QJorncU Uttiueraitg ffiihrarg atljara, Nem fork BOUGHT WITH THE INCOME OF THE SAGE ENDOWMENT FUND THE GIFT OF HENRY W. SAGE 1891 Cornell University Library HC 165.K77 South America: an industrial and commerc 3 1924 021 026 905 Cornell University Library The original of tliis book is in tlie Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924021026905 SOUTH AMERICA AN INDUSTRIAL AND COMMERCIAL FIELD THE SOUTH AMERICAN SERIES Detny 8t'o, cloth. )/i. CHILE. By G. F. ScoTT Elliott, F.R.G.S. With an Introduction by Martin Hume, a Map, and 39 Illustrations. (4tli Impression.) / z. PERU. By C. Reginald Enock, F.R.G.S. With an Introduction by Martin Hume, a Map, and 72 Illustrations. (3rd Impression.) ^ 3. MEXICO. By C. Reginald Enock, F.R.G.S. With an Introduction by Martin Hume, a Map, and 64 Illustrations. (3rd Impression.) 7 4. ARGENTINA, By W. A. Hirst. With an Intro- duction by Martin Hume, a Map, and 64 Illustrations. (4th Im- pression.) ^ 5. BRAZIL. By Pierre Denis. With a Historical Chapter by Bernard Miall, a Map, and 36 Illustrations. (2nd Impression.) - 6. URUGUAY. ByW. H. KoEEEL. With a Map and 55 Illustrations- - 7. GUIANA: British, French, and Dutch. By James Rodway. With a Map and 36 Illustrations. 8. VENEZUELA. By Leonard V. Dalton, B.Sc. (Lond.), F.G.S., F.R.G.S. With a Map and 36 Illustrations (2nd Impression.) ^ 9. LATIN AMERICA: Its Rise and Progress. By F. Garcia Calderon. With a Preface by RajTnond Poincare, President of France, a Map, and 34 Illustrations. (2nd Im- pression.) 10. COLOMBIA. By Phanor James Eder, A.B., LL.B. With 2 Maps and 40 Illustrations. (2nd Impression.) ■^ II. ECUADOR. By C. Reginald Enock, F.R.G.S. 12. BOLIVIA. By Paul Walle. With 62 Illustra- tions and 4 Maps. 13. PARAGUAY. By W. H. KOEBEL. -14. CENTRAL AMERICA. By W. H. Koebel. "The output of the books upon Latin America has in recent years been very large, a proof doubtless of the increasing interest that is felt in the subject. Of these the South American Series edited by Mr. Martin Hume is the most noteworthy." — Times. " Mr. Unwin is doing good service to commercial men and investors by the production of his ' South American Series.' "—Saturday Review. " Those who wish to pain some idea of the march of progress in these countries cannot do better than study the admirable ' South American Series.'" — Chamber of Commerce Journal. SOUTH AMERICA AN INDUSTRIAL AND COMMERCIAL FIELD By W. H. KOEBEL Author of "Central America," "Uruguay," "Paraguay,' " Modern Argentina," " The South Americans," ' Modern Chile," etc. WITH 23 ILLUSTRATIONS LONDON FISHER UNWIN LTD. ADELPHI TERRACE First published in 1918 {All rights reserved) CONTENTS CHAPTER I INTRODUCTION . . . , . -I/ Situation of the world's commerce to-day — Influences of the last two decades — Aim of German trade — PossibiUties of a commercial and industrial war — The results of victory — The industrial situation of Britain to-day — Some gratifying circumstances — The machinery of industrial prosperity — Needs of the future CHAPTER II INVESTMENTS AND INFLUENCES . . . -23 British investments in South America — Their extent in comparison with those of other countries — Some difficulties in the estimates — The nature of the British interests in South America — Interests direct and otherwise — The Southern continent as a field for investment — The situation of British manufacturers and merchants — The great indus- trial undertakings of the continent — Influences which have affected British trade in the past — Task of the Empire — ■ Some evidences of commercial slackness during the past quarter of a century — Great Britain's chief competitors — Policy of the Prussians — -The motives of German trade — The blending of the Prussian military and commercial parties — Potsdam as an encourager of commerce — German trade as a direct agent of destruction — Some examples of this — Desperate condition of the German commercial world — The counterpart of the U-boat poUcy in the mer- cantile world CHAPTER III SOUTH AMERICAN COMMERCE . . . -34 Some old-fashioned ideas concerning commerce with South America — Policy of the Spanish regime — Cost of necessities S CONTENTS and luxuries in South America from the earliest days of its colonization — Present conditions of supply and demand — Modern needs of the principal South American towns — The United States and South America — Influences of the war on the South Americans — The increase of initiative — Some laws attending the accumulation of wealth — Characteristics of some types of wealthy South Americans — Commercial distinctions between the northern and southern halves of the continent — Effects of the dislocation of commerce — ■ Respective situations of the townsman and the food- producer CHAPTER IV INTERNATIONAL RELATIONS . . . . ,42 Gilbertian situation brought about in South America by the outbreak of war — German agents as canvassers for British goods — How this procedure is discouraged — The compsira- tive efficiency of the Black List — High repute of the average British merchant in South America — The palabra Inglesa — Results of more than a century of testing — Some questions of sample and deUvery — The commercial relations between the United States and South America — Some complaints on the part of the North Americans — Some mutual misunder- standings — An instance quoted concerning want of tact — United States trade — Situation of other countries — France and Belgium — The manufactures of South America — Reasons why these have not been more rapidly developed in the past — Questions of agriculture and population — Chief markets for British goods — The Madeira diving boys as experts in international industrial development CHAPTER V COMMUNICATIONS . . . . . .56 The practical aspects of South America as a commercial field — Main commercial divisions — The areas of the north and south^ — Brazil as a field for British enterprise — Favourable prospects ofiered — Development of British commerce in Central Brazil — The diSerence between Brazil and Spanish- speaking Latin America — Questions of language — Respective influences of customs — Cost of articles in Brazil — -Tastes of the various sections of the Brazilians — The northern and southern areas of the great RepubUc — Distinctions in their humanity, nature, and cUmate — Their importance as mercan- CONTENTS tile fields — Advantages and disadvantages of Northern Brazil — Inconveniences and dangers of the " back-blocks " — The perils of climate — Present industrial situation of the Amazon regions — The difficulties of Para rubber — The com- petition of the East — PossibiUties of the fertile Amazon soil — Trade in the north — The mercantile situation of the south of Brazil — Wealth of the populous provinces — Demands of the modern large towns — Railway service in the south CHAPTER VI SOME CHARACTERISTICS OF THE FIELD . . .69 Spanish-speaking South America — Methods of communica- tion compared between the northern and southern areas — Influence of the Panama Canal — Communications of the interior — Some hints to the traveller — Wide scope of the modern railways — Admirably managed hnes — Some ques- tions concerning hotels — The lesser- known lands — Their situation and possibihties — The keenness of international competition in the southern Republics — Differences in the demand between the populous and remote regions CHAPTER VII THE TENDENCY OF ENTERPRISE . . . -75 Some characteristics of the South Americans — Enterprise of the present generation — Some typical methods of business — Northern and southern commercial pecuharities contrasted — Methods of advertising^Tastes of the South American — Phenomena accompanying the rise of new lands — Weaknesses of the nouveaux riches — How to make ruins — Some instances of European ignorance of South America — Misconceptions concerning southern hfe and travel — Some necessary ele- ments of commerce — TraveUing by rail — Characteristics of some of the inhabitants of the remote districts — The cosmo- poUtan communities of the large towns — Enterprise shown by the various nationalities CHAPTER VIII THE WORKINGS OF BRITISH CAPITAL . . .86 British capital invested in South America — The chief industries which it has served to found — Some circumstances CONTENTS concerning dividends — An example of real profit and arti- ficial losses — Disadvantages under which railways laboured in the old days — Revolution and industry — The association between South American politics and the interests of British shareholders — Labour problems of South America — Pohtical views on the question of labour — Problems of the present day — Change in the status of South American pohticians — The democratic atmosphere of the South — Temptations of a popular government — Tendencies of the currents of sympathy — -Views of certain sections concerning British railway companies — An Argentine deputy's speech quoted — Prob- lems concerning the remuneration which the British com- panies are entitled to — Views of Bartolom6 Mitre in 1861 — The great Argentine quoted — His testimonial to the bene- ficent works of British capital CHAPTER IX SOME COMPARISONS IN INDUSTRY .... I05 Some aspects of the general South American industrial and commercial situation — Demands of the Latin continent — The motor industry — Possibihties of this — Figures showing the importation of cars into Argentina — Countries best suited for the automobile — The various types of highways — The South Americans and the motor habit — Demand for motor-boats — Enormous fields for these in the Amazon and River Plate systems — Development of South American roads — Questions of labour — Road-work in the remoter Repubhcs — The possibilities of aeroplanes — Country best adapted for these — South America and the shipbuilding industry — River steamers — The demand for railway material — Quantity of this imported by the various Re- pubhcs — Agricultural implements — Pohcy of the British manufacturers — Some comparison between these and North American and German methods — Principal markets for agricultural machinery — Some details concerning the respective situations — Mining machinery — ^Where this is required CHAPTER X NEEDS OF THE CONTINENT ..... II7 The coal industry — Importations of coal into South America — Great Britain as the largest exporter — Economic conditions which govern this article — A national asset — South America CONTENTS 9 PAGE and foreign timber — Importation of furniture — Lubricating oils — Chief fields where these are required — The glass industry — The situation concerning the importation of this into South America — Filters — The ubiquitous need for these — -Water-power in South America — The principal sources of this — Importance of the FaUs — The Iguizu and Victoria Falls — The paper trade in South America — Its rapid develop- ment — Importance of South American enterprise — The importation of books — Competition in the paper trade — An instance where energy was lacking CHAPTER XI NEEDS OF THE CONTINENT {continued) . . . 128 The live-stock industries of South America — Their importance — Favoured position of Great Britain as the exporter — Argen- tina as a Uve-stock breeding country — Pedigree stock in the South of the continent — Important requirements — Various breeds of cattle, sheep, and horses favoured in the Southern Republics — Situation of the Centre and of the North of the continent — Increase of the areas of the pastoral industry — Some experiments in the introduction of pedigree stock — Figures showing the importation into Argentina — British saddlery — Effects of the increasing population of South America — Market-gardening and the seeds in the temperate regions CHAPTER XII QUESTIONS OF FINANCE AND DEMAND . . . I37 " High finance " — Loans and banks — Importance of the various British financial institutions in South America — A quotation concerning the banking situation — Advancing money on land — Insurance enterprise — Laws governing the local branches of British insurance companies — Financial dis- tinctions between the Federal and Provincial Governments of the various Repubhcs — Some aspects of this that are of interest to investors — Opportunity for hotel enterprise in South America — The South American as a hotel-keeper — Traditions inherited from the Iberian Peninsula — Pecu- Uaiities of hotel Ufe in the remote centres — The modern hotel in the larger cities — Demands of the South American in this respect — Promise of the enterprise — The question of clothes in South America — Itinerant Parisian dressmakers — • Chief centres for male and female clothes — Average cost of 10 CONTENTS PAGB these — Demand for furs in the South — Importation of boots — Countries generally concerned — Local tastes — The perfumery trade — Its importance in South America — Some figures showing the quantities used — The question of exhibitions — The possibilities of floating exhibitions — Circumstances which it is necessary to bear in mind in considering these — Situation of the chief South American commercial towns — The question of South American com- mercial agencies in other parts of the world CHAPTER XIII MERCHANDISE AND COMMERCIAL TRAVELLERS . • I5I The commercial traveller in South America — Questions of licences and taxation — Differences in this respect between the Federal State and the provinces — Expense of living in South America — High prices not necessarily a disadvantage to the commercial man — Some axioms in trade — South America as a continent of rapid changes in customs tariffs and commercial regulations — Some characteristics of the South American purchaser — Travel facilities in South America — Modern extent of the railways — Some inter- national routes which are now possible — Questions of in- voices and local currency, weights and measures — Advan- tages of employing the latter — Some appeals for the display of greater enterprise in British trade — Quotations from Consular Reports having reference to this CHAPTER XIV OCCUPATIONS OF THE BRITISH .... 161 Situation of a British subject proceeding to South America in search of employment — The " Loco Inglez " — His personaUty as pictured by the South American mind — Early records of the British in South America — Occupations first undertaken by these after the declaration of Independence — The eventual discovery of the most fitting walks of life — The question of the most suitable present-day occupations for the British in South America — Types of men who are not suited to the continent — Pastoral occupations — South America no place for the unskilled British labourer — Occupations of the town and of the country — The openings in the mercantile com- munity — Possibihties for the engineer — -Occupations on the land — Life on the estates of the Southern Republics — The Mayor Domo — A description of his life — Present-day rela- CONTENTS 11 tions between capital and labour in South America — The trend of private firms towards amalgamation- — Gigantic scale of modern enterprises — The efiect of this on the meat trade and elsewhere — The opportunities farther afield CHAPTER XV INTERNATIONAL TRADE ..... I74 Survey of British trade with South America — Questions of statistics and their dates — Argentina as one of the principal British markets in South America — A RepubUc of large cities — The importation of iron and steel — Artesian wells — Agricultural implements — Argentine foreign trade — Im- ports — Principal articles of importation in 1915 — Argentine international trade — Statistics concerning this — Principal ports of the Argentine Repubhc — Railway Progress— Sta- tistics affecting the Argentine meat industry CHAPTER XVI BRITISH INTERESTS IN THE VARIOUS REPUBLICS . 202 British interests in Brazil — Principal British exports to the RepubUc — Favourable opportunities offered by the situation — A Consular opinion — Some hints as regards modem Brazilian commerce — ^Various types of competition — Imports of iron and steel — Prospects of the machinery industry — ^Value of machinery imports — Manufactured iron and steel goods — A quotation from the Times Trade Supple- ment — Brazilian trade statistics — Principal countries con- cerned with exports and imports — Tables showing development of Brazilian trade — Some provincial statistics — Sao Paulo — The port of Santos — The ports of Sao Fran- cisco, Santa Catharina, and Pernambuco — -Table showing imports into Pernambuco — ^Various countries involved — Shipping of Pernambuco — ^The ports of Alagoas, Maceio, Ceari, and Cabedello — Principal imports of Pard CHAPTER XVII RITISH INTERESTS IN THE VARIOUS REPUBLICS (continued) 25 1 British interests in Chile — The nitrate industry — Pubhc enterprises — Chief British exports — Table illustrating recent Chilean imports — Volume of trade of the various countries 12 CONTENTS concerned in this — Imports into Iquique — Imports into Coquimbo — Shipping of the ports of Coquimbo and Anto- fagasta— Shipping of all Chilean ports — Of Valparaiso — List of customs houses, etc. — Comparative importance of the various ports — The British interests in Peru — A favourable situation — The Peruvian Corporation — Trade of the British Dominions with Peru — Imports from India, Hong-Kong, Australia, and Canada— Statistics concerning the chief trade of Peru — Value of the various imports — Countries chiefly concerned in the trade — Their respective shares — Tables of values of the principal goods imported — Return of British shipping in the port of Callao CHAPTER XVIII BRITISH INTERESTS IN THE VARIOUS REPUBLICS {continued) 272 British trade with Paraguay — Some questions of competition — Values of the principal articles imported — Countries con- cerned in the trade — Tables showing nature of goods re- quired — Total imports — British trade with Uruguay — Principal objects exported — An extract from a Consular Report — Sound advice concerning the methods of commercial procedure in Uruguay — A question of agencies — Uruguayan imports — Shipping of the port of Monte Video — British inter- ests in Venezuela — Competition in other countries — Principal classes of goods involved — The British interests in pubhc works — Local regulations — A field of general industries — Cattle breeding — Circumstances concerning motor-cars — Chief imports and exports — Nature of the imports — Ciudad Bolivar — Imports and shipping of the port CHAPTER XIX BRITISH INTERESTS IN THE VARIOUS REPUBLICS (continued) 29I British interests in BoUvia — Proportion of British trade to the whole — Unsatisfactory situation — Possibilities of increase — Questions of competition — Opinions of British Consuls — Technical notes and hints — Commercial travellers — Objects of which the country has chief need — Financial promise of Bolivia — Transport — Tastes of the inhabitants — The mining industry — Demands that will follow the financial prosperity of the country — Bolivian importations — Tables showing the nature of these — British interests in Colombia — Railways- Chief British exports — Importations of the various ports and frontier towns — Values of the goods imported — Proportions CONTENTS 13 PACE of the various countries concerned — British trade with Ecuador — Favourable position of the United States- Conditions of Ufe in the country — Some social and financial aspects — British companies — Values of the Venezuelan imports, with the countries of origin — Comparative list of imports — Trade of the various Ecuadorian ports — Return of British shipping at the port of Guayaquil CHAPTER XX TRADE STATISTICS ...... 3I5 Statistics concerning trade and development of South America during recent years — -Railway mileage — Development of Argentine agriculture — Cattle stock of the world — Com- merce of America — ^Total trade of the United Kingdom with the South American Republics — Trade of the United States with the South American Republics — Internal trade of Argentina, Brazil, Chile and Uruguay — International trade of Argentina, Brazil, Chile, and Uruguay CHAPTER XXI CURRENCY, WEIGHTS, MEASURES, ETC. . . . 33O Currency, weights and measures, chief towns, populations, etc., of the various Republics CHAPTER XXII METHODS OF THE RIVAL POWERS .... 34I Some salient features of the British commercial situation in South America — Firm structure of British trade — PoUcies of Great Britain and Germany diametrically opposed — Work of the various European nations in the War of Liberation — Sentiments of the British Cabinet towards the Latin patriots — The early South American leaders — A remarkable document — The foresight of genius — Early cordiahty between the British and the South Americans — Questions of mutual benefit — The Prussian policy — German capital as a horse of Troy — Prussian ambitions regarding South America and the use to which the fruits ot German 14 CONTENTS TJlGR commerce were put — The policy of Potsdam — Danger of the Prussian military missions — The revelations in North and South America — Procedure of German agents in the Western world- — Influence of the missions — A partnership between German military and commercial forces — Policy concerning emigrants — The British in South America — Work achieved by them — German methods of advertising — Some instances INDEX 357 ILLUSTRATIONS FACING PAGE BUENOS AIRES MANSION . . . 24 A RIVER PLATE FARM . . 32 GRAIN ELEVATORS : BAHIA BLANCA . 40 PLAZA CONSTITUCION, MONTEVIDEO . . . '4^ ON THE ARGENTINE-TRANSANDINE RAILWAY . . ^, O RAILWAY ENTERPRISE IN PERU. 15,865 FEET ABOVE SEA- LEVEL . . . . . 64 SUGAR-CANE CUTTING ^6 THE INCEPTION OF INDUSTRY . 104 UNIVERSITY, CARACAS . . • 1 20 RAILWAY STATION, PARANA . . 12S RAILWAY SHED, ARGENTINA . . . . I36 THE LEMCO WHARF AT COLON . . . . I44 NITRATE WORKS . • . 1 68 PAITA . .... 16S RIO DE JANEIRO . ■ ■ ■ 208 BAHIA . ... 220 AERIAL RAILWAY AT IRON ORE MINES OF COQUIMBO . . 256 SCENE ON THE LA GUAIRA AND CARACAS RAILWAY, VENEZUELA ....... 280 »5 16 ILLUSTRATIONS PACING PAGE scene on the la guaira and caracas railway, venezuela ... . 288 statue of christ on the argentine-chilean frontier . 320 "railhead" ....... 328 salaverry ........ 336 PIURA ... .... 336 SOUTH AMERICA CHAPTER I INTRODUCTION Situation of the world's commerce to-day — Influences of the last two decades — Aim of German trade — Possibilities of a commercial and industrial war — The results of victory — The industrial situa- tion of Britain to-day — Some gratifjdng circumstances — The machinery of industrial prosperity — Needs of the future. There comes a time in commerce — which, after all, is part of the life of an overwhelming multitude of men — when the tide of fortune is at the flood. It is needless to paraphrase Shakespeare in order to impress the point. The difficulty with so many men is to distinguish between the flood and the ebb. It is clearly owing to the possession or the lack of this power of judgment that fortunes and reputations are made and lost. It will sound both pompous and unnecessary to explain that it is the lowest ebb which precedes the first swellings of the flood. Yet when this sort of metaphor is applied to a definite case and period, there is some excuse for it. It would decidedly seem that the condition of British trade with South America at the present moment justifies it. No faculty is more dangerous just now than that of the prophetic instinct. The changes which the end of hostilities will bring into what is termed every- day life are not even yet to be realized to the fuU, 2 " 18 SOUTH AMERICA and there are very few people who have attempted to look beyond the kaleidoscopic scenes of the present — which is probably just as well, for an appalling waste of the power of speculation would otherwise have been entailed ! Nevertheless, if it be possible to judge at all from the rapidly changing circumstances of the present day, it would seem that the promise of the near future has never been equalled in the annals of British trade. Whether in six months or in six years from now, oppor- tunities will offer themselves of a kind which no nation can dare to expect twice in the course of its existence. I have endeavoured in a later place in this volume to explain the unwholesome influences which for a couple of decades and more have interfered with the true prosperity of the international trade with South America — and, incidentally, with the remaining quarters of the world as well. I have tried to make it clear that the policy of German commerce has been as destructive in its way as has that of its submarines. The aim of modern German trade, indeed, has been to destroy the commerce of other nations, at no matter what immediate cost to itself. The wider the destruc- tion and the greater the clearance, the more profitable would be the volume of the German trade which was to have occupied the place of the wrecked international organization of the world. But, until this was to be achieved, the process was nothing less than a bitter form of commercial and industrial war, in which each advantage was dearly bought, and in the course of which many of the orders booked from customers, instead of representing a fair gain to the firm that obtained them, stood for a loss in finance, power, and energy, just as the effects of the firing of a 17-inch gun are not to be achieved without an important outlay of all these assets. There may be some who will contend 'that the INTRODUCTION 19 appearance of this book is premature, and that affairs of commerce and peaceful industry may well wait until a complete re-establishment of normal times. This contention is well enough in its way, and that it is reasonable up to a certain point there is not the faintest doubt. At the same time, it is clear that a nation or a man who would succeed at the present juncture mu^t show a versatility and a state of pre- paredness such as will obviate a pause of the kind which more than once has endangered the very existence of the British Empire during the past few years. It would be rash, in fact, to lose sight of the pos- sibiUty of a commercial international war following immediately on the heels of the struggle of arms. It is certain that the evidence of this will not show on the surface until very many months after the con- clusion of peace. It is the hope of every one of the Alhed Powers that the military strength of Prussia will be so utterly crushed at the conclusion of hostili- ties that its overbearing autocracy will never again be able to display the arch-insolence of that aggression that brought about the present conflict. Humanly speaking, the probabilities are in favour of this. Never- theless, it is necessary to take every possibility, as far as it can be foreseen, into consideration. Even in the case of a complete military victory, for instance, it by no means follows that an acute and bitter struggle between the commercial elements of the two nations will not ensue when the interval of exhaustion has been overcome, notwithstanding the fact that Germany must find herself crippled in every branch of her industries to an extent which very few of her own people would seem to realize, and that doubtless is being designedly kept secret by the few among them who are in possession of the facts. It would seem probable, however, that a complete 20 SOUTH AMERICA victory of the kind most righteously demanded by the great allied democracies is only to be obtained by the employment of a still greater force than that of arms, and by the co-operation of the democratic elements (provided that these are shown to exist in sufficient quantities) of the German people themselves. Failing this, Great Britain will assuredly continue to be faced by a rival, sullen and enraged at the failure of her military plans of conquest, who will throw into the commercial fight every ounce of that energy which she had before flung into her preparations for war. In such a case, there is not a doubt but that this commercial threat will be a formidable one, and, in- deed, there is no reason to suppose that its enterprise will not be even more gigantic than was the German mercantile campaign before the war. There is no reason, however, to regard even such a possibility as this with any real alarm ; for in all her history Great Britain has never been in a more favourable position to cope with competition, however intense, on the part of other nations. Even the dark cloud of the war has not been en- tirely devoid of its silver lining. The tragic task- master has taught the British nation how to take the strain of pressure from without, and how to throw the whole of its energy into the gigantic needs of the production which the occasion has demanded, if the nation were to survive. As a result of this, feats in productiveness have been achieved which would have been deemed impossible in the easy, piping days of peace. It is, indeed, difficult to regard the industrial situation of Britain to-day without a profound sense of amazement. In many respects it is intensely gratifying as regards the present, but at the same time it reveals a humiUating picture of the past ! When we have time to reflect calmly and at our leisure— which fortunate condition of affairs will undoubtedly not come about until a long time from now — there INTRODUCTION 21 will be much to wonder at in the fact that, with no less than five millions of the flower of Great Britain's manhood under arms, the remainder of her male population, aided by a great army of women workers, have succeeded in producing an industrial output greater than was the case when the full strength of the male population of workers was at work. It is true that in order to effect this the strain upon the workers has in many quarters been too severe to render it desirable to attempt to continue this splendid feat for too lengthy a period of time. For all that, the regular workers — a sufficently small remnant — who have been left behind in Great Britain, and those amateur substitutes who have taken the place of the millions who were called to the front, have stood, and are standing, the test with complete success. It must be admitted that there were very few who anticipated any such tremendous revelation of the full strength of the nation. And, mingled with the pride with which it should properly be regarded, there must be some uncomfortable heartsearchings concerning the period which preceded the war — when the nation and its leaders snored side by side. We see now (and it is not a little comforting to reflect that the situation was the result of an artificial chain of circumstances instead of that alleged national decadence which was wont to be spoken of with such easy tolerance) that there was no real reason why the control of the produce of the workshop, the factory, and the building yard should have been yielded with such extravagant generosity to the foreigner. We see, moreover, that it is possible for Great Britain to maintain her place amongst the foremost of the in- dustrial nations, although, of course, it would be foolish in the extreme to hope, in view of the altered com- mercial conditions of the world, that the practical monopoly which she enjoyed for so great a part of the nineteenth century could ever return. 22 SOUTH AMERICA This is surely not of the slightest consequence, provided that proper advantage be taken of a situation which may well lead to a period of industrial prosperity such as Great Britain has never experienced in her previous history. But in order to bring this about the power of these great new forces must not be allowed to hesitate or to pause in its application. In the old days the sword was beaten into the ploughshare — but much the same weapons now serve for both peace and war, and there is no reason at the present day for even this brief delay. If the war of soldiers is to be followed by the war of commerce, as is by no means impossible — and as will not be made clear until some time after the cessation of hostilities — then the mighty industrial force of Great Britain and her Dominions must be turned on to its proper objects before the echoes of the last cannon-shot have died away. It is possible that this day may not be so very remote after all, and if this volume furthers a state of preparedness that may result in even a single stray commercial victory over hostile competitors, it will not have been written in vain. CHAPTER II INVESTMENTS AND INFLUENCES British investments in South America — Their extent in comparison with those of other countries — Some difficulties in the esti- mates — The nature of the British interests in South America — Interests direct and otherwise — The Southern continent as a field for investment — The situation of British manufacturers and merchants — The great industrial undertakings of the con- tinent — Influences which have affected British trade in the past — Task of the Empire^Some evidences of commercial slackness during the past quarter of a century — Great Britain's chief competitors — Pohcy of the Prussians — The motives of German trade — The blending of the Prussian miUtary and commercial parties — Potsdam as an encourager of commerce — German trade as a direct agent of destruction — Some examples of this — Des- perate condition of the German commercial world — The counter- part of the U-boat policy in the mercantile world. The amount of British investments in South America is variously estimated. As is inevitable in such a case, experts are somewhat inchned to disagree in their computations of the total. Some idea of the magnitude of this, in any case, may be gleaned from the fact that reliable authorities have placed the amount of British capital invested in the vs^hole of Latin America as exceeding one thousand milhons sterling. This is a sufficiently vast total, and previous to the outbreak of the great European War it would have impressed the investigator with a sense of amazement. As it is, one calculates that it would suffice to keep Great Britain's share in the hostilities going for six months or so — a circumstance which tends to prove 24 SOUTH AMERICA how things which appear quite vast at one period are Uable at another to diminish in a curious fashion ! In any case, however, it is certain that no other nation can compare its financial interests in Latin America with those of Great Britain, although it is certain that those of the United States have lately been increasing in both a rapid and an important fashion. It is perhaps needless to explain that the difficulties in the way of detailed and strictly accurate computa- tion are great. So far as the public investments are concerned, nothing could be simpler. The capital workings of the great companies are easy to be fol- lowed. But these, after all, only constitute a part of the British interests in the Southern continent, although, undoubtedly, by far the greatest. There are, beyond these, the holdings of those numerous and wealthy communities that have embarked their capital privately in landed estate, and in various busi- nesses and occupations, the details of which are en- tirely their own affair, and which are frequently only to be guessed at by the outsider. It is owing to such factors as these that the inevitable tendency is for the total of British investments in the Latin continent to be underestimated rather than to be exaggerated. The nature of the British interests in South America is twofold. There is the direct interest, which com- prises not only a stake in one of the Southern Republics, but, in addition to this, an existence in the country and a sharing in the labours on the spot. The in- direct interest is that of the investor who places his money in one or other of the companies concerned with South America, and who stands to gain from the prosperity of the concern. In the indirect cate- gory, too, may come the merchant and manufacturer, resident in Great Britain, who looks to the South American market to buy a certain proportion of his goods. So far as the direct interest is concerned, there would INVESTMENTS AND INFLUENCES 25 seem very little cause for uneasiness. Here the English- man — whether he be concerned with the details of railways, tramways, transport in general, lighting or electric enterprises, mines, landed estate, or any other interest of the kind — has been tested, and has not been found wanting in the course of a century and more. Working side by side with the Latin population and with the varied and cosmopolitan representatives of so many other branches of the human race, he has the advantage of a wide outlook and of an experience on the spot without which very few satisfactory conclu- sions can be arrived at in dealing with South American affairs. In this respect the representatives of the British companies and those others who are in the Southern continent for their private concerns acquit themselves admirably, and show themselves well able to hold their own against international competition — a competition which is every year growing more keen. As regards the British manufacturers and merchants who carry on their business with South America from their offices at home, the situation has been by no means so satisfactory of recent years. The barometer of prosperity here, of course, is represented by the figures of the exports from the United Kingdom to the various Republics. It is true that the quantities of British goods thus exported have increased. Never- theless, in many instances the proportion of this increase, as compared with that of several other countries, leaves much to be desired. It seems only too clear that it is this section of the British interests, rather than the efforts of the British who are actually in South America, to which the utmost attention will have to be paid when the moment comes for the great markets of the South to be once more fully opened to the world's trade. So far as it is possible to judge of anything at all at the present moment, symptoms would not seem to be lacking that a serious effort will be made to retrieve 26 SOUTH AMERICA a situation that, before the outbreak of the war, had grown far more grave than the nation at large was willing to admit. Providing that the promise of this is realized — and there will be something very rotten in the state of Denmark if it is not — there is no doubt, to my mind, that the enterprise must be successful. Recent events should make it unnecessary to emphasize this point. The British trade with South America is, after all, subject to precisely the same influences as the other assets of the Empire. It is part and parcel of that great machine that, until the fateful August of 1914, lacked no oil, but merely a few more tons of life-giving coal. It does not need a particularly acute prophet to foretell that, unless every industrial and commercial nerve be strained towards improving the British position in South America, the consequences will not only be disastrous, but they will be felt with an extreme rapidity — for the present age is one where the consequences of actions are almost as swift as the means of locomotion. As the gigantic war proceeds on its appointed course, it becomes more and more evident that even from out of the greatest tragedy that the world has ever seen the inevitable amount of moral and even material good is being derived. One of the beneficial results that may be taken as a set-off to some of the grim figures on the other side of the ledger has been the shaking of the centre of the British Empire from out of its lethargy^a lethargy which, had it been per- mitted to continue, must have proved fatal to the most civilized Empire the world has ever seen. Whether this happy result could not have been achieved at a less ghastly cost is a point which need not be entered into here. It seems to me that from the enormous sacrifices which it has undergone, and which it is still under- going, the Empire will emerge cleansed, hardened, and once again properly nerved and fitted to fulfil INVESTMENTS AND INFLUENCES 27 its high destiny. At a later stage of this volume I have tried to point out that the regeneration which is at present in the course of demonstrating itself must be accompanied by ubiquitous results. These will by no means be confined to the moral and in- tellectual status of the nation ; for surely, in the ordi- nary course of events, the consequences must be vital to every branch of the national life, and must primarily affect the realm of ordinary and prosaic commerce. There is no doubt, as has already been said, that during the past quarter of a century British commerce has suffered from a certain lack of enterprise, a con- dition of affairs that has been eloquently rendered in the trade statistics of these years. There is, never- theless, a certain consolation at the back of these figures. In South America, as in nearly every other part of the world. Great Britain's chief competitor has been Germany ; and in South America, as in many other parts of the world, the Germans have succeeded in obtaining for themselves far too large slices of British commerce. It has become clear, I think, to everybody, by this time, that unless British trade is reorganized in the very near future, the consequences cannot fail to be disastrous to the country. At the same time, it is unlikely in the extreme that Great Britain will have to continue with the same species of competition that has caused so much damage at the hands of Germany during the past quarter of a century. This requires some explanation. It is becoming more evident every day that the system of German trading which has been brought into being during the last twenty-five years or so is of an entirely artificial order. In the minds of many, the various industrial situations of this period have been associated merely with the rival schools of Protection and Free Trade. We see now that there has in reality 28 SOUTH AMERICA been far more at stake than this. In order to make clear the British commercial position in South America, it is necessary to go into this question at some length. It is essential, too, to analyse the motives of that astonish- ing commercial campaign which was brought to an abrupt end by the Germans themselves in 1914. The Prussian policy has been made perfectly clear by her own statesmen and professors, notably by the arch- Junker Bernhardi, who urged that the nation should gather her riches from at home and abroad in order to prepare for the great aggression. For, says Bernhardi, " under conditions like the present the State is not only entitled but is bound to put the utmost strain on the financial resources of her citizens, since it is vital questions that are at stake." It is certain that from the beginning of the twentieth century onwards the logical results of this policy had become strongly accentuated. A hundred political and commercial Bernhardis have spoken with no uncertain voice on the subject. There is not the faintest doubt, in fact, that German trade has been harnessed to the chariot-wheels of the militarist Prussian Empire. It has been made to serve the interests of Potsdam almost as directly as the submarine, the poison gas, and those other weapons which have been so ruthlessly employed by the agents of Prussia. The policy of the recent German trade, as a matter of fact, has been entirely destructive. It has been faithfully based on the insane maxims of the Treitschkes, Bernhardis, and the other cranky and foaming brethren of the sword and of the pen. The very first aim of the subsidized German trader has been to destroy utterly the commerce of his neighbours, in order that — " ac- cording to the obvious desires of the German prophets and gods " — the wrecked trade of the inferior beings of this earth should be taken over by those whose extraordinary conceit would have been merely laugh- INVESTMENTS AND INFLUENCES 29 able in happier circumstances — the super-commercial folk of Prussianized Germany. We have heard much of the science of " dumping " and of its consequences to those to whom this pleasant process was applied. Until the recent withdrawal of the curtain there were many who refused to take this seriously at all. It is now clear that those who ignored this danger made light of one of the greatest perils with which the trade of Great Britain has ever been threatened. The South American field, moreover, was undoubtedly marked down as one of the chief scenes where the final acts of this grim commercial drama would have been worked out. Germany, in short, was prepared to spend her last penny but one in undercutting the prices of her trade rivals and in thus annihilating their commerce. She reserved the last penny for that long-premeditated military attack which should give her fuU control of the mercantile world, and thus bring to her the prac- tical monopoly of the various fields of the world's commerce, and not only this, but the ownership of the countries she had previously traded with as a foreigner. By this means all her outlay would have been returned to her a thousandfold. After all, this blood-and-iron policy of Prussia ended in what was virtually nothing less than the greatest gamble in the world's history. It was a gamble in which the high officials of Potsdam played with cogged dice, but even then failed to make a certainty out of what was, in the Hght of subsequent events, a mere chance. Having regard to the average Prussian mentaUty, it may safely be said that nothing less than vast issues of this kind would have induced the military party of Prussia to walk hand in hand with the represen- tatives of the commercial world, whom, deep down in their hearts, they spurned with as deep a contempt as ever before It was necessary to fuse aU the ele- 30 SOUTH AMERICA ments, if only for the time being, in order to complete the commercial raiding which was to forestall, and assist, the conquest by arms. The operation was a perfectly simple one. Realizing, with that curious mixture of shrewdness and common sense that the modern Prussian seems to add to his hare-brained and savage philosophy, that no nation of the present day could maintain its place by the side of its neighbours without the aid of commerce, the Kaiser, overcoming, as has been already said, the complete contempt of his class for anj^thing connected with trade, made advances towards the leaders of the German commercial world, who, as flattered as they were amazed, lost no time in flinging themselves and their possessions into the arms of condescending royalty. The consequence was that the leaders of German trade, enticed into this new and unexpected alUance, became as servile in their admiration of this astonish- ing Kaiser as any of his titled officials — as even those who literally staggered under the weight of the Orders which were showered upon them for services the nature of which, it has been said, was quite incomprehensible to the outer world. One of the first results of this compact was that the German diplomatic service was given orders to assist in every possible way the advance of German trade ; for by doing this they were adding to the store of shekels which was to provide the financial sinews for the day of the world conquest which was to come. The flow of State subsidies to commerce and shipping became a vast and swelling river, and it was by means of this that so many branches of foreign competitive trade were destroyed. But it was clear that a policy of this sort could not endure for ever. A nation can succeed in rooting up the work of its neighbours ; but an act such as this does not in itself suffice to support the aggressive INVESTMENTS AND INFLUENCES 31 nation. The Germans were the very last to be de- ceived by the situation which they themselves had brought about. It is true that the income of the Germans had become enormous ; but, notwithstanding this, it is clear that the nation was living on its capital. The simplest sum in arithmetic will suffice to indicate thisj Let us suppose, for instance, that forty years ago, out of a shillingsworth of international trade with South America, the German share amounted to three- pence, and that of Great Britain to ninepence — it will be observed that, sacrificing all to the interests of clarity, the respective amounts are not intrinsically convincing ! We now arrive at the period when Ger- many, fired with ambition, begins the campaign which was to end in her complete triumph. The first step was undoubtedly to increase her trade, and to lose no time about it. Now, in the affairs of com- merce it is always possible to increase the mere volume of trade by papng for the increase — that is to say, by selling goods at rates that in themselves are un- profitable, or that may even show a loss. This is a crude fashion of explaining some very complicated processes ; but, roughly speaking, this was the policy that Germany decided to adopt. At the beginning of the campaign all things went as had been expected, and the increase in the trade of Germany was both marked and rapid. We may now pass on to the second stage. We will suppose that Germany has obtained her full half of the shil- lingsworth of South American trade. But she has paid threepence to secure it. The result up to this point is this. Great Britain's trade has been damaged to the extent of threepence, and in this respect the incomes of the two competing countries are now equal. But this is only so far as the gross incomes are concerned. In actual fact. Great Britain receives sixpence, and Germany is in 32 SOUTH AMERICA the same position as she was as regards net income before she laid herself out to obtain control of her additional share of the trade. Her income has risen from threepence to sixpence gross, the rise having been effected by the outlay of threepence. So much for the mere arithmetical side of the ques- tion. In the actual practical workings of the matter Germany's situation is far worse than it was before, since her expenses have augmented enormously, and her capital is being used up. The rest is largely a matter of time and pertinacity. Great Britain's trade and manufacturing power are being gradually but surely eaten away. On the other hand, it is clear that the German capital cannot bear the strain of the campaign for more than a certain time. This was the situation evoked by Germany, and these were the problems with which she was faced for some twenty years before the outbreak of the war. Unless within a certain period she succeeded in utterly destroying British trade, and in recouping her losses by the increase of her commercial fields and by the enhanced prices which a practical mono- poly would 5deld to her, she herself was bound to go under in the attempt. Indeed, as I have already pointed out, the German commercial poHcy resembled the campaign of the U-boats. It was of a kind whose depredations cannot continue indefinitely. The sole hope lay in the ex- pectation that their work of destruction would have accomphshed the definite ruin of the enemy before their own span of life was brought to an end. It is surely taking no unduly optimistic view of the case in supposing that the German species of com- mercial warfare will not be permitted to continue in the future as it was waged in the past. Indeed, were it to persist, it might be said that, so far as one of their chief aims was concerned, the Democratic Powers of the world had fought in vain. It is, in any INVESTMENTS AND INFLUENCES 33 case, extremely unlikely that, even were it permitted, the broken power of the Central Empires would be in a position to attempt its renewal for many years to come. With the removal of the shadow of this destruc- tive commerce, therefore, there should be renewed hope for the steady prosperity of British commerce in South America. Nevertheless, the possibility of circumstances such as these can in no sense what- ever justify a slackening of effort — which would inevitably bring about that destruction which the combined militarist and commercial policy of Potsdam failed to achieve 3 CHAPTER III SOUTH AMERICAN COMMERCE Some old-fashioned ideas concerning commerce with South America — ■ Policy of the Spanish regime — Cost of necessities and luxuries in South America from the earUest days of its colonization — Present conditions of supply and demand — Modern needs of the principal South American towns — -The United States and South America— Influences of the war on the South Americans — ^The increase of initiative — Some laws attending the accumulation of wealth — Characteristics of some types of wealthy South Americans — Commercial distinctions between the northern and southern halves of the continent — Effects of the dislocation of commerce — Respective situations of the townsman and the food-producer. In the commercial history of South America there has undoubtedly occurred a lengthy period when Europeans of all nations held that almost anything was good enough for the Southern continent. They acted, in consequence, on this theory in almost aU commercial enterprises. The origin of this easygoing state of affairs, so far as Spanish South America was concerned, lay in the situation which arose after the War of Liberation at the beginning of the nineteenth century. The Spanish colonial system, as a matter of fact, had accustomed the South American colonials to pay enormous prices for imported articles, the intrinsic value of which was comparatively insignificant. The history of these somewhat extraordinary transactions is by no means without interest. Spain, her own manufactures neglected in order to confine her energies to the exploiting of the wealth overseas, very soon found 3i COMMERCE 35 herself obliged to purchase from Great Britain the articles required by her colonies. It may be accepted without question that the British manufacturer of those days made a far larger profit on his output than is the case in these more strenuous times. Thus, from the very outset of her dealings with her colonies, Spain, owing to her own policy, laboured under a grave disadvantage. Having paid this profit, the Spanish merchant, possessing the clear monopoly of the South American trade, saw to it that his own proportion of the spoil was far greater. Finally, owing to the roundabout ofiicial method by which the goods were sent to the colonies, the cost of transport was very high. So it was that, by the time the South American received any object that he desired from Europe, he frequently had to pay as much as i,ooo per cent, for it above its cost price in Spain. The conclusion of the War of Liberation did not affect the situation in any marked degree ; the com- mercial views of the South American patriots were hberal in the extreme, but the risks run by both the foreign merchants and their goods were sufficient to add a large percentage to the original price of their wares. This state of affairs continued until the second half of the nineteenth century, when the first flush of a real prosperity began to dawn on a number of the Repubhcs. Even this did not alter the condition of affairs that obtained until then. From that time onwards until practically the end of the century the ever-increasing prosperity of the continent tended towards a some- what reckless expenditure of money, and the circum- stances now resembled in many respects those of South Africa in its palmiest and most extravagant days. In the greater part of South America, however, these conditions no longer obtain at the present time. The average wealthy inhabitant of one of the progressive 36 SOUTH AMERICA Republics is still comparatively indifferent to the cost of an object that he desires. But he has learned much since the latter half of the nineteenth century. He is determined now to obtain full value for his money, and when the rapidly growing number of nations who are competing to serve him is taken into consideration, there is very little doubt that he is beginning thoroughly to succeed in this. To make sure of success in South America, the cir- cumstances of the large towns should be considered as more or less on a par with those of London, Paris, and New York. Too many of the British commercial folk have insisted on considering these places from afar as mere semi-barbaric settlements in the back- blocks. This circumstance cannot be too strongly insisted upon ; for the minor compUcations which such mis- understandings have led to would make a volume in themselves. We have not yet done, however, with the tastes and commercial demands of the South American. It is only reasonable to suppose that in very few parts of the world will existence be continued in the same manner as it was led previous to the greatest struggle in the world's history. There is certainly no reason to consider that South America will form an exception to this inevitable rule. As it is, the influence of the war has already stamped itself clearly and indehbly on every Republic. From the South American point of view one of the first consequences of the outbreak of hostihties was the sudden stoppage of the flow of financial and in- dustrial supplies from Europe. In one sense it was as though the monetary supply had been cut off at the main, although, of course, the process was not quite so abrupt as that connected with the actual liquid. The United States hastened to provide what assist- COMMERCE 37 ance she could in both these directions, but her own resources had by no means remained uninfluenced, and Latin America had perforce to become accustomed to a trickle of supplies where she before had enjoyed the benefit of a broad river. Although this, of course, had the primary result of seriously handicapping many industries, there is no doubt that, on the whole, the circumstance was of the greatest benefit to Latin America. To indulge once again in metaphor, the process resembled the sudden removal of those air- bladders that support the novice swimmer, thus leav- ing him to sink or swim, according to the determina- tion of his own efforts. The South Americans, in common with the rest of the world, learned to do without many luxuries which they had learned to regard in the light of necessities. The nouveaux riches among their ranks gave up pro- ducing Pommery and Cliquot as a second course at afternoon tea ; the ladies have reconciled themselve? to automobiles of a less sumptuous and glittering order, and even the stock-breeders curbed their desire to create new records in thousands of sovereigns for their imported pedigree bulls, sires, and rams. As against the loss of these trimmings the lesson learned by the South Americans is an invaluable one that should produce its results for many generations to come. Thrown largely upon their own resources, the more progressive Republics have succeeded in doing for themselves many things which they would previously have relied on the Europeans and the North Americans to do for them. The initiative of the average South American has thus been largely increased, not only in the planning and organization of his own affairs— in which he has always exhibited a marked genius of his own — but in the carrying out of that which he had planned. Thus, there is no doubt that the commercial ! world that is interested in South America will find a inore 38 SOUTH AMERICA self-reliant community, or rather collection of com- munities, to deal with after the war than was its experience before that event. Eventually, however, it is reasonable to suppose that there will be a return to a certain proportion of those luxuries into which the first openings of the gates of the continent's great wealth had tempted the South Americans. Whether these will be in- dulged in to the same pitch as was the case in the hey-day of the great wave of prosperity that occurred at the beginning of this century is extremely doubtful — in the Southern Republics, at all events ; for there the influence of democracy was already beginning to make itself felt, and it is by no means improbable that the number of multi-millionaires will tend to decrease rather than to increase in the future, no matter how greatly the wealth of these various States may be augmented. It is just possible for this reason that the tastes of the average South American may be modified, but at the same time it is unlikely that they will be fundamentally altered. There are certain laws which seem inseparable from the rapid accumulation of wealth. It is a cold and sober fact that old-time Australian miners have placed five-pound notes in sandwiches, and have swallowed the precious paper jointly with the finan- cially valueless, but far more digestible, bread. The South American land or mine owner, who has become rich more or less overnight (an arctic night several times repeated !), has attempted nothing so crude as this. But a certain section of his company has laid down rules for itself which in their way are equally extravagant. This particular South American son of Plutus has very marked views concerning the uses to which his wealth should be put. He makes a point of having an unhmited quantity of the best of everything, and he has no objection to sharing his enjoyment of it in COMMERCE 39 company with a very large audience. Many of his number are well-bred and exceedingly pleasant men. At the same time there is a certain proportion of these wealthy men who do actually continue to indulge in a degree of ostentation that a generation ago gave the average South American a quite unjustified repu- tation, more especially in Paris, where the type abounded and abounds. When one of these found himself on a trip to Europe, the ordinary cabine de luxe of the R.M.S.P. was not good enough for him, sumptuous though such suites are wont to be. It was no un- common thing for him to have a couple of these knocked into one, and thus to possess a quite extensive marine flat for his voyage When he had brought on board his cow, bullocks, and sheep for his private milk, beef, and mutton respectively, and his collection of fowls and birds as additional assets for the table, he felt himself in some measure prepared to withstand the hardships of the floating hotel. It must be admitted that there were times when this extravagance had its ludicrous side. I myself have been present when cases of a vintage cham- pagne that, locally, could not have been worth less than a couple of sovereigns a bottle were sent out to regale the members of a brass band who were cattle- slaughterers in their less musical hours ! Such instances could be multipUed almost indefi- nitely. Even so, the result would not necessarily prove that there was more ostentation in South America than in Europe, although it would certainly make it clear that the means of gratif5dng the more exuberant tastes in the Latin American continent have been infinitely greater than in the Old World. I have enlarged upon this subject in order to demon- strate the necessity of stud5dng the local tastes in the affairs of commerce with South America. In normal times the average South American throughout the continent is not looking for cheapness. He is in search 40 SOUTH AMERICA of the best, and there are some who will acutely resent being offered any other quahty. As regards his actual tastes, it may be taken that these vary according to the latitude — just in the same way as do so many conceptions of morality and other things. In the temperate sovith the conventions will be largely those of the leading centres of Europe, and clothes and all other human conveniences and luxuries will be correspondingly severe. Nearer the Equator, on the other hand, the laws of the tropics will assert themselves with their unfailing power, and brilliant colourings and a wider extravagance of expression in general will take the place of the other. We may take a simple instance of this. The men of the smart world of the southern half of the continent are accustomed to be dressed according to the strict tenets of London ; the inhabitants of the hotter climes, generally speaking, will blossom out in colour schemes and patterns such as recall some of the remoter pro- vincial fashions in Latin Europe. It should be borne in mind, therefore, that it would be a serious error to offer the same type of an object which had many varieties to, say, Buenos Aires and to the city of Manaos, on the Amazon. This, however, is to approach the subject of techni- calities in too abrupt and early a fashion. Before entering into this province there are many generali- ties to be dealt with, and a few words further con- cerning the financial situation of some sections of the South Americans will not be out of place. There is no doubt that, although many of these have suffered severely from the dislocation of commerce, and although all, without exception, have experienced the gravest inconvenience, the majority have not been brought to that abyss of ruin which they had anticipated with a grim certainty on the news of the great convulsion in 1914. Indeed, as the war has followed its course, and as COMMERCE 41 the demands of Europe have increased, certain sections of the South American communities have undergone the same experiences as have some others in other parts of the world. This has certainly been the case with the producers of live-stock, cereals, and other objects of staple food. To their delight and amaze- ment these found out, httle by httle, that the new and abnormal state of affairs was bringing about a new and abnormal demand, which, of course, had the effect of sending the prices of their products up to a most profitable standard. Thus, at the present moment, it may be taken that aU breeders and agriculturists whose lands are situ- ated in those districts that have an easy access to the railroad and to the ocean have recently made money at a pace which has exceeded even that of any of the former booms in the days of peace. The business world of the cities, on the other hand, has small cause to congratulate itself on the altered condition of affairs, although, as I have explained, their lot has been by no means so evil as had been feared would be the case. Nevertheless, at the present time, so far as prosperity and the reverse are concerned, a distinct hue may be drawn between the farming communities and those of townsmen. CHAPTER IV [NTERNATIONAL RELATIONS Gilbertian situation brought about in South America by the out- break of war — German agents as canvassers for British goods — How this procedure is discouraged — The comparative efficiency of the Black List — High repute of the average British merchant in South America' — The palabya Inglesa — Results of more than a century of testing — Some questions of sample and delivery — The commercial relations between the United States and South America — Some complaints on the part of the North Americans — Some mutual misunderstandings — An instance quoted con- cerning want of tact — United States trade — Situation of other countries — France and Belgium — The manufactures of South America — Reasons why these have not been more rapidly deve- loped in the past — Questions of agriculture and population — Chief markets for British goods — The Madeira diving boys as experts in international industrial development. The war would seem to have brought about a situa- tion in certain of the South American Republics that affects the rival commercial interests of Great Britain and Germany in a manner that is almost Gilbertian. Before the outbreak of the war it was the business of the German agents distributed throughout the con- tinent to sell the manufactures of their countrymen, and to force the goods of other nationahties — more especially those of the British — from off the markets. The situation at the time of writing is that the iso- lation of Germany no longer permits that nation to export her goods overseas. But the German agents in South America remain, and they have no mind to lose their customers and their mercantile connec- tionp. In order to maintain their position, therefore, 43 INTERNATIONAL RELATIONS 43 they find themselves constrained to buy the mer- chandise of other countries and to supply the needs of those who have been accustomed to purchase from them by means of these. Needless to say that the source ot origin of practi- cally the whole of these goods is one or other of the Entente countries. A considerable proportion of these, indeed, hail from Great Britain. We are thus con- fronted by the amazing spectacle of those who had sworn to destroy British commerce busily, but re- luctantly, engaged in supporting it ! But the anomaly does not end even here. For the reluctance of the German agents in South America to purchase British goods is only equalled by the British unwillingness to sell to them. It is in order to prevent a commerce of this kind that a Black List has been instituted, which includes the names of German traders in South America, with whom it would be an unpatriotic act to enter into trade relations. This move has undoubtedly had the effect of preventing direct intercourse — and, indeed, there are very few firms, it is to be hoped, who in any circumstances would have cared to undertake this — but it seems very clear that it has not had the effect of preventing the goods from reaching those German agents whose intrigues it was intended to check. The difficulties, of course, of accomplishing this effectually are very great. The British agent, for instance, will undoubtedly take every precaution in his power to ascertain that the goods he has for sale will be delivered only to trustworthy firms. But the history of these goods does not end at that point, and by the time they have passed through four or five hands, it is by no means improbable that they will be found in the possession of some person who has not the least objection to passing them on at a price to one of the German agents. As a check upon these intrigues the Black List is 44 SOUTH AMERICA undoubtedly of service ; but as a complete antidote to the machinations of hostile firms it is inevitably lacking somewhat in force. But the mere fact that the goods in question are British, and that the German agents, in order to continue their commercial exist- ence, are forced to " push " the goods of the utterly detested islanders, is a circumstance by no means vi^ithout its own species of humorous consolation. A circumstance which comprises a genuine asset to the British manufacturers and merchants who are concerned with the Latin American trade is the high repute in which the character of the average British merchant is held in the southern continent. Palabra Inglesa is, after all, not an empty compli- ment. The word of an Englishman has been accepted as his bond from the very first period of South American independence. It is a matter of no small congratulation that this should have held good until the present day. This is in one sense all the more curious and the more satis- factory since there have been periods when several centres of South America were popularly looked upon as the refuges of defaulting and law-breaking British subjects, who had sought a haven in places where they were more or less secure from the annoying attentions of their own Governments ! There is no doubt that there has been no small exaggeration in the popular tales that were current towards the end of the last century concerning the character of many of the British residents in the large towns of the Latin continent. At the same time, it is not to be denied that there were a considerable number • who' sought the hospitality of such towns as Buenos Aires, Rio de Janeiro, and similar great centres, with the idea rather of starting a new life than of continuing the old, which, as a matter of fact, had contained some interludes disastrous to themselves. Even so, these immigrants of dubious commercial INTERNATIONAL RELATIONS 45 morality would very seldom seem ; to have taken ^^ad- vantage of the opportunities for sharp practice which they undoubtedly enjoyed, at a time when the Latin communities were far less versed in the seamy side oi commerce than is the case to-day. It is possible that, finding themselves in a land which abounded in opportunities for making money fairly, the temptation to continue their ilhcit prac- tices no longer appealed to these gentry — which theory, at all events, affords a satisfactory testimonial on the whole to the underlying worth of humanity — when untempted! However this may be, the fact remains that the reputation of an Englishman, I think it may fairly be said, stands as high to-day, after more than a cen- tury of testing, as it did when he first began to open up relations with the independent •. South Americans. This has been especially noticeable in such matters as those of samples and of the dehvery in bulk. The South Americans speak bitterly enough (and there is not the faintest doubt that they have sufficient cause) of the morality of the commercial representa- tives of various nations in this respect. But, except perhaps in some utterly isolated instances, complaints of this kind are pleasantly absent in the case of British commercial men. Indeed, I have had it remarked to me before now by South Americans themselves, that in the case of the deliveries of such material as ships, steam-engines, machinery, and the like, the actual quahty of the work performed frequently ex- ceeded that laid down by the specifications. It is probably unwise to lay too great a stress on points such as these, for in every nation there is bound to be a number of easy-conscienced people who are only too willing to take advantage of a situation such as this and to make an easy and unfair profit at the expense of their countrymen's reputation — for instance, such as that achieved by a British Member of Parlia- 46 SOUTH AMERICA ment many years ago, who gave a continental hotel- keeper a " stumer " cheque, and thus smirched the brilliant reputation of the British Member of Parlia- ment's financial integrity throughout the length and breadth of the continent. If I refer at this point to some peculiarities which have been recently evident in the relations between the South Americans and one or two small sections of the United States business community, it is most emphatically not with the idea of drawing comparisons in this respect between the British and the North Americans with a view to an unfavourable exhibition of the methods of the latter. On the contrary, the general integrity of the North American commercial world is such that its own people can afford, as they have in this particular instance, to rise up and pubhcly denounce some evils which have recently manifested themselves in certain quarters. If I lay stress on the following points, it is merely from a certain natural gratification on finding that, after all, we are not the only people whose home-made critics find cause for complaint. ;j,' S?^ Considerable attention has been drawn in the Ameri- can Press to the methods employed by the United States manufacturers in their efforts to advance the commerce of North America in the Southern continent. There is no doubt that the opportunities which have occurred since the outbreak of the European War have been unique. For all that, all has not gone so smoothly as might have been expected. A number of errors of judgment would seem to have been shown, and in two or three quarters the Southerners have accused the Northerners of attempts to overreach them. For instance, there has been more than one complaint concerning the quality of the delivery as compared with that of the sample shown. Whether there be any truth or not in any of such allegations I am perfectly unable to judge. It is quite INTERNATIONAL RELATIONS 47 possible that the affair has arisen largely owing to a mutual failure of understanding. I have had occa- sion to point out before now that the North American is very widely separated as regards temperament from the South American. It is true that the two races have much in common in the way of democracy. In the practical and familiar aspects of life, however, there is no doubt that much still remains to be done. As it is, the misunderstandings between the repre- sentatives of the two great sections of the Americas would seem to occur with considerable frequency. The British are seldom given the credit for the dis- play of much tact in their relations with the people of other countries. On this point, therefore, it is possible to speak with a sympathetic fellow-feeling — although we have made ourselves understood in South America more successfully than in many other parts of the world. As regards the North and the South Americans, in any case, there is no doubt that a certain lack of tact has made itself evident in the relations between the two. The South American has his own views concerning his own importance — and, after all, the average in- habitant of the Southern continent is by no means without his justification for holding them. This the travelled North American understands perfectly. But the number oi Americans who have not a past ex- perience of South America is considerable ! And a certain number of these are rather inclined to treat the inhabitants of the advanced Republics much as they would the natives of the wildest districts of that now wild country, Mexico. Now the South American, if the fancy takes him, can be quick enough on the uptake ; but he is very seldom in the mood for what is colloquially known as " snap." He has a marked hobby for retaining his dignity, even at those periods, such as his continent knows frequently enough, when the dollars are flying 48 SOUTH AMERICA in flocks through the air, waiting for some one with a quick eye and a sure aim to bring them down and home. There is, in short, no continent in the world where pohteness is so much appreciated as in South America, and it may safely be said that there is no other where abruptness of manner and speech — even when no actual discourtesy is intended — is more strenuously resented, The South American Journal of May 12, 1917, has a very instructive paragraph under this head. It tells the story of an American who had almost com- pleted the sale of a large quantity of oil-heaters to the Argentine Government for its railway passenger coaches, and who was disagreeably surprised at the sudden cancellation of the order : " Inquiry discovered the reason to be that months before the railroad had desired to purchase a quantity of oil for its locomotives. A Government purchasing agent called upon the local representative of a large American oil corporation to arrange for it. He was told to call back at a certain hour the following day. He did so, and for forty minutes kicked his heels in an outer office. Then an under-clerk came out and said, ' The boss says it will be no use for you to see him, as he has no oil to sell on credit.' ' Hopping mad,' as the journalist graphically describes it, the Federal employee returned to his chief and told him of the incident. The story spread. Other officials took up the feud. As the corporation in question was seeking tariff favours from the Government, its refusal to give credit was called ' yanqui bluff,' a phrase used for North American methods to distinguish them from ' palabra Inglesa ' (the word of an Enghshman) . Incidentally, that single act of discomrtesy — not of refusing credit, but the crude way in which it was done— has cost the oil corporation millions of dollars. " In the case of the oil-stoves for the railway coaches, when the Argentines accidentally learned that the oil INTERNATIONAL RELATIONS 49 company was indirectly interested in the sale, they at once cancelled the order. Defect in manners is always the defect in fine perceptions, and the resulting issues are frequently far-reaching and expensive." The North Americans, as a matter of fact, are by no means alone in experiences such as these. Many a British manufacturer has paid in a similar fashion for some such act of abruptness — although it has not always followed that he has ever become aware of the cause that lost him much profitable business in the Southern continent. In connection with this, it may be remarked that to those who have interested themselves in South America it comes as somewhat a surprise to read the numerous articles which appear from time to time in the Press and in the technical journals of the United States bewailing the comparatively small progress which the writers of these allege to have been made by the North Americans in recent years. So far as the Northern half of the continent is concerned, sta- tistics would seem to imply that these are largely cries of " Wolf ! " In the Southern Republics it is true that there may be more grounds for the discon- tent ; but even there it is certain that the North American, coming into the field with hit vast stores of dollars, manufactures, and enterprise, has pro- gressed at a far greater speed than did any of his European rivals when they first began seriously to cultivate the markets of South America. In view of the situation which has obtained during the past quarter of a century, nothing less was to be expected, and, save where some of the latest trust operations are concerned, there is no need for any panic to arise on this head on the part of the British investors and manufacturers concerned — not that the faults of the past British policy in general as regards South America have been concerned with such things as panic ; very much on the contrary, in fact ! 4 50 SOUTH AMERICA In any case, during the period between the outbreak of the Great War and the time of the active interven- tion on the part of the United States the North American trade had naturally made great strides in Latin America, as, indeed, could scarcely fail to be the case when it is considered that the land of the Stars and Stripes was the only great poHtical and commercial Power at that time that was able to extend its industries in an unhampered fashion. The North American exports for the years 1915 and 1916 afford a striking proof of this. Whereas in 1915 the shipments of United States goods to South America totalled a little under £30,000,000, the corre- sponding figures for 1917 had risen to £44,000,000, an increase of some 50 per cent. This advance, of course, has been made at the expense of all the chief European combatant Powers but chiefly at that of the German trade, which, so far as the shipment of goods is concerned, has become to all intents and purposes extinct. The entry of the United States into the war of course put an end to this state of affairs, and at the conclusion of hostilities North America, although her position will undoubtedly have been strengthened in comparison with that of the rest,, will find herself in a somewhat similar situation to that of the others in respect to the South American trade. It will be remarked that in practically all the articles which were wont to be exported from Europe to South America there has been a marked decrease since the outbreak of war. Nothing else was to be expected, as a matter of fact, and, indeed, it was plain to all that nothing else could have occurred. The respective situations of the various European countries involved are by no means without interest. Excluding the Teutonic Powers, probably the two which show the most sensational results are Belgium and France. The trade of Belgium with South America, INTERNATIONAL RELATIONS 51 and more especially with Argentina, had attained to very important proportions at the time of the com- mencement of hostilities. In addition to their imports and to the share they had taken in the various gigantic enterprises of the Southern continent, the large Bel- gian firms had specialized in the banking and mortgage business, and the amount of Belgian capital involved in these branches of commerce is very important. Although this latter remains comparatively unaffected, the tale is a very different one as regards the goods which Belgium was wont to ship to Latin America. These have for the time being suffered a complete wipe-out, and the lamentable political situation of the unfortunate kingdom is thus reflected in the com- mercial eclipse which is her unhappy temporary lot. Although the situation in this respect of Belgium is unique in Europe, the position of France as regards her exports to South America has been sufficiently precarious during the past three years. Statistics show plainly that her supplies to many of the South American Republics now represent a very small pro- portion of what she was wont to ship before the out- break of hostilities. France, as a matter of fact, would seem the greatest sufferer apart from Belgium, and although the United States manufacturers have taken for themselves a considerable proportion of what was once British trade, there is no doubt that in this respect France has lost far more. Thus the general situation between the five countries which were largely concerned with the trade of South America — Belgium, Germany, France, Great Britain, and the United States — is, that while Belgium and Germany have lost all, France is unfortunate only by comparison with these others. Great Britain, on the other hand, it may be stated with frankness and not without self-congratulation, has not dropped down to the low-water mark of her exports which not alone the pessimists seemed to have sufficient 52 SOUTH AMERICA reason to anticipate. Finally, the United States does not seem to have added as much to her volume of trade as was expected. This, however, is, of course, accounted for by the fact that during the years she remained a neutral her financial situation was in many respects adversely influenced by the industrial chaos of Europe. As to the local industries, it must be said that the manufactures of South America have up to the present time remained, comparatively speaking, in an almost entirely undeveloped condition. Many of those who have not had the opportunity of surveying the in- dustrial circumstances on the spot for themselves are inclined to suppose that this is largely owing to the lack of enterprise of the South Americans. It is true that in a few of the less progressive Republics this is the case up to a certain point ; but in the generality of the South American countries any ex- planation of the kind would be rendering very scant justice to their inhabitants. As a matter of fact, the lack of South American manufactures is due, in the main, to entirely natural causes. One of the principal of these is the scarcity of the inhabitants of the Southern continent. It is no more feasible to make a manufacturing nation out of a great stretch of pastoral and agricultural land than it is to create a race of pastoralists from an area given up to dense population, crowded centres, and where the smoke of the factories is derived from cheap and abundant coal. Indeed, there can be no doubt whatever that, were South America to devote itself to manufactures in- stead of to the industries with which its inhabitants are at present concerned, the loss to the continent would be very great. Even as it is, there is certain evidence of the transformation, which must become more marked and more rapid as time goes on. Thus the aspect of the rich lands of the Republics INTERNATIONAL RELATIONS 58 of the South has already begun to change in many districts. The enormous estancias and haciendas- estates that frequently covered many scores of leagues — have now become comparatively rare. Even among the richest landowners of these Southern Republics there are very few left who can gallop for league after league across their broad pastures, divided at great intervals by the fence-lines, where the tens of thousands of their cattle graze. The agriculturist has come upon the scene to break up these vast solitudes, and with his advent the aspect of the country has changed. Wheat, maize, alfalfa, and all the other cereals rise where before was nothing but the unbroken pastureland. Where this occurs, too, the territory is no longer spoken of in leagues. Its more valuable areas are estimated in hectareas, and upon them the huts of the agriculturists rise at intervals sufficiently close to shock the old-time cattle kings, who were wont to experience a certain sense of grievance if they could discern a roof that belonged to some one else but themselves, even if it only dared to raise its intruding structure on the far horizon. In short, that which was impossible a century ago and more, the increase of population has rendered practicable to-day. In the ordinary course of events the same progress must be carried a step farther, when the first regular manufacturing towns must take the place now occupied by some of the agricultural land. But to attempt to hasten a process such as this would not only be impossible from the practical point of view, but could not fail to bring about disastrous in- fluences on that species of progress which has already been made on natural lines. The best markets tor British goods in the past have undoubtedly been Argentina, Brazil, Chile, Peru, and, to a lesser extent, Uruguay. Speaking very roughly, it may be said that the main energy and wealth of the continent have been concentrated in these 54 SOUTH AMERICA Republics, which, as a result, have yielded most hand- some returns for the labour expended en them. It is, indeed, probable that more fortunes have been made in these countries — or, perhaps, to be more accurate, it should be said a larger proportion of fortunes — than in any other part of the world during the last twenty years. By no means bad judges of these particular con- ditions of affairs are the diving boyt at Madeira. At the first glimpse it may seem a little puzzling, to say the least of it, to realize in what way these swarthy lads, who dive into the pellucid wateis after silver coins, are concerned with the fluctuations of the financial fortunes of the various quarters of the world. The Madeira diving boys, however, ply their trade at a spot which may well be termed the Clapham Junction of the ocean. They are in a position, therefore, to test in a manner vital to themselves the prosperity or the reverse of the various communities with the travelling members of which they are brought into contact. Twenty-five years ago, should a Castle liner and an R.M.S.P. have happened to drop anchor in Fun- chal Bay at the same time, it was certainly towards the red funnels of the African ship that the diving boys' boats would scurry first of all, leaving the yellow smoke-stack of the South American vessels to be visited at their leisure, when the harvest from the full pockets of the South Africans should have been gleaned. With the turn of the century this was no longer the case, and it has been towards the yellow funnels that the animated flotilla has hastened ever since, postponing in its turn the slenderer African diving remuneration. And the Madeira boy, although he is no financier in the wider sense of the word, is a suffi- ciently accurate judge of the spots and the ships where the sources of wealth lie ! INTERNATIONAL RELATIONS 55 So far as South America is concerned, there is no reason to suppose that the immediate future will bring any alteration in the respective financial and industrial importance of the various Republics. At the same time, the advance in the conditions of the States which are at present the most backward must necessarily be more rapid than in those where so much in the way of progress has already been effected. With which truism we may conclude this chapter. CHAPTER V COMMUNICATIONS The practical aspects of South America as a commercial field — Main commercial divisions — The areas of the north and south — Brazil as a field for British enterprise — Favourable prospects offered — Development of British commerce in Central Brazil — The differ- ence between Brazil and Spanish-speaking Latin America — Questions of language — Respective influences of customs — Cost of articles in Brazil — Tastes of the various sections of the Brazil- ians — The northern and southern areas of the great Republic — Distinctions in their humanity, nature, and cUmate — Their im- portance as mercantile fields — Advantages and disadvantages of Northern Brazil — Inconveniences and dangers of the " back- blocks " — The perils of climate — Present industrial situation of the Amazon regions — The difficulties of Para rubber — The com- petition of the east — Possibilities of the fertile Amazon soil — Trade in the north — The mercantile situation of the south of Brazil — Wealth of the populous provinces — Demands of the modern large towns — Railway service in the south. In considering the practical aspects of South America as a commercial field, it will be best first of all to attempt a general survey of the continent from both the commercial and industrial points of view before entering into the details of each Republic. For this purpose the continent may be divided into three main sections. These comprise, roughly, Brazil, the northern half of Spanish South America, and the southern half of Spanish Soxith America. So far as Spanish South America — by which, of course, I imply Spanish-speaking South America — • is concerned, some explanation of this necessarily arbitrary division is essential. For the purpose we have in view the northern half should comprise Vene- COMMUNICATIONS 57 zuela, Colombia, Ecuador, and Bolivia. The southern area should include Peru (although in the case of this Republic it is necessary in this instance to ignore its actual geographical situation), Chile, Argentina, Para- guay, and Uruguay. Judged from the strictly commercial point of view, one of the chief differences between these two sets of countries is that the southern half — financially by far the most important, of course — comprises the advanced Republics. At least three of their number have under- gone very important commercial and political develop- ments, and both travel and trade are comparatively easy within their frontiers. The other Republics are undoubtedly lands of large intrinsic wealth and of great promise ; but their commercial and economic development are still to a very large extent matters of the future. Of the three main sections we may deal with Brazil first. This gigantic and wealthy Republic undoubtedly affords one of the richest commercial fields in South America. It is impossible as yet for any one to realize the full wealth of the Brazils, and even the Brazilians themselves can only surmise vaguely concerning those enormous sources of wealth the surface of so many of which has only just been scratched, while it is, humanly speaking, certain that there are many dozens of others, the very existence of which is not even suspected. As regards the general relations between the two countries, Brazil constitutes a peculiarly favourable field for British enterprise. From the very inception of their separate entity as a nation, the Brazilians have shown themselves amicably disposed towards Great Britain. There is substantial reason for this, for the traditional friendship between Great Britain and Portugal would seem to have been extended to the one-time colony of the ancient Iberian nation. Great Britain's political share, moreover, in the establish- 58 SOUTH AMERICA ment of the separate State of Brazil was very far from being an unimportant one, and the relations between the two nations at this period were unusually close, the British, for instance, assisting enthusiastically in the commercial opening up of a land the interests of which had previously been somewhat neglected by the mother country. It was in Central Brazil that British commerce in South America first began to develop in a really important fashion, for the official opening of the ports of Brazil took place while Spanish South America was still composed of the colonies of Spain, in which trade with the outer world, if not still completely forbidden, was, at all events, strongly discouraged. In the minds of many of those who have not travelled in South America, little distinction is made between the circumstances of Brazil and those of Spanish America. It is necessary that this misconception should be removed with as little delay as possible. So far as language, habits, and customs are concerned, there is no more resemblance between Brazil and the coun- tries of Spanish South America than there is between Spain and Portugal. It is true that a Portuguese will be able to understand the gist of any Spanish sentences spoken carefully to him ; but, owing to the more complicated Portuguese pronunciation, the Spaniard finds himself unable to reciprocate in this respect — ■ somewhat to the annoyance of the other, who is given to accuse the man of Castilian speech of affectation in the matter. He, therefore, who has obtained at no little trouble to himself a smattering of Spanish, with the idea of travelling in South America, need not expect any par- ticular linguistic triumphs on landing in Brazil, even if the disembarkation be only an incident on his voyage on the way out to the Spanish-speaking countries of the continent. Moreover, the circumstances which have influenced COMMUNICATIONS 59 and still influence, the Brazilian nation are of a some- what different type from those others which have been concerned with the moulding of the chief Republics of Spanish South America. Thus, the connection between Portugal and Brazil has remained far closer and more intimate than that which obtains at the present moment between Spain and the Republics which once were her colonies. It is true that the Brazilian appreciates to the full the attractions and charm of Paris, as, indeed, what Latin does not ! But at the same time he continues a close intercourse with Portugal, makes a point of visiting Lisbon, and many of the numerous Portuguese inhabitants of the younger land of the tropics will look forward to ending their days among the vines and olives of their native land, the Minho district being the chosen one for these returned folk to settle down in. At the same time, the influence of the French is at least as perceptible in Brazil as in any of the former Spanish American colonies. This is evident in philo- sophy, politics, Uterature, and to a certain extent in commerce as well. It seems to me that all influences of this kind should be noted by those who desire to enter into commercial relations with the people on whom they work. The average Brazilian, like the Portuguese, bears a good character as a commercial man, and, with the few inevitable exceptions, his character for upright- ness is undoubtedly deserved. This chapter is not intended to include any of the actual details of com- merce ; but it may as well be explained here at the outset that the Brazilian protective tariffs are very high, and that, as in so many of the nations of Spanish South America, the cost of articles to the Brazilian at home is in many cases at least double that which prevails in England, and is frequently, indeed, very considerably in excess even of this. Brazil, generally speaking, is a land of brilliant 60 SOUTH AMERICA colour, and the tastes of the great majority of its inhabitants are in accordance with this. The average Brazilian, indeed, has no objection to the showier species of articles, and his tastes run very much in the same lines as some of the splendid and most highly decorated buildings of Rio de Janeiro. As regards the poorer classes, an index of this tem- perament may be gathered from a sight of his trunks in the steerage of a liner plying between the various Brazilian ports. The ornamentation on these — occa- sionally pictorial — is apt to be of an ingenuous exu- berance such as outrivals even the luggage of the newly arrived immigrant from the country districts of Portugal. In clothes and in similar matters it is true that the wealthier class of Brazilians now follow the strict London fashions, so far as the men are concerned, and the latest Parisian modes in the case of the women. But outside this particular province there is sufficient scope for originality even among the educated classes. In the matter of furniture and jewellery, and other such objects, for instance, the somewhat elaborate inclinations of many of these Brazilians must render it necessary for British manufacturers to step aside from their usual grooves in order to provide the special type of object which is required here. As a matter of fact, it is out of the question to attempt to deal with the vast territory of Brazil as a single unit among the commercial fields of South America. As regards the industrial situation and commercial requirements the great Republic must be divided into two sections. The first of these is the southern territory, comprising the area from Bahia to the Uruguayan frontier — that is to say, to the southernmost limits of the country. The second is the northern section, including the great basin of the Amazon, with its enormous stretches of inland waters, on the banks of which stand the numerous COMMUNICATIONS 61 towns built upon the areas of land which have been reclaimed at the expense of much labour from the all-pervading forest. Beyond these richly watered districts there are, of course, the tropical agricultural districts, such as those of which the town of Pernam- buco forms an outlet, where flourish the sugar-cane, coco-nut, and all the rest of the agricultural wealth of these fertile lands. The futiire of both of these sections of the great Republic of Brazil cannot well fail to be brilliant from the commercial point of view. So far as the exporter in Europe and in the United States is concerned, they are of special interest, if on no other account than that of the enormous amount of customers and custom that they contain. As it is, the population is increas- ing and the needs of the community are expanding at the same time. Nevertheless, up to the present time the importance of the native manufactures has remained extremely slight. As mercantile fields, therefore, for European and North American goods they are of the greatest importance. The area of these markets, moreover, tends continually to increase as the remoter territories are opened up. As things are going at the present time, every year marks a distinct advance in this. The situation in many respects has become strengthened even during the interval between the outbreak of the war and the present day. Indeed, in view of what has been achieved in the most disadvantageous circum- stances that have recently prevailed, there would seem little doubt that the situation half a dozen years hence of the commercial world of Brazil must in the main show some surprisingly successful results. Taking these areas separately, we may first of all deal with the northern section of Brazil. In many respects the scope offered here is far less extensive than that of the southern half of the Republic. Many vast tracts still remain entirely unexplored. With 62 SOUTH AMERICA the exception of such places as Pernambuco and Pari, few large towns exist, and in many districts the dis- tances which separate the various centres of civiliza- tion are inconveniently great. The Amazons themselves in many ways afford an ideal country for the trader — that is to say, providing that he makes up his mind to endure the disadvantages of the local illnesses and to brave the possibility of yellow fever. For there is no ointment without its fly, and in the case of the Amazons the fly has been a threatening and frequently fatal thing — the Sty- gomya, that grim species of mosquito that carries the yellow fever. The influence of the Stygomya has been enormous, and its fatal history has had a world-wide reputation. This insect, together with the germs of other tropical diseases, has stood in the way of the rapid development of the very wealthy forest regions of Northern BraziL The scientific methods undertaken by the Brazilian Government promise to make life more uncomfortable for the Stygomya than has ever been the experience of that pest in the history of its existence. There is no doubt, in short, that the disease is in process of being wiped out. In spite of this, it would be use- less to try to make light of the climatic evils of the Amazon district. The remaining fevers and diseases in general should certainly not be omitted from the calculations of one who is contemplating travelling in these districts. Then, when the situation is once plainly realized, the aspirant for a post in the great river district of the north may, or may not, accept the risk of all these illnesses as a set-off against the commercial opportunities of the place, which may be taken as very considerable indeed. There is no doubt that many of those who sail out fresh from home to such places as these are frequently given to take the cHmate very much for granted, and the surprise that is apt to await them, should they COMMUNICATIONS 63 happen to arrive at their destination in the course of an unusually severe outbreak of tropical disease, is anything but a pleasant one. The ordinary traveller may frequently witness a minor tragedy of the kind, even should he not land at the infected port. The tales that are brought off from shore in such cases are always sufficiently lurid (although not necessarily in the least exaggerated), and this species of welcome is liable to be startling, to say the least of it. The advantages, on the other hand, which the Amazons offer to the experienced and " salted " trader are enormous. Once on board his small river craft, he has a vast field before him, while even if he confines himself to the main steamer routes he will have oppor- tunities for striking a very great number of small but profitable markets, which as yet have scarcely been tapped at all by the travelling Britisher. But none save the most experienced should ever dream of attempting such things. In any case, whichever means of transport he prefers, the traveller is enabled to journey for tens of thousands of miles along the convenient waterways from point to point. The rule holds good in the Amazon streams, as elsewhere, that the greater the enterprise the greater the profit. For in the " back-blocks " the prices of all kinds of merchandise rule amazingly high, and thus those traders who have the resolution to take their small craft to the headwaters of many of the tributaries — or at all events in the upper reaches — are apt to acquire competencies with an unusual rapidity. Nevertheless, there are undoubtedly many of their number who would tell you that this rapid financial success was in reality dearly earned. In this respect, too, it should be said that just at the present moment the Amazon territory does not offer the prospects that it did some years ago. It is certain that traders such as these of the Amazon have to abandon many objects which elsewhere are 64 SOUTH AMERICA looked upon, not as luxuries, but as the ordinary necessities of life. Fresh meat is almost unobtainable ; butter is so rare that every one of its yellow flakes is a jewel of price ; and even such crude edible stores as are obtainable are at the mercy of the hordes of voracious insects that wait with tireless eagerness upon prac- tically every yard of the way. Indeed, it must be accepted as a fact that the experiences of an Amazon trader justify such financial results as are to be derived from the life he is forced to lead. In view of the hardships of the travelling and the enormous distances to be covered, it is not to be wondered at that the dweUers on the remoter reaches of the great network of streams find that the cost of their implements, food, and clothing has mounted up to two or three times as much as would be charged for them in Para, at the mouth of the river — a spot which is by no means famed for the cheapness of its goods. But all this, as has been explained, is un- avoidable, owing to the time and labour involved in the transport along the enormous ramifications. In- deed, along the main stream itself it is occasionally necessary to bring goods to points some two thousand miles from where the yeUow-brown waters flow into the Atlantic Ocean. In the eyes of the majority of people the future of the Amazon regions does not appear so promising as was the case some years ago. The cause of these pessimistic views is the competition in rubber pro- duction which Asia is now enabled to bring to bear. Now that the finest species of Para has been trans- planted to the East, where it is thriving, it is not to be denied that a factor has arisen which has already upset many of the calculations of the Amazon rubber interests. It is true that those who were financially interested in these consoled themselves for many years with the theory that the finest species of Para rubber would COMMUNICATIONS 65 never consent to establish themselves permanently in any other but their native soil. The upholders of the claims of the wild rubber of the Amazons were wont to predict with great confidence that the con- ditions under which their own product flourished could be reproduced in practically no other territory in the world. The periodical floodings of the low- lying river-land were, they maintained, a salient cause of the excellence of the Amazon rubber. The absence of this, they urged, in the Asiatic plantations would sooner or later be felt, with the result that the Eastern rubber would degenerate in its elastic properties and would, in fact, lose greatly in value from want of strength. I do not know if these predictions have been justi- fied in a minor degree in some parts of the East into which the Brazilian seed has been introduced. If so, it must be admitted that any symptoms of the kind have been kept remarkably dark ! Indeed, judg- ing from all appearances, it would seem as though the Amazon rubber districts must now make up their mind to maintain a fight against a competition in which they are in many respects unfavourably placed, and which is bound to affect the prices of rubber adversely. Nevertheless, it is not likely that this circumstance alone will continue to exercise a depressing effect on the Amazon regions. There are many of the inhabi- tants of these territories who for many years past have complained that the undue proportion of atten- tion claimed by the rubber industry had thrown into the shade the more general cultivation of growths which, they allege, can be made to produce even more profitable returns than the rubber industry. It is perfectly true that the influence of rubber gathering on the other industries of the Amazon districts has been most unfavourable. Many of the areas, for in- stance, which before the days of the rubber " boom " 5 66 SOUTH AMERICA had been devoted to general agriculture have from want of attention gone back to an entirely wild and overgrown condition. It is by no means unlikely, indeed, when the ex- treme fertility of the Amazon soil is taken into con- sideration, that a wider range of occupations and products will in the end prove even more profitable to the Amazon dwellers than the sole industry of rubber gathering. At the present time things on the Amazon are not what they were half a dozen years ago. What- ever the future may have in store for these great territories, therefore, there would seem no need for too much anxiety on the part of the Amazon trader and of the merchant in Para who supplie him — to say nothing of the British manufacturer from whom the goods may originally emanate. It seems to me that the demand for these goods will be fully maintained when the normal conditions of existence are once again renewed throughout the world. As a matter of fact, the number of British traders on the Amazon is at the present moment so completely insignificant as to present some notable opportunities to men who are accustomed to this particular class of work. But it is emphatically not an occupation of the kind to be jumped at by any one who has had no previous experience of the tropics in general and of Brazil in particular. The southern part of Brazil i'-, in the main, of an entirely different physical nature from the north. It is true that the Sertao, the great inland plateau, pre- sents similar features for almost the entire length of Brazil. But there is certainly nothing in the south to correspond with the gigantic Amazon basin — for even the upper reaches of the Uruguay have very little in common with this ; and it is equally certain that there are no districts in the north that from a pastoral and agricultural point of view can compare with the temperate provinces of Parana, Santa Catha- COMMUNICATIONS Bt tina, and Rio Grande do Sul, where it is possible to breed pedigree cattle, and where the ordinary cereals of Europe thrive. As a matter of fact, the division which I have endeavoured to draw is quite arbitrary from a geographical point of view, and, indeed, in order to fit in more accurately with the commercial situation, the southern half should be made to extend along the coast to as far north as the point where the continent juts out to its easternmost extremity. By this means it would be made to contain the very important town of Pernambuco, which should by rights be included within the southern category. For this latter section contains all the towns of chief importance in the great Republic. We are now concerned with large urban populations, as well as with elevated plateaux and some great areas of rolling forests. The principal towns here, proceeding from the north to the south, are Pernambuco, Bahia, Rio de Janeiro, Santos, and Sao Paulo. All these five centres constitute markets of the very first order of importance. In fact, it would not be easy to find five wealthier towns of their size anywhere else in the world. In all of these it may be taken for granted that a strong demand exists, not only for the ordinary neces- sities of European and North American life, but for numerous and expensive luxuries as weU. So far as imported goods are concerned, it may be said that whatever is required in London, Paris, and New York will find its market in Rio and Sao Paulo, and this holds good to a rather lesser degree in Santos, Bahia, and Pernambuco. The industrial and commercial pro- gress, moreover, of all these centres is now proceeding at a great rate, and it is not too much to say that their true development is only now in the act of beginning. There are at least a score more of really important 68 SOUTH AMERICA cities in this southern section, some details of which are given elsewhere in the volume. As regards travel, the facilities of the southern portions are extraordin- arily widespread compared with those of the north. It is true that the railway system at the back of the port of Bahia does not yet give it land communication with any of the important remote centres, and the same may be said of Pernambuco. But Rio, Sao Paulo, and Santos are all three linked together by the railway ramifications, which now include many other towns of importance. Indeed, these centres now form part of a great network of rails which already provides communication with all the Republics of the south of South America, and which is increasing its ramifications with a rapidity which promises to leave very few important areas unserved in the quite near future. CHAPTER VI SOME CHARACTERISTICS OF THE FIELD Spanish-speaking South America — Methods of communication com- pared between the northern and southern areas — Influence of the Panama Canal — Communications of the interior — Some hints to the traveller — Wide scope of the modern railways — Admirably managed lines — Some questions concerning hotels — • The lesser-known lands — Their situation and possibilities — The keenness of international competition in the southern Republics — Difierences in the demand between the populous and remote regions. As regards the commercial divisions of Spanish-speaking South America, it is necessary to proceed on lines similar to those employed in the case of Brazil. Here we are faced by a similar situation to that which obtains in Brazil. It is necessary, that is to say, to parcel off the territories into two divisions. The physical differences, however, between the northern and southern halves are in some respects less marked than in the case of Brazil ; for in Spanish-speaking South America, although Bolivia, Peru, Ecuador, and Colombia all possess some of the headwaters of the Amazon tributaries, there is no great outstanding physical feature such as that of the Amazon basin proper to distinguish the one half from the other. The railway facilities, on the other hand, are far more considerable in Northern Spanish America than in Northern Brazil, where the nature of the Amazon basin is in so many parts of a kind that absolutely forbids extensive railway enterprise, as distinguished, of course, from light lines laid down for local needs. 70 SOUTH AMERICA The solid, though mountainous, soil of Bolivia, Colombia, and Venezuela has already been covered by a certain number of railway systems, and as soon as the oppor- tunity arises there is no doubt that this enterprise will be seriously extended. At the same time it is not to be denied that the commercial and industrial situation of the northern half of Spanish-speaking South America cannot yet in any way approach that of the south. It possesses many towns of historical and commercial importance^ but not a single one that either in the matter of modern enterprise or as regards size of population can approach any one of the principal centres of the south. There is no doubt, however, that the effects of the Panama Canal will before very long make themselves evident in the Republics of Venezuela, Colombia, and Ecua- dor, the principal benefits, of course, being about to be reaped by those countries possessing a Pacific coastal line. Indeed, had it not been for the outbreak of the European War, it is perfectly clear that these results of the new steamship route must have made themselves felt in a very compelling fashion long before now. The new possibilities of direct steamer communication between the Atlantic ports of Venezuela and the Pacific ports of Colombia and Ecuador must alone tend to an increase in the prosperity and size of these maritime cities. In any case, the end of half a dozen years of peace will have much to show in this respect. So far as the interior communications are concerned, the conditions of these northern territories still leave a good deal to be desired, even by one well acquainted with the peculiarities of the countries, and far more to be desired by one who is endeavouring to travel as a stranger. It is in this respect that the want of the great natural water highways, such as those of the Amazon, is most felt. Once away from the by no means extensive railway systems that serve these CHARACTERISTICS OF THE FIELD 71 northern Republics, the traveller will find it necessary to be satisfied with a slow, but not always unexciting, species of progress on muleback, and he will find him- self completely dependent on such guides as he may have the good or bad fortune to pick up. Indeed, it is precisely this lack of transport facilities which in the past has kept these mountainous and rugged countries in a somewhat backward condition, and it is highly unlikely that this will be altered until the railways have been sufficiently extended to open up many of the rich but remote districts. Speaking generally, indeed, none but one who is fairly intimately acquainted both with the Spanish tongue and with the ways of travel and life in the more primitive parts of South America need be advised to forsake the railway systems of the north in favour of a more independent and daring form of travel. Generally speaking, however, the field here offers at least as profitable possibilities as that of Northern Brazil, and he who is enabled to conduct himself without the embarrassing aid of others is undoubtedly in a position to reap a sufficiently rich harvest. As regards the ordinary traveller who is visiting the continent for the first time, it is the southern Spanish- speaking Republics that clearly offer the greatest advantages ; for this is not only the field where the most important populations (with the exception of those of Southern Brazil) are to be met with, but in addition to this, it is the one which possesses infinitely the most intricate and far-reaching railway systems. These are explained in more detail elsewhere in this book, so it may suffice for the moment to explain that every town of first-class importance in every one of these southern Republics is linked up by rail with the other urban centres of its own State as well as with the principal cities of the neighbouring countries. In these Spanish-speaking countries the railway links are now complete between the capitals of Argen- 72 SOUTH AMERICA tina, Chile, Uruguay, and Paraguay, while Lima, the capital of Peru, is now attaining to very nearly as favourable a position as the rest. The vast enterprise which has brought this state of affairs into being is, as I have said, more fully entered into elsewhere, and need not be referred to here. The industry, moreover, is only more or less at the beginning of its real and full development, even now. Let it suffice, therefore, to say that the traveller may visit every spot of com- mercial importance in these southern countries with a minimum of inconvenience and discomfort. Indeed, so far as the actual travelling is concerned, there are few systems in the entire world where the trains are more comfortably run and managed than in those of the British-owned South American railways. As a general rule, the sleeping and dining arrangements are excellent, and a two days' journey on an inter- national line in these areas is frequently far less tiring than a much shorter distance on a less well appointed train. Naturally, this same standard permeates the affairs of life in the majority of the districts of the progressive Republics of the south. The hotels in the chief cities have undergone vast improvements of late years, and the latest specimens of these establishments are con- ducted in a fashion that would have made the not very remote forefathers of many of those who use them blink with incredulous amazement. Needless to say, however, this latter state of affairs only applies to such important towns as Buenos Aires, Rosario, Valparaiso, Montevideo, Bahia Blanca, to say nothing of pleasure resorts such as Mar del Plata and other places of the kind. But it would be easy to tabulate over a score of these others, the importance of which only falls slightly behind that of those whose names I have given. But even in these southern Republics there are areas where the full flood of modern civilization has not CHARACTERISTICS OF THE FIELD 73 yet penetrated. In the Chaco district in the north of Argentina and in the west of Paraguay the country is only just now being explored in many places, and until a few years ago the tribes of Indians who had their homes in these curious wooded and swampy plains were inclined to be actively hostile towards all white men. But, apart from notorious regions such as these, there are many other neighbourhoods where the more or less rural customs of a former age still survive to a certain extent. These are to be met with throughout the southern Republics, and the sole geographical direction that can be given to one who is anxious to find, or even to avoid, them, is that they are very seldom to be met with in the near neighbour- hood of any of the railway lines ! At the present moment there are more of these remote areas to be met with in Paraguay than in any other of the southern countries, notwithstanding the efforts made to develop in their own interests many parts of the inland Republic by a large number of German merchants who have settled themselves down in the place during recent years. But this backward condition of affairs is probably not destined to last long in Paraguay. The railway has now put in its appearance upon the scene to link up the Paraguayan capital, Asuncion, with the other cities of importance in the southern part of the continent ; and with the spread of the rails through Paraguay itself the inevitable revolution in industrial and com- mercial ethics is proceeding apace — a species of revolu- tion, by the way, about which remarkably little is heard as a general rule, but which, in actual fact, has played a far more important part in the destinies of South America than those other revolutions which from time to time occupy the attention of politicians and the Press. As is only to be expected in a field such as the one to which we are now referring, the elements of compe- 74 SOUTH AMERICA tition are far more keen in countries such as Argentina, Chile, and Uruguay than are those in the Republics in the North. It is true that there is not the same evidence of " hustle," even in these sections of South America, as is to be met with in the United States of the North. Nevertheless, it has been made plain to most of those who have recently travelled the countries of the South for the purposes of business that the opportunities of striking an uncontested bargain are growing beautifully and rapidly fewer. Indeed, how could it be otherwise in those places where much wealth abounds, and where frequent trains are moving to bring to the spot the agents not only of Great Britain, but of France, Italy, the United States, Germany, Belgium, and of all the other competing countries as well ? It seems to me that it is above all things necessary for the British manufacturer or merchant to realize this, and to bear in mind that, whereas in Buenos Aires the buyer of goods is given to treat an offer of sale with that studied coolness that is a feature of all big markets, the buj'er in the remote wilds of Bolivia will receive with not a little enthusiasm such goods as the traveller who has wandered so far from the beaten track may choose to offer him. At the same time, it is no easier to generalize in these southern districts of the continent than is the case elsewhere ; for the extent of the country involved is, after all, more or less the equivalent in size of Europe, and the variations, in consequence, are very great — the climatic differences, for instance, between tropical Paraguay and the snow3' sheep-breeding country of Patagonia being almost as wide as the distance between the poles ! It is not necessary, however, to go into more details of this kind at the present stage ; for it will be essential to enlarge upon many of these points at a later stage of this book. CHAPTER VII THE TENDENCY OF ENTERPRISE Some characteristics of the South Americans — Enterprise of the present generation — Some typical methods of business — Northern and southern commercial peculiarities contrasted — Methods of advertising — Tastes of the South American — Phenomena accom- panying the rise of new lands — Weaknesses of the nouveaux riches — How to make ruins — Some instances of European ignorance of South America — Misconceptions concerning southern life and travel — Some necessary elements of commerce — Travelhng by rail — Characteristics of some of the inhabitants of the remote districts — The cosmopolitan communities of the large towns — Enterprise shown by the various nationalities. Having attempted to point out a view of the com- mercial possibilities in some of the main areas of South America, we may now deal with some of the characteristics of the South Americans themselves. In this respect it is more easy to generalize concerning humanity than concerning nature. There are, at all events, certain characteristics which are typical of the Latin American stock throughout the continent. This holds good, moreover, equally in the case of the Spanish-speaking peoples and the Brazilians, although, needless to say, it does not apply to the inhabitants of those districts that are to all intents and purposes Indian. Manners and customs in the commercial world have their limitations. Far less originality enters into the process of buying and selling than into such more poignant ceremonies as attend births, marriages, and deaths. There is a certain freemasonry among traders, too, that leads them to 75 76 SOUTH AMERICA understand each other, so far as their own particular businesses are concerned, with a rapidity that can scarcely ever be rivalled in any other walk of life. This chapter, having these circumstances in vieW; is an attempt to hold out a few brief and practical hints concerning negotiations in the Southern continent. Needless to say, they are intended only for those who have not yet met the Latin-American upon his own ground, and who, therefore, have not had the advan- tage of any personal communication with him. The present generation in the progressive Republics of South America can truthfully lay claim to as much enterprise as is evident in any other part of the average world. In these countries, such habits of procrastin- ation as still linger scarcely affect the business world at all. Nevertheless, the man who sets out from Great Britain with the idea of conducting business or any other affairs in South America may take it for granted that the time occupied by the journey will assuredly be longer than he had anticipated. If a man who is devoid of any previous knowledge of the Southern continent should calculate that a proposed trip will take about three months, he had better allow at least four and a half for the purpose. It frequently happens that affairs of the first magni- tude are carried through with a rapidity that would astonish the more humdrum business worlds of Europe. But if the South American, as a buyer, does not see eye to eye with a would-be seller, he will be in no hurry to make up his mind one way or the other. Many of the older-fashioned people, moreover, even when they have arrived at an adverse decision, will refrain from communicating it directly to the applicant, and will leave him to gather their refusal from the passivity of their attitude. Those acquainted with the methods of this section of the community take the hint as a matter of course ; but a new-comer is apt to imagine ground for hope from the absence of a THE TENDENCY OF ENTERPRISE 77 definite refusal and lose much valuable time in conse- quence. The true South American, even of the modern type, is fond of approaching the business he has in hand with a certain amount of ceremony, and not a few preliminary canters in the way of general conversation and courtesies. He has no desire to be hustled out of his special methods. There was a boldly printed card which was fairly popular fifteen years or so ago, and which two or three editor friends of mine hung with no little pride on the walls of their offices. This bore the legend : " You can say it all in three minutes ! " Even in Fleet Street it seemed to me that there were no callers who attempted to justify this dogmatic assertion, and in South America it may safely be asserted that any attempt to put the abrupt theory into practice would end in disaster to him who made it. Undoubtedly one of the best introductions to a busi- ness conversation is a friendly chat and a five minutes' talk about generalities. This, after all, is a very small concession to the courtesies of the Southern continent. Of course, there are many sturdy and direct people who, with an admirable contempt for the lengthier forms, refuse to enter into any such details, and insist upon coming to the point at once. Then it is quite possible that, like the man who blazes away at a par- tridge before it has risen clear of the scrub, they may miss it ! In considering openings for trade in South America it should never be forgotten that the average inhabi- tant of that continent is extremely ready to adopt any ideas, whether of mere novelty or of amusement, that happen to suit his taste. It may safely be said that in all enterprise of the kind towns such as Buenos Aires are not to be surpassed by any other centre of the world. This has been made clear enough by the methods of advertising. Some very striking instances of this 78 SOUTH AMERICA could be cited during the years which preceded the outbreak of war. In another place I have alluded to the procession of donkeys which was made to parade the streets of Buenos Aires, each of which bore upon a saddle canopy an inscription which ran to the effect that he was an ass — because he did not smoke So- and-so's cigarettes ! An advertising feat which was of a different order, but which in its own way was on a par with this, was the manner in which a certain popular illustrated magazine was got up for delivery to the public. Folded so that it would stand upright, it was made to represent the face of a noted high official, and the addition of a circle of cardboard made a most eiScient and convincing rim for the straw hat that was depicted on the head of the celebrity. The sensation caused by the appear- ance of this particular number of this magazine was great, and there is no doubt that this single coup was worth months of ordinary advertising. I have drawn attention to these two episodes merely to show the enterprise which is to be looked for in many of the really important centres of South America. It was this same spirit which popularized the motor- car at a comparatively early stage of its existence, and it is this which will undoubtedly make the Southern continent a most valuable market for the aeroplane, when the time for its civil and commercial development shall have arrived. This condition of affairs, needless to say, applies with at least equal force to the gramophone. The gramophone is rapidly attaining to a great popularity throughout South America. The most sought after reproductions in the great majority of the districts are those of the light opera variety, and for these and for the latest popular tunes in general there is a great demand. While on this topic, a passing reference may be made to the cinematograph, which, as in all Latin countries, THE TENDENCY OF ENTERPRISE 79 has now obtained a great hold on the publics of the various RepubUcs. Those interested in cinema produc- tion would do well to note this ; for, when the com- parative scarcity of the legitimate theatre in the Southern continent is taken into consideration, the opportu- nities for picture palaces offered by Buenos Aires alone cannot fall very much below those which occur in London itself. The cinema, as a matter of fact, is introduced in the great capital of Argentina into spots where it is not usually to be met with elsewhere, and such estab- lishments as restaurants and similar buildings frequently provide this form of entertainment as an extra attraction. It is clear to those who have watched the develop- ment of South America that the population of many Republics are showing many of the symptoms of the United States. I am referring, of course, to those symptoms which are demonstrated in the various demands of the communities. There are more things in common between the Northern and Southern continents than are evident on the surface, As is the case in the North, South America can boast of much old European blood. But, in common with the North, it has also a large proportion of that fortunate class of folk that are popularly known as nouveaux riches. These latter have frequently been accused of a quite disingenuous affection for antiques and for similar objects. However this may be, and whatever may be the motives which cause these full- pursed people to become patrons of art, it is certain that a fashion set this way is by no means without its influence on the salerooms that are accustomed to receive the more ambitious art collections. Now, there is no doubt that a similar tendency has arisen among certain sections of the communities of one or two of the South American States. There is a defined demand now for curiosities in ancient books that deal with South America, and, of course, a far 80 SOUTH AMERICA wider market for old and valuable furniture. Pictures do not seem to me to have yet attracted as much general attention as might have been expected, and the number of paintings that have any real right to be included in the category of Old Masters is prob- ably infinitesimal. So far as I have been able to observe, moreover, the craze for armour and ancient weapons of war has left the average Latin American completely cold. Nevertheless, there is a somewhat eccentric instance to be met with in one of the Southern Republics of an interest in mediaeval matters. This was provided by an important landed proprietor who was anxious to have his territory provided with something more picturesque and suggestive than the ordinary farm buildings proper to the place. He had a fancy for a ruined castle. He actually obtained one, but in a unique fashion. First of all he caused a large building of masonry to be erected. Having achieved this, he obtained large quantities of explosives — and blew up the affair. The result was that he was provided with a home-made ruined castle ! Apart from such crude attempts as these— which in some way or other have been rivalled in all " new " countries — the demand for antiques and curiosities has made quite notable strides of late years, and this factor is one which may well be reckoned on in the future commercial relations with the advanced Republics of the South. Needless to say, I am not referring, as regards this, to those States of the Centre and North, the economic circumstances of which have not per- mitted the cultivation of such tastes. As this book is naturally intended in the first place for those who are not familiar from personal experience with South American affairs, it will be as well to attempt a few hints for the benefit of those who intend to travel in that continent with a view to forwarding their own, and therefore British, commercial interests. There is THE TENDENCY OF ENTERPRISE 81 naturally a certain reluctance to enter upon a voyage to a continent such as South America, about which so very little is known in Europe. Indeed, the igno- rance which still prevails in so many parts is productive of frequent errors, which tend to both optimistic and pessimistic views as regards the comfort and experience of the traveller. There are some, for instance, who still cUng to the belief that South America bears a more or less strong resemblance to a British colony, and that with the aid of nothing beyond the English language and a stout heart they may proceed to and fro throughout the continent without experiencing much inconveni- ence. There are those, on the other hand, who insist on viewing everything connected with the Latin continent with a certain gloomy romance, and who picture such cities as Buenos Aires, Rio de Janeiro, and Santiago as peopled by more or less naked savages. Even apart from these two extremes, the number of misconceptions concerning South American life and travel are numerous. In many other places I have insisted upon the necessity, or at all events the strong desirabihty, of a knowledge of Spanish for forwarding the interests of any ambassador of commerce in the Southern continent, but it is clear that, as things are, the average firm that is keen to open up commercial relations with the Latin Americans cannot invariably wait until it has secured some one conversant with the South American language to represent its interests in South America. In such a case the traveller must do the best with such materials as are to his hand. In this instance, his need is clearly an interpreter, and one is to be obtained with very little trouble, although it must be confessed that the capabilities of these interpreters are extraordinarily varied. In the large towns, of course, the task of the com- mercial traveller or agent new to the country is by comparison easy. In such cosmopolitan centres as 6 82 SOUTH AMERICA Buenos Aires, Rio, and Santiago, business will be practically as simple to conduct as in London, Paris, or New York. He may almost certainly expect a distinct lack of punctuality in keeping any appointment made ; but curiously enough, this Spanish trait, which is continued in the Latin American, does not in his case seem to have interfered in the very least with the spirit of energy and enterprise, which in the Latin continent thrives side by side with the famous old Spanish legacy ! It may be said that in the case of these great centres the population is so cosmopolitan that the represen- tative of a really large firm may do business of the first importance without having recourse to the Spanish- speaking element at all. Indeed, as regards these large cities, an energetic commercial man may with com- parative security trust himself almost without further notice in any of them ; but the most profitable " deals " are not to be effected in these crowded centres, where the competition has already begun to be acute. The most remunerative transactions are now carried out in the lesser towns and in the interior of the continent, where the commercial soil is still, by comparison, virgin, and where the results stUl cause amazement even to the hardened commercial traveller who has been accustomed to the more hackneyed and deeply trodden fields. There is no doubt, indeed, that some of the most promising areas are those which have not yet been reached by railway. But, as has already been said, such as these are not for the man who goes out to the Latin continent unprepared so far as his own personality is concerned, and therefore is obliged to depend upon an intermediary for his negotiations. Indeed, in many places which are served by railway one such as this will find his difficulties sufficiently great. Railway lines upon the map look imposing, and in actual fact they constitute a force of progress of incalculable value, but even in railwa^^s there are THE TENDENCY OF ENTERPRISE 83 lines and lines, and the importance of these varies as much as that of the places they serve. There are metals, for instance, to be met with frequently enough upon which passenger trains run only two or three times a week, and where the advent of one of these trains is a matter of as much moment as the arrival of a liner at some lonely port. A man unused to the country, therefore, stranded at one of these out-of-the-way spots, need expect no elaborate accommodation in the way of hotels, and if he obtains a room to himself in some humhle fonda, he may think himself fortunate. He will, in fact, have to live just as the inhabitants of these remote spots hve, which, while invaluable in the light of experience, is by no means necessarily a matter of comfort to one who has not been accustomed to stray far from the beaten tracks. The inhabitants of these out-of-the-way places, too, although their merits are many, have not as a general rule the knack of understanding or making themselves understood, as is the case in foreign lands such as France. The majority of the lower orders are given to regard a foreigner with something of that contempt which is popularly supposed to be the birthright of the Englishman, and although they will in all prob- abihty be tolerant and even polite, they are not disposed to go far out of their way to assist some " gringo " with not sufficient education to understand a word they say ! It may be safely assumed, therefore, that the best place for the beginner is the area of the large and cosmopolitan cities, and that the " back-blocks " must be left for those who have gained experience and are able to profit by what they have gained. In the large cities, such as Buenos Aires and the rest, there are distinct communities of the various nationalities to be met with. Each of these is more or less self-contained. Thus, each will possess its 84 SOUTH AMERICA own church, its own Press, clubs, and, to a large extent, its own hotels. So far as Argentina is concerned, it is rather curious, as a matter of fact, that although the relations of each of these bodies are very closely interwoven with the Argentines, they are not nearly so intimate with each other. In a spot such as Buenos Aires, it must be admitted that there is very little to try the cosmopolitan experience of the average Brit- isher. He may go to a hotel that is ovraed, servanted, and patronized exclusively by his own countrymen. In the morning he will be supplied with an English newspaper — or more than one, if he desires ; in the course of his daily business, moreover, he may go to his British bank, visit as many British firms as he desires, and lunch at a British club. In fact, he may conduct himself very much as though he were still on the soil of his native land. He may even visit the suburbs, which are essentially British, where the villas are inhabited by his countrymen, and where he may play tennis, cricket, or golf to his heart's content. But it must be remembered that such a spot as this is not truly speaking South America. Once away from it, the abrupt change in the atmosphere is sufficient to disconcert one who is not familiar with the ways of the continent. There would seem every prospect now that British trade will undergo a genuine awakening at the conclu- sion of the war. If so, we may once again hope to attain to some of the full mercantile glories of the past. There are very few books published at the beginning of the nineteenth century concerning South America which do not reflect the enthusiasm for trade with the Southern continent and the enterprise which the British of those days were wont to show. These sentiments creep even into volumes which are professedly concerned with the phases of the War of Liberation, and other subjects which in themselves have no connection whatever with commerce, Thus THE TENDENCY OF ENTERPRISE 85 John Miller, in his Memoirs of General Miller, published in 1829, relates that — " The aboriginal inhabitants of Peru are gradually beginning to experience the benefit which has been conferred upon them by the repeal of ancient oppres- sive laws. In the districts that produce gold, their exertions will be redoubled, for they now work for themselves. They can obtain this precious metal by merely scratching the earth, and, although the collection of each individual may be small, the aggregate quantity thus obtained will be far from inconsiderable. As the aborigines attain comparative wealth, they will acquire a taste for the minor comforts of life. The consumption of European manufactures will be in- creased to an incalculable degree, and the effect upon the general commerce of the world will be sensibly perceived. It is for the first and most active manufac- turing country in Christendom to take a proper advan- tage of the opening thus afforded. Already, in those countries, British manufactures employ double the tonnage, and perhaps exceed twenty times the value, of the importations from all other foreign nations put together. The wines and tasteful bagatelles of France and the flour and household furniture of the United States will bear no comparison in value to the cottons of Manchester, the linens of Glasgow, the broadcloths of Leeds, or the hardware of Birmingham. All this is proved by the great proportion of precious metals sent to England, as compared with the remittances to other nations. The very watches sent by Messrs. Roskell and Co., of Liverpool, would outbalance the exports of some of the nations which trade to South America." CHAPTER VIII TIIF, WORKINGS OF BRITISH CAPITAL British capital invested in South America — The chief industries which it has served to found — Some circumstances concerning dividends — An example of real profit and artificial losses — Dis- advantages under which railways laboured in the old days — Revo- lution and industry — The association between South American politics and the interests of British shareholders — Labour prob- lems of South America — Political views on the question of labour — Problems of the present day — Change in the status of South American politicians — The democratic atmosphere of the South — Temptations of a popular government — Tendencies of the currents of sympathy — Views of certain sections concerning British railway companies — An Argentine deputy's speech quoted — Problems concerning the remuneration which the British companies are entitled to — Views of Bartolomfe Mitre in 1861 — The great Argentine quoted — His testimonial to the beneficent works of British capital. We may now pay some attention to the interests of those who are not directly concerned in the trade and commerce of South America, but who have invested capital in the great British companies which have these particular objects in view. The chief industries of the kind in which British capital is invested are railways, tramways, steamship lines, banking and similar corporations, land com- panies, harbour works, general municipal and power services, and numerous minor undertakings of the kind. In the course of the history of these there have been numerous periods of financial and industrial depression ; for the vicissitudes of the most favourably placed country would not seem fated to be continu- 86 WORKINGS OF BRITISH CAPITAL 87 ously bright ! The four or five years which preceded the outbreak of the European War must be ranked among the lean ones of the greater part of South America. On the whole, nevertheless, it may safely be said that the average industrial investment in South America has proved sound, and has led to the prosperity of the investors. In alluding to this matter I am not taking into consideration those concerns the shares of which have been driven up either by speculation or mere optimism to a price far in excess of their intrinsic value, and which, in consequence, had to descend at some time or other to their proper level, much to the chagrin of those who happened to have purchased them when in their inflated state. A condition of affairs such as this, it is clear, may well enough arise even in connection with an enter- prise which in itself is flourishing. Thus, supposing a land company were paying an interest of 20 per cent, on the par value of its shares, the original proprietors could scarcely fail to consider themselves fortunate. But suppose, further, that this successful working drove up the shares of the company some 400 per cent., and that very shortly afterwards the profits of the concern fell to 10 per cent. In the ordinary course of events the inflated value of the stock would sink to half, and, in consequence, those who had invested at the highest point would lose half of the capital they had put into the venture. Their point of view would naturally differ very widely from that of the original shareholders who had retained their stock. While the former would have lost half their capital, that of the latter would have been doubled, or, at aU events, they would be obtaining 10 per cent, for their investment. All this, of course, is fringing perilously near to the borderland of sheer platitude. But it is clear that the respective opinions of the two investors con- 88 SOUTH AMERICA cerning the same industry and the same company that was assisting to work it would differ very widely indeed. What would represent reasonable success to the one would mean crass failure to the other. Needless to say, it is this condition of affairs which has led to so many contradictory reports concerning the various South American industries in which the British companies have interested themselves. At the same time, it would be ridiculous to attempt to assert that all has been milk and honey — to say nothing of beer and skittles — with these enterprises. It is true that the great majority of these have been ably managed ; but at the same time it has been impossible to escape from the influence of the vicissi- tudes of the countries in which the various companies have had their working headquarters. Thus, in what it is now permissible to refer to as the " old days," railways were very much at the mercy of either of the combatant parties in the case of a revolution. Not only were trains and running stock in general commandeered frequently enough by the party which happened to be in possession of the district through which the railway ran, but before now sleepers and even telegraph-posts have been torn up and employed for firewood in those districts where timber happened to be unobtainable by other means. It was by no means only railways, however, which were wont to suffer from depredations of the kind. Land companies and private haciendas and estancias underwent very similar experiences ; for in their case the saddle-horses were commandeered as mounts for the cavalry, and, beyond this, the stockmen were impressed in order to sit upon the commandeered horses, and, in fact, were metamorphosed by a lightning- change process into cavalrymen by the leaders of whichever army it might be that was on the spot ! In the progressive Republics of the Southern continent revolutions no longer form part and parcel of the WORKINGS OF BRITISH CAPITAL 89 national everyday policy. In fact, they are occur- rences as rare as elsewhere in the world. On the other hand, as elsewhere in the world, a fresh set of benefits and of troubles has come to take the place of the old. As is the case, too, elsewhere, the latest serious form of unrest, apart from actual warfare, has taken the form of labour disputes. As a weapon of social warfare the strike has flourished in the South American atmo- sphere to an unusual degree. Some of the chief sufferers on the side of capital from this condition have been the British-owned railways. Thus it is that the association between the various internal political situations of South America and the interests of the shareholders in the great British enter- prises in that continent is closer than is popularly imagined. I have already endeavoured to make it clear that the South American social conditions and the demands of labour in the South have now begun to alter the aspects of life in the Latin American world almost as completely as is the case in Europe and in the United States. Indeed, to compare the industrial situation in South America of twenty years ago with that which prevails to-day is to discover a somewhat surprising state of affairs. It may certainly be said that a quarter of a century ago there was no such thing in the Latin continent as a Labour problem. The Gaucho, the guassu, and the Uanero carried out their various pastoral occu- pations with a comparative indifference to the financial results to themselves which belongs to a past age. There is no doubt that sentiment at this period played a far greater part in the community than it does at the present moment, and the cattlemen and the shepherds, providing that they had an affection for their patron, had no other desire but to remain on his estate and to lead the lives which suited them best — that is to say, to occupy themselves in bursts of strenu- ous work, varied by lengthy intervals of repose in 90 SOUTH AMERICA which the sound of the guitar might be counted on to be heard regularly. It was a patriarchal existence, and it appeared to suit both employer and immployee, so far as it went ; but the enormous influx of immigrants and the more intricate labour conditions which came in their train had the effect of altering all this. The almost incre- dible has happened in that in Argentina and Uruguay, at all events, strikes have occurred on the land itself. Apart from all else, this is not a little remarkable, when the difficulty of labour organization upon sparsely populated land is taken into consideration. In the main, however, the new condition of affairs affects the landed proprietors less than the shareholders in industrial concerns such as railways, water transport, and manufactures in general. The British-owned railways have more than once suffered a very serious crisis on account of the strikes which have been brought about by their cosmopolitan employees. There is no doubt, moreover, that so far as the railways of the progressive Republics, such as Argentina and Uruguay, are concerned, the diffi- culties in this respect will, instead of decreasing, tend steadily to grow more serious. In cases such as this, the situation of the board of directors is by no means an enviable one. Occasion- ally a railwaj^ company obtains the full sympathy of the government of the countr}? ; but this is by no means always to be relied upon. It is probably inevitable that the spectacle of these finely managed and prosperous concerns, foreign-owned as they are, has the effect of impressing the local authorities with the idea that their financial stability is such that may safely be tested to a point considerably in excess of the local-owned enterprises. With every intention of being quite fair, therefore, it must be admitted that the various governments have before now shown themselves by no means averse to " milk " these WORKINGS OF BRITISH CAPITAL 91 railways. Moreover, faced as they are by the increasing difficulties caused by a dissatisfied labour community, it is perhaps not unnatural that these authorities should take the more popular part of the defenders of labour against the alleged encroachments of capital upon its rights. We thus frequently find the South American governments addicted to a legislation which is alleged to show an undue bias in favour of the workers. The average South American government, moreover, has no hesitation whatever in intervening in such disputes, and this with a decision and energy that is almost unknown in older countries. Thus it is no uncommon thing, when a strike has broken out, on account perhaps of the dismissal of a couple of em- ployees, for the authorities to issue a command that the men should be reinstated. From the point of view of the South American government there is no doubt that this affords a most simple solution ; for it is in their interest that the strike should cease. But a procedure of this sort cannot fail in the end to weaken the position towards the labour market of the railway companies, to such an extent, indeed, as to jeopardize their very existence. Doubtless before many years are over some solution of these various problems will be found in South America. It is, indeed, essential that this should be so — just as it is clear that the labour markets of Europe cannot return to more tranquil conditions until some- thing of this kind is accomplished. Curiously enough, some of the most advanced of the South American Republics are experiencing a change of governing bodies which corresponds almost exactly to that to which we are becoming accustomed in Great Britain. The change in the aspect of political affairs began somewhat later in South America, since it is only within the last three or four years that the difference in the nature of the governing bodies has been 92 SOUTH AMERICA definitely marked. Until that time the senators and deputies of Argentina, for instance, were drawn from the landowning class, and from those wealthy lawyers and professional men who, together with the great owners of land, stood for the descendants of the old colonial families. This condition of affairs would undoubtedly have lasted considerably longer than has proved the case, had it not been for the great influx of immigrants from Barcelona, and many of the Italian centres in which the revolutionary spirit is most powerful. It cost these many years of labour and many gigantic efforts in propaganda before they obtained a sufficient number of adherents to make the success of their cause possible. Nevertheless, they have succeeded at length, and the government of Argentina is now of the kind which is prepared to champion the cause of labour against that of capital — by which I do not intend to imply for one moment that there need necessarily be any unfairness in the matter. Indeed, it would be unfair in the extreme to suppose that a popular government would knowingly sacrifice its sense of right and wrong in order to create a situation which would increase its popularity among its con- stituents. For all that, it is sufficiently clear that a young and untried popular government, however incorruptible its members may be, is always tempted to act from the heart rather than from the head, and to give its sympathies and prejudices an amount of free rein which is not always compatible with the exercise of strict justice. The small Republic of Uruguay devoted itself to social experiments of this kind some time before they were attempted in Argentina, with the result that from time to time the pendulum of affairs in the Banda Oriental has swung from the one extreme to the other. There would seem no reasonable doubt, however, that in such intelligent and practical countries as those of WORKINGS OF BRITISH CAPITAL 93 the River Plate a fair and reasonable mean will be found in the long run. In the meantime, with the current of sympathy as it is, the British railway companies, it must be admitted, have on more than one occasion had just cause to complain of a want of sympathy in the treatment meted out to enterprises which are honestly and well conducted. The attitude is not universal, and it certainly is not adopted by the average well-educated inhabitant of the Rio de la Plata. There is, never- theless, a section of the population who would seem embittered against these great enterprises, and who, whenever the occasion arises, are prepared to urge extreme measures in Congress and elsewhere. Their argument, needless to say, is to the effect that the British-owned railways are accustomed to exploit the country to an undue extent for their own benefit, and, in short, that the Argentine public is robbed in order to put money into the pockets of the British shareholder, who himself cares nothing for the interests of South America so long as it provides him with sufficient return for his investment. A glance at the quotations of stocks and shares will show that the profit of the shareholders in the British railway companies is, in good times, only what might reasonably be expected, and that in bad times the capital might with considerable financial advantage be invested elsewhere. Moreover, but for the extra- ordinarily able management which is a feature of so many of the companies, it would be a certainty that in almost innumerable instances where a dividend has been declared the result of the railway workings would have showed an actual loss. As regards the case which has been imagined against these railways, it will be not without interest to quote a free translation of a speech made in the Argentine Chamber of Deputies on July i8, 1917, by Senor Zaccagnini, in support of a Minute asking the Govern- 94 SOUTH AMERICA ment to produce an antecedent relative to the increase in freight rates announced by the railway companies. The speaker may be regarded as an advocate of extreme views against the interests of the railways. I quote the following from the South American Journal of September 15, 1917 : " The Executive Power has made repeated announce- ments to the country that it has resolved to inaugurate a new railway policy. This statement, I understand, has been made by one of the Ministers to the members of the Public Works Committee (of the Chamber of Deputies), and the announcement has been confirmed by the President of the Republic in his Message. The railway companies, without waiting for the ratifica- tion of the intentions outlined in that document, have desired to reply forthwith to this part of the govern- mental programme by announcing that, as from December 15th next, they will increase their tariffs by 22 per cent., the only exceptions to the increase being those referred to in Articles 183, 284, 285, 289, and 364 of the General Railway Regulations. These exceptions are of small importance, referring as they do to payments of increased storage rates after the expiry of the period within which packages should be withdrawn, demurrage on wagons loading, demurrage on goods not unloaded within stipulated time-limits, and also demurrage exacted from users of special trains for cargo. The decision arrived at by the companies affects, therefore, all goods, parcels, and passenger freights, with the insignificant exceptions to which I have just referred. Let us now consider the importance of the measures with which the country is threatened. During the last six years the National Rail- ways have given the following results as regards gross revenue : 1911, $116,782,267 gold ; 1912, $132,059,613 ; 1913, $140,113,204 ; 1914, $115,107,179 ; 1915, $125,032,595 ; 1916, $129,515,055 ; total, $758,509,913. Their annual average takings thus have been WORKINGS OF BRITISH CAPITAL 96 $127,434,986 gold, or say, $287,388,741 in national paper currency. Should the intentions of the companies materialize, the average increase upon existing tariffs would be $63,224,084 paper. But if we take into ac- count the prospects of the good harvest already announced for the year in course, we may base our calculations upon the year 1913, when railway revenues amounted to 140 millions (gold), and when approximately 43 million tons of goods were carried, so that the increase for next year would be about 70 millions (paper). It seems to me that it is enough to enunciate the fact in order to appreciate it at its full importance. Produc- tion and consumption would be called upon to bear the weight of this enormous amount. The railway companies, I have said, have confined themselves to notifying the Executive Power that as from Decem- ber 15th next the new rates will come into operation. They have not this time, as on other occasions, given any prior notice, nor have they applied for the corre- sponding permission. The studies effected by the technical offices of the Ministry of PubUc Works have, so far as the railway companies are concerned, proved to be absolutely superfluous. They have contented themselves with communicating the accomplished fact. This is because they have believed that after the dis- cussion which took place in this Chamber in 1915, following the investigation carried out by the late Government — they have believed, I say, that freight rates can be increased whenever profits fall short of the percentage fixed by Law 5,315 (Art. 9), in terms of the regulations referring thereto. The railway companies have understood, therefore, that tacitly Congress and the national Government had definitely accepted the criterion which they upheld, leaving no room for further discussion. In the year 1915, in upholding the increase in their freight rates, they invoked, amongst other causes, their disagreement with the judicial findings, which had, according to them, 96 SOUTH AMERICA given an erroneous interpretation to Art. 8 of the Mitre Law, and with the vote by which Congress sanc- tioned the pension law — a matter not yet definitely resolved. This time the companies, rendered wise by past experience and recalling the protests that were raised then, refrain from giving any serious motive for the increase. They make no reference, for ex- ample, to the new policy announced by the Govern- ment, nor do they mention the project of law of the Committee on Railway Legislation, which has been accorded a preferential place on the list of questions to be submitted to this Chamber. They limit them- selves only to referring to their financial situation. They consider their position with an absolute dis- regard of the conditions which not only this country^ but the whole world, is experiencing to-day. " The Chamber, in my opinion, ought to intervene rapidly and resolutely in this matter. Last time the intervention of Congress came somewhat late. The debate — without doubt an interesting one — proved to be completely sterile from the moment that the Executive Power itself arranged the matter with the companies. Now we have time to reflect and to study the point, and the Executive Power can also decide upon it after detailed and completed study. " If the Executive Power is disposed to inaugurate its new railway policy, the opportunity could not be more propitious. A programme of railway policy, clearly and implicitly enunciated, resulted in the triumph in the United States of one of the great political parties in that country. I recall that ex-President Taft, in sustaining his candidature for the Presidency, made it known that he was in favour of national legis- lation which would ensure the fiscalization of the railway companies by the Government in order to impede excessive issues of shares and debentures, but still accepting the principle of competition between companies to the benefit of the country. We do not WORKINGS OF BRITISH CAPITAL 97 know with any precision what are the ideas of the Executive Power. The matter which we now submit to the dehberation of the Chamber gives the Govern- ment a brilUant opportunity to make known its concrete ideas and to apply them with energy. There is quite sufficient material for study of the matter already accumulated in the portfolios of the committees of the Chamber. In this connection I can recall the report of a Parliamentary Committee, studies made by the General Railway Board itself, books and pamphlets published by men competent on the subject, being the records of the investigations and the assiduity of citizens who have given their disinterested contri- bution towards the elucidation of an important national problem. " From all this it is deduced that it is the place of Congress, first and foremost, to apply itself to the study of the article referred to and of the Mitr^ Law, to analyse the regulations governing that law which were dictated by an ex-Minister of Public Works, Senor Ezequiel Ramos Mexia, if it be desired that all the misunderstandings that have arisen, continue to arise, and will yet arise in the future, between the railway companies and the Executive Power, and between the Executive Power and Congress, should disappear once and for all. To ask for a rigid, uniform increase of 22 per cent, on all tariff rates for the whole country is simply absurd. The companies have not taken into account the distinct conditions prevailing in their zone of influence, the different distances from terminals, difference in capital of each company, or in profits, and they have made a levy in an identical manner, and to an identical extent, upon the most varied articles of produce. So that stone, linseed, wheat, maize, sugar, meat, grapes, wool, metals, and all other general merchandise are called upon to bear the same burden. At this rate we shall never attain to the tariff rates to which the most advanced and 7 98 SOUTH AMERICA best organized countries aspire ; we shall never have tariffs having the general characteristics of stability, of uniformity, of timeliness, or of duration, because every year the companies will think they have the right to come to Parliament to ask for general increases, treating the prescriptions emergent from the general Railway Law as though they did not exist. " The Government (another Government — not the present one) has declared, if my memory serves me well, before this Chamber that it has always found its action hindered by the difficulty of interpreting certain clauses which have prevented it from satisfy- ing the legitimate aspirations of the country. All this makes it even more urgent that we should give our attention to the matter, and it will only be settled, in my opinion, when the wording of Art. 9 of the law referred to shall have been made clear. " When it is known with precision what it is that ought to constitute the capital account of the railways, what are the working expenses which are to be recog- nized by the Government, and whether expenditure effected by them outside of the country ought to be taken into account — I would mention in passing that this last-mentioned item is not a negligible one, and this will be recognized by the Chamber when I say that in the year 1910 alone, according to railway statistics, it is seen that they amounted (for that year) to $83,783,547 gold, in open opposition to Art. 28 of Law No. 2,873. " We do not know, either, if the companies have absolute liberty, as was maintained some time ago by the ex-chief of a technical office, to raise their working expenses to the maximum limit of 60 per cent. Neither has it been settled if in these expenses ought to be included reserves for renewal of rolling- stock, and it has yet to be decided whether business which is not strictly railway transport ought to be allowed to weight upon the financial regime of the law. WORKINGS OF BRITISH CAPITAL 99 " I remember that the General Railway Board once had occasion to object that a sum of no less than 120 millions ($ gold) was unduly shown in the capital accounts of the railways, but I imagine that this was not the only instance, and that there ought to be deducted from the fabulous sums which the capital of the railways represents part of their share and debenture issues. These issues have never been author- ized by the Argentine, but by the English Government. In this connection it will be remembered that last year one of the companies desired to make a new issue of shares, and that the British Government prevented it. " Art. 44 of the Railway Law says that the tariffs relating to the transport of passengers and goods must be just and equitable. It is hardly necessary to point out that, proceeding in the capricious manner in which they do proceed, all character of equity, reason, and justice disappears, and that most ridicu- lous, illogical, and irrational tariffs are imposed upon transport. Such tariffs cause grave disturbance for the national economy. For us their main objection is that they make the cost of living higher. They render difficult the transit of people and of things ; they prevent labourers from travelling by obliging them to pay still more for tickets, which, as they are, are the dearest in the world." There is, of course, much that is purely technical in this speech ; but its salient points will be easily reahzed by the layman reader. As a matter of fact, the proposal to raise the scale of travelling rates during a period such as this, when every concern practically throughout the world has found its working expenses vastly increased, seems to me a most reasonable proposition. Without entering into details, indeed, it seems to the ordinary person quite impossible to realize how any railway company can e^cist on the rates of rerauner^ 100 SOUTH AMERICA ation which prevailed before the present world-wide crisis. I give Seiior Zaccagnini's arguments at con- siderable length, therefore, rather as a sample of what is urged against the British concerns than because of any ability on my part to see eye to eye as regards the various points he brings out. There is no doubt, indeed, that the entire situation resolves itself into the theory that the British concerns are rich, and should be made to suffer for this inconvenient luxury — a doctrine that is by no means held in Argentina alone ! I do not know whether the following speech from the lips of one of the most noted Argentine statesmen and Presidents, Seiior Bartolome Mitre — whom, as will have been seen, Senor Zaccagnini quotes more than once — has ever been translated into English. It was reported at the time of its utterance in the Buenos Aires Standard on March 8, 1861 ; but the editor of Mitre's speeches asserts that the full text was not rendered there, so I translate the Spanish text as given in the Arengas de Bartolome Mitre. This speech seems to me worthy of a wider publicity than it has so far achieved, at all events amongst English people. In a similar fashion to the quality of mercy, it illuminates both him that speaks and him that hears. It demonstrates, for example, the senti- ments of the great Argentine, and at the same time renders a homage to British efforts in South America which we really pride ourselves are deserved. Bar- tolome Mitre's words come with special force at the present juncture. This is the speech made by him on March 7, 1861, on an historic occasion, that of the inauguration of the Buenos Aires Great Southern Railway : " Sirs, taking in my hands the tools to load and to move the first barrowful of earth of the Great Southern Railway, I announce that I experience greater satis- faction than that which I knew when directing the WORKINGS OF BRITISH CAPITAL 101 machines of war, notwithstanding the fact that this latter enterprise met with a glorious triumph. " A more noble struggle and a greater triumph is experienced in bringing joy and hope to the most remote populations of the country, announcing to them by means of the locomotive whistle that a new era of glorious peace and abundance is beginning for them. "It is for this pirrpose that we are here on the projected course of the line, my wheelbarrow filled with Argentine earth, which British capital and the work of the emigrants are about to make fertile. This is the happy augury of a great future : the seed of progress has been deposited, which will fructify and give back an abundant harvest to the workers. " Now, in answering the cordial salutations with which the foreigners here have greeted me, and especi- ally those citizens of Great Britain, I will say that I do not acknowledge them as foreigners in this land. " I acknowledge and salute aU those present as brothers, because we are indeed brothers in the field of human labour. " All those who disembark as guests on our shores and establish themselves as inhabitants under the shelter of our hospitable laws, bring to bear their moral and material offering to our civilization, and join by this deed their force, sentiments, and interests with ours. They bring to us their strong arms, their capital, their practical and theoretical wisdom, their activity, and their blood and their heart as well. Incor- porated with the elements constituting our society, these live forces, working harmoniously, form what we might call our circulating social capital. " If those who call themselves foreigners in the common hearth do not mingle their blood with ours in the field of battle, we mingle in other ways, obeying those laws of the Creator in order that by this fusion an inteUigent virile race may be preserved, whose 102 SOUTH AMERICA destiny is to govern the world, since it is the sole one under whose auspices it has been possible to realize the wonders of a durable and perfect civilization. They walk with us along the furrows, armed with the British plough and the North American reaper, and this piece of bread, which I break in honour of the fraternity in the banquet of life, a symbol of the com- munion of all human races, is the product of the harvests which the British agriculturists and the Argentine labourers have won by their sweat. To-day it is eaten in sacred peace and friendship by represen- tatives of all nations of the world, whose banners are fluttering over our heads. " Now, concerning those congratulations which have been made to me on account of the part which I have played in this work, I will merely answer, as a repre- sentative of those who have co-operated with me in this, in the fashion of the General who crowned himself in the presence of his army and said : ' My soldiers have gained the crown, and I place it on my brow in their name.' " But, sirs, these are merely the visible effects that strike us. Let us take count of this peaceful triumph. Let us search for the moving spirit of this progress and see what is the force which has placed it in movement. " What is the force that is at the back of this progress ? " Sirs, it is British capital. " I might wish that this glass were of gold, not in order to worship it as the calf of old was worshipped, but in order to present more worthily the symbol of the friendly relations between Great Britain and Rio de la Plata — Britain, who was our enemy when we were colonies, and our best friend during the War of Independence. " In 1806 and 1807 the British brought us iron, in the form of swords and bayonets, and lead and WORKINGS OF BRITISH CAPITAL 103 bronze in the shape of balls and cannon. They received in exchange iron, bronze, lead, and fire, and their blood and ours, spilt in the battles, was dried by the pampero in the streets of Buenos Aires. " Afterwards they came with iron in the form of pickaxes and shovels, with cottons and with cloths, and they took in exchange our raw products, to convert them into merchandise. This occurred in 1809, and from that time was sealed the friendship between English commerce and the rural industries of this country. The duties which the EngUsh merchants at that period paid into the Buenos Aires Custom House were so abundant that it was necessary to strengthen the walls of the Treasury for tear lest the weight they had to support would bring them to the ground. " That was the first achievement of English capital in these countries, an achievement which presaged a fall of the old barriers and the advent of a new epoch. " Truly, sirs, British capital is a great anonymous personality, whose history has not yet been written. " When the Spanish- American colonies declared their independence in the face of the world, no one beUeved in it. The new Repubhcs found no one in Europe who would lend them a dollar, nor any one who would trust them with a hundred rifles. British capital alone had confidence in their future, and, opening its iron coffers, said to them : ' Here are the pounds sterhng of British capital; take what you desire.' And this brave act of the merchants of a country inspired its Government to a pohcy which it was destined to follow until the day when, through ihe mouth of Lord Canning, it pronounced those great words, ' A world cannot be called a rebel ! ' When the united provinces, shattered by civil war, poor, almost without an income and without credit, were unable to find a single Argentine to lend them a "eal, British Capital was the only one to lend them 104 SOUTH AMERICA the sum of five million sterling with which to construct ports and to populate the desert lands of the frontier. . . . About twenty years went by without the repayment of capital by us ; but, as the British knew that nations never die nor fail, they believed in the immortality of their capital, and to-day they see it resuscitated in the form of rails, of loco- motives, and of coal, and the promised land which will soon be populated by the emigrants, with the engineer as their guiding star. "It is to this rational confidence in the future of the young peoples that the British commerce owes the fact that it to-day possesses the most gigantic capital the world has ever seen, spread out to play its reproductive part all over the earth, whose interests and gains cause gold to flow to the great money market, its tributaries being those who owe them capital. This is the secret of the abundance of money in London, and this is the foundation of the prosperity of British commerce, the financial capital of which, in the fashion of a great personality, as I have said before, lives on its income without ceasing to work towards its increase. . . . " I pray at the end of my term of office that I may bequeath as an income to my country one dozen millions of money, 30,000 emigrants, and 500 miles of railroad ; then, when it shall enjoy these in peace and prosperity, I shall be satisfied, as I am to-day, drinking to the happy combination of British capital and Argentine progress." CHAPTER IX SOME COMPARISON IN INDUSTRY Some aspects of the general South American industrial and com- mercial situation — Demands of the Latin continent — The motor industry — Possibilities of this — Figures showing the importation of cars into Argentina — Countries best suited for the automobile — The various types of highways — The South Americans and the motor habit— Demand for motor-boats — Enormous fields for these in the Amazon and River Plate systems — Development of South American roads — Questions of labour — Road-work in the remoter RepubUcs — The possibihties of aeroplanes — Country best adapted for these — South America and the shipbuilding industry — River steamers — The demand for railway material — Quantity of this imported by the various Republics — Agricultural implements — Policy of the British manufacturers — Some com- parison between these and North American and German methods —Principal markets for agricultural machinery — Some details concerning the respective situations — Mining machinery — Where this is required. Having dealt with a number oi aspects of the general industrial and commercial situation as regards South America, we may now enter into the details of some of the various trades concerned and endeavour to show some of the possibilities presented by the most important of these. The chapters devoted to this topic cannot fail to be of a disjointed and " scrappy " order ; but as their object is to give information on a great number of subjects in a confined measure of space, it is plain that any attempt at literary style must go by the board. The principal subject of the following pages is com- 105 106 SOUTH AMERICA prised in the requirements of the South Americans, as this is naturally the side of the continent's trade which interests the British manufacturer most keenly. It is for this reason that I am endeavouring to lay special stress upon the exports of the various manu- facturing countries to the Southern continent As, however, many of these imports are closely connected with the industries of the Latin continent itself, I shall refer to this subject as well as to the other. For instance, it is of interest to the manufacturer of mining machinery in this country to know (if he does not already) where the principal mining regions are situated ; for it stands to reason that where mining is carried on, there will mining machinery be required, and where up-to-date agriculture is carried on, in those districts will ploughs, threshing machines, reapers and binders, and other machinery of the kind be wanted. The number of industries which are concerned with the South American market is so vast that it is not easy to know where to begin. But when in doubt on a point such as this, it is a safe " hedge " to choose one of the latest to show any striking development. By this means we are led at once to the very threshold of the motor industry. It is perfectly safe to predict that the motor industry in South America will offer opportunities after the war such as it has never known since the days of the first boom following on the improvements which made the ordinary car a possibility to the man of moderate means. The extent of the importance that this industry had already reached will be evident from the fact that in the year 1913 Argentina alone imported over five thousand cars. Since then, of course, the numbers have greatly fallen off, although the United States has continued to send a certain quantity of auto- mobiles. SOME COMPARISON IN INDUSTRY 107 The actual figures concerning the recent importations of motor cars into Argentina are : — Care. 1911 2,461 1912 4,281 1913 6,115 1914 2,185 1915 1,847 It is in connection with the motor trade that a pecuharity in the general ideas concerning South America may be remarked on. Although they have become rather more familiar with the affairs of the Southern continent during the past decade, people are still too much addicted to regarding South America as a unit in the matter of nations, and they are thus apt to consider that what suits the tropical North is good enough for the chilly South, and so on. Fallacies of this kind have been applied particularly to motor- cars in the past, frequently with unfortunate results, notwithstanding the fact that these are uninfluenced by climate to a large extent. The physical circumstances of a new continent naturally play a far greater part in the question of automobiles than is the case in the fully developed regions, where good roads abound to lessen the diffi- culties of the more rugged parts. In the Amazon Valley, for instance, there are enormous tracts with an actual surface that is practically as level as a billiard table, but that is covered with forest or soaked in swamp. One day these great territories will afford one of the finest grounds for automobiles in the whole world — but it may safely be said that that day will not arrive for a long time. Broadly speaking, the whole length of the Andes chain from north to south contains a quite negligible amount of country fitted for the motor, although in many of the vaUeys, notably in Chile and Peru, there are long stretches that are emiiiently suited to the 108 SOUTH AMERICA traffic. So far as gradients are concerned, no type of country could be more favourable than that of the Central Plains of Argentina, but here the complete absence of stone has an effect on the construction of the roads that presents in its own way almost as many difficulties as a rugged and mountainous country. In Uruguay stone exists for the metalling of the roads, which pass over a lightly rolling country, and this small Republic may be regarded as unusually well fitted for the ordinary run of cars. On the whole, Brazil is too moimtainous to constitute a good motor country, although the enterprise in road-making here bids fair to overcome many difficulties that a genera- tion ago would have been considered insurmountable. There is no doubt, as a matter of fact, that the South Americans have acquired the motor habit. In every centre of the advanced section of the Republics where these convenient vehicles are in the least feasible they exist. This tendency, instead of wearing off, is undoubtedly increasing, and the Latin American is rapidly becoming impatient of any slower method of progress. This state of affairs is beginning to be as noticeable on water as on land — in those regions, that is to say, where the important inland waterways extend. Some of the most luxurious motor-launches in the world are to be met with on the tributaries of the Rio de la Plata, and similar craft abound in the harbour of Rio de Janeiro and other sheltered spots along the coast. On the inland waterways the marine motor now has a very wide commercial scope. Light engines placed in ordinary small craft are now numerous on the Amazon system. These are now beginning to play an important part in the transport of provisions and the lighter kinds of produce. This type of boat, too, is beginning to become immensely popular on the tributaries of the Parana. The banks of these streams SOME COMPARISON IN INDUSTRY 109 are to a large extent covered with peach orchards, other fruits, and vegetables, as well as with light timber which serves for firewood, and a great proportion of this is now carried in roomy rowing boats fitted with a motor engine. As is the case in the Amazons, not only do the waterways constitute the sole means of transport of goods, but in the majority of districts they afford the only way of travel for human beings, since the habita- tions of many of these are on islands, and in any case there are very few roads in existence in those neigh- bourhoods that are so admirably served by these streams. This fruit and vegetable industry on the banks of the Parana and of the neighbouring streams is one of comparatively recent origin, but the demands of the great capital of Buenos Aires are very large, and many of the peasant proprietors are now " warm " men, who are displaying an increasing tendency to employ their motors not only for their livelihood, but for their casual visitings and marketings about the streams as well. I mention this merely in order to demonstrate how important must be the demand for motor engines of the kind when normal conditions of life reassert themselves in the world. The future of this industry, however, may be judged clearly enough without going into any such details as these. The two enormous systems of the Amazon and of the Rio de la Plata are in themselves sufficiently eloquent on this point. The former possesses a length of navigable streams which approaches thirty thousand miles, while the La Plata system (including the Parana, Paraguay, and Uruguay), although less enormous, has a basin of some million and a quarter square miles. Its main stream, although only half the length of that of the Amazon, is navigable by good-sized steamers for a thousand miles, and by lesser craft for half this distance again further inland. There is not the faintest 110 SOUTH AMERICA doubt that the traffic on both these gigantic systems is destined to be perfectly enormous. It is abundantly clear, therefore, that South America will shortly afford the greatest marine motor market in the world. Another point to be noted, too — -as I have already had occasion to remark — -is that the South American has now definitely acquired the motor habit. Although it is a great mistake to suppose that the average dweller in the temperate districts of the Southern continent is necessarily in the least lacking in energy, he has never shown himself a keen pedestrian, and the love of walking for walking's sake is utterly un- known to him. It is said of the inhabitants of our own Australasian Dominions that they will run half a mile to catch a horse to ride half a mile. There is an element of truth in this, and the same may be said of the inhabitants in temperate South America — with the exception that they wiU probably employ some one else to run the half mile ! In the advanced Republics manana is as dead as it is possible for any to-morrow ever to be. The atmosphere of the South has now come to understand the demands of hurried luxury, and the South American has now become acutely devoted to the automobile as one of the providers of this. A circumstance which must not be overlooked as regards South America is that, although the war has caused so marked a shortage of labour in Europe, this is by no means the case in many parts of the Southern continent. It is true, of course, that a great number of Italians have been recalled to join their colours in Europe, and from this cause South America has temporarily lost the services of many excellent workmen. But there have been other circumstances which have compensated to a certain degree even for this. As a matter of fact, now that so many of the Southern Republics have been left to their own resources to a greater extent than ever before in the history SOME COMPARISON IN INDUSTRY 111 of their independence, a higher degree of enterprise has, naturally enough, been shown. When normal conditions of life and commerce return, the results of this will no doubt cause no little surprise to the merchants and manufacturers who have, to a certain extent, lost touch with the Latin American in the course of these latter strenuous years. The consequences of this greater initiative will certainly be evident in the motor industry, for one thing ; for the enterprise which is now being shown in the construction of new roads is very considerable indeed. One of the great drawbacks to the importa- tion on a large scale of cars into South America is the lack of rural highways and the foundering of so many vehicles through sheer inability to cope with the gradients and surface, or, to be more accurate, the lack of surface. Venezuela, Bolivia, and Peru are showing no little energy in this direction, and Colombia, which until lately had shown a marked absence of enterprise in the matter, has now taken up this important and necessary task. From the point of view of opening up districts which until now have been isolated, not necessarily from the point of view of distance but from the want of communications, the results of this move cannot fail to be of incalculable importance. It is early days, perhaps, to talk of the full possi- bilities of the commercial markets for aeroplanes, but there is not the faintest doubt but that the Republics of the South of the continent will take with enthusiasm to the commercial use of aircraft as soon as they have the chance of emplo5dng them to any considerable extent. It may be that, just as the Latin chauffeur has proved himself one of the most daring in the world, his brother in the air of the same race will distinguish himself in similar fashion, and thus prove himself worthy of the traditions of a 3cwitos Dumont: 112 SOUTH AMERICA This seems probable enough, and in any case it is certain that in many countries he will possess some ideal fields for his experiments. In the great plains of Central Argentina, for instance, there exists one of the finest flying areas in the entire world. In this remarkable stretch of country it is no exaggeration to assert that there is probably not 5 per cent, of the total area of the land upon which an aviator could fail to make the simplest landing. From the aviator's point of view, indeed, flying over the country of the Pampa, as it is popularly known in England, resembles soaring over a billiard table, and, so far as land obstacles are concerned, he could descend almost everywhere with his eyes closed. Dealing now with vehicles driven by other means than petrol, it may be said that the British shipbuilders have paid no little attention to the great Southern river system of South America, and the fleet of river steamers on the La Plata-Parana-Paraguay streams have almost entirely been constructed in Great Britain. These are very fine vessels, and are adapted for the rougher waters which occasionally prevail at the mouth of the river (where, indeed, the powerful pampero is wont to blow), as well as for the inland navigation of the streams. On the Amazons the type of craft is rather more varied, and it would appear that there is room for British enterprise in this direction. The Magdalena River, too, promises a far more important field for shipbuilders than is generally supposed. As a matter of fact, the vessels on this stream have, so far as their build is concerned, come to a considerable extent under the North American influence, which is not surprising, considering the geography of the Colom- bian Republic. The construction of many of these light-draught vessels is, indeed, as I should imagine, even more elaborate in its way than the far-famed steamers of the Mississippi (which, by the way, I have never had the advantage of seeing). SOME COMPARISON IN INDUSTRY 113 In any case, the numerous and lofty decks of the largest Magdalena river craft are something of an " eye-opener," and, when freshly painted, have some- thing of the effect of a courtyard in a Shepherd's Bush Exhibition ! This effect, as a matter of fact, is sufficiently imposing in its way when it is shown moving against the marvellous background of the streams. Argentina is the largest importer of the South American States in the way of railway material. The average value of the annual introduction of this into the Republic for some years previous to the war had been in the neighbourhood of £7,000,000 sterUng. Brazil, it is true, cannot as yet compete with this important total ; but the proportion of the increase of the great Eastern RepubUc is the more remarkable. It must be admitted that in the statistics that are given concerning this a certain number of road vehicles are included, but the inclusion of these does not markedly affect the totals. Thus, whereas about £800,000 worth of railway material was imported into Brazil in 1910, the year 1911 shows this figure increased by half as much again, while in 1912 the importations nearly reached £3,000,000, which large figure was shghtly exceeded in 1913. It wiU be seen from this how important is the increase in this industry in Brazil. Moreover, there cannot be the faintest doubt but that when the normal condition of affairs is re- sumed, the increase in these figures will be far more rapid even than before. The other RepubUcs fall a long way behind these two States in the matter of the importation of railway material. The largest amount imported by Peru in a single year, during recent times, was £150,000. Chile, too, imports far lesser quantities of this material than might be expected. But this is accounted for, to a certain extent, by the fact that the Chileans Rifinufacture more of this kind of material for Xk^m- 8 114 SOUTH AMERICA selves than do the inhabitants of almost any other Repubhc in South America. The question of agricultural implements is one that is naturally becoming more important every year, as the area under cultivation increases throughout the continent. Originally, the two great competitors for the supply of these to the South American market were the British and the North Americans. In this branch of industry we meet with conditions as regards the style of competition similar to those which prevail in the railway world and elsewhere. The British firms placed the chief stress upon excel- lence of quality in their manufactures. The American houses, on the other hand, laid themselves out to supply a cheap and practical article that could lay claim to very few enduring qualities. The British pointed to the perfection of their product, and chal- lenged any competitor to equal its sterling merits. The American manufacturer frankly disclaimed any such intentions. He admitted, in fact, that his product would wear out in the course of a few years. By that time, however, he assured his customers that he would have a new and improved model on the market, which would make it worth their while to scrap the first cheap purchase and to replace it by the second, which, being equally cheap, could be abandoned for a third in due course — a procedure that could be continued indefinitely. There would seem much to be said for both conten- tions, and from the point of view of the respective advantages of the two offers, the result usually seemed to depend on the temperament of the buyer. There is no doubt, however, that if some of the high-grade British machinery could be contrived on a rather slighter scale than is the case at present, it would be even more attractive than it is now. Previous to the war the Germans appear to have made considerable progress in the agricultural machinery SOME COMPARISON IN INDUSTRY 115 markets of South America. Their pohcy was to " hedge " between the British and American schools. In accordance with this theory, they produced a cheap machine got up to resemble the British in outward appearance, but which in reality was fortunate if it lasted longer than the American article, or as long. Nevertheless, by this means, and by their pushful methods of sale, the German manufacturers had man- aged to nibble away an appreciable part of the bulk of the British trade. So far as actual value is concerned, there is no doubt, however, that the American agricul- tural machinery is far more formidable as a competitive article. The principal markets for agricultural machinery are Argentina, Chile, Peru, Brazil, and Uruguay, while the Northern Republics, such as Ecuador, are now beginning to import notable quantities of this machinery. The details of these importations are explained elsewhere in this book, but the various classes of machinery in question may be briefly referred to here. Argentina requires ploughs, harrows, reapers and binders, elevators, threshing machines, and other implements for the manipulation of the ordinary cereals. The Republic is the largest importer in South America of this class of implement. So far as sugar is concerned, however, comparatively little is required, and the demand for raining machinery is quite insig- nificant. A very notable field for artesian wells is provided by the great plains of Central Argentina, many districts of which are largely dependent on this agency for their water supply. In Uruguay similar conditions prevail to those in Argentina, with the exception that no sugar-producing machinery is required. Chile, too, is in much the same situation as Argentina as regards agricultural machinery, and the same may be said of Southern Brazil and Southern Paraguay. 116 SOUTH AMERICA To the north of these territories the relative importance of the various products alters, and the production of sugar takes first place, although a certain amount of machinery for the handling of cereals is required almost everywhere. In the less advanced countries the more elaborate types of this are not yet in general use. It is difficult to include such vast objects as grain elevators under the heading of ordinary agricultural machinery, although, strictly speaking, they have as much right to be included as the ordinary plough of commerce. These at present only obtain in such large centres as Buenos Aires, Bahia Blanca, and other places of the kind, but with the spread of the wheat area the number of these must necessarily increase, and the various local authorities are usually anxious to do all in their power to obtain the services of one of these great storehouses for the grain. The Republics in which mining machinery is in the greatest demand are those of Peru, Chile, Bolivia, and to a lesser extent throughout the Republics of the North. In Argentina the only metal-bearing districts are those of the west and the north-west, and almost the only important mining venture is that of the Fama- tina, in the province of La Rioja. In Paraguay the mining interest has remained quite absent up to the present time. In the third Republic of the River Plate basin, Uruguay, a certain amount of general mining is carried on, although none of these enter- prises have been sufficiently important to be developed on a large scale. CHAPTER X NEEDS OF THE CONTINENT The coal industry — Importations of coal into South America — Great Britain as the largest exporter — Economic conditions which govern this article — A national asset — South America and foreign timber — Importation of furniture — Lubricating oils — Chief fields where these are required — The glass industry — The situation concerning the importation of this into South America — Filters — The ubiquitous need for these — Water-power in South America — The principal sources of this — Importance of the Falls — The Iguazii and Victoria Falls — The paper trade in South America — Its rapid development — Importance of South American enter- prise — The importation of books — Competition in the paper trade — An instance where energy was lacking. We may now turn to a few of the mineral and vege- table substances that the Southern continent receives — for in the main South America is accustomed to import such things rather than to export them. One of the most important of these is coal. It is true that South America possesses coalfields in Chile and in Argentina, as well as in a few other places. But the total output of the continent in this direction does not nearly suffice for the local consumption, the demands of which are continually increasing in extent. The result of this is the enormous deposits of coal introduced from Europe, North America, and AustraUa. Up to the time of the outbreak of the war Great Britain was the largest exporter of coal to South America. Indeed, it is estimated that the recent annual shipments of this material from Great Britain to the Latin continent have amounted to a total 117 118 SOUTH AMERICA which exceeded 75,000,000 tons — an almost over- powering figure. The corresponding figures of the German exports of coal were rather more than 20,000,000 tons, and the United States sent consider- ably less. Since the outbreak of the war, however, the United States has shipped comparatively large quantities, her exports in this respect having exceeded those of Great Britain during this period. It is clear, however, that the export of coal cannot be placed within the same category as that of manufac- tured goods, or even as that of such objects as timber, which, at all events, stands a chance of being replaced sooner or later. Whether any nation is to be congratulated on an extensive export of this mineral is a very doubtful matter. Nothing seems clearer, in fact, than that those countries which ship their coal extensively to other parts of the world, and thus denude their coalfields at an extravagant pace, are expending their national capital, so far as this important storage of force is concerned. Moreover, as, so far as is known to science to-day, coal is irreplaceable, there may be something in the contention of those who maintain that the larger the exports of coal, the less advantageous is the situation of the country that sends this national asset abroad. It may be as well to mention at this point — merely for the benefit, of course, of those who have not pre- viously interested themselves at all in such questions — that the export of bullion in some respects resembles that of coal. Indeed, the shipments of the former are frequently of even less significance than that of the latter ; for it is likely enough that the transaction may merely comprise the temporary exchange of metal for the purposes of minting. It is owing to circumstances such as these that the tables and lists of figures that show the imports and e.xports of the various countries must not always be taken at their face value. There are certain circum- NEEDS OF THE CONTINENT 119 stances which are apt to render them misleading to those who do not study their details closely. Thus, if bullion be included — as it frequently is — in the shipments from any of the other countries to the Republics of South America, it has the effect of unduly affecting the computations of the exports from that particular country. This has been rather notably the case in the figures given respecting the trade of the United States with one or two of the Northern Republics of South America. As should be the case with coal, where a quantity of bullion is returned in the reports of commerce, the peruser of the figures should mentally delete this item from the total. Considering the amount of fine timber available in her own forests, the quantity of wood imported by South America is not a httle remarkable. So far as lumber is concerned, it is not to be expected that Great Britain, from the nature of her products, could ever play a leading part, although the Dominions, of course, are in a position to step into the breach, if it were necessary. As a matter of fact, Canada has already interested herself to a certain extent in this industry, as the import statistics for the continent show. The situation as regards timber in its manufactured forms is slightly less unfavourable, and a certain amount of furniture is exported from the United Kingdom to the various Republics. The trade, how- ever, at the present time is very insignificant. Thus, the average of the recent British exports of furniture to Brazil does not seem to exceed 5 per cent, of the total international exportations to that State. It is true that in some of the other Republics this propor- tion has been considerably exceeded, and in Peru and Chile the average British percentage of furniture shipments would seem to be 20 per cent. Were one to judge solely from the natural economic point of view, it would be safe to predict that no marked 120 SOUTH AMERICA increase either in the lumber or furniture imports into South America need be looked for. It is certain, for one thing, that, as soon as the necessary labour is available, the enormous forest wealth of Brazil and of the Spanish American States will be opened up, while it is equally certain that the manufactures of timber, which have already attained to considerable importance in Southern Chile, will make corresponding strides. The demand in South America for lubricating oils is increasing fairly rapidly as the manufactures of the continent show signs of developing. Up to the present time the general trade in the various oils of this nature that are employed would seem to be in North American hands. Large quantities of these lubricants are required in the coffee and sugar districts of the Centre and North, where many mills have been erected to deal with these products. At the present time the territories of Southern Brazil constitute some of the most notable customers for this class of goods. With the prospect of an important increase in the number of sugar factories elsewhere in the continent — and in those connected with general industries, especially that of textiles— the trade in these oils must very soon be largely extended. The railways, moreover, throughout the continent consume a great deal of lubricant, to say nothing of the rapidly increasing number of lifts which have succeeded the early and somewhat primitive structures of this kind, such as the famous one in the town of Bahia, in Brazil, which was, and probably stUl is, lubricated by means of castor oU ! In the matter of glass there is a good deal of leeway to be made up by British manufacturers. Before the outbreak of the war Germany had secured nearly the entirety of this trade, and since the commencement of hostilities the United States would seem to have annexed all that Germany once possessed. Such NEEDS OF THE CONTINENT 121 share of this trade as Great Britain can lay claim to is concerned for the most part with sheet glass and window glass. In Brazil it should be noted that the quantity of window glass supplied by Belgium was 56 per cent, out of a total import value of ;fi36,ooo. It is to be remarked that the general imports of glass into South America did not quite coincide with the great demand that would be expected from this, when the normal demands of the continent are taken into consideration. Thus, in 1913 the entire Republic of Brazil received no more than ^^125, 000 worth of bottles and tumblers, and in 1914 Chile imported no more than £27,000 worth of glass, while Peru in 1913 received about £65,000 worth of this material. In that year the imports into Venezuela of glass were £21,500, and the other Repubhcs of the continent introduced about the same proportion of this material. It will readily be seen from this that the opportu- nities for the development of this trade are very great ; for in articles of this kind, much the same axiom applies as to the construction of railways. It is a noted fact that in the New World the buUding of a railway in a suitable spot has the effect of creating passengers and the transport of goods, where before neither men, manufacturers, nor live-stock existed. In the same manner with glass, the introduction of a certain amount cannot well fail to involve the use of more. Among those commodities which are already largely in use in South America, and the employment of which must be expected to increase in the future, are filters and other instruments for dealing with the impurities of water. The need for these is felt not only in the tropical regions, where it is, of course, to be expected, but in many of the temperate areas, which in other respects are entirely salubrious. The water supply and sanitation of many an important South American town are not yet undertaken with sufficient care to do away with considerable danger to health, and even 122 SOUTH AMERICA on many estancias and haciendas, where the dimatic conditions seem ideal, the water from the wells is only too often the cause of an outbreak of typhoid fever. It may be said, then, that there is room for filters and similar appliances all over the continent, from the torrid North to the chilly South. While on the subject of water we may deal with quite another aspect of this fluid. It should be noted that, although an enormous amount of water-power is available in South America, the distribution of this is somewhat unequal. It might have been thought that the chief centre from which this force could be derived would be the vast basin of the Amazon River ; but this is not so, although here and there some notable falls and cataracts are to be met with, especially in such affluents as the Madeira and the Mamore. Taking the vast system as a whole, however, its great streams are of too placid a nature to supply water-power to the continent in anything approaching the proportion of the volume of the stream. It is in the great Southern river system, as a matter of fact, that one of the most notable areas of water- power is to be met with. Here, almost at the point where the three Republics of Argentina, Paraguay, and Brazil meet, are the vast FaUs of the Iguazu, which will undoubtedly at some future time have their strength harnessed to serve many thousands of square miles of territory. The great Victoria Falls, moreover, to the north of this point, are equally gigantic in force. Indeed, the power which these latter must one day yield cannot fail to be at least as important as any of the rest. I have referred to this subject here as these sources of water-power give important indications concerning the future manufacturing fields of South America — a matter that is of primary importance to the manufacturer at home. NEEDS OF THE CONTINENT 123 The paper trade is developing very rapidly in South America, and very soon there is no doubt that the market for this article in the South American Republics will equal in importance those of any other part of the world. It is unnecessary to explain that the principal importers are the Republics in the South that contain such large centres as Buenos Aires, Rio de Janeiro, Montevideo, Valparaiso, Lima, Santiago, and other important cities of the kind. The number of newspapers now produced throughout the Latin continent is very great — I should imagine larger in proportion to the number of the inhabitants than almost anywhere else. It follows that the amount of paper that is employed for these purposes is very important. Although this particular branch of the printing industry has made such progress, this con- dition of affairs does not yet apply to the production of illustrated books, which up to the present has been carried on with real success only in one or two of the most important towns. It is not a little remarkable to consider the high proportion of books in foreign languages which have of late years been imported into the Southern Republics. Thus, in 1912 over £260,000 worth of printed books were imported into Argentina, of which over 36 per cent, came from Great Britain, Spain contenting itself with exports which only just exceeded 30 per cent. These statistics speak for themselves, and show that, so far as literary interest is concerned. Great Britain has no reason to feel ashamed of her position in South America . Brazil, as might be expected, runs Argentina very close in the way of paper importation, and there is no doubt that the market for this is increasing here with extreme rapidity. This latter circumstance, however, may be said to apply to the entire continent, and it is certain that those who are interested in the production of paper 124 SOUTH AMERICA should strain every nerve to obtain their proper share of this business in the Latin continent. It was in connection with this very paper trade, by the way, that an experience befell me a good many years ago that left a rather depressing after-taste as regards the spirit of enterprise which happened to be prevalent in Great Britain at the time — or, to be more accurate, as regards the lack of it. In industry and the industrial world it would certainly seem, as I have had occasion to remark before (doubtless in company with many thousands of wiser men), that content is a fatal luxury. To be satisfied v^dth what one has is admirable in theory, but in practice it is possible only to those who are about to retire from the field of action. At any time previous to this the pleasant mood of content seems to be followed by much the same consequences as are experienced by a soldier who falls out of the ranks and sits down by the roadside when his company is on the march. He is out of the hunt, and it is his privilege to enjoy the dust left behind by the feet of the others ! There seems no doubt that we, as a nation, have been far too well satisfied with our lot. We can quite honestly lay it to our credit that we have done much good sohd work. But this has not been achieved in a sufficiently aggressive fashion to counteract the methods of some of our competitors. Not only have we not advertised it sufficiently, but we have got into the fatal and easy habit of exclaiming that there is room for everybody. Now, it is a tragic fact that in all matters of reaUy strenuous competition this is a complete fallacy. Were it otherwise, it is clear that competition would have lost its keenest edge, and, so far from this having been the case of late years, the rivalry between the various persons, firms, and nations has rapidly become more intense. Without wishing to be didactic, surely one may lay NEEDS OF THE CONTINENT 125 it down as a law of the commercial and industrial world, as it is actually constituted to-day, that the merciful doctrine of " giving the other fellow a chance " is apt to be sheerly suicidal. The unopposed en- trance of each fresh competitor is akin to the permitting of the growth of a new weed in a garden of flowers ! It is true that the flowers in this instance are not par- ticularly tender blossoms, but until some more kindly species of growths are invented they are all that we have. It is not pleasant to have to admit such a state of affairs — but it would in all probability be stUl more unpleasant in the end were one to attempt to shut one's eyes to it. I have personally observed only too many instances of the lack of enterprise bred by this atrophying con- tent. It is a delicate matter to single out particular examples, but I will attempt the one which is connected with the paper trade. Now, the growth of the South American newspapers has been rapid. Many of them are now organs of the greatest importance, and, as 1 have said, the demand for paper is now becomin.: rather phenomenal in many parts of the continent. Concerning the technical details of the paper trade I am profoundly ignorant, but during one of my recent visits to South America the topic of paper happened to crop up in the course of a conversation with one of the leading South Americans. This latter happens to take a particularly intelligent interest in commerce, which makes his case a somewhat exceptional one in a land where the wealthy descendants of the old families are seldom largely concerned from a financial point of view with interests other than those of landed property and mines and the professions. He had followed the paper question closely, and pointed out that the United States manufacturers seemed to be having matters much too much their own way. He explained, further, that he had considerable influence with the leading newspaper of the Republig 126 SOUTH AMERICA in which we were, and remarked that, if I could put him into touch with a first-class British paper firm, he could in all probability get the business transferred to that country. I was only too glad to give the assurance, and it soon became evident that my friend had, if anything, underestimated the goodwill of the paper in question towards him ; for he received what was to all intents and purposes an order on the spot, the quantity, terms, and quality to be the same as that which had obtained in the transactions with the United States. Though it formed no part of my particular vocation, I brought back this order to England with a certain sense of triumph, none the less great for the extra- ordinarily easy manner in which it seemed to have been achieved. A very brief space of time sufficed to damp this ardour. The first persons who went into the matter were the heads of a large, pleasant, and reputable firm. In the first place they were frankly astonished at the size of the business involved, for they found it difficult to believe that a South American newspaper could require so much paper. Having been reassured by cable as to this, they went thoroughly into the affair — and in the end came to the conclusion that they were not in a position to offer the same facilities as those provided by the Americans ! Another firm found that the chief difficulty lay in the quantity required, and after a time the unfortu- nate transaction faded like a spring flower in a drought, and ultimately became no more. It should be added that the wealth and financial integrity of the South American newspaper proprietors were indis- putable, and were freely acknowledged in London, and that there was no question concerning the good faith of the order. So far as I could gather, times were fairly flourishing, and the manufacturers considered themselves sufii- NEEDS OF THE CONTINENT 127 ciently occupied with the local demands. They must have known best. After all, it was their business and not mine. But it was dif&cult to write a halting explanation to South America without feeUng foolish over the matter. CHAPTER XI NEEDS OF THE CONTINENT [continued) The live-stock industries of South America — Their importance — ■ Favoured position of Great Britain as the exporter — Argentina as a live-stock breeding country — Pedigree stock in the South of the continent — Important requirements — -Various breeds of cattle, sheep, and horses favoured in the Southern Repubhcs — Situation of the Centre and of the North of the continent — In- crease of the areas of the pastoral industry — Some experiments in the introduction of pedigree stock — Figures showing the im- portation into Argentina — British saddlery — Effects of the increasing population of South America — Market gardening and the seeds in the temperate regions. The cattle and sheep breeding industries have now, of course, attained to enormous importance in South America, an importance which the war-hke preoccupa- tions of Europe and North America are likely to increase still further when normal conditions are resumed. As regards this particular branch of industry, Great Britain is in a pecuharly favoured position, for the stamp of pedigree cattle and sheep which she breeds are admittedly the finest in the world. The pasture lands of the most temperate regions of South America, moreover, have this peculiarity, that notwithstanding the richness of the grass and the general pastoral advantages of such areas, the live-stock of the first-class standard is apt to deteri- orate, imperceptibly at first, but to a noticeable extent after several generations. In order to remedy this, a continual influx of fresh strains is necessary, and this demand for new blood results in very large incomes to the breeders, princi- NEEDS OF THE CONTINENT 129 pally in Great Britain, but also elsewhere in the pastoral centres of the world. The principal live-stock importing country is Argen- tina, the enormous stretch of whose pasture land is probably unequalled in richness in the whole world. Argentina, true to her wealth and convictions, will be satisfied with nothing but the best, and the number of magnificent pedigree animals which have been shipped from Great Britain to this Republic within the last twenty-five years is amazing, as the statistics given later in this book will show. Argentina, in fact, holds the world's record for high prices paid for pedigree bulls, sires, and rams, and it is very unlikely in the present condition of affairs that she will yield this place to any competitor. As regards the purely practical side of the industry, it is not necessary to enter here into the details of the exportation of pedigree live-stock from Great Britain to South America. As a matter of fact, the relations between the landowners in South America and the breeders in Great Britain are now exceed- ingly close, and in this branch of industry there is no need to urge any alteration in the manner in which the selling is carried on, since, after all, it is a mere truism to say that the British pedigree live- stock is unrivalled throughout the breeding centres of the world, and that, in some respects, Great Britain enjoys the privileges of a monopoly in the breeding of champions. There are very few important sales of live-stock now in any of the British counties at which some purchases are not made for Argentina, or for one of its neighbours, and there is more than one expert who makes a point of travelling to and fro between Great Britain and the Southern Repubhcs of South America with the object of buying pedigree bulls, sires, and rams for the great landowners of the Latin continent. 9 130 SOUTH AMERICA It has already been explained that it is in the temperate countries of the South of the continent that this ambitious style of breeding is carried on — an industry, it should be said, that has brought very great wealth to the countries that have been able to take it up. These comprise Argentina, Uruguay, Chile, and the southern districts of Brazil and Paraguay. Although every British stock-breeder is familiar with the details of the requirements of these great South American stock-raising countries, it may be as well to run hastily through the most popular breeds here that are introduced into the Southern pastures. In cattle, the two leading strains are the Durham and the Hereford, although a number of others attain to much local popularity in various neighbourhoods. Among these are the Polled Angus, the Jersey, and one or two other strains. The area of sheep-breeding is, owing to the nature of the smaller animal, more confined .than that of the cattle. Pedigree sheep refuse to maintain the integrity of their strain in an atmosphere that at all approaches the tropical, and in South America the northernmost line of the well-bred sheep falls well to the south of the frontier of the cattle in this respect. On the other hand, sheep of a good class are now being more and more extensively bred in those districts of Patagonia which until recently were practically wild and constituted a Uttle-travelled country. The most popular breeds are Lincolns, Leicesters, and Romney Marsh. Much the same may be said of the really high grade of the heavier class of horses. The area in which they are bred corresponds very closely to that of the sheep, the favourite strains being Thoroughbreds, Hackneys, and Clydesdales. The breeds imported, however, are by no means confined to these, as the owners of the estancias or haciendas are not without NEEDS OF THE CONTINENT 181 their own ideas on the subject, and are frequently given to try experiments, very often successful, outside the accepted groove. The breeding of fine stock applies, as has been said, to Uruguay, Chile, Southern Paraguay, and the tem- perate southern province of Brazil. Elsewhere the export of pedigree live-stock from Great Britain to South America is not effected on an important scale. Undoubtedly there are some areas which in time to come will be concerned in the breeding of finer strains than at present exist, and such localities are to be met with in Peru, Bolivia, and Venezuela. Elsewhere, speaking generally, the climatic conditions do not permit of the breeding of expensive live-stock, and such cattle as exist are raised rather for their utility in transport and for the sake of their hides and horns than for butchering purposes. This is especially the case in parts of Brazil, where a certain type of cattle has been introduced from the Portuguese tropical colonial possessions elsewhere, and in neighbourhoods such as these, of course, the British stamp of cattle can never be expected to thrive. Nevertheless, the increase of the pastoral industry in the countries which until recently had been con- sidered as of too tropical a nature for these purposes has been very considerable of recent years. This branch of industry, as a matter of fact, has been much encouraged by the various Governments concerned, who are naturally anxious to see their particular Repubhc established as a self-supporting country in respect of meat. Naturally enough, uniform success has not attended this movement, and in many instances the ambitious breeders have imported expensive pedigree stock which was not in the least fitted to thrive in tropical regions. The result has been a great mortality in live-stock imported into these places. 132 SOUTH AMERICA In many regions, on the other hand, it has been found practicable to introduce pedigree hve-stock where in the last century it was not considered possible. This is especially the case in the Southern States of Brazil, where valuable sires, bulls, and rams are now imported, with very satisfactory results on the whole. In the low-lying districts of the tropical lands, such as those, for instance, of the Amazon Basin, it is almost unnecessary to explain that no cattle suitable for butchering purposes — regarded, that is to say, from a European point of view — can be expected to thrive. In Venezuela and Colombia, however, the uplands permit of no small improvement in the class of criollo cattle from native stock. The Colombians now seem to have realized to the full the possibilities of this particular branch of industry, and the Government is prepared to pay a bounty for each pedigree animal imported for the purposes of breeding. This particular venture is, of course, more or less in its infancy. The enterprise of the Colombian Government in this matter is decidedly praiseworthy, and in the end the results wiU be, no doubt, profitable to the country at large. The following figures showing the imports for the ten years ending with 1910 into Argentina of hve- stock will give some idea of the importance of this industry : Cattle. Shorthorn Hereford Polled Angus Red Polled Jersey . . Sundry Total Number. 8,061 339 370 98 92 124 9,684 The average value of each of these was £131, making a total of £1,268,646. NEEDS OF THE CONTINENT 133 Sheep. Number Lincoln . . 22,986 Merino 566 Hampshire 1,441 Shropshire 1,590 Romney Marsh 1,139 Sundry 1,172 Total 28,893 The avei^age value of each of these was £13 2S., making a total of £378,511. HOBSBS. Percheron 1,003 Clydesdale 696 Shire 365 Hackney 438 Yorkshire 89 Sufiolk 56 Anglo-Norman 75 Shetland 71 Ponies . . Arab Sundry 31 17 595 Total 3,436 The average value of each of these was £131, making a total of £450,131. The importation of pigs, principally of Yorkshire and Berkshire strains, amounted to 2,644, the total value of which was £23,092. The corresponding importations of the neighbouring Republics have been proportionately important. In these the popularity of the various strains alters a good deal ; thus in Uruguay the Hereford breed of cattle is more in vogue than the Shorthorn, and so on. As regards horse equipment in general, the commer- cial situation differs considerably in the various parts of South America. It would not be a very easy matter to compute the number of riders in the continent ; but it can safely be taken for granted that the sum 134 SOUTH AMERICA total of these is very great. Indeed, it is certain that, did they all demand to be supplied with English-made saddles and bridles, they would constitute the largest market in the world for the British saddlery trade. But the proportion of English saddles employed by this vast army of riders is by no means large. Among the humbler classes of the equestrians their use is quite unknown. Thus the Gaucho of the plains of Argen- tina and Uruguay will use the blankets of his recado saddle, which will serve either for his horse's back or for his own bed, as the need may arise. His bridle will be of locally manufactured raw hide — richly ornamented with silver, if he belong to the genuine old stock of the Gaucho race. It is the same with all the rest of his horse furniture. The taste and fashion of each particular district have remained firmly rooted. This condition of affairs, indeed, pre- vails throughout the continent. It holds good in Paraguay, in Chile (where the massive saddles and wooden stirrups have their own marked pecuUarities) ; it asserts its influence throughout Peru, and extends to the cattle-bearing Llanos of the far North. It is only among the wealthier classes of land- owners that English saddlery is popular, and that only in districts such as those of Argentina, Chile, Uruguay, and some of the neighbouring districts, where modern and cosmopoUtan ideas have been permitted to play their part. In such spots as these English saddlery is very popular, and has long been the fashion among those addicted to the better breeds of horseflesh, just as English clothes are the rage among those communities who make a study of their attire. There is a certain, though limited, market for EngUsh saddlery in such places as these. In the remoter spots, however, such as Bohvia, Colombia, and Ecuador, the demand is quite insignificant, although it may be regarded as an assured fact that a certain amount of trade would NEEDS OF THE CONTINENT 135 result were these articles judiciously " pushed," even in these Republics. The increasing population of South America has now, as I have already pointed out, tended to trans- form many of the pastoral areas into agricultural districts. It is for this reason, needless to say, that the demand for agricultural implements of all kinds has increased so rapidly in Argentina, Chile, Uruguay, and Southern Peru. But this tendency is by no means confined to the great areas of the cereals themselves. One of the chief evidences of this change is the rapidly increasing number of market gardens which are now to be met with in the neighbourhood of large towns. This raises the question of the supply of seed for the stocking of these. In the tropical areas, of course, the British seedsman can have no financial interest, for in those fortunate regions the various exuberant growths of the latitudes may be trusted to look after themselves to propagate with a fertility that renders the labour of weeding of infinitely greater importance than that of sowing or planting. In the Southern Repubhcs, however, and in the lofty and temperate regions of many of the Northern countries, European vegetables and fruits are grown in abundance. This is especially the case in Chile, Argentina, Uruguay, Southern Brazil, and Southern Paraguay. In these regions almost all of the European vegetables will consent to thrive, and almost all the fruits, with the exception of such hardy growths as the apple, cherry, gooseberry, currant, and similar products, which, however, flourish freely in the lati- tudes of Argentina and Chile, roughly to the south of latitude 40° S. In Argentina and Chile, too, enormous vineyards exist, but these, of course, have no concern with 136 SOUTH AMERICA British agriculturists, the vines being brought from the various European viticultural centres and first of all acclimatized in Chile, after which, if they are intended for Argentina, they are sent across the Andes to Mendoza and the other wine-producing centres of Argentina. CHAPTER XII QUESTIONS OF FINANCE AND DEMAND " High finance ' — Loans and banks — Importance of the various British financial institutions in South America — A quotation concerning the banking situation — Advancing money on land — Insurance enterprise — Laws governing the local branches of British insurance companies — Financial distinctions between the Federal and Provincial Governments of the various RepubUcs — Some aspects of this that are of interest to investors — Opportunity for hotel enterprise in South America — The South American as a. hotel-keeper — Traditions inherited from the Iberian Penin- sula — Peculiarities of hotel life in the remote centres — The modern hotel in the larger cities — Demands of the South American in this respect — Promise of the enterprise — The question of clothes in South America — Itinerent Parisian dressmakers — Chief centres for male and female clothes — Average cost of these — Demand for furs in the South — Importation of boots — Coun- tries generally concerned — Local tastes — The perfumery trade — Its importance in South America — Some figures showing the quantities used — The question of exhibitions — The possibilities of floating exhibitions — Circumstances which it is necessary to bear in mind in considering these — Situation of the chief South American commercial towns — The question of South American commercial agencies in other parts of the world. It is not necessary to devote much space here to the mysteries of what is generally known as " high finance." Operations conducted on so vast a scale as these obey very few of the popular commercial rules. Each of these is itself frequently the herald of a new commercial and industrial situation, and therefore cannot be brought within any of the accepted everyday categories of the ordinary commercial ventures. Neither do the ordinary loans to the respective Republics and States call for any comment here. It X37 138 SOUTH AMERICA is a platitude to assert that each of these issues must be judged on its own merits, and that if the respective financial reputations of the various Republics and States are not accurately known and carefully distinguished from each other by the financial authorities and their cUents at home, it is high time they were. For it is not in the least necessary to possess an intimate know- ledge of South American affairs to ascertain matters of this kind. The banks, too, speak largely for themselves, and the situation of practically all these great institutions is known to those who care to take the trouble to investigate. As regards this branch of commerce, how- ever, it may safely be said that Great Britain has no reason to complain of the position of those institutions of this kind which represent her financial interests. Indeed, were an attempt to be made to define the exact functions and operations of each of the British banks in South America, a larger volume than this would be required for that purpose alone. As to the number and names of these various British banks, a glance at any of the banking directories will demonstrate how very numerous are these institutions and how great is their importance. As regards the situation of bankers, a specimen of this has been so ably put by the chairman of the Anglo- South American Bank at the general meeting of that institution in 1916 that I will quote a couple of para- graphs from his report : " In the Argentine all bankers have had special difficulties, although the country has prospered. The enormous increase in currency produced by the heavy exports of recent years at high prices has produced a plethora of money, resulting in a great fall in the rate of interest, which is now below that current in England. The crops in general came up to expectations, but, owing to the difficulties in procuring tonnage to bring away the produce, the wheat export was slow, and FINANCE AND DEMAND 139 some has even yet not been shipped. . . . The exchange has risen to a price which is quite a record for recent years, being quoted at 49 j^gd. for cable transfers, after having been as high as 49r6d. per dollar. As you may know, in pre-war days the rate of exchange was ad- justable by the import and export of gold, but to-day it is not possible to operate in that direction, and con- sequently there is nothing to prevent the value of the Argentine currency from following the course of trade without limitation. The result, unfortunately, is that a larger price has to be paid for our British importations, and it is to be hoped that some means may be adopted whereby this may be avoided. The commercial situa- tion in Mendoza Province, which depends on the wine industry, has not changed materially since last year. For the first time a certain amount of wine has been exported from Argentina to France, and we understand that the result encourages a further trial." Referring to the present prosperity of Chile, it was further remarked that — " One result of this is the very great appreciation which has been witnessed in exchange. After remaining more or less stationary for a long time in the neighbour- hood of 8d. per dollar, there has been a gradual, but by no means uniform, tendency to a higher level. During the last month or two this upward tendency has been accentuated, and to-day we see the rate at io^-|d." A similar condition of affairs to this may now be said to prevail in numerous States of South America, to whom the tragedy of the war has brought not a few opportunities of prosperity instead of the ruin which at first was anticipated in so many quarters. So far the British have taken a comparatively shght interest in the advancing of money on the security of South American land — slight, that is to say, in pro- portion to the very important transactions carried on in this respect by the Belgian and other houses. Never- theless, the South American mortgage business would 140 SOUTH AMERICA appear to have yielded excellent results to those who have interested themselves in it. In normal times advances representing half the value of the mortgaged property have given a return of from 7 to 10 per cent. Seeing that the solid land is there as security, an investment of the kind cannot fail to be extremely advantageous to those who have the benefit of really sound advice. A certain amount of private business is effected in this way, and this is undoubtedly extremely profitable. At the same time it is clear that no one should dream of attempting it unless he has the services of an agent whom he has every reason to believe that he can trust implicitly. Otherwise, even his 10 per cent, may cost him very dear ! The British insurance enterprise in South America has been considerable, and the agencies of the various British companies are now spread fairly widely over the continent. In this particular branch of commerce the results would seem to have justified the expecta- tions, and the promise of the future is, of course, still greater. The majority of the Republics take care to safeguard the interests of the insured against any possible pre- datory instincts on the part of the companies. In order that these latter should render financial hostages for their equitable treatment of the insured, they are obliged to invest a certain amount of capital in the country in which the branch has been established. This is generally effected by the companies b}' the purchase of real estate, whether in the town or country, but generally in the former, as it is almost invariably convenient to purchase the building, or a part of the block of buidings, where the local office is situated. As the price of land has tended to rise in almost every South American district, and in some cases has mounted in value to an astonishing degree, this procedure has in the main proved exceedingly profitable to the com- panies concerned. Indeed, the curious spectacle has FINANCE AND DEMAND 141 frequently been afforded of the concern adding to its riclies by tlie laws of the country in which the new branch has been situated — not that this was the primary object of the legislation ! The actual reason for this, of course, has been merely to retain a hold over the company, and to obtain a con- venient source of legal damages if the latter should become involved. It is important that the difference between the affairs relating to the Federal and Provincial Govern- ments of the various Republics of South America should be understood not only by those intending to set out for the Southern continent, but by those who are pre- pared to invest money in its enterprises. From the investor's point of view the situation is apt to be somewhat confusing. He may, for instance, hear the most favourable account of the financial in- tegrity of a certain Republic, and he may nevertheless be warned against buying bonds issued by one of its provinces. The fact is that the degree of autonomy in the scheme of provincial government of many of the Republics is such that it is possible for a province to bear a bad financial reputation even in a first-class country, and, on the other hand, it is even possible for the credit of a well-managed province to stand high, though it may be situated in a RepubUc whose borrowing powers are at the very lowest ebb. Generally speaking, however, it stands to reason that the Federal investments offer far greater security than the provincial. Indeed, there is more than one notable instance of foreign investors having suffered financial disillusion and disaster from too great a confidence in the financial integrity of some of the provinces of most reputable Republics. In such cases pressure is sometimes applied to the defaulting province by the Federal power ; at the same time, it must be understood that this latter, in the majority of cases, has no consti- tutional authority to intervene, and such action as it 142 SOUTH AMERICA may take is only for the sake of its own good name and credit. We may now take a somewhat abrupt descent from these high realms of politics and finance to a subject of more general, and at the same time more intimate, interest. There is undoubtedly a great opportunity for hotel enterprise in South America. With all his virtues, the South American has never shown himself an adept in the art of hotel managing. This is scarcely to be wondered at, when the traditions are considered that he has in part inherited from his Iberian ancestors. The Spanish hostelries, even of the earlier part of the nineteenth century, were unique in Europe. One gathers this from the records of many travellers, but more especially from the pen of that most fascinating writer, Richard Ford. In his Gatherings from Spain you may obtain a graphic picture of the establishments that at that period lay at the sunny sides of the Spanish roads, and that rather reluctantly consented to tolerate the travellers that fate — and mules or horses — brought to their doors. The old-time Portuguese inn, moreover, although rather less .dignified and more accommodating, was anything but a model of what, from a modern point of view, such institutions should be. It is true that this particular type of caravanserai does not seem to have been translated from the Iberian Peninsula to the New World. At the same time, the older-fashioned hostelries of the latter continent have always been of a rather primitive order, and in many of the remoter districts this condition of affairs still obtains. Should you happen to strike upon a small township in one of the less advanced Republics when the place happens to be crowded, it is by no means improbable that you may be told off to share a room with half a dozen others of every shade of social standing and cleanliness, or the reverse. It is a test of democracy that is apt to be a little FINANCE AND DEMAND 143 trying ! No sympathy, however, is to be expected from the landlord, who is apt to be very reluctant to accede to a request on the part of the traveller that his slumbers should be separated from those of what he alone is pleased to term the common herd. If good Cristianos are not fit to be associated with, the landlord will argue, then who is ? Even the offer to pay for the entire room and for all the beds in it is usually of very little use. The verdict of the landlord is that, although you may pay for seven beds, you cannot eat seven meals, and that therefore your single custom is less profitable than that of the rest put together. Besides, he will add, with no little reason, why should he offend seven good customers for the sake of a passing traveller ? I have interpolated all this merely to show the sort of accommodation that may be met with off the main track, and to emphasize the fact that among the many gifts to which the South American may with good cause lay claim, that of running a hotel on the comprehensive and subtle lines that are now a feature of the art does not claim a place. It is the fashion to assert that the British cannot run a hotel in so satisfactory a fashion as is the peculiarity of many foreigners. This may or may not be the case. Certainly, in so far as hotel enterprise is concerned, the British have never shown themselves backward, and in South America they are very much to the fore in this respect, although it must be said that the actual managers of many of their establishments are Swiss. It seems to me that it is essential, in connection with this enterprise, to remember that the South American of the wealthy classes is now essentially up to date — at all events, in the great and flourishing Repubhcs of the South of the continent. He has learned to appreciate such classic erections as Claridge's, the Ritz, Carlton, and Savoy in London, and in Paris he patronizes that type of hotel of which the Majestic is probably the latest and most gorgeous. He is now demanding 144 SOUTH AMERICA establishments of this kind in his own continent, and in some towns he already possesses them. The enterprise, of course, is merely in its infancy, and it is certain that the number of promising situations for a first-class hotel in South America is unique in the history of that industry. The rapid spread of the railway lines, it should be said, is assisting the demand for hotels in general in a double sense. For not only are the new systems opening up fresh districts that immediately become in need of comparatively modest hotels of their own, but — at all events so far as the South of the continent is concerned — the improved travelling facilities have the effect of bringing a fresh influx of people from the provinces to the great railway centres, and thus creating a demand for greater accommodation in those places. It is, of course, quite safe to assert that hotels and restaurants are destined to play a greater part in South America in the future than in the past ! That probabiUty clearly applies to almost every part of the world. But in South America there is a reason for this beyond the mere questions of the increase in population and wealth. It is only within the last twenty years that the South American woman of society has begun to emerge for social purposes from the comparatively close pre- serves of her own house and the establishments of her intimate friends. Until that time she had yielded to Iberian tradition to the extent of seldom or never appearing in public at restaurants, or even at hotels, when it was possible to avoid it. This prejudice has now completely disappeared, with the result that the hotels and restaurants are reaping the benefit of a very profitable amount of additional trade. Those who are experts in the hotel world will doubt- less understand that, so far as the majority of RepubUcs of South America are concerned, it is far safer to initiate an enterprise on a completely modern and lavish scale than to speculate in a less pretentious and comparatively FINANCE AND DEMAND 145 modest establishment at a lesser cost. It would be highly unwise to attempt to lay down the law on any subject such as this, or to attempt to generalize con- cerning it ; but it may be taken for granted that in the leading cities of South America any enterprise that is not conducted on up-to-date lines will have very little more chance of success than it would have in London, Paris, or New York. The question of clothes in South America is becoming a more and more important one. In the progressive Republics of the continent no little enthusiasm is now shown in the endeavour to cope with — and if possible to be a little in advance of — the fashions of London and Paris. Before the outbreak of the war it was no uncommon thing for Parisian dressmakers to undertake a tour of all the principal cities of South America and to sell garments and receive orders to an extent which, at all events on the surface of it, could not have been other- wise than very remunerative. As South America depends on Paris for its ladies' fashions, so does it look to London for the clothes of its men, and to a somewhat lesser extent some of the leading London tailors had already begun to adopt the idea of sending their representatives to the various large towns. The chief South American centres for the trade in both male and female clothes, it need scarcely be said, are Buenos Aires, Rio de Janeiro, Santiago, Monte- video, and, to a certain extent, all the important cities of the progressive Repubhcs of the South. The opportunities which offer in these directions are undoubtedly enormous, as large indeed as the profits which would seem to be made by the costumiers and tailors in the Latin continent itself. In this respect these clothiers of mankind would seem to be much on a par with the doctors in the Latin continent ; for so high are the average charges that 10 146 SOUTH AMERICA the South American frequently finds it cheaper, if any- thing in the nature of an operation is concerned, to take steamer to Europe, have his complaint attended to there, and to return to the Southern continent. Something of this condition of affairs exists in the world of clothes, although here the high duties placed on imports of this kind in the Southern ports play their part in the situation. It is for this reason that the South Americans are accustomed to purchase such enormous quantities of clothes, boots, and similar articles when in London and Paris. An enterprising representative of these branches of industry, however, were he prepared to take a con- scientious tour of the continent and to branch out from time to time from the main arteries of society into some of the larger provincial towns, would undoubtedly reap enormous financial benefit from his venture. I have referred in another book to those enterprising British manufacturers of more than a century ago who, when the trade and the ports of Brazil were first opened up to general commerce, sent a consignment of skates to Rio de Janeiro in order that the Brazilians might have an opportunity of skating — on such ice as the intense heat of the subtropics and the tropics permitted ! But it does not follow that, because there is no ice in Brazil, there should be none in any part of the continent. Ice, as a matter of fact, is to be met with in inconveni- ently large quantities in the far South, where the cUmate is far colder than any that is known in Great Britain. Even in Central Argentina the temperature in winter entails the use of fires and stoves, and it should be remarked that furs of all kinds are very popular, and are much worn by the ladies of Buenos Aires and else- where at this period There is no doubt, indeed, that the market here for furs is an important one, and is worthy of considerable attention. The importation of boots into South America is yearly growing more important. Notwithstanding the im- FINANCE AND DEMAND 147 mense quantities of leather produced in the various parts of the continent, there are very few bootmakers in South America who lay themselves out to supply the needs of the wealthier classes, who are naturally more ambitious in their style of footwear than the labouring classes of the community. In the majority of the South American Republics the proportion of heavy boots worn is very small indeed, and even in the pastoral countries, such as Argentina, Chile, Uruguay, and Paraguay, the boots worn by the Gauchos and their brethren of the saddle are very light, occasionally almost to the point of flimsiness. This applies, too, to many parts of Brazil, and, indeed, to the general run of the communities throughout the continent where the warmer cUmate prohibits too heavy a species of footwear. The United States is the most important exporter of boots to South America. Other countries concerned in this trade are France and Switzerland, Great Britain being content with a com- paratively insignificant share of the supplies. In these products the American imports appear to be the most costly in price and to enjoy the highest reputation for quality. At the same time, it must be said that a great number of South Americans visiting London lay in a stock of expensive boots just in the same way as they purchase their clothes. In the high-grade qualities, therefore, a larger trade is done than appears on the surface of affairs, but as regards other qualities the British share, as has been stated, is very small. A certain number of boots are made in Brazil, where, by the way, the footwear is apt to be somewhat florid in style. Perfumery constitutes one of the most important articles of its kind in South America. Indeed, the Latin American is largely addicted to the use of scent, and the figures which are occasionally given to show the quantity and the cost of this squirted about on the occasions of the Carnivals alone are purely amazing. 148 SOUTH AMERICA France, the home of the finest perfumeries, has naturally the largest share of this trade, and in 1912 her proportion of the imports to Argentina was nearly 75 per cent, of a total of almost £300,000. In Brazil the figures are probably considerably in excess of this, although definite statistics on this point do not seem available for the entire Republic. Some idea of the great volume of this trade, however, may be gleaned from the fact that the State of SSo Paulo alone imported nearly £100,000 worth of perfume in 1913. No other of the South American RepubUcs is in a position to compete with figures such as these. At the same time the demand for perfumery is a sufficiently important one throughout the continent. Venezuela, for instance, has imported more than £20,000 worth during the latter years, while Colombia is not very much behindhand in this respect. The countries, however, which follow Argentina and Brazil most closely are, as might be expected, Chile and Peru. There is one final topic which may well be broached before this particular section of the volume is concluded. The question of exhibitions is one which has of recent years attained to greater importance in South America than ever before. It seems by no means unlikely that this particular species of aid to commerce will be extended in the near future. It is certain that the influence of the Argentine Exhibition of 1909, and of the Brazilian Exhibition of a year or two later, was very considerable on the various industries. In both these Exhibitions it may be said that the part played by the British was sufficiently important, and, indeed, the work achieved by the British railway com- panies in the Argentine Exhibition was of a most notable description. Before the outbreak of the war there were many suggestions for new endeavours in this direction, among them having been the plans of more than one floating FINANCE AND DEMAND 149 exhibition. In order to effect this it was proposed to charter a vessel of large size and to send it to all the principal ports of South America laden with specimens of the products of the various British industries. If an enterprise of this kind were well conducted, there is no doubt that the benefit it would confer upon British commerce would be enormous. On the other hand, it is sufficiently clear that any attempt to carry out any such venture on a secondary scale must end in a complete fiasco, as indeed has before now proved the case with two or three enterprises in South America which were conducted on a modest scale, with the idea of benefiting merely some small sections of the general British industrial community. One of these which I have especially in mind was re- markable for the type of goods it exhibited, which were of a cheap and unattractive order. Needless to say that this did not make the least appeal to a very wealthy country, the inhabitants of which asked nothing more than to be allowed to buy the best article that was made, quite irrespective of the price which might be charged. It is true that the financial situation of South America is in some respects not quite what it was a dozen years ago. At the same time, it still ranks as one of the most intrinsically wealthy stretches of country in the entire world, and it is unlikely in the extreme that the South American in the near future will fall away from the high standard of prices and quality to which he has become accustomed. It would seem that at the conclusion of the war the impetus which the strife has given to British manu- factures might render it possible, and even advisable, to hold an exhibition of British-made goods, which might conceivably be held in more than one of the large centres by the simple means of transferring the exhibits from one of the great ports to another. This is the more feasible as nearly all the largest and most notable of the South American commercial towns are situated 150 SOUTH AMERICA on the seacoast. The range of these cities is astonish- ingly large, and includes such important towns as Buenos Aires, Rio de Janeiro, Valparaiso, Montevideo, Lima, and half a dozen others of the first order. It has been a source of some surprise to many people that the more progressive South American Republics have not followed the enterprising example of our own Dominions in establishing agencies in the leading cities of the world where their products may be dis- played. I have put this suggestion to more than one of the Presidents of the South American Republics, and it has in general been favourably received, although on one or two occasions the remark has been laughingly countered with the suggestion that the South American Exhibition of the kind was sufficiently patent in the vast cargoes of meat, cereals, and varied produce which were continually arriving from the continent at the European ports. This, of course, is true enough, although it does not, from my point of view, detract from the additional advantages offered by these little permanent exhibitions that never seem to fail to attract public attention. CHAPTER XIII MERCHANDISE AND COMMERCIAL TRAVELLERS The commercial traveller in South America — Questions of licences and taxation — Differences in this respect between the Federal State and the provinces — Expense of living in South America — High prices not necessarily a disadvantage to the com- mercial man — Some axioms in trade — South America as a continent of rapid changes in customs tariffs and commercial regulations — Some characteristics of the South American pur- chaser — Travel facilities in South America — Modern extent of the railways — Some international routes which are now possible — Questions of invoices and local currency, weights and measures- Advantages of emplojdng the latter — Some appeals for the display of greater enterprise in British trade — Quotations from Consular Reports having reference to this. The commercial traveller who sets out for South America must find himself prepared to meet with many conditions that are new to him. Not the least important of these is that he must submit to be taxed — in fact, he must pay for the privilege of being what he is ! In a market that is as profitable as that of South America, this circumstance certainly need be productive of no discouragement ; but it is, of course, advisable to find out before starting the amount of the toll levied in the various Republics and provinces. This is occasionally apt to suffer rapid and drastic alteration. For instance, until 1917 the tax in Argen- tina, so far as Buenos Aires, the Federal capital, and the National Territories were concerned, was 500 pesos, and, in addition to this, each province levied its own tax. In 1917, however, the rate for the Federal capital and the Territories was raised to 5,000 pesos, that is to 161 152 SOUTH AMERICA say, to an amount ten times as much as that which formerly prevailed. In matters such as this it is important to remember that the constitution of all the Latin American Republics allows a large measure of autonomy to the provinces. Speaking generally, it may be said that a province of one of these nations is in a sense quite as self-contained as the Republic to which it belongs. A casual inquirer might well be satisfied with the information that the tax on commercial travellers in Argentina was 5,000 pesos. Not until he left the city of Buenos Aires would he discover that he had got outside the Federal area, and that, say, the province of Entre Rios was politely presenting its bill for welcoming him in his official capacity as a commercial traveller. In the National Territories, on the other hand — which are the less important and rather sparsely populated areas that have not yet attained to the status and dignity of a province — it will be found that the Federal authority holds good, and that his original contribution will cover his itinerant operations. A similar condition of affairs will be met with in every Republic. It is particularlj' marked in Brazil, where many of the provinces — or rather States, as they are called here — are so large as to constitute in a sense countries in themselves, and where the respective laws and regulations differ widely in many cases. South America is undoubtedly an expensive continent to live in, and, in consequence, is a still more expensive continent to travel in. I think that I have had occasion to remark before that any one who sets out for one of its Republics with the object of making money should abandon the habit of thinking in pounds, shillings, and pence. Otherwise, unless he be a capitalist, he will find himself weighted down beneath a load of greying hairs and a haunting fear of imminent financial disaster. High prices, as a matter of fact, should be the last COMMERCIAL TRAVELLERS 153 consideration to deter the commercial man. It is surely one of the first axioms of trade that money is most rapidly made in those spots where the cost of the necessities of life approaches that of the luxuries else- where. This has been made very clear at one period and another in some of our own colonies, and was, perhaps, most forcibly demonstrated in Johannesburg some twenty years ago. There, an egg, deposited by a most ordinary and plebeian barndoor fowl, might have cost half a crown. But half-crowns were so plentiful that, even after one of these rare and curious eggs had been bought, there were other coins left. And so it was — and it remains true of many parts of South America to-day — that half-crowns were saved where sixpences would have been put by in countries where living is cheaper. There is probably no other continent where the changes in industrial and commercial affairs are more frequent and more rapid than in South America. This condition of affairs is not necessarily due to any want of stability in the respective Governments and financial situations. It is due largely, in fact, to the progress which is continuously being made, as well as to the love of experiments which represents an important feature of the Latin American temperament. In any case, these continuous changes render it strongly inadvisable for the merchant or manufacturer on this side to take too much for granted. The amendments are specially noticeable in the customs tariffs and in the regulations affecting Consular invoices and the various taxes levied on agents and commercial travellers, as has already been said. If entire accuracy concerning these points be desired, it is essential to obtain quite the latest sets of documents explaining the situation. Even then it is wiser to apply to the Consuls concerned in order to ascertain whether they have received notice of any subsequent amendments. Without attempting to become involved in the actual 154 SOUTH AMERICA conduct of the commercial traveller's business with his customer — which is entirely his own affair — we may refer to one particular set of circumstances the possibility of which cannot fail to be of interest to him. A point which has been raised more than once is the difficulty which occasionally occurs in persuading the South American buyer to accept delivery of the entire amount of the order which he has given. It is true that this is not of frequent occurrence. Nevertheless, it happens more generally in the Latin continent than in Great Britain, and in those different places where this disconcerting phenomenon is most frequent it may almost certainly be found to arise from the same cause. The South American is enthusiastic by nature — if it be permissible to generalize to this prodigious extent— and it is owing to this trait in his temperament that a certain number of his business representatives are more or less at the mercy of the commercial traveller with a persuasive tongue. Thus it happens that one of these commercial men may in all honesty give an order, stirred by the optimistic vein of the moment, which later reflection will show him to be largely in excess of his needs. The average Englishman, on discovering this, would write to his salesman, instructing him to reduce the amount ; but the average South American is loath to do this — largely, it must be admitted, because he dislikes performing an unpleasant action a moment sooner than it is absolutely necessary. As a result, the evil hour is frequently postponed until too late for the salesman's peace of mind, and it is then necessary to enter into some compromise, which is usually detrimental to the profit of the transaction. Needless to say, this kind of occurrence is not frequent in the populous centres. At the same time, it is as well for the commercial traveller who has had the enterprise to strike out into less trodden fields of the smaller Republics to sound his customer in a diplomatic fashion concerning his actual needs — or at all events to refrain COMMERCIAL TRAVELLERS 155 from pressing him to increase his order to an extent which may seem unduly ambitious. There is no doubt that tlie field of the commercial traveller in the Latin continent is widening in a striking fashion. The rapidity with which railway facilities in South America are extending is amazing. This will be evident when it is realized that it is possible now to journey from Peru to Brazil by rail. It is true that the route which must be followed to accomplish this is a most devious one; and the length of the journey actually exceeds 4,000 miles. In order to accomplish this one may start from Cuzco, and by means of the various sections of the longitudinal line which are now pieced together, may proceed to the south as far as Valparaiso in Chile ; after this the route is altered directly to the east by means of the Transandine Railway, which makes possible the route from Valparaiso to Buenos Aires. From Buenos Aires the road strikes out to the north through Uruguay, entering Brazil at Rivera, whence the journe}' is taken up by the Brazilian railways by way of Sao Paulo and Rio de Janeiro. There is an alternative way to this latter section of the route, and this is effected by way of Buenos Aires, Rio de Janeiro, and Asuncion, in Paraguay. Instead of proceeding on the main line to the Paraguayan capital, however, the Uruguay River is crossed by steam ferry and Brazil entered at Uruguayana, whence the railway service reaches the important Brazilian southern towns. We may now, abandoning locomotion for the time being, approach one or two points which have already received a good deal of attention of late, but which even now do not seem to be sufficiently realized by many sections of the manufacturing and commercial communities. It cannot be too strongly urged that invoices should be made out in the currency and weights and measures of the country to which the goods are destined. This 156 SOUTH AMERICA point has been frequently remarked on by those who have been fully acquainted with the commercial situa- tion of late years. But the number of merchants and manufacturers on this side who have abandoned their time-honoured practice so far as South America is con- cerned is comparatively insignificant. The importance of this matter may be estimated by transferring the situation in the imagination to our own country, and supposing ourselves the buyers instead of the sellers of all the produce concerned. Now, if a precisely similar article were offered us at the same price by two different people, it is clear that it would take very little indeed to turn the scale of an order in favour of one or the other of those who were competing for it. Supposing, further, that the one offer were framed in pounds, shillings, and pence, and that the other were put in some currency that we did not understand, would not this point suffice to turn the scale ? In nine cases out of ten one may be quite certain that it would — and if the tenth did not fall into line with the other nine, it could only be that the man concerned was influenced by some sentimental reason, or that he was one of those rare specimens of humanity who willingly give themselves more trouble than is necessary. Putting the latter contingency aside as somewhat unreasonable even in a world that Carlyle insisted on peopling largely \\ith fools, wc are left with the very doubtful power of sentiment as the sole anchor by which this time-honoured system may hold good. And it is perfectly clear that he who depends on sentiment — purely benevolent sentiment — on the part of others for the furtherance of his affairs is making ropes of sand in a fashion worthy of the most enthusiastic devotee of Colney Hatch. The British sovereign has always commanded an intense and well-deserved respect throughout the world, and owing to its great influence there have been times when wc have been enabled to insist with COMMERCIAL TRAVELLERS 157 impunity upon the terms of our own currency and our own weights and measures being employed in our rela- tions with South America. But this was at a time when we possessed almost a monopoly of the trade of that continent — a condition that even the most san- guine cannot pretend to have existed during the past quarter of a century. There are many sources from which the currency, weights, and measures of the various Republics may be obtained ; but, in order to present them in a compact and comprehensive form, I have included them in a later place in this volume. A glance through the Consular Reports referring to South America during the past few years will show that the Consuls, where they have seen fit to make any remarks at all on the subject, are practically unanimous in their views concerning the awakening of a more enterprising spirit in the British trading ventures in the Southern continent. The following half-dozen extracts, which I have taken more or less at haphazard from recent Consular Reports, will illustrate what I mean : No. 5146. Colombia. " Woollen suitings are largely imported from France, Germany, and Belgium, where manufacturers are willing to supply suit lengths. As firms in the United Kingdom have hitherto refused to make this concession, the imports of this commodity from home have not been large. Nevertheless, there was a fair quantity of suitings imported from the United Kingdom last year, and it is possible that when experience proves that British-made cloths are very durable the consumption will increase." No. 4904. Colombia. " I think a larger trade could be done with this Depart- ment if British manufacturers or exporters would only 158 SOUTH AMERICA pay some attention to issuing their catalogues in Spanish. I am convinced that quite a considerable share of the trade goes to the other countries who send out attractive catalogues or booklets written in the language, whilst English catalogues are at once relegated to the waste- paper basket on account of not being understood." No. 5451. Brazil. "The need for local representation cannot be too strongly urged upon British firms trading or desirous of trading with Brazil. Numerous instances could be cited of foreign firms whose business success in this country has been entirely due to the intelligence and ubiquity of their representatives." No. 5458. Argentine Republic. " The present moment offers a unique opportunity for British trade. It is an opportunity that can easily be missed. The dangers, according to my appreciation, are two — failure to grasp the local situation and failure to appreciate the activity of the most formidable competitor that remains. "As regards the local situation, owing to the trade depression only very limited orders have been going abroad for some years past. There has been lack of ready money in the market. A revival is only a question of time. Importers are already beginning to throw out feelers with a view to future orders. Inquiries as regards identical goods, hitherto imported from Germany, are being sent to British and American houses. These feelers are taking the form of calls for tenders, or the sending of orders on a very small scale. They look insignificant, but will, in many cases, be the bases of permanent business connections in the future. " As regards competition, this market is going to be a scene of keen competition between the United Kingdom COMMERCIAL TRAVELLERS 159 and the United States. The Americans are showing great activity, and will get the market if it is in any way possible. From what I have seen so far, the American policy will be to win on the question of prices. American houses will sacrifice profits, and, where necessary, even sell under cost price, to get the initial footing. " I would therefore impress on British houses the following two essential points : " Do not despise small orders. Treat the £ioo order with the same respect as if it was for £100,000. " Use extreme caution when quoting prices. They should be the very lowest terms that your business can possibly stand. There should be no question of how much you can get, but of how much you can sacrifice in order to secure the customer, " I have just seen two test orders, small but vitally important, lost by the United Kingdom to Pittsburg, United States of America. There was a wide difference in the prices quoted, the qualities in each case being identical. I have also learned that the British firms concerned could have made lower quotations. They were, however, under the impression that they were safe from American competition. They did not quote their lowest possible prices. They quoted what they thought would be just below the lowest American quotations. It was not a sincere effort and they lost the business. Both the orders were for goods hitherto supplied from Germany — ^iron beaming and galvanized iron sheeting." No, 5156. Venezuela (Maracaibo). " There has been a considerable increase in the imports of all kinds of machinery, and it should be mentioned here that customers in this district prefer British machinery to the cheaper American productions, but as the faciUties for communication with the United States are much better than with the United Kingdom, British 160 SOUTH AMERICA manufacturers should send representatives to get into direct touch with the customers, who are principally planters in the interior." No. 5024. Uruguay (Rio Negro). " As far as one can judge by personal observation, goods of British origin are not very much to the front, such things as earthenware, china and glass, iron- mongery, brushes, cutlery and tools being mostly of somewhat inferior continental or North American make, but there is no reason, unless it is the higher cost, why British articles of good quality should not find equal acceptance." CHAPTER XIV OCCUPATIONS OF THE BRITISH Situation of a British subject proceeding to South America in search of employment — The "Loco Inglez " — His personality as pictured by the South American mind — Early records of the British in South America — Occupations first undertaken by these after the declaration of Independence — The eventual discovery of the most fitting walks of life — The question of the most suitable present- day occupations for the British in South America — Types of men who are not suited to the continent — Pastoral occupations — South America no place for the unskilled British labourer — Occupations of the town and of the country — The openings in the mercantile community — Possibihties for the engineer — Occupations on the land — Life on the estates of the Southern RepubUcs — The Mayor Domo — A description of his life — Present- day relations between capital and labour in South America — The trend of private firms towards amalgamation — Gigantic scale of modem enterprises — The effect of this on the meat trade and elsewhere — The opportunities farther afield. Having considered some aspects of the use of British capital in South America, and a few of the very numerous circumstances which concern the British manufacturer and merchant who have business relations with the Southern continent, we may take the case of the Britisher who sails South with the idea of obtaining employment in one or other of the Latin RepubUcs, or, as is infinitely wiser, who has made arrangements for a billet before saUing. He will form one of a very considerable army that has been at work now in South America for well over a century. The South American in the first instance looked upon him with a considerable amount of sheer amazement. For generations he was known as the 11 162 SOUTH AMERICA " Loco Inglez," or the " Mad Englishman." He com- manded respect, but at the same time much astonish- ment. As regards the South Americans, we may do away with the slightest necessity for argument by admitting without any delay at all that no doubt the " Loco Inglez " was, and is, occasionally something of a curiosity as human products go. After all, it is better to admit such things freely and with haste, before the confession is extorted by some one else ! It is my present object to try and claim some good reason for the existence of the " Loco Inglez " in South America — I mean some good reason beyond what is alleged, by some of the inhabitants of that continent, to be his natural inclination to walk in the sun when all reasonable people stroU, or sit, in the shade ! The task should not be difficult ; for, after all, the history of a century and more has a good many of these reasons to show. There have, of course, been some salient examples of the " Loco Inglez," such as Ambrose O'Higgins, Cochrane, Miller, and a certain number of others of their type. But it is not to such as these that I would refer at this particular moment. The " Loco Inglez " that I have in mind is a much humbler and less gifted person than any of these. He is the one who sails out from Great Britain to Latin America in order to take up some junior position in a railway company, in a commercial office, on the land, or in any other capacity of the kind. He has his weaknesses and his eccentricities, of course, and sometimes it is plain that he is endowed with the more sterling rather than the pohshed attributes of humanity. But I think that I can claim for him a fairly clean commercial, political, and moral record. The history of the British in republican South America does indeed seem to reveal the fact that, as an immigrant, the EngUshman may be rehed on to refrain from intrigue and from interfering with political matters that do not OCCUPATIONS OF THE BRITISH 163 concern him. It is certain that in the necessarily unsettled conditions that followed the hberation of the continent the British who found themselves on the spot refused opportunities of making political mischief — and of reaping some ill-gotten material profit to them- selves — such as people of a more intriguing national temperament might well have failed to resist. The early records of the British in South America are convincing on this point. There is no doubt, on the other hand, that for the first few years after Indepen- dence the attitude of many of the British settlers was, from certain points of view, a mistaken one. They were inclined to make the scope of their energies too wide for the natural conditions of the continent. I have already referred to this particular subject in another work ; but some of the matter may well be introduced again here. It was natural enough that they should have served as doctor?, miners, and as hotel, eating-house, and reading-room proprietors. They were to be met with, too, as laundry-folk, market-gardeners, shopkeepers, artisans, and coachmen. They founded periodicals in Spanish as weU as in English, and in the countries of the Rio de la Plata they frequently served as the crews of the river steamers. Scarcely had the Spaniards been driven from Lima — and, indeed, before they were expeUed from Callao — when one reads in the chronicles of those days of Walker's Hotel near the Church of San Agustin, in Lima, as well as of Oliver's Hotel in the same town. In this last buUding, by the way, a British naval chaplain has placed it on record that he married one of the first EngHsh couples to undergo that ceremony in Spanish South America. These particular occupations were weU enough in their way, but so enthusiastic was the general enterprise at that time that in 1820 a colony of Scottish milk- maids was introduced into Buenos Aires in order that 164 SOUTH AMERICA the use of butter might be encouraged in that place. The Scottish girls, after some diflBiculties produced by the wild state of the cows, eventually produced a con- siderable quantity — only to discover that the preference for oil which prevailed at the time remained quite unshaken. There occurred a very great number of mistakes such as this before the British discovered the particular vocations in which they could be of the chief use in the Southern continent. And by the time they had dis- covered this they had discovered another thing — that they had developed a very real affection for their adopted countries, into the manners and customs of which their personaUties were rapidly becoming assimi- lated. But here I will permit myself the luxury of quoting from the former work referred to : " It was at this period, of course, that so many of them ceased to be ' Locos Ingleses ' ; for these develop- ments caused them to lose intimate touch with the land of their birth. The process was gradual and imper- ceptible, and its conclusion invariably saw the man a devoted citizen of the Republic whose soil he now claimed as his own. As for their sons and grandsons, they had no doubt — nor even any consciousness of doubt — in the matter : every breath that they drew was Latin, and very rightly Latin. " It was here that the secret lay — the key to the situa- tion which had not been grasped by any Anglo-Saxon foreigner in the very first years of the period of Inde- pendence. South America, being essentially a Latin continent, had to develop on Latin lines. There is more than one road to an advanced civilization." " When it had become plain that these new States did not intend to adopt the full Anglo-Saxon ideals, or, to be more accurate, did not intend to adopt them to a greater extent than they considered fitted in with their own atmosphere, it must be put to the credit of the British that they realized the appropriateness of the OCCUPATIONS OF THE BRITISH 165 choice, and set themselves contentedly to fill those particular roles which the exigencies of industries, politics, and temperament allotted to them. " Thus in the course of time the number of British shopkeepers, officials in the pay of the various Republics, and other persons whose occupations gradually became more or less superfluous, diminished, while on the other hand the demands of the finance, transport, wholesale commerce, and the land attracted an ever-increasing flow of men of this nationality. "It is to these particular spheres of utility that the ' Loco Inglez ' has chiefly been recruited. He has been at work now for over a hundred years, and on the whole he seems to have attracted remarkably little notice. Now, I think that you will agree with me that this is the finest testimonial that he can expect. After all, what does it mean ? He has followed on with his work calmly from one generation to another, living at peace with his neighbours and fitting into his rightful place in the country. Surely this is not claiming too much for him ! There may be some who will maintain that it is too little. But in these days, when the world- wide ramifications and intrigues of the enemies of democracy are being revealed, it is surely sufficient." The question of suitable occupations for the British in South America is a very important one. Indeed, if the reader will pardon a personal interlude, I should like to introduce this subject by an apology to those numerous correspondents who have done me the honour to write to me asking advice on this subject, and whose letters have remained unanswered owing to the fact that I was many thousands of miles distant from England at the time of their arrival. Opinion is by no means unanimous concerning the advantages of setting out for South America in order to seek employment. I have had to emphasize before now the urgent necessity of not considering that conti- nent in the light of a British Colony, and of setting 166 SOUTH AMERICA sail for one of the Latin American Republics armed only with a stout heart, strong arms, and the species of knowledge which would suffice for a man when thrown into the company of his own compatriots. Imagine a Southdown, Devon, or Cumberland shepherd sallying gaily off to Spain in order to make his Uvelihood in the pastures of Andalusia, urged there by the knowledge that he was a thorough master of his craft ! It is true that in the live-stock regions of South America the case is not so extreme as this, for in the temperate countries of the Latin New World the immigrant is accepted in bulk and taken as a matter of course. Nevertheless, to uproot a man of small education from his own surroundings and to place him without further ado among people of habits that differ widely from his, and whose speech he cannot understand, is to leave him as gasping and bewildered as any fish out of water. It may be laid down as an axiom that South America is no place for the ordinary British artisan and labourer — that is to say, it would almost certainly be disastrous for him to proceed there as a freelance on the off-chance of something turning up after he had arrived. \^1iere his labour has been engaged beforehand the case is, of course, very different. The industrial history of the continent shows that this has occurred most frequently with Coniish miners, who have arrived in sufficient numbers to form their own communities, and who are thus to a certain extent independent of their surroundings so far as society is concerned. Such experts as cattlemen and shepherds, too, have come out by arrangement in considerable numbers to the countries of the Rio de la Plata. Indeed, so far as the Irish are concerned, an influx of this kind has been going on for over a century now, and these immigrants may be said to form an exception to the general rule, their relations with the South Americans in the past having been greatly assisted by a common rehgion. OCCUPATIONS OF THE BRITISH 167 Many of the descendants of these first immigrants are now extremely wealtliy men, counting not a few million- aires amongst their number. Even such examples as these, however, do not affect the soundness of the principle that South America in general is not suited for the British working man who proceeds there on his own initiative and responsibility. In no class of life whatever, as a matter of fact, is it advisable for one who wishes to make a career in South America to proceed to that continent without having made some preparation and acquired some knowledge beforehand of what awaits him in the land that he has chosen unseen. As to the precise occupation which the average Englishman may take up in South America, the nature of this may in the first place be marked off into broad divisions. He may elect to work in a town, or he may choose to occupy himself on the land, or in some other calhng which implies a country life. In considering the various prospects of these, I am leaving entirely out of consideration for the present those belonging to the labouring classes ; for, as I have already endeavoured to point out, these should on no account set out for the Southern continent unless by special arrangement and under special conditions. As regards the towns, the new arrival will find his opportunity in billets in such institutions as banks and mercantile offices, where he will work under conditions very similar to those which prevail in his own country. It is true that he will be allowed a greater degree of general freedom. Thus, the conventions of South America allow smoking at all hours at all places, even in the most imposing offices, and, indeed, the atmosphere in general is far more free and easy than that which obtains in Europe. He will find himself, moreover, in possession of a considerably higher salary than any to which he could attain in the older countries. But, on the other hand, 168 SOUTH AMERICA as his living expenses will have mounted up to at least the same proportion, his actual gain from this will be done away with. It may be safely said, indeed, that the new-comer to commercial life in South America need look forward to no startling financial success in his early days in the continent. It is not until he has acquired a really useful knowledge of the Spanish language, and can take advantage of the opportunities such as his experience will point out to him, that he can hope to begin to dip his fist into some of the piles of dollars that are un- doubtedly still in existence in Latin America. The process of arriving at this pitch is by no means so rapid as was formerly the case. In the progressive Republics the important development of the industries has brought into being an intricate state of affairs, such as has a discouraging effect on any rapid commercial rise. In the less exploited lands the opportunities of this kind are still as great as ever ; but here, of course, far more determination is required, for not only are there numerous discomforts and actual hardships to be endured, but to these are frequently added the dangers of an unhealthy climate and of primitive sanitation. As regards the great stretches of territory outside the towns, probably the finest chances of all for one not possessed of capital are those which await a capable engineer with a good knowledge of Spanish. The sphere of his utilities is most certainly extraordinarily wide in South America, more especially in the mining and railway territories, although he, too, will have to put up with numerous discomforts and hardships in return for his opportunities of advancement. There remains the land, and this occupation, which, so far as the Enghshman is concerned, is confined to the Southern Repubhcs, is, although strenuous, a suffi- ciently pleasant one. The remuneration is very slight ; but, on the other hand, free board and lodging is pro- NITRATE WORKS. To face p. l68. OCCUPATIONS OF THE BRITISH 169 vided, and, with experience, the opportunities on the land are not to be despised. The following extract from a previous work of the author's will give an idea of the life of a manager, or Mayor Domo, in the Southern pastoral countries : " The Mayor Domo plays an important part in the affairs of the camp. As manager, or rather as under- manager to a resident estanciero, he reUeves the latter of much of the humdrum portion of the work — if the active superintendence of cattle work, harvesting, and the like can be known by such a term. It is his duty, moreover, to keep the books, pay the men, and attend to the thousand and one calls which the manipulation of a large property of the kind entails. " Before he attains to this position it is necessary for him not only to have spent some time in the country ; he must also have passed a considerable period upon the land itself, in order that he may have become con- versant with the methods of the work and the habits of the peons as well as with the language. His hfe is agreeable enough, if strenuous. Compared with many a manager in the back-blocks of New Zealand the Mayor Domo is in clover. The former, for instance, as often as not, will know nothing of bread, milk, or vegetables. He will ' do for himself ' as best he can at the end of a hard day's work, for the simple reason that there is seldom any one else to turn a hand to his aid. So his fare not infrequently will consist of cold meat, flavoured by milkless tea and ship's biscuits, and this without a break for day after day. In many respects the Mayor Domo is more fortunate. He has his moments of discomfort, of course, and his hours of early rising and of hard riding beneath a blazing sun, but he will at all events find his meals awaiting him in readiness upon his return, and servants at hand to attend to his bodily comforts. And this is a condition of affairs which is not always appreciated to the full by those who have experienced no taste of the far 170 SOUTH AMERICA rougher life that the backwoods of a British Colony involve. " Not that the Mayor Domo's life is necessarily an ideal one. In many instances it is exactly the reverse. The general well-being or discomfort of his existence depends largely upon the individuality of his employer as well as upon the extent of his salary. The latter, as a rule, is a very small one for so wealthy a country as Argentina. There are instances, indeed, where the Mayor Domo's salary does not exceed thirty or forty pounds per annum. But then the post is — or is sup- posed and hoped to be — merely a temporary one in the life of a camp man. It represents a state of transi- tion during which the aspirant to higher honours is approaching more remunerative and responsible office. As a matter of fact, that of Mayor Domo is a young man's billet. Should one observe an elderly or middle- aged man filling it, one will know him for what he is — one of the numerous and pathetic cases of failure." Since these words were first written there has arisen very little need to amend them, so far as the Southern Republics of South America are concerned. As regards our own Dominions, on the other hand, it must be said that many of the essential discomforts of a pioneer's existence are already a thing of the past, even in the " back-blocks," where the motor now frequently glides in those places where, twenty years ago, the roughest of bridle-tracks held no more room than for a single horse. As is the case in all the other quarters of the world, the South American industrial conditions are altering rapidly in two main respects. The strained relations which have cropped up between capital and labour constitute one of these. The other is the important change which is taking place in the operating of the various industries. The work which was formerly carried on by a number of private individuals is now becoming enlarged and concentrated at the same time. OCCUPATIONS OF THE BRITISH 171 Big companies have sprung into being, and numerous amalgamations have taken place in order to perform the work more efficiently, to avoid the evils of over- lapping, and, incidentally, to maintain a larger margin of profit than could otherwise be expected. With respect to this, I may again quote a few paragraphs from a former work, which deal with the question of private enterprise and the modern groupings of capital : " The question is one which has always been of vital importance for the new-comer in the continent to under- stand ; that is, when the various chief centres become congested, nothing more is needed than to go farther afield. This has been proved on countless occasions, and it may be applied to almost every branch of industry in a major or minor degree — least of all, perhaps, to mining, where the question of transport becomes diffi- cult, and which is, indeed, a branch of enterprise more adapted to public companies or to the important capitahst than to ordinary private enterprise, " Of course, like every other continent. South America of late years has tended to grow at the mercy of the capitahst and of the large corporations and limited com- panies, somewhat to the prejudice of the interests of the small private investor who desires to conduct his own enterprise. This is inevitable, of course, when the in- creasing scale on which all things are now undertaken is brought into consideration. Thus, where before a few barges and sailing vessels sufficed for the navigation of a river, whole fleets of steamers are now necessary. And where before a man might own three topsail schooners, and with them carry on a fairly thriving trade on a capital of a few thousands of pesos, a few millions must now be expended to carry on a similar but infinitely swollen enterprise. " It is the same, of course, not only with the mines, which demand the introduction of the modern, expensive, and compHcated plant, but even in many districts in the case of land, which requires regular cropping and 172 SOUTH AMERICA the introduction of costly pedigree stock to maintain the high average of the cattle, horses, and sheep. And it is the same, moreover, with the industries of beef- killing and curing. In the old days an establishment of the kind might be carried on on a comparatively small scale, and, indeed, any small landowner might, by the investment of a few thousands of dollars, start some small plant of the kind, and be certain of a satisfactory demand for its sun-dried beef. But the number of these which now survive is extremely insignificant, for the more practical, elaborate, and of course costly, process of chilling has to a great extent done away with the original methods of curing and drying meat in the sun. " Thus the introduction of the process of chilling meat was fatal to the existence of the small capitalist in the meat-curing industry, and, indeed, has entailed the introduction of world interests, including that of ' trusts,' with all their attendant comph cations, advantages, and drawbacks. The same may even be said of tobacco ; for in some parts of the continent where previously the tobacco might be bought from the plantations and made up into cigarettes — which, although of no great impor- tance commercially, sufficed to keep the owner and his hands in comfort — trusts have again stepped in and are fighting battles with other important combines, in the course of which the original owners of cigarette manu- factories were of course squeezed out of existence and became known no more, " Still, it must not be thought from this that the chances of the private investor in South America are a thing of the past : nothing is farther from the case. At the present moment life in South America tends, if anything, to concentrate itself rather too much in the great towns. The effect of this is to leave not only the rural parts of the various Republics, but many of the minor centres of population, in a somewhat neglected state by comparison. This will be in itself obvious OCCUPATIONS OF THE BRITISH 173 when the extraordinarily large populations of the various capitals of the States are compared with the entire populations of the respective countries." Thus, at the risk of repetition, it is necessary to add that whatever the industry or the occupation may be into which the new-comer decides on throwing his energies, he need not be discouraged if he finds that comparatively little room for them is left in the capital cities. It is only a question of going farther afield. CHAPTER XV INTERNATIONAL TRADE Survey of British trade with South America — Questions of statis- tics and their dates — Argentina as one of the principal British markets in South America — A RepubUc of large cities — The im- portation of iron and steel — Artesian wells — Agricultural imple- ments — Argentine foreign trade — Imports — Principal articles of importation in 1915 — Argentine international trade — Statistics concerning this — Principal ports of the Argentine RepubUc — Railway progress — Statistics affecting the Argentine meat in- dustry. We may now pass from a general, though necessarily incomprehensive, survey of the articles with which British trade in South America is chiefly concerned to a more general survey. This will be best achieved by a glance at some of the circumstances of the various Republics and a certain number of the chief commercial peculiarities which prevail in each. In order to iQustrate these, I have accompanied the letterpress by as many statistics as seemed to present an important bearing on the case. In these I have included not only the various imports of British and of other origin, but I have added the figures showing the respective position of British shipping and that of its rivals — a matter that is of the gravest importance to the welfare of the nation at large, and which, indeed, has a direct bearing on its very existence, as the part played by the mercantile fleet of Britain in the defence of the Empire, from the gigantic Uner to the diminutive trawler, has shown with most striking emphasis in the present war. INTERNATIONAL TRADE 175 As regards the rest, the figures will speak for them- selves. There is, however, one matter which it is necessary to remark on with regard to these. The statistics incorporated in this volume demand some words of explanation. They have been collected at a period which is pecuUarly unfavourable for the study of set figures, and, indeed, were it possible to produce the desired impression without any tables of the kind at the present moment, it would be far simpler and better. But since this is clearly impossible, it has been necessary to do the best with the material at hand. It would, of course, be useless to lay any particular stress, as regards the normal situation, on those statistics which have been published since the outbreak of war ; but the difficulties as regards compiled figures do not end here, as for some years before August 1914 a finan- cial crisis and temporary " slump " had prevailed throughout the majority of the South American Repub- Ucs. Such figures as are available for this period, therefore, do not express a normal situation. It is for this reason that I have allowed an unusually wide scope as regards the periods of years with which the various tables of commercial statistics deal. Some of the figures which are given in these pages may well seem too out of date ; but in many cases this is un- avoidable, and the intention of these statistics is not necessarily to give the very latest developments (which, as a matter of fact, show a condition of affairs which is not typical), but to give an idea of the general trend of the industrial and commercial progress and influences. The reader, therefore, must not be alarmed if from time to time he meet with sets of figures dealing with periods as remote as 1910, 1911, and 1912 ; for there is no doubt that, so far as the majority of the RepubUcs are concerned, these years yield results that are truer to the actual situation than those of the later years of 176 SOUTH AMERICA financial depression and of the utter disorganization caused by the outbreak of the world-wide war, and by the subsequent situations. Argentina constitutes, as is now fairly well known, one of the principal British markets in South America, and the extraordinarily wide range of the exports shipped from the United Kingdom to this wealthy Republic will be seen from the figures appended. In Argentina, needless to say, the competition between the various manufacturing countries is of the keenest order. The principal British interests in this country are in railways, local steamship companies con- cerned with river as well as with ocean traffic, banking and insurance corporations, land, tramways, great municipal undertakings, electric companies, and the Uke, to say nothing of the number of private firms established in the larger cities. As has already been explained, Argentina is essentially the Republic of large cities, notwithstanding the pastoral and agricultural occupations of its people. Thus, the population of Buenos Aires now exceeds 1,300,000. That of Rosario is now in all probability in the neigh- bourhood of 250,000, while that of La Plata has risen to above 100,000, Beyond these, moreover, are numer- ous towns of first-class importance, such as Bahia Blanca, Mendoza, Santa Fe, and many others. As has been said, one of the consequences of the great cosmopoUtan populations of Argentina is the wide range of the imports which are in demand. In the years previous to the outbreak of the war, for instance, it was no uncommon thing for the annual importation of whisky to amount to some £700,000, and the quantity of canned and dried fish introduced would attain to a value of about £250,000 in the course of a year — and this notwithstanding the fact that large quantities of excellent fish are caught off the shores of the Repubhc . The average recent importations of tea reached a total of some £200,000, and in this Great Britain has INTERNATIONAL TRADE 17-? ah important interest ; for, after China, the British possessions sent the largest quantities. The iron and steel trades are those in which Great Britain has always shown herself pre-eminent, and in which there is no reason why she should not still continue to lead the world, notwithstanding the most lamentable falling off in these industries which has been observable during the past twenty years. As must be expected, Argentina is the greatest importer in South America of iron and steel, and in 1912 the imports of this Republic exceeded ;^9, 000,000 sterUng in value. A few figures showing the pro- portion introduced by the various European countries of these iron and steel goods will not be without interest. In 1912 Belgium shipped no less than 42 per cent, of all the pig and sheet iron which was sent to Argentina, Germany being a close second with almost 40 per cent., while Great Britain's proportion only just exceeded 10 per cent. In galvanized iron the figures were more satisfactory, Great Britain accounting for some 66 per cent., and the United States coming second with a httle over 22 per cent. In steel rails, too, the lion's share went to Great Britain, the shipments from this country totaUing over 43 per cent., and the German imports being a little over 26 per cent. In this particu- lar case, as a matter of fact, this high percentage of Great Britain's trade is probably not unconnected with the British-owned railways of South America. In wrought iron the British again led with 42 per cent, of the total amount imported, Belgium coming second with a fraction over 27 per cent. In iron manu- factures, however, the situation was not so satisfactory, the Germans supplying over 32 per cent, of the imports, while those of Great Britain scarcely exceeded 22 per cent. In galvanized wire ^ 51 per cent, was imported from Germany, about 31 per cent, from the United States, and a little over 12 per cent, from Great Britain. 12 178 SOUTH AMERICA On the whole, it will be seen that the condition of the British iron and steel trade as concerns Argentina is by no means unsatisfactory, and although the situation cannot be compared with that which obtained a quarter of a century ago, the condition of this great British indiistry is at aU events suggestive of energy and a certain " hveliness," which, it is to be hoped, will be largely increased at the conclusion of the war. Since the outbreak of hostilities it is hardly necessary to explain that the British exports of these materials to South America have fallen in a most marked fashion. This could scarcely be otherwise, when the importance of these particular branches of British production in the present warhke operations is considered. Argentina offers quite unusual opportunities for the establishment of artesian wells, and there is a large demand for these in the rich pastoral plains of the centre. In these territories, devoted to the breeding of a fine grade of live-stock and to agriculture, there is a notable lack of surface water, and even where this exists it is frequently brackish and unfit for a beverage for man or beast. It is in these extensive districts that artesian wells are used, not only for domestic purposes, but also to supply the water deposits which form such a feature of the " camp," where the cattle, sheep, and horses gather to drink. In connection with this branch of industry, it may be said that there is a large market in Argentina for aU modern agricultural implements and such objects as the latest forms of wire fencing and the like. The question of the importation of Live-stock has already been referred to. INTERNATIONAL TRADE 179 Abqentink Foreign Trade, 1915. Country. 1 United Kingdom 2 United States 3 Italy 4 France |5 Brazil 6 Holland 7 Spain 8 Mexico 9 Uruguay 10 British possessions 1 1 Sweden . . 12 Germany 13 Australia 14 Norway 15 Paraguay 16 Chile .. 17 Denmark 18 Switzerland 19 Portugal 20 Canada . . 21 Cuba . . 22 BoUvia . . 23 Belgium 24 Japan . . 25 South Africa 26 Peru 27 Austria-Hungary 28 China .. 29 French possessions 30 North American posses sions . . 3 1 Other countries Exports " to orders Total . . Imports. Dollars Gold. 67,781,867 56,158,904 21,168,379 13,310,650 10,381,501 1,981,156 11,339,057 15,118,395 1,879,658 8,360,485 2,061,766 5,653,310 1,368,189 2,259,887 776,229 614,844 1,537,052 238,651 1,132,158 871,186 359,891 853,746 817,697 201,970 264,184 230,859 171,063 226,892,733 £46,018,399 Exports. Dollars Gold. 164,972,021 89,842,833 40,939,402 40,355,986 21,905,246 18,831,398 7,141,642 137,619 7,957,352 931,530 5,021,285 4,971,936 2,796,881 1,550,316 1,730,742 1,639,663 1,001,006 227,101 519,301 361,662 272,355 158,520 9,072 1,969,149 143,136,625 568,280,643 £110,769,969 Total. Dollars Gold. 232,763,888 146,001,737 62,107,781 63,666,636 32,286,747 20,812,654 18,480,699 15,266,014 9,837,010 9,292,015 7,083,051 5,653,310 4,971,936 4,168,070 3,810,203 2,506,971 2,164,607 1,637,062 1,239,667 1,132,168 1,098,286 879,192 853,746 817,697 663,632 272,355 264,184 230,859 168,620 9,072 2,140,212 143,136,626 785,173,376 £155,788,368 180 SOUTH AMERICA Position held by the Abqentine Republic in the Export Tbadk of THE United Kjngdom in 1914. Exports from Great Britain to— Value. Country. 1 New Zealand . . Population. Per .apita 1 United States . . £ 64,039,575 1,097,278 £ 9-50 2 East Indies 63,835,114 2 Australasia 4,872,059 7-61 3 Australasia 37,088,720 3 Holland. . 6,213,000 3-32 4 Germany 36,431,273 4 South Africa . . 6,960,074 3-05 5 France . . 35,052,260 5 Canada . . 8,075,000 2-54 6 Russia . . 21,792,186 6 Norway 2,462,350 2-90 7 South Africa . . 21,220,246 7 Denmark 2,859,000 2-50 8 Holland. . 20,671,723 8 Argentina 7,988,383 1-89 9 Canada . . 20,499,607 9 Belgium 7,657,924 1-73 10 Argentina 15,080,668 10 Sweden 5,609,000 1-61 11 Italy .. 13,912,586 11 West Indies . . 1,751,718 1-55 12 Belgium 13,252,681 12 Uruguay 1,315,714 1-31 13 China . . 13,137,032 13 Chile 3,551,703 1-13 14 New Zealand . . 10,419,241 14 Switzerland 3,825,000 0-93 15 Sweden 9,029,408 15 France . . 39,602,258 0'88 16 Japan . . 8,560,775 16 Greece . . 3,912,000 0-77 17 Egypt . . 7,933,746 17 Egypt . . 11,200,000 0-70 18 West Africa 7,401,707 18 United States . . 98,781,324 0-65 19 Norway 7,177,238 1 a East Africa 4,038,000 0-62 20 Denmark 7,160,182 20 Portugal 5,960,000 0-55 21 Spain .. 7,142,061 21 Germany 67,095,000 0-54 22 Brazil . . 6,601,211 22 Italy . . 35,239,000 0-40 23 Turkey . . 5,996,408 23 Spain . . 19,944,000 0-36 24 Chile 4,010,030 24 West Africa 20,551,000 0-36 25 Switzerland 3,571,129 25 Turkey . . 20,600,000 0-29 26 Austria-Hungary 3,429,935 26 Brazil . . 24,308,000 0'27 27 Portugal 3,299,301 27 East Indies 315,086,372 0'20 28 Greece . . 3,037,708 28 Japan . . 52,985,000 0-16 29 West Indies 2,722,901 29 Russia . . 174,099,600 0-12 30 East Africa 2,502,870 30 Austria-Hungary 51,506,000 0-07 31 Uruguay 1,725,638 31 Mexico . . 15,446,000 0-05 32 Mexico . . 748,954 32 China .. 336,042,000 0-04 Total, including othei countries £526,195,523 INTERNATIONAL TRADE 181 Argentine Impobts, under Principal Heads. Value in Dollars Gold, 1915. 1914. Live-stock 1,317,456 1,244,271 Foodstufis — Animal foods 3,866,107 Vegetable foods and fruits 18,689,829 22,555,936 23,324,382 Tobacco and manufactures of , , 6,145,122 5,908,466 Drinks — Wines 4,486,737 Spirits and liquors 1,594,280 Sundries . . 480,561 6,561,578 8 131,073 Textiles, raw and manufac- tured — Silk 3,909,364 Wool 6,273,604 Cotton 23,825,583 Other fibres 18,926,016 51,934,567 62,517,281 Oils, vegetable, mineral, etc. Chemical, medicinal, and phar- 36,140,287 20,053,399 maceutical substances and products Faints and dyes Timber — In bulk Worked Paper and manufactures of — Paper and pasteboard . . Sundry paper manufactures Leather and manufactures of Iron and manufactures of — Raw material Iron and steel manufactures Other metals — Unwrought Manufactured Agricultural machinery, sack- ing, seeds, etc. 2,125,172 2,086,388 3,938,316 1,884,961 10,635,379 8,010.569 3,490,780 2,379,370 10,590,210 1,443,417 4,211,660 5,823,277 2,102,535 18,646,948 6,870,160 6,846,717 11,109,655 1,670,577 5,861,143 7,420,912 2,652,169 36,168,112 7,648,176 3,239,166 182 SOUTH AMERICA Ahobnttne Imports, under PBrNoiPAL Heads — continued. Value in Dollars Gold. Locomotion and conveyances, railway material, and vehicles of aU classes Stone, clay, glass — Raw material Manufactured Building material Electrical supplies Sundry articles and factures Total . . 18,660,734 1,229,723 1915. 6,798,217 19,890,467 11,934,609 3,756,637 4,623,963 226,892,733 £45,018,399 1914. 22,958,653 28,847,464 17,935,161 7,023,647 9,114,323 271,817,900 63,932,123 INTERNATIONAL TRADE 183 PRINCIPAL ARTICLES OF IMPORTATION IN 1915, EXCEEDING $500,000 GOLD, AND PRINCIPAL COUNTRIES OE ORIGIN. Dollars Gold. Per cent 1. Naphtha, impure Mexico United States Other covmtries 2. Coal United Kingdom United States Other countries 3. Sack cloth British possessions United Kingdom Other countries 4. Coloured wove prints United Eangdom Italy .. Germany Belgium Spain . . United States France Other countries 5. Yerba-mat6 Brazil Paraguay 6. Olive oil Italy .. Spain . . United States Other countries 7. Bleached cotton goods United Kingdom Italy Other countries 25,602,407 17,807,209 12,447,603 6,932,932 6,234,329 3,888,466 3,439,899 58-8 41-0 0-2 72-0 25-6 2-4 65-5 42-9 1-6 44-9 44-7 3-7 1-9 14 13 1-3 08 89-6 10-6 64-6 38-2 4-8 2-4 87-2 9-3 3-5 184 SOUTH AMERICA Pbinoipal Akticles of Impoetation in 1915 — continued. Dollars Gold. Per cent. 8 Wrought iron 3,371,810 United Kingdom 87-4 United States 10-0 Other countries 2-6 100 9. WooUen cloths . . 3,105,206 United Kingdom 69-8 France 9-1 Italy 8-5 Spain 4-2 Germany 3-7 United States 3-6 Other countries 1-1 — 100 10. Geilvanized iron 2,846,990 United Kingdom 71-7 United States 26-5 Other countries ■• 1-8 100 11. Pitch pine 2,831,139 United States 98-6 Canada 10 Other countries 0-5 100 12. Hydraulic clay 2,617,351 United Kingdom 350 Sweden 19-6 Denmark 190 France 9-9 United States 9-1 Belgium 2-7 Other countries 4-7 100 13. Sheep-dip 2,384,553 United Kingdom 97-0 Other countries 3-0 100 14. Tobacco from all countries, except Paraguay and Havana . . 2,275,656 Brazil 76-9 United States , , 11-2 Other countries 119 100 INTERNATIONAL TRADE 185 Pmnoipal Aetiolbs op Importation in 1915 — continued. Dollars Gold. Percent. 15. Cotton prints 2,263,171 United Kingdom 76-7 Italy 14-1 Sptiiu . . 4-3 Germany 2-1 Other countries 2-8 100 16. Silk cloths 2,070,135 France 48-5 United Kingdom ' 16-8 Italy • • 14-6 Switzerland . . 10-6 Japan 7-2 Other oomitries 2-3 100 17. Unbleached cotton yam 2,047,921 United States 59-3 Italy 25-9 United Kingdom 11-3 France 1-2 Other countries 23 100 18. Cleaned rice 2,033,441 Spain . . 69-4 United States 111 British possessions . . 6-0 France 4-8 Italy 3-8 United Kingdom 3-2 Other countries 1-7 — 100 19. Cofiee 1,966,959 Brazil 97-6 Other countries 2-4 100 20. Sisal twine . . 1,964,195 United States 99-0 Other countries 1-0 100 21. Lubricating oils 1,890,609 United States 80-6 United Kingdom 18-1 Other coimtries 1-3 100 186 SOUTH AMERICA PBrNciPAi Abticibs of Impobtation IK 1915 — continued. DoUars Gold. Per cent. 22. Vermouth (in bottles) . . 1,843,696 Italy 77-7 France , , 21-2 Other countries M 100 23. Railway material 1,690,786 United Kingdom 90-0 United States 8-0 Other countries 2-0 — 100 24. Wire and cables for electric purposes 1,689,251 United Kingdom 50-9 Italy 31-6 14-3 Other countries 3-2 100 26. Spare parts for carriages and auto- mobiles 1,689,292 Italy 45-9 United Eangdom 26-1 France 13-9 United States 13-8 Other countries 0-3 100 26. Potatoes (seeds) . . 1,668,414 France 39-4 Spain . . 32-8 United States 25-6 Other countries 2-3 100 27. News-print paper 1,836,196 United Statea 67-0 Sweden .. 168 Norway . , 13-1 Other countries 31 100 28. Cotton oil 1,523,609 United States __ 99-2 Other ooimtries 0-8 100 INTERNATIONAL TRADE 187 Prinoipai. Abticles or Importation in 1916 — continued. Dollars Gold. Per cent. 20. Ordinary wine (in casks) 1,608,118 Spain . . 46-9 Italy 39-6 France 13-2 Other countries 0-3 100 30. Patent medicines 1,467,876 France 66-8 United States 16-6 Italy 14-6 Spain . . 5-4 United Kingdom 5-3 Other countries 2-3 100 31. Machinery (various kinds) 1,445,126 United States 31-9 United Kingdom 31-8 Italy 15-7 Germany 10-6 Other countries 10-0 100 32. Petroleum 1,411,389 United States 99-9 Other countries 0-1 100 33. Tin plate 1,406,835 United States 70-6 United Kingdom 28-8 Other countries 1-7 100 34. L'xieese .. .. .. .. .. 1,325,162 Italy 82-4 France 7-6 Switzerland . . 4-5 Holland 4-3 Other countries 1-2 100 188 SOUTH AMERICA PKiNotPAii Abtiolbs OF IMPORTATION IN 1915 — continued. Dollars Gold. Per cent. 35. Cotton socks . . 1,313,005 United States 38-4 Germany 30-7 Spain . . 12-1 France 7-5 Italy . . 2-8 Holland 2-7 Switzerland . . 2-4 United Kingdom 2-1 Other covmtries 1-3 100 36. Parcel post 1,264,996 France 45-5 Italy 25-0 United Kingdom 16-0 Switzerland . . 3-7 Holland 2-2 Other countries 7-6 100 37. Spare parts for machinery 1,222,300 United States 35-3 United Kingdom 34-6 Germany 7-0 Italy 6-8 Other comitries 16-4 100 38. Cattle 1,101,985 Paraguay 40-3 Uruguay 33-0 Bolivia 14-6 United Kingdom 10-9 Other countries 1-2 100 39. Woollen and mixed goods 1,083,181 United Kingdom 731 Italy 12-0 Germany 7-8 Other countries 7-1 40. Galvanized wire 973,029 United Kingdom 83-5 Germany 10-3 Other countries 6-2 100 INTERNATIONAL TRADE 189 Pbinoipai. Artioles or Impobtation in 1916 — continued. 4 1 . Spruce Canada United States Swed;n United Kingdom Other countries 42. Iron pipes (other than galvanized) United Kingdom Germany United States Other countries 43. Unbleached cotton goods United Kingdom Italy United States Other countries 44. Paraffin .. United States Holland Other countries 45. Tobacco (Havana) Cuba .. United States Other countries 46. Bags of sack cloth United Kingdom British possessions Other countries 47. Tea [,/, British possessions United Kingdom China . . Other countries Dollars Gold. 966,687 918,660 886,284 867,734 867,246 830,114 819,606 Per cent. 62-0 31-3 3 4 2-2 11 83-9 7-9 7-6 0-6 81-8 11-4 4-3 2-3 96-8 3-6 0'6 91-6 4-6 3-8 59-7 38-3 2-0 43-7 29-3 24-4 2-6 190 SOUTH AMERICA PbinoipaIi Abtiolbs or Importation in 1915 — continued. DoUars Gold. Per cent. 48. Iron and steel manufactures . . 819,307 United Kingdom 74-0 United States 14-5 Germany 4-5 Other countriea 7-0 100 49. Wax candles 813,594 United Kingdom 54-7 Italy 19-7 Holland 18-1 France 1-3 Other countries 6-2 100 50. Perfumery 793,388 France 71-1 United Kingdom 17-9 United States 3-9 Italy 2-9 Germany 2-3 Other countries 1-9 100 51. Tartaric acid 776,267 Italy 61-5 Germany 19-8 France 9-4 United Kingdom ' \ 7-1 Other coimtries • • 2-2 100 52. Iron main pipes 762,972 United Kingdom ■■ 100 53. Locomotives 761,530 United Kingdom 99-0 Germany 10 100 64. Sheet glass 716,881 United Kingdom 29-8 United States 27-4 Holland 15-3 Spain . . 12-2 Belgium 8-1 Other countries 7-2 100 INTERNATIONAL TRADE 191 Prinoipal Abtiolbs or Importation in 1915 — continued. DoUars Gold. Per cent. 66. Coloured cotton yarn . . 709,366 Italy 48-2 United States 300 United Kingdom 8-8 Holland 50 Spain . . 2-8 Other oovintries •• 5-2 100 56. Sand (for building purposes) . . Uruguay 690,693 100 57. Sacks for packing meat 676,728 United Kingdom 66-5 United States 32-9 Other countries 0-6 100 68. Tin 676,364 United Kingdom 76-3 United States 23-0 Other countries 0-7 inn 59, White pine 669,962 Brazil 49-0 United Stat68 35-6 Canada 140 Other countries 1-4 100 60. Sardines . . 648,246 Spain . . 55-7 Norway 28-4 France 51 Italy 4-5 United States 2-6 Other countries 3-7 100 61. Twine for sewing bags 648,202 United Kingdom 46-8 Italy . , 360 Spain . . 16-2 Other countries 10 100 192 SOUTH AMERICA PiUNciPAii ABTiOLas OF Impobtation in 1915 — -continued. Cotton and silk goods . . Dollars Gold. Percent 62. 644,516 Italy 32-3 France 31-9 United Kingdom 22-7 Germany 3-9 Switzerland . . 3-6 Other countries 5-6 100 63. Ploughs . . 644,320 United States 970 Other countries •• 3-0 100 64. Chemical products 643,278 United States 48-3 France 21-6 United Kingdom 14-8 Italy 7-3 Germany 4-6 Other countries 3-4 100 65. Boots and shoes 636,848 United States 61-4 United Kingdom 25-6 Switzerland . . 6-4 Other countries 6-6 100 66. Furniture 635,711 United States 41-8 United Kingdom 24-5 France 14-3 Austria-Hungary 6-2 Italy 6-8 Germany 4-U Other countries 2-8 100 67. Automobiles 632,080 United States 73-1 France 9-3 Italy 6-5 United Eangdom 5-0 Other countries 6-1 100 INTERNATIONAL TRADE 193 PBUfOiPAi. Articles op Importation in 1916 — continued. 68. Rosin United States Italy Other countries 69. Iron and steel wire (other than gal- vanized) United States Other countries 70. Printed books . . Spain . . Italy . . United Kingdom France United States Other countries 71. Iron plates United States United Kingdom Other countries 72. Tjrpolitographioal pamphlets United Kingdom United States France Other countries 73. Staves and empty casks United States Brazil United Kingdom Other countries 74. Handkerchiefs . . United Kingdom Italy .. United States Other countries Dollars Gold. 618,986 617,615 612,731 612,691 601,158 699,108 696,260 Per cent. 94-3 1-0 4-7 100 93-7 6-3 100 500 17-4 12-1 9-6 6-5 4-5 100 78-5 13-7 7-8 71-9 8-7 8-6 10-9 100 100 91-7 3-9 2-6 1-8 100 86-0 8-3 30 2-7 100 18 194 SOUTH AMERICA Pbincipal Articles op Importation in 1915 — continued. Galvanized iron or steel barbed wire . . Dollars Gold. Per cent. 75. 581,294 i United States 94' 1 Other countries 5-9 100 76. Pig and sheet lead 574,767 Spain . . i 78-0 United Kingdom 12-0 United States 9-2 Other countries 0-8 100 77. Bitters, all sorts (other than Angostura) 572,772 France .. 51-1 Italy _ 39-2 Germany 8-4 Other ootintries 1-3 100 78. Tin sheet cut for packing 563,040 United Kingdom 80-0 United States 20-0 100 79. Malt 556,684 Chile 36-2 United States 32-8 United Kingdom 29-4 Other countries 1-6 100 80. Paper for printed matter 548,818 Germany 35-7 United States 26-2 Holland 10-2 United Kingdom 9-2 Other countries i 18-7 100 81 Painters' colours 543,288 United Kingdom 1 61-7 United States 26-1 Holland 7-0 Other countries 5-2 100 82 Steel rails 535,640 United States 61-7 Germany 21-4 United Kingdom " 16-9 — 100 INTERNATIONAL TRADE 195 Pmncipal Abtiolbs of Importation in 1915 — continued. DoUars Gold. Per cent. 83. Sewing thread . . 534,329 United Kingdom 97-0 Other countries 30 — 100 84. Earthenware conduits . . 532,593 United Kingdom 100 85. Cod-fish 530,399 Norway 90-8 United Kingdom 7-4 Other countries ■■ 1-8 100 86. Cotton lace 518,677 United Kingdom 36-9 Switzerland . . 19-1 Italy 14-0 France 12-5 Holland 6-5 Germany 60 Other countries 50 100 Total, dollars gold 168,189,141 Other articles imder $500,000 in value . . 68,703,592 Grand total, dollars gold 226,892,733 ;£45,018,399 The following figures from Argentine International Trade, 1914-15, edited by Dr. Ricardo Pillado, show some interesting aspects of the situation created by the war : — " The trade of Argentina with foreign countries has suffered in 1914 a very severe check from the stoppage in navigation caused by the European War, notwith- standing the powerful resources of the country and the success of the year's crop, largely increased in bulk and value, of both animal and agricultural products, 196 SOUTH AMERICA " Shortage of freight in the last six months has been also the cause of a considerable diminution of our exportation, which in the year 1913 amounted to $483,504,547 gold, falling to $349,254,141 in 1914, or, say, a shrinkage of $134,250,406 gold. " At the end of 1915 the recovery has been very effec- tive, the total exports arriving to $558,280,643, the largest figure in our commercial history, showing an increase equal to $74,776,096 over 1913 and $209,026,502 over 1914. " For the same reason the importation, that had reached $421,352,542 in 1913, fell to $271,817,900 in 1914, a diminution compared with the former year of $149,534,642 gold, and in the year 1915 the fall has continued, showing a total of $226,892,733, or, say, a decrease of $44,925,167 compared with 1914. " The result of these figures is a total trade of — 1913 1914 1916 Dollars Gold. 904,857,089 621,072,041 785,173,376 " But as the balance of the trade in the last years has been very favourable to our exports, the surplus shows the following results : DoUars Gold. Surplus of exports over imports in 1913 . . 62,152,005 1914 .. 77,436,241 1915 .. 331,387,910 " A full view of the subject may be had from the next figures : Imports. Exports. Total. Dollars Gold. DoUars Gold. Dollars Gold. 1913 1st half year . . 209,175,389 293,077,766 502,253,146 2nd 212,177,153 190,426,791 402,603,944 1914 1st 171,016,664 213,733,964 384,750,618 2nd 100,801,236 135,520,187 236,321,423 1915 1st 100,127,910 310,910,368 411,038,278 2nd 126,764,823 247,370,275 374,135,098 INTERNATIONAL TRADE 197 " Herewith the development of Argentina's foreign commerce during the half century 1866-1915. Total Trade. Increase over the Former Decade. DoUars Gold. Dollars Gold. Per cent. 1866-1875 . . 875,559,141 — — 1876-1885 . . 1,164,405,854 288,846,713 32-9 1886-1895 . . 2,068,549,494 904,143,640 77-6 1896-1905 . . 3,135,390,608 1,066,841,114 51-5 1906-1915.. 7,075,626,271 3,940,235,663 125-6 " The remarkable progress of our meat trade in the last thirty years is expressed thus : 1886. 1915. DoUars Gold. Dollars Gold. Live-stock : cattle . 2,345,313 3,100,830 „ sheep 58,552 72,504 Chilled and frozen beef 1,680 76,175,100 Frozen mutton 75,323 6,307,190 Sundry meats frozen — 725,278 „ ,, preserved — 3,194,407 Extract of meat — 743,298 Powdered meat — 141,439 Preserved tongues — 170,947 Condensed soup — 565,471 Jerked beef . 4,204,077 ^ 50,941 6,684,945 91,247,405 £1,326,378 £18,104,644 " The trade in grain and cereals, taking only the staple products, has made a still more rapid stride in the same period, i.e. : 1885. 1915. Dollars Gold. DoUars Gold. Oats ^ 19,065,704 Maize 3,957,191 93,475,450 Wheat 3,139,736 132,632,073 Wheat flour 521,295 10,071,960 Linseed 3,471,305 46,100,866 11,089,527 301,346,053 £2,200,303 £59,790,883 198 SOUTH AMERICA Principal Ports of the Argentine Republic — Their Respective Importance in the Foreign Trade, 1916. Ports. Exports. Imports. Totals. Dollars Gold. Dollars Gold. DoUars Gold. 1 Buenos Aires . . 232,223,793 180,801,738 413,025,531 2 Rosario i 102,453,837 16,051,141 118,504,978 3 Bahia Blanca . . 72,960,723 .0,311,870 78,272,593 4 La Plata 47,748,904 7,607,643 55,366,447 5 Santa F6 20,189,919 994,368 21,184,277 6 San Nicolas 13,967,487 1,587 13,969,074 7 Las Palmas, B.A. 10,298,226 — 10,298,226 8 Campana 7,872,477 9,119,165 16,991,642 9 Zarate . . 6,950,750 948,240 7,898,990 10 Piracuacito 1 4,741,007 — 4,741,007 11 Concordia ' 4,553,060 115,039 4,668,099 12 V. Constitucion 4,031,575 1,679,305 5.710,880 13 Colon 3,815,171 922,062 4,7:i7,233 14 San Lorenzo 3,609,956 — 3,609,956 15 Parani . . 2,773,420 104,096 2,877,510 16 Barranqueras . . 1,910,484 — 1,910,484 17 Monte Caseros . . 1,449,805 54,230 1,504,035 18 San Pedro 1,437,022 — 1,437.022 19 Ocampo 1,369,442 — 1,369,442 20 San Jorge 1,356,338 — 1,356,338 21 C. del Uruguay 1,294,612 307,828 ], 602,440 22 La Paz 1,272,576 79,432 1,352,008 23 Victoria. . 996,712 — 996,712 24 Gualeguaychu . . 965,370 65,129 1,030,499 25 Las Palmas, Chaco 960,939 — 960,939 26 Gualeguay 753,379 6,644 760,023 27 Formosa 632,739 31,148 663,887 28 Rio Gallegos . . 430,513 — 430,513 29 P. Madryn 390,936 — 390,935 30 Santa Elena 381.216 — 381.210 31 Corrientes — 381,030 381,030 32 Salta 368,019 — 368,019 33 Baradero 351.742 — 351,742 34 Ibicuy . . 237,488 302,694 540,182 35 Patagones 220,38,0 25 226,410 36 San Antonio, Oeste . . 218,444 7,460 225,904 37 Embaroacion . . — 195,959 195,959 38 La Quiaca — 126,382 126,382 39 Posadas . . — 1,403,344 1,403,344 Other ports 3,080,178 275,284 3,361,462 Totals 558,280,643 226,892,733 785,173,376 £110,769,969 £45,018,399 £156,788,368 SPECIAL AND PRIVATE I Adelphi Terrace London, W.C. 2 NOTE RESPECTING ADVANCE COPY Messrs. T. Fisher Unwin, Ltd., have pleasure in sending the Editor the accompanying book for review. The published price is JjS..S...JS..!^...L - The date of publication is . iStJ^-/^' .1. O ■ 'TILL WHEN IT IS REQUESTED THAT ANV CRITICISM MAY BE WITHHELD. Messrs. Unwin will feel obliged if the Editor will cause a copy of his review to be forwarded to them. INTERNATIONAL TRADE 199 lCO»OOGOOOCOiOOTHQOiCOSOSC^OiO(N I CO CO Oi C^ I© UD cd'w iXiO':0<:D^CCiO<:DaiO^ i«»OOl>>-HOOTHeOC^I>COi— *Oi-^'-(CO00CN ■^C0OOcD^»000I>i-H0it>(MC0l>(MO050i ■— I CO CO coI>''coco>#c^'^^coa^oD■^<^^'^'"lO I ^bJ ^^1 ^.1 ^^1 1^^ f^^ii ^VN ^U \<^ 11^^ ffl^ fffi>« '-H'-HCq ■ CM l> O ) r-H lO O • lO o o I M' o> M* I> CD lO (M »0 (N t"^0>COI>»— i(McD00»CW3Q0>-HO00c0iM(~-CC'I>C0Tt<0lO lCOCOr-lr-IOO-#OTt'-^p-H03'*OC<10CO'— lOr^o <_^OcO^THcoOeocOOiOOt'050coaoo^— 'O I CO CM CO o 00 Oi Tt< '-H'co"(^^05co'''^^o^o'l>'»Ol-^c4"oi'co^^l>' (coor-cDOSTjiosocDocoicoi.— ir^Oi'^s-^ooiO'-HOOi '0»Oi-h1OMOc0tJ<00M »JD101000COC005I>0'-''— > >o (N OCD -t^CD CO --H COCOCrTc^^C^'t^'"'— T-i^OCO^'^rOiOco' r-i(N(M"T*1>Tt<-^lOCDI>00Q0OO'— I^CO-^i— f>ooocooo-^(Ncoo q (M — ^ -^ o cocooco t-i (NcDi>-OMicocoosoO'— <-^i>aiWO"-rcoTtiO>ocD CO O Ol (N CO tJh' C^* o' ci Cd" I> (N" >-H CO TjT O ci" CO T^ -Hi— (--(NlOClCDr*— "iOCO"^C-C<)(NOOOOO 00OI>01OC0C^^HC0l0C0i— ICDCOCOOCOCDIOCOC^O lO"— i»0'MCDO-^i-HrttOCOI>0 5"l> oo" t^ ^" o" oT CO CD rX) »o »c w co" CO 't* (-: (-r ^" co" ^'■ "m" r^ r^ r- Oi Oi CI 05 CO lO O^ »c Oi O GO o CO -^ !>■ o^ i> t> CD^ CO CO CO >— -H-^COOOlCOOCOOOajiOOOOCOrtCDOOOlO'^COCOt^CO>~-((MC:^-H-*»OGOr^O OOI>-(NTtlCOI>COCDM<-HlOC0 05(NCOOTtcooicoTj<i— "lOiOOiO C0000i01CDMI>00I>C0'OO''C — l>OOi-Hl>I>00OV0 iOCOO(N(N'— i--*Or-OtNQ0C:'— H(M-^00C^iO-H I— l^cO!^^(^^QOcococoI:^ooc^r^t-~■-t'c:>■^coo -~^co^^o^OlO^:ilCl:^^D^-cca)Ol— iC4 CD ■<+< (N '^ (N ^^ CJ CO CO ^OC:NcOcDCO(McOcoi>ir-TjioO'+OcD^i-'-^0'-iTt'l>co 3-H-T^COU5i— iOCO'-HCOOr^OCNCiCDCN'+ r-»00»00»00»COi— t'MCO'^iOCDC-OOOiO'— iWCOt^O Oc0I>I:^Q000a'05OOOOOOOOOO'-i«-i— <^^^ cococooooooooooooososoicsasososoioaioiOiOiasoi o 31 CI -a i •'^ o . C^i p. g & S o lO rr o yj tn <^ c O ^ o -•-; t. T3 f^ S^ § Tl Sf 5 O OJ ■i^ 200 SOUTH AMERICA Argentine Meat Trade— Frozen and CtaiUed Beef. Frozen Mutton. Sundry Frozen Meats. Dollars Gold. Preserved Meats. Dollars Gold. Extract of Beef. Powder of Meat. Dollars Gold. l,68o Dollars Gold. 75,323 Dollars Gold. Dollars Gold. la.Soo 360,508 1,876 - 169,991 — - 963,112 8,837 - 75,888 15,250 3,326 1,459,839 38,343 13,809 128,080 117,457 58,742 1,322,604 17,930 101,714 105,668 19,830 53.029 1,633,105 — 42,661 375,132 19,175 5,902 1,852,247 31,211 258,926 389,454 62,116 22,695 2,034,898 49,217 633,601 520,892 226,888 222,379 2,003,254 34.324 196,080 198,070 75,497 12,400 1,864,110 59.645 65,250 134,393 21,563 63,482 1,675,273 16,120 92,325 208,399 21,217 119,863 1,804,205 J4,204 204,315 683,487 13,551 169,644 2,035,778 27,903 115,127 257,772 5,582 234,681 2,393.358 38.839 162,294 605,522 58,034 363,141 2,265,069 36,863 181,600 765,504 - 2,458,957 4,512,973 70.797 140,480 230,416 - 4,490,447 5,041,023 91,548 94,717 433.590 — 7,001,833 6,405,804 163,820 164,404 592,696 - 8,151,956 6,251,959 203,973 374,154 693.174 - 9,774,354 7,089,287 272,308 242,861 414,188 4,885 15,285.693 6,268,059 356,299 248,826 870,950 599,460 15,380,897 5,391.055 400,275 125,908 842,142 959,203 13,822,162 5,582,781 450,198 159,477 1. 791.574 1,536,828 18,081,443 5,307,688 740,421 178,057 1,379.952 1,239,918 21,065,747 5,319,612 649,206 639,013 2,702,988 1,057,675 25,370,815 6,008,133 721,616 1,215,370 3,046,680 1,367,964 31,283,395 6,873,285 946,859 j 1,541,333 1,031,154 904,730 34,285,076 5,613,971 1.017,992 1,769,882 1,223,860 1,349,557 36,622,889 3,674,206 910,311 1,257,391 1,598.136 1,097,566 35,896,726 4,695,001 1,032,877 1,308,737 862,968 580,305 76,175,100 ' 357,491,155 6,307,190 725,278 9,139,192 3,194,407 14,722 719 743.298 23,076,018 141,439 115,094,710 11,495,589 £70,930,785 £22,836,252 £1.813,332 £2,921,174 £4,57-\575 j £2,280,871 Th« iocrease in value depends piindpally ou high prices during the war. INTERNATIONAL TRADE 201 Exports from 1885 to 191 5. Preserved Live Stock. Condensed Soup. Jerked Beef. Totals. Year. Tongues. Cattle. Sheep. Dollars Gold. Dollars Gold. 2.345,313 Dollars Gold. 58,552 Dollars Gold. Dollars Gold. 4,204,077 Dollars Gold. 6,684,945 1885 27,267 2,203,150 41,557 — 3,738,820 6,555,969 1886 20990 1,415,625 42,884 8,257 2,398,424 4,949,267 1887 56,668 1,798,251 34,685 — 3,456,787 7,107,245 18S8 58,706 3,194,113 66,526 6,889 6,139,875 11,092,597 1889 185,412 3,579,456 159,428 10,547 3,913,304 9,971,249 1890 195,753 3,997,270 387,545 7,728 3.566,854 10,765,006 1891 198,813 2,624,675 170,422 6,455 4,100,488 10,589,044 1892 I7r,584 4,433,944 362,904 - 4,115,134 11,813,070 1893 266,144 4,540,160 448,678 — 4,564,447 11,976,789 1894 158,911 7,003,230 1,292,527 i2,o6g 4.225,419 14,768,972 1895 127,980 6,543,550 1,536,056 61,964 3,217,541 14,336,716 1896 112,270 5,018,222 1,512,684 22,941 2,466,313 11,744,236 1897 112,044 7,690,450 1,733,963 32,447 2,116,468 15,178,100 1898 116,439 6,824,010 1,631,041 29,342 2,038,413 14,251,422 1S99 204,196 3,678,150 594,675 24,005 1,979,557 13,894,206 1900 205,525 1,980,372 78,248 16,217 2,879,455 15,311,242 1901 167,854 2,848,445 368,656 11,769 2,647,450 20,372,731 1902 142,170 4,437,420 503,241 100,599 1,542,016 22,400,664 1903 189,400 2,852,820 85,219 114,044 1,391,931 22,431,297 1904 155,615 5,160,483 364,209 122,066 3,738,444 33,170,104 1905 91,200 1,676,145 315,359 70,614 596,643 25,849,441 1906 227,119 2,062,390 331,701 107,789 1,178,056 27,250,075 1907 262,058 1,876,820 311,376 115,822 772,819 31,266,374 1908 360,444 4,087,820 265,908 188,735 1,325,053 37,662,201 1909 284,352 4,056,450 231,540 204,293 1,033,020 43,440,235 1910 214,150 8,202,750 332,070 175,744 1,661,615 53,167,086 1911 189,523 9,140,089 314,694 197,433 1,400,748 56,502,816 igi2 131,952 6,848,830 311,991 375,392 658,097 53,486,761 1913 150,985 3,482,990 156,255 367,158 568,444 50,202,346 1914 170,947 3,100,830 72,504 565,471 50,941 91,247,405 1915 4,956,471 128,704,214 14,117,098 2,955,790 77,686,655 759.439,611 Totals. ' &83,427 £25,536,550 £2,801,012 £586466 £15,414,019 £150,682,463 CHAPTER XVI BRITISH INTERESTS IN THE VARIOUS REPUBLICS British interests in Brazil — Principal British exports to the Re- public — Favourable opportunities offered by the situation — A Consular opinion — Some hints as regards modern BraziUan commerce — Various types of competition — Imports of iron and steel — Prospects of the machinery industry — Value of machinery imports — Manufactured iron and steel goods — A quotation from the Times Trade Supplement — Brazilian trade statistics — Principal countries concerned with exports and imports — Tables showing development of BraziUan trade — Some provincial statistics — Sao Paulo — The port of Santos — The ports of Sao Francisco, Santa Catharina. and Pernambuco — Table showing imports into Pernambuco — Various countries involved — Shipping of Pernam- buco — The ports of Alagoas, Maceio, Ceari, and Cabedello — Principal imports of Pari. The direct British interests in Brazil are made np very largely of railway interests, city improvements companies, and municipal and port works. Although no such amount of capital has been invested in land as has been the case in Argentina, there are important holdings of rubber lands and coffee plantations. Great Britain still retains the lead as an exporter of manufactured goods to Brazil, Germany coming next, and the United States of America third. The principal British exports are cotton, machinery, iron and steel manufactures, and coal. In exporting goods to Brazil, the fact must be taken into consideration that a very heavy import duty is levied, no articles of any real importance escaping this. As has been already remarked elsewhere in this book, the commercial position of the British should be peculiarly favourable in Brazil ; for, apart from the opportunities BRITISH INTERESTS 203 offered by the enormous intrinsic wealth of the country, a very close friendship has been preserved between the British and the Brazilians from the first beginnings of the existence of the Republic as an independent State. In view of this mutual and tried friendship of old standing, the sympathies of the Brazilians are, it may be said without exaggeration, strongly developed towards the British, thus promising an even closer co-operation after the war than was the case before it. It is my object in this volume to collect as many authoritative opinions as possible — more especially where they happen to agree with my own, although this is by no means imperative ! — in order that the reader may be satisfied that in matters such as these no undue originality or eccentricity is involved, for these pic- turesque attributes are frequently fatal to commercial soundness. With this object in view I will quote a few paragraphs from the report on the trade of Brazil for the years 1912-13 by Mr. H. S. Birch, third secretary to His Majesty's Legation at Rio de Janeiro : " Ten years ago it was possible for most foreign engineering firms and manufacturers of apparatus of an engineering character to do business in Brazil by remitting catalogues through the post or by appointing a local firm of merchants or traders as agents. A travelling representative at that time, armed with a catalogue, not necessarily in the Portuguese language, could take any amount of orders. In fact, he had the country at his call, and the payment for the goods in his pocket when the orders were given. Delivery was as suited his convenience, and a matter of six months was not considered in any way of material importance. " To-day that happy condition of affairs for the British manufacturer has been entirely changed. With the exception of a few special lines, such as special engi- neering tools, drills, armouring for concrete, apparatus for specific uses and specialities generally, it is not possible to take orders for deferred deHveries, as stocks 204 SOUTH AMERICA of all general appliances are now held in Rio de Janeiro in large quantities. In the case of electrical apparatus, for example, nearly every conceivable article is on sale by several local firms. It is possible to select and buy on the spot complete sets of steam-driven electric generators, switchboards, instruments, dynamos, electric motors, and the whole series of electrical apparatus. " The minor classes of engineering articles, such as pumps, ventilators, tools (including lathes and other machines), are here ready for immediate delivery. The business is, of course, conducted in the Portuguese language, and all catalogues and descriptive matter are in Portuguese. " It is, moreover, worthy of note that such enterprise is largely in the hands of Germans, Italians, and North Americans. " Such competition must, of course, be classed as both internal and external, but there is also a growth of purely internal competition by local manufactures, though not to a great extent, in engineering appUances. The manufactures in the country are of such articles as enamelled iron baths, sanitary fittings, steel-plate work, tanks, girder work, and foundries for both iron and yeUow metal. " British firms desirous of opening up business in Brazil should recognize that, with the present facilities of rapid ocean transit, dehveries are asked for in the shortest possible time, and that whenever it is possible the order should be transmitted by cable. Two months now is considered ample time in most cases. " Finally, it may be said that it is no longer advisable, except in special cases, to ask for cash against documents in London, as was customary some years ago ; for the BraziUan does not take kindly to cash payments, and his facilities for obtaining credit are far wider than was formerly the case Indeed, he not infrequently makes a point of keeping his creditors waiting as long as possible for the cash, and allowances should be made for this peculiarity in the transactions." BRITISH INTERESTS 205 The imports of iron and steel into Brazil were showing a marked increase before the outbreak of war. Thus, although in 1910 rather less than £5,000,000 worth of these goods were imported into Brazil, the corresponding figures for 1913 show a total which exceeded £8,000,000. It may be said, roughly, that in 1913 Germany had by far the greatest share of the trade in fence wire as well as in iron superstructure for buildings. Great Britain, on the other hand, excelled as regards the importation of galvanized roofing material. Belgium had the greater share of telegraph and telephone posts, bridge material and fencing, while France headed the list as regards steel rails, plates, and similar objects. Since the outbreak of war this trade has greatly fallen off as regards the European manufacturers. The imports of the United States, on the other hand, have shown a great increase. There is at the present time an important opening in Brazil for British textile machinery. Great Britain easily leads the world in the quaUty of this, and Brazil has always bought the main portion of this from her. But with the notable increase in the Brazilian textile industry, the trade in the machinery should become very much extended. There is a large demand for sugar-crushing machinery in Pernambuco, one of the centres of the sugar industry. The State of Minas Grraes forms the centre of the mining industry, and the demand for mining plant here is very great, and is increasing rapidly. YaTjXTB of Impobts or Pbincipal Kxnds op Machineey. 1912. Milreis (Paper) Machinery, unenumerated 31,121,873 Indiistrial machinery 17,795,468 Electrical machinery 14,867,282 Locomotives 11,585,752 Sewing machines . . 8, 184,51 S Motors, locomobiles 4,513,328 Agricultural machinery . . 2,169,382 206 SOUTH AMERICA Value of the Leading Impobts of Manufactured Iron and Steel Goods. Bails Manufactures of iron, unenumerated Pipes Structural iron Wire Galvanized sheets . . Tin plate in sheets . . Cutlery 1912. Milreis (Paper;. 29,000,773 12,814,620 12,227,624 9,576,949 8,902,462 6,366,107 4,393,230 3,699,544 By the kind permission of the editor of the Times Trade Supplement, I am permitted to quote the following figures from the Brazil section of the Times Trade Supplement for October 1917 : During the sixteen years of the present century the foreign commerce of Brazil has shown considerable development and a notable consistency in the annual balances in favour of this greatest of South American Republics ; only once, in the year 1913, has the value of the imports exceeded that of the exports. The following table gives the annual total value of the trade of the country : Year. Exports. Imports. Balance in Favour of Exports. £ £ £ 1901 . 40,621,993 21,377,270 19,224,723 1902 . 36,437,456 23,279,418 13,158,038 1903 . 36,883,175 24,207,811 12,675,364 1904 . 39,430,136 25,915,433 13,514,713 1905 . 44,643,113 29,830,050 14,813,063 1906 . 53,059,480 33,204,041 19,855,439 1907 . 54,176,898 40,527,603 13,649,295 1908 . 44,155,280 35,491,410 8,663,870 1909 . 63,724,440 37,139,354 26,583,086 1910 . 63,091,547 47,871,974 15,219,573 1911 . 66,838,892 52,821,701 14,017,191 1912 . 74,649,143 63,424,637 11,224,506 1913 . 64,848,701 67,166,360 — 1 1914 . 46,526,685 35,472,635 11,054,050 1915 . 52,970,333 30,088,391 22,881,942 1916 . 56,010,279 40,369,436 14,640,843 > Balance of £2,317,659 in favour of imports. BRITISH INTERESTS 207 It will be observed from the above that high-water mark was reached in the years 1912 and 1913, while a steady improvement has been noted during the period of the war ; the adaptability of the resources of the country has been exemplified in the rapid development of the production and export of foodstuffs during this period. Trade during 1915 and 1916. During the past two years the exports from Brazil have been as follows : 1915. 1916. Animal products . . . . £4,254,609 £6,332,654 Mineral products .. .. 1,173,443 2,151,043 Vegetable products . . . . 47,542,281 46,526,582 le the imports have been classified : 1915. 1916. Live animals £42,844 £105,579 Raw materials and articles for arte and industries . . . . 7,330,440 11,449,286 Manufactured articles . . . . 10,794,238 17,107,041 Foodstuffs 11,316,869 11,207,530 The goods exported were consigned to the following foreign countries : Countries. 1915. 1916. Argentina . £2,675,465 £3,354,095 British possessions 436,881 486,375 Chile 147,390 151,429 Cuba 36,414 62,734 Denmark 1,221,286 414,134 Egypt .. 263,858 91,094 France 6,031,852 8,885,913 French possessions 138,225 118,645 Germany 23 — Great Britain . 6,404,844 6,409,792 for (orders) 109,578 26,870 Greece 203,845 4,700 HoUand .. . 3,369,821 1,684,819 Italy . 1,662,748 3,401,060 Norway . . 1,668,316 294,578 Paraguay 76 2,423 Peru 1,914 1,288 Portugal . . 486,117 319,088 1915. 1916. £319,701 £452,526 4,775,722 1,531,800 ■ — 485 2,900 — . . 22,146,544 26,827,425 914,218 1,471,078 52,596 23,928 . . £52,970,333 £56,010,279 208 SOUTH AMERICA Countries. Spain a'jd colonies Sweden . . Switzerland Turkey United States Uruguay . . Other countries Total During the same period the commercial needs of Brazil were supplied by the following countries, with the value of the goods imported from each : — Countries. Argentina American possessions . Austria . . British possessions Belgium . . Chile China Cuba Denmark Dutch possessions France French possessions Germany Great Britain Greece Holland Italy Japan Mexico Norway . . Paraguay Peru Portugal . . Portuguese possessions . . Russia Spain Sweden . . Switzerland Turkey United States Uruguay . . Other countries . . Total 1915. 1916. . . £4,786,028 £5,675,426 — 9,150 39,678 304 1,528,063 1,671,099 51,177 57,959 19,822 11,871 34,902 63,657 2,579 4,305 131,652 228,666 — 30,954 1,486,525 2,095,378 — 3,568 458,285 17,729 6,596,897 8,228,984 3,221 7,145 206,807 241,662 1,327 013 1,410,597 10,759 23,321 142,500 257,270 500,095 411,104 66,690 41,684 2,931 4,437 1,490,323 1,872,049 — 7,887 12,358 15,811 431,883 469,222 265,436 226,482 318,453 512,430 4,413 3,338 9.651,306 15,840,606 447,344 600,566 70,651 35,600 .. £30,088,391 £40,369,436 BRITISH INTERESTS 209 It is interesting to note, in view of the above figures, that during the three years previous to the outbreak of the war the annual average of the importation from the principal belligerent countries was as follows : Average Annual Importation Conntrics. into Braiil, ci.f., 1911-18. Austria-Hungary £900,000 Belgium . . . 3.000,000 France . 6,600,000 Germany . . . 10,600,000 Great Britain . 16,000,000 Italy . 3,300,000 Portugal . . . 3,000,000 Russia 60,000 United States 111 1 1 r T^ 9,000,000 •1* _ r _ • ■ The gradual development of Brazihan foreign trade since the first pubhcation of ofiicial statistics is demon- strated by the following table of annual average values : Annuai. Average Vaxue. Years. Exports. Imports. TotaL 1834-1840 £ 5,342,000 £ 6,178,000 £ 11,520,000 1841-1860 5,468,000 6,100,000 11,568,000 1851-1860 10,201,000 11,528,000 21,729,000 1861-1870 14,763,000 13,037,000 27,790,000 1871-1880 20,184,000 16,688,000 36,872,000 1881-1890 22,769,000 19,881,000 42,650,000 1891-1900 33,330,000 29,869,000 63,199,000 1901-1910 47,622,000 31,884,000 79,506,000 1911-1916 60,141,000 48,224,000 108,366,000 Commerce during i()iy {January- June). Perhaps the most satisfactory feature of these figures is the consistent progress shown both on the import and export sides. The war had naturally affected Brazilian trade, but the returns for the first half of the 14 210 SOUTH AMERICA current year are not unsatisfactory. They show that the value of the foreign trade was as follows : Imports into Brazil. . Exports from Brazil Total 19,769,000 30,667,000 60,326,000 We may now glance at some of the trade statistics of the most important States, beginning with Sao Paulo. The following table shows the value of imports into S&o Paulo, arranged according to the countries of origin, for 1912-13 : Countries. United Kingdom Germany United States Italy . . Argentina France Belgium Portugal Austria-Himgary Other countries Total . . Equivalent in sterling 1912. Milreis. 59.327,856 47,470,418 31,347,237 24,893,524 20,802,900 19,548,463 13,840,552 9,399,737 3,803,896 18,263,721 248,698,304 £16,579,887 1913. Milreis. 58,460,306 49,335,729 38,225,221 24,697,330 22,111,063 26,505,464 16,547,749 10,028,655 4,698,914 22,592,767 273,103,188 £18,206,879 The following table shows the imports into Sao Paulo, according to the value of articles, for 1912-13 : 1912. IRIS. Milreis. Milreis. Gotten in bulk and manu- factured 19,838,816 16,414,192 Steel and iron, raw and manu- factured 32,183,988 36,823,197 Industrial machinery 6,844,926 5,877,362 Agricultural machinery 705,225 752,089 Other machinery and tools . . 25,836,450 27,746,235 Chemical products, drugs, and pharmaceutical products . . 6,158,853 6,877,793 BRITISH INTERESTS 211 1912. 1918. MilreU. Mllreit. Skins and leather, cured and manufactured 6,218,849 7,673,887 Jute and hemp — Thread for weaving 1.639,686 ' 1,272,098 In bulk .. 2,762,179 4,427,827 Coal 10,096,554 11,147,582 Kerosene 2,062,041 2,735,907 Rice 46,838 12,221 Codfish 3,326,421 4,698,612 Flour 7,642,401 3,699,163 Grain, wheat . . 13,211,890 17,849,677 Wine of all kinds 15,304,341 16,408,012 General commodities. 18,524,337 18,031,634 Bullion, coin, etc. 120,914 163,768 Total . . . . 248,698,304 273,103,188 Equivalent in sterling . . £16,579,887 £18,206,879 GTE. — The above figun 3S are quoted in paper money. Equivalent in gold : Milreis. 1912 147,376,770 1913 161,838,926 Return of Shipping of all Nationalities which Entebbd and Cleared in the Foreign Trade at the Port or Santos DtmiNO THE Years 1912-13. Entered. 1912. 1913. Vessels. Tonnage. Vessels. Tonnage. Brazilian 631 510,716 643 524,348 British 438 1,637,345 515 1,939,931 Italian 179 610,202 176 584,138 German 174 626,735 219 796,578 French 119 370,444 122 356,996 Austro-Hungarian. . 71 226,628 61 189,320 Dutch 56 231,437 52 230,802 Spanish 32 112,898 33 114,864 Other nationalities 61 102,911 110 211,374 Total . , 1,761 4,229,316 1,931 4,948,341 212 SOUTH AMERICA Gkared. 1912. 1913. NatJnnalitT ~ Vessels. Tonnage. Vessels. Tonnage. Brazilian . . 628 607,057 647 626,224 British 433 1,527,365 619 1,948,423 Italian 178 606,637 177 688,622 German 170 513,437 225 814,677 French 119 372,050 122 366,695 Auetro-Hungarian . 71 226,628 61 189,320 Dutch 67 273,721 52 230,802 Spanish 32 112,898 33 114,854 Other nationalities 60 101,857 117 207,428 Total . 1,748 4,241,660 1,963 4,976,945 Rkttjkn of Bbitish Shippino which Entebed and Clbabed in THE FOBEIGN TrADE OF THE PoRT OF Sio FRANCISCO DO StJL (Brazil) ditbino the Year 1913. Steam Vessels — Entered {in'Ballast) From — United Kingdom Las Palmas (Canary Islands) Vessels. Net Tonnage. 6 17,020 2 4,949 To— Chile Total 8 21,969 Steam Vessels — Cleared {tnth Cargo). 21,969 8 Return op British Shipping which Entered and Cleared in THE Foreign Trade of the Port of Santa Cathabina (FlORIANOPOLIS) DtTBING THE YEAR 1913. Steam Vessels — Entered (with Cargo). From — United States . . . . . . 1 2 17 7 lo Steam Vessels — Cleared (with Cargo). Rio Grande do Sul 2,177 The following table shows the shipping movement of Rio Grande for 1913 : BRITISH INTERESTS 213 Steam. Sailing. Total. Nationality. Vessels. Tonnage. Vessel!. Tonnage. Vessels. Tonnage. British 84 186,812 4 713 88 187,825 German 63 138,756 8 1,565 71 140,321 Swedish 2 3,355 — — 2 3,355 Norwegian — — 14 3,186 14 3,186 Danish 3 5,738 8 1.819 11 7,557 AustTO-Hungarian . 1 2,691 — — 1 2,691 Argentine . . 46 24,487 2 368 48 24,828 Greek 2 4,730 — — 2 4,730 Belgian — — 2 434 2 434 Russian — — 1 215 1 216 Uruguayan — — 1 248 1 248 French — — 1 147 1 147 Italian — 1 476 1 476 Brazilian . . 331 234,480 5 856 336 235,336 Total . . 532 601,019 47 10,027 879 611,046 The following figures concern the important north- eastern port of Pemambuco : COMPABATTVE STATEMENT OF All Shipping Entebed in the PoBT or Pebnambuoo duiung the Y EAB 1913. Total. Nationality. steam Vessels. Sailing Vessels. Vessels. Tonnage. British . . 232 45 277 938,762 German . . 99 — 99 250,134 French 25 1 26 92,945 Austro-Hungarian 13 — 13 26,526 Italian 14 1 15 43,342 Dutch 11 — 11 30,564 Swedish . . — 2 4,787 Norwegian 19 20 19,463 Danish . . 1 2 2,084 Argentine — 4 4,288 Spanish . . — 1 3,299 Belgian . . — 1 1,145 Other nationalities — 1 1 1,162 Total . . 404 68 472 1,417,491 214 SOUTH AMERICA I-H a> Pi < w w H O I— I p:J Q o o o (1 t3 & m M S — ' tr- CD >•■■ .§ oo^g.a^* So Sd^l.ll ^l.s^::€rB 216 SOUTH AMERICA I c •a n bo rt •a >0 rH O « CO CO CD C^ d o W (D lO <© -1 i-H 1— 1 l> o « . 1— ( CO I-H rH I-H o" -H O O ''i* >0 04 i-i g, 5 5 !o £ : £| : : : S .2 : : : : : : : .s : : E s ^1 1^ 11 -^1 fg II 1 lt^^l ^11 yiii?i't.|i|. ill iiiii 218 SOUTH AMERICA f£> to O ■* ■ CO ^ o A O o •a n t^ rt OO O "* -H -I O o o ^ « 00 lO CD M o o -H rt N O • rH i-i •C . . . Cf m g u • ' • 11 111 lliltl-i II-I-. Illl. ti s1l I ^i'll §111 I §11 lltl iM§ & 220 SOUTH AMERICA s .2 ■3 E •a n o 0. I O _0J s M t~ O O -H -< M ■* eq rH lO '^ Oi -* Tj< ^ r-< M CO ^ — -3 5 -H* M p (N CO 1 i !z5 » o m 1 In ■* M 1> o OH O CD © ft ho o fflfgnp5Sfioo?p; s a *c i * StI R* tJ ?! ^ "3 n h u n •Ri fi "o !:? X n CQ IS] BRITISH INTERESTS 221 —* o CO C) Tji CD «>OcD'^(MecOi»00»OTj*CD(N>-Haj rw-^, «-H eO CO lOOW^-^^ t£, r-l ^-"Sl W _4 rH - OS '^ to (O DO '^••0' ^. 2^. E3 05 222 SOUTH AMERICA t3 S o H a g Q 3 s •a m H H 03 H IH -^ n Oi CO CO 00 : :.e ::::::::::::::::::::::::« : J3 m 2 ..>-(BS......r. --^H gi. J-Ill::|l:li|||| Jf^g^g: Is lllll|.|i§HP-l!il!|§ll:l|iil| 224 SOUTH AMERICA £ 1 to -* 1,826 1,078 16 1,414 21 88 124 117 6 831 ON'* M CO -H m o ' 1— 1 i o O rt ^ o ■o e*io « ei r- to -H o « »-ICieOrHo (M bo ■3 E-i |i< W > O ^ « -3 BRITISH INTERESTS 227 (N (N o « CO o . . eo C^ CO Tfl CO 05 CO (M T)< F-H 00 cq . . . . OK P< . . g^ ^l-i III I h Ill illiMll^lllll.lllll.s 228 SOUTH AMERICA o o S •a o n CD O C^ t- CO -H CO CO ^ G^ 1— « • . o ^ CD ■© t- t- e ....::::: : m ' ', l ' ' S ill & s 2 m.P fc.g P -5 $.3 5;£ 9:"'so<---- BRITISH INTERESTS 229 o> o eo CO 05 M — ( .-I 00 230 SOUTH AMERICA 3 o (2 s s Q •3 O a o Pi ■3 0. O O CO ^ ^ -^ ■* rH O CO f— (J . S 3 .3 d ■ -a ■ a a <2s^aa(S(S6^asi£i6|g;s BRITISH INTERESTS 231 • O o o lO 00 n i> 00 « O O N 00 00 * • • fh ec CO to O i-H r-otococot- ,— (,-4,— it- eo ^ ^ <-< O l> (N ^ O O 5 o •S o S .3 I ■as •E § ^ ■a§ ' ' ' b'fs ' 1> o ^ -t> J3 bo § "S T r> GO y ^3 " K O « ■« '^ O 2 CD £ TJ — - -^ ^ &. g - 2^. •al o o C O 60 K^ 1 » S.^&'i ° ° < « 232 SOUTH AMERICA a a o a o H •3 5 m o p) Oi (N ^ r-4 ■••••• s • I »•• i • b ■■■■■§■ I -3 ■• • ,„ • -^oS -CuSi-M^cS^ Sis'- -t-^SoSjJ .e hls|.|||:|lll^||§,il:|r 1^1 BRITISH INTERESTS 233 -^ oo a> to OS >-H o . CO N ^ 0> O «5 -H <0 -c o m a> ■§ "2 >. : :§ : „ I § i : : 1 : S : s § .2 : g s • 234 SOUTH AMERICA I ■3 S m o o •a o n o •3 a* M CD rt <0 I —« 00 all (D O o lao 6fl >> o . S §1 25 §« BRITISH INTERESTS 285 o o I f-H lO M Oi i> «o t» C4 Cb O 03 ■ m o ■ 00 r-H IM (N « (N O O •* N "H 00 E^g O (M • o> C4 (N lO 05(0 « M ■ J3 -S .-S a g J J? J5 tr^ J? t^ [■ 1^ 4- s 5 s ' S : .a P. U CO Cj (D s^l K oo >o I , *-H ^ ^ o t- o o <0 O IN i o h 5^:0:::::::::: "S .2 ® E; m CS ."3 - • -2 2 * in • " o o< o -O -0 ^ o o S o o g, M M Ml I CI o ! S S « B O.'O 238 SOUTH AMERICA I ■3 « s •a m Pi a o •a 0. «0 t' lO CO O — C<1 o o i-H ^H <-H as o o M o ■* x)< O (M r-H 00 ^ »0 — H Csl t- lO -* ^ c^ ■o s > > QOO _ ^ _ CD 2 3 5 a' B 2 -^ 1^ ,S Tl d o 00 O BRITISH INTERESTS 289 d CC CO ■§ • • 'ill • •» ■ ■<§ i-s "s 'I 240 SOUTH AMERICA i o 1 CO CO fS 1 o 94 1 l> ^ CO CO rt Oi 00 o • 00 m • •* «» a CO CO ^ OS & -< CO 1 1 CO O T* t^ . . . o • . . . . . ^ . . . 00 s (N CD 00 ■* o_ r-t ' ... • g^ ■o CO 1 _0 . ... ID ... . 1 1 c J i « mo -^ Ph j, O >— I (M O O N «• O F-c f-H lO O CO -^^ JXi. DQ BRITISH INTERESTS 241 242 SOUTH AMERICA o 1 (2 1 : at (0 1 IS i o « 1 ft. ^ 3 o ,-. O 1-1 o o f-H JO o >o I 1 i 1 Textiles Vermouth Varnish Wine Spices . . "3 <1 o -&I ° .•g m- 1 -rl .-H ■■-' '*' ^ ^ d -S BRITISH INTERESTS 243 o D o : »— 1 O r-i -* O rH « . to • Oi rt CO ■ l> o o IC O rt . . . o o t^ CO CO (M ::: (N ■*-!■* (M o 00 — lO lO 00 CO to to o o o o t~ c^ • • e< - • o t^ O CO 05 CO ^ lO • . . 00 ■* ^ o" ■ to t- t- (M c^ W3 o ir- O t^ « o t^ ^H : t j § g o E-1 o o S H o g ^ K - - ,-H J3 C6 © ■— (C fcH to H H > 1^ OS T3 s - 13 g & 13 '• '■ ■ '■ 261 , C4 o o (M - o o • '■ 1| ■3 244 SOUTH AMERICA Retttbk of Shipping of axi- Nationalities which Enteked and Cleaeed IN THE Foreign Tbade of the Pobt of Pebnambitco dttring the Year 1912. Steam Vessels — Entered. With Cargo. In Ballast. Total. Vessels. Tonnage. Vessels. Tonnage. Vessels. Tonnagt. British 1 . 208 820,895 16 35,781 224 856,676 German 95 255,408 2 2,165 97 257,573 French 30 92,474 2 1,473 32 93,947 Aviatro-Hvingarian . 13 20,421 — — 13 20,421 Norwegian i 8,832 — ■ — 4 8,832 Swedish 2 5,196 — ■ — 2 6,196 Danish 3 5,014 — — 3 5,014 Dutch . — — 3 117 3 117 Argentine . — — 4 5,644 4 5,644 Spanish 1 1,721 — — 1 1,721 Italian 5 9,136 1 1,834 6 10,970 Belgian 1 1,659 o 1,880 3 3,539 United States 1 2,192 2 334 3 2,526 Paraguayan — — 1 97 1 97 Uruguayan — — 1 42 1 42 Chilean — — 1 10 1 10 Total . . 363 1,222,948 35 49,377 398 1,272,325 Steam Vessels — Cleared. British 186 773,351 37 81,835 222 855,186 German 96 258,746 2 2,165 98 260,910 French 30 92,474 1 1,425 31 93,899 Austro-Hung 'arian . 13 20,421 — — 13 20,421 Norwegian 3 6,934 1 1,898 4 8,832 Swedish 2 6,196 — — 2 5,196 Danish 2 3,870 1 1,144 3 5,014 Dutch — — 2 87 2 87 Argentine . — — 4 5,644 4 6,644 Spanish — — 1 1,721 1 1,721 Italian 6 9,136 1 1,834 6 10,970 Belgian 1 1,867 2 1,672 3 3,639 United State )8 . . • — 3 2,626 3 2,526 Paraguayan — — 1 97 1 97 Uruguayan — — 1 42 1 42 Chilean — ■ — 1 10 1 10 Total . 337 1,171,994 58 102,100 395 1,274,094 » Includes Pacific Steam Navigation Company and Royal Mail steamers calling at this port to land passengers and mails and sometimes cargo. BRITISH INTERESTS Sailing Vessels — Entered. 245 Nationality. With Cargo. In Ballast. Total. Vessels. Tonnage. Vessels. Tonnage. Vessels. Tonnage. British French Norwegiaa United States 37 13 1 10,165 9,629 210 1 1 96 1,943 38 1 13 1 10,261 1,943 9,629 210 Total . . 51 20,004 2 2,039 53 22,043 SaiUng Vessels — Cleared (in Ballast). Vessels. Tonnage. British 38 10,2U1 French 1 1,943 Norwegian 12 8,684 United States 1 210 Total 52 21,098 Retxjbn of aix Shipping at the Pobt or Pernambuoo dueino THE Years 1910-12. Entered. Vessels. NationaUty. Y«ir. Tonnage. Steam. Sailing. Total. British 1 1910 238 46 284 736,046 1911 235 44 279 829,402 1912 224 38 262 866,937 German 1910 78 — 78 198,433 1911 96 1 97 234,157 1912 97 — 97 267,573 French 1910 35 — 35 101,983 1911 30 — 30 92,291 1912 32 1 33 95,890 Austro-Hungarian . . 1910 14 — 14 28,446 1911 14 — 14 23,557 1912 13 — 13 20,421 Norwegian . . 1910 3 11 14 8,747 1911 2 12 14 11,455 1912 4 13 17 18,461 • Includes Pacific Steam Navigation Company and Royal Mail steamers calling at this port to land passengers and mails. 246 SOUTH AMERICA Retukn of Shipping at the Port of Pebnambuco — continued- Entered — continued. Vessels. Nationality. Year. Tonnage. Steam. Sailing. Total. Swedish 1910 1 _ 1 1,219 1911 1 — 1 1,671 1912 2 — o 5,196 Danish 1910 2 1 3 4,623 1911 1 — 1 2,333 1912 3 — 3 5,014 Argentine 1911 2 2 4 2,682 1912 4 — 4 5,644 Dutch 1910 6 — 6 2,013 1911 1 — 1 14 1912 3 — 3 117 Spanish 1910 3 — 3 4,622 1911 2 — 2 4,061 1912 1 — 1 1,721 Belgian 1911 2 — 2 2,284 1912 3 — 3 3,639 United States 1912 6 — 6 10,970 Other nationalities . . 1910 6 — 5 2,981 1911 1 1 2 2,733 1912 6 1 7 2,886 Cleared. British ' 1910 240 42 282 739,042 1911 237 49 286 833,003 1912 222 38 260 866,447 German 1910 79 — 79 202,095 1911 94 1 95 229,345 1912 98 — 98 260,910 French 1910 35 — 35 101,983 1911 30 — 30 92,291 1912 31 1 32 95,842 Austro-Hungarian 1910 14 — 14 28,446 1911 15 — 15 25,105 1912 13 — 13 20,421 Norwegian 1910 4 9 13 9,732 1911 1 13 14 10,674 1912 4 12 16 17,516 ' Includes Pacific Steam Navigation Company and Royal Mail steamers caUing at this port to land passengers and mails. BRITISH INTERESTS 247 Retubn of Shippino at the Port of Pebnambuoo — continued. Cleared — -continued. Vessels. Nationality. Year. Tonnage. Steam. Sailing. Total. Swedish 1910 1 1 1,219 1911 1 — 1 1,671 1912 2 — 2 5,196 Danish 1910 2 1 3 4,623 1911 1 — 1 2,333 1912 3 — 3 5,014 Argentine 1911 2 2 4 2,682 1912 4 — 4 6,644 Dutch 1910 6 — 6 2,013 1911 1 — 1 14 1912 2 — 2 87 Spanish 1910 3 — 3 4,622 1911 2 — 2 4,051 1912 1 — 1 1,721 Belgian 1911 2 2 4 2,284 1912 3 — 3 3,639 Itahan 1912 6 — 6 10,970 United States 1912 3 1 4 2,731 Other nationalities . . 1910 5 — 6 2,981 1911 1 1 2 2,733 1912 3 — 3 149 1 The following table shows the total shipping of the port of Alagoas for the year 1912 : Steam Vessels . Nationality. Vessels. Tonnage. British . 37 82,381 German 14 30,264 Austro-Himgarian 6 7,636 Danish 2 2,816 Norwegian 1 2,097 United States 1 1,942 Brazilian . . . 407 . 467 449,481 Total 676,616 248 SOUTH AMERICA Sailing Vessels. Vessels. Tonnage. British 8 1,704 Gennem 1 369 Norwegian. . 1 700 Swedish . . 1 377 Belgian 1 266 Total 12 3,416 The corresponding figures for the Port of Maceio are Steam Vessels — Entered {with Cargo). From — United Kingdom United States Argentina . . Germany . . Total 'essels. Tonnage. 22 47,869 5 13,412 2 4,073 1 1,327 30 66,681 The shipping figures of the port of Ceara for 1912 are as follows : Steam Vessels — Entered. Nationality. With Cargo. In Ballast. Total. Vessels. Tonnage. Vessels. Tonnage. Vessels. Tonnage. British . . German . . Spanish . . 27 14 1 59,615 25,162 1,983 3 4,040 30 14 1 63,655 25,162 1,983 Total . . 42 86,760 3 4,040 45 90,800 Cleared. British Germekn Spanish 24 14 51,378 25,162 6 1 13,883 1,983 30 14 1 65,261 25,162 1,983 Total . . 38 76,540 ^ 15,866 45 92,406 BRITISH INTERESTS 249 Return of Shipping of all Nationalities which Entebed and Cleared in the Fobeign Trade of the Port of Cabedello dubino the Year 1912. Steam Vessels — Entered {with Cargo). Nationality. British German Danish BraziUan . . Total 32 65,411 Steam Vessels — Cleared (with Cargo), British 14 31,924 German 2 1,801 ssels. Tonnage. 18 40,384 11 20,584 1 1,144 2 3,329 Total 16 33,725 Sailing Vessels — Entered {with Cargo) and Chared {in Ballast). Norwegian 3 2,529 Return of Bbitish Shipping which Entered and Cleared in THE Foreign Trade of the Port of Cabedello during the Year 1912. Steam Vessels — Entered {tvith Cargo). From — Vessels. Tonnage. United Kingdom . . . . 13 30,034 United States 2 4,388 Argentina 1 2,180 Germany . . Uruguay 1 1,327 1 2,455 Total 18 40,384 Steam Vessels— Cleared {with Cargo). To- United Kingdom . . . . 14 31,924 , We may conclude with the principal recent imports of the important Amazon town of Pard. 250 SOUTH AMERICA Bice . . Salt . . Potatoes Cement Soap Flour Dried beef Maize Hay Kerosene Gasolene 1912 1913 1914 1912 1913 1914 1913 1914 1912 1913 1914 From From United River States. Plate. Cases I Barrels I 1912 Cases 1913 1914 1912 Barrels 1913 1914 1912 Bags 1913 1914 1912 Bales 1913 1914 1912 Sacks 1913 1914 1912 Btmdles 1913 1914 1912 Cases 1913 1914 1913 1914 24,851 18,394 7,670 280,420 210,912 273,545 108,923 61,990 51,136 42,892 18,776 17,625 18,012 9,664 10 80,612 56,472 39,858 44,109 48,066 79,743 38 11,962 I 14,840 150 ; 3,7.35 213,164 221,495 199,360 15,838 19,075 4,884 14,423 13,143 250 7,535 28,935 11,620 20,452 60,516 30,532 13,650 37,496 2,120 2,430 37,496 4,021 From Brazil. 23,532 23,116 22,102 4,605 1,000 7,780 7,881 9,704 9,314 23,171 15,159 24,825 CHAPTER XVII BRITISH INTERESTS IN THE VARIOUS REPUBLICS {continued) British interests in Chile — The nitrate industry — Public enterprises — Chief British exports — Table illustrating recent Chilean imports — Volume of trade of the various countries concerned in this — Imports into Iquique — -Imports into Coquimbo — Shipping of the ports of Coquimbo and Antofagasta — Shipping of all Chilean ports — Of Valparaiso — List of customs houses, etc. — Comparative importance of the various ports — The British interests in Peru — A favourable situation — The Peruvian Corporation — Trade of the British Dominions with Peru — Imports from India, Hong- Kong, AustraUa. and Canada — Statistics concerning the chief trade of Peru— Value of the various imports — Countries chiefly concerned in the trade — Their respective shares — Tables of values of the principal goods imported— Return of British ship- ping in the port of Callao. One of the principal direct British interests in Chile is that of the nitrate industry in the north, a large number of the nitrate oficinas being British- owned. Practically the sole railway interest which is exclu- sively Chilean possessed by the British is the Chilean Transandine hne. This joins the Argentine Transandine among the heights of the Andes, and serves that part of the transcontinental route between that point and Los Andes, where the Chilean State Railway takes up the route. AU the rest of the railways, with the excep- tion of a few small, privately owned lines, are the property of the Chilean Government. Owing to the amount of enterprise and energy shown by the Chileans a lesser number of great public enter- 252 SOUTH AMERICA prises are conducted by foreigners in that country than is the case in almost any other South American Republic. Nevertheless, a certain amount of British capital is invested in this way, although the majority of this is used in private business enterprise and in the Chilean mines. Among the chief British exports are machinery, hardware, and cotton goods. Some figures illustrating recent Chilean imports are : Animal products Vegetable products . . Mineral products Industrial oils, fuels, etc. Paper and manufactures Perfumery, chemical products Machinery, etc. Arms and munitions . . Textiles and manufactures Miscellaneous . . 1912. 1913. . £1,890,981 £1,612,660 . 2,717,618 2,863,231 . 4,478,308 4,577,074 . 3,698,372 4,073,666 703,772 735,827 ,s 604,628 624,873 . 3,319,814 3,074,277 226,964 289,686 . 6,151,222 6,763,219 . 1,322,429 1,099,322 £25,084,108 £24,713,835 The following will show the respective volume trade of the various countries exporting goods to Chile of Great Britain . . .. £7,931,360 £7,403,207 Germany . . 6,819,672 6,077,700 United States . . . . 3,453,357 4,127,909 France .. 1,491,999 1,360,994 Belgium 641,640 1,166,362 Peru 989,883 988,433 Australia 620,496 687,089 Argentina 842,868 670,408 Italy 618,456 652,661 Spain . . 263,453 233,401 Other countries . . 1,410,924 1,346,721 £25,084,108 £24,713,835 BRITISH INTERESTS 253 The following are the reports, both from Consular Eind Chilean official sources, of the trade of some of the Chilean ports and of the principal shipping movements : Total Value op Imports lnto Iquiqtje dttring the Yeabs 1911-13 by countbies op origin. 1911. 1912. 1913. From — £ £ £ United Kingdom 767,633 710,376 803,327 Germany- 213,862 236,703 360,185 United States . . 170,822 236,838 285,804 Belgium 54,982 95,773 84,549 Italy . . 44,585 57,866 51,873 France . . 50,095 77,264 78,359 Spain . . 13,012 12,633 17,741 Peru 421,479 683,169 125,376 Australia 119,376 186,828 69,641 India 135,135 192,947 184,743 Argentina 7,483 565 417 Ecuador 7,419 8,079 9,313 Switzerland 245 16 379 Japan . . 6,883 6,719 7,002 Portugal 2,089 5,622 6,526 China 4,922 4,578 4,159 Cuba . . 575 2,278 2,590 Netherlands 856 1,285 1,612 Austria-Himgary 415 468 756 Egypt .. 133 262 360 Turkey . . 283 679 470 Canada . . 7,419 — — Brazil . . 1,175 3.044 4,060 Total . . • 2,029,878 2,423,792 2,098,132 Note.— The total value in 1906 was £1,810,704 ; in 1906, £1,886,846 ; in 1907, £2,070,436 ; in 1908, £2,268,619 ; in 1909, £1,406,017 ; in, 1910, £1,822,406. 254 SOUTH AMERICA Valuk of Imports into Iquiqub dubing the Ybabs 1911-13 by COUNTBIES OF ORIGIN, BXCLUDINQ THE VAitTB OF RaW MaTEBIAI.8 — CoAi,, Lumber, and Crude Petroleum. 1911. 1912. 1918. From — £ £ £ United Kingdom 406,669 422,241 602,377 Germemy 213,558 236,271 354,390 United States . . 135,429 196,709 166,866 Belgium 54,982 90,843 84,549 Italy 44,685 57,866 61,873 France . . 60,095 56,975 67,246 Spain 13,012 12,633 17,741 Peru 27,107 81,269 79,949 India 135,135 192,947 184,743 Argentina 7,483 565 417 Ecuador 7,419 8,079 9,313 Switzerland 245 16 379 Japan . . 5,883 6,719 7,002 Portugal 2,089 5,622 5,626 China 4,922 4,578 4,169 Cuba . i 675 2,278 2,690 Netherlands 856 63 1,612 Austria-Hungary 415 468 756 Egypt 133 262 360 Turkey . 283 579 470 Brazil 1,175 3,044 4,050 Total . . 1,112,050 1,379,927 1,536,368 Coal 480,340 501,836 387,399 Lumber 43,116 40,129 34,988 Petroletun (crude) . 394,372 501,900 140,377 Grand total 2,029,878 2,423,792 2,098,132 3 bi CO ^ oS ^ ©4^ eo O M to 05 t^ 00 ^ co_ o> CO to to O 00 (N M -* -* 1,529 4,321 2,403 c4 OS O ^ (N »0 , -^ O 00 M* 00_^ U3 CO_ CC iS ci yi< CD OS 2,782 4,200 5,160 O to 1,010 1,615 4,364 OS OS "* l> CO CO CD CO t^ 5+1 T*<^ CO^ iO_ tH^ tjT CO r-" -<* rH 00 CO O CO OS I-H CT) m o> N t- « N CO « 1> t- ^ IS o o eo 00 t^ >o -^ CO t^ rH rH 1 O -* CO ^ CO »0 -^ tH «rt i> ^ CO CO OS CO OS \o OS CO lO IN 48,286 15,178 224 00 CO CO TlH rH IM Oi CO 02 O CO 0_rt » t- to QO ■* ■«)( rt lO -* 8 2 1 "a D CO r-l CO rH tJ* CO rH CO CO OS 00 o crt (M CO OS O rjT oo" IC CO -^ oo o o^ eo 29,678 30,873 3,499 21,862 3,628 85 CO 00 -* o t~ o ■* >o >o lO CO 00 OS rH t- lO 00 O »0 G0 00 CO CO CO Ir- T-H O 00^ -.^^ 00^ »0 CO lO ^ CO O oo o o 2S 99,680 129,939 6,233 7,311 23,084 878 ■41 CO ■« -* IM rH TlTtD-O - Beverages (liquors and mineral waters) . . Chemicals Cotton goods Woollen goods Glass, earthenware, and cement Groceries Hardware (including unworked iron) . . Machinery . . Leather gooda Oils and paints (ex- cluding crude petro - leum) Explosives . . Tobacco Paper goods (including books) Jute and hemp fabrics Miscellaneous 256 SOUTH AMERICA Retubn or Pbincipal Aetioibs or Impobt at Coquxmbo DUBING THE YkABS 1912-14. Articles. 1912. 1913. 1914. £ £ £ Animal products 17,500 24,610 11,880 Vegetable products . . 70,970 81,220 72,460 Mineral products 56,280 84,160 89,050 Textile manufactures . . 36,540 42,710 19,290 Oils, paints, combustibles 15,510 16,680 16,930 Coal and coke . . 86,510 92,860 64,580 Paper and its manufactures . . 9,790 11,300 5,690 Liquors and mineral waters . . 13,300 14,480 9,760 Chemicals, drugs, perfumes . . 2,190 33,730 2,710 Machinery and tools . . 94,860 44,530 70,390 Arms and explosives . . 3,310 4,950 2,480 Other articles . . 27,870 26,740 30,740 Total 434,630 477,970 396,960 Retubn of Shipping of at.t, Nationamties which Entebbd and Cleabed in the Fobbign Trade of the Pobt of Coquimbo cubing the Ybab 1914. Steam Vessels — Entered (with Cargo). :Not Nationality. Vessels. Tonnage. British 1 .. 67 240,936 Chilean . . .. 34 62,955 German . . .. 42 151,252 French .. 6 19,299 United States 4 13,092 Norwegian 1 2,773 Total 154 490,307 Steam Vessels — Cleared (with Cargo). British' .. Chilean . . German . . United States Total 19 90,817 4 6,106 19 77,047 1 3,622 43 177,692 ' In this table are classified as " British " only such British vessels 1 entered from or cleared to the United Kingdom and dependencies. BRITISH INTERESTS 257 The following is the amount of shipping entered at Antofagasta during 1913, 1914 : ] 1913. 1914. NaUonaUty. Vends. Tonoage. Vessels. Tonnage. British 361 1,110,036 298 942,330 German . . 232 818,882 126 466,108 Chilean . . 496 625,093 473 811,862 French . . 26 70,264 14 32,874 Norwegian 29 66,628 13 38,260 Peruvian 27 63,246 — — United States . . 16 20,185 6 8,823 Japanese 4 18,218 4 21,384 Russian . . 4 8,913 — — Swedish . . 1 2,470 2 4,482 Belgian 1 2,074 — — Italian 1 1,939 1 2,299 Danish . . — • — 1 2,696 Total . . 1,198 2,707,614 934 2,029,718 Shipping Entebbd at ai,i. Chileak Poets ditbino the Year 1912. Steam. Sailing. Nationality. Vessels. Tonnage. Vessels. Tonnage. Chilean . . 7,206 6,002,148 470 296,382 British 4,344 12,409,126 98 178,828 German . . 1,917 6,310,814 157 342,814 French . . 139 423,467 108 232,649 Italian 47 118,679 26 44,948 Norwegian 370 701,871 101 188,667 Spanish . . 3 7,497 — — Swedish . . — — 1 1.116 Austro-Hungarian 1 2,963 — — Dutch 7 17,699 — — Danish — — 2 2,699 Russian . . — — 10 17,194 Belgian . . 8 1,918 1 1,033 United States . . 14 36,776 40 26,003 Mexiccm . . 1 1,734 — — Argentine 6 6,960 4 392 Peruvian 1 2,496 — — Japanese 47 186,067 — — Total . . 14.110 26,227,203 1,018 1,298,978 17 258 SOUTH AMERICA Cleared at ali. Chilean Pokts dtjrino the Year 1912. steam. Sailing. Nationality. Vessels. Tonnage. 6,095,258 Vessels. Tonnage. Chilean 7,129 461 456,737 British 4,329 12,322,575 91 161,882 German . . 1,908 6,259,684 151 331,388 French 125 412,865 95 209,000 Italian 60 120,203 20 .34,499 Norwegian . \ 364 690,611 85 135,604 Dutch . . ■ : 8 17,815 — — Danish — — 2 2,699 Russian . . — — 12 20,585 Belgian 6 1,375 1 1,033 United States . 14 36,616 38 25,735 Mexican . . 1 1,734 — — Argentine 3 6,597 4 392 Peruvian 2 2,613 5 2,809 Japanese 68 238,665 — — Spanish . . • 3 7.497 — — Total 14,000 26,214,008 965 1,382,363 Shipping at Valpabaiso. Steam Vessels — Entered. Foreign Trade. Coasting Trade. Vessels. Tonnage. Crew. Vessels. Tonnage. Crew. Chilean British German French Italian Norwegian . . Dutch United States Japanese . . 53 287 181 14 3 20 1 1 7 94,051 872,894 607,480 47,479 7,204 51,836 2,370 981 28,136 4,671 22,686 11,939 905 151 665 29 56 678 447 86 16 2 1 15 385,002 202,016 43,313 7,652 3,054 16,315 16,735 7,016 894 91 76 759 Total . . 667 1,712,430 41,679 666 667,352 24,671 BRITISH INTERESTS 259 Shipping at Vauabaiso — Continued. Sailing Vessels — Entered. Foreign Trad( Coasting Trade. Vessels. Toimage. Crew. Vessels. Tonnage. Crew. Chilean 10 14,518 267 36 5,378 285 British 6 7,592 168 — German 29 68,210 853 1 1,714 24 French 6 13,015 134 Italian 4 7,238 94 . — Norwegian 16 26,776 319 1 1,738 21 Russian 1 2,290 23 — United States U 9,601 181 — — — Total . . 86 149,240 2,029 38 8,830 330 Steam Vessels — Cleared. Chilean British German French Italian Norwegian Dutch United States Japanese . . Peruvian . . Total . . 57 101,988 4,836 436 375,261 16,719 245 779,539 22,365 129 321,048 8,653 176 595,178 11,730 19 63,501 1,259 12 40,750 693 3 11,478 138 2 5,614 164 2 4,744 166 3 35,991 470 22 34,851 1,029 — — — 1 2,370 29 I 981 56 — — — 6 24,894 597 7 28,126 670 1 18 9 — — — 513 1,584,953 40,920 619 831,379 28,663 Sailing Vessels — Cleared. Chilean 2 2,399 64 45 10,461 460 British — — — 5 8,608 132 German 2 3,962 103 27 66,286 736 French 1 1,995 21 4 9,294 149 ItaUan — — — 2 3,659 60 Norwegian 1 1,738 20 — — — Bussian 1 2,290 25 — — — United States 10 6,872 142 2 1,784 27 Total . . 17 19,256 375 85 100,092 1,643 260 SOUTH AMERICA The following are the Chilean ports which have customs houses, from north to south : Arica, Pisagua, Iquique, Tocopilla, Antofagasta, Taltal, Caldera, Carrizal Bajo, Valparaiso, Talcahuano, Coronel, Valdivia, Puerto Montt, Ancud, and Punta Arenas. There are besides a good many small ports dependent on the customs houses of the above-mentioned ports. Of these ports, the four most important for their commerce and general traffic are : 1. Valparaiao 2. Antofagasta . . 3. Iquique 4. Talcahuano . . As regards exports, we have- 1. Antofagasta 2. Iquique 3. Pisagua 4. Taltal 5. TocopiUa 6. Valparaiso Average 190&-11 in 18d. pesos. $297,316,080 176,407,569 167,542,494 101,340,501 $83,465,711 64,733,037 47,732,550 30,115,019 28,826,794 12,884.701 To the Antofagasta exports should be added the amount of the Bolivian exports which are exported through Antofagasta, and which in 191 1 amounted to $35,275,000. As regards imports, we have — ■ 1. Valparaiso 2. Talcahuano 3. Iquique 4. Antofagasta $137,184,900 33,298,740 25,830,483 21,314,875 As regards the coasting trade, the scale is- 1. Valparaiso 2. Antofagasta 3. Iquique 4. Talcahuano 5. Coquimbo 6. Valdivia 7. Coronel $146,163,355 69,101,389 66,587,665 55,588,896 36,537,302 34,929,387 15,128,456 The coasting-trade in Chile is open to all nations BRITISH INTERESTS 261 CoMMEECiAi Movement or the Pbincipal Ports, expressing the COEFFICIKNT OF CaBGO, OB THE WEIGHT OF MeKOHANDISB MOVED FOE EACH Ton Net Keqister. Metrical Coefficient Tons. of Cargo. 1. Antofagasta . .. 1,625,566 0-27 2. Valparaiso .. 1,424,710 0-29 3. Iquique .. 1,050,423 0-25 4. Pisagua . . 668,556 0-20 5. Coronel . . 524,386 0-12 6. Taltal . . . . 467,650 018 7. Talcahuano . . . 443,545 0-10 The maritime traffic in 1912 in all the ports of the Republic was : Foreign Trade. ArrivcHs. Steamers Sailing vessels Ships. 6,093 S79 Total . . . . 5,672 Sailings. Steamers Sailing vessels Total .. 4,648 498 .. 6,046 Tons. 15,070,782 1,061,740 16,132,627 13,387,036 926,480 14,313,515 Peru, as wiU be evident from the statistics given later, is one of those countries in which British enter- prise has maintained its level in a more satisfactory fashion than has been the case in some others of the South American Repubhcs. The situation here, indeed, would seem to compare favourably with that which has prevailed ia the neighbouring RepubUcs to the east and to the north of Peru. The principal British enterprise in Peru is represented by the Peruvian Corporation, a very important company that is concerned not only in the general commerce of the country, but in the port works, railways, and the similar monumental undertakings of Peru Before the outbreak of the war Great Britain's chief commercial competitor in Peru was the United States, Germany coming in as a fairly close third, 262 SOUTH AMERICA Peru is one of those South American countries which is beginning to supply direct markets to various of the British possessions. Indeed, the Dominions have far more to do with the Peruvian imports than is generally reaUzed. Thus, beginning with the East, we find that India now sends a quantity of jute bags, that for some years previous to the outbreak of the war averaged some thirty thousand pounds in value The imports from Hong-Kong are of more general nature, and they are of sufficient importance to warrant a regular Une of steamers, under the Japanese flag, saihng between that port and Callao. This commerce with Hong-Kong is, as regards the Peruvian side largely in the hands of the Chinese merchants who have estabUshed themselves in Peru. In 1910 the total extent of this trade exceeded £130,000 in value. The imports from Austraha overtopped this in the same year. These exceeded £180,000, and were com- posed for the most part of coal, wheat, tallow, and butter. Even this does not conclude the trade of the Dominions with the Southern Pacific coast of America ; for Canada has now become accustomed to ship her lumber to the Peruvian ports, and the commerce in this has been increasing rapidly, although it cannot yet be said to have attained to any important dimensions. The following figures will show the increase of the general trade of Peru : Year. Imports. Exports. 190J . . . £2,862,407 £4,730,776 1902 . . 3,428,283 3,703,971 1903 . . 3,783,200 3,857,753 1904 . . 4,900,444 6,866,366 1905 . . 4,917,724 4,780,414 1906 . 6,632,349 6,600,325 J907 . . 6,514,787 5,747,732 1908 . . 5,298,625 5.478,941 1909 . . 4,298,627 6,492,670 1910 . 4,966,792 7,074,076 1911 . • . 5,438,250 7,416,028 BRITISH INTERESTS 263 Principal Imports, 1910 Cotton textiles £688,031 Wool and animal hair 213,387 Linen, hemp, jute, and other textile fibres 93,740 Silk, animal and vegetable . . .. 61,744 Hides, skins, and leather goods . . 34,781 Wearing apparel, etc. . . 167,376 Furniture 31,924 Metals and manufactures thereof . . . . 449,199 Stones, earth, coal, glass, and chinaware. . 122,091 Woods, lumber, and manufactures . . 89,882 Paints, dyes, varnishes, bitumen, gums . . 79,762 Live-stock 9,310 Stationery, paper, cardboard . . . . 66,468 Tools, ship's stores, machines, and vehicles 183,764 Musical instruments . . . . 7,420 Arms, ammunition, and explosives . . 38,154 Dry goods and miscellaneous articles . . 1,739,630 Beverages .. .. .. .. .. 116,527 Comestibles and condiments . . . . 734,464 Medicines and pharmaceutical products . . 113,298 Articles not enumerated in the tariS . . 25,871 £4,968,792 Table showing the Valtte op the Import Trade of Peru during THE Years 1910-12. Country. 1910. 1911. 1912. £ £ £ United Kingdom 1,678,701 1,720,133 1,198,632 India 29,828 38,980 — Australia 182,152 229,306 239,558 Canada 3,400 — Belgium 250,296 333,982 245,278 Chile . . 152,188 76,996 195,706 China 4,159 283 — Hong-Kong 131,686 154,321 153,675 France 486,903 289,543 269.331 Germany 790,710 945,907 820,887 Italy . . 167,790 199,450 253,797 Spain.. • 52,308 79,597 — United States 922,677 1,248,952 1,105,749 Other countries . 1 113,696 120,800 219,943 264 SOUTH AMERICA Table showing Impoets by Aetioles and Countbiks during THE Yeak 1910. Country. United Kingdom Germany Italy . . United States Belgium Spain . . France Japan . . Other countries Total Cotton Textiles. £ 363,736 90,142 46,065 30,669 27,170 12,496 12,263 2,463 3,048 688,031 Wool and Animal Hair. United Kingdom Germany Belgium Italy . . France Hong-Kong United States Other countries Total 109,613 67,036 19,064 12,644 8,662 3,025 614 2,939 213,387 Linen, Hemp, Jute, and other Textile Fibres. United Kingdom British India Germany Australia Caiile . . France Belgium Italy . . United States Other countries Total 51,267 18,282 6,410 4,036 3,364 3,306 2,840 2,330 1,066 871 93,740 Silk, Animal and Vegetable. Germany United Kingdom France Italy . . 24,894 13,076 11,943 4,837 BRITISH INTERESTS 265 Silk, Animal and Vegetable — continued. Country. £ Chile 2,236 Belgium 1,826 Other countries . . . . . . . . 3,232 Total 61,744 Hides, Skins, and Leather Qoods. United Kingdom 12.117 Germany 8,369 United States 7,702 France 2,899 Other countries 3,694 Total 34,781 Wearing Apparel, etc. United Kingdom 63,212 France . 25,577 Germeiny . 24,411 Italy . 22,346 United States 11,935 British India . . . 11,478 Spain . . 9,218 Other cotmtries 9,198 Total 167,375 Furniture. Germany .. 11,009 United Kingdom 9,043 United States 8,266 France 2,223 Other countries 1,383 Total 31,924 Metals and Manufactures thereof. United Kingdom .. 261,124 United States .. 102,441 Germany . . 42,242 Belgium . . 33,944 Frsmce 7,565 Other countries 1,883 Total 449,199 266 SOUTH AMERICA Stones, Earths, Goal, Olass, and Ghinaware. Coun'ry. United Kingdom Germany Belgiimi United States Australia France Other countries Total £ 65,913 29,353 13,964 10,670 6,531 3,119 3,541 122,092 Woods, Lumber, and Manufactures. United States Chile . . United Kingdom Canada Ecuador Germany Other countries Total 66,316 3,580 3,562 3,400 3,300 3,120 6,574 89,852 Paints, Dyes, Varnishes, Bitumen, Gums. United States Germany United Kingdom Belgium Salvador .. 13,892 . . 12,823 3,377 3,285 Other countries 2,575 Total . . 79,762 Live Animals. Argentina Chile Other countries 6,117 2,073 1,120 Total 9,310 Slntionrrij, Paper, and Cardboard. Germany United States United Kingdom Belgium Spain . . 31,763 9,623 7,332 6,841 4,457 BRITISH INTERESTS 267 Stationery, Paper, and Cardboard — continued. Country. France Italy . . Other countries Total £ 3.433 3,014 1,005 66,468 Tools, Ships' Stores, Machines, and Vehicles. United States . . 89,748 United Kingdom 56,304 Germany . . 15,966 France 11,918 Belgium 7,333 Other countries 3,606 Total 183,764 Musical Instruments, Germany United States Other countries 4,107 1,631 1,682 Total 7,420 Arms, Ammunition, and Explosives. United Kingdom .. 13,814 United States 8,082 Hong-Kong 5,550 Chile 4,704 Germany 3,662 Other countries 2,442 Total 38,154 Dry Ooods and Miscellaneous Articles, United Kingdom . 530,860 United States . 370,279 France . 307,310 Germany . 306,288 Belgium . 115,382 Chile . . 29,451 Italy . . 12,856 Ecuador 11,332 Hong-Kong 8,703 Spain . . 7,676 268 SOUTH AMERICA Dry Goods and Miscellaneous Articles — continued. Country. Cuba £ 7,269 Portugal •• 7,097 Australia 5,607 Other countries Total . . 19,621 1,739,630 Beverages France 33,026 (Jennany 18,093 United Kingdom 16,927 Portugal 14,271 Italy 9,339 CSiina . . 6,711 Spain . . 6,889 Belgium 6,160 United States 3,369 Other countries 2,073 Total 116,527 Comestibles and Condiments. Australia . 164,727 United States . 112,495 Hong-Kong . 104,264 Chile . 102,283 United Kingdom . 76,144 Germany . 70,938 Italy . 37,548 Portugal . 11,539 Belgiima 27,822 Argentina 3,860 Other countries 23,144 Total . . 734,464 Medicines and Pharmaceutical Products. United Kingdom 29,707 Germany 26,990 United States 24,405 France 18,639 Italy 10,213 Other countries 6,344 Total 113,298 BRITISH INTERESTS 269 Retubn of British Shipping which Entered and Cleared in the Foreign Trade of the Port op Callao during the Year 1913. Steam Vessels — Entered. With Cargo. In BaUast. Total. Vessels. Tonnage. Vessels. Tonnage. Vessels. Tonnage. From — United Kingdom . 73 245,607 1 2,065 74 247,672 Canada — — 1 3,309 1 3,309 ChUe 36 88,237 22 40,508 58 128,745 Ecuador . ' 22 60,103 3 5,979 25 66,082 Netherlands 1 2,789 — 1 2,789 India . : 2 7,009 — — 2 7,009 Panama 26 44,817 — — 26 44,817 United States 27 78,236 — — 27 78,236 Total . . 187 626,798 27 51,861 214 578,669 Steam Vessels — Cleared. United Kingdom . . 61 218,627 — — 61 218,627 Chile 32 82,556 16 37,714 48 120,270 Ecuador 23 59,638 3 6,533 26 66,171 Panama 26 53,293 1 457 27 63,750 New Zealand — — 1 4,005 1 4,005 United States 9 25,706 2 7,315 11 33,021 Total . . 161 439,820 23 56,024 174 496,844 Sailing Vessels — Entered {with Cargo), From — United Kingdom Australia Germany Netherlands . . Total Vessels. Tonnage 4 6,013 8 15,044 1 2,648 1 1,647 14 25,352 Sailin VgesseU — Cleared (in Ballast). Canada Chile.. United States 1 1,828 5 10,015 8 10,113 Total 11 21,966 270 SOUTH AMERICA Rehjrn of Shippino of all Nationalities which Entebed and Cleaked IN THE Foreign Trade of the Port of Callao durino the Year 1913. Steam Vessels — Entered. Nationality- British Chilean French German Japanese Mexican Norwegian Peruvian United States Total . . With Cargo. In Ballast. Total. Vessels. 187 Tonnage. Vessels. Tonnage. Vessels. Tonnage. 526,798 27 51,861 214 578,659 112 198,238 — — 112 198,238 8 21,466 — — 8 21,466 88 314,289 — — 88 314,289 12 56,385 — 12 56,385 1 339 1 339 3 7,748 1 56 4 7,804 57 127,450 1 84 58 127,534 3 10,555 5 4,905 8 15,460 470 1,262,929 35 57,245 505 1,320,174 Steam Vessels — Cleared. British Chilean French German Japanese Norwegian Peruvian . . United States Total 151 439,820 23 56,024 174 496,844 104 185,905 — — 104 185,905 6 19,741 — — 6 19,741 75 267,248 3 10,785 78 278,033 11 50,618 — — 11 60,618 3 7,750 1 56 4 7,806 55 125,556 — — 65 125,656 2 7,300 4 3,924 6 11,224 407 1,103,938 31 70,789 438 1,174,727 Sailing Vessels — Entered. British Chilean Danish French German Italian Norwegian Peruvian Russian United States Total . . 1 14 25,352 — — 14 25,352 5 3,151 ; — — 5 3,151 1 2,541 ■ — — 1 2,541 1 1 2,025 — — 1 2,025 1 16 29,902 1 1,612 17 31,514 1 1 2,325 1 — — 1 2,325 10 17,182 1 1 1,127 11 18,309 11 12,546 — 1 — U 12,546 5 8,813 ; — — 5 8,813 36 23,585 1 1 1,509 37 25,094 100 1 127,422 ' 3 4,248 103 131,670 BRITISH INTERESTS Sailing Vessels — Cleared. 271 With Cargo. In Ballast. Total. Nationality. Vessels. Tonnage. Vessels. Tonnage. Vessels. Tonnage. British 11 21,956 11 21,956 Chilean — — 2 1,528 2 1,528 French — — 1 2,065 1 2,065 German 1 1,696 11 19,556 12 21,252 Norwegian — — 10 16,156 10 16,156 Peruvian . . 2 1,122 9 9,709 11 10,831 Russiem — — . 5 8,765 5 8,765 United States — — • 25 17,499 25 17,499 Total . . 3 2,818 74 97,234 77 100,052 CHAPTER XVIII BRITISH INTERESTS IN THE VARIOUS REPUBLICS (continued) British trade with Paraguay — Some questions of competition— Values of the principal articles imported — Countries concerned in the trade — Tables showing nature of goods required — Total imports — British trade with Uruguay — Principal objects exported — An extract from a Consular Report — Sound advice concerning the methods of commercial procedure in Uruguay — A question of agencies — Uruguayan imports — Shipping of the port of Monte Video — British interests in Venezuela — Competition in other countries — Principal classes of goods involved — The British interests in public works — Local regulations — -A field of general industries — Cattle breeding — Circumstances concerning motor cars — Chief imports and exports — Nature of the imports — -Ciudad Bolivar — Imports and shipping of the port. The commercial situation in Paraguay gives ground for considerable hope in the future. In 1913, it must be confessed, the outlook was not very reassuring ; for whereas Great Britain in that year sent some £465,000 worth of its goods to the inland RepubUc, the German exports to that country exceeded this by over £12,000. In 1914 the situation had become even more unsatis- factory ; for the figures here show that, whereas Great Britain exported some £235,000 worth of goods, the German merchandise introduced exceeded this in value by over £40,000, and this notwithstanding the fact that from the end of August the German trade began to be crippled out of existence, as will be proved by the somewhat curious total of £33,333, which was all the Teutonic importation amounted to in 1915. In this latter year Great Britain sent over £155,000 worth of its goods to Paraguay. 273 BRITISH INTERESTS 273 In 1916 the German figures show a complete blank, while those of Great Britain had risen to over £350,000 In this particular case it may be remarked that the United States has not gained so much in the matter of trade as might have been imagined, for whereas in 1913 it had shipped about /io4,ooo worth, the corresponding figures in 1915 did not attain to the half of this, although in 1916 they had risen to a total of some £150,000. Two of the most important articles exported to Paraguay are textiles and hardware. In both of these products there is no reason whatever why Great Britain should not maintain her position in the front rank. Imports of Pkinoipal Aeticles, 1911. Foodstuffs. £ Hardware — continued. £ Argentina. . . 98,819 Argentina. . . 2,848 Germany . . . .05,167 Other countries . . . 3,117 Spain . 2S,475 Austria-Hungary. . . 21,188 Fancy Goods. Italy . 20,530 Germany . . . 31,528 United States . 16,340 France . 24,145 Brazil . 10,663 United Kingdom. . . 16,551 France . 8,895 Italy . 4,399 United Kingdom . 5,806 Argentina . . . 1,726 Uruguay . . 3,019 Spain . 1,425 Portugal . . . 1,647 United States . 1,328 Other countries . . . 9,975 Other countries . . 2,093 Textiles. Wines, etc. United Kingdom. . . 199,833 Germany . . . 90,829 Spain . 26,667 Italy France . 18,293 . 14,286 Italy France . 13,266 . 11,887 Spain Belgium . . United States . 8,327 Germany . . . 3,674 . 4,211 . 1,455 United Kingdom . . Other countries . . . 1,767 . 2,093 Other countries . . . 5,299 Drugs and Chemica Is. Hardware. Germany . . . 16,567 Germany . . . 36,737 France 7,410 United Kingdom. . . 28,927 United States 4,973 United States . 18,597 United Kingdom . . 4,795 Belgium . . . 6,514 Argentina. . . 2,468 Spain . 5,101 Italy . 2,203 France . 4,564 Other countries . . 2,908 18 274 SOUTH AMERICA Hat8. Italy Uruguay . . United Kingdom France Germany . . Other countries Fire-aryns. United States Germany . . United Kingdom. . Spain Other countries Clothing. Argentina. . Spain Germany . . United Kingdom. Italy £ 7,237 3,113 2,676 1,825 1,387 717 5,901 3,489 2,495 2,343 1,127 10,194 5,744 5,345 2,278 2,016 Clothing- Fiance Other countries ontinued. 2,104 104 China and Olaseware. Germany . . United Kingdom. . Other countries . . Free of Duty. United Kingdom Germany . . Argentina. . United States Belgium . . France Uruguay . . Other countries Other articles Unclassified 10,620 1,183 2,546 101,946 91,216 30,677 26,819 9,380 7,291 1,585 2,615 27,141 9,626 Total Impobts. Country. 1911. 1912. 1913. I i £ United Kingdom . 370,040 268,341 464,806 Germany 363,533 311,079 448,785 Argentina . . 154,992 140,622 218,031 France 86,300 75,622 107,419 Italy . j 70,371 63,546 98,959 United States . i 77,905 63,189 97,665 Spain . ' 82,725 66,571 86,005 Belgium 22,086 26,588 37,986 Uruguay 10,227 7,328 12,033 Brazil . 1 11,674 8,699 9,224 Austria-Hungary . 21,863 25,793 17,549 Other countries 23,983 12,742 25,537 Total . . 1,295,699 1,070,120 1,623,999 Per cent. Per cent. Per cent. British share . . . . 1 28 i 25 28-6 Note.— Paper dollars have been converted in these tables at 90 dollars to the £1 and gold dollars at 6 dollars to the £1. BRITISH INTERESTS 275 Total Imports of Prinoipai, Articles, 1911. Textiles . £342,533 Foodstuffs . 280,524 Hardware . 106,405 Fancy goods . . 81,415 Wines and spirits . . 59,354 Drugs and chemicals 40,324 Ready-made clothes 27,785 Other articles 27,141 Hats 16,955 Fire-arms 16,355 Glass and chinaware 14,349 Unclassified . . 9,626 Free of duty . 273,933 Total 1,295,699 Total Imports or Principal Artiolbs. Foodstufis Textiles Hardware . . Wines, spirits, etc. Fancy goods Drugs and chemicals Hats Fire-arms . . Clothing China and glassware Boots and shoes Cattle Free of duty Other articles Unclassified Total . . 19H. 280,524 342,533 106,405 59,354 81,415 40,324 16,955 15,355 27,785 14,349 273,933 27,141 9,626 1,295,699 1912. 1913. i I 242,814 329,431 303,081 452,883 188,612 311,022 58,371 77,788 78,864 115,042 44,585 61,741 15,024 25,571 16,369 13,553 19,856 36,344 17,905 21,076 1 13,928 I 26,885 59,872 24,767 1,070,120 59,622 79,413 1,623,999 ' Included under " Other articles." ' The principal articles imported free of duty in 1913 are stated to have been as follows : — Hardware Fancy goods Drugs . . Clothing £159,672 Glass and china.. .. £6,539 12,753 Cattle 26,885 14,529 Saddlery 7,052 11,739 Electrical goods.. .. 12,381 276 SOUTH AMERICA Imports of Pbincipai, Akticles. Articles and Countries from which Imported. 1911. 1912. 1913. Remarks. £ £ £ Foodstufis Flour, grains, potatoes. United Kingdom 5,806 7,200 10,323 sugar, petroleum, pre- Germany 55,167 42,667 72,954 served fruits, vege- Argentina 98,819 92,974 127,429 tables and fish, butter. France . . 8,895 8,419 11,073 cheese, hams, tea. Italy . . 20,530 13.456 20,997 coffee, cocoa, maca- United States , . 16,340 16,952 18,871 roni, biscuits, sweets. Spain 28,475 21,915 23,745 candles, soap (toilet). Belgium 1 1,457 3,325 oil, olives, condiments. Uruguay 3,019 2,386 4,750 etc. Brazil . . 10,663 8,000 8,207 Austria-Hungary 21,188 22,071 15,905 Portugal 1,647 1 1,979 Netherlands 1 1,044 2,597 Other countries 9,975 4,273 7,276 Textiles . . Prints, greys, whites, United Kingdom 199,833 173,195 268,920 blankets, wooUen and Germany 90,829 82.158 99,165 cotton cashmeres. Argentina 1 2,086 2,578 cloths, sheetings, flan- France . . 14,286 13,355 23,967 nels, silks, fancy dress Italy . . 18,293 17,227 32,077 stufis, linen goods, etc. Spain 8,327 7,511 15,793 United States . . 1,455 , 1 1,665 Belgium 4,211 6,041 6,192 Other countries 5,299 2,508 3,226 Hardware ■ • Tools, wire, ships' fit- United Kingdom 28,927 55,728 129,011 tings, corrugated tin. Germany 36,737 76,329 99,473 household and kitchen Argentina 2,848 6,847 9,974 utensils, etc. France . . 4,564 5,272 4,704 Italy . . 1 2,157 1,417 United States . . 18,597 21,444 43,122 Belgium 6,514 16,910 20,022 Spain . . 5,101 1 1,107 Other countries 3,117 3,925 2,192 United Kingdom 1,767 2,318 3,169 Germany 3,674 2,379 3,103 France . . 11,887 12,567 14,272 Italy . . 13,266 12,685 15,588 Spain 26,667 25,631 37,054 Portugal 1 1,339 1,887 Other countries 2,093 1,452 2,725 Included under " Other coimtries.' BRITISH INTERESTS Impobts of Principal Abtioles — continued. 277 Articles and Countries from which Imported. 1911. 1912. 1913. Remarks. £ £ £ Fancy goods Haberdashery, station- United Kingdom 16,651 12,616 22,824 ery, perfumery, dolls. Germany 31,528 35,605 52,772 ornaments, plated France . . 24,145 17,432 21,317 goods, buttons, arti- Italy 4,399 3,376 5,621 ficial flowers, etc. Spain 1,425 3,867 2,626 Argentina 1,726 4,117 5,372 United States . . 1,328 1 1,079 Other countries 313 1,851 3,431 Drugs and chemi- cals . . Medicines, chemicals. United Kingdom 4,795 9,161 10,725 oils and colours, sur- Germany 15,567 10,142 14,811 gical instruments^ etc. Argentina 2,468 2,941 3,605 France . . 7,410 6,856 12,726 Italy . . 2,203 1,176 2,038 United States . . 4,973 8,753 14,543 Other countries 2,908 5,556 3,293 Hats European styles of hard United Kingdom 2,676 1,676 1,110 and soft felts, straws. Germany 1,387 1,705 2,472 Panamas, tropical hats France . . 1,825 . 1 2,318 and helmets Italy . . 7,237 7,589 17,432 Uruguay 3,113 1,818 1,797 Other coimtries 717 2,236 442 Fire-arms . . Revolvers, shot guns. United Kingdom 2,495 115 2,751 accessories and ammu- Germany 3,489 4,574 4,186 nition France . . , , 1 2,165 _ _ 1 United States . . 5,901 6,276 3,992 Spain . . 2,343 1,463 975 Belgium 1 1,672 1,206 Other countries 1,127 104 443 Clothing . . • • Chiefly underwear (the United Kingdom 2,278 2,760 4,036 import duty on ready- Germany 5,345 7,559 10,446 made clothes is high) Argentina 10,194 ' 4,208 12,988 France . . 2,104 : 2,526 5,318 Italy . . 2,016 1,008 1,375 Spain . . 5,744 1,661 1,291 Other countries 104 134 890 1 Included under " Other countries." 278 SOUTH AMERICA Imports of Pbinoipal Aeticlbs — continued. Articles and Countries 1911. 1912. 1913. Remarks. from which Imported. China and glass- £ £ £ ware — United Kingdom 1,183 1,441 1,327 Germany 10,620 13,431 15,820 France . . 1 1,538 992 Argentina _i 1 1,682 Other countries 2,646 1,495 1,355 Boots and shoes — United Kingdom 2 2 1,303 Germany 2 2 2,211 Argentina 2 2 3,475 United States . . 3 = 4,117 Other countries 2 = 2,822 Cattle — Argentina 2 _2 26,757 Uruguay 2 2 128 Free of duty 273,933 3 > Railway materials, agri- cultural machinery and implements, machinery for industrial purposes and ships, telegraph wire, wire fencing (barbed and plain), windmills, stock cat- tle, naphtha, calcium carbide Other articles 27,141 59,872 59,622 Tobacco, leather, saddlery, furniture, jewellery, electrical fit- tings, musical instru- ments, etc. Unclassified 9,626 24,767 79,413 Entered free by order of the Government Total . . 1,295,699 1,070,120 1,623,999 ' Included under " Other countries." ' Included under " Other articles." ' Included under the several classes of articles to which they belong respectively. The proportion of British trade with Uruguay has continued fairly satisfactory in most respects, and the commercial relations between the two countries have remained close. BRITISH INTERESTS 279 The principal British exports to Uruguay consist of cotton and woollen goods, coal, machinery, hardware, and other articles. Of the three principal competitors. Great Britain has, on the whole, maintained the lead, with Germany second and the United States third. The principal exports of Germany, it may be said, were sugar, textiles, machinery, fancy goods, and other articles, while those of the United States were lumber, mineral oils, agricultural machinery, and paper. Some most useful remarks are contained in the 1912 Consular Report on Uruguay, remarks which hold good to-day, and I will quote them here : " The principal impediment in the way of British firms not already established in the Uruguayan market is the difficulty of finding British agents in Montevideo. " The British firms in Montevideo are in most cases so occupied with their existing business that they have little desire to embark on new agencies, especially if the goods or terms offered are novel to the market. This applies also to Uruguayan firms, with whom there is the further difficulty of dealing in Spanish. Accord- ingly, letters from British firms to traders in Uruguay offering agencies frequently find their way to the waste- paper basket, or meet with an evasive reply, for it is now axiomatic in Montevideo that if a foreign firm has business worth offering, it will send a competent agent to Montevideo to choose an agent. The fact is well known to British exporters to South America, whose commercial travellers now include Montevideo in their South American itinerary. Some, however, have concentrated on the larger market of the neigh- bouring metropoUs of Buenos Aires without seriously considering the possibilities of Uruguay. " Where British agents are unobtainable in Monte^ video, it is better policy to appoint Uruguayans, in preference to any of the nationalities of our com- petitors. 280 SOUTH AMERICA " It would seem hardly necessary to repeat the perennial warning that the metric system is enforced by law in Uruguay, where tradesmen are iined for using any other system, and that correspondence with Uru- guayan firms should be conducted in Spanish, were it not that catalogues and circulars are still sent to Monte- video printed in English, with quotations in British weights and measures." I have quoted the above in full, since all the hints contained therein are undoubtedly of extreme value. Goods exported to Uruguay, it should be said, are in almost every case subject to the imposition of \'er\- high duties, part of the general policy of Uruguay being to rely on the customs house for the payment of many of the national expenses. Impokts of "Ukuouay diteing the Yeabs UI07-10. Country. 1907. 1908. 1909. 1910. Dollars. Dollars. Dollars. DoUars. United Kingdom Il..'-.72,i52 11,726,956 10,622,024 11,882,104 Germany. . 6,079,598 6,22iJ,957 5,799,038 0,841,072 United States 3,4.3!l.44.5 3,323,111 3,702,577 4,343,935 France 3,924,069 3,641,360 3,940,684 3,842,027 Italy 2,898,391 3,007,937 2,900,180 2,943,017 Belgium . . 2,688,520 2,202.162 2,528,096 2,810,827 Argentina 2,563,187 2,469,908 2,723,158 2,772,352 Spain 1,725,198 1,944,316 1,917,810 2,129,103 Brazil 1,743.731 1,834,893 1,967,593 1,994,431 Austria-Hungary . 22, 178 28,328 186,405 348,190 British colonies . . 1 1 45,448 246,508 Netherlands 233,968 130,596 158,355 218,699 Other countries . . 580,278 859,637 452,648 442,346 Total . 37, 47(1, 7)5 ■ No 37,456,161 i specilirti. 36,944,016 40,814,611 BRITISH INTERESTS 281 < >< H H H O s p Q Sh - cDOOOt^O^wcO CO CD CO IQ o lo COIOCDt^iMt-t^CD t »o O t^ r-* ■^ fH OSOCOt^rHCD-HCO OS CO »0 rH O OS i-HrtC0OSlOCD00(N o OS l> -1 OS l> -«*< O(NC0t^(MCDC0(N G IC OS I> lO 00 CO WOSOOCDlOffONGO i-H ^ IM -^ ^ -H --t ^ ^ I> oo ■^ o 00 ■* tH CD ^ "^ CD CQ l> 00 CD oT CO O f-^ 0000 O»00Str-c0l000Q0 coo ■— lOOOCOWCOi— ICD 00 t^ oo O O CO t-OS OOOS 1— ICO CDt-"-HOCD(MCOOO lOO >00 O-^ OS(NOOCOOSOiOI> QOCq I>CD COW lO^lOrJ<00COOS.— I i^tJh" ooci" -^ a^ e'iiXG^n-^<^<-^^ coo oc- ^ cc TticoMOsooocoeo COOS *O00 l>OS lOi-Hl>t-^00Q0^^00 tjT i-H (*q Csf i-h" i-h" r-T ^ CO OS »0 00 OS (N oo M* .-H ^ 00 00 (M CO lO O CO o o o >C OS Jj5 O ,— I r-1 OS t- Tl^ tH IC CO CO 00 CD»OCDiOCOO>— it-Otr-t-CDt> 00(N00I>l>00O"^ r-T C5 a Si'-a^:!:? is a I 03 Tl ^ - o o t2 t£ s *2 ,^ .» o 282 SOUTH AMERICA PbINOIPAI; AbTIOLES of IMPOKTATION into UKtrOUAY DtTBINO THE Yeahs 1907-8. Cotton Ooods. 1907. 1908. Dollars. Dollare. Total .. 4,552,588 4,337,857 United Kingdom . . 2,328,430 2,104,417 Italy . . 775,973 710,473 Germany . . 583,626 634,331 France . . 322,824 301,887 Pbincipai, Classes of Cotton Goods. Articles. Country. 1907. 1908. Dollars. DoUars. A. — Textiles . . Total . . Tons 2,908 2,220,311 2,668 :2,023,478 .. Mts. 4,391,132 482,721 4,286,975 ' 471,809 United King- dom . . Tons 1,901 1,427,517 1,719 ;l,274.514 Mts. 2,690,366 293,791 2,860,109 i 309,198 Italy . . Tons 453 349,731 398 316,246 Mts. 811,455 85,270 582,972 64,596 ' Germany Tons 161 135,218 169 140,832 ,.,; Mts. 255,356 41,130 262,157 38,257 B.— Flannel .. Total . . Tons United King- 351 316,288 363 326,338 dom . . Tons 137 122,880 129 116,299 Italy . . „ 90 80,824 94 84,620 C. — Stockings . Total . . Doz. 257,601 225,445 302,680 280,468 Germany „ 149,869 125,110 186,837 172,594 France. . „ 27,003 26,164 26,018 25,604 United King- 1 dom . . Doz. 16,087 16,068 13,792 1 14,382 1 D. — Laces and Total . . Mts. (1,722,434 140,625 5,743,505 i 112,619 embroidery United King- dom . . Mts. 4,747,588 98,725 3,918,778 79,310 Germany „ 838,959 23,099 949,608 16,752 E. — Sewing Total . . Doz. 914,437 163,328 686,251 95,629 thread in reels United King- dom . . Doz. 786,164 131,837 682,323 76,836 France.. „ 111,078 26,923 77,467 15,089 BRITISH INTERESTS 283 Return of Shipping of all Nationalities which Entered and Cleared IN THE FOREIQN TrADE OF THE PORT OF MONTEVIDEO DURING THE Year 1911. Steam Vessels — Entered. With Cargo. In Ballast. TotaL Nationality. Vessels. \ Tonnage. Vessels. Tonnage. Vessels. Tonnage. Briti3h 1,245 3,754,464 27 35,994 1,272 3,790,458 German 468 1,627,925 2 2,384 470 1,630,309 Italian 286 960,549 — — 286 960,549 French 192 622,044 — — 192 622,044 Netherlands 86 276,692 — — 86 276,692 Spanish 64 200,443 — — 64 200,443 Austro-Hungarian . . 51 162,166 — — 51 162,165 Norwegian . . 37 87,433 7 376 44 87,809 Argentine . . 79 64,267 — — 79 64,267 Brazilian 74 50,072 — — 74 1 50,072 Uruguayein . . 24 38,768 — — 24 38,768 Other nationalities . : 57 136,165 18 9,045 75 1 145,210 1 Total . . 2,663 7,980,987 54 47,799 2,717 8,028,786 British German Italian French Netherlands Spanish Austro-Hungarian Norwegian Argentine . . Brazilian . . Uruguayan . . Other nationalities Total . . Steam Vessels — Oleared 1,146 3,480,882 109 239,800 1,255 468 1,622,552 2 2,384 470 284 957,359 o 5,014 286 191 616,563 — — 191 85 274,568 1 1 1,631 86 62 194,824 1 3,100 63 50 156,868 1 2,952 51 35 81,905 12 1 8,598 47 76 61,000 — 1 — 76 74 52,399 — I — 74 25 39,058 — 1 — 25 68 144,353 7 1,115 75 2,564 7,682,331 135 i 264,594 2,699 3,720,682 1,624,936 962,373 616,563 276,199 197,924 159,820 90,503 61,000 52,399 39,058 145,468 ■7,946,925 Sailing Vessels — Entered. British 32 35,355 4 2,133 36 37,488 Italian . ' 63 69,125 — — 63 69,125 Norwegian . . . ' 60 63,152 2 2,163 ' 62 65,135 French 4 6,433 1 698 ; 5 7,131 German - , 3 1,997 — — 3 1,997 Other nationalities 18 14,533 — — 18 14,533 Total . . . ' 180 190,595 7 4,994 i 187 195,589 284 SOUTH AMERICA Sailing Vessels — Cleared. NationaUty. With Cargo. In BaUast. Total. Vessels. Tonnage. Vessels. Tonnage. Vessels. Tonnage. British Italian Norwegian . . French German Other nationalities Total . . 9 17 :i7 2 2 7 6,698 47,041 29,099 2,641 861 2,964 24 13 2 7 25,588 18,204 31,221 2,786 7,425 33 60 59 4 2 14 32,286 65,245 60,320 6,427 861 10,389 104 89,304 68 85,224 172 174,628 Note. — Coasting vessels are not included in these tables. By far the most important articles which Great Britain exports to Venezuela are cotton goods and thread. Indeed, these articles have comprised all but 20 per cent, of the total amount of the general goods sent from the United Kingdom to Venezuela. The remainder is made up of woollen and hessian stuffs, spirits, liqueurs, coal, and preserved foods. The principal articles exported from the United States to Venezuela are machinery and hardware. The other main features, placed in the order of their impor- tance, are flour, cottons, drugs and medicines, preserved foods, and kerosene. The chief exports from German}/ have been cottons, machinery, hardware, ricf, preserved foods, untrimmed hats and hat materials, drugs and medicines, glass and porcelain, and paper. In the years preceding 1914, rice came almost exclusively from Germany and Holland. This was brought for the most part in large German sailing vessels, which also caiTied out coal, cement, earthenware, and other articles. The principal British interests in Venezuela are in the railways, of which four are British-owned, oil com- panies, mines, the meat-freezing industry, cotton-mills. BRITISH INTERESTS 285 and the exploitation of copra and coco-nut oil. There are Canadian companies interested in the electric lighting and iron-ore enterprises. In Venezuela the United States enjoys important geographical advantages in the matter of trade, and it is not surprising on this account that the great Republic of the North should head the list of the exports to the Southern country. British exports rank second in degree of importance, Germany coming third in this respect. It may not be out of place to introduce a hint con- cerning shipping here. When entering into commercial relations with the South American Republics, more especially those of the north, where the regulations are apt to be more varied and confusing than in the south, it is as weU to find out if there should be any local laws affecting the port to which it is proposed to ship. Thus, it will frequently be found that in countries such as Venezuela, certain ports are Ucensed as ports of entry only, while others are permitted merely as ports of exportation. There are frequently additional regula- tions which give the preference to local vessels against those engaged in foreign trade. There are a number of places, for instance, at which the local vessels are permitted both to load and unload, but which are closed to ocean-going steamers saihng under a foreign flag. The field of general industries is continually widen- ing in Venezuela. One of the new industries in this Republic is that of freezing cattle. Notwithstanding the strong United States interests in this trade, the enterprise was started by the British. The difficulty with which this industry has had to contend up to the present has been the obtaining of beasts suitable for freezing. There is no doubt, indeed, that a large amount of pedigree blood will have to be imported into the Vene- zuelan Llanos before animals of a suitable weight will be met with in remunerative quantities. The com- 286 SOUTH AMERICA parative lack of these has been responsible for the low price offered in Great Britain for a comparatively recent pre-war shipment of meat, no more than two- pence a pound having been bid for this ! The con- signment, I beheve, was ultimately sent to Italy. Notwithstanding the somewhat discouraging start that this enterprise has met with, there seems no doubt that any venture of the kind should meet with ultimate success, for that the pastoral wealth of the Llanos must be adequately tapped at some time or other is certain. British interests in Venezuela, too, have recently been devoted to the petroleum industry in the neigh- bourhood of Lake Maracaibo. Operations here do not seem to have advanced far beyond the experimental stage. It is needless to point out, moreover, that there is a considerable element of speciilation in- volved. In any case the possibilities are great, and, as a matter of fact, are by no means confined to the neighbourhood of Lake Maracaibo, the eastern States and the banks of the Orinoco promising well in this respect. Until quite recently the condition of the average Venezuelan road made traffic by motor-car out of the question. This state of affairs is now beginning to be altered, more especially in the neighbourhoods of Caracas and La Guaira. The cart-road which formerly consti- tuted the sole highway between these two centres has now been improved out of all knowledge, and, being now widened and provided with a macadamized surface, as well as provided wdth proper bridges and other neces- sities of the kind, it is in a position to deal with any traffic which can reasonably be offered it. As a result of this a number of American automobiles have already been imported. These are of a Ught and inexpensive variety, well adapted to cope not only with the road between Caracas and La Guaira, but also with those other highways which are now being extended in other parts of the Repubhc, some of which are being BRITISH INTERESTS 287 excellently constructed, and serve admirably, consider- ing the natural difficulties which have to be overcome, while others are less meritorious. It should be noted that cheapness is an indispensable attribute of the car required in Venezuela at the present time, this Republic not possessing that abundance of spare cash which is the salient feature of some of the other South American States. As regards the question of cheapness, the British manufacturers do not yet seem to be in a position to compete with the Americans, the heavier type of British car naturally costing more than the other. I believe that not a single British car was imported into Venezuela until a year or two ago. Whether it wiU be worth the British maker's while to specialize after the war in those light and tough types of car which are now meeting with so great a demand in the vast new stretches of the world that are being opened up for the first time to this kind of traffic remains to be seen. It is clear, in any case, that the splendidly appointed vehicle of which the best British makers are so justly proud is of too delicate and intricate a mechan- ism to stand the jolts and shaking with which it would have to contend in these enterprising, but rough and ready, new highways. Without attempting to enter into any of the technical considerations of the case, the matter is certainly one which must be weU worth going into very seriously, for the extent of this Ught motor traffic in the new lands promises to be enormous. Total Imports and Expobts or Venezttbla dumnq the Five Years 1912-1916. Year. Imports. Exports. 1912 .. .. 106,677,096 133,323,961 1913 .. .. 101,955,734 149,101,191 1914 . . .. 88,110,376 136,392,868 1915 .. . . 59,000,759 103,625,692 1916 .. . . 88,667,963 124,843,663 288 SOUTH AMERICA Total Imports of Pbincipal Articles into DaBIKG THE YeaK ENDING JUNE 30, Cotton goods Hardware — General machinery Ironware — Sundries For building purposes Hardware — Railway materials Automobiles, motors, and aecessories Agricultiiral machinery . . Thread, cords, and twine . . Hardware — Tools and ordinary instruments Black iron . . Ironware for household purposes Cutlery Venezuela 1914. £701,941 195,851 89,064 82,145 79,990 68,227 56,995 56,212 26,442 26,376 23,029 16,350 Return showing the Value of Imports at Ciudad Bolivar during the Years 1913-14. 1913. 1914. Remarks. From— £ £ United States 151,640 104,180 Direct United Kingdom . . 81,899 48,481 ,, Germany 75,894 35,892 ,, Netherlands 34,526 18,432 Direct and tran- sit from Ger- many Trinidad 21,287 11,071 Direct France 16,250 9,559 >» Italy 11,946 5,555 Spain 11,980 4,024 „ Belgium 2,141 3,990 British Guiana — 1,099 Total . . 407,563 242,283 1 1 This total includes £23,644 gold specie from the United States and Demerara. BRITISH INTERESTS 289 Rkttjen showing the Distribution or the Pbinoipal Articles OF Impobt among the Theee Principai. Supplying Countries during the months january to june inclusive of the Year 1914. Articles. United Kingdom. United States. Germany. £ £ £ Rice 802 336 3,400 Butter 44 1,513 651 Flour — 6,881 — Lard — 6,197 — Tinned and preserved provisions 389 2,271 371 Biscuits 197 749 195 Beer 190 — 1,011 Other alcoholic beverages 574 3 696 Cotton goods . . 16,152 1,333 2,890 Linen goods 623 — 119 WooUen goods . . 881 152 138 Hessians 1,508 — 164 Sewing thread . . 1,116 — 286 Cordage 104 1,769 195 Leather manufactures . . 89 794 28 China, glass, and pottery 98 151 2,859 Paper 13 16 574 Machinery 1,268 3,717 766 Hardware 1,372 481 1,778 Guns 190 645 378 Motor-cars and accessories — 1,595 — Agricultural implements and ma- chinery 210 851 344 Barbed wire 1,966 73 Other iron manufactures 892 1,278 443 Kerosene and petrol . . — 4,545 — Cyanide . . 1,185 19 290 SOUTH AMERICA Return or Shipping op all Nationalities which Entbbbd and Cleared m THE Foreign Trade op the Port op Citjdad Boltvab (Orinoco Bivbr) during the Year 1914. Steam Vessels — Entered. Nationality. With Cargo. In Ballast. Total. Vessels. I Tonnage. Vessels. | Tonnage. Vessels. Tonnage. British Venezuelan Norwegian . . 5 52 2 2,155 10,694 1,691 7 3,409 5 62 9 2,155 10,694 6,100 British Venezuelan Norwegian . . Steam Vessels — Cleared. 47 7 2,586 10,029 3,409 4 2 619 1,691 6 51 j 9 I 2,586 10,648 6,100 Sailing Vessels — Entered (with Cargo). Venezuelan . . Colombian . . German Vessels. 3 Tonnage 41 1 5 1 474 Sailing Vessels — Cleared. With Cargo. In Ballast. Total. Vessels. Tonnage. I Vessels. 1 1 1 1 Tonnage. Vessels Tonnage. Venezuelan Colombian . . Gennan 2 1 10 6 31 474 3 1 1 41 6 ] 474 CHAPTER XIX BRITISH INTERESTS IN THE VARIOUS REPUBLICS {continued) British interests in Bolivia — Proportion of British trade to the whole — Unsatisfactory situation — Possibilities of increase — Questions of competition — Opinions of British Consuls — -Technical notes and hints— Commercial travellers — Objects of which the country has chief need — Financial promise of Bolivia — Transport — Tastes of the inhabitants — The mining industry — Demands that will follow the financial prosperity of the country — ^Bolivian im- portations—Tables showing the nature of these — British interests in Colombia — -Railways — Chief British exports — Importations of the various ports and frontier towns — Values of the goods im- ported — Proportions of the various countries concerned — British trade with Ecuador — Favourable position of the United States — Conditions of life in the country — Some social and financial aspects — British companies — -Values of the Venezuelan imports, with the countries of origin — Comparative Ust of imports — Trade of the various Ecuadorian ports — Return of British shipping at the port of Guayaquil. Bolivia is one of these countries where the decrease ia British commerce has been most marked. It would seem that this undesirable condition of affairs has been due, not to any particular want of judgment but to a lack of enterprise. Between igio and 1915 the pro- portion of British trade, compared with the whole, fell from 33 per cent, to 18 per cent. It does not require any very elaborate calculation to estimate in how long a time the commerce, if its decadence proceeded at this rate, would be brought to utter extinction. A very curious coincidence is that during this period the proportion of German trade rose to precisely the same extent, that is to say, from 18 per cent, to 33 per 291 292 SOUTH AMERICA cent. This situation is the more lamentable as without a doubt Bolivia represents one of the coming Republics of South America, and the opportunities offered here in the near future are almost incalculable. There is no doubt, moreover, that the awakening in Bolivia which is now in the act of occurring will proceed with extraordinary rapidity when the process is in full swing. One of the main reasons for this diminished proportion of British commerce in the inland Republic is the want of commercial houses in the principal towns. The Germans would seem to have taken the lead in this respect, and the numbers of their importing houses now established in these places are very considerable. I have pointed out in another place how these firms are endeavouring to maintain their commercial con- nections by introducing, wherever they can manage to get hold of the goods, British manufactures. It was impossible, as a matter of fact, for them to avoid doing this altogether in the past, although they naturally enough made every effort to substitute German for British goods. It is this pohcy, of course, that has done so much to destroy British trade in BoUvia, and which, if it had been permitted to continue unchecked, wotild un- doubtedly have been successful in its aims. Wherever it is possible I desire in this work to quote the opinions of the British Consuls on the spot, and the Report on BoHvia for the year 1913 by Mr. Vice- Consul J- R. Murray contains much that is worth reading. He says, for instance, that — " BoUvia is bound to take a larger share, in the future, in the ever-increasing prosperity of South America, and it behoves British manufacturers and exporters to pay greater attention to this country, not as a single unit, but as a part of that greater contiguous region of South America in which trade conditions and the needs of the people show a great similarity. After the opening of the Panama Canal, competition for trade along the BRITISH INTERESTS 293 west of South America will become much keener. Already the United States is spreading in these parts an elaborate commercial propaganda, and is paying an ever-increasing attention to commercial organization. In addition, the opening of the great waterway' will destroy much of the advantage of relative position which has hitherto been enjoyed by European countries. British traders should, therefore, now take such energetic steps as may be possible to ensure a retention of the strong hold they have in these markets. That British trade is at present susceptible of considerable increase is evidenced by the statement recently made by the representative of a large importing house established in La Paz, to the effect that this firm had, within two years, increased their purchases of goods from the United Kingdom for the Bolivian market from the rate of £5,000 to ;{40,ooo per annum. In some directions, however, efforts to secure trade have been relaxed. Every year fewer British travellers come to Bolivia. It may be that firms are diffident about incurring expense in a market where success seems problematical. It may be remarked that good orders are often to be obtained by merchants' travellers handling several classes of goods and repre- senting a number of firms. And it should always be worth the while of the firms which periodically send representatives to the neighbouring South American Republics to send them to Bohvia as well. The expense of such a trip, say, from Chile or Peru, is not high, and should be amply repaid, if not immediately, at least in the future, when the resources of the country are more developed. In the meantime, valuable expert know- ledge of an additional market would be obtained, besides such trade as there is to be had. To make an effective attack on the vast trade, present and future, of South America, it seems probable that some combina- tion among British firms, or commercial bodies, will eventualh' be made, and it would not appear impossible, in that event, for such a combination to establish some 294 SOUTH AMERICA central institution, say, in Colon or Panama, which will very likely be made free ports, where large stocks of samples could be held, and from which place experi- enced Spanish-speaking travellers could be sent to Bolivia, as well as to the neighbouring Republics. A necessary adjunct of such a scheme would be a hberal issue of thoroughly comprehensive general catalogues in the Spanish language." As regards BoUvia, the British Consuls would seem fairly unanimous in their verdicts concerning the posi- tion of trade. Thus, Mr. Consul Moore at Sucre reports ; " Since the larger part of Bolivian import trade is in the hands of German firms, we need not be surprised to find that many of the goods coming from that country are re-exports of articles manufactured in the United Kingdom, France, Belgium, or Austria-Hungary. Whether it makes any difference or not to British manu- facturers if their products are exported direct to the consumer or through the German agents may be a debat- able question. I certainly consider that the latter, besides making his commission and favouring transport in German ships, must always incline to the substitution of German manufactures whenever this is possible, imitating as near as he can the special lines most in demand down to trade-marks and tickets, to the detri- ment of those from other countries. " The following items are mostly re-exports from Hamburg wherein the British trader might have a greater share : M'ines and spirits, which include French wines, cognacs, and other alcohohc liquors, as well as British whisky and gin ; cement, including British and Belgian ; candles, mostly Belgian ; cotton textiles, almost exclusively British ; and men's hats (both straw and felt), which are more French or Italian than British or German. " In ladies' and children's boots and shoes, laces, embroidery and trimmings, silk textiles, ladies' apparel and drapery, the articles wholly or partially maau- BRITISH INTERESTS 295 factured in Germany are fast superseding those of French make. " British manufactures would never have lost in some lines if they were adequately represented by British firms established in this country, if more commercial travellers and agents were sent out, or if the goods were brought more to the notice of the customer by means of numerous samples and catalogues and price-Usts printed in Spanish. The following are the chief lines : Drugs and patent medicines, boots and shoes, wool textiles, crockery, glassware, iron and steel manu- factures, domestic articles and contrivances, machines and motors, various classes of tools and implements, and arms and ammunition." From Cochabamba comes a similar plea for greater enterprise, Mr. Vice-Consul Barber having the following to say : " Commerce.— K prosperous business is done in this department, most of the commerce being in the hands of German firms, who import many of their goods from the United Kingdom, chiefly through Hamburg com- mission agents, and also from the United States. British trade might be considerably developed in this country if British goods were brought more to the notice of the consumers. Goods ought to be continu- ally offered to many respectable firms established here. German trade is more active ; commercial travellers representing German firms frequently travel through the department offering their goods. Many articles which are manufactured in the United Kingdom, such as boots, shoes, felt and straw hats, caps, ties, collars, etc., and many others superior in quality to those of the Continent, might be imported from the United Kingdom and compete with those from Germany, France, and Italy. As no statistics are obtainable, it is difiicult to say what amount of goods are imported in this department. The approximate value is from ;f40o,ooo to £500,000. 296 SOUTH AMERICA " From the United Kingdom come boots and shoes, candles, stationery, soap, tinned provisions, cotton goods, shirting, hayetas, ironware, whisky, carpets, and beds. " From Germany, machinery for mines, river steamers for the Beni and Mamore district, alcohol, arms and ammunition, glass and porcelain, sewing machines, boots, shoes, hats, cotton and woollen goods, pianos, carriages, toys, sugar, underwear, ladies' and children's clothes, tinned provisions, hardware, jewellery, type- writers, haberdashery, and manufactures of iron. " From France, wines, champagne, brandy, Hqueurs, perfumery, scientific instruments, boots, shoes, ladies' apparel, and jewellery. " From the United States, paraffin, bank notes, patent medicines, typewriters, carriages, machinery, sewing machines, pianos, tocuyos, grey cloth, arms and ammunition, soaps, and glassware. " From Italy, hats, cotton goods, and flannel. " The firms established in Cochabamba do mostly a wholesale business. Goods take about four or five months to reach Cochabamba from Europe. Valuable articles and goods, such as boots and shoes, perfumery, stationery, silk goods, and all articles packed in cases, ought to be insured against robbery, as these goods are much more liable to be stolen at the ports than bales. It is therefore advisable to have goods packed in bales where possible." As a final quotation concerning this matter, I will take a couple of paragraphs from Mr. Vice-Consul Mason's Report from Uyuni ; " There has been a good deal of German activity in the department during the year, especially in dry and soft goods. The terms for payment given by the German firms are infinitely better than those given by other Euro- pean or American firms, which are usually acceptance of draft at 60 or 90 days, against documents, whereas the German terms are usually six months from date of BRITISH INTERESTS 297 shipment, or four months from the receipt of the goods in Bolivia. " These latter terms undoubtedly attract the customer, and while I do not recommend at the present moment any particular pushing of goods in this department, or the alteration of terms of payment, still, later on, when things are working more smoothly, it might suit British exporters to consider the advisability of working on the same terms as their German competitors, and to take into consideration the length of time incurred from the acceptance of a draft to the time of receipt of the goods here, as a rule a matter of from six weeks to two months." When commerce with Bolivia is renewed to its full extent, the eyes of the British manufacturers and mer- chants will at all events have been fully opened. Should they permit them to be closed again, the result must react not only on their own heads, but upon those of their fellow-countrymen. We may now turn to some rather more general remarks concerning this interesting Republic. As a commercial field, Bolivia has an especial interest at the present moment, since the development of this country cannot fail to be extraordinarily rapid at the conclusion of the war. Until comparatively recent years, Bolivia was un- doubtedly, from a commercial point of view, one of the most backward of the South American nations. This situation, it must be said, was due to the extra- ordinarily difficult country, such as the mountainous regions of the inland Repubhc offer, rather than to want of enterprise on the part of the Bolivians themselves. It was. of course, this backward condition itself that pointed out Bohvia as a favourable country for enter- prise, and although an astonishing number of the most " knowing " ones in the whole continent of South America have decided upon Bolivia as a new field for their efforts, were the science of transport in the same 298 SOUTH AMERICA condition as it was a quarter of a century ago, the rapid development of Bolivia could not have been looked forward to with any certainty. But the numerous improvements and inventions in railways, ropeways, and other methods of the kind, make the Bolivian mountains far less formidable to tackle now than was once the case. At the present moment, although the value of Bolivian imports attains to the total of about four millions of pounds, this figure must not be taken as a fair estimate for the future, for, with the actual gain of those new sources of wealth which are now practically at their doors, the demands of the inhabitants of the RepubUc, at present modest, cannot fail to increase largely. It is perhaps scarcely necessary to explain that at the present time Bolivia, to all intents and pur- poses, is practically without its own manufactures. The imports into the country, therefore, give an un- usually clear indication in its case of the nature of the goods employed. It will be seen at once from this how simple are the tastes of the inhabitants. Thus, whereas the imports of ironmongery, iron and steel manufactures, and mining machinery approached the value of two million pounds sterling, its women's clothing and drapery failed to attain to the amount of £160,000, while the men's clothing only just exceeded the value of £22,000. This same proportion is observable in all directions. In the same two years, for instance, the total amount of mineral waters imported was less than £4,000, while the value of the typewriters introduced failed to reach £2,000. The general imports, in fact, into Bohvia show a country the tastes of the great majority of whose inhabitants have remained quite primitive up to the present time. The development which may be expected should be in all directions. The increase in the mining industry, needless to say, must bring into being a vastly greater BRITISH INTERESTS 299 demand for mining materials of all kinds. The agri- cultural and pastoral areas which are now beginning to be developed must very soon bring about a marked revolution in the introduction of agricultural machinery, the value of which, it may be said, did not amount to £10,000 as regards the combined imports of 1912 and 1913. It is safe to conclude that the prosperity of the country wni produce among its other features a marked demand for such instruments as gramophones and such objects as women's and men's clothes, to say nothing of motor-cars, although it must be remarked concerning these latter that only certain of the Bolivian districts permit of the free use of the automobile ; for not only are the great majority of the country roads of too mountainous a nature for the employment of the car, but the condition of many of the urban streets presents difficulties which in their way are as great as those of the mountain sides. Table showing Total Impobts into Bolivia dukino the Year 1912 AND THE First Six Months of 1913. Articles. 1912. 1913. Ironmongery . £513,221 £202,534 Iron and steel, manufac- tiires of . . . 420,873 177,793 Cotton . 346,342 143,831 Machinery . . . 291,970 131,463 Gold coin . . 22,022 260,120 Sugar . 260,316 101,715 Floiir 176,277 124,041 Wool . 141,874 68,713 Coal . 138,717 68,875 Arms and ammunition . 142,323 13,466 Spirits . 132,489 14,663 Horses . 99,235 111,678 Mining machinery 91,904 48,729 Hats (men's) 81,872 25,325 Gunpowder . 93,057 45,849 Wine . 78,273 39,675 Candles . 75,315 52,631 Millinery . 74,670 32,875 300 SOUTH AMERICA ToTAx Imports into Bolivia — continued. Articles. Iron and steel Electrical material . . Cattle Drapery, general . . Railway material . . Paper and cardboard, manu- factures of, including stationery Cinematograph and photo- 1912. 1913. £71,662 £16,665 69,868 16,043 62,222 33,147 61,278 33,147 55,983 60,046 58,129 36,597 graphic material 61,634 18,861 Timber 51,797 23,514 Dresses, women's . . 50,851 23,111 Furniture . . 42,466 23.020 Tools 40,720 27,264 Rice 40,008 14,235 Boots and shoes 39,640 12,735 Drugs and patent medicine 3 38,482 20,402 Furs and skins 34,069 10,792 Clothing, ^vomen's 31,570 20,678 Cement 30,497 4,945 Fish 25,713 14,513 Vehicles (carts and car riages) 21,956 11.489 Jewellery 21,738 4,287 „ imitation 21,444 7,434 Fruit 20,696 9,337 Paint and varnish . . 20,484 11,582 Tiles, bricks, etc. . . 20,196 121 Soap . . 19,992 10,115 Locomotives . . 13,816 18,566 Musical instruments anc 1 accessories 12,383 5,993 Mineral oils and their deri vatives 17,760 6,887 Beer 16,485 8,463 Other foodstuffs . , 17,62U 16,446 Zinc 14.552 16,368 Alimentary jjasles 14,934 1,066 Cutlery 14,988 7,128 Tools, artisans' 14,675 7,591 Lard and other animal fatf 14,651 14,050 Books, printed and plain . . 14,558 7,77s Thread, cotton 14,500 3,891 Iron and steol 5,02r, 13,857 Milk, condensed 13,795 7,262 Clothing, men's 13,290 9,756 Spices 15,047 9,241 Porcelain and earthenwart 11,031 3,871 BRITISH INTERESTS 301 Total Imports into Bolivia — continued. ArUcles. 1912. 1913. Copper and bronze, manu factures of £11,032 £4,039 Glass, crystal 10,893 7,504 Perfumery . . 10,330 6,072 Maize and maize flour 10,282 719 Vegetables, preserved 9,282 2,036 Scientific instruments 9,671 3,331 Jute . . 9,986 180 Objets d'art 8,441 2,814 Leather goods 2,738 8,324 Tools, agricultural 8,183 8,988 Pens . . 8,047 2,678 Cocoa 7,792 3,476 Cattle food in various forms 7.366 3,733 Barley 7,170 3,481 Glass, window 7,680 3,224 „ other 6,758 966 Paper for walls 6,800 1,546 Worsted thread 6,824 3,853 Zinc, manufactures of 6,271 616 Tea 6,194 4,764 Watches and clocks 5,694 2,731 Silk 5,652 1,714 „ and cotton 5,351 3,185 Machinery, agricultural . 5,459 4,505 Mirrors 5,296 2,285 Coffee 5,347 4,092 Sheep 5,224 3,561 Linen — 4,946 Oil .. 3,886 4,796 „ olive 4,375 1,455 Salt . . 4,121 2,415 Vegetables, fresh . . 4,252 821 Machines, sevring . . 4,145 4,359 Rubber and caoutchouc manufactures of 4,557 1,868 Butter 3,905 2,435 Unclassified articles of ani mal origin 3,88e 1,666 Wool, unclassified . . 3,560 567 „ and silk 3,262 965 Miners' tools 2,875 3,567 Flax 3,012 568 Cotton and silk textiles 2,704 1,063 Mineral waters 2,544 1,195 Wool textiles 2,531 1,234 Wheat , 2,326 765 302 SOUTH AMERICA Total Imports into Bolivia — continued. Articles. 1912. 1913. Typewriters £2,203 £195 Cereals, other than wheat. etc. 2,077 608 Vegetable gums and waxes 2,102 1,803 Tin, manufactures of 1,197 714 Silk thread 1,558 851 Marble, cement, and atone, manufactures of 2,250 1,386 Rope and string 2,519 2,168 Cigars and cigarettes 1,888 1,160 Animals, other than horses and cattle 1,821 592 Hops 1,764 1,615 Pottery 966 1,744 Lead.. 1,178 — Textiles, other than cotton, silk, and wool . . 1,682 261 Gloves 1,243 572 Cotton, raw 1,057 40 Motor-cycles 1,068 13 Oats 1,062 145 Unclassified articles of vege- table origin 997 715 Refining and distilling machinery 993 2,057 In Colombia the principal direct British interest is that of the railways, and it is estimated that the British- owned lines comprise about 6o per cent, of the total railways of the Republic. Beyond this there is a con- siderable amount of capital invested in the general industries of the country. Among the chief British exports to Colombia are textiles, sugar and coffee machinery, agricultural imple- ments, and cotton. The trade in mining machinery would seem to be shared by Great Britain and the United States. The former country, too, suppUes the railway material for its own lines, and, beyond this, a certain quantity for the remaining lines. The United States competition, however, is beginning to be felt in this. BRITISH INTERESTS 303 A certain amount of hardware is sent from Great Britain, although Germany in the past has had the greatest share of this trade. It appears that the British goods are of too high a grade for this market, where the high duties that prevail and the poverty of the average person entail a demand for the very cheapest kind of article. Import AUD Export Trade during the Years 1911-12 or the Different Ports and Frontier Towns of Colombia. Imports. 1911. 1912. Barranqvulla . £1,922,711 £2,489,106 Cartagena . . 867,161 1,016,861 Buenaventura 370,707 767,954 Tumaoo . 210,499 234,275 Cucuta 138,596 153,694 Santa Marta 75,750 88,807 Ipiales 11,519 13,941 Biohacha . . 16,794 13,738 Arauca 4,369 8,884 Orucu^ Exj 3,666 oorts. 5,664 Barranquilla . 1,648,898 2,446,322 Cartagena . . . 1,185,432 1,333,032 Riohacha . . 46,892 972,3021 Cucuta 417,531 598,584 Santa Marta 460,645 490,726 Tumaoo 314,668 283,431 Buenaventura . 356,148 268,593 Arauca 18,569 24,220 Ipiales 14,104 13,593 Orooue 12,292 13,546 • Includes gold and silver to the value o£ £946,666 exported, without indication of port of shipment, through the registered post. 304 SOUTH AMERICA Return showing Weight and Value of Expobts during 1911-12, AND ARRANGED ACCORDING TO VaXUE. THE Years 1911. 1912. Kilos. Dollars.' Kilos. Dollars.' Vegetable products . . 180,789,664 14,375,300 180,855,648 20,792,418 Minerals 1,737,223 4,.507,761 1,389,442 7,769,387 Animal products 5,050,452 1,960,409 6,21.5,576 2,258,701 Manufactures . . 2,698,362 1,347,393 543,763 1,210,678 Living animals 166,438 92,852 259,071 150,606 Miscellaneous products 16,318 7,445 340,428 39,954 Money . . 418 84,735 — — Total . . 190,458,875 22,375,899 189,603,928 32,221,746 Equivalent in sterling — £4,475,180 — £6,444,349 At 5 dollars gold to the £1. Return showing Value and Weight of Imports during the Year 1911, and arranged according to Vaxue. Kilos. Dollars. Textiles 9,504 495 8,025,856 Foodstuffs 34,745,274 2,191,009 Metals 13,028,103 2,004,081 Drugs and medicines 3,694,464 762,208 Locomotion . . 7,576.559 726,048 Arts 3,148,380 702,856 Wines, spirits, etc. 4,296,591 628,595 Ceramics and stone 12,732,159 457,381 Paper and carton 1.997,718 453,701 Light and combustibles 15.076,338 371,447 Agriculture and mines 1,844,470 323,074 Hides, skins, and manii- factures of . . 128,581 310,440 Lumber, etc. . . 5.396,424 226,372 Oils and greases 698,810 106,818 Varnishes, colours, etc. 506,794 104,345 Electricity 356,673 100,089 Perfumery and soap . . 517,137 97,388 Musical instruments . . 90,524 .55,767 Rubber and celluloid 53,631 84,504 Horn and shell 47,343 53,601 Arms, munitions, and ac- cessories 32,415 48,991 Explosives 106,735 38,419 Living animals 67,110 7,179 Miscellaneous 463,182 228,781 Total .. 116,087,810 18,108,850 Equivalent in eterling . £3,621,770 BRITISH INTERESTS 305 Rettjbn showing Value and Weight of Imports DtnaiNG the! YeAB 1912, AND ABRANQED ACOOBDING TO VALUE. KUos. DoUars. Textiles 12,878,921 10,547,134 FoodstuSs 44,256,723 3,054,952 Metals 16,782,033 2,916,924 Locomotion . . 6,675,637 1,031,711 Drugs and medicines 4,245,911 838,348 Wines and spirits, etc. 5,666,696 835,772 Arts . . . . 1,842,825 620,251 Light and combustibles 17,310,374 564,063 Ceramics and stone . . 13,481,056 503,579 Paper and carton 3,011,695 477,522 Skins, hides, and manufactures of . 225,841 459,606 Agriculture and mines 1,815,983 381,587 Wood, and manufactures of 3,064,456 317,401 Electrical 599,051 175,638 Oils and greases 1,164,251 171,733 Perfixmery and soap 769,499 152,169 Varnish, colours, and dyes . . 582,054 125,862 Rubber, celluloid, and guttaperch i 72,651 102,358 Explosives 287,660 94,116 Shell, horn, bone, etc. 43,473 75,600 Musical instruments . . 127,587 69,622 Arms, munitions, and accessories . 36,796 57,438 Living animals 123,427 26,016 Miscellaneous . . 754,958 365,209 Total 135,819,357 23,964,611 Equivalent in sterling . . — £4,792,923 20 306 SOUTH AMERICA o o o :- 5 I I I I I •c c "3 a, CO I I I I O ■X a O S o O O •as Day •Si ■a'S ^1 So r-H 00 ■* (N CO o (N o o tQ « CO o •o o t> o >o » o i> 00 ■o o CO a IQ lO r^ 00 00 o « CO 00 on ■* ■* r- or Til to JTjl w o> IN T»< ff< - W CO o l-H " « r- a> 00 o IM to o CO ■* l—l O 00 eq PH 00 (N oo 00 T* T* ■* on CO Cvl cn ■* o to « IN ■o r* o >o c^ l> ■* ■* O CO Qo "-H CO (M CO ■* rH O J " IN o Sin CO l—l IN 5'=' 00 «o OlM I-H » P5 ■5 i -s -I o » a o o a o o o ; I 1 S 3 to r ■^, n Tl d ti •n 'S. CD C3 y T3 1 l4 ■a ^ 6 ,1? 3 BRITISH INTERESTS 807 r-l O CO lb ■* ^ l> 1 1 1 1 1 1 1 1 1 1 1 1 1 I r* o CO 00 o CO "i crt 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 »o — (N CO ■* o o CO »o Ol — — 00 o o 1— ( o O) m o 00 CO ■* CO O CO t- o; o o »o 00 o ^ CO to ■* o o « CO CO CD CO eo C3 r-H eo O l> CO CD w 00 05_ to o^ r» CO _r o i-H l> >o co ^ 1— 1 (N ^ '^ l> oo" ■* lO (N (N I-H IN N <— ( ■— t CO o 00 OS 05 ^ 00 l> tH O GO 00 »o to I> CO -* CD t' 05 O) cq t- OJ t* G4 00 « d OS d 00 d I> l> ui eq d 1 CD -* o 00 >o o CO •^ cq o> CD lO t> 1 00 CO to 00^ «o OS CO "i. 00 i-H CO o^ »o c^ w CO "i. 00 CD »■ oT co" I— 1 oT o -^ d" tN t^ c^ 00 d tJ< ■* CO rH ■* oq (N CO eq CO CO CM W o o ■^ 05 eq OS o I> eo U3 OS o to I> -* 00 (> ■00 cq 00 CO o I> CO 00 OS q6 OJ CO d 00 I> 00 oi Tji ui ^ CO OJ ^ i6 OS "* 00 CD CD ■* 05 CD ■* o o F-H OS t> g »o « l> 05_ eq CO 00 00 ■^ "O CO OS 00 CO Ol t> >o o i-H ■* 05 CO t^ •^ o^ CO CO 00 >o CO U3 >o — ' ■^ to 1— 1 lO o> (N r~t 00 o> o O CO o CD o __^ OS 00 c- CO eo ■<# t^ co" lO o cq i-T 05 ■* -* o xjl 00 •^ CO 1—1 r~* eo 1—1 00 «*) § 1 O ■a -0 , . i a< . T3 . ■d . , . r4 i i 1 DO M m 1 a c 1 CO o f o "o s ■3 1 i 1 1 1 •3 o 1 o 1 1 1 1 ID 1 a m 1 1 1 ID ■3 a Wl a ■p 1^ 3 1 "3 1 1 -p 1 > 308 SOUTH AMERICA ^ CD m o ^ CO a> 00 00 IN 00 CO 00 00* 1-^ •* CO t^ . 1 CD C4 CO cq p— I s ' 9) 1 1 1 1 1 O CO « £^ CO 1 1 1 1 1 1 o CO cq" CO o <» r» 1> 00 >o CO o to ■* •^ i i .s •G o PM -ts 1 1 1 1 1 1 o i o 1 1 1 Q 13 g ^ o 02 s h •a 1 1 o CD O 0§ l> CO o C- CO i> o ^ M cq o f-* o i> 00 CO ci OS , . CO ■<)< IM o to <=■ CO 00 o> t k: >o eq l> w o Cd •o CO o> O CO CO lo CO w* CO to „ M ^^ CO CO 04 m N l> CO t^ 00 o s t^ C> 00 c^ 00 t^ K> • OS « f-H o o> 00 M •-I 00 s s«- 00 l> o_ -* t^ CO 00 to n. 3 O oT iO to o" « CO CD to 1- 00 -* o IM M ^ o l> (N --* rt a> CD r- i> « to « r-l o >o lA 00 «■ rH* 00 d id t> •^ d ; ca t^ CO >o O) •o CO o 1 =1 00 o^ ^ o o 00 o O 00 -* to r^^ d" •^ 00* oT eo o ^:- 00 CO "O o o o> 04 04 i5>0 o CO 00 CO CO t^ ,__, ^__, 8 n to o CO 00 00 o pH cs .-i t^ ** CO co" N d ^ ■^* in ^" >a I> o ■* c- CD ■«J* D* c-^ (N M 00 ■3 o o OJ CO ■^ r» ■o lO o^ 00 CO CO « r- 1 ■-< l-« 'is o o rt ^ l> ■* o o s o r^ f*^ C4 "-J cq 00 00 tu 05 n d id CO ■^ oi • CO 5 .OJ CO C4 eo rH o *<* lO o a g« M eo CO f-H^ * "*« o t> 'a Jof •* CO Ol" 00 F-l ' oT id" c^ •* 00 OS o o 2 r- rt s lO* •i •*3 : m ■43 8 -f9 (B c 1 1 ■-a (D 1 o CD "■5 • •5 1 ■3 o • .2 S en* o o a 5 ■c i 3 M Of ■♦a 1 ^ 13 o t) H « 1 3 § § & 3 ■a a g "•*» S t3 i 1 0. m T3 CS H« J3 § IS o O ;3 BRITISH INTERESTS 309 «>. o « 2! 00 rt •a C4 lO ■* O O 00 CM WS ^ ^ ^ rt< t- ■* o< o 00 •^ M « t^ « w to O 00 to to r^ •* >o ■* 00 a> o> o a> o « C4 ■* I> IM 05 i> to -1 rt oq CO 3 o T3 N rt rt O CO 00 r^ »-* M ^ ^ ^ 00 rH 00 ^ o CO 00 o o w to ef> 00 o CO 00 on CO ■* to OS »4 to >o O) 00 CO t- O OS <-< 00 00 lO o CO -H . s o a ft s ^ s 3 < C3 ■g S s ^ a o H S o H 310 SOUTH AMERICA It is surprising to find that the exports of not a few of the South American Repubhcs have maintained their level since the outbreak of the war. Ecuador affords an instance of this kind In 1915, for instance, that northern Republic exported over £2,600,000 worth of her goods, which may be taken as very little below the average for the past half-dozen years. It is true that the imports do not tally with this condition of affairs, although it is to be remarked that those for 1915 exceeded those of 1914 by almost £20,000. The United States, favoured by her geographical position, enjoyed the principal share of Ecuador's trade, Great Britain making a close second, with Germany and France in the respective third and fourth places. The situation since the European war is not a little instructive in this respect, the imports from the United States having risen from £476,000 to £661,000, those of Great Britain having likewise increased from £535,000 to £691,000 in the same period, while those of France declined from £127,000 to £51,000 and those of Germany from £319,000 to £10,000, From the commercial and industrial point of view Ecuador cannot as yet be ranked among the progressive countries of South America. It must not be inferred from this that no advance has been made in the economic conditions of the country. On the contrary, the natural riches and the agricultural resources of the RepubUc have been made to increase vastly since the beginning of the present century, and their extent may be said to have more than doubled in this short period. In spite of this the conditions of the country are still backward when compared with those which prevail in so many other of the South American States. Thus the laws of the country are in many respects framed in a manner which tends to discourage, rather than to foster, modern commerce. Moreover, although the characteristic cannot be applied to the most enUghtened of the inhabitants of the Repubhc, the average Ecua- BRITISH INTERESTS 311 dorian has not yet become accustomed to regard the foreigner as one who, however indirectly, is working for the benefit of his country. On the contrary, he is a little liable to regard the commercial stranger with a considerable amount of suspicion and jealousy. In the rapid development of events which is occurring throughout the continent, it is out of the question, of course, for this condition of affairs to be permanent. Nevertheless, it is stiU prevalent up to a certain point, and has, therefore, to be reckoned with. It must be said, too, that sanitation still leaves much to be desired in Ecuador ; and even in Guayaquil, the commercial capital, the conditions of health are not yet of a modern order. The British have a railway interest in Ecuador in the Central Railway of Ecuador, a company which was registered in 19 lo, and which has already begun operations Various British land companies are concerned with Ecuador, and other British interests are connected with oilfields, and with the coffee and rice industries, as well as with such enterprises as sack-making and similar ventures. With the exception of oil, the mineral resources of the country are slight, and, if any British interests exist in this quarter, they are quite unim- portant. Commercial travellers are taxed to the extent of 100 sucres, the equivalent of £10, on entering the Republic. In certain contingencies, moreover, further taxes are imposed. Samples of no value, and others which have been rendered unfit for practical use, are admitted free of duty. Samples of value, if in the charge of a commercial traveller, are allowed free temporary admission, providing that a guarantee be provided by one of the leading merchants of the RepubUc. 312 SOUTH AMERICA valttes of the ecuadorian imports, with the counteies of Okigin. Country. 1909. 1910. 1912. £ £ £ United Kingdom . . 628,163 505,267 629,298 United States 479,600 462,896 552,821 Germany 334,686 323,231 433,204 France 122,087 108,134 126,760 Italy 92,229 69,230 101,423 Belgium 87,536 66,944 95,787 Spain 66,359 55,842 79,020 Salvador 3,255 15,869 — Peru 22,552 12,297 36,293 Chile 20,275 11,078 17,144 Other countries 13,682 16,872 68,818 Total . . 1,870,424 1,647,660 2,130,568 COMPAKATIVE LlST OF IMPORTS HSTTO EcUADOE DUStNG THB YeaE3 1909-10 (CtrSTOM-HOUSE Vaxttes). 1909. 1910. Sucres. Sucres. Food products . 2,152,204 2,641,793 Ironware . 1,193,622 1,125,893 Lumber 36,526 131,743 Machinery 687,990 719,924 Paper, etc. 360,302 311,722 Paints, oils, etc. 91,572 243,979 Clothing 1,393,140 698,362 Jewellery 56,890 9,386 Textiles in general Silk fabrics, etc [ 4,979,352 (3,532,847 1 133,132 Wines and liquors 650,956 719,716 Candles 223,134 256,060 Fire-arms, etc. 42,842 222,853 Boats, etc. 22,370 38,752 Cement 83,216 112,028 Leather goods 236,306 432,591 Rope . . 118,964 303,606 Crockery and glasswar* 3 197,336 234,623 Gold and silver 1,706,000 2,056,000 Coal 216,076 480,079 Drugs, medicines, etc., and chemicals 382,406 476,830 Sundries 3,673,066 1,600,694 Total . . 18,704,244 16,476,603 BRITISH INTERESTS 313 Imposts and Exports at various Eotjadobian Ports dumno THE Year 1910. Imports. Exports. KUos. Sucres. KUos. Sucres. Guayaquil 61,078,612 14,356,521 45,200,896 21,993,470 Puerto Bolivar . . 140,911 57,709 305,221 76,524 BaUenita '■ — — 104,035 67,030 Manglar Alto * . . — — 614,035 112,512 MachaUUa i — — 1,022,335 292,462 Cayo 1 . . — — 1,784,400 788,356 Manta 3,569,779 913,362 5,374,585 2,127,890 Bahia de Caraquez 4,103,245 799,344 5,065,280 1,784,220 Esmeraldas 1,186,934 313,861 4,592,503 810,528 Maoara . . 54,376 33,158 26,103 11,630 Tulcan . . 14,065 2,648 14,550 7,852 Total . . 70,147,822 16,476,603 64,103,943 28,062,364 ' Minor ports, for exportation only. Return of British Shipping at the Port or Guayaquil during THE Year 1910. Steam Vessels. Entered. Cleared. Vessels. Tonnage. Vessels. Tonnage. From — United Kingdom 6 15,799 6 16,799 Chile 33 91,680 34 94,676 Panama 68 60,402 66 61,868 Peru 3 138 3 138 United States . . 9 21,015 6 14,177 Chile — — 5 9,968 Total . . 109 188,934 120 196,616 Sailing Vessels — Entered. Vessels. Tonnage Germany 1 1,646 Australia 1 1,119 Total 2,764 314 SOUTH AMERICA Sailing Vessels — Cleared. Chile . . United States Vfsiels. . 1 1 Total Tonnage. 1,119 1,645 2,764 Retuen of Shipping of ai-i. Nationalities at the Pobt or Guayaquil during the Yeah 1910. Steam Vessels. Entered. Cleared. Nationality. Vessels. Tonnage. Vessels. Tonnage. British 117 190,390 119 195,386 German 42 117,381 42 117,381 Chilean 46 75,128 46 75,128 Peruvian 7 10,598 7 10,598 Norwegian 1 2,765 1 2,765 Total . . 213 396,262 115 401,258 Sailing Vessels. British 2 2,764 3 3,881 German 1 1,477 1 1,477 Norwegian 1 1,080 1 1,080 Russian 1 999 1 999 Total . . 5 6,320 6 7,437 CHAPTER XX TRADE STATISTICS Statistics concerning trade and development of South America during recent years — Railway mileage — Development of Argentine agriculture — Cattle stock of the world — Commerce of America — Total trade of the United Kingdom with the South American RepubUcs — Trade of the United States with the South American Republics — Internal trade of Argentina, Brazil, Chile, and Uruguay — International trade of Argentina, Brazil, Chile, and Uruguay. The following general statistics, taken from one of the admirable works compiled by the Argentine Govern- ment, will illustrate much that has been written con- cerning the trade and development of South America during recent years. They will also serve to show some of the larger aspects of the trade of the various countries and that of the world in general with the Latin Republics of the South. Railway Mileage of the World, showing the Position held BY the Latin AnEBiCAiJ States. Country. Length in Miles 1 United States . . 246,650 2 Germany . . 38,493 3 Russia in Etirope 37,960 4 British East India 32,839 6 France 31,219 6 Austria-Hungary 27,856 7 Canada . . 25,400 8 Great Britain . . 23,399 9 Argentina . . 22,447 10 Australia . . 20,137 11 Mexico 15,362 12 Brazil 13,535 13 Russia in Asia . . 10,808 315 816 SOUTH AMERICA Railway Mileaoe of the Wobld — continued. Country. Length in MUes 14 Italy . 10,707 16 South Africa 9,795 16 Spain 9,383 17 Sweden 8,760 18 Japan, including Korea . . 6,173 19 China 6,124 20 Belgium 6,382 21 Algiers and Tunis 3,966 22 Egypt 3,675 23 Ohile 3,674 24 Greater Antilles . . 3,296 26 Asia Minor, etc. . . 3,280 26 Switzerlcuid 2,971 27 Denmark . . 2,344 28 Cochin China 2,257 29 Roumania . . 2,241 30 German colonies in Africa 2,148 31 Holland 1,985 32 Norway 1,922 33 French colonies in Africa 1,879 34 British colonies in Africa 1,861 35 Portugal . . 1,854 36 Central America . . 1,771 37 Peru 1,656 38 Uruguay 1,639 39 Dutch India 1,587 40 Bulgaria 1,208 41 Portuguese colonies in Africa 1,002 42 Greece 988 43 Turkey in Europe 968 44 Malayan States . . 858 45 Belgian Congo Colony 762 46 Bolivia 786 47 Newfoundland 680 48 Siam 677 49 Venezuela . . 634 50 Colombia . . 614 61 Serbia 582 52 Ceylon 577 53 Ecuador 349 54 Lesser Antilles 336 55 Luxemburg 322 66 Paraguay . . 232 67 British Guiana 104 68 Italian colonies in Africa 74 69 Malta, Jersey, Man 68 60 Portuguese India . . 51 61 Dutch Guiana 37 62 Persia . . 33 THE DEVELOPMENT OF ARGENTINE AGRICULTURE Cultivated areas in hectares (1,000 hectares = 3,86i sq. miles) srsiisfEii S|>ll$llll I I 318 SOUTH AMERICA s < 5 n o ■" ^ I M ^l O DQ o o g o n o H O Id ec o o o Ir- o 00 „ o l> o o o ■^ t© o t^ 00 o> o o o o> '(Jl CO CH 11 < ■* Oi OJ 00* CO (N 1 CO t- >o lO c^ 1 IM o to \ \ 1 t* 1 CO ■* ■* 03 « t> C4 '^ ■* CO 00 >o o 00 o o o o 00 lO CO r^ ^ o CO o t- o o to o (N o t- ■* o 00 C<1 s CO o o o o r- "O CO ■o 00 CO ■<* 00 E ■* >o o o" o>- CO o oT »o oo" (M CO CO fi to Oi CO o 00 (N CO o 00 1-^ o lO >o o S "O 00 o c^ »o o CO OS "^ c^ CO oT I> ^ CO OS ""* M '^ « ^ 00 o o r^ o >o ■^ o> o « CO oo CO o o o to •o >o >o 00 OJ Tfl OS *>' o "O o c> !>■ t^ o I> o_ o o -* t^ 00 ^ o oT CO t~ ■* Oi IM o o r~ r— 1 ■^ o a CM tH CO r- o CO oo 00 o (/] 1 CO OS (N CO OS o^ lO ^ 00 "*. lO iO •* CO 00 l> CO co" I> w CO ^ r— 1 c< Oi o o o o 00 ^ ^ 00 o o o Oi CO I> lO oo t- OJ CO o^ CD CO OS Oi 00 1 o* 1 ■* c» o" CO CO o CO -* o o CO Ttl i-H "O 1 1 lO w OS 1 f" t^ o o -* "^ (N Tt< l> o CO CO •o CO "* CD CO CO I-H ef 1> CO o o o IM (i, to o o o^ -* o^ to CO IM (N OS e^ o CO o CO CO CO CO 00 00 CO 00 IM .A 00 >o o >o o 00 >o IM 00 Tt( CO i/i IN 02 o CO 00 (N 00 o_ ^. cq to CO O) o" o »o co" CO "o" im" CO 00 oq ■* 00 --H (M 00 w ^ ^ o CX) o o ~~' o 00 Tti IM Ol c^ ^ t^ CO o ■* o o o 00 o CO IM 00 o> t' o "O cq* l> 00 -<* a CD IM Ci 00 >o (N 'H o o 00 o T*1 l> 00 CO OS u CO CO »o o l> 00 co_ 00 ■* CO *1 o a o o o o -* CO o> 00 1> co" 1—1 »o CO CO CO (N ' ' '~' ' ' M r— 1 lO M ■* CO (M CO 5) M CO o 00 00 3 i— t o o Oi 05 OS 1— 1 o> o> Oi o> Oi 03 ca OS 05 OS o '■ • ; ; , d fS § 1 1 3 1 ■•s •s i a •43 •c 1 .2 2 >> § < 3 •a 1 s gs 1" ca i 1 1— < pq t3 « ^ ^ o i!^ (A t) < < b w TRADE STATISTICS 319 O r-( o c- to r* l> ■« 04 o « eq eq » -* t~ CO o cq i> t^ CO 1 C4 1 I> 00 1 to 1 1 o" 1 1 ■>* Til lO 1 1 « 1 o 1 CO 1 1 i> 1 1 o 1 «o c^ cH ■* 00 cq t' s ^ 00 c- K3 ■* CO o r-) « o to to >o 00 CO r-t 00 CO rl 00 IN >o T*i l> ■* CO 00 CO rH eq ■* f-H to l> « ■<^^ « °°. eq cq ■* l-H t* 00 t- "i ■* l> oT CO •* » 00 oo" ■*" I> o to ■>* •* t-^ Oft 00 to 00 >o >o ■o CO c^ ■* cq >-* >o r-t ©f ■^ ^ Oi •^ o OS ^ CO •* -* CO CO o oo to o to CO CO CD o to to CO o lO Oi 1:- CO -* cq !>• e a lO eq_ OS o 00 to o" 00 1 oo" CO to o l> a> to lO ■* to 00 i> o 1 ■* CO Oi 1> >o •« ■* CO CO '^ i— 1 ■* >o CO CO CO rH oT eq r-H ^ fi CO lO to o CO 00 00 -* >o to lO cq CO l-H cq t^ l-H c^ "O >o c» r^ -* o lO * ■* 1 1 1 1 CO CO « to o ■^ cq 1 CO cq ■o r-H 1 to 1 o CO CO l-H ■* 00 CO 1 l> o> ■* o 03 ■* oa o> c» o_ l> « CO ■* CO ■* 1 00 '^ »o >o oT ■>* o cq" 00 00 a> o to CO 1 CO >o to a> o Ttt a> to 00 «s l-H 00 Ir- CO CO « CO w 1— I 00 cq ># " '^ t> t- o> to r(4 cq lO Ol -* cq CO o CO 00 CO ^ •— t o o (M C5 to o CT. i> 00 i> CO oo 00 a eq o 00 ■tH CO lO 00 Q0_ "<* "O -* cq CO -* -* 00 fS t^f oT oo" cq" cq" to o a> o CO ■o CO OS Oi ■* eo rt< 00 00 to CO t> 05 eq -K to t- CO ■* OS to » O r~^ CO IC lO -^ rH O o^ oo_ t^ »o ■* Tj* CO e^ o a> o at l-H OS ^ t3 1 S ■s 03 1 OB 1 1 1 .2 i pq 1 w c8 ■3 CI N 1 n i a •ffi § 1 1 1 I 1 t o 320 SOUTH AMERICA The Commebob of Ambbioa — Imports and Expobts. Vdhie of Trade. Country. " Year. DoUars Gold, Millioni 1 United States . . . . 1914 4,411-8 2 Canada . 1914 1,112-6 3 Argentina . 1915 785-2 4 Brazil . 1914 413-3 6 Cuba 1914 304-8 6 Mexico . 1913 256-8 7 Chile . 1914 215-2 8 West Indies (British) . 1914 104-7 9 Uruguay 1914 96-1 10 Porto Bioo . 1914 82-4 11 Peru . 1914 67-1 12 Colombia . 1913 651 13 Venezuela . 1914 45-7 14 Bolivia . 1914 390 15 Guatemala . . 1914 22-9 16 Santo Domingo . 1913 20-4 17 Haiti . 1913 20- 1 18 West Indies (French) 1913 200 19 Ecuador . 1914 19-2 20 Costa Rica . . 1914 19-1 21 Guiana (British) . . . 1914 18-8 22 San Salvador . 1914 15-9 23 Panama 1914 14-9 24 Nicaragua . 1913 13-6 25 Honduras . 1914 136 26 Paraguay . 1914 9-7 27 Guiana (Dutch) . 1913 6-9 28 Guiana (French) . . . 1913 49 Population. Country. Dollars Gold per Head. 1 Canada . . 8,075,000 137.78 2 Cuba 2,469,125 123.40 3 Guiana (French) 48,800 100.40 4 Argentina 7,988,383 98.30 5 Guiana (Dutch) 86,134 80.00 6 Uruguay 1,316,714 73.04 7 Porto Rico 1,183,173 69.64 8 Guiana (British) 304,000 61,84 9 Chile 3,551,703 60.69 10 West Indies (British). 1,761,718 59.77 11 West Indies (French). 397,900 50.26 12 Costa Rica 420,179 46.48 13 United States.. . 98,781,324 44.66 14 Panama 400,000 37.25 15 Santo Domingo 725,000 28.13 16 Honduras 662,000 24.00 17 Nicaragua 690,000 20.00 18 Brazil 2' 1,308,000 17.00 TRADE STATISTICS 321 The Commbroe or America — continued. Country. Dollars Gold per Head 19 Venezuela 2,755,685 16.68 20 Mexico . . . . 16,446,000 16.67 21 BoUvia . . 2,520,538 15.47 22 Peru 4,500,000 14.91 23 Ecuador 1,500,000 12.80 24 Guatemala . . 2,119,165 10.90 28 Colombia . . 5,473,000 10.89 26 San Salvador 1,600,000 9.90 27 Paraguay 1,000,000 9.70 28 Haiti .. 2,500,000 8.40 Total Tbade of United Kingdom with the South American Republics in 1914 (British Official Statistics). Imported. From — £ 1 Argentina . 34,868,057 2 Chile 4,460,977 3 Brazil 3,956,391 4 Peru 2,614,692 6 Uruguay 2,579,242 6 Bolivia 1,347,599 7 British Gruiana 1,046,864 8 Colombia 825,572 9 Ecuador 484,731 10 Falkland Islands 244,428 1 1 Venezuela 99,298 12 Dutch Guiana 86,140 13 Paraguay 6,013 14 French Guiana 1,758 52,620,662 Exported. To— £ 1 Argentina . . 15,080,668 2 Brazil 6,601,211 3 ChUe 4,010,030 4 Uruguay 1,725,638 5 Colombia 1,184,398 6 Peru 1,138,467 7 British Guiana 801,949 8 Venezuela 583,647 9 Ecuador 460,578 10 Bolivia 266,226 1 1 Falkland Islands 110,808 12 Paraguay 73,727 13 Dutch Guiana 62,060 14 French Guiana 6,449 32,096,766 21 322 SOUTH AMERICA TRADE OF THE UNITED STATES OF AMERICA WITH THE REPUBLICS OF SOUTH AMERICA IN 1914 (Compiled from American Official Statistics). Balance of Trade — Country. Imports. Exports. In Favour Against Cf S.A. of U.S.A. Dollars. Dollars. Dollars. Dollars. Argentine Bepublic 45,123,988 45,179,089 55,101 Falkland Islands . . — 776 776 — Paraguay . . 64,651 173,191 108,540 — Guiana (French) . . — 295,334 295,334 — Bolivia 70 1,145,555 1,145,485 — Guiana (British) . . 110,603 1,700,360 1,589,757 — Brazil 101,329,073 29,963,914 — 71,365,159 Colombia . . 16,051,120 6,786,153 — 9,264,967 Chile 25,722,128 17,432,392 — 8,389,736 Peru 12,175,723 7,141,252 — 5,034,471 Venezuela 9,763,069 5,401,386 — 4,361,683 Uruguay . . 7,715,144 5,641,266 — 2,073,878 Ecuador . . 3,595,456 2,967,759 — 627,697 Guiana (Dutch) . . 1,026,050 711,482 — 314,568 Total . . 222,677,075 124,539,909 3,194,993 101,332,159 Vaixte of Mebohandise Eipobted fkom the United States to THE RePUBLIOS OF SoTJTH AMERICA IN THE YeAB 1914, SHOWING THE PbOPOKTION OF Aboentine Pubchabbs. To— Argentine Republic Brazil . . Uruguay Venezuela Ecuador Guiana (Dutch) Guiana (French) Paraguay Falkland Islands Chile.. Peru Colombia Guiana (British) Bolivia Dollars. Dollars. 46,179,089 ,46,165,108 29,963,914 \ 6,641,266 6,401,386 2,967,759 711,482 295,334 173,191 776 17,432,392 7,141,262 6,786,163 1-34,206,712 1,700,360 1,145,655 Total value of sales to South America. . 124,839,909 The Argentine Republic receives 36-3 per cent, of the total. TRADE STATISTICS 323 Pbincipai, Aetioles op Expoetation raoM THB United States TO South Ambrioa in 1914. Oils : Animal, Mineral, and Vegetable^ To— Dollars. 1 Argentina . 8,114,529 2 Brazil . 5,459,788 3 Chile . 4,543,734 4 Uruguay . 1,534,986 5 Peru 408,065 6 Colombia 364,442 7 Venezuela 277,443 8 Guiana (British) 224,322 9 Ecuador 96,345 10 Guiana (Dutch) 64,634 11 Guiana (French) 40,907 12 BoUvia 40,133 13 Paraguay 9,759 Total . . . 21,179,087 Wood, and Manufactures oj r 1 Argentina . 7,385,650 2 Brazil . 1,106,430 3 Chile . 1,053,425 4 Peru . 1,024,533 5 Uruguay 791,960 6 Guiana (British) 186,019 7 Venezuela 150,247 8 Colombia 133,040 9 Ecuador 56,688 10 Bohvia 28,937 1 1 Paraguay 5,538 12 Guiana (French) 2,353 13 Guiana (Dutch) 1,509 Total . . . 11,925,329 Engines, Locomotives, and Railway Material. 1 Brazil . 5,977,886 2 Argentina . 5,557,770 3 Chile . 1,832,593 4 Peru . 1,243,692 5 Colombia . 1,111,740 6 Venezuela 719,695 7 Uruguay 403,127 8 Ecuador 361,270 9 Bolivia 192,153 10 Guiana (British) 51,725 1 1 Paraguay 29,366 12 Guiana (Dutch) 6,813 13 Guiana (French) 2,021 Total . . . 17,489,831 324 SOUTH AMERICA 1 Argentina 2 Chile 3 Uruguay 4 Brazil . . 5 Peru 6 Colombia 7 Venezuela 8 Ecuador 9 Guiana (British) 10 Bolivia . . 11 Paraguay 12 Guiana (Dutch) 13 Guiana (French) Peincipal Abtioles of Exportation — continued- Agricultural Implements. To — Dollars. 4,344,886 389,468 278,662 231,698 82,649 46,597 13,187 10,018 7,394 2,546 1,653 881 412 . . 6,410,041 and Manufactures of. 4,307,669 3,034,328 3,013,478 1,020,195 1,004,703 837,507 472,475 369,753 114,489 39,286 36,881 9,785 1,628 Total . . Iron and Steel, Eaw Material, 1 Argentina 2 Chile .. 3 Brazil . . 4 Peru 5 Colombia 6 Venezuela 7 Uruguay 8 Ecuador 9 Bohvia . . 10 Paraguay H Guiana (British) 12 Guiana (Dutch) 13 Guiana (French) Total . . Leather, and Manufactures 1 Argentina 2 Brazil . . 3 Chile . . 4 Colombia 6 Peru 6 Uruguay 7 Venezuela 8 Ecuador 9 Bohvia . . 10 Guiana (British) 1 1 Paraguay 12 Guiana (Dutch) 13 Guiana (French) Total . . of. 14,262,176 1,980,721 1,008,470 588,706 277,260 258,909 247,737 171,312 164,626 39,089 34,279 20,487 11,937 89 4,773,622 TRADE STATISTICS 325 Pbinoipal Articles of ExpoBTATiON^-coniinued. Fibres, Vegetable, and Manufactures of. To— Dollars. 1 Argentina 1,790,084 .. 1,015,158 956,735 525,669 374,080 322,819 278,416 213,713 208,023 68,682 23,245 6,314 1,093 2 Chile 3 Colombia 4 Venezuela 5 Bolivia . . 6 Brazil 7 Peru 8 Ecuador 9 Uruguay 10 Guiana (British) 11 Guiana (Dutch) 12 Paraguay 13 Guiana (French) Total 5,784,001 Cars, Carriages, Railway Wagons, Sundry Vehicles, etc. 1 Argentina . . . ■ . . . . 1,504,454 2 Brazil 931,204 3 Chile 335,061 4 Colombia 233,190 5 Uruguay 229,829 6 Peru 155,385 7 Ecuador 52,708 8 Venezuela 37,978 9 BoUvia 32,893 10 Paraguay 5,693 11 Guiana (British) 1,643 12 Guiana (Dutch) 566 13 Guiana (French) 155 Total 3,520,759 Aeroplanes, Automobiles, Bicycles, Motor and other Cycles, and Parts of. 1 Argentina .. ■■ ■■ •• 1,146,658 2 Brazil 399,678 3 Chile 203,815 4 Uruguay 194,055 5 Venezuela . . . - • • • • 175,667 6 Colombia 100,706 7 Peru 44,886 8 Ecuador 30,291 9 Guiana (British) 18,143 10 Bohvia 14,798 11 Guiana (Dutch) 4,924 12 Paraguay 50 Total .. 2,333,671 S26 SOUTH AMERICA Pbinoipai. AnTiOLBS OF ExpoETATiON — Continued. Chemicals, Drugs, Dyes, and Medicines. To — Dollars, 1 Argentina . . 1,048,833 2 Chile 407,436 3 Brazil 390,127 4 Colombia 362,149 5 Peru 310,321 6 Venezuela 276,398 7 Uruguay 141,314 8 Ecuador 132,466 9 Guiana (British) 45,079 10 Bolivia 30,813 1 1 Paraguay 15,550 12 Guiana (Dutch) 8,720 13 Guiana (French) 139 Total . . .. 3,169,345 Naval, Stc res. 1 Brazil 831,277 2 Argentina 777,686 3 Uruguay 131,827 4 Chile 68,897 5 Venezuela 65,508 6 Colombia 50,795 7 Peru 41,256 8 Ecuador 6,544 9 Guiana (British) 5,792 10 Bolivia 4,796 11 Paraguay 1,987 12 Guiana (Dutch) 801 13 Guiana (French) 46 Total . . .. 1,977,212 Paper, and Man ufactures of. 1 Argentina 730,313 2 Brazil 317,084 3 Chile 233,603 4 Colombia 112,165 6 Peru 87,481 6 Bolivia. . 87,196 7 Venezuela 83,249 8 Ecuador 83,089 9 Uruguay 67,546 10 Guiana (British) 6,417 11 Guiana (Dutch) 3,657 12 Paraguay 1,683 13 Guiana (French) 177 Total 1,813,660 TRADE STATISTICS 327 Peincipal Articles of Exportation — continued. Summary. Dollars. Oils: £inimal, mineral, and vegetable .. .. 21,179,087 Wood, and manufactures of .. .. .. 11,925,329 Engines, locomotives, and railway material .. 17,489,851 Agricultural implements . . . . . . 5,410,041 Iron and steel, raw material, and manufac- tures of 14,262,176 Leather, and manufactures of . . . . . . 4,773,622 Fibres, vegetable, and manufactures of.. .. 5,784,001 Cars, carriages, railway wagons, sundry ve- hicles, etc 3,520,759 Aeroplanes, automobiles, bicycles, motor and other cycles, and parts of . . .. .. 2,333,671 Chemicals, drugs, dyes, and medicines . . . . 3,169,345 Naval stores 1,977,212 Paper and manufactures of . . . . . . 1,813,660 93,638,754 Other goods of minor importance . . . . 30,901,165 Total exports to South America . . . . 124,539,909 The trade between South America and the United States, since the war, has suffered the following alteration : Purchases from South America. Year. 1913 1914 1916 Year. 1913 1914 1915 Total. Dollars. Increase over Former Year. Per cent. 217,734,629 222,677,075 261,489,563 23 17-4 ra America. Total. Dollars Decrease over Former Year. 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