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INTRODUCTION xv

THE NORTH COAST

THE WEST COAST

THE EAST COAST

XL. PARAGUAY: THE CAPITAL AND OTHER CITIES 341

L. BRAZIL: OTHER INDUSTRIES 424

LIST OF MAPS

FACING PAGE

COLOMBIA 10

COLOMBIA, VENEZUELA, GUIANA, ECUADOR, NORTH BRAZIL 64

ECUADOR, PERU, BOLIVIA, SOUTHWEST BRAZIL 152

CHILE, ARGENTINA, PARAGUAY, URUGUAY 254

EASTERN ARGENTINA, URUGUAY 308

EASTERN BRAZIL 390

ENVIRONS OF SAO PAULO AND RIO DE JANEIRO 408

INTRODUCTION

Our recently awakened interest in foreign trade and in world affairs renders imperatively necessary a more accurate knowledge of other countries and a more intimate acquaintance with their peoples. Engaged in settling the various sections of our own country and in developing its manifold resources, we were too long self sufficient in thought and narrow in our activities. Yet years ago a few far-sighted statesmen like James G. Blaine realized that a broader field of action would soon become essential to our continued prosperity. A few manufacturers supplemented their domestic business with a modicum of foreign trade. A few men of affairs devoted their energies exclusively to the field of foreign commerce.

The Spanish War, first inspiring many with the idea that the United States had become a world power with interests beyond its boundaries, served to arouse in others a disposition to have a share in foreign trade. Following a gradual increase in the early years of this century, a sudden expansion of our commerce occurred a few months subsequent to the outbreak of the Great War. A scarcity of shipping prevented its attaining the proportions which might otherwise have been realized. Now that this obstacle is removed and the exactions of war service are over, adequate preparations should be made for the conduct of our developing commercial relations, especially with our Sister Continent at the south.

The supposition that those individuals who are directly engaged in foreign commerce are alone benefited thereby has unfortunately been widespread. Under our democratic form of government it is particularly essential that all should understand the advantages of foreign trade for the welfare of the entire nation, that this may not be hampered by the narrow views of local-thinking politicians, jealous of the prosperity of other individuals or sections, or by persons who concern themselves merely with the question of wages for a few or with other special matters; and thus that our commerce may be fostered by our Government according to the custom of other nations, with no purpose of bitter rivalry or unfriendly greed, but with the natural and proper desire of a great nation to share in the mutual benefits accruing to all countries where suitable and honorable foreign trade is developed, as in the case of individuals who buy and sell in the home market.

Some knowledge of other countries and peoples, of causes contributing to their present condition, and of their prospects for future development, while giving intelligent interest to trade and of service in making plans for permanent rather than transitory gain, is desirable for all who care to rise above ignorant narrow-minded provincialism, to be better prepared for civic and political duties, and to enjoy a broader outlook upon the entire world.

The most superficial observer cannot fail to perceive the enormous advantages which have arisen from division of labor among individuals and nations. The personal barter of primitive days was soon superseded by a medium of exchange, fixed locally though varying in different regions. There followed the transport from one city to another and from distant lands of the various products, natural or manufactured, of those cities and countries. As many things grow only in certain parts of the world, others we know are manufactured only in certain districts. That in the distant future the time may come when the entire habitable globe will be occupied, each portion produce what is best adapted to its environment, and the fruits of the whole earth be enjoyed by all its inhabitants, is from the physical point of view the ideal to which we may look forward, a goal for the attainment of which every nation may fittingly contribute.

Few are the portions of the earth where it is impossible for man to dwell, providing for his wants from his immediate surroundings. Each section not altogether barren produces such food and requisites for clothing as are essential to sustain life in that locality. The only considerable portion of the globe which is uninhabited, the Antarctic continent, seems likely so to continue, as it appears not merely the most unattractive spot in the world but devoid of the barest necessities for existence.

The North Polar regions, however, support a few people who live upon the products of the country and who probably would not survive if they adopted the customs of civilization as we regard them, though the use of a few articles which have been carried there may slightly ameliorate their hard existence.

The denizens of the tropical forest, who also have adapted themselves to their surroundings, being able to live with little labor, generally pursue an easy life, since necessity and ambition for improvement are lacking.

In other quarters of the globe where labor is necessary to sustain life but where its results may be a bare existence, comfort, or luxury, man has continually struggled for improvement, braving danger and suffering, and toiling long hours for the future good of himself or his children. Thus has the world made progress.

Here in the United States we might live in comfort with the products of our broad lands only; yet we do not desire to seclude ourselves within a Chinese Wall. We would enjoy the fruits of the whole earth, not by imperialistic conquest, but through friendly acquaintance, the sharing of ideas, and the exchange of products.

Some things we produce in such abundance that we have a superfluity to barter for others things which we produce not at all or not in sufficient quantities. In the past we have had more trade with Europe than with other continents. In various lines of manufactures and of artistic goods we are still unable to compete. While east and west trade will no doubt continue indefinitely, for natural products it would seem that the chief exchange should be north and south, a difference in latitude causing variety in climates, and a diversity in productions both animal and vegetable. With our expansion of shipping facilities following the conclusion of the War, we may hope for a continuing increase of movement from north to south on this hemisphere, making for friendship and political harmony as well as for material advantage.

In considering South America from a commercial and industrial point of view it is necessary to study the physical characteristics of the individual countries, their advantages and drawbacks; the climate and soil; the resources, including the animal, vegetable, and mineral products, and the water power; the character of the inhabitants including the quality and quantity of human labor; their present needs and wants; the future possibilities; the opportunity for investments of various kinds and political conditions affecting these; the instruments of exchange, banking and trade regulations; the means of communication and transport by land and water.

In addition we should know the difficulties which have retarded the development of countries settled earlier than our own, that instead of a supercilious mental attitude on account of real or fancied superiority in certain directions, we may have a sympathetic understanding of conditions, and of tremendous obstacles, some of which have been overcome in an extraordinary manner.

A general view of the continent as a whole may well precede a more detailed study of the several countries.

INDUSTRIAL AND COMMERCIAL SOUTH AMERICA

SOUTH AMERICA AS A WHOLE

PHYSICAL CHARACTERISTICS

In the study of South America one may observe certain points of resemblance with others of difference between that continent and North America. The outline of each, we perceive, is roughly triangular, broad at the north and tapering towards the south; but as the broad part of one is not far from the Arctic Circle while that of the other is near the equator, we find that the greater part of North America is in the temperate zone while most of South America is in the torrid; disparity in climate and productions follows.

The geological formation of the two continents is as similar as their outline. There is a correspondence on the northeast between what are called the Laurentian Highlands in Labrador and the uplands of Guiana; on the southeast between the Appalachian system of the North and the Serra do Mar of Brazil, each having a northeast to southwest trend and a fair similarity in height, though the tallest peak in either range is the Itatiai? in Brazil, which by 3000 feet exceeds Mt. Mitchel, the highest of the Appalachians. A difference worth noting is that the Brazilian range is closer to the sea.

Between the coastal regions both continents have great basins sloping to the north, east, and south with a large river draining each: the Mackenzie and the Orinoco flowing north, the St. Lawrence and the Amazon east, the Mississippi and the Paran? south. Were the two continents side by side there would be a great resemblance in production instead of the present considerable diversity.

While in area South America is ranked as smaller than North America, it may be a trifle larger in land surface, especially in habitable regions, if the opinion of Humboldt is correct that the Amazon Basin will one day support the densest population on the globe. The southern continent, comprising no large bodies of water like Hudson Bay and our Great Lakes, also has, save the slopes of the highest mountains, no regions like those near the Arctic Circle, incapable of supporting more than the scantiest population.

The outline of the continent is less irregular than that of North America, consequently there are fewer good harbors, especially on the west coast.

CLIMATE

As three quarters of South America lie within the tropics, the entire north coast, and the wider part of the continent including most of Brazil with the countries on the west as far down as the northern part of Chile, a tropical climate and productions might here be expected. But happily within the torrid zone of both hemispheres are the loftiest mountain ranges of the world. These modify the climate of large sections to such a degree that in many places there is perpetual spring, a perennial May or June; in other districts one may in comparatively few hours go from regions of eternal summer to perpetual snow, finding on the way the products of every clime. Thus the mountains and table-lands of South America are effective in causing moderate temperatures over extensive areas within the tropics, with accordant productions.

First, that the line of greatest heat, a mean temperature of 85?, is north of the equator most of the way. In the Western Hemisphere it runs well up into Central America; then it passes along the northeast coast of South America to a point just below the equator and the mouth of the Amazon, going far north again in Africa.

Second, that of the mean annual isotherms of 65?, which are regarded as the limits of the hot belt, the one in the Northern Hemisphere runs 30? or more from the equator, while that in South America hardly touches the 30th parallel, and on the west coast approaches the equator to within 12?: which means that the tropical region extends much farther north of the equator than it does south.

Third, that of the isotherms of 50? for the warmest month, which are considered as the polar limits of the temperate zones, the one is much nearer to the north pole than the other is to the south. Great masses of water, we know, have a tendency to equalize climate, as the water heats and cools more slowly than the land; but they do not make the average temperature higher. From the movement of the waters of the ocean their temperature over the globe is more nearly equal, while the stable land of broad continental masses has temperatures more nearly corresponding to the latitude, though with greater daily and annual extremes. But for practical purposes, that is for its effect on vegetation, the amount of heat received in summer is of more consequence than the extreme cold of winter. For this reason the temperature of the warmest month instead of the annual mean is taken as the measure; for if that month's mean temperature is below 50?, cereals and trees will not grow. The broad land masses in the Northern Hemisphere have a greater summer heat than the narrow stretch of land in extreme South America. The greater cold of winter in the north temperate zone does no harm.

We may observe further that in the Northern Hemisphere the west coasts of both continents are warmer in the same latitude than the east, at least in the temperate zone, while in South America a good part of the west coast within the tropics is much cooler than the east. In the temperate zone the variation is slight.

In the matter of rainfall, a most important factor of climate and production, South America is favored with a liberal supply, the arid portions being comparatively small in area, and many of these easily capable of irrigation and of resulting excellent crops.

Dividing the continent into tropical and temperate regions, the former includes the entire north coast, the whole of Colombia with ports on the Pacific, and Ecuador beyond, the low interiors of Peru and Bolivia, and around on the east the greater part of Brazil, far beyond the mouth of the Amazon; these sections have much in common as to climate and productions. Below Ecuador on the west coast, though still in the torrid zone, we find cooler weather, practically no rain, and for 1600 miles a desert region; beyond this there is a temperate climate with gradually increasing rainfall, and at last in southern Chile too much. On the east coast tropical weather and products continue till we pass Santos and the Tropic of Capricorn, followed by sub-tropical and temperate climates and production. The mountainous regions even at the equator have cooler weather, the temperature ever lowering with increase of altitude.

OTHER DISTINCTIVE FEATURES

In general we may say that the soil is extremely fertile and that the country contains wonderfully rich deposits of minerals of almost every kind. The immense store of precious metals found on this continent, some assert the greatest in any portion of the globe, was an important factor in its settlement; yet for true national prosperity the humbler coal and iron are of more value. Water power is also of material service. In these three important elements of wealth South America is not deficient, though her resources in these lines are but slightly developed.

Although many settlements were made in South America more than half a century earlier than our first at Jamestown, Virginia, in 1607, the population is much smaller than that of North America, the approximate number of inhabitants being 60,000,000 for South America and 150,000,000 for North; manifestly the development of her countries has been less rapid. For this there are obvious reasons.

The tropical climate of the north coast and of much of Brazil might seem less attractive to residents of temperate Europe and less conducive to strenuous labor on the part of those who came; the cooler regions of the south were more remote than the lands of North America. Moreover, the Spanish colony promising the greatest wealth, Peru, which at the same time was the seat of government, was indeed difficult of access, presenting besides, stupendous obstacles to interior travel. In view of these facts it seems wonderful that so many settlements were made on the west coast and that so great a degree of culture was there maintained.

Growth was further hampered by heavy taxes, merciless restrictions on trade, and other regulations by the home governments, almost until the countries achieved their independence. During the century of their freedom most of the Republics have suffered from revolutions and other troubles, but in recent years several have enjoyed a rapid development with considerable immigration. All now present opportunities of various kinds for investment by capitalists, for general trade, and for other forms of business. Such opportunities, as well as the conditions of living, vary greatly in different countries and in localities of the same country.

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