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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Credits should be extended with the greatest caution.

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

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

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

The following cities should be visited:

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

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