Although information and advice in regard to South American trade have been liberally proffered in many books and magazines, and in various addresses to commercial bodies, a few additional remarks may be of service; as from current report, cogent need still exists to reiterate with emphasis many suggestions previously urged, some of these in a magazine article of my own as long ago as July, 1907, but equally important today.

Except for certain facts of common knowledge, it would go without saying that the first and most important point for a manufacturer to consider is whether or not he really cares to cultivate South American trade, and will make a determined and persistent effort to secure and preserve it; a few occasional sales certainly not being worth while. To form an intelligent opinion on this question conditions must be thoroughly understood.

Commercial men should by this time be aware that in the regions to the south business opportunities are large and are rapidly increasing, that the population of the Latin American Republics is above seventy millions, and that their commerce, amounting in 1912 to two and a half billion dollars, is far greater than that of China and Japan together. In fact Argentina alone has more commerce than either of these Asiatic countries, and Brazil has more than Japan. Further, the ratio of increase on our South American continent is greater than in those regions of Asia.

Next, the manufacturer should realize that the longer he delays entering the field the smaller will be his chance of success; that the British and Germans have long been on the ground, and that, in spite of our fancied superiority in business methods, they will not easily be supplanted. He should understand that the South Americans in general are not eager to trade with us, their association with Europe, both by blood and by steamship lines, being closer and stronger. In some countries we are really unpopular; in others they do not care a rap about us either way. Many Latin Americans are distrustful and suspicious of our nation from a political point of view. They dislike the boorish and supercilious manner of some of our half-educated traveling, railroad, and mining men, although Americans of broader intelligence and better manners are well liked. Even in Peru, which country, if any, is supposed to be especially friendly, a prominent statesman, F. Garcia CalderÓn, in his recent book on Latin America, expressed grave fears of the Yankee Peril, more serious than that of the Germans.

Pleasant speeches at dinner should not blur the fact that Latin Americans are more enthusiastic about Latin America than Pan America. Capital, to be sure, from any quarter is welcomed in undeveloped countries and decidedly better bargains will not be despised. Ecuador, Peru, and Bolivia gladly accept our money for internal development, but Brazil, Chile, and Argentina, as a rule, get what they need from Europe, nearly a billion and a half dollars being invested in Argentina by Great Britain alone. It is time to realize that it is for our interest more than theirs to cultivate friendly and commercial relations with South Americans. They will not be neglected by others or suffer greatly if we do not favor them with our presence and regard. To undertake the establishing of commercial relations with the idea that it is a condescension on our part is a mistake certain to interfere with the rapid extension of business.

It is obvious that only those American goods which are exclusive or which require no tariff advantage can long compete successfully on even terms abroad with European wares, now sold by active enterprising business men determined to keep and increase their trade.

An important and primary consideration is the willingness and ability to conform to South American custom in regard to credit; it is rulable to defer payment from three to six months after the delivery of the goods, the price being fixed accordingly or interest being added. Such credit, readily granted by European firms, must be given by ours in order to secure extensive trade. In some quarters an idea is current that South American credit is not generally good, but shippers of many years’ experience assert that customers there are quite as reliable and honest as those in Europe or the United States. Furthermore, certain New York shippers take charge of and guarantee the collections, so that no loss is possible. Where results have been unsatisfactory it has often been due to the incompetence or dishonesty of the agent rather than to the Latin American with whom he dealt. Naturally suitable precautions should be taken and careful scrutiny exercised, as not every one is honest in any quarter of the globe.

As an aid in investigating credit, as well as for other reasons, the establishment of American banks in the various countries is an urgent necessity. Rumors as to plans for these have long been abroad, but as yet nothing has been accomplished. Few of our houses may be capable of organizing a great chain of banks like that of London and La Plata; those who might apparently do not wish to, or they are awaiting the passage of the currency bill. But in any of our large cities capital might be raised to organize a single bank in Rio, Montevideo, Buenos Aires, or other cities, which would be a valuable center of credit information as well as of exchange. Under able and cautious management such banks would be of great service to our exporters and repay the investors with 10 or 12 per cent dividends if not more.

Much has been said about American Steamship Lines as an encouragement to our commerce. While it would indeed be a pleasure to see the Star Spangled Banner now and again floating from vessels in foreign ports, this is of less consequence than the banks. If neither business judgment nor patriotism impels our multi-millionaires to build up a merchant marine, our needs will be supplied by others. Already we have excellent bi-weekly passenger service from New York to Buenos Aires and every week steamers to Rio. On the completion of the Canal we shall have weekly service from New York down the West Coast by at least two good lines of steamers. In addition a large number of freight steamers is already plying to each side.

With favorable consideration in regard to embarking on foreign trade, or even as a preliminary, some ordinary geographical knowledge and a slight acquaintance with local conditions, easily procured, is highly desirable. It is not a prepossessing introduction for a gentleman to receive a letter directed “Buenos Aires, Brazil or Chile,” as often happens, this being one degree worse than if Brazil or Chile were used alone, as the former address betrays not merely ignorance but the man’s indifference to his display of it. The common practice of mailing letters with insufficient postage is still more annoying, and is absolutely inexcusable.

Many of our largest industries and some smaller ones already have an excellent trade with South America, so that on the average the United States stands third in the value of goods imported into the various countries. Great Britain is first and Germany second. One meets their representatives everywhere.

As from six weeks to three months will pass before an answer may be received to one’s letter addressed to the United States Consul resident in the various countries, it is the more important to learn as much as possible at home of the character of the different localities, the variety of climate and productions, the condition of the people and their requirements; some of which information may be found in the valuable monthly Bulletin of the Pan American Union, in the excellent Semi-Monthly, The South American, and in the multitude of books recently written on the various countries.

With even the slightest knowledge one might avoid the absurdity of sending lawn mowers to Iquique, a barren desert where for the few and expensive plots of grass not only the water but the soil is imported; or rubber boots to Lima, where only a slight drizzle is ever experienced and small probability exists of need in the back country; or old-fashioned chandeliers on a three-foot stem to places where electricity is employed or where the ceilings are 15 feet high. If ordinary precautions had not been ignored, it would seem foolish to say that before shipping goods one should ascertain whether such articles are wanted in that locality.

It is well to note that except in the case of some novelty, the people know what they want and insist upon having it. They will not take what we think they ought to want or what is convenient for us to send. The Latin Americans are quite as fashionable and up to date as we are; the Indians, on the contrary, want the same thing year after year and for centuries. If their trade is desired their taste must be catered to, for others are ready to supply what they want if we do not.

Permanent commercial interests alone should be sought. Great injury has been inflicted upon the reputation of our merchants by the unjustifiable conduct of manufacturers, who in dull times have sent men abroad to take orders; then, business at home reviving and rush orders being received, they have turned back to their old customers, ignoring the new and leaving their orders unfilled, careless of their embarrassment and inability to supply their needs from any local market. Such trade permanently reverts to the British dealers upon whose steadiness they can rely.

It would seem a gracious act if some of our large manufacturers, instead of wanting the whole earth, should cultivate the South American trade, certain to prove profitable, and leave some of their home market to be taken care of by smaller people not so well prepared for the conquest of distant fields.

The changeableness sometimes exhibited seems extraordinary. An American in Bolivia engaged in a large business with Indians, after much urging and time spent, was persuaded by a traveling man from New Orleans to give him an order for a thousand dollars’ worth of goods to be delivered within six months. About the time they were expected, the American received a letter saying that the firm had concluded not to fill any orders to Bolivia!

A difficulty frequently experienced where cash sales have been made, and an excessive annoyance to the purchaser, is that a draft sent at the same time with the goods if not earlier reaches the consignee a week, a month, or more before the arrival of the merchandise. A month’s interest is lost by the purchaser, with the goods not in hand. When they do arrive they are often not as ordered, deficient in quantity and quality, and naturally that is the end.

It should be superfluous to say that merchandise should be up to the quality of the sample, but not so. Such happenings, common at home, will not work abroad where the tariff is level and competition free.

Further, the goods must be precisely like the sample, not even something better. Men who order two-wheeled vehicles do not want four-wheeled. The latter in some sections are impossible. The assumption that people do not know what they want, or the carelessness which permits of gross mistakes in shipping goods thousands of miles is evidence of crude business ideas and methods.

In most sections a slight difference in price is not so keenly regarded as the quality of the goods and the steadiness of price. It is more agreeable to them that an article should be sold for 30 cents through a period of years than that it should vary from 25 or 28 cents to 32.

Careful packing of goods, a matter of the greatest importance, has for years been continually urged, without avail or with but slight improvement. It is as true now as seven or eight years ago that packages from the United States on the dock in South American ports may be picked out on account of their disreputable appearance. Boxes splitting open, bags and bales ripping apart, many goods lost or ruined, is the continual complaint. Of course there are exceptions. Some houses may have reformed.

A United States official, writing for goods to his New York druggist, charged him particularly about the packing. The bottles arriving in a pasteboard box were broken. Again he tried with definite instructions and the same result. The next order went to England, where it was properly filled.

The persistence in ignoring expert advice is extraordinary. Agents in South America often send explicit directions as to packing, the size and weight of boxes, etc., without the slightest effect. Goods are dispatched in a 500 or 1000 lb. box to a region where they must be transported on the back of llamas, whose load is 100 lbs. The box is left on the dock or at the railway station; the goods are never used.

New York shippers report that much freight reaches them in a condition impossible to embark on the long journey. It must be refused or repacked. These are curious commentaries on the supposedly superior business ability of Americans. The splendidly bound boxes and bales of British goods are in striking contrast.

On the East Coast transportation by water and rail is general, though not complete. On the West, Chile is well served with railroads, Bolivia’s are rapidly developing, but an enormous region remains, especially in Bolivia, Peru, and Ecuador, where transportation by mules, burros, llamas, and Indians will long continue to be the only methods.

A material factor in securing South American trade where agents are employed is the sending of suitable and competent men. One of our largest houses, noted for the rather superior quality of its salesmen, admitted that they had by experience discovered that some who were very good salesmen here did not succeed there. Precisely why Americans should be so reluctant to follow advice from experts on subjects of which they are ignorant is a puzzle; but it is a fact that the preaching of many men for many years seems largely to have fallen on deaf ears. We should comprehend that South Americans are not ignorant barbarians, that in general they have more culture, often more education, than our business men, that their manners are much better, and that if we desire their business we must adapt ourselves in some degree and treat them with courtesy and not arrogance. To speak of them as monkeys, savages, and dagoes, even so as to be overheard, to commit other acts of unpardonable rudeness in churches and elsewhere, boorishly to inform them that they are half a century behind the times, are acts which might seem incredible but are by no means rare. A man who is thoroughly convinced of his own superiority and who regards the courteous amenities of life practiced by Latin Americans as silly and time wasting, as an evidence of insincerity and of a lack of practical common sense, who fancies himself above the conventions of dress and manners as practiced in the cities visited, and as they are in Europe, who would rush and push his wares is likely to make an unfavorable impression and to learn that more haste is less speed.

It should be obvious that to accomplish much a man must speak the languages of the countries visited. What success would a man speaking no English have in the United States? Spanish is current in all the Republics save Brazil; there it is understood by all persons of education, and may do fairly in the large cities; but for an extended tour or a long stay in Brazil a knowledge of Portuguese is essential.

Two extremes are noticed by the observant traveler in South America, each of which appears objectionable. Some American goods are sold at one-half or one-quarter of the home price; which might cause the disinterested layman to conclude that our tariff needed revising; other articles are sold at double or triple the price at home (not always the fault of the duty), a practice in the long run likely to prove unprofitable. Thus a popular sewing machine was bought a few years ago in Arequipa at one-fourth the price in Boston. White paper made in the United States is cheaper in Chile than in Chicago. On the other hand, in La Paz, shoes worth $2.50 cost $5.50 to $6.00, kerosene oil sold at about $5.00 for a case of 10 gallons, a can of corned beef costs 80 cents; and ham, 60 to 80 cents a lb. The last, put up by a Chicago packer, could be purchased more cheaply at retail from an English firm, having come by way of London, than at wholesale from the Chicago agent on the ground; and the home office would not take a direct order. Whether the price was according to the plans of the home office, or the idiosyncrasy of the agent anxious to make his fortune in a hurry, is unknown. That some agents are arbitrary in their charges might be judged from the fact that boots sold at Mollendo for $5.00 a pair were priced in La Paz at $14.00.

The sharp practice of some salesmen is greatly to the disadvantage of others. The man who sold a snow-plow to some one on the coast lands of Peru on the plea that the climate would change on the completion of the canal no doubt prides himself on his smartness, indifferent to the fact that he has done much to discredit Americans in all that region. Many seem to think that patriotism consists simply in “blowing” about their country; that they might do it a better service by honorable conduct and courteous demeanor does not occur to them.

I have heard that in many places on the plateau, as probably in the interior, it is customary to charge the poor Indians who earn but 50 or 75 cents a day double the already high price which a white man is asked for the same article, a sample no doubt of the justice and fair dealing for which we are told that men are distinguished, but in which women are said to be lacking.

Ten dollars a day has been allowed as a suitable sum for traveling expenses, and one following the railroads and not being burdened with heavy samples might find this sufficient. In the interior where many pack animals must be employed, or with a large supply of baggage to go by rail, and in Brazil and Argentina where heavy license fees must be paid, the fifteen dollars a day asserted by a recent traveler to be necessary may be desirable. It depends, too, a good deal upon the skill and character of the man.

The tax on commercial travelers who sell goods or who merely exhibit samples and take orders is an item to be considered in connection with other expenses. In some countries a separate license must be obtained for each Province or Department, corresponding to our States; in others for each Municipality. A few countries, more liberal, exact no fee whatever.

Beginning with Ecuador, $50 is here charged for one visit.

In Peru no license is required for commercial travelers, but there are certain regulations as to samples. If they are such as would enter free of duty no charge is made. If the articles are dutiable, one of each kind and variety is permitted free entry, providing the importer presents in duplicate an itemized description of packages and articles, pays the duty in cash or with bank draft, and within three months exports these samples, thereupon receiving back the cash or bank draft which he has deposited. Should there be any deficiency or substitution of articles, double duty will be exacted and the article substituted will be confiscated.

If samples enter Peru by Mollendo to go to Bolivia, not to return by the same route, they are dutiable, unless the Peruvian Consul in La Paz sends a certificate that the samples have entered Bolivia. The duty previously paid is then refunded. A fee of $12.50, U. S. gold, is charged by the city of Arequipa as a license in that particular section.

Bolivia is a more expensive country to visit and for that reason is omitted from the itinerary of many travelers. The policy of the Government seems particularly injudicious in view of the fact that their country is out of the way, that it has no great cities, and that large sales are required to cover the additional time and cost of the journey even without the considerable fee exacted.

Further, each municipality collects a fee for itself; there is no general tax. The fee varies according to the class of goods but in general for La Paz, the chief city (pop. 80,000), is 300 bol. or $116.70 U. S. gold; never more. The authorities of Cochabamba are said to charge 1000 bol. for the privilege of selling in their pretty city, while Oruro demands but 100 bol. As to other cities inquiry must be made in the country. There is talk of reducing the Cochabamba fee and perhaps the Bolivian Government will soon realize that the country will do better to adopt the more liberal policy of her neighbors, Peru and Chile. It should be added that if two persons go together as representatives of the same house each one is obliged to pay the tax.

Chile, like Peru, is extremely favorable to the commercial traveler, requiring no permits and no duty on the samples, unless in whole pieces of stuff or in complete sets of objects. Six months are allowed in which to reship samples free of duty.

The sections of the East Coast are much more exacting.

Argentina, noted for high prices generally, also has large license fees; these not for the country as a whole, but for each individual State or Province. A license covering the Federal Capital, Buenos Aires, costs 500 Arg. pesos, paper, $212.30 U. S. gold, and is good for one year. Each State has its own additional charge, mainly good for a whole year, though a few have half rates for six months and one or two, monthly licenses. These permit either selling goods, or showing samples and taking orders.

Not to enumerate all of the various districts it may be said that the fees vary from nothing in Neuquen to 1680 pesos, about $700 U. S. gold, in Salta; all of the remaining fees except those of TucumÁn, Entre Rios, and Mendoza, which are 600 pesos ($255), being less than that of Santa FÉ, which is 400 pesos, about $170, per annum. Samples of no value pay no duty; on others the duty which is paid is refunded if the samples are exported within six months. In some places a difference is made in the license fee if but one line of samples is offered.

In Paraguay license fees are charged in each of the five chief cities, varying, according to the importance of the firm represented, from $84 gold to $385. At other points, the license is one-third the amount in these cities. An advisory board of merchants fixes the class to which each traveler belongs, five classes altogether. No extra charge for representing more than one firm. No distinction for selling without samples. No tax for samples if taken out within six months.

Uruguay is said to charge 100 pesos or $103.42 U. S. gold, for the calendar year, the license expiring December 31. Application to the Chief of Police of Montevideo on paper with a 50 cent stamp being made, the certificate issued must be presented to the Director-General of Indirect Taxes to obtain the required license. Samples entered under bond are not subject to duty. According to the Consul General of Uruguay a license for the city of Montevideo only, all that most persons care for, is issued for ten pesos, $10.35.

Brazil requires no federal tax of commercial travelers but the States and cities more than make up this deficiency. As a milreis is practically 33 cents, or three milreis about one dollar, only one figure need be given.

ParÁ charges 300$ (i.e., milreis) as a State tax per annum, and 365$ for the city on each visit. If goods are actually sold, trader’s or hawker’s license is also required.

In Pernambuco there is no State tax, and but 53$ for the city of Fortalezain CearÁ.

Bahia charges 100$ for a yearly license, but it must be renewed if one leaves the country and returns.

No license is required in Rio unless goods are sold, when a trader’s license is necessary.

SÃo Paulo State has no tax but the city has a fee of 1000$ and the city of Santos 500$.

The State of Rio Grande do Sul has a tax of 150$ for selling in cities, 100$ for towns, 80$ for other places. The cities of Porto Alegre, Pelotas, and SÃo Gabriel exact each a license fee of 200$, Uruguayana 300$, Bage 800$, SÃo Borga 60$.

A power of attorney is generally necessary if agents are to receive money, this to be filed with a notary public who supplies copies in Portuguese on request.

Samples of no value pay no duty, but if worth more than one milreis duty is levied. The amount is deposited in the Custom House and if the goods are checked and sent out from the same port the duty will be returned.

The Central Railway has a mileage book and the Leopoldina Railway gives a discount of 20 per cent on samples and on fares of travelers.

Information on various matters may be found in the latest Exporters’ EncyclopÆdia; and is furnished to members by the Pan American States Association, the National Association of Manufacturers, and the American Manufacturers Export Association.

As to the resources of the South American countries and the variety of goods which may be exported thither to advantage, these things are set forth in detail in many books, in consular reports, and in back numbers of the Pan American Bulletin, to be found in our large libraries. I have here space for a few remarks only. Since the continent as a whole is still thinly settled and largely undeveloped, its productions and exports are chiefly mineral and agricultural, its imports manufactured goods, as is the case generally with young countries. Conditions in some respects resemble those in the United States half a century ago. Everywhere railways are being laid, and bridges built; towns are needing sewers, electric lights, street cars, and all modern improvements. The great cities are for the most part supplied with these, but many smaller ones are thinking about them or have merely made a beginning.

Material and equipment for the building and operation of railroads are needed in every country, bridge building material as well. Our steel men, our locomotive and car builders have been wide awake to such matters and are doing excellent business in some of the countries. Where, as in Argentina, most of the railways are financed with British capital, Americans have less chance in proportion than in those countries where American capital is considerably employed, as in Ecuador, Peru, and Bolivia.

Agricultural machinery of almost every kind and agricultural tools are in great demand on the East Coast, on the vast estates of Argentina, to some extent in Uruguay and Brazil. They have a smaller sale on the West Coast, where mining machinery is one of the prime necessities. Electrical apparatus of all kinds is everywhere needed and is largely supplied by the General Electric and other companies.

Although most of the countries have coal, the mines are not greatly developed except in Chile; hence much is imported; a good deal of lumber also, in spite of immense forests, as yet unavailable save in a few localities.

In all of the countries the chief import is textiles, principally from Europe, though the United States furnishes a good deal of the coarse grades of cotton, canvas, etc. Industrial machinery, automobiles and other vehicles, utensils, hardware, corrugated iron, sewing machines, paper of various kinds, motors, scales and balances, surgical and mathematical instruments, pianos and piano players, petroleum, gasoline, etc., lubricating oils, typewriting machines; canned goods, particularly on the West Coast, including milk, meat, and salmon, especially for miners, also used in the rubber country; leather goods, boots and shoes, watches, soap, druggists’ supplies and medicines, lard, twine, motors, dynamite, arms and ammunition, fence wire, pumps, pipings and fittings, tin plate, glass, porcelain, watches, phonographs, photographic material, and all kinds of novelties and general merchandise are among the articles imported; a few animals, chiefly blooded stock from Europe.

Should one desire to engage in business for himself in any of the Republics, there are good openings for persons with capital who speak the language. Persons without money are warned by our consuls not to go, unless they have a definite engagement or are specialists in certain lines where experts are pretty sure to be desired.

It is unwise to trust implicitly the stories about wonderful mines, though these doubtless exist. If genuine, they are often impossible to exploit without an enormous outlay of capital as was the case with the Cerro de Pasco mines; moreover, as thousands if not millions of people have been deceived about mines in the United States and in regard to many other money-making schemes, it is still more foolish to give credence to tales promising untold wealth in those distant countries. With the best of intentions the enthusiast is liable to be mistaken and deliberate fraud is common; therefore, caution is ever needed. Yet with careful investigation opportunities in almost any line may be found in some one of these rapidly developing countries, superior to those afforded in more thickly settled regions of the earth.

Concerning the Countries Individually.

Ecuador. In Ecuador, it may be noted, the United States stands second among importing nations. As a place for investment, enterprise, and residence, it has advantages and disadvantages. The coast region, on account of excessive rainfall, humidity, and heat, has a less agreeable and healthful climate than the rainless Peruvian shores with their moderate temperature; malaria and yellow fever being endemic in Guayaquil, though probably not everywhere on the coast.

The sierra and montaÑa regions of the two countries are quite similar, the high valleys of the sierra district enjoying a healthful and delightful climate. The natural resources resemble those of Peru, although the chief exports are dissimilar. Ecuador’s cocoa plantations are her largest source of wealth and supply her principal export. Vegetable ivory, fruit of the tagua palm, is another important article of production, most useful in making buttons. The manufacture of Panama hats is an industry long flourishing. Some coffee and rubber are exported, also hides; and sugar cane is raised. Rich mineral resources are undoubted; gold, mercury, copper, iron, coal, lead, platinum, and silver; these still undeveloped; petroleum and sulphur are found. Many manufacturing industries are carried on in a small way, but such goods are mainly imported: textiles, food stuffs, clothing, drugs, boots and shoes, paper, leather, crockery, vehicles, etc., are some of the importations, with material for railroad building and rolling stock. As the development of the country is regarded as twenty-five years behind that of Peru, it would naturally afford better opportunities in some directions and poorer in others. Railroads are planned in several directions.

Peru. The Republic of Peru presents probably the greatest variety of climate, soil, and productions, to be found in any portion of the globe. Along its 1200 miles of coast may be raised in the irrigated valleys nearly all tropical and temperate products. In the sierras will be found practically every variety of mineral, and in one place or another climates to suit every taste. Whatever one may desire is therefore to be procured within its borders, although not all points are equally accessible.

The coast lands present unique advantages for agriculture, in that the climate may be depended upon; there is no fear of drought, of sudden storms, or of frost, and though within the tropics there is no excess of heat.

Of 50,000,000 acres capable of irrigation in this section but 2,000,000 now have the facilities, and of these not all are employed; hence there is ample room. The difficulty is lack of capital and sometimes of labor.

The chief export of Peru is sugar; and if our Louisiana planters on account of tariff reduction feel like making a change, they will find in Peru an ample field where four tons to the acre are produced and a price of 1½ cts. a lb. will bring a profit.

Cotton plantations offer excellent opportunities; the best qualities grow well, Sea Island, Upland, etc.; also the native Peruvian which brings the highest price of all, being hardly distinguishable from wool. Yet, as it takes several years to come into bearing (it lives 10 or 15 years), the Upland which bears in six months is preferred by many. In southern Peru vineyards and orchards are a specialty, fruits most delicious, figs, melons, grapes, chirimoias, olives, and paltas, with vegetables, and with alfalfa, wheat, and maize. Tobacco is raised in various sections and coffee in many, none finer in the world.

The sierra country is full of minerals: gold, silver, lead, copper, quicksilver, tungsten, cinnabar, vanadium, anything you can mention. Every kind of coal is found, though as yet the mines are mostly undeveloped for lack of transportation facilities; oil of fine quality exists along the coast in Tumbes, in Puno near Lake Titicaca, and in other sections; borax in the Arequipa district; iron in many quarters; peat in JunÍn. On the plateau, besides minerals galore, are excellent cattle lands; many sheep are raised, Scotch shepherds and collies here looking after them; the native breed is crossed with imported merinos, making good stock, furnishing 5 to 8 lbs. of wool per head. Alpacas every two years yield from 6 to 9 lbs. of better wool, while the vicuÑa furnishes a smaller supply of still finer grade.

The east side of the mountains is rather difficult of access, but not too far down, affords a delightful climate; a colony willing to work would find pleasant homes in various localities. In valleys near Cuzco is the finest of cocoa, in the Chanchamayo or PerenÉ Valley back of Lima and Oroya are millions of coffee trees, lower down is plenty of rubber. Some is exported by way of Mollendo from the Inambari, Timbopata districts, more by Iquitos and ParÁ from the Ucayali, the Putomayo, and other sections. While men frequently say that they do not go to such countries for their health, it is indeed a pity that some seem to forget that they are human beings and treat the inoffensive natives in a manner far worse than savages. In these regions the heat and humidity are unpleasant and in limited sections unhealthy, though the dangers are by some over-estimated. Many papers and magazines publish sensational stories of adventure, often knowing them to be exaggerated; all books do not justly represent conditions. Many stories of hardship, when true, are merely evidence of ignorance and bad judgment, utterly foolish conduct quite inexcusable, in sections where others have experienced not the slightest difficulty.

Persons with moderate capital not interested in mining or agriculture might find it profitable to undertake manufacturing in certain lines. There are now in the country a few factories for cotton, woolen, biscuit making, chocolate, fruit preserves, cocaine, and matches; also flour mills.

There is opportunity for electrical power in many places, for installing electric lights, sewers, water pipes, etc.

Provisions are in certain sections extremely cheap, in others very dear, on account of transportation difficulties. Lima is called expensive and it would seem that eggs and chickens might be profitably raised near by, also dairy products and other supplies.

At present the chief exports from Peru in the order of their value are minerals, sugar, cotton, rubber, wool, petroleum, guano, Panama hats, hides and skins, ice, cocaine, coca, coffee. The leading imports are textiles, coal, machinery, etc. from the United States, machinery, wood, drugs, meats, bread-stuffs, shoes, coal, hardware, arms and ammunition, soap, vehicles, instruments and apparatus, general merchandise.

It should be noted in connection with Peru, that machinery and supplies for railroad construction and for mining are admitted free of duty; also as an item of great importance, that the export tax on rubber is less than one-quarter of that exacted by Brazil and a little smaller than the one fixed by Bolivia. For this reason the country is especially favorable for the extension of the rubber industry.

Bolivia. The products of Bolivia are like those of Peru except that its agricultural resources are as yet little developed. Hence there is more importation of food stuffs; flour is an article of export from the United States, as well as preserves and suet. Canned stuffs are useful to the mining and railroad people. Cartridges, leather goods, soap, kerosene, furniture, clothing, dynamite, firearms, copper wire, iron and steel, vinegar, Florida water, wood, agricultural tools, mining machinery, lard, cotton, cameras, sewing machines, typewriters are other imports.

Bolivia presents excellent opportunities for mining. Tin of first importance, silver, copper, and bismuth are now the chief mineral exports, although rich deposits of gold are attested.

The montaÑa country presents conditions similar to Peru, for the rubber industry, for the raising of coffee, coca, quinine, and other products. A grain called quinua, cultivated on the plateau, is said to be more nutritious than wheat. The alpaca and vicuÑa here flourish, the former supplying 15 lbs. of wool every other year. Persons who find the plateau region cheerless might enjoy the agricultural section part way down the eastern slope of the mountains; thus a San Francisco gentleman, many years resident of the Garden City, Cochabamba, over whose climate and future prospects he speaks with enthusiasm. Tarija, farther south, has a delightful climate and equal prospects.

One American living on the plateau has been doing a thriving business by making monthly trips to the interior 150 miles to the east, selling goods at the haciendas and the Indian villages, $10,000 worth on a trip, and bringing back fruit and vegetables to the cities above.

The several lines of railway just completed and several more in construction make certain the immediate development and rapid progress of this country. The possibilities for the production of wool are very large and also for cattle raising. The climate of a large part of the country is healthful and agreeable, and residence in La Paz and other cities is enjoyed by many Americans. Bolivia’s rapid development and prosperity is assured.

Chile. The country of Chile, curiously unique in shape, being excessively long and thin, extends over 2000 miles from north to south, with a width of from 105 to 248 miles from east to west. Although so narrow, it has each way three well marked divisions: from north to south, the rainless, desert and nitrate region, within and near the tropics; the temperate central section, a rich agricultural district with considerable rainfall; and the southern portion, with too much precipitation, rain, snow, and fogs, largely a forest land with some swamps and grazing country. Along the entire shore runs the Coast Cordillera with an altitude ranging from 1000 to 6000 or 7000 feet; then comes a plateau or valley, in the far south a drowned valley with straits and fjords, and at the east the great Andes Mts., the height of which forms the eastern boundary line.

A variety of climate and scenery is obviously presented, agreeable to dwellers in the Temperate Zone. Aside from the strictly tropical productions, almost everything found in Peru and Bolivia is here provided; minerals galore, especially copper, iron, and coal, with gold, silver, etc., in addition to the world famed nitrates, and iodine. Petroleum and natural gas have recently been discovered. Noted, like California, for its fine fruits and vegetables, the central section affords ample field to increase their production. Here, too, the raising of grain and of forage plants is extensively practiced; stock farming is a great source of wealth, Chilian horses are of noted excellence, and cattle flourish. Viticulture and apiculture are profitable, the export of honey being important. At the south, the growing lumber business offers a fine field to experts, as well as the valuable fisheries. The already large sheep raising interests are chiefly in the territory of Magellan. The canning industry both as to fruits and fish may be developed with great profit. Manufactured goods are produced to the extent of $130,000,000 worth a year. Railway building, which has been rapidly progressing, will for some years continue to be an important field of labor. The Government has planned to expend within this decade many millions of dollars for public works, hydraulic and maritime, for irrigation, public buildings, and railways.

The imports include such things as sugar and coffee, also petroleum from Peru; from the United States, mineral products, especially steel and coal, with machinery of various kinds, paper, vegetable produce, textiles, chemicals, etc.

Presenting conditions similar to our own West Coast, including the earthquakes, the British and German settlers in the country have as much enthusiasm for their new home as have immigrants to California. In scenery, climate, and opportunities, Chile offers unusual attractions.

I had forgotten to state that valuable oyster beds exist in the Gulf of Ancud, and that on the island of Chiloe two crops a year of excellent potatoes may be grown.

Argentina. Argentina with its great plains is entirely different from the West Coast countries. From its configuration, its development, especially its railroad building, has been a far simpler proposition. It was easy to raise cattle and with the profits thus obtained to cultivate immense agricultural properties. Almost every kind of vegetable production is to be found in this great Republic, and the rewards of agriculture and stock raising have been quite equal to the wealth of the mines elsewhere and far more useful.

The plague of locusts is an occasional drawback, but not serious enough greatly to interfere with the grand total of production. As the boundaries on the west extend along the height of the Andes, some mineral wealth exists on their slopes, but the possibilities in stock and wheat raising have been too attractive for much attention to be devoted to mining matters. The agricultural products, wheat, oats, and linseed run up into millions of tons; the quantity of exports of these surpasses in value those of the United States, while that of meat exported is vastly greater. With their small population relative to the extent of territory it is certain that for many years Argentina will raise cattle and sheep enough to help out the more thickly settled portions of the globe. To enter into such enterprises today of course capital is needed, though some of the present day millionaires went thither with nothing and worked their way to fortune. Wages for mechanics are good, and in some other lines, but expenses also are large. According to the number of inhabitants Argentina has more railways than the United States, though not in proportion to the extent of territory. Almost everything is imported into the country except meat and agricultural products, our share of the imports being less than half that of Great Britain.

The northern and southern sections of Argentina still afford splendid opportunities to the pioneer, presenting a wide choice of climate and variety of employment. In the tropical and sub-tropical regions of the north are immense forests for exploitation with quebracho, laurel, palms, and woods in endless variety, lands suitable for the culture of coffee, sugar cane, yerba mate, cotton, rice, hemp, mandioca, and banana, and in places farther south or on uplands, soil for barley, wheat, corn, alfalfa, tobacco, the vine, etc.

The central pampa is of course the especial region for cereals, wheat, corn, and flax, and this is not entirely pre-empted. In Patagonia at the south there is a great field for raising cattle, sheep, goats, horses, guanaco, and the ostrich, as for alfalfa, wheat, and barley, though in the greater part irrigation is necessary for agriculture. With moderate capital pioneers of experience and skill should be able to amass large fortunes.

From lack of coal, if not of water power, it is probable that agricultural and animal products will long continue to be the chief exports of Argentina and that manufactured goods will be the principal imports. Textiles and manufactures of these are of the greatest value, iron and steel articles come second, railway cars and equipment and other vehicles third, then come building materials, earth, stone and coal, and so on, every kind of merchandise in use in a civilized country. Goods that sell in New York and Paris are likely to sell in Buenos Aires, only—the Pure Food Law is strict. Chicago hams are barred, though British hams are admitted.

Our farming machinery and tools have been largely sold, yet by some the machinery is called too light to last and an English make is preferred. An Australian machine, called a cropper, a thrasher and harvester combined, has been received with much favor. Duties generally are very high.

For successful competition in foreign markets, the highest grade of our goods must be presented and business contracts strictly carried out.

Paraguay, with a healthful sub-tropical climate, possesses splendid forests with woods similar to those of the Argentine Chaco, great plains supporting many herds of cattle, and land capable of producing excellent cotton, tobacco, fruit, and all kinds of tropical growths. The yerba mate which grows wild, but may be cultivated, is one of the chief exports, bound to increase rapidly, as the beverage, more healthful than tea or coffee, is extremely popular even with the European immigrants, and in foreign countries. Hides, quebracho extracts, and timber are exports of still greater value. The character of the imports is much the same as in the neighboring countries. Railroad building is going on, and in spite of recent war, internal development is in progress. Railway material is free of duty as is the case also with agricultural and industrial machinery, ship building material, wire fencing, etc.

Uruguay, with a fine temperate climate and a pleasant rolling country, is attractive to settlers with an eye to cattle raising or agriculture. Americans of this class, as well as business men and investors in any line, are cordially welcomed by Uruguayans, and finding the atmosphere more homelike than in some other places they are well content to stay. While agriculture and the live stock industry are the chief activities, there are local manufacturing interests which do not, however, begin to supply the market. Railway extension is in progress, and the navigable rivers are an important accessory.

By far the greatest export is animal production, including wool, skins and hides, meat and meat extracts, etc., while agricultural products are a distant second.

The imports are similar to those of Argentina, including practically everything which it does not export.

Brazil, like Peru, embraces within its borders an immense variety of resources, and a considerable though smaller diversity of climate. On the highlands of the tropics it is comfortably cool, as well as in the south. In many quarters it is temperate and even subject to frost, in a few places to snow.

The magnitude of its wealth in rubber, coffee, and all tropical and sub-tropical productions is well understood; the richness of its mineral deposits is less known. Still less perhaps is the fact that Brazil is larger than the United States proper, and that it contains six cities of 100,000 or more population, including one of 400,000, SÃo Paulo, and Rio with approximately a million.

Everything is included within her boundaries, and whatever one’s taste in business, apart from polar exploration, there is room for its gratification here—opportunities for the settlement of colonies in delightful climate and surroundings on the richest soil, if persons care to indulge in agriculture, and locations equally favorable for entering into mining or commercial industry. Cattle raising is a growing occupation. Food stuffs in Rio being very dear, market gardening could be engaged in to excellent advantage in many spots on the highlands at no great distance by rail from the capital. A similar opportunity exists near Buenos Aires, though as land in the vicinity is held at a high price it would be necessary to go farther out on the railway, or across the river into Uruguay.

The coffee plantations of Brazil are already so extensive as to make entrance into that business undesirable if not impossible, except by the purchase of plantations already in bearing. Aside from coffee and rubber, the chief agricultural products are rice, cotton, sugar, yerba mate or Paraguay tea, mandioca, and cacao, or cocoa. Many manufactured goods are now produced, mainly of the ordinary necessities of life, leaving plenty of room for importation. It is desired to increase such industries. Inducements are offered by the Federal Government for establishing ironworks, the State of Rio has granted large privileges to the first flour mill, and a subsidy to a firm making paper from the reed papyrus which grows all along the coast. Manufactures of rubber would be very profitable on account of the 20 per cent export tax on rubber and the high tariff on imports. Steam laundries, fruit canneries, chemical works, and other industries may be inaugurated to advantage in various places.

From the United States is imported a great variety of articles, railway cars and locomotives, automobiles, machinery of many kinds, sewing machines, typewriters, apples, general merchandise, and other articles without end.

Railways are being rapidly extended and planned for the future, and aside from the rubber business every kind of industry and commercial activity may be pursued amid agreeable and healthful surroundings.

It is desirable that one wishing to enter into business of any kind in South America should make the tour and see for himself the character of the country and the opportunities offered. At the very least, he should read a number of the many books which have been written, although some of these contain a few errors and others which have been published ten years give wrong ideas on account of the rapid changes; from perusing several of the latest works a fair idea of conditions will be gained. Also the poor consuls will be grateful, both those of the United States in foreign countries and their representatives here, if people will at least use an atlas and a geographical reader if nothing more before writing letters, so that they will not bother these hard-worked officials with absolutely foolish questions. It should not be necessary for consuls to give information which every schoolboy ought to possess, although I fear he does not.

When children and grown people are ignorant of the names of the capitals of the various States in the Union, it is perhaps too much to expect them to know whether Lima is on the East Coast or the West, or whether Argentina is a breakfast food or a fish. If my labors incite others to seek further information and especially to make the delightful South American Tour, I shall feel that I have performed a genuine service.