cash against documents” and we see another vital
reason why the Europeans succeeded in their conquest of these markets.
The American manufacturer with small capital was handicapped. His
business demanded a quick turnover; he had no way of ascertaining Latin
American credits and no American banking connections to accept his
export shipping documents at a discount. As a consequence, the door of
this trade was closed to him and his productions.

Owing to the fact that gold coin is bulky and heavy to transport and
paper money of a foreign nation always worth as a rule much less than
its face value, a traveler is accustomed to carry what is known as a
Letter of Credit. This is a document issued by a bank to a person or
concern authorizing him or it to draw on the bank or its correspondents
drafts for the whole or any desired part of the sum named in the Letter
of Credit, by means of sight or time drafts. Customary means to prevent
forgery of the holder’s signature are provided. On presenting this
document to the bank’s foreign correspondent, the sum desired is
advanced in the money of the country or in the monetary terms expressed
in the Letter of Credit. These Letters of Credit are always time limited
and are made against cash or some suitable guarantee to the bank issuing
them.

In traveling in South America it is advisable to have two different
Letters of Credit, one in Pounds Sterling and the other in Dollars. In
Central America, Venezuela, Colombia, the British, Dutch and Danish West
Indies it is often more advantageous to use dollars when buying exchange
or getting cash on the Letter of Credit, while in Chile, Argentine,
Brazil and Uruguay, pounds sterling are better. Before selling exchange
on your Letter of Credit or realizing money on it, always visit the
banks and see which one offers the best rate and whether English or
American gold is in demand. By taking advantage of these conditions much
money can be saved in the course of a long trip. The opening of American
banks in Latin America will do much toward making the dollar popular and
travelers are advised to take out letters of credit through United
States banks with local branches in these lands.

It has been the understood custom for the correspondent banking house on
whom a letter of credit was drawn to give the holder all information
desired as to the rating and financial standing of local merchants and
to aid him in every way possible. This was done in theory more than in
practice. Assuming that your letter of credit was on an English bank in
Buenos Aires, and that you were selling cotton goods, it would be most
natural for the bank manager in Argentine to evade all direct
information as to a possible customer’s standing, especially if his home
institution had been discounting bills for a good client in England
drawn against the local merchant. This is generally the attitude of bank
managers in competitive lines and particularly when there is a tendency
to cut into the trade of their customers. In this regard they can hardly
be blamed for they are really protecting their patrons. If however, one
is selling flour, or something which England cannot produce, the desired
information is given fully and freely and every assistance rendered.
Native or private bankers are not so reliable or as trustworthy sources
of information.

In only two or three South American countries are there responsible
commercial agencies; therefore, after getting what data you can from the
bank it is always well to verify it by any other means at hand.
Customers will often give references either in Europe or America as to
their standing, which should be corroborated. Inasmuch as you desire
information as to your clients’ credit and standing, you should be
equally willing to establish the reputation of your house and to that
end should assist as much as possible in supplying whatever facts in
this connection may be wanted.

To illustrate the insufficiency of our knowledge regarding Latin
American credits, let me cite a personal experience. At the beginning of
the war in Europe, one of the largest daily papers in Buenos Aires was
refused credit for less than $100.00 a week of cable news, because there
was no really reliable means in New York of satisfying the manager of
the foreign press agency that the paper was of the highest financial
standing. A moratorium had been declared in the Argentine and Europe and
at that time no direct banking connections existed with the United
States. This condition of affairs only served to make the New York
manager insist that the service be paid for weekly. He was absolutely
unwilling to extend credit for even ninety days, provided the paper paid
the cable tolls in Buenos Aires, which it had offered to do. The
publication, its plant, equipment and the building it owns and occupies
are easily worth $5,000,000. Furthermore it is eminently responsible and
reputable. With all the manifold resources of a great, wealthy
newspaper, it was absolutely impossible for it to remit money to the
United States to get the war news so essential for its readers. Cables
to Europe were cut, as the world knows, thereby preventing it from
getting reports from this source. Its position was desperate. After
finding that efforts to obtain the desired service from the press agency
were useless and that no credit would be extended, the South American
editor, in despair, cabled me, and I financed the paper for five months,
paying weekly the bills incurred. With the opening of the National City
Bank in Buenos Aires, remittance in full with interest was made for the
money I had advanced, the draft sent me being one of the very first
issued by that institution. This American news association had a great
opportunity to establish a profitable connection in a country where a
service of this kind is badly needed, for the favorable attitude of the
press is of the greatest benefit in developing both business and
friendly relations between nations. Instead of taking advantage of the
situation, the position it assumed has positively hurt us as a nation.

One of the things to be met and overcome is the question of long
credits. European merchants originally extended much time to reliable
customers. Instances are on record of from twenty-four to thirty-six
months being given. Goods were often shipped on consignment. The
tendency of late, however, as business became established in these lands
has been to curtail credits. This condition is one which demands
delicate and diplomatic handling and very naturally will be materially
controlled by circumstances. European banks were organized, as
hereinbefore explained, to discount long time paper, provided the drawer
and the drawee were considered good risks. The Federal Reserve Act,
however, falls short of helping us in this regard for the life of a
foreign negotiable draft is limited by it to ninety days.

Long credits are not to be encouraged. They were excusable in the age of
the sailing ships and poor banking facilities, but with the quick
transportation service of to-day are unwise and unnecessary. Under no
conditions should more than six months time be allowed and that only for
some special line dependent upon some future contingency, such for
instance as crops—agricultural machinery being a good illustration.
Staples and necessities require less time to dispose of and ninety days
should be ample. If possible it might be wise to get the customer to
agree to pay one-third of the invoice on receipt of shipping documents
and the balance in sixty or ninety days. On overdue accounts, the Latin
American merchant has always been accustomed to pay a good rate of
interest.




                                  XXVI
                          PACKING AND SHIPPING


The method of packing goods intended for the export markets of Latin
America is worthy of the greatest study and the most serious
consideration. Poor and improper packing, so characteristic of American
made goods, has caused us the loss of much business, and wherever I have
been in these countries it has formed the subject of much unfavorable
comment and highly warranted criticism. Of late there has been a slight
tendency toward improvement in this really important branch of the
foreign trade, but there is still much opportunity for bettering
conditions in this regard.

In the United States with every forwarding facility, the largest, best
and most complete transportation systems on earth, we are prone to think
of the rest of the world as being similarly provided with modern methods
for handling goods. The fact is that the burro, the llama, the camel,
the elephant, the coolie and the Indian are yet the greatest common
carriers, and it will be many, many years before the shrill whistle of
the locomotive will supplant the jingling bells of the pack train, or
the slow moving caravan, in the outer edges of terra firma. In Latin
America to-day, in proportion to its size, there are comparatively few
railways, and fully another century will elapse before it possesses half
the amount of mileage that we have at present in the United States. This
is primarily due to the scarcity of population and secondarily to the
inaccessibility of many of its interior towns, built in early days in
remote and secluded spots so as to be free from the frequent invasions
of buccaneers, as were the coast cities, or for the purpose of being
near some rich mine or fertile agricultural district. The narrow
mountain trails that wend their circuitous and tiresome way along the
gigantic buttresses which Nature has so profusely placed throughout this
part of the world are the only routes to these inland cities. As a rule
they are hardly wide enough for two mules or pack animals to pass,
except at certain localities. On one side they are bounded by the walls
of snow-tipped mountains, which raise their majestic heads into the
clouds, while on the other yawning abysses, hundreds, sometimes
thousands of feet deep, open their gaping mouths, along the bottom of
which winding watercourses wend their way to the sea.

[Illustration:

  _Photograph by Underwood & Underwood_

  A Pack-train on the Andes Trail in Colombia

  “In the United States with every forwarding facility, the largest,
    best and most complete transportation systems on earth, we are prone
    to think of the rest of the world as being similarly provided with
    modern methods for handling goods. The fact is that the burro, the
    llama, the camel, the elephant, the coolie and the Indian are yet
    the greatest common carriers”
]

Many of the ports of Latin America are open roadsteads, such for
instance as Mollendo, Peru, one of the gateways to the interior of that
country and Bolivia as well. At certain seasons of the year it is almost
impossible for one to land and I have known of vessels to wait as long
as six weeks before getting their cargoes discharged into the rolling,
tossing lighters which continually thump and smash against the side of
the ship. After the lighters are loaded, they in turn have to wait days,
weeks and often months before a favorable opportunity arrives for
getting their contents ashore. Without being conversant with these
conditions one can hardly realize the strain and pressure exerted upon
packing cases at such times.

After the goods have been brought to land by the none too gentle
longshoremen, they are opened by the customs authorities and examined,
and are then placed upon trains for forwarding into the interior points,
for practically all these ports are the terminus of some railway leading
into the remote inland districts. When they have gone as far as the
train can take them, they are then consigned to the tender mercies of
the muleteer, aided and abetted by the llama, burro or mule, and may be
weeks on the road to their final destination.

The varying climatic changes to which they are subjected should also be
given due consideration. Leaving the ice-bound northern ports of the
States in winter, they come through the storm tossed waters of either or
both oceans to the port of disembarkation, where for days they may rest
under the broiling tropical sun. As they follow their path to the
interior, on train and by beast of burden, they pass through torrid heat
and tropical rains, across wind swept plateaus, through sand and snow
storms, sleet and hail, above the clouds in high altitudes, and down
into green valleys, across swollen streams, and on again up the sides of
steep canyons, and through gloomy woods. Each night they are unstrapped
from the animals’ backs, and roughly thrown on the ground along the
trail or in the filthy barnyard of some mountain hospice. Before the
stars have stopped their twinkling in the early dawn they are again
piled upon the backs of the unwilling, resisting beasts and the dreary,
wearying, monotonous march resumed.

Custom has decreed the exact weight each burro, llama or mule will carry
and let me add that these animals know to a nicety their load, and are
life members of a union that prohibits its initiates from carrying more
than is expected of them. Attempts to overload bring forth growls,
groans and moans, and if these signals of protestation are overlooked by
the attendants, the animal flatly refuses to budge, until the burden is
made the standard union size, a condition of affairs that must be
extremely satisfactory to the cause of labor.

The merchant living in the interior is always specific to state the
exact dimensions of each box and how he wishes it strapped and packed,
in accordance with the transportation which he will have available at
the time the goods arrive. Obviously a llama or burro cannot carry as
heavy a load as a mule, and the buyer, who generally owns his own pack
animals, gives his instructions in accordance with the nature and size
of the animals which will form his caravan. Extraordinarily heavy cases
may be carried suspended from poles between two mules.

[Illustration:

  _Copyright by Underwood & Underwood_

  Llamas in Cerro de Pasco, Peru, bringing in their burdens of copper
    ore from nearby Indian mines

  “Custom has decreed the exact weight each burro, llama or mule will
    carry, and let me add that these animals know to a nicety their
    load, and are life members of a union that prohibits its initiates
    from carrying more than is expected of them.”

  _See page 315_
]

Follow these shipping instructions to the letter. The man who makes them
out knows all about the difficulties that are to be overcome and is
familiar with every inch of the road that must be traveled. Do not let
the superior judgment of your shipping clerk alter one word of these
requirements. Near Durango, in Mexico, there lie practically all the
parts of a large plant, not made according to the instructions given the
man who took the order. In the draughting room of the shops which
constructed the machinery, they could not understand why the fly wheel
of the engine should be made in so many sections adapted to be bolted
together, and so they constructed it as if intended for shipment to
Buffalo, and not so that a mule might carry each component part on his
back. The entire order was executed in the same manner. As a result the
equipment they turned out is gradually resolving itself into iron oxide,
at the railway station nearest to the mine it was designed for, while
the people who purchased it are filled with contempt for American
methods and the American machinery company that received the business
has long since vowed never to accept another Latin American commission.

If the packing instructions read:—“Each case to be made of half-inch
pine boards, strapped with iron bands, half an inch wide around each
end, and wrapped first in waterproof paper, then sewn in burlap, and NOT
TO WEIGH more than 40 kilos (about 100 pounds)”—do exactly this and
NOTHING more.

The iron bands and the heavy wood of the packing case insure protection
against breakage during its ocean and railway voyage. The waterproof
paper will serve to keep the contents of the case from rain and snow
storms, to say nothing of preventing the spray of the ocean while it is
in the lighter, from damaging its contents. The burlap sewed over all is
a visible defense against theft en route, either by the customs
authorities or by the pack train men. The weight of 40 kilos means that
it may be strapped to the side of a burro, and form one of two such
packages to be carried by him. Furthermore the wood of the case being
half an inch wide, means that when the box reaches its destination, it
can be sold to the coffin maker for conversion into a baby’s casket,
because wood of this nature is scarce in many of these lands. The metal
strips will find another use and the waterproof paper and burlap
covering will serve some particular purpose, perhaps be sold to the
upholsterer.

Your shipping instructions will also tell you exactly what signs or
marks to put upon the outside of the case or its covering. Observe this
with precision. The net and gross weights must also be marked thereon in
a legible manner. Be sure that in weighing and marking the case you use
the metric system for this is the only one used through all of Latin
America. They know nothing of pounds and ounces. It is a wise plan to
have your shipping clerk familiarize himself with this method, so as to
avoid mistakes in marking, which may cause the importer much trouble at
the custom house when the goods arrive.

Never place anything of a foreign nature in a packing case unless
expressly instructed to do so by the shipper. Many exporters often take
advantage of a small space available in a box to enclose a package of
cards or some other advertising material. In most Latin American
countries it is against the law for a case to contain anything more than
what the bill of lading or the consular invoice expressly states, and
the trouble that ensues from this desire to really help the purchaser
can never be understood by those so far away from the native customs
official who seizes every opportunity to extort money from the local
dealer in the shape of fines and fees.

The merchant in ordering will generally definitely state just how he
wants the goods which you are shipping him declared, so as to properly
conform to the classification in vogue in the local custom house and its
tariff regulations. Here it again behooves you to follow his
instructions word for word, otherwise the officious custom house employe
sees another chance to levy a fine and the unfortunate importer becomes
correspondingly disgusted with your methods of doing business with him.

Finally, the packages should agree in number, weights, markings,
declarations and contents with the consular invoice and the bill of
lading. This will help materially all along the line from the receiving
clerk of the steamship company to the merchant who accepts the
consignment at its destination.

It would be well if shipping clerks engaged in the export trade would
make a careful study of the geography of the Latin American countries,
and the various ways of routing goods, as well as the topography of each
state. This would do much toward eliminating complications. As an
illustration of the ignorance so frequently displayed in this
connection, let me recite what happened to a joint shipment of beer and
mineral water, intended for Leon, Nicaragua. In ordering goods from this
country the Latin American merchant will often have a shipment made up
of goods from different cities. He will instruct or request the exporter
living at the port from which the shipment is to be made, to assemble
the several cases which make up his various orders, and send them under
one consular invoice, his idea being to save money, in the many
incidental charges made by consuls and those handling his freight. The
beer came from Milwaukee and the mineral water from the warehouse in New
York City. The shipping instructions read as follows:


  “Ship via Isthmus of Tehuantepec, to Salina Cruz then via first
  opportunity to Leon, Nicaragua.”


The intellectual shipping clerk could see no valid reason for sending
goods intended for Nicaragua through Mexico, so he took upon himself
their routing, and as a result the goods were sent direct from New York
to Bluefields, Nicaragua, on the east coast of that country, with
instructions to a forwarding agent there to dispatch them to their
destination on the west coast. That was three years ago and the last I
heard of them was that they had been sold by the customs authorities to
pay storage and other accumulated charges. Of course the forwarding
agent in Bluefields realized that it would be easier to send goods to
the North Pole than across the country, as he had been instructed, owing
to the fact that there was hardly a mountain trail over which they might
be transported. In addition to this it would take several weeks to make
the journey, and the expense would be enormous. These facts were
communicated to the shippers who promptly decided to abandon the goods,
replying that they did not care to do business in such an inaccessible
country. As a result of this colossal error goods to the value of more
than $2500 were lost to the exporter and the importer, and bad feeling
engendered on both sides. The speculator who bought them at the custom
house sale, told me that the contents of the bottles had deteriorated so
that the goods were unsaleable after their long stay in the tropical
warehouse, and as a result he was the possessor of a large quantity of
bottles for which he had no sale.

Shipments from the United States to a foreign country require what is
known as a consular invoice to accompany them. This document states
briefly the contents of the invoice, its weight, and value, from whom
and for whom intended. This paper must be made out before the consul or
vice-consul of the country to which the goods are to be exported, the
idea being to keep track of the business between the nations. This
document should always be in the language of the country for which the
shipment is intended, although all the consuls do not require this
condition to be rigidly complied with. They must be taken to the office
of the consul or vice-consul empowered to issue and sign them and as a
rule he requires one or more copies for his files and for forwarding to
his government, or to the customs authorities at the port to which the
goods are going. For this service he charges a fee, generally specified
by law. Great care should be exercised in the preparation of these
papers, as before intimated. The importer generally states just how he
wishes his goods declared in these documents and it is best to follow
his commands instead of those which may be issued or suggested by some
of the employes of the consular office, or even the consul himself.
Besides if you follow your shipping instructions there can be no cause
of complaint, on the part of the buyer, should unfavorable conditions
arise.

It might be well in order to impress upon the reader’s mind some of the
great difficulties to be overcome and the many handlings that are
received by goods in transit to follow in detail a shipment actually
made from New York City to La Paz, Bolivia, the route being the usual
one taken by merchandise intended for that place. The order was placed
in February, 1913, early in the month and the goods arrived December
22nd, 1913, being more than ten months on the way. When the American
salesman received the order at La Paz, it was immediately forwarded by
the next mail to New York City, where it arrived in about five weeks.
The shipment of 854 cases was made from the factory in the middle West
about the 15th of April, 1913, and the vessel containing them sailed
from New York harbor, May 1st, 1913. Exceptionally bad weather in the
Atlantic, delays in the Straits, storms in the southern Pacific, and
time lost in discharging cargo intended for intermediate ports made it
September 1st, before the goods reached Mollendo, in Peru, the port of
discharge for the interior. Here, owing to bad weather, Mollendo being
one of the worst ports on the Pacific, and the further fact that the
roads and custom house were both congested with freight, a common
occurrence in this part of the world, another month was consumed before
the cases were finally got ashore and passed by the Peruvian
authorities. A few more days were lost in loading them on the narrow
gauge railroad that runs from Mollendo to Arequipa, an inland city of
Peru, and the end of the first railway. Here the goods were
trans-shipped to the road running to Puno, Peru, on the shores of Lake
Titicaca, where they were again discharged and allowed to wait for many
days before their turn came to be stowed on the small steamer plying
across this perpetually storm-tossed lake in the clouds, to Guaqui,
where after being put ashore they were again examined by the Bolivian
customs officials. They were next placed on the train which took them
across the wind swept plateaus of Bolivia, to the edge of the tea-cup
rim, at the bottom of which La Paz is situated. Here again they were
transferred, this time to an electric train which took them down the
face of the canyon wall, 1500 feet, to the station at the outskirts of
La Paz. At this point Indian cargadores took the cases, one at a time,
on their backs and carried them to the merchant’s warehouse, where they
were again opened, and checked up, after which they were repacked and
sent on into the interior towns, mining camps and his branch stores, via
llama, burro and mule.

In this shipment there was nothing unusual. It went over the route
commonly selected and took about the average length of time. If you have
followed its many handlings by rough men, in all kinds of weather, you
will admit at once the necessity for strong packing cases and you will,
I am sure, cease to wonder why it takes goods intended for interior
cities so long to reach their goal.

A wise precaution, and one to be recommended for all shipments to Latin
America, is to insure them against theft en route. This may add a little
to the cost of the article, but it is the only protection against petty
pilfering. The fact is that the minor employes of the custom houses, as
well as the porters, trainmen and pack train attendants are so poorly
paid, and so completely lacking in honesty that there is every tendency
in the world to appropriate whatever appeals to their fancy. I have
known what should have been cases of toilet soap to arrive at their
destination, filled with scrap-iron, so as not to attract suspicion by
their weight, and this after duty had been collected at the custom house
and freight paid by the shipper. Unless there is an insurance against
these depredations one has absolutely no protection, for it is
practically impossible to prove where and by whom the theft was
committed. Furthermore if a conviction were obtained it would mean that
in future all goods bearing your particular shipping mark would be
forever doomed to trouble.

I am always forced to laugh when I think of the experience of a
traveller for a well-known baking company in the United States who was
making his initial trip to South America. The port at which he landed
was, as it generally is, the scene of a yellow fever epidemic. Fearful
of contracting this disease he decided to take the first train for the
capital, located in the mountains and as a rule free from the scourge
which infests the port. Inasmuch as the train left early, he deposited
his twelve sample cases at the custom house with the keys and the
request that after they had been inspected one of the men whom he had
tipped should send them by the evening train to his hotel. After waiting
for three days without receiving the trunks, during which time he
frequently sent telephonic messages to the customs authorities and
telegraphed and wrote the United States consul on the subject, he
decided to go in person, despite his fear of contracting fever, and
secure his samples. You may imagine his surprise on reaching his cases
to find every one empty—the cakes and biscuits and dainties had been
eaten by the customs employes. Of course it was impossible to place the
blame on any one, and his loud demands for redress resulted in the
police escorting him to the railway station and threatening to arrest
him if he persisted in continuing his demonstrations. His cable to the
house,

“Samples eaten by the customs authorities. Send duplicates,”

confirmed the belief of his employers that he had gone suddenly insane
and brought this brief reply:—

“Return immediately.”

As far as I know, this big company have made no further efforts to enter
these really profitable fields, which are still dominated by English
cracker and biscuit concerns. I trust that the moral will be patent to
my readers that it pays to keep close to your sample cases and never
trust them with unreliable or unknown natives.




                                 XXVII
                              ADVERTISING


Advertising is in its infancy in all parts of Latin America. It has been
given neither thought, study or attention, by the native, and where some
particular article has made a “hit” or developed into a profitable
seller through publicity, the chances are that the campaign was
conducted by some foreigner more or less familiar with modern methods.
Thousands of dollars are yearly wasted by inexperienced persons in
trying to market goods along erroneous lines.

The great thing which militates against successful work in this field is
the enormous percentage of illiteracy—some authorities placing it as
high as 85 per cent. Chile admits that 49 per cent. of her citizens
cannot read or write; Argentine 54 per cent.; Cuba 56 per cent.; Mexico
75 per cent.; Brazil 85 per cent. and Guatemala 92 per cent. This
condition is easily conceivable when we stop to consider the scarcity of
either public or private schools, and the large percentage of
aborigines, Indians, negroes and mixed breed population, especially in
the northern countries of South America, as well as in Central America,
Mexico and the Spanish-speaking West Indies.

How to reach this class, each member of which is a potential possibility
from a purchasing point of view, is a problem requiring much
consideration. Bright colors attract them and posters and cards
illustrating your article, and showing its application and
practicability have their value. Such souvenirs are never thrown away
but are preserved for years. If any member of the village can read he is
asked to transcribe the printing on the medium, and this will in all
probability form the subject for much discussion so that ultimately
everybody becomes acquainted with whatever may be thereon related or
depicted, thereby fulfilling the mission for which it was intended.

To advertise a luxury to the uneducated classes is a waste of money, for
they have neither the means nor the desire to indulge in such
extravagances. Very naturally the great demand among these people, as it
is among persons of this class elsewhere, is for the necessities of
life—cotton goods, textiles, patent medicines, shoes, farming
implements, hardware, machinery, tools and the like. These are the
things required by the farmer and the laborer who make up the greater
proportion of the world’s population, and perhaps the very best way to
reach them is through the influence of the middle man, the jobber and
the local storekeeper. Of these three, the village merchant is by far
the most important with the masses. He is always a man of standing in
his community. He is invariably respected and looked up to. His word
among many amounts to law—his judgment final. He is the moneyed man of
the neighborhood. He carries the peons on his books—helps them along in
hard times, and when crops are short—extends credit when he thinks it
wise to do so and curtails it when proper. He is therefore in a position
to force on this great class of the people whatever he wishes. I recall
one of these typical country merchants telling me that practically every
man in the neighborhood owed him money and that therefore he had them
all in his power, so that he could tell them just what he wished them to
do or buy or be closed out. The control held by such a man in these
remote communities is far-reaching and conclusive. It is quite obvious
that the proletariat may be reached through direct appeal to him. He
usually takes the local papers, and those published in his immediate
vicinity, and is certain to subscribe to one or more of the leading
metropolitan dailies, so as to keep in touch with the markets and
shipping conditions. He knows almost to a ton what this year’s crop will
amount to; what the output of the neighboring mines will be; how much
rubber will come from up country; if wool will bring a high price, or if
cattle will be lower than last year, and is generally an all around
encyclopaedia of useful information on every local subject. The course
to pursue is obvious—advertise in the papers he takes, and at the same
time cultivate his friendship. Get to know him personally and
intimately, and seek to do him favors when the opportunity offers.

The educated and better class of people demand all the luxuries and the
nicer things that the markets of the world afford. In addition to their
native language, they have been taught to speak French and most of them
use this idiom as frequently as they do their mother tongue and have
perhaps at various times in their careers lived in the capitals of
Europe. Their tastes are most modern. They demand the best and have the
money to pay for it. Obviously it is a comparatively simple problem to
reach this class. In each Latin American country are to be found
numerous weeklies and monthlies, most of which are well got up
typographically and profusely illustrated, which are an excellent medium
for placing one in direct touch with this desirable portion of the
purchasing public. They also take the leading metropolitan dailies and
these papers are very effective in bringing to their attention articles
which they may desire.

Sign boards are beginning to be well thought of and are making their
appearance throughout the larger cities. Posters, well executed, but in
glaring colors, and if possible displaying a portion of a nude female
always attract universal attention and for many lines are excellent
mediums. Some of the countries charge an internal revenue tax on all
sign boards, posters, placards and street announcements proportionate to
their size. Before undertaking a campaign requiring the use of this
class of material, it is therefore well to ascertain what this fee will
amount to and arrange for its payment. In some cities the hoardings are
sold for a period of years, to the highest bidder, who in turn rents
them to the user for a specified time. These spaces are often the
property of the municipality which contracts directly with the user for
them. In Buenos Aires these stands are so highly thought of that they
are often leased years in advance.

Moving picture theatres abound in the larger cities as they do with us.
Between films it is the custom to run advertisements which are thrown on
the screen for a few minutes. This is a rather cheap and practical means
of announcing one’s wares, inasmuch as it reaches a good class of
people.

Street cars are used as extensively as in the United States, and are
worthy of serious consideration in conducting an elaborate advertising
campaign. Not only are the inside spaces in the car for sale, but in
many cities the spaces outside both above and below the windows and the
front and rear dashboards are effectively used.

Electric signs are as yet comparatively unknown. Some of the larger
cities such as Rio de Janeiro and Buenos Aires have a few but they are
the exception to the general rule. The streets are usually so narrow
that good locations for display purposes are difficult to find. This
condition will be overcome in time, in many of the metropolitan towns,
with the advent of municipal improvements, the broadening of streets and
the laying out of modern avenues. Another element which militates
against the universal use of the “flash” sign is the fact that they are
apt to get out of order and mechanics experienced enough to repair and
keep them in operative condition are not numerous in these localities.
It therefore follows that for some years to come, the fixed electric
sign would be the more ideal for this section of the world.

I doubt if any business house in any part of Latin America is really
familiar with the value of the follow-up letter system such as we use so
satisfactorily in the United States. I am certain that its introduction
and regular use will be found profitable in developing any line of
trade, especially when intended for those who in the course of a year
receive comparatively little correspondence.

With regard to advertising rates the Latin American publisher is
becoming more consistent of late. Time was when he asked $600.00 a year
and took $60.00. To-day he keeps closer to an established price,
although diplomacy and politeness can accomplish much toward a generous
reduction on his first quotation. Local dealers always are given a far
better rate than foreigners and before doing business with a paper it is
highly advisable to find out by some means the price paid by the larger
business houses of the place. This will serve you as a guide in
determining what to pay for your space. It is always customary to run
little “readers” in the columns especially if you have contracted for
much advertising, and as these cost nothing, it is well to provide
appropriate manuscript for them and insist upon its being used.

Local copy in many sections of Latin America is far from our idea of
what it should be and may appear a bit startling to our notions of
propriety. In Peru, there is a mineral water known as “Jesus Water,” the
labels on the bottle, the colored posters and other advertising showing
Christ at the spring.

A cognac company uses cuts, posters and large signs depicting the
Saviour in the act of pouring out a glass of brandy and saying to
Lazarus, lying in a coffin at his feet, “Lazarus, arise and take a glass
of Cognac Bisquit.” I have seen this announcement in colors on the back
page of the leading illustrated weekly.

“You Furnish the Corpse and Do the Mourning—We Do the Rest,” is the
ingenious slogan announcing the advertisement of an undertaking firm.
Let me add that such advertisements are not considered sacrilegious or
brutal, but simply show how primitive conditions are in these fields.

Doctors advertise patients and patients advertise doctors in these
favored lands of the sun. This is considered perfectly ethical and adds
to rather than detracts from the reputation of both parties. I recall a
picture in halftones in the leading weekly of South America showing the
photographs of a physician and his patient, a well known lady of the
city. Grouped between the two were reproductions of forty-eight stones
alleged to have been removed from the sufferer. Pictures of amputations
are shown in detail, with lifelike illustrations of the surgeon.
Executions are also minutely depicted. I mention these facts in order
that a more complete insight may be gained as to the advertising
disposition and temperament of the public.

[Illustration:

  Chilean Infantry

  “To see some of these troops march past with their peculiar knapsack,
    their goose-step and the pickelhaub helmet, makes one feel that one
    is in Germany.”

  _See page 220_
]

[Illustration:

  De venta en los buenos establecimientos

  “Local copy in many sections of Latin America is far from our idea of
    what it should be and may appear a bit startling to our ideas of
    propriety.... A cognac company uses cuts, posters and large signs
    depicting the Saviour in the act of pouring out a glass of brandy
    and saying to Lazarus lying in a coffin at his feet, ‘Lazarus, arise
    and take a glass of cognac!’”

  _See page 339_
]

Position in the greater number of papers is an unknown quantity and its
value little understood or appreciated. Those connected with the journal
positively do not realize its importance. Even if a definite location is
contracted for in your agreement you need not be surprised if the
advertisement appears anywhere on any page. This is not done to
antagonize you, but is due to the fact above mentioned. Attempts to
deduct for wrong position in making payments generally start all kinds
of trouble and result in caustic editorial comments. Here as in all
things in Latin America, friendship counts, and if you have taken the
precaution to get on the right side of the editor and the make-up man,
you can have your choice of positions. I know of a representative who
was advertising a well known American mineral water in South America
three years ago. One of the dailies in which he was doing much display
work had just added a new two-color press to its equipment and as he was
very intimate with the editor the advertisement appeared in red ink for
a long time in the center of the front page along with the foreign
telegraphic news, columns being broken for the purpose. No extra charge
was made for the service and the owner of the sheet felt that he had
done nothing more than exhibit his high regard for the gentleman from
the North.

Before preparing your copy for Latin America it is well to study all
these conditions and see wherein you can take advantage of them for
there is no denying that peculiar opportunities exist which if profited
by may mean for you and your firm success in this territory.

Once you have decided upon your copy and the size of the space you
intend using, it is advisable to have electro cuts made. This saves time
and insures for your advertisement a uniformity of text and type which
cannot be guaranteed if the same is to be set up in the office of the
paper for each issue. When these electros are to be used in rotation
they should be numbered and printed instructions for the foreman should
accompany them.

[Illustration:

  South American appreciation of advertisements “made in U.S.A.”

  “They recognize Americans as the best advertisers in the world and not
    being familiar with English appropriate and use our illustrations
    irrespective of the fact that they have absolutely no bearing on
    what they are advertising.”

  _See page 343_
]

Plagiarism is rampant. They recognize Americans as the best advertisers
in the world and not being familiar with English appropriate and use our
illustrations irrespective of the fact that they may have absolutely no
bearing on what they are advocating.

Typical of this purloining I recall a well known picture from an
American cereal advertisement showing two men seated in a dining car,
eating breakfast food. Outside snow is all over the ground and trees;
“Smoke El Toro Cigar” is the announcement beneath the sketch and in no
place does a cigar appear or is any reference made to one. Whoever
selected this picture did not even have the good judgment to modify the
same to the extent of cutting out the snow storm, in a land where snow
is unknown or eliminating the raised spoons piled high with the cereal
and held in the hands of the travelers.

The full page advertisements of Pillsbury’s Flour were bodily
appropriated and used by a local cement manufacturing concern. The fact
that they also put up cement in bags seemed enough to warrant them in
using this copy, although the picture of the cook surrounded by the
paraphernalia of his office was not altered in the least.




                                 XXVIII
                              RECIPROCITY


Foreign trade to be permanent should be established on a reciprocal
basis. To expect to ship a nation your raw or manufactured materials,
receiving only in exchange therefor a monetary consideration, is neither
equitable, sensible nor practical. It is decidedly lacking in business
judgment and reflects on the sincerity of the country endeavoring to do
its trade along such lines.

Perhaps the chief reason that European Powers have obtained such a
foothold in foreign markets is due to the fact that they take in
exchange much of the crude exports of these lands and convert them into
finished factory products. This from an economic standpoint is as it
should be. It gives employment to the citizens of the importing nations,
develops and maintains their merchant marine, necessitates less material
movements in the medium of exchange in payment for goods on the part of
those concerned in the transaction and more firmly entrenches each in
the other’s business and friendly relations.

The various countries comprising Latin America are in no sense
manufacturing ones. They possess few if any factories or plants and
these are usually devoted to the perfection of some local necessity,
such as wines, cigarettes, cigars, soap, sugar, and other articles for
personal use or consumption. They are however the largest producers of
raw materials the world knows. Due to our shortsightedness as a nation,
we have allowed the European merchant and manufacturer to take these
products from Nature’s laboratory, elaborate the finished article
therefrom and during each stage of its perfection, from its origin to
its completion, we have paid a profit, not to one, but to several
enterprising foreigners.

The Latin Americans—in fact no nation—will buy from us for sheer love or
their high regard for us as a people, or even from dire necessity for
that matter. Most of these countries achieved their independence from
Spain because they refused to be further exploited by the mother
country. It behooves us as modern and liberal minded, wide-awake
business men, to develop our trade in these territories so that our
exports to each country will be paid for by the things which we import
from it. This is not a difficult problem to solve, especially as at the
present time our imports from them exceed the value of our exports to
them by approximately $100,000,000 yearly. This sum should represent the
amount of trade expansion with the United States these countries will be
in a position to stand on a reciprocal basis.

Another feature in this connection which has developed since the
beginning of the present war is the monetary situation in Latin America.
These countries as the world knows were borrowing nations, and
practically dependent upon Europe for all of their financing. To-day
Europe cannot aid them in this respect and they have turned toward us
for assistance, thereby placing us in a much more advantageous position
than we formerly occupied with relation to developing our trade along
reciprocal lines, for a lending nation can always dictate to the
borrowing one.

Following the stringency in the European money markets and their
inability to lend further financial aid to Latin American enterprises,
there has been a decided slump in property values of all kinds, thereby
giving the American investor desirous of entering these fields an
excellent opportunity to acquire controlling interests at the minimum
expense in undertakings which will ultimately rehabilitate themselves as
money making propositions. These conditions should not be lost sight of
during the readjustment of values in this part of the world.

To be more specific, perhaps 80 per cent. of the world’s supply of
bismuth comes from Peru. This metal is largely used in the arts and
medicine. An Italian company owns practically all the mines. Germans and
English buy the ore and ship it to their respective clients in Europe.
On its arrival it is sold to smelters which produce the metal therefrom.
Manufacturing chemists purchase this and convert it into the bismuth
subnitrate used so extensively by the physician of to-day. This product
is imported by the American drug broker who sells it to the jobber,
whose traveller in turn disposes of it to the wholesale chemist through
whom it reaches the local druggist and finally the consumer. It is safe
to say that fully 30 per cent. of the prescriptions written by the
doctor and compounded by the apothecary call for this drug. If the metal
is to be used in the arts it goes through as many hands before reaching
the ultimate user. It is not difficult therefore to see that from the
mine to the consumer there are six or seven profits made, several of
which might be eliminated, thereby reducing the cost of the article,
provided the ore was brought direct to this country and the reduction
made here. Furthermore instead of going around the Horn to Europe, the
freight through the Panama Canal to an American port would be much less,
consequently effecting a great initial saving. Why does not some
manufacturing chemical house take advantage of this opportunity?

This same condition of affairs is true of cinconah, from which quinine
is made, iodine, opium, belladona, menthol, castor oil, licorice,
linseed and many other extensively used and well known drugs. What a
chance exists in this field alone to establish a reciprocal trade, and
at the same time to reduce the high cost of these medicines!

Last year Bolivia sent to Germany and England 50,000 tons of tin. We
bought back 30,000 tons of this tin from the wide-awake Teuton and
Anglo-Saxon merchants, or expressed in figures we contributed more than
$16,000,000 to the bank accounts of these gentlemen. We are the largest
users of tin in the world and Bolivia is the second largest tin
producing country, with thousands of acres of unexploited tin fields yet
to be developed. It is about two-thirds as far again from Bolivia to
Europe as it is to the United States. With proper shipping facilities
and the use of the Canal or by going to California, the saving in
freight alone should be sufficient to interest some progressive concern
in the handling of this article direct.

Europe sends its wool buyers to Argentine and Uruguay. I have attended
these markets and have yet to meet an American buyer representing any of
our woolen cloth manufacturers. We buy much of our wool from European
markets, thereby giving Belgians, French, English and Germans who have
initiative and enterprise a profit on their business acumen. Is this
sensible? It only adds to what each one of us pays for our clothes.

Ecuador’s chief product is cocoa. It is the largest grower of this
commodity in the world. The bean is perhaps the richest and most highly
flavored and is in great demand in the trade. Europe buys 80 per cent.
of this article and although we are the biggest individual users of
chocolate on earth, our merchants purchase but 20 per cent. direct. Then
England and Germany, and even little Switzerland, turn around and sell
us back—at a profit of course—fifty per cent. of what they bought in
Ecuador. And we call ourselves merchants! Who exhibits the good judgment
in such a transaction?

The linseed of the world is produced by Argentine and India. The small
farmer trades it for supplies to the village merchant, who in turn
exchanges it for goods with the jobber in the capital or seaport. To
these men come the buyers for the Greek firm which practically controls
this industry and purchase the seed, and we, the most extensive users of
linseed oil in the world, pay our toll and tribute to the able and
shrewd men who have their headquarters in Athens. Isn’t there something
radically wrong here?

The alpaca gives a fine soft wool. Practically all of this material is
bought in Bolivia by Europeans who manufacture the cloth which they
afterwards sell us. I cannot understand why some sagacious American has
not entered this profitable market.

The seasons in the southern part of South America are reversed, so that
they have summer when we have winter, which means that their fruits and
vegetables, melons and berries are ripe when we have snow on the ground.
The apples, peaches, pears, plums, apricots, nectarines, cherries,
grapes and melons of Chile are as good as our own. A profitable return
awaits the one who will forward these goods in refrigerator ships to our
big northern markets.

In Colombia and Ecuador large quantities of _tagua_ or ivory nuts
formerly grew wild. They are about the size of a goose egg, or slightly
larger, very hard and a dead white, protected by a thin black skin. For
years no one knew what to do with them. Finally an enterprising German
found that they could be converted into buttons. To-day the ivory nut is
cultivated for this purpose, and forms one of the leading exports from
the countries named; the shipments for 1913 amounted to over $5,000,000.
The finished button is sold not only to the Latin Americans, but
throughout the world as well.

Brazil is the second largest diamond producing country in the world.
English companies have $50,000,000 invested in these mines, which means
that the diamonds obtained therefrom pass through the hands of several
Europeans before they ultimately reach the wearer in the United States.
One State of Brazil—Minas Geraes—has for the past six years been
exporting gold to Europe, sometimes as much as $2,000,000 a month,
because Germans, Belgians and Englishmen own the mines.

Chile contains the largest known deposits of “caliche”—that is, the
earthy material from which nitrate is made. This article is extensively
used in the arts, in the production of gunpowder and other high
explosives and also as a fertilizer. Last year she exported 50,781,241
quintals, the world’s total consumption for the same period of time
being 51,296,489 quintals. I know of but one American house established
in these fields. The business is controlled almost entirely by English
and German companies.

We should also make a more determined effort to finance municipal and
national improvements in these countries. The money lenders of Europe
have been quick to take advantage of such opportunities. They proved
good investments for them. We should also find them profitable, under
the right conditions. In this field there are and will be for years to
come great possibilities, especially in electric and gas plants,
electric and steam roads, water works, sewers, and sanitations, mines
and smelters. The benefits to be derived from such a source of
investment are only too obvious. They give our engineers and contractors
and all connected with such an enterprise an opportunity to force upon
these countries our products and methods, provide permanent employment
for many of our countrymen, who in return will create a demand for goods
made in America. England leads the world in outside investments of this
nature, having over $10,000,000,000 in various foreign lands,
$5,000,000,000 of which is in Latin America. The German long ago saw the
advantage of following in the footsteps of the Briton and is the second
largest investor in such enterprises abroad.

International bankers when making loans to private persons or
governments interested in these progressive movements always stipulated
that the materials to be used should be purchased from the country which
furnished the money for the development. This was a fair and far-seeing
business proposition and should serve as a guide for us in our future
dealings with these markets.

Chile to-day is spending $400,000,000 on harbor improvements and
fortifications, most of the work being in the hands of Europeans. The
plans contemplated will require many years to complete, and during all
this time European material will be used and workmen from the Old World
will derive profit from the undertaking.

An American first had the concession to build the subway in Buenos
Aires. He spent months trying to get capital in the United States
without success. Finally a German raised the money in Hamburg and now
everything about the line from the electrical installation to the
motorman and his uniform is “Made in Germany.” Being the first and only
underground road in Latin America it was written about and talked of
everywhere, and at all times the Germans got credit for the enterprise
and were well advertised as efficient and wonderful engineers. This was
another opportunity lost to us.

Before the European War started a syndicate of English, French and
Germans had agreed to expend $200,000,000 in Colombia building railways
and in making the Magdalena River, the only highway to the capital at
Bogota, navigable at all seasons of the year. Due to present hostilities
they had to abandon the project. The terms offered by Colombia were
excellent, including 5 per cent. interest on the capital and the further
provision that the government would ultimately within a specified period
take over the road, paying an exceptional profit to the original
investors. Here is an excellent opportunity for American capital to
develop a reciprocal market.

One of the chief reasons for the scarcity of invested American capital
in Latin America is the indefinite and indifferent attitude of our State
Department in failing to protect its citizens abroad or in seeking
redress for injuries done individuals or business conducted in these
countries.

No race of men are as enterprising or venturesome or more truly pioneers
in every sense of the word than we Americans. This trait is a natural
inheritance from our forefathers, who left comparatively civilized and
comfortable Europe to gain a livelihood in the wilds of unknown and
unexplored America. We are a practical people, also, and when through
years of trying experiences we became definitely impressed with the fact
that in our foreign ventures we had neither the co-operation nor the
protection of our government, very naturally we abandoned these tempting
fields of business and allowed them to be profitably tilled by the
citizens of European governments which sympathized with their subjects
in their efforts to develop trade and at the same time provided them
adequate protection of a substantial and impressive type.

In the early days which marked the European campaign for the commercial
supremacy of Latin America, most of these countries were the scenes of
much bloodshed and the violence of devastating revolutions. As a result
of the instability of their governments, there was positively little or
no security of life or property. Concessions solemnly made were
ruthlessly cancelled. Business ventures involving the outlay of immense
patience and large capital were completely wiped out. In brief the
foreigner in these lands was looked upon as an intruder and treated with
scant consideration. When Americans were involved in such occurrences,
our State Department, with very few exceptions, ignored the petitions of
the victims, until its neglect in this regard became so notorious that
finally no promoter had the temerity to seek capital in this country for
any Latin American enterprise. This condition of affairs had much to do
with turning the current of these ventures toward European money
markets, an opportunity eagerly accepted by all parties.

On the other hand, the European, whether prospecting in the snow-topped
mountains or uplands of Bolivia, or in the jungles of the Amazon, knew
that his government kept a watchful eye on him and encouraged his every
effort, first because this was the privilege and duty of a government
and secondly the success of the individual in these lands ultimately
meant prosperity for the nation. If he was robbed, imprisoned or
murdered, if the result of his years of labor was destroyed in national
or local uprisings, the warship would always materialize to emphasize
the collection of compensation when diplomacy failed.

Such consideration for their people on the part of the European
governments duly impressed the Latin American mind, and more so
especially when he was heavily taxed to reimburse the foreigner for
injuries received. As a result the European became respected more and
more from Mexico to Patagonia, and was allowed to pursue his way in
comparative peace, the converse of this proposition being true of the
unfortunate American, who could not expect governmental protection and
who became the object of much abuse and ridicule in these lands. The
truth of these statements is so obvious that it is unnecessary for me to
cite any illustrations in support of them.

Socially speaking all of Latin America may be divided into two general
classes, the politician and the business man. As a rule the “politico”
has been the cause of all the unrest and upheavals these countries have
experienced, while the advance and progress of these nations is due to
the “commerciante”—the man who uses his brain and invests his money in
its various ventures. The larger progressive enterprises in Spanish
America—the building of railroads, the developing of mines, exporting,
importing, in brief, commerce as a whole—is chiefly carried on by
foreigners, aided by a few ambitious, practical, far-seeing, native
business men, never the politician. Commerce is a great civilizing
agency. The higher in the scale of civilization a people are, the more
secure will trade relations with them be. The larger and more important
countries of Latin America have at last begun to realize that internal
peace means prosperity, that prosperity attracts, yes invites capital,
even from the timid and those whose government does not stand behind
them in a dignified manner.

As a consequence, despite the unfavorable attitude of the United States
State Department toward foreign investment, and with the idea of showing
our Latin American friends that we are sincerely interested in
establishing our trade relations with them on a reciprocal basis,
American capital in large sums is beginning to find its way into this
hitherto, for us, closed market. Panama has just been loaned $3,000,000
American money to be used in the construction of railways and roads,
thereby bringing the producer nearer to the markets and the shipping
points of the country. Within five years I venture to predict that as a
result of this investment, our trade with Panama will have materially
increased, owing to the fact that agricultural products heretofore
prevented from reaching the consumer will be able to do so with
comparative ease, especially in the case of tropical fruits, cocoanuts,
copra and sugar.

American bankers have loaned the Argentine Government $15,000,000 in 6
per cent. gold notes. The temperament of the public as to the
attractiveness of the loan may be readily estimated when I state that
the entire amount of securities to cover the indebtedness was sold
before four o’clock of the day on which they were offered. The
successful consummation of this business—the first ever concluded
directly between the Argentine Government and the bankers of this
country—will serve greatly to strengthen the “entente cordiale” now so
rapidly developing between the United States and the rest of Latin
America.

Nor is this all. Movements are now on foot leading to investments of
American capital in large sums in practically all of our sister
republics. With each step in this direction we as a nation, and also our
manufacturers and merchants, become more firmly entrenched in the Latin
American commercial world, and our mercantile supremacy in these lands
is more positively assured.

As a typical illustration of what can be done in these countries when
the subject is handled intelligently let me mention the case of the
United Fruit Company, which operates in Colombia, Cuba, and practically
all of Central America. Starting in 1870 with a small beginning, this
organization is now one of the most solid to be found anywhere in the
world. In Costa Rica alone they have invested over $19,000,000 in
bananas, while enormous sums are also being expended in other countries
in sugar, coffee, cocoa, cocoanuts, the development of mines and the
building of railroads and hotels. In fact the prosperity of all these
nations is directly due to the presence of this great organization,
which finds a market for its products in Europe and the United States,
and which through its various local branches and stores, as well as its
numerous employes, is a potent factor in introducing American goods and
American ideas to all with whom it comes in contact. Its large fleet of
ships come to all the leading seaports of this country, and the vast
trade which it now controls, and which is still in its infancy, is
capable of enormous growth. As one example of what its business means in
freight alone, I may state that from the port of New Orleans this
company shipped, last year, nearly 150,000 car-loads of bananas to the
West and Middle West. The model hospitals which it has installed in each
of the countries in which it operates for the free treatment of its
servants have caused our physicians to be highly respected throughout
this portion of Central and South America, and as a consequence the
native now comes to the United States for serious surgical operations
and medical treatment, instead of to Europe as formerly. Further than
this, the intimate association bound to result from so many Americans
living in Latin American communities has tended to develop in each due
respect for the ability and integrity of the other, and this has been
beneficial to all parties concerned.

It is to be hoped that all the countries of Latin America will take
advantage of the disposition so apparent on the part of our financiers
to extend external credits among them and that every effort will be used
by those in power to establish lasting internal peace and a guarantee of
protection against unwarranted attacks on foreign capital. Such an
assurance will do much to develop the commercial side of these really
wonderfully productive lands.

Is it not the duty of our State Department to assist such a movement by
giving capitalists and merchants of this country its positive and
definite assurance that legitimate investors and investments will be
efficiently and effectively protected by the United States Government,
along the same lines as those in general use by the European powers?
Such an edict on the part of the United States would remove the last
great barrier to American trade development in Latin America.




                                  XXIX
                           HEALTH PRECAUTIONS


Travel in Latin America can be made comparatively safe, from a medical
point of view, by the strict observance of a few common sense
precautions. Perhaps the first thing to be considered is the question of
water. With but one or two exceptions, drinking water is notoriously bad
in all of these countries, being polluted and almost certain, if drunk,
to develop, sooner or later, either typhoid or some other intestinal
disorder. Credence should not be placed in the well-intentioned
statement of the native that the water is good. Like their ancestors,
through the continual drinking of the local water, they have become
self-immunized to any form of contagion from its use. Because the water
comes from snow-clad mountains does not insure its purity, either. Most
mountain streams, long before they reach reservoirs, are used for
washing clothes or bathing and become infected in this manner. It is
obviously out of the question to boil all water prior to drinking and if
you are obliged to take many trips to the interior or off the beaten
paths of travel, bottled mineral waters are not always obtainable.
Therefore it is wise for the purposes of such excursions to carry any of
the well-known makes of pocket filter, which come especially made for
such purposes. Let me take advantage of this opportunity to correct the
erroneous idea entertained by so many of the laity that locally made
aerated mineral waters are free from bacteria. They should be shunned as
much as the local unboiled water. The best thing to do if you are going
to these countries, is to have your system rendered immune to the
typhoid bacillus, by having your family physician give you the
anti-typhoid vaccination, such as is used in the American army and navy.
There is but little inconvenience attending its administration and you
can rest assured that after taking the treatment you will not contract
typhoid fever. Drink bottled mineral water when possible. Its purity is
certain to eliminate tendencies to either stomachic or intestinal
troubles.

[Illustration:

  _Photograph by Underwood & Underwood_

  The Plaza Hotel in Buenos Aires
]

Pineapples, berries, melons or green uncooked vegetables such as
radishes, cucumbers, onions, water-cress, lettuce, salad and the like
should be avoided for the same reasons. Truck gardens wherein they are
grown mostly use dirty water for irrigation purposes. Even the native is
aware of this practice among many gardeners and I recall one man whose
farm on the outskirts of a large South American city bears this
announcement:—

  “The vegetables from this place are not irrigated with water from the
  sewers.”

Cholera, a rare visitor to these lands, need not be feared, if you are
careful in your diet and drinking water. Green vegetables, berries,
melons, and fruits should be avoided in the event of an epidemic and
only cooked vegetables eaten.

There is much small-pox, especially in communities where there is a
large percentage of Indian population, but this need not be a cause for
worry if one is vaccinated. A popular South American hotel, having had
many cases of this disease among its patrons, has hanging in each room
this sign:—

                 “Rooms disinfected when guests leave,”

in order to inspire confidence in its new clients. This sign might have
as a companion, another one displayed in a leading Latin American hotel,
reading:—

  “Guests are requested not to spit through the mosquito netting.”

Yellow fever always exists in many of the towns of Ecuador, Colombia,
Venezuela, Brazil and most of the Mexican and Central American ports. It
is due to the bite of a certain species of mosquito. By observing
precautions, such as sleeping under a net and staying away from
districts known to breed these insects, the chances for contracting this
disease are materially minimized.

That bubonic plague is present in many localities cannot be denied.
Ecuador, Venezuela, Peru and Brazil have this disease more than any
other countries of South America. It is caused by the bite of a specific
flea. Daily baths have a tendency to wash away the germs deposited by
this insect.

For the purpose of keeping away fleas, mosquitoes and other pests it is
well to apply daily to the exposed portions of the body a solution of
equal parts of spirits of camphor and oil of citronella, a pint bottle
of which should form part of one’s traveling kit.

Leprosy need not be feared. My experience of several years in one of the
largest leprosy hospitals in the world, in a country with many lepers
among its inhabitants warrants me in saying positively that the
probabilities of a temporary resident contracting this disorder are
almost _nil_.

It is a wise precaution, for obvious reasons, when travelling in remote
districts to carry your own pillow, sheets and bed-clothes, a hammock
being preferable to a bed because more sanitary and easily conveyed.

Oranges, bananas, limes and the many other delicious tropical fruits
need not be feared. You will meet persons who will warn you against
them, but they do no harm when eaten in moderation.

Whiskey, wines and beer, especially in the warm climates are to be
eschewed. They heat the blood and are over-stimulating. Every doctor
will tell you that the possibilities of recovery from disease are always
against the person who uses alcohol, and nowhere in the world is the
truth of this more exemplified than in Latin America. In one hospital of
which I was in charge in one of these lands, out of 47 cases of yellow
fever, among foreigners, during an epidemic, 44 succumbed. Each man who
died was an extreme user of alcohol in some form. Of the three
recoveries one man was a teetotaler, the other two being occasional
drinkers.

The old doctor’s advice to keep your head cool, your feet warm and your
bowels normal in order to avoid sickness is as appropriate for Latin
America as for anywhere else.

A small medical case containing calomel, quinine, soda-mint tablets,
peroxide of hydrogen, a bandage, some aseptic gauze, and a packet of
absorbent cotton is all that is needed for a trip. Symptoms of any
disorder should not be ignored or made light of. If they persist be sure
to call in the very best physician available.




                                APPENDIX
    LATEST STATISTICS AVAILABLE IN 1915 ABOUT SOUTH AMERICAN IMPORTS


                               Argentine

    Articles.     From United From United     From        From        Total
                    States.     Kingdom.    Germany.     France.     Imports.
 Automobiles         $543,930     $430,530    $822,315  $2,252,835   $5,159,030
 Bagging               13,025    3,299,705      68,130       5,230    8,355,140
 Beams, iron           94,440       91,035   1,846,070     495,815    3,276,365
 Beverages             46,690      169,155     168,350     129,525    1,149,360
 Binder twine       2,729,950       10,655       5,835       8,760    2,765,130
 Books and
   pamphlets           30,515      462,520      58,015     154,900    1,254,810
 Book paper             7,395       61,275     947,850       2,900    1,154,760
 Brick, paving          8,375       98,520     153,625     109,400    1,055,840
 Bridge materials      66,905      776,810     110,240       3,265      997,670
 Carriages and
   cars,
   accessories
   and parts of        64,550      350,550     406,335     389,360    1,504,605
 Cement,
   hydraulic           13,545      640,520     258,135     752,880    3,989,340
 Cheese                             15,825       7,010      73,890    2,074,590
 Chemical and
   pharmaceutical
   products:
   Candles,
     stearin            1,700      272,460     104,675       9,520    1,094,570
   Medicinal
     preparations     340,680      153,065     206,685   1,154,280    2,191,620
   Perfumery           27,550      206,740      86,690   1,043,180    1,411,500
   All other        1,982,965    2,086,355   1,764,010   1,101,350    9,083,685
 Cigars                32,045       21,605      20,935       8,685    1,415,630
 Coal                 782,910   23,642,425     381,320               25,047,240
 Coffee                   585                    4,980       7,020    1,631,615
 Cotton and silk
   goods               10,635      430,995     275,395     518,345    1,447,725
 Cotton and
   woolen goods            75      682,520     303,845      76,075      251,842
 Cotton goods
   made up              8,200      157,340     497,315     430,635    1,186,140
 Cotton hose              750       22,000   1,101,325     223,015    1,407,220
 Cotton laces          $2,810     $559,200    $415,285    $123,525   $1,349,000
 Cotton tissues:
   White               21,305    4,099,620     133,420      77,075    4,813,065
   Unbleached
     (linen)           12,500      874,610       3,920       4,485    1,127,060
   Printed              1,605    2,610,395     460,140      68,935    3,693,435
   Dyed                 9,370    4,377,675     920,095     244,910   10,315,680
   Color not
     specified          3,015      534,595     170,910     121,190    1,059,655
 Cotton yarn:
   Colored              2,705      111,845     129,475      20,195    1,003,695
   Unbleached          70,735      326,310      52,430      46,420    1,508,790
 Cotton goods,
   all other          301,675    2,568,815   1,064,295     619,455    6,632,860
 Ducks                    550      493,600     162,180     156,150    1,156,655
 Dyes and colors      249,550      997,635     722,980     199,185    2,427,250
 Dynamos and
   motors,
   electric            28,545      219,935   1,212,775      42,385    1,637,755
 Electric and
   wire cable         102,885    1,205,515   1,227,695      96,465    3,087,700
 Furniture,
   wooden             587,060      513,055     308,515     489,640    2,668,230
 Glass and plain
   crystal             12,145      663,930     201,380      68,860    1,538,850
 Harvesting
   machines         1,948,165       46,200          14                2,712,855
 Household and
   cooking
   utensils.           52,450       89,910     741,430      95,940    1,210,210
 Iron and steel
   wire,
   galvanized:
   Smooth—
    Up to No. 14      638,990      249,100   1,027,250       1,500    2,015,735
    No. 15 and
     higher               625       53,430      13,590         465       75,945
   Barbed             635,030      106,320     137,085       2,825      926,250
   Twisted              3,599       16,485       3,410          27       25,300
 Iron and steel
   wire, not
   galvanized:
   Up to No. 14       408,200       16,495     213,970          75      720,060
   No. 15 and
     higher            19,645        2,905      15,975         175       41,395
 Iron and steel
   wire, plated
   (with bronze
   copper,
   nickel, or
   tin)                    79        5,750      27,630         307       35,605
 Iron axles and
   wheels              87,685    1,156,005       7,750                1,256,735
 Iron bars and
   sheets             408,135      656,150   2,489,430      80,800    6,288,590
 Iron, galvanized   1,398,165    4,088,950     381,955      24,985    6,160,145
 Iron, wrought        321,005    1,156,670     377,870      77,300    2,753,025
 Jewelry, fine,
   except watches
   and loose
   precious
   stones              15,885      180,215     769,525     620,660    1,849,545
 Leather and
   manufactures     1,283,105      758,510     688,340     792,230    3,766,540
 Locomotives                     1,847,135     293,845         627    2,188,660
 Machinery,
   general          1,119,225    2,022,795   2,572,365     459,975    6,939,140
 Machines, spare
   parts            1,132,290      684,510     692,340     119,950    2,909,925
 Malt                                           59,385                1,074,280
 Manufactures of
   copper and
   bronze             100,795      402,430     281,845     144,120    1,073,095
 Manufactures of
   stone, earth,
   glass, etc.        170,240      987,185   2,050,820     616,460    4,667,250
 Materials for
   port works             105      110,280      66,075      14,580      204,035
 Materials for
   sanitary works                  962,525      57,135       3,045    1,066,365
 Motors:
   Windmills,
     with or
     without
     framework,
     and pumps        372,580       13,980         555                  393,275
   Other various      631,820      316,015      85,765       6,800    1,142,485
 News print paper     727,970       85,595     603,725       7,735    1,610,380
 Oil:
   Lubricating      1,301,930      787,995      63,980      10,815    2,518,350
   Olive              146,075        3,645       5,240     143,525    4,748,915
   Kerosene         2,289,115          156                            2,289,275
   Naphtha,
     unrefined      5,495,150      126,010      75,895          43    5,710,755
 Pine, unplaned:
   White            1,728,450      140,350      11,773      23,160    2,130,015
   Pitch            8,078,590        3,880      29,170          30    8,164,720
   Spruce           1,662,050       76,925      50,635      14,065    3,689,605
 Pipes, iron:
   Galvanized         229,180      966,955      83,565       3,205    1,294,550
   Other               51,460      756,245     238,810      34,290    1,171,965
 Railway coaches      117,730    1,073,510                            1,191,240
 Railway
   couplings,
   steel              136,585      485,835     397,810       2,480    1,147,350
 Railway freight
   cars               558,855    2,650,155      74,190      16,095    3,812,510
 Railway
   materials          132,810    4,152,660     237,460      93,345    5,013,430
 Rice:
   Unhulled                         30,685                              286,055
   Hulled                              378      76,860       5,020    2,476,215
 Sand for
   building               115                                         1,024,380
 Sardines                 516       27,130      26,120      44,485    1,031,425
 Screws and nuts     $170,230     $401,675    $156,050    $183,830   $1,061,980
 Seeds:
   Alfalfa                             482     155,145      73,230      740,945
   Flax                 1,020                                  100        1,335
   Corn                   332                        1         100        1,115
   Wheat                1,175           39          48         265        7,630
   Other kinds         41,510       26,170     281,195     201,115    1,069,415
 Silk                     635      208,055     428,735   1,287,600    2,341,730
 Steel rails          737,685    2,226,600   1,343,315      17,290    5,088,405
 Spirits and
   cordials            12,070      462,545      44,365   1,685,810    3,183,410
 Sugar:
   Refined                             215     467,710     228,260      852,550
   Other                             1,669   1,110,785       1,575    1,117,385
 Tea                      230      306,100      18,930         374    1,072,030
 Tin plate,
   unworked           345,530      673,230           5          67    1,036,860
 Threshing
   machines with
   or without
   motor            1,182,175      179,385     119,385          97    1,517,030
 Tobacco dip           95,545    2,153,045       6,285         520    2,348,005
 Tobacco, leaf        378,260       19,495      82,675       4,615    3,485,160
 Tramway
   materials          107,725      506,110     599,020      20,920    1,688,460
 Watches:
   Gold                 2,270       15,420      64,010     209,035      593,300
   Other kinds        115,450       26,985     230,270     302,665    1,395,305
 Wines                  9,160       21,235      39,985   8,031,335    9,830,910
 Woolen goods:
   Made up              4,150      235,295     586,865     504,855    1,418,170
   Tissues, all
     wool               4,425    3,571,105   1,039,340     888,125    5,957,735
   Mixed                3,245    2,018,030     441,055     133,225    2,799,150
 Yerba, Brazilian                                                     4,946,085
 Imports by
   parcel post,
   etc.                 3,070      609,945     839,485     944,510    3,308,795
 All other
   articles        12,223,614   19,315,571  21,833,634  11,791,528   90,808,013
                  ———————————  ——————————— ——————————— ——————————— ————————————
      Total       $57,057,505 $114,515,800 $61,703,550 $36,301,925 $371,383,595


                                Bolivia

                                 IMPORTS

                          Articles.                            Value.
 Animals, live:
   Cattle                                                       $302,553
   Horses                                                        482,528
 Arms and ammunition                                             692,047
 Breadstuffs:
   Cereals                                                       111,462
   Pastes, alimentary                                             72,617
   Rice                                                          194,541
   Wheat flour                                                   857,148
 Candles                                                         366,220
 Cars and carriages:
   Railway cars                                                  272,219
   Other                                                         102,944
 Cement                                                          148,292
 Coal and briquettes                                             674,512
 Cotton manufactures, not mixed with other material            1,684,088
 Earthenware, tiles, and piping of, and porcelain                151,840
 Explosives, including  powder                                   452,490
 Fish, fresh, including shellfish                                125,027
 Fruits                                                          100,636
 Gold, coined                                                    107,082
 Hats                                                            447,937
 Hides and skins, manufactures of                                118,023
 Instruments, musical and scientific                             107,238
 Iron and steel and manufactures:
   Beaten, drawn, and in sheets                                  348,456
   Machinery and apparatus:
    Electric                                                     339,731
    Mining                                                       446,881
    Other and parts                                              633,095
   Tools                                                         225,340
   Iron manufacturers                                          2,046,497
 Jewelry:
   Genuine (of precious metals)                                  105,702
   Other                                                         104,271
 Leather boots and shoes                                         155,088
 Medicines, prepared                                             154,297
 Oils, mineral, and products                                      86,315
 Paints, colors, and varnishes                                    99,604
 Paper and manufactures                                          386,503
 Soap                                                             97,209
 Spirits, wines, and malt liquors:
   Beer, cider, and “chicha”                                      80,160
   Spirituous liquors                                            644,226
   Wines                                                         380,603
 Sugar, refined                                                1,195,665
 Textile manufactures:
   Laces, embroideries, and trimmings                            188,666
   Knitted goods                                                 174,418
 Wearing apparel, ready-made, except waterproof                  763,364
 Wood and manufactures:
   Unmanufactured, except dyewood                                248,087
   Manufactures:
    Furniture                                                    130,702
    Other                                                         75,794
 Wool, pure                                                      689,861
 All other articles                                            1,887,017
                                                             ———————————
                            Total                            $19,258,996


                                 EXPORTS

 Bismuth                                                        $836,366
 Coca                                                            286,417
 Copper                                                        1,318,389
 Rubber                                                        6,032,892
 Silver:
   Crude                                                      $1,675,940
   Coined                                                        168,204
 Tin                                                          23,432,658
 Wolfram                                                        $202,165
 All other articles                                            1,104,816
                                                             ———————————
                            Total                            $35,057,841


                                 Brazil

              Articles                    United     United
                                    Year  States    Kingdom    Germany
 Arms and ammunition:
   Ammunition                       1912  $457,294            $1,369,956
   Firearms                         1912   572,302    $21,756  1,111,676
 Asphalt                            1912    39,334
 Belting                            1912    44,394    206,090     42,740
 Bicycles                           1912    37,116    103,249     41,287
 Blacking, boot                     1912    19,573     29,039     17,163
 Breadstuffs:
   Flours and meals, not wheat      1912    57,540     48,186
   Wheat                            1912       213
   Wheat flour                      1912 4,007,047
 Cars, carriages, motor cars, etc.:
   Railway cars                     1912 1,915,701    991,730    331,761
   Axles and wheels, for railway
     cars                           1912   271,653    268,616    431,786
   Carriages, etc.                  1912   161,351     31,658     41,716
   Axles, etc., for carriages       1912    26,803                18,790
   Motor cars                       1912   924,045    317,873  1,526,018
   Motor-car accessories            1912   110,530    112,434    320,209
 Cement                             1912   275,942  1,138,048  2,525,183
 Cordage, jute and hemp             1912    12,168     34,919     17,643
 Cotton manufactures:
   Piece goods—
    Bleached                        1912    12,094  1,310,654
    Unbleached                      1912     4,386    237,242
    Dyed                            1912    54,865  2,905,293     74,654
    Printed                         1912     1,195    836,941
    Other                           1912    69,650  4,608,054  1,461,724
   Other                            1912   187,005  1,091,231  2,272,635
 Coal                               1912 2,788,601 15,490,137
   Patent fuel                      1912            2,099,247
 Clocks and watches:
   Clocks                           1912   100,479                93,059
   Watches                          1912    10,027                14,586
 Chemicals and drugs:
   Calcium carbide                  1912    52,939
   Pills, etc.                      1912    47,158      .....
   Pharmaceutical goods, etc.       1912   423,164    962,656  1,364,543
 Dynamite and other explosives      1912    10,257    417,202     91,324
 Electrical machinery and supplies:
   Cable                            1912   250,047    241,369     49,997
   Insulators                       1912    55,044               125,582
   Machinery                        1912 2,060,944    569,562  1,375,764
 Fishhooks, locks, stirrups, etc.   1912   140,729    106,077    236,351
 Fish:
   Codfish                          1912   279,415    449,641
   Preserved extracts, etc.         1912   144,028
 Fruits:
   Dried                            1912    19,544          .      .....
   Fresh                            1912   212,010          .
   Preserved, and extracts          1912    33,304
 Glass and manufactures:
   Bottles and tumblers             1912    58,245               564,005
   Window glass                     1912     4,042    135,855
 Hats                               1912               89,217
 Ink:
   Printing                         1912    18,148                59,066
   Writing                          1912     2,923     25,160          .
 Instruments, scientific:
   Dental                           1912   165,793     34,385     23,810
   Optical, and goods               1912    19,065                25,612
   Surgical, and goods              1912    36,873                70,598
   Other                            1912   172,381     75,190    191,322
 Iron and steel, and manufactures
   of:
   Cutlery                          1912  $178,465   $337,214   $576,594
   Enameled ware                    1912    13,020     59,051    379,110
   Galvanized corrugated sheets     1912   328,994  1,540,600     91,931
   Furniture                        1912    54,393     51,471     42,635
   Bars, rods, plates, and sheets   1912   114,879    529,803    569,338
   Cast, pig, and puddled iron      1912     7,019    331,278
   Locomotives                      1912 1,871,639    459,850  1,290,737
   Motors and stationary engines    1912   425,918    333,763    507,533
   Machinery—
    Agricultural                    1912   409,458     84,233    179,056
    Industrial                      1912   230,799  2,776,668  1,784,057
    Other                           1912 3,556,371  2,379,798  2,249,642
   Nails, screws, etc.              1912   117,401    143,478    116,929
   Rails, joints, etc.              1912 1,868,840    751,474  1,344,151
   Scales                           1912    67,337     24,013     31,839
   Sewing machines                  1912 1,563,131    105,297    963,594
   Steel bars and rods              1912    94,276    518,345     81,098
   Stills, boilers, etc.            1912    77,836    466,263     78,623
   Structural material              1912   196,928    648,719  1,223,603
 Tubes, pipes, fittings             1912   419,678  1,988,125    985,359
   Typewriters and accessories      1912   354,833                60,116
   Tools                            1912   694,927  1,537,651    661,834
   Telegraph  poles, bridge and
     fence material                 1912   328,901    391,635    360,880
 Leather, and manufactures of:
   Boots and shoes                  1912   333,285
   Sole leather                     1912        40     20,150
   Other leather                    1912   561,458    224,854  1,585,747
   Manufactures of leather and
     skins                          1912    35,724     92,322    120,066
 Lighting apparatus                 1912    60,656    107,021    223,470
 Meats and products:
   Bacon                            1912   157,373      .....
   Hams                             1912    15,210    458,846
   Lard                             1912    92,275
   Preserved, and extracts          1912    25,202
 Milk, condensed                    1912    18,541
 Mills                              1912    15,332     48,325
 Musical instruments:
   Phonographs and accessories      1912   138,602               303,147
   Pianos                           1912   126,894               607,091
 Oils:
   Gasoline                         1912 1,164,021
   Kerosene                         1912 4,383,101
   Lubricating                      1912   812,756    152,101    129,294
 Paper, and manufactures of:
   Card and mill board              1912     4,413               261,009
   Playing cards                    1912     4,414                 2,451
   Printing paper                   1912    13,595     61,101    881,228
   Stationery, etc.                 1912    57,291    115,605    261,500
   Writing paper                    1912    12,974               220,869
 Paraffine                          1912    13,151     29,405     14,266
 Photographic apparatus and
   accessories                      1912    51,521                72,405
 Presses                            1912     6,333     14,712     10,237
 Pumps, hydraulic, and parts        1912    92,776    118,906     86,698
 Pipe, lead                         1912     1,776     45,491
 Plated ware                        1912     3,368     32,398     26,423
 Perfumery,  dyes,  etc.,  and
   materials for                    1912   277,532    620,696    301,905
 Paints, prepared                   1912   130,806    394,256    127,948
 Resin                              1912 1,547,214
 Rubber manufacture                 1912   182,828    278,553    288,933
 Soap, unscented                    1912    35,734    198,953     56,998
 Starch                             1912     1,502     59,796     69,984
 Salt                               1912              137,923
 Tallow and grease                  1912     2,871     15,137
 Tin plates, in sheets              1912   271,451  1,112,935
 Tinware                            1912     6,678                47,953
 Tents                              1912     2,054     13,480     14,226
 Type, printers’                    1912     2,089               107,021
 Tobacco leaf                       1912    44,602
 Varnishes                          1912   $49,260   $115,833
 Vegetables:
   Dried                            1912       815                $9,859
   Preserved and extracts           1912    15,389
 Wire:
   Copper                           1912   851,550     65,115    285,042
   Other                            1912   823,876    227,990  1,403,714
 Wearing apparel                    1912    40,577    214,689    222,144
 Wood, and manufactures of:
   Furniture                        1912   137,340     76,271    115,560
   Pine blocks and boards           1912 2,302,576
 Staves and hoops                   1912     7,886     28,931    112,666
   Rough, sawed, planed, and
     veneered                       1912    33,123                25,621


              Articles
                                    Year  France    Belgium    Total
 Arms and ammunition:
   Ammunition                       1912  $197,561           $2,178,121
   Firearms                         1912            $488,328  2,280,796
 Asphalt                            1912                        172,889
 Belting                            1912    49,137              351,719
 Bicycles                           1912    31,837              258,786
 Blacking, boot                     1912                         72,676
 Breadstuffs:
   Flours and meals, not wheat      1912                        214,938
   Wheat                            1912                     14,026,977
   Wheat flour                      1912                     11,733,682
 Cars, carriages, motor cars, etc.:
   Railway cars                     1912           3,912,337  7,382,069
   Axles and wheels, for railway
     cars                           1912             337,014  1,328,604
   Carriages, etc.                  1912                        285,090
   Axles, etc., for carriages       1912    29,125               93,150
   Motor cars                       1912 1,470,795   186,216  5,368,650
   Motor-car accessories            1912   483,508            1,265,430
 Cement                             1912   117,025   960,125  5,263,961
 Cordage, jute and hemp             1912    11,058               91,014
 Cotton manufactures:
   Piece goods—
    Bleached                        1912                      1,457,021
    Unbleached                      1912                        255,016
    Dyed                            1912    59,781   120,078  3,320,815
    Printed                         1912                        935,708
    Other                           1912   376,106   438,478  8,329,407
   Other                            1912   402,305            3,788,388
 Coal                               1912                     18,482,303
   Patent fuel                      1912              56,702  2,214,749
 Clocks and watches:
   Clocks                           1912                        227,530
   Watches                          1912                        247,059
 Chemicals and drugs:
   Calcium carbide                  1912                        435,057
   Pills, etc.                      1912                         72,467
   Pharmaceutical goods, etc.       1912 1,537,131            4,908,461
 Dynamite and other explosives      1912    37,119              563,570
 Electrical machinery and supplies:
   Cable                            1912                        579,885
   Insulators                       1912                        204,388
   Machinery                        1912   537,636            4,811,052
 Fishhooks, locks, stirrups, etc.   1912    51,979              559,805
 Fish:
   Codfish                          1912                      6,537,176
   Preserved extracts, etc.         1912    75,259            1,267,575
 Fruits:
   Dried                            1912    24,847              703,853
   Fresh                            1912                        961,797
   Preserved, and extracts          1912    14,359               64,082
 Glass and manufactures:
   Bottles and tumblers             1912    73,050              776,833
   Window glass                     1912             319,055    518,487
 Hats                               1912   149,846              756,931
 Ink:
   Printing                         1912    32,535              111,969
   Writing                          1912                         36,576
 Instruments, scientific:
   Dental                           1912                        230,589
   Optical, and goods               1912    36,965               85,485
   Surgical, and goods              1912    95,661              216,052
   Other                            1912   110,639              586,037
 Iron and steel, and manufactures
   of:
   Cutlery                          1912   $86,941           $1,193,260
   Enameled ware                    1912                        485,525
   Galvanized corrugated sheets     1912                      2,060,072
   Furniture                        1912                        170,171
   Bars, rods, plates, and sheets   1912            $397,021  1,797,435
   Cast, pig, and puddled iron      1912                        372,735
   Locomotives                      1912             122,518  3,749,149
   Motors and stationary engines    1912    70,511            1,460,513
   Machinery—
    Agricultural                    1912                        702,012
    Industrial                      1912   354,519            5,758,613
    Other                           1912   888,227   345,870 10,071,038
   Nails, screws, etc.              1912    80,627              547,469
   Rails, joints, etc.              1912 2,071,438 3,318,764  9,384,650
   Scales                           1912                        135,175
   Sewing machines                  1912                      2,548,510
   Steel bars and rods              1912                        944,537
   Stills, boilers, etc.            1912                        716,563
   Structural material              1912   384,630   564,202  3,099,101
 Tubes, pipes, fittings             1912   354,521            3,973,039
   Typewriters and accessories      1912                        423,494
   Tools                            1912   299,377            3,311,443
   Telegraph  poles, bridge and
     fence material                 1912    25,509   469,437  1,478,680
 Leather, and manufactures of:
   Boots and shoes                  1912    27,181              531,639
   Sole leather                     1912                         20,842
   Other leather                    1912   896,943            3,587,909
   Manufactures of leather and
     skins                          1912              76,573    412,719
 Lighting apparatus                 1912                        465,826
 Meats and products:
   Bacon                            1912                        187,414
   Hams                             1912                        525,627
   Lard                             1912                        111,526
   Preserved, and extracts          1912    35,156              308,424
 Milk, condensed                    1912                      1,396,423
 Mills                              1912    42,722              128,429
 Musical instruments:
   Phonographs and accessories      1912                        458,952
   Pianos                           1912    79,795              866,547
 Oils:
   Gasoline                         1912                      1,185,084
   Kerosene                         1912                      4,424,901
   Lubricating                      1912                      1,262,449
 Paper, and manufactures of:
   Card and mill board              1912                        451,045
   Playing cards                    1912                          9,058
   Printing paper                   1912             111,916  2,107,646
   Stationery, etc.                 1912    74,376              525,185
   Writing paper                    1912                        425,648
 Paraffine                          1912                         65,229
 Photographic apparatus and
   accessories                      1912    51,663              224,255
 Presses                            1912                         37,519
 Pumps, hydraulic, and parts        1912                        365,636
 Pipe, lead                         1912                         51,542
 Plated ware                        1912                         72,960
 Perfumery,  dyes,  etc.,  and
   materials for                    1912 1,041,177     1,964  2,829,581
 Paints, prepared                   1912    43,801              753,872
 Resin                              1912                      1,593,017
 Rubber manufacture                 1912   111,358              962,267
 Soap, unscented                    1912                        289,575
 Starch                             1912              56,828    212,972
 Salt                               1912                        731,785
 Tallow and grease                  1912                         80,022
 Tin plates, in sheets              1912                      1,421,649
 Tinware                            1912    29,369              100,931
 Tents                              1912                         41,336
 Type, printers’                    1912    37,188              233,373
 Tobacco leaf                       1912                        343,987
 Varnishes                          1912                       $198,527
 Vegetables:
   Dried                            1912                         35,413
   Preserved and extracts           1912  $118,861              611,043
 Wire:
   Copper                           1912                      1,293,638
   Other                            1912            $344,331  2,880,837
 Wearing apparel                    1912   247,057            1,140,662
 Wood, and manufactures of:
   Furniture                        1912   108,453              871,002
   Pine blocks and boards           1912                      2,768,805
 Staves and hoops                   1912                        186,883
   Rough, sawed, planed, and
     veneered                       1912                        464,835


                                 Chile

           Articles              From      From
                                United    United     From
                                States    Kingdom   Germany    Total
 Bottles for liquor                           $498  $523,145   $525,154
 Cars for portable and aerial
   railways                      $18,727   335,521   393,922    850,535
 Cement, Roman                    72,917   313,012 1,168,373  1,703,032
 Coal                            502,787 7,103,652   278,210 11,129,959
 Coffee, grain                     1,293    12,640    21,785    770,292
 Coke                                      155,402   176,455    383,753
 Colors, common, prepared with
   waters and oil                 13,893   306,272    84,326    409,157
 Cotton goods                    770,188 6,923,309 3,413,980 14,161,177
 Cotton yarn                      38,558   621,476   522,450  1,593,200
 Glassware                        30,858    27,682   274,723    391,455
 Iron and steel, and
   manufactures of             3,521,167 4,447,775 4,446,738 13,448,154
   Wire                          465,300    28,459   146,187    694,661
   Iron articles for domestic
     use                          26,599   125,583   510,028    689,537
   Pipes, tubes, tools, etc.     152,906   813,813   568,463  1,883,638
   Nails                         216,655    58,493   205,515    525,819
   Railway couplings and
     plates                       37,157    49,141   145,620    276,940
   Iron and steel, unworked,
     in bars, plates, and
     other forms                 240,183   149,994   413,660  1,153,087
   Sheet iron, corrugated,
     galvanized                  967,402   776,490     4,150  1,748,128
   Rails for railways            516,384   488,551   443,247  1,516,485
 Live animals                                                 3,919,088
   Cattle                                                     3,286,871
 Locomotives and tenders         107,932   337,791   656,819  1,119,018
 Machinery, implements, etc.:
   For arts and sciences         327,923   169,531   762,327  1,369,415
   Mining                         99,827   250,047   296,913    652,828
   Agricultural                  915,971   683,360   342,550  1,979,586
   Industrial                    226,647   867,627 1,049,792  2,345,184
   Motors                         81,737 1,022,549   304,967  1,471,558
   Parts                         153,672   494,480   613,277  1,122,020
 Materials for Longitudinal
   Railway                       316,032   148,954   201,036    666,022
 Metals, other than iron and
   steel                         155,706   840,196   932,125  2,249,211
 Mineral water                     9,450   145,113    90,612    401,054
 Olive and other edible oils     560,434    28,040   162,025  1,244,117
 Paper, unsized, for printing    225,398    40,477   893,543  1,220,867
 Paraffine in paste form          87,808    94,811   440,909    634,204
 Paraffine and petroleum,
   naphtha, gasoline, etc.     1,134,728    10,102       186  1,144,624
 Petroleum, fixed, impure        273,881    58,466    34,337    365,026
 Petroleum, crude              1,240,221                      2,527,758
 Pine lumber, rough            1,252,359    76,335     3,079    148,949
 Railway freight cars             13,205   187,866    62,022    430,473
 Rice                                720     5,352   380,485    820,954
 Sacks, empty                              220,705     1,105  3,285,198
 Salmon                          373,640    10,613    12,292    401,314
 Silk thread and manufactures      2,716    24,903   333,584  1,183,838
 Sugar:
   Refined                           205       890   167,733    199,417
   White                                       409    19,618     81,182
   Granulated                                5,460    52,151  2,261,793
   Raw                               346                 501     23,220
 Tea                               5,700   829,158    60,937    933,672
 Woolen goods                      8,920 3,211,547 2,445,224  7,047,551
 Woolen yarn                     $10,168   $54,294  $621,698   $705,738
 Yerba maté                          790    78,150    23,503    689,646


                                Colombia

                     Articles                        From
                                                    United
                                                    States      Total
 Animals                                              $1,608     $26,016
 Arms and accessories                                 27,203      57,439
 Ceramics, crockery, etc.                            157,674     503,579
 Drugs and medicines                                 390,546     838,347
 Electric machinery and equipment                    110,922     175,638
 Explosives                                           48,876      94,116
 Food products                                     1,573,257   3,054,952
 Metals                                            1,060,274   2,916,924
 Machinery:
   Agricultural and mining                           182,017     381,587
   Locomotive                                        876,863   1,031,711
   For arts and sciences                             349,060     620,251
 Musical instruments                                  17,398      69,622
 Oils and fat products                                94,457     171,733
 Perfumes, soaps, etc.                                92,064     152,169
 Paper and cardboard                                  96,629     477,522
 Textiles                                          1,667,131  10,547,134
 Varnishes, paints, etc.                              48,824     125,862
 Wines, liquors, etc.                                 68,172     835,772
 All other articles                                  749,062   1,884,249
                                                  —————————— ———————————
                      Total                       $7,612,037 $23,964,623


                                Ecuador

                          Articles                              Value
 Animals, live                                                   $47,111
 Arms and ammunition                                              49,521
 Boats, launches, etc.                                            10,390
 Books, blank and printed                                         34,135
 Boots, shoes, and findings                                      234,302
 Candles                                                         155,938
 Carriages in general                                             76,809
 Cement, stone, and earth                                         56,423
 Clothing, ready-made                                            624,959
 Cordage, twine, and thread                                      166,328
 Crockery and glassware                                          161,102
 Drugs and medicines                                             430,229
 Foodstuffs                                                    1,849,847
 Gold and silver coins                                           285,333
 Hats and caps                                                   140,185
 Iron and steel, and manufactures of:
   Hardware                                                      798,971
   Machinery                                                     620,554
 Jewelry                                                          19,807
 Leather                                                          26,569
 Lumber, rough and finished                                       94,594
 Matches                                                          26,917
 Mineral products                                                206,445
 Musical instruments                                              53,699
 Oils in general                                                 115,092
 Paints and varnishes                                             41,063
 Paper in general                                                171,167
 Perfumery                                                        79,065
 Textiles:
   Silk fabrics, pure and mixed                                   18,143
   All other                                                   2,784,944
 Vegetable products                                               54,899
 Wines and liquors                                               375,574
 Miscellaneous                                                   830,728
                                                             ———————————
                            Total                            $10,652,843


                                Paraguay

                    Articles and countries                      Value
 Beverages                                                      $281,844
   France                                                         60,636
   Italy                                                          61,203
   Spain                                                         123,670
 Drugs                                                           215,039
   United States                                                  42,134
   Argentine                                                      14,191
   France                                                         33,084
   Germany                                                        48,936
   United Kingdom                                                 44,202
 Government supplies (for public works)                          119,499
   United States                                                  18,070
   Argentine                                                      24,414
   Germany                                                        62,351
 Haberdashery (small wares sold by dry goods stores)             380,518
   Argentine                                                      19,865
   France                                                         84,109
   Germany                                                       171,797
   Italy                                                         $16,289
   Spain                                                          18,640
   United Kingdom                                                 60,874
 Hardware                                                        836,621
   United States                                                 103,467
   Germany                                                       368,286
   United Kingdom                                                268,886
 Provisions                                                    1,171,578
   United States                                                  81,795
   Argentine                                                     448,602
   Austria                                                       106,492
   Germany                                                       205,870
   Italy                                                          64,926
   Spain                                                         105,738
 Textiles                                                      1,462,367
   France                                                         64,441
   Germany                                                       396,413
   Italy                                                          83,121
   United Kingdom                                                835,666


                                  Peru

              Articles and countries                  1910       1911
 Cotton textiles and manufactures:
   United Kingdom                                  $1,770,615 $2,131,482
   Germany                                            438,676    535,076
   Italy                                              224,175    404,303
   Belgium                                            132,222    169,378
   United States                                      149,202    139,605
   Spain                                               60,811    130,091
   France                                              59,629     99,281
   Japan                                               11,986      8,189
   Other countries                                     14,337     12,064
                                                   —————————— ——————————
                       Total                       $2,861,653 $3,629,469

 Wool and animal hair and manufactures:
   United Kingdom                                    $532,944   $638,459
   Germany                                            277,565    577,760
   Belgium                                             92,726    159,246
   Italy                                               61,532     84,559
   France                                              42,153     77,513
   Spain                                                           8,189
   United States                                        2,501      6,856
   Other countries                                     29,026     10,138
                                                   —————————— ——————————
                       Total                       $1,038,447 $1,562,720

 Linen, hemp, jute, and other textile fibers and
   manufactures:
   United Kingdom                                    $249,441   $280,042
   British India                                       88,969    188,683
   Germany                                             31,194     55,531
   Australia                                           19,636     42,027
   France                                              16,088     20,113
   Belgium                                             13,820     16,998
   United States                                        5,133     13,971
   Spain                                                          10,390
   Italy                                              $11,338    $10,283
   Chile                                               16,321      6,910
   Other countries                                      4,245      1,230
                                                     ————————   ————————
                       Total                         $456,185   $646,178

 Silk, animal and vegetable, and manufactures:
   Germany                                           $121,146   $161,299
   United Kingdom                                      63,633     66,792
   France                                              58,120     63,964
   Italy                                               23,539     20,157
   Belgium                                              7,425     19,032
   Hongkong                                                       10,399
   Japan                                                           5,742
   United States                                                  $4,847
   Other countries                                    $26,613      4,053
                                                     ————————   ————————
                       Total                         $300,476   $356,285

 Hides, skins, and leather goods:
   United Kingdom                                     $58,957   $163,144
   United States                                       37,481    139,040
   Germany                                             40,727    100,897
   France                                              14,108     52,626
   Japan                                                          22,814
   Italy                                                          10,745
   Spain                                                           4,618
   Other countries                                     17,988     13,935
                                                     ————————   ————————
                       Total                         $169,261   $507,819

 Wearing apparel and notions:
   Italy                                             $108,746    $47,705
   France                                             124,469     26,166
   Germany                                            118,796     12,472
   United Kingdom                                     258,955     10,769
   United States                                       58,081      2,331
   Other countries                                    145,483      3,526
                                                     ————————   ————————
                       Total                         $814,530   $102,969

 Furniture:
   Germany                                            $53,574    $49,516
   United States                                       40,226     45,004
   United Kingdom                                      44,007     42,912
   France                                              10,818     22,123
   Hongkong                                                        4,540
   Other countries                                      6,732      7,536
                                                     ————————   ————————
                       Total                         $155,357   $171,631

 Metals and manufactures:
   United Kingdom                                  $1,270,759 $1,948,984
   United States                                      498,529  1,579,651
   Germany                                            205,570    616,240
   Belgium                                            165,188    490,747
   France                                              36,814    182,843
   Brazil                                                         24,424
   Italy                                                          18,925
   Other countries                                      9,166     12,432
                                                   —————————— ——————————
                       Total                       $2,186,026 $4,874,246

 Stones, earth, coal, glass, and chinaware:
   United Kingdom                                    $272,100   $935,964
   Germany                                            142,845    476,249
   Belgium                                             67,955    237,524
   United States                                       51,925    127,507
   Australia                                           26,916     59,604
   France                                              15,178     60,305
   Chile                                                          33,194
   Japan                                                          32,011
   Italy                                                          14,044
   Other countries                                     17,237     12,672
                                                     ———————— ——————————
                       Total                         $594,156 $1,989,074

 Woods, lumber, and manufacturers:
   United States                                     $322,726 $1,530,689
   Chile                                               17,421     49,034
   Germany                                             15,183     53,137
   Ecuador                                             16,059     36,035
   France                                                         23,943
   Japan                                                          17,601
   United Kingdom                                      17,333     16,063
   Hongkong                                                        8,939
   Belgium                                                         5,999
   Spain                                                           5,693
   Italy                                                           5,596
   Other countries                                     48,542     13,187
                                                     ———————— ——————————
                       Total                         $437,264 $1,765,916

 Paints, dyes, varnishes, bitumen, gum:
   United States                                     $213,200   $491,146
   Germany                                             67,604    223,551
   United Kingdom                                      62,403    152,262
   Belgium                                             16,433     72,282
   Salvador                                            15,985     43,812
   Mexico                                                        $22,760
   France                                                         19,397
   Italy                                                           6,467
   Other countries                                    $12,896      4,960
                                                     ———————— ——————————
                       Total                         $388,521 $1,036,637

 Live animals:
   Chile                                              $10,088    $44,425
   Ecuador                                                        10,292
   United States                                                   5,313
   Germany                                                        $3,309
   United Kingdom                                                  1,747
   Other countries                                     35,218        786
                                                      ———————    ———————
                       Total                          $45,306    $65,872

 Stationery, paper, and cardboard:
   Germany                                           $154,574   $422,898
   Spain                                               21,689    108,503
   United Kingdom                                      35,680     98,794
   United States                                       46,829     97,310
   Belgium                                            $28,424    $57,458
   France                                              16,706     36,999
   Italy                                                          11,733
   Hongkong                                                        4,550
   Other countries                                      4,897      5,880
                                                     ————————   ————————
                       Total                         $323,466   $859,404

 Tools, ships’ stores, machines and vehicles:
   United States                                     $436,758   $749,864
   United Kingdom                                     269,136    809,800
   Germany                                             77,644    225,503
   Belgium                                             35,685    172,842
   France                                              57,998     49,253
   Italy                                                          11,733
   Hongkong                                                        4,550
   Other countries                                     17,066     10,725
                                                     ———————— ——————————
                        Total                        $894,287 $2,034,270

 Musical instruments:
   Germany                                            $19,986    $75,960
   United States                                        7,936     30,532
   United Kingdom                                                $11,373
   France                                                          5,499
   Other countries                                      8,187     14,168
                                                      ———————   ————————
                       Total                          $36,109   $137,532

 Arms, ammunition, and explosives:
   Germany                                            $17,333   $172,171
   United Kingdom                                      67,225    123,851
   United States                                       39,331    102,317
   France                                                         76,569
   Hongkong                                            27,009     57,847
   Belgium                                                         8,968
   Other countries                                     34,778      9,076
                                                     ————————   ————————
                       Total                         $185,676   $550,799

 Dry goods and miscellaneous articles:
   United Kingdom                                  $2,583,430   $336,527
   Germany                                          1,490,550    255,510
   United States                                    1,801,962    205,638
   France                                           1,495,523    142,928
   Chile                                              143,322    134,417
   Belgium                                            561,506     96,239
   Cuba                                                35,374     78,049
   Italy                                               62,563     17,509
   Mexico                                                         16,020
   Ecuador                                             55,146     11,927
   Japan                                                          11,810
   Hongkong                                            42,353      9,425
   Spain                                               37,349      7,922
   Other countries                                    156,830      3,314
                                                   —————————— ——————————
                       Total                       $8,465,908 $1,327,235

 Beverages:
   France                                            $160,715   $173,850
   Germany                                             88,049     87,241
   United Kingdom                                      82,375    118,708
   Portugal                                            69,449     63,736
   Italy                                               45,447     43,350
   Spain                                               31,919     51,224
   Belgium                                             25,111     25,417
   United States                                       16,394     10,331
   Hongkong                                                        4,185
   Other countries                                     42,752      1,878
                                                     ————————   ————————
                       Total                         $562,211   $579,920

 Comestibles and condiments:
   Australia                                         $801,639 $1,013,886
   Hongkong                                           507,400    626,795
   United States                                      547,456    568,416
   United Kingdom                                     370,549    322,906
   Germany                                            345,219    273,677
   Italy                                              182,726    185,579
   Chile                                              497,755     94,935
   France                                                         89,290
   Belgium                                             38,065     59,390
   Spain                                                          40,552
   Portugal                                            56,154     28,181
   Brazil                                                         14,331
   Japan                                                           7,586
   Other countries                                    227,306      6,466
                                                   —————————— ——————————
                       Total                       $3,574,269 $3,331,990

 Medicines and pharmaceutical products:
   United States                                     $118,766   $212,933
   Germany                                            131,346    210,426
   France                                              76,106    177,568
   United Kingdom                                     144,568    143,950
   Italy                                               49,701     53,793
   Belgium                                                        12,983
   Hongkong                                                       10,321
   Other countries                                     30,877     48,925
                                                     ————————   ————————
                       Total                         $551,364   $870,899

 Articles not classified:
   Germany                                                       $16,224
   United Kingdom                                                 14,959
   United States                                      $94,696     14,725
   France                                              51,229      7,494
   Other countries                                     52,453     10,888
                                                     ————————    ———————
 Total                                               $198,378    $64,290


                                Uruguay

                          Articles                              Value
 Beverages                                                    $2,224,582
 Chemical products, etc.                                       1,433,804
 Chalk                                                            52,661
 Cement, Portland                                                981,279
 Coal                                                          2,742,100
 Chinaware                                                       187,546
 Food products:
   Cheese                                                        113,573
   Coffee                                                        365,174
   Codfish                                                        90,894
   Chocolate                                                     129,899
   Sardines                                                       91,011
   Canned goods                                                   89,599
   Fruits                                                        370,006
   Indian corn                                                   317,804
   Oils                                                          737,926
   Potatoes                                                     $978,165
   Peas                                                          113,028
   Wheat                                                         109,620
   Yerba maté                                                  1,236,542
   Sugar, refined and unrefined                                2,338,379
   Rice                                                          637,092
 Glass bottles and flask                                          97,323
 Glass, window                                                   307,585
 Hides and skins and manufactures                                 66,805
 Iron, steel and manufactures:
   Agricultural machinery and implements                         552,319
   Beams                                                         555,211
   Carriage springs                                               76,135
   Enameled ware                                                 150,108
   Cutlery                                                        63,195
   Fence wire                                                    848,326
   Galvanized iron—
    Bars and sheets                                              144,958
    For roofs                                                    692,365
   Hoops                                                          76,279
   Iron in bars and sheets                                       697,835
   Machinery, for trades                                         634,419
   Nails                                                          38,933
   Pipes—
    Iron                                                          82,818
    Galvanized iron                                               81,450
   Rails                                                          53,998
   Screws and nuts                                                50,125
 Live animals                                                    905,318
 Metals (other than iron and steel and manufactures of)          749,770
 Oils:
   Benzine                                                       283,636
   Lubricating                                                   129,168
   Gasoline                                                       45,009
   Kerosene                                                      $85,784
 Paints, dyes, inks, etc.                                        378,382
 Paper, and manufactures of                                    1,031,812
 Porcelain                                                        59,749
 Sulphur                                                          79,996
 Textile goods:
   Cotton                                                      5,370,078
   Linen                                                         249,387
   Silk                                                          318,090
   Woolen                                                      1,773,931
 Tobacco                                                       1,321,860
 Wood and manufactures of:
   Furniture                                                     258,841
   Other                                                       2,680,597

                        Imported from                           Value
 United Kingdom                                              $12,648,379
 Germany                                                       7,894,644
 United States                                                 5,671,318
 Argentine                                                     4,173,155
 France                                                        3,952,473
 Italy                                                         3,348,233
 Belgium                                                       3,333,938
 Spain                                                         2,143,455
 Brazil                                                        2,071,535
 Chile                                                           312,828
 Australia                                                       297,341
 Netherlands                                                     242,552
 Cuba                                                            186,004
 Paraguay                                                        166,601
 Austria-Hungary                                                 116,079
 Portugal                                                         31,567
                                                             ———————————
                            Total                            $46,590,102


                               Venezuela

          Articles             United     United
                               States    Kingdom    Germany     France
 Agricultural implements,
   accessories                  $98,438   $166,525    $36,159       $408
 Arms and ammunition            201,728     10,067     38,391     16,429
 Automobiles and accessories     96,593      1,930      3,049     16,304
 Bags and bagging                 6,677    215,460     12,213        101
 Beer                                77      8,638     58,708          7
 Biscuits                        96,547     20,563     12,111      1,912
 Bottles                            493      6,884    129,871         93
 Butter                         137,977      2,692    168,080     47,443
 Canned meats                    95,892     17,050     20,418     16,950
 Carbonic acid gas                1,022        939      4,585         49
 Cement                          66,461     23,246     25,954         17
 Cheese                             990        461      5,436      1,454
 Coal                            11,365     81,103     11,742
 Confectionery                   32,978     23,480      6,132     12,546
 Cotton goods                   449,663  2,745,304    378,992     75,396
 Cotton knit goods                1,363     17,826    114,133     26,110
 Drugs and medicines            287,718     32,625    111,579    130,989
 Earthenware and crockery         3,324     11,602     46,280      1,387
 Electrical apparatus and
   accessories                  120,585      2,626      8,530         76
 Flour                        1,085,821     11,697        289
 Glassware                       22,828      1,929     39,681      5,998
 Hams                            72,697        795        679         20
 Hats                             8,150      2,619    203,438      7,980
 Iron, and manufacturers of:
   Domestic wares                18,609     23,054    118,941        803
   Manufactures                 176,498     99,154     55,367     14,311
   Tubes                         40,410     17,486      7,034
   Unfinished                    42,356     17,708     10,400        214
 Lamps, lanterns, and
   accessories                    7,345        461      7,442      1,221
 Lard                           382,184      6,199                    17
 Leather                         95,488      6,607     44,448     68,008
 Machinery                      289,850     90,596     62,944     20,200
 Malt                              $125               $48,381
 Nails, iron                     16,931     $7,528     17,130        103
 Oils:
   Benzine, gasoline, and
     naphtha                     14,957        672      1,677         32
   Crude petroleum                  970        427
   Engine                        15,755      5,739      2,908         99
   Kerosene                     160,958      2,523
   Linseed                        4,298      1,597     14,548         57
   Olive                            279      4,035      2,799      8,749
   Other                          3,265         58      1,946         34
 Olives and capers                1,286      1,268        918      5,072
 Paints:
   Ordinary                      31,644      4,852     15,035        407
   Enamel and colors              7,368        180     11,257      1,363
 Paper:
   Printing                      41,368        110        617          3
   Other                         26,427      5,999     53,263      2,045
 Perfumery                       54,518     16,664     22,800     66,381
 Powder and dynamite             17,095        426      3,021
 Railroad material               41,974     82,754     23,090
 Rice                            17,969     28,589    253,946         58
 Sardines                         1,663      8,241     81,780     11,349
 Spices                          27,115        268      5,708        123
 Stearin and suet                 5,205      1,938      1,098      1,507
 Tobacco and products             5,171      2,392      2,946        106
 Turpentine                       8,063        133        668         15
 Vegetables, dried                6,756        609        161        274
 Wall paper                       4,698        200      3,695        317
 Window glass                       942        207      4,088        569
 Wines and liquors               13,024     84,255     66,239    159,342
 Wire:
   Barbed                       138,388        994      3,755
   Galvanized and plain          13,762      2,537      4,982
 Woolen goods                     4,526    170,149     40,553     49,002
 All other articles           1,079,696    178,356    767,354    987,960
                             —————————— —————————— —————————— ——————————
            Total            $5,718,323 $4,281,026 $3,199,389 $1,761,410

 Coin:
   Gold                       1,114,115      3,860                78,744
   Silver                                                        778,176
                             —————————— —————————— —————————— ——————————
         Total, 1912         $6,832,438 $4,284,886 $3,199,389 $2,618,330
         Total, 1911          5,219,577  5,253,865  3,195,945  1,857,564


          Articles
                              Netherlands All Other     Total
 Agricultural implements,
   accessories                    $34,770        $29    $336,329
 Arms and ammunition               17,816     74,834     359,265
 Automobiles and accessories                             117,876
 Bags and bagging                  10,135      2,658     247,244
 Beer                              17,617                 85,047
 Biscuits                           2,577        987     134,697
 Bottles                            1,643        316     139,300
 Butter                            33,718      1,001     390,911
 Canned meats                      10,156     21,483     181,949
 Carbonic acid gas                  2,853                  9,448
 Cement                            13,874         96     129,648
 Cheese                            55,255      3,678      67,274
 Coal                               4,009      4,298     112,517
 Confectionery                      6,374     16,522      98,032
 Cotton goods                     325,087    388,695   4,363,137
 Cotton knit goods                 44,657    226,667     430,756
 Drugs and medicines               37,817     34,170     634,898
 Earthenware and crockery          11,147        641      74,381
 Electrical apparatus and
   accessories                      2,625      2,285     136,727
 Flour                                                 1,097,807
 Glassware                          8,244        744      79,424
 Hams                                 309         58      74,558
 Hats                              12,026     31,247     265,460
 Iron, and manufacturers of:
   Domestic wares                  25,872        331     187,610
   Manufactures                    11,011      7,152     363,493
   Tubes                                         714      65,644
   Unfinished                         501        434      71,613
 Lamps, lanterns, and
   accessories                      1,290        327      18,086
 Lard                                                    388,400
 Leather                            9,736      1,099     225,386
 Machinery                         16,052      7,932     487,574
 Malt                                           $170     $48,676
 Nails, iron                        2,808      1,437      45,937
 Oils:
   Benzine, gasoline, and
     naphtha                           47                 17,385
   Crude petroleum                  2,203                  3,600
   Engine                             312      1,932      26,745
   Kerosene                                              163,481
   Linseed                          2,374                 22,874
   Olive                            5,382    180,728     201,972
   Other                               90        360       5,753
 Olives and capers                    891     13,746      23,181
 Paints:
   Ordinary                         1,751      2,332      56,021
   Enamel and colors                2,073        254      22,495
 Paper:
   Printing                           157        522      42,777
   Other                           27,465     23,068     138,267
 Perfumery                         28,527      3,971     192,861
 Powder and dynamite                1,955                 22,497
 Railroad material                 16,078      1,000     164,896
 Rice                             311,139      3,030     614,731
 Sardines                          38,743    108,475     250,251
 Spices                             2,398      3,129      38,741
 Stearin and suet                 291,085     17,236     318,069
 Tobacco and products                 205      2,699      13,519
 Turpentine                                                8,879
 Vegetables, dried                     95      1,257       9,152
 Wall paper                           335         26       9,271
 Window glass                       2,260        666       8,732
 Wines and liquors                 27,981    213,335     564,176
 Wire:
   Barbed                                                143,137
   Galvanized and plain               794                 22,075
 Woolen goods                      14,167     13,885     292,282
 All other articles               167,868    541,239   3,722,473
                               —————————— —————————— ———————————
            Total              $1,666,354 $1,962,895 $18,589,387

 Coin:
   Gold                             4,648              1,201,367
   Silver                                                778,176
                               —————————— —————————— ———————————
         Total, 1912           $1,671,002 $1,962,895 $20,568,940
         Total, 1911            1,340,904  1,527,034  18,394,889




                                 INDEX


 Acre Territory, 13

 Advertising, 331

 Advertising medicines, 332–333–335–336–337–338

 Advertising rates, 338

 Africa, 13, 176

 Alcoholic drinks in Latin America, 253–373

 Almagro, de, Diego, 67

 Alpaca, 88

 American attitude toward investments, 358

 American Banks in Latin America, 290–298

 American loans, 363

 Angostura bitters, 130

 Anguilla, 206

 Antigua, 206, 209

 Anti-typhoid vaccination, 369

 Appendix, 375

 Appointments in Latin America, 252

 Argentine, 10, 13, 31;
   discoveries of, 31;
   history, 32;
   early government, 31;
   present government, 32–33;
   wars with England, 32;
   area, 33;
   Patagonia, treaty with Chile, 33;
   boundary, 34;
   population, 34;
   immigration, 35;
   typography, 35;
   climate, 36;
   crops, 36, 37, 38;
   seasons reversed, 38;
   butter and cheese, 38;
   flour, 38;
   animal products, 39;
   number of cattle, 39;
   minerals, 40;
   woods, 40;
   peat, 40;
   petroleum, 40;
   railways, 41–42;
   factories, 41;
   steamships, 43;
   docks, 44;
   British investments, 45;
   German investments, 45;
   daily papers, 45;
   money, 46;
   travellers’ tax, 46;
   cities, 47;
   exports, 47;
   imports, 48, 375–376–377–378, 219;
   illiteracy, 331, 356

 Asphalt, 133, 207

 Austria-Hungary, 3–5–10

 Ayolas, de, Juan, 57

 Alvaredo, Pedro, 139


 Bahamas, 206, 207, 210

 Ballata, 132, 194, 196, 197

 Bananas, 120–148–149, 172, 195, 196, 208, 364, 365

 Banking, West Indies, 174, 195, 206

 Barbados, 205, 207, 209

 Barbuda, 206

 Belgium, 5

 Bermuda, 206, 210

 Bills on London, 289, 291

 Bismuth, 86, 87, 99

 Bolivia, 13, 32;
   area, 79;
   climate, 80;
   population, 82;
   railways, 83;
   minerals, 86;
   forests, 87;
   currency, 88;
   drugs, 87;
   travelers’ tax, 89;
   cities, 89;
   exports, 88–379–380;
   imports, 88–379

 Bolivar (Simon), 80, 106, 114

 Braden Copper Co., 73

 British capital invested, 289

 Brazil, 192–215;
   illiteracy, 332;
   imports, 380–381–382–383–384

 Brazil, 6, 7, 10;
   area, 13;
   boundaries, 13;
   population, 14;
   discoverer, 14;
   history, 15;
   language, 14;
   early government, 15;
   present government, 16;
   climate, 17;
   geography, 17;
   coast, 17;
   ports, 18;
   rivers, 18, 19;
   products, 19;
   manufactures, 21;
   mines, 22;
   railways, 24, 29;
   hotels, 24;
   money, 24;
   imports, 25, 26;
   exports, 25, 26;
   preferential duty, 25;
   steamships, 27;
   cities, 29;
   travellers’ tax, 30

 British Guiana, 13–15, 191;
   early history, 192;
   topography, 192;
   temperature, 193;
   area, 193;
   exports and imports, 194, 195;
   travelers’ tax, 194;
   banking, 195

 British West Indies, 205

 Bubonic plague, 254–371


 Cabot, Sebastian, 31–57

 Cabral, Pedro Alvarez, 14

 Caicos Islands, 205

 Canadian banks, 195–206, 299

 Canal Zone, 143;
   currency, 152

 Carib Indians, 168

 Castro, Cipriano, 9

 Cattle raising, 172, 179

 Caymans, 205

 Central American Federation, 139

 Chicle (gum), 148, 149, 163

 Chile, 13, 32;
   discoverers, 67;
   Indians of, 67;
   early history, 67;
   government, 68;
   area, 68;
   coast of, 68;
   mountains, 68;
   climate, 68;
   population, 69;
   foreign colonies, 69;
   railways, 69;
   rivers, 70;
   ports, 71;
   nitrate, 71, 72;
   iodine, 72;
   copper, 73;
   coal, 74;
   minerals, 74;
   crops, 74;
   wine, 74;
   cattle, 75;
   forests, 75;
   industries, 75;
   fruits, 75;
   exports, 76;
   imports, 76, 77;
   money, 76;
   business in hands of, 77;
   travellers’ tax, 77;
   cities, 78;
   how to reach, 78–215, 219;
   illiteracy, 331, 356;
   imports, 384–385

 Clothes for Latin America, 260

 Cocaine, 87–101–102

 Cocoa, 20, 132, 179, 207, 364

 Coffee, 19, 88, 110, 119, 131, 135, 149, 183, 188, 196, 208, 364

 Colombia, 13;
   discoverer, 114;
   early history, 114;
   area, 115;
   topography, 115;
   climate, 116;
   population, 116;
   present government, 117;
   railroads, 117;
   Bogota, 118;
   travel, 118;
   rivers, 119;
   agriculture, 119;
   coffee, 119;
   bananas, 120;
   Panama hats, 120;
   tagua nuts, 120;
   cattle, 120;
   hides, 121;
   mines, 121, 122;
   emeralds, 121;
   money, 122;
   imports, 123, 386;
   exports, 123;
   travellers’ tax, 124;
   cities, 124;
   travel, 124;
   steamships, 125;
   ports, 125, 219–364

 Columbus, Christopher, 114–126–139, 168, 176, 186

 Commercial agencies, 306

 Consuls for United States, 225, 259

 Consular invoice, 323

 Copper, 63, 110, 133

 Copy, advertising, 339, 340;
   position of, 341

 Cortes, Hernando, 138, 156

 Correspondence in Latin America, 261

 Costa Rica, early history, 138;
   present government, 140;
   area and population, 142;
   topography, 144;
   railways, 145;
   agriculture, 147;
   forests, 148;
   bananas, 149;
   coffee, 149;
   mines, 149;
   exports, 149;
   imports, 150, 151;
   currency, 152, 153;
   travellers’ tax, 153;
   cities, 154;
   steamships, 154, 364

 Cuba, 1, 2, 5;
   area, 169;
   topography and population, 169, 170;
   climate, 170;
   government, 170;
   railways and rivers, 171;
   sugar, 171;
   fruits, 172;
   mines, 172;
   exports, 173;
   imports, 173;
   currency, 174;
   banks, 174;
   travelers’ tax, 174;
   principal cities, 175;
   rail and steamship connections, 169, 175;
   illiteracy, 331, 364

 Curaçao, area, 200;
   population, 200;
   currency, 201;
   banking, 201;
   exports, 201;
   smuggling, 201;
   imports, 202;
   steamer connections, 202

 Custom House rulings, 268–269, 270

 Customs of Latin Americans, 248, 249

 Customs and Tariffs, 266

 Cuzco (city), 104


 Denmark, 199

 Devils’ Island, 197

 Diaz (Porfirio), 158

 Disease in Latin America, 109–253–254–264–369–370–371–373

 Dominica, 206, 209, 210

 Drinking Water in Latin America, 254–368–369

 Dutch Guiana, 13–15, 191;
   population, 196;
   trade conditions, 196;
   exports and imports, 196;
   currency, 197;
   steamship connections, 197


 Eating fruit, 373

 Ecuador, 13;
   early history, 106;
   government, 107;
   area, 107;
   climate, 107;
   area and topography, 108;
   census, 108;
   railways, 109;
   revolutions, 109;
   diseases, 109;
   natural resources, 110;
   currency, 110;
   exports, 112;
   travelers’ tax, 112;
   imports, 112;
   principal cities, 112;
   how reached, 113;
   imports, 386

 Electro cuts, 342

 England, 2–3–5–123, 174, 183, 184, 199, 208, 209, 210, 220

 English investments, 355

 Europe, 3–4–6–7–12

 European attitude toward investors, 360

 European Possessions in the West Indies, 199, 205

 Exchange, basis of, 300–301

 Exchange buying, 291

 Exports, Bolivia, 379–380

 Export duties, 272


 Federal Reserve Act, 309

 Finance and Credits, 288

 Financing improvements, 292

 Foreign commerce statistics, 2–5–6

 France, 5–13–47, 176, 183, 184, 197, 198, 199, 204, 205, 208, 220, 222

 French banks, 290

 French Guiana, 13–15, 191;
   extent and population, 197;
   exports, 197;
   imports, 198;
   travelers’ tax, 198;
   language, 198


 Galapagos Islands, 107–112

 Germany, 3–5–13–47–65–77–122–183, 184, 208, 215, 218, 219, 220

 German banks, 289

 German investments, 355

 Gold exchange standard countries, 300

 Gold standard countries, 300

 Grenadines, 206

 Granada, 206, 209

 Guadeloupe (French possession), 204, 205

 Guano, 99–102–134

 Guatemala, early history, 139;
   present government, 140;
   area and population, 140;
   topography, 144;
   railways, 145;
   agriculture, 147;
   forests, 148;
   bananas, 148;
   coffee, 149;
   exports, 149;
   imports, 150, 151;
   currency, 152, 153;
   travellers’ tax, 153;
   cities, 153;
   steamships, 154;
   illiteracy, 332

 Guyara Falls, 61


 Haiti, early history, geography and climate, 182, 183;
   roads, 183;
   monetary system, 184;
   travelers’ tax, 185;
   principal cities, 185;
   steamships, 185

 Health precautions, 253–368

 Henequen (rope), 163, 172

 Holland, 15, 192, 199 (West Indian possessions), 200

 Honduras (British), early history, 139;
   present government, 140;
   area and population, 143;
   topography, 144;
   agriculture, 147;
   forests, 148;
   bananas, 149;
   exports, 149;
   imports, 150, 151;
   currency, 152, 153;
   travellers’ tax, 153;
   cities, 153;
   steamships, 154

 Honduras (Spanish), early history, 139;
   present government, 140;
   area and population, 141;
   topography, 144;
   railways, 145;
   agriculture, 147;
   forests, 148;
   bananas, 149;
   mines, 149;
   exports, 149;
   imports, 150, 151;
   currency, 152, 153;
   travellers’ tax, 153;
   cities, 154;
   steamships, 154

 Hotels, Latin America, 250

 Huerta (Victoriano), 158


 Illiteracy, 331

 Imports, Argentine, 375–376–377–378
   Brazil, 380–381–382–383–384
   Bolivia, 379
   Chile, 384
   Colombia, 386
   Ecuador, 386
   Paraguay, 387
   Peru, 103–388–389–390
   Uruguay, 391–392
   Venezuela, 393–394–395

 Inconvertible paper standard countries, 300

 Intestinal diseases, 370

 Irala, Domingo, 57

 Island of Margarita, 134, 136

 Isle of Pines, 169

 Italian banks, 290

 Iturbide, Augustin, 139, 157

 Ivory nuts (see tagua nuts)


 Jamaica, 206, 207, 208, 209

 Josephine, Empress of France, 204


 Lake Titicaca, 83, 85, 96, 98

 Latin America, 2, 4, 5, 6, 8, 9, 11

 La Paz, 83, 84, 89

 Leeward Islands, 205, 207

 Leprosy, 372

 Letters of Credit, 265, 303, 304

 Letters of Introduction, 258

 Literature for Latin America, 263

 London and River Plate Bank, 288

 Long credits, 309

 Lopez, Carlos Antonio, 57–58


 Madero (Francisco), 158

 Mail in Latin America, 264

 Marie Galante (French possession), 205

 Martinique (French), 204, 205

 Medicines for Latin America, 372–374

 Meiggs (Henry), 97

 Mendoza, de, Pedro, 31

 Merchant Marine, Germany, 218

 Merchants’ tax in Latin America, 257

 Methods of Doing Business, 224, 227

 Mexico, early history, 156, 157;
   revolutions, 158;
   form of government, 159;
   area, 160;
   topography, 160;
   population, 161;
   railways, 161;
   mineral wealth, 162, 163;
   forests, 163;
   exports, 164;
   imports, 165;
   monetary system, 165;
   commercial tax, 165;
   travel and hotels, 165;
   principal cities, 166;
   railroads, 166;
   steamships, 167, 219;
   illiteracy, 331

 Monetary systems, 299

 Montserrat, 206, 209, 210

 Mountain sickness, 81


 Nanduti lace, 62

 Napoleon III, 158

 Napoleonic Wars, 2

 National Cash Register Co., 231

 National City Bank, 308

 Nevis, 206

 New Granada, 114

 Nicaragua, early history, 138;
   present government, 140;
   area and population, 142;
   topography, 144;
   railways, 146;
   agriculture, 147;
   forests, 148;
   bananas, 149;
   coffee, 149;
   mines, 149;
   exports, 149;
   imports, 150, 151;
   currency, 152, 153;
   travellers’ tax, 153;
   cities, 154;
   steamships 154


 Ojeda, de, Alonso, 114

 Order blanks, 259


 Packing instructions, 316, 317–319

 Packing and shipping, 311

 Packing weights, 315, 316

 Panama (Republic of), early history, 139;
   present government, 140;
   area and population, 142;
   topography, 144;
   railways, 146;
   agriculture, 147;
   forests, 148;
   bananas, 149;
   mines, 149;
   exports, 149;
   imports, 150, 151;
   currency, 152, 153;
   travellers’ tax, 153;
   cities, 154;
   steamships, 154

 Panama hats, 101, 102, 111, 120, 123, 201

 Paraguay, 13, 32;
   discoverers and early history, 57;
   present government, 58;
   population, 58–60;
   area, 59;
   climate, 59;
   roads, 60;
   railways, 60;
   soil, 61;
   rivers, 61;
   yerba mate, 62;
   quebracho, 63;
   minerals, 63;
   woods, 63;
   cattle, 63;
   money, 64;
   credits, 64;
   exports, 64–387;
   imports, 65, 387;
   travellers’ tax, 65;
   cities, 65;
   shipping goods, 66

 Passports, 265

 Pearls, 134

 Perry, Commodore, 213

 Peru, 13;
   early history, 91;
   Chumus, 91;
   war with Chile, 92;
   government, 93;
   area, 93;
   population, 94, 95;
   railways, 96;
   mines, 99;
   petroleum, 100;
   exports, 100, 102;
   Panama hats, 101;
   currency, 101;
   travelers’ tax, 103;
   principal cities, 104;
   exports, 103–388–389–390;
   imports, 103

 Peruvian Balsam, 148

 Peruvian Corporation, Ltd., 96, 97

 Petitgrain, oil of, 62

 Petroleum, 23–40–53–99–100–103–110–132–133

 Philippines, 1–2

 Pizarro, 67, 79, 91, 106

 Plagiarism, 343

 Population, 5, 10, 14

 Porto Rico, 1, 2, 5;
   early history, 186;
   climate, 187;
   roads, 187;
   government, 187;
   exports, 188;
   principal cities, 189;
   steamship connections, 190, 204

 Ports in Latin America, 313

 Portugal, 223

 Postage to Latin America, 263, 264

 Power of Attorney, 279

 Preferential duty, 25, 26, 208–210


 Quebracho, 40, 41, 63, 64

 Quinine, 102


 Raleigh (Sir Walter), 192

 Ratings of merchants, 305

 Reciprocal opportunities, 347, 348, 350, 351, 352, 353, 354

 Reciprocity, 345

 Redonda, 206

 Registration of Trade Mark, 279

 Religious Processions, 250

 Rubber, 20, 87, 96, 111, 120, 183


 St. Barts (French possession), 205

 St. Croix (Danish West Indies), 202, 203

 St. John (Danish West Indies), 202

 St. Kitts, 206, 209

 St. Lucia, 206, 210

 St. Martins, 205

 St. Thomas (Danish West Indies), 202, 203, 204

 St. Vincent, 206

 Salesmen and Customer, 242

 Salesmen’s requirement, 242

 Sample cases for Latin America, 260

 Santo Domingo, 5;
   early history, 176, 177;
   revolutions, 177;
   present government, 177, 178;
   area, 178;
   railways, 179;
   exports, 179;
   imports, 179;
   moneys, 180;
   American Bank, 180;
   travelers’ tax, 180;
   principal cities, 180;
   steamships, 180

 San Salvador, early history, 139;
   present government, 140;
   area and population, 141;
   topography, 144;
   railways, 145;
   agriculture, 147;
   forests, 148;
   coffee, 149;
   mines, 149;
   exports, 149;
   imports, 150, 151;
   currency, 152, 153;
   travellers’ tax, 153;
   cities, 154;
   steamships, 154

 Shipping instructions, 319, 320, 321

 Silver standard countries, 300

 Singer Sewing Mch. Co., 230

 “Sirroche” (mountain sickness), 81

 Sisal (see Henequen), 163

 Solis, de, Juan Diaz, 31, 49

 Souza, de, Thome, 15

 Spain, 1, 2, 168, 177, 192, 223

 Spanish banks, 290

 Standard Oil Co., 230

 Subway, 356

 Sugar, 19–57–62–102, 110, 171, 179, 188, 194, 195, 196, 203, 207, 208,
    209, 210

 Swiss banks, 290


 Tagua (nuts), 110, 111, 120, 123, 353

 Tannin, 41

 Thefts in Custom House, 270, 328

 Theft en route, 328

 Tin, 86, 87

 Tobacco, 19, 53, 62, 64, 171, 179, 188

 Tobago, 205

 Tonka (bean), 132, 135

 Torquemada, 268

 Trade commissions, 214

 Trade development, 212

 Trade Marks, 276

 Travel in Latin America, 251

 Travelers’ Tax, 174, 180, 189, 194, 245

 Trinidad, 205, 206, 207

 Tungsten, 99


 United Fruit Co., 121, 364, 365

 United States attitude toward Latin America, 274;
   indifference toward investments, 359–362

 Uruguay, 13;
   discoverer, 49;
   early history, 49;
   war with Brazil, 50;
   government, 50;
   area, 50;
   climate, 51;
   population, 51;
   colonists, 51;
   rivers, 52;
   ports, 52;
   railroads, 52;
   agriculture, 53;
   minerals, 53;
   forest lands, 53;
   grazing lands, 53;
   packing houses, 53;
   cattle census, 54;
   money, 54;
   exports, 55;
   imports, 55, 391–392;
   travellers’ tax, 55;
   cities, 56;
   steamships, 56


 Vacuum Oil Co., 230

 Valdivia, Pedro, 67

 Vanadium, 99–102

 Velasquez (Diego), 168

 Venezuela, 8–13;
   early history, 126;
   boundaries, 127;
   government, 128;
   population, 129;
   rivers, 129, 130;
   railroads, 131;
   asphalt deposits, 132;
   cattle, 133;
   minerals, 133;
   money, 134;
   exports, 134;
   imports, 135;
   principal cities, 135;
   commercial fees, 135;
   steamships, 136, 192, 200, 219, 220;
   imports, 393–394–395

 Virgin Islands, 206


 Windward Islands, 206, 207

 Wolfrain, 23–40–88

 Woods, cabinet and dye, 21


 Yellow fever, 254–371–373

 Yerba mate, 19, 62, 64

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




                          TRANSCRIBER’S NOTES


 1. Silently corrected typographical errors and variations in spelling.
 2. Retained anachronistic, non-standard, and uncertain spellings as
      printed.
 3. Enclosed italics font in _underscores_.





End of Project Gutenberg's Selling Latin America, by William E. Aughinbaugh