Brazil is so immense, situated between the fifth degree nort

SELLING LATIN AMERICA

[Illustration]

SELLING LATIN AMERICA

A Problem in International Salesmanship

WHAT TO SELL AND HOW TO SELL IT

BY

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

_Illustrated from Photographs_

[Illustration]

BOSTON

SMALL, MAYNARD & COMPANY

PUBLISHERS

_Copyright, 1915_

BY SMALL, MAYNARD AND COMPANY

(INCORPORATED)

Printers

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

FOREWORD

I made the acquaintance of Doctor W. E. Aughinbaugh about eight years

ago, when I was in charge of the advertising department of a large

concern doing an international business. The doctor came with us to look

after the export trade, especially in the West Indies and South America.

My work naturally brought me into close association with him, and I soon

began to appreciate his unusual ability in many directions and his

special fitness for the position he occupied. There seemed to be no

phase of merchandising in far-off markets with which he was not fully

conversant; nor did this knowledge relate solely to Latin America. He

had previously travelled the distant markets of the Orient in the

interests of an American house whose products he successfully introduced

there and to him the Far East was an open book.

He has been in Egypt eight times on business missions. He has travelled

Somaliland, Palestine, Asia Minor, Morocco, Tunis, Tripoli, Algiers,

South Africa, Persia, Arabia, Afghanistan, Cashmir, Beluchistan, India,

Assam, Burma, Siam, China, Cochin-China, Japan, the East Indies and all

over Europe with the single exception of Russia. The doctor also spent

two years of his restless life in the Far North where a business mission

of importance took him into Iceland, Greenland, Labrador, Newfoundland,

Cape Breton Island, Prince Edward Island and the Hudson’s Bay Country.

As to the West Indies and South America, he has been not only to them,

but through them many times and in every habitable spot where business

was to be done. Some idea may be gained as to the frequency of his

visits to South America by mentioning the fact that he has made

thirty-six trips across the Equator.

Dr. Aughinbaugh talks about the markets of foreign countries with the

authority of long experience for he has been engaged in these special

fields for more than twenty years; yet he is still a young man with a

modern viewpoint. He speaks the languages of many countries and speaks

them well. His information is first-hand, reliable data gathered on the

ground where he lived and worked, whose people he knew and could speak

to in their own tongue, not the unreliable, superficial vaporings of

some dilettante globe-trotter who has given the high-spots of

civilization the “once over” and therefore considers himself a competent

authority to write upon the commerce, customs and manners of foreign

countries the very languages of which he does not understand without the

aid of an interpreter, or who could not find his way back to the railway

station or dock without the assistance of a guide.

Doctor Aughinbaugh is no such lightweight. He has not written this book

because he believes he knows it all. Left to himself he would never have

written it. It was only after repeated urgings on the part of some of

his friends who appreciated his ability to write an unusual book, that

he consented to undertake the work, and then he did so under protest.

It may be asked with pertinence how a man could travel in the interest

of one line and yet be in possession of so much information relating to

every other line; or how one could master the intricacies of foreign

banking and credits and still attend to his business. The answer to all

of this is that no man can successfully negotiate foreign markets unless

he is more than a mere “order taker.” As to the doctor’s ability to

measure the requirements of a market all the way from cereals to

concrete, that may be accounted for by the fact that he is both a

physician and a graduate of the law, and while he never practised at the

bar to any great extent he did have considerable experience in medicine,

a profession which developed a naturally analytical mind, so that he

looked at things with the eyes of a student and from the viewpoint of

the trained diagnostician. For six years he followed medicine in Latin

America, finally giving it up to accept an offer from a large company

who compensated him accordingly. His experience in that line alone took

him all over the world and the ramifications of the business brought him

into close contact with the marketing of nearly every other commodity.

But even had this not been so, he is the sort of man who would have

sensed a business opportunity because he is naturally a keen observer

and everything interests him. He is the type of man who absorbs

information; he does not have to be shown—he sees.

Here, then, is a man possessed of a fund of particularly desirable

information—especially valuable to-day when Europe is war-mad and, in

her sanguinary frenzy, has left open the door of opportunity to peaceful

Uncle Sam. Why not put this information in concrete form for the benefit

of American commerce?

These considerations were put up to the author by some of his friends

who knew him to be a keen, accurate, analytical observer, a writer and a

_raconteur_ of more than ordinary ability, and this book was the result.

Probably never—let us fervently hope never for the same reason—will the

United States have another opportunity such as the present one, to enter

those fruitful fields to the south, where Europe in general, and Germany

in particular, has reaped a golden harvest for so many years.

A careful reading of this book—not a difficult matter, for unlike most

works on commerce it is full of lively interest—will be profitable to

every business man interested in the subject of Latin America. It will

be valuable to those who are equipped or willing to prepare themselves

to cope with conditions as they really are, and just as valuable to

those who are not, for it may save them from the costly mistakes of

experimentation in foreign fields.

MAURICE SWITZER.

New York, March 20, 1915.

CONTENTS

CHAPTER PAGE

I GENERAL REMARKS ON FOREIGN TRADE 1

II BRAZIL 13

III ARGENTINE 31

IV URUGUAY 49

V PARAGUAY 57

VI CHILE 67

VII BOLIVIA 79

VIII PERU 91

IX ECUADOR 106

X COLOMBIA 114

XI VENEZUELA 126

XII CENTRAL AMERICA 138

XIII MEXICO 156

XIV CUBA 168

XV SANTO DOMINGO 176

XVI HAITI 182

XVII PORTO RICO 186

XVIII THE GUIANAS: BRITISH, DUTCH AND FRENCH 191

XIX EUROPEAN POSSESSIONS IN THE WEST INDIES 199

XX FOREIGN TRADE WITH LATIN AMERICA AND HOW IT DEVELOPED 212

XXI METHODS OF DOING BUSINESS 224

XXII THE SALESMAN AND THE CUSTOMER 242

XXIII CUSTOM-HOUSES AND TARIFFS 266

XXIV TRADE MARKS 276

XXV FINANCE AND CREDITS 288

XXVI PACKING AND SHIPPING 311

XXVII ADVERTISING 331

XXVIII RECIPROCITY 345

XXIX HEALTH PRECAUTIONS 368

APPENDIX 377

INDEX 401

ILLUSTRATIONS

PAGE

THE HARBOR OF RIO DE JANEIRO 14

AVENIDA RIO BRANCO AND OPERA HOUSE, RIO DE JANEIRO 28

TAKING PRODUCE TO THE STATION, ARGENTINE 36

GRAIN ELEVATORS, BUENOS AIRES 44

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

A COUNTRY STORE IN COLOMBIA 60

VALPARAISO 68

LAKE TITICACA AT PUNO, PERU 86

OROYA LINE, PERU 98

A COMPARISON OF CLIMATES 224

DRYING HIDES AND SKINS IN ARGENTINE 240

AVENIDA CENTRAL, RIO DE JANEIRO 262

CALLE RIVÀDAVIA, BUENOS AIRES 288

A PACK-TRAIN ON THE ANDES TRAIL IN COLOMBIA 312

LLAMAS IN CERRO DE PASCO, PERU 316

CHILEAN INFANTRY. _See page 220_ 340

ADVERTISEMENT OF COGNAC BISQUIT 340

SOUTH AMERICAN APPRECIATION OF ADVERTISEMENTS “MADE IN

U. S. A.” 342

THE PLAZA HOTEL IN BUENOS AIRES 368

MAPS

SOUTH AMERICA _Frontispiece_

CENTRAL AMERICA 138

MEXICO 156

THE WEST INDIES 168

SELLING LATIN AMERICA

I

GENERAL REMARKS ON FOREIGN TRADE

War completely changes commercial currents. The victor takes the

established and profitable trade, leaving to the vanquished the harder

lines of business and the development of new fields. This is as true of

the first war recorded by history as it will be of the last.

As an illustration of the veracity of this statement it is only

necessary to recall our war with Spain. Prior to her defeat, Spain

controlled the bulk of the banking and commerce of the Philippines, Cuba

and Porto Rico. To her possessions she exported wines, foods,

manufactured articles, textiles, drugs, perfumes, canned goods, shoes

and hats, receiving in exchange their sugar, tobacco and coffee.

To-day the United States consumes all of these exports, while the

requirements of the three countries are supplied by America, which also

does their financing through banks organized in these possessions, and

capitalized with American money. To be more specific and by way of a

concrete example let me mention Cuba, which in 1913 exported

$165,000,000 worth of products, all but 15 per cent. of which was taken

by the United States, the amount shipped to Spain being about

four-tenths of one per cent. During the same period of time she imported

goods to the value of $132,000,000 of which we supplied 65 per cent.

against Spain’s 8 per cent. Since 1902, Cuba’s foreign commerce has

increased 250 per cent. due absolutely to the part played by the United

States in the Spanish-American war. The same condition of affairs in

exports, imports and other lines is equally true, although not on such a

large scale, of course, of the Philippines and Porto Rico.

The Napoleonic wars gave to England the strong position she now occupies

in the financial and commercial world. Her bankers and shippers,

merchants and manufacturers, with one accord grasped the opportunity

that presented itself then and have held the supremacy thus gained for

more than a century.

Perhaps it was the recollection of what gave Great Britain her start in

this field which led the London _Spectator_ to remark, at the outbreak

of war in 1914:

“The present war gives the United Kingdom an excellent opportunity to

capture the export and import trade of Germany and Austria-Hungary.”

If England, engaged in the most desperate and expensive war she or the

civilized world ever has known, with her enormous resources taxed to

their utmost, saw an “opportunity” for trade expansion, how much greater

is the chance in this line for an absolutely neutral power, populated

with keen business men, and provided by Nature with unparalleled

productive possibilities.

The war in Europe developed the most remarkable business situation for

the United States ever presented to any nation. The virtual closing of

all the doors of the export and import trade of the Old World and the

almost total dependence heretofore of the Far East and Latin America,

especially, on Europe for finance and trade connections made the war

truly the psychological moment for us, as a nation, not only to overcome

the lead of the European commercial world, but also to cement by other

than ties of business the bonds of friendship due us not only on account

of our ideal geographical position, but also because of our similar

republican form of government.

By embracing this extraordinary opportunity—apparently almost created

for our express benefit, we being the only people able to profit by

it—we can make the nations which formerly depended on Europe for support

in their trade ventures our business allies, our sincere friends and

well-wishers, and at the same time bring about a new trade alignment so

that all America will reap the benefit.

Let us briefly consider some of the enormous possibilities of foreign

trade in Latin American countries.

Latin America—that is, the countries of Central and South America,

together with Mexico, Cuba, Santo Domingo and Porto Rico—comprises

twenty distinct states, with a total population of about 65,000,000, a

large portion of whom are Indians and half-breeds—a fact which we should

not lose sight of in view of the tremendous imports.

Statistics recently compiled by the Pan-American Bureau show that these

countries, in 1913, conducted a foreign commerce valued at

$2,870,178,575. Of this the imports were $1,304,261,763, and the

exports, $1,565,916,812, thus giving Latin America a favorable balance

of $261,655,049.

Ten of these countries alone purchased goods to the amount of

$961,000,000. Of this sum Great Britain supplied $273,000,000; Germany,

$180,000,000; France, $84,000,000; Italy, $54,000,000; Belgium,

$47,000,000, and Austria-Hungary, $8,000,000. The United States exported

to these ten countries last year $160,000,000 and imported from them

$250,000,000. Brazil, in 1913, imported $15,000,000 in textiles alone,

of which amount the United States supplied only $500,000. In the same

length of time Argentine imported goods to the amount of $468,999,996,

of which amount less than 8 per cent, was supplied by this country. The

United Kingdom exported to all of Latin America $23,500,000 worth of

coal in 1913, the United States, during the same period of time,

$750,000.

Practically the same story in all lines of exports could be told of

these countries, demonstrating that individually in nearly all cases the

United States is the largest consumer of their raw or finished products

and the smallest exporter of the goods they most require.

Fearful that some one may infer after looking at these figures that

European countries have preferential duties with Latin America, let me

state most emphatically that this is not the case. With one single

exception no favoritism is shown any of the trading nations, in the

matter of import fees, and in that instance we benefit by it. Brazil

makes a decided preferential tariff in favor of some of our goods in

view of the fact that we are the largest consumers of her chief

product—coffee.

Everyone of these countries is in process of development and expansion.

They have in profusion the things the busy world most needs. Their mines

are the richest known to man. Some have been worked for thousands of

years and are still productive. Their broad fields are destined to make

them the granaries of the world. Their miles of pasture lands and their

extensive acreage mean that Europe and the United States will depend

upon them for meat. Their vast virgin forests are capable of supplying

humanity with cabinet and other woods for several centuries. Their trade

and imports must therefore increase. It is apparent that they cannot

diminish. We cannot as a nation afford to remain indifferent any longer

to their possibilities and opportunities.

Very naturally there have been many objections on the part of our

business men to going after this trade which all of Europe strained

every resource to acquire and control. It was urged that we had all the

business we required; that we lacked foreign banking facilities; that

our merchant marine was small and inefficient; that to go abroad for

trade meant learning new languages, acquiring new customs, opening new

accounts, taking more risks. These conditions were equally true when the

European merchant decided to enter this field. He met and overcame all

these difficulties under far more adverse circumstances than exist for

us, to-day. His experience in this territory has charted the path for us

to follow, and if we take advantage of the beacons he has erected we

shall be saved from many pitfalls.

Latin America with the things the world most requires—wheat, meat, wool,

coffee, sugar, nitrates, minerals, woods—can never collapse completely

through any financial crisis. Furthermore its power of reviving quickly

from any unfavorable panic is truly phenomenal. I recall Venezuela, the

year she terminated her bloodiest revolution under Castro, harvesting

and exporting a bumper crop of coffee, which immediately cleared up her

monetary depression, and this rapid convalescent condition has been

duplicated time and time again after every period of internal trouble

experienced by all of these countries.

Nature has been bounteous in her gifts to these favored lands of the

sun. If in a given locality the soil is not fertile, it is rich in

mineral wealth, or covered with luxuriant forests. Throughout Latin

America large and small rivers afford easy and cheap means of

transportation. Drought or excessive rainfalls are comparatively

unknown. Despite the fact that a majority of the population lives

primitively, epidemics of a severe nature have been few and far between.

Revolutions, formerly the blight on these lands, are becoming rare and

in most of these countries there have been no such uprisings or

demonstrations of this character for more than twenty years.

The opportunities for successful business in almost any chosen line in

Latin America are unlimited, provided one uses ordinary judgment and

simple tact in the undertaking. Furthermore less capital is required to

start an enterprise than in lands where competition is keener, and less

energy necessary to insure success. The truth of these statements is

demonstrated most completely by the fact that millions of Europeans—many

of them uneducated and possessed of no great amount of ability or

money—have settled throughout these lands and established themselves in

prosperous occupations.

The greatest possibilities exist along the lines of general development.

All these countries are new; most of them practically unexplored—many of

them not even having their boundary lines definitely established. Think

of what must be the opportunities in Brazil—a country larger in area

than the United States, and supporting only 20,000,000 people—or of

Argentine, spreading over almost as much territory as Europe, excepting

Russia and Austria-Hungary, with a population slightly more than

7,000,000. It is to these countries that overcrowded Europe must come

for elbow room—for a glimpse of the sun.

Once a business or a plant is established in Latin America one need not

have the intense fear of bitter local competition. These people have

never been manufacturing or creative in their desires, and the chances

are, if we are to predicate their future from their past, that they

never will become competitors in any of these fields. Climatic

conditions, racial and inherited traits have made them follow the lines

of least resistance and they have become cattle raisers and large

farmers, while comparatively few have entered commercial life. This

being true it follows that these countries are ideal for those desirous

of leading an active commercial or manufacturing career.

All of Latin America is in the process of awakening. They are building

railways, making vast municipal and national improvements, exploiting

their natural resources, modernizing their agricultural methods. The

advent of the foreigner has been potent in raising their standard of

living. If these people were to raise their standard of living to that

of the United States at the present time, it would be the equivalent, so

far as market possibilities are concerned, to creating three new

Americas. Each day sees some progress in this direction, and with it a

desire for more of the comforts of modern civilization—for more of the

things which go to make up the full and complete life. This means

employment for their people—civic progress—and prosperity.

Their markets are easily reached, the merchants willing to buy, our

producers capable of providing the things they require. Their first

orders may be small, but they become enormous buyers when they find the

article adapted for their needs. The European marts which might have

supplied the things these nations require in their growth cannot do so

for a long time to come, thus giving us an ideal opportunity to capture

these markets and at the same time introduce American methods throughout

the length and breadth of the land.

II

BRAZIL

The Republic of the United States of Brazil, including the Acre

Territory, is the largest of the South American countries and if we

include Alaska and our island possessions is really larger in area than

the United States of America, by about 200,000 square miles. It is

fifteen times larger than Germany and sixteen times larger than France.

With the exception of Ecuador and Chile its frontier touches every

country of South America, being bounded on the north by British, French

and Dutch Guiana and Venezuela; on the west by Colombia, Peru, Bolivia,

Paraguay and Argentine; on the south by Uruguay, while the Atlantic

Ocean forms its eastern and a portion of its northern limitation. Its

most eastern point is but three days’ sail from the western coast of

Africa. It is the fourth largest country in the world, and is widest

between the Equator and the Tropic of Capricorn, covering an area of

3,292,000 square miles.

The population has been variously estimated at from 20,000,000 to

24,000,000, of whom less than 1,000,000 are aborigines, thus giving it

about one-fifth of the population per square mile of the population of

the United States of America. Its inhabitants are white, black,

mulattoes, Indians and mixed breeds, a heavy percentage being

descendants from the slaves imported originally from Africa, slavery in

Brazil having been abolished in 1888.

The language of Brazil is Portuguese except among the Indian tribes,

each one of which has its own dialect. These Indians are to be found in

the interior and the remote districts, and are a negligible quantity as

far as trade is concerned, living primitive lives and having few wants

that the rich country and rivers cannot supply.

[Illustration:

The Harbor of Rio de Janeiro

]

Brazil was discovered April 22, 1500, by Pedro Alvarez Cabral, a

Portuguese explorer, but no definite attempt was made to settle it, or

assume governing power by the Portuguese until 1549, fifty-seven years

after Columbus had been to America, when Portugal awoke to the great

possibilities of the country and dispatched her first Governor General

in the personage of Thome de Souza.

During the century following the arrival of its first constituted

governor, Brazil became the scene of numerous attacks and invasions on

the part of the French, Dutch and British, each one desirous of

acquiring portions of its territory, having been attracted by the

current stories of its great wealth and latent resources. For a time

both France and Holland established themselves in a small way within its

boundary, but ultimately abandoned their outposts.

From 1640 to 1808 Brazil was governed by a Viceroy, who resided in Rio

de Janeiro. The victorious armies of Napoleon and their progress across

the Spanish Peninsula ultimately caused King John to abandon his capital

in Portugal and flee to Brazil, where he established himself in Rio de

Janeiro (in 1808), and ruled Portugal from this one of his possessions.

This is the only instance in history of any portion of Europe ever being

ruled from the western continent. When peace came to Europe, King John

returned, leaving Brazil under the regency of his eldest son Dom Pedro,

who in 1822, proclaimed Brazil independent of Portugal, and established

himself in power as Emperor, the first and only instance of such a form

of government in South America. Dom Pedro was forced to abdicate in 1831

in favor of his son Dom Pedro II, who after reigning through a regency

assumed the throne on becoming of age in 1840. It is unnecessary to

detail the causes that led to the bloodless revolution of November 15,

1889, which ended his reign and by means of which Brazil proclaimed

herself a republic, adopting a constitution patterned after our own and

a government comprising a President, with legislative powers vested in a

Congress composed of two bodies, a Senate and a Chamber of Deputies.

Brazil is so immense, situated between the fifth degree north and the

thirty-third degree south, and its topography so varied that it has all

kinds of climates excepting extreme cold. Lying in the temperate and

tropical zones one would incline to the belief that it would be more or

less warm, but its many rivers and mountains, its high table-lands and

plateaus exert a beneficial influence in this regard and materially

modify what otherwise would be extreme degrees of heat.

More than half of Brazil is an elevated plateau, varying from 2000 to

3000 feet in altitude. It has four distinct mountain ranges, which

deflect its rains and form vast watersheds for irrigating the fertile

lands at their base. The eastern and central portions are elevated while

the chief characteristics of the north and west are its fertile plains

and valleys.

The coast of Brazil straggles along for over 5000 miles and is provided

with numerous natural harbors, where the earlier settlers established

cities which have grown and prospered, the principal ones from the north

to the south being Belem, or Para, San Luiz, Parnahyba, Fortaleza or

Ceara, Natal, Parahyba, Recife or Pernambuco, Maceio, Aracaju, São

Salvador or Bahia, Victoria, Rio de Janeiro, Santos, Paranagua, São

Francisco, Rio Grande do Sul and Porto Allegre. As a rule each of these

ports is the terminus for a railway system penetrating the interior,

designed solely for the purpose of bringing the products to market and

carrying supplies and necessities to the part of the country dependent

upon it. There are practically no trunk or interstate lines, but plans

are now formulated to overcome this condition.

Manaos is an inland port of Brazil, famous as a trading depot and one of

the centers of the rubber industry. It is located on the Rio Negro, at

its mouth where it empties into the great Amazon, one thousand miles

from the Atlantic Ocean, and maintains direct steamship connection with

the United States and Europe as well as the other ports of Brazil.

Perhaps no other country in the world is so well provided with rivers as

Brazil. The mighty, muddy Amazon, the greatest river in existence,

practically traverses the country from east to west in its 3850 miles

journey to the sea. Some idea of its strength and volume may be gained

when I state that its yellow waters color the Atlantic for over 100

miles beyond its mouth, and freshen the salt water for a distance of 180

miles. Emptying into this Queen of Rivers are more than 200 tributaries,

over 100 of which are navigable, the famous Rio Roosevelt or River of

Doubt forming one of the number. There are over 10,000 miles of

navigable waterways for ocean vessels and 20,000 miles for light-draft

boats.

Brazil is a pastoral country and the indications are that it will always

remain so. Its vast savannahs and fields have formed ideal locations for

raising cattle and sugar, while its mountain sides and plateaus are

unparalleled for the growth of its staple product—coffee, the average

yearly crop of which is the enormous amount of 1,596,000,000 pounds.

Rice, cotton, sugar, tobacco, matte (a species of tea for native use),

mandioca (a starchy tuber from which a bread is made much liked by the

native) and cacao are also extensively grown. India rubber, the use of

which was early known to the Indians of Brazil, to whom it is indebted

for its name, is the second leading product of this remarkable land. The

tree, the juice of which produces this twentieth century necessity,

grows wild in the northern portion of the country, although it can be

successfully cultivated. No effort is made to preserve the trees when

once tapped, and the rubber prospectors are continually going farther

and farther into the interior in search of new districts. The trees are

from three to twelve feet in diameter, of slow growth, indigenous to the

region of the Amazon and its tributaries, growing wild, scattered

through the jungles and tropical shrubbery.

The forests of Brazil are practically virgin. They abound in dye,

cabinet and hard woods and the opportunities for the development in this

field alone are enormous. Due to the fact that the country has a

wonderful series of aqueous arteries the transportation problem to mills

and markets is easily solved and the waterpower can be used in preparing

the timber for shipping.

Brazil has at present more local factories than all the other Latin

American countries combined, forty per cent. of her manufactured

articles being cotton goods, which find a ready market. In the Federal

District of Rio de Janeiro, five of these mills have eight thousand

operatives, producing yearly about 80,000,000 yards. Petropolis has four

mills and São Paulo twenty-five with a total output of nearly

100,000,000 yards. The number of establishments in this industry alone

amounts to 3664, giving employment to 168,760 hands, with a total yearly

output of 275,000,000 yards of goods.

Of late the shoe-making industry has developed extensively. In 1913

there were in all of Brazil 4524 factories employing ten or more

operatives, with a total invested capital of $18,857,000. These plants

are nearly all operated by American machinery, many of them under

American superintendents, the demand for American equipment being

sufficiently large to warrant the big shoe machinery and shoe-finding

houses of New England in maintaining their own offices and carry their

own stock in the larger cities devoted to this business.

Brazil is wonderfully rich in mines of precious and semi-precious

stones. Among the semi-precious stones to be found are achroite,

actinolite, agates, amethysts, analcime, anatase, andalusites,

anthophyllite, apophyllite, apatite, aquamarines, cymophane, citune,

columbite, desemine, iolite, jasper, opals, ruby, sapphires, spinel,

topaz, tourmalines. There are many deposits of minerals, such as copper,

iron, silver, gold, arsenic, barium, bismuth, cinnabar, cobalt, galena,

manganese, nickel, platinum, tin, and wolframite. There are also rich

veins of asbestos, coal, soapstone, sulphur, salt, marble, mica, and

evidences of petroleum.

Gold has been mined in Brazil for over 300 years, the principal deposits

being in the State of Minas Geraes. A mine near the Honario Bicalho

station produced from 1888 to 1912, over $26,000,000 worth of gold and

as late as 1911, paid a dividend of 10 per cent. An English authority

has estimated the total output of gold to date from all mines at

$1,000,000,000.

Brazil is reputed to be the second largest diamond-producing country in

the world, the Brazilian stone being considered fifty per cent. better

than others owing to the constant attrition it has undergone in

prehistoric days. At one time more than 40,000 men were employed in this

industry in Minas Geraes alone. The best diamond fields extend from 10

degrees to 25 degrees south latitude and many enormous and high-grade

stones have been discovered, the total amount exported in 175 years or

up to 1903, being estimated at four tons. Edwin Streeter in his book on

precious stones, says that “The State of Minas Geraes produced in the

first twenty years 144,000 carats. Up to 1850,—5,844,000 carats worth

$45,000,000 were sold and some $10,000,000 stolen from the mines by

employes.” As an evidence of the fact that these mines are still

productive, there were registered 456 claims in 1909 in the Diamanta

Districts, which produced $1,000,000 worth of gems. In 1911 there were

registered in the State of Minas Geraes 437 claims.

Travel along the coast and to the cities located on the railway lines is

comparatively convenient and comfortable although very expensive. In the

interior and from the beaten paths it is difficult and filled with

hardships.

Living is high—much more so than in the larger cities of the States or

Europe. Hotels are far from the standard one is accustomed to in towns

of corresponding size, throughout the world—a statement equally true of

all Latin America.

At first the monetary system of Brazil may confuse one, its currency

being on the gold exchange basis. A _milreis_ is the unit of value and

while it is subject to fluctuation, may for all practical purposes be

reckoned as worth .33⅓ cents, or three _milreis_ as the equivalent of a

United States dollar. The symbol for the unit is $ and the value of our

dollar would be expressed thus 3$000. A _conto_, or about $333.33 would

be written 1000$000. The banking of Brazil is chiefly controlled by the

British, while Germany is their closest competitor, both France and

Italy being represented each by a bank. The National City Bank of New

York has recently established a branch in Rio de Janeiro, with

sub-agencies throughout Brazil, so that direct exchange on New York may

now be bought.

Brazil imported in 1913, $326,428,509 worth of goods, of which sum the

United Kingdom supplied $79,881,008; Germany, $57,043,754; United

States, $51,289,682; France, $31,939,752; Argentine, $24,293,712.

In the same period of time she exported goods to the value of

$315,164,687, the United States taking about one-third of the total

amount or to be exact, $102,652,923; Germany, $44,392,410; United

Kingdom, $41,701,815; France, $38,685,561; Holland, $23,252,700.

The United States should do a much larger trade with Brazil owing to a

preferential duty allowed our nation due to the fact that we are the

largest consumers of her leading staple—coffee. According to government

decree No. 9323, of January 17, 1912, flour imported from the States

pays 30 per cent. less duty than if imported from any other land, while

dried fruit, condensed milk, typewriters, rubber articles, and supplies,

scales, refrigerators, cement, corsets, school furniture, windmills,

watches, desks and printing inks, pay 20 per cent. less duty than

similar articles imported from other countries.

Brazil exports coffee, rubber, hides, skins, cacao, tobacco, salt,

cotton, sugar, woods, nuts, precious and semi-precious stones and gold.

She imports foodstuffs, shoes, machinery, textiles, building woods,

ammunition, wheat, automobiles, vehicles, codfish, dried fruits, glass,

toilet articles, building and kitchen hardware, cement, scientific

instruments, iron and steel, enamelled ware, paints and varnish,

haberdashers’ goods, cottons, hats, corrugated iron, galvanized iron,

tools, condensed milk, stationery, pipe, printing material and presses,

electric machinery and supplies, typewriters, nails, screws and rivets.

American fruits are much in demand in Brazil, and an excellent market

exists to-day for apples. Potatoes, onions, beets, garlic and other

fresh vegetables would also sell well and a lucrative trade in these

necessities of life could be developed without any great effort. The

refrigerator ships running from the Argentine to New York with meat

could carry as return freight these perishable cargoes at a low rate.

Steamship connections between Europe and the United States, with

Brazilian ports are numerous and sailings comparatively frequent and as

a rule the accommodations are all that could be desired. From New York

the Booth line (English) has two steamers a month to North Brazil and

Amazon River towns, touching at Barbados, Para and Manaos, with a ship

every six weeks to Iquitos, Peru. One steamer goes each month to North

Brazilian ports including Parnahyba, Natal and nearby localities. The

United States Steamship Line (American) has one vessel monthly for

Pernambuco, Rio de Janeiro and Santos, freight being redistributed at

these ports for intermediate points. The Lloyd Brazilleiro Line

(Brazilian) maintains a semi-monthly service between New York and Natal,

and Parahiba; and Pernambuco, Rio de Janeiro, and Santos, with

occasional service to other larger ports. These boats do not as a rule

carry passengers. They also maintain a service along the smaller coast

towns and the rivers leading into the interior of Brazil, even having

regular sailings from Asuncion, Paraguay, for Brazilian river towns. The

Lamport & Holt Line (English) has weekly sailings from New York to

Bahia, Rio de Janeiro and Santos, generally stopping at Trinidad and

Barbados, West Indies, on their trip north. The Prince Line (British)

touch once a month at Rio de Janeiro and Santos, carrying freight

chiefly. Other vessels of this line make monthly calls at Pernambuco,

Bahia, Rio de Janeiro and Santos. Numerous tramp ships also sail from

American ports on the eastern coast of the States to Brazil.

[Illustration:

_Photograph by Underwood & Underwood_

Avenida Rio Branco and Opera House, Rio de Janeiro

]

Brazil has 15,272 miles of railways, federal, state and private, over

many of which tickets which correspond to our mileage books are issued,

for the convenience of the travelling public. Many new lines are in

process of construction or contemplated, and a very decided effort is

being made to unite the various main lines by connecting roads, so that

the entire republic, including its most remote districts, may be thus

reached.

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

_Population_

Rio de Janeiro 1,128,000

São Paulo 450,000

Bahia 300,000

Belem or Para 250,000

Pernambuco 200,000

Porto Allegre 125,000

Mañaos 60,000

Santos 45,000

Campinas 40,000

Ceara 40,000

San Luiz or Maranao 40,000

Parahiba 32,000

Nichteroy 30,000

Florianopolis, or Desterro 27,000

Rio Grande do Sul 20,000

Some of the States and municipalities of Brazil have a special tax for

commercial travellers, which varies from year to year, concerning the

payment of which arrangements can be best made when on the ground. A

small tax is also levied on trade samples, presumably to be refunded

when leaving the country. It is advisable to learn how best to handle

the situation from travellers with whom you will meet en route. As a

rule, all of these are mere matter of detail and can be advantageously

arranged, through the proper channel.

III

ARGENTINE

Juan Diaz de Solis in 1508 discovered the Rio de la Plata, otherwise

known as the River Plate, while searching for a southerly passage to the

Pacific Ocean. In 1525 Sebastian Cabot entered the river and gave it the

name it now bears, at the same time erecting a fort near its mouth. A

wealthy Spaniard, Pedro de Mendoza, in 1536, in exchange for certain

landed rights and governmental privileges, established what is now the

present city of Buenos Aires.

It is unnecessary for the purposes of this book to do more than state

briefly that the conditions imposed by Spain on all its colonies were

outrageously unjust and caused much dissension. Efforts to progress were

throttled and the friction between the mother country developed until

the conquest of Spain by Napoleon, which gave the many Spanish colonies

that had become thoroughly satiated with disgust and contempt for the

Madrid Government, a chance to rebel and establish themselves as

independent nations. Taking advantage of the condition in Europe and

having in mind the successful revolution of the American colonists, the

people of Argentine, Bolivia, Paraguay and Chile revolted, and after

much fighting finally drove the Spanish troops from their shores. May

25, 1810, the people of Buenos Aires declared their independence. A

Congress was held in Tucuman on July 9, 1816, the result of which was

the more complete unification of the Argentine people under the title of

the United Provinces of the La Plata River. The government in 1860

adopted as its national title “The Argentine Nation” by which it now

prefers to be called.

Few know that the British had covetous plans upon this really wonderful

country and twice invaded it, once in 1806, and again in 1807. After

their fleet had bombarded the capital, the troops landed, and were both

times thoroughly defeated, some of the English battle flags which were

captured still being exhibited in Buenos Aires.

The government of the Argentine Nation is patterned after that of the

United States of America, and has a constitution similar in its

important features. There are three branches of government, executive,

legislative and judicial; the legislative power being vested in a

Congress composed of a Senate and a House of Deputies. The executive

power is vested in a President and Vice-President elected as those of

the United States, each holding office for the period of six years. Of

late the Government has been very stable and there have been less

tendencies to overthrow the authorized power than in most Latin American

countries. By a treaty with Chile in 1881, the great territory of

Patagonia, to the south of the Argentine, was divided between these two

nations.

Argentine covers an area of 1,153,418 square miles, or about one-third

as large as the United States. To be more specific it is as large as

Texas, and all of our territory east of the Mississippi. It is bounded

on the north by Bolivia, and Paraguay, on the west by Chile, on the

south by a portion of Chile and the Atlantic Ocean. Paraguay, Brazil and

Uruguay, together with the Atlantic Ocean which washes its shores for

more than 1500 miles, constitute its eastern boundary. Over 700,000,000

acres of its land is admirably adapted for cattle raising and the

growing of cereals, a fact which argues much for its future development

and prosperity.

Its population is variously estimated at from 6,000,000 to 9,000,000 but

it can with safety be placed at 7,000,000, a little less than 25 per

cent. of its inhabitants residing in the city of Buenos Aires, which has

1,700,000 citizens, a rather unusual condition of affairs. The early

settlers of the Argentine were of course Spaniards and their descendants

form the bulk of the population to-day. There are comparatively few

blacks or mixed breeds, slavery having been abolished in 1813, while the

Indians and aborigines are scattered along the frontier. Early in its

history Argentine encouraged emigration from Europe, using as an

inducement the free grant of public lands, which proved especially

attractive to the Italian and Spaniard. In fact the preponderance of the

Italian in the business and social life, due to this movement has had a

noticeable effect on the Spanish language as spoken in this country.

From 1857 to 1913 the total of newcomers amounted to 4,781,653, many of

whom became landholders and began at once to contribute to the growth

and wealth of the country. The population to-day is 7.8 persons per

square mile as against 32.31 per square mile in the United States. More

than 300,000 persons migrate to this country each year.

The chief characteristic of the physical formation of the Argentine is

its vast pampas or plains stretching from the Rio de la Plata to the

west, terminating in the foothills of the Andes, or the Cordilleras.

Perhaps no part of the earth’s surface has such flat, smooth, treeless

plains as here confront the traveller. The climatic conditions, owing to

the fact that it extends over thirty-four degrees of latitude, vary from

tropical in the north to practically arctic coldness in the south, the

seasons being the reverse of ours,—that is, they have winter when we

have summer and vice versa. The greater portion of the country is in the

temperate zone, the summers being very hot and the winters typified by

heavy rains, especially in the eastern portion, diminishing toward the

west where there is often much drought. In the extreme south, in what

was formerly Patagonia the heavy snows of winter take the place of

rains, which together with the warm summers produce a luxuriant growth

of grass, especially adapted for the grazing of sheep.

[Illustration:

_Photograph by Underwood & Underwood_

Taking produce to the station, Argentine

]

The Argentine has for some years been one of the granaries of the world

and as its available land becomes cultivated is destined to play a more

important rôle in this field. Some idea of its rapid development may be

gained from the fact that in 1904, 26,000,000 acres were under

cultivation, while in 1913 over 60,000,000 were sown. Wheat is of course

its chief cereal, last year over 17,000,000 acres being cultivated. The

Argentine Agricultural Department states that for the same period of

time there were 12,000,000 acres in corn; 4,000,000 in oats and

15,000,000 in lucerne or alfalfa, proportionately large territories

being planted with barley, sugar, grapes, rice, cotton and tobacco.

This country has been the second largest linseed producing nation of the

world, yielding first place to India. Last year nearly 6,000,000 acres

were devoted to the growing of this seed alone.

Comparatively little attention is paid to truck gardening or the raising

of kitchen vegetables, fruits or berries, and this offers a remarkable

opportunity to one versed in the subject. Conditions for growing these

necessities are most favorable but have been neglected in the efforts

made to develop other sources of revenue.

Tucuman has been the center of the sugar industry, practically all of

which is consumed in the country, 43 refineries and plants being devoted

to this business. The grapes grown at the foot of the eastern slopes of

the Andes, near and around Mendoza, yield 500,000,000 quarts of wine

yearly, most all being for internal consumption. Owing to the reversal

of seasons here, crops are harvested when ours are being sown.

Recently dairying has developed to a remarkable extent, over 1300

creameries and factories being devoted to the manufacture of butter and

cheese, doing a gross business of nearly $9,000,000. Much butter and

cheese are shipped to England, Brazil and South Africa. For the first

time in its history, butter was exported to the United States last year.

Flour milling was established in the Argentine in the 16th century.

Prior to this Chilean flour supplied the demands for this article.

To-day in addition to providing sufficient for its own requirements,

Argentine ships much of its flour to Brazil, Chile and Europe and has

about 800 flour mills in operation, representing an investment of

approximately $14,000,000.

From the days of the early Spaniards stock-raising has flourished and

will always be one of the chief industries of the land. Not only the

Government but individuals as well realize this and co-operate with each

other for the purpose of producing the best strains of all breeds of

cattle.

There are many “refrigerificos” or cold-storage plants and abattoirs

throughout the land and for years Europe received practically all of

Argentine’s animal products, her exports in this line alone being

approximately $350,000,000 in 1914. Due to the fact that these

establishments were operated by British capital, England naturally took

most of this meat. The larger American packing-houses have now entered

the trade with the double purpose of supplying both their European and

American customers from this field and direct refrigerator ships now run

from the River Plate to New York City with cargoes of Argentine beef and

mutton. The last census showed 30,000,000 beef cattle; 9,000,000 horses;

500,000 mules; 300,000 asses; 90,000,000 sheep; 4,000,000 goats and

3,000,000 pigs.

Nature seems content in having blessed this country with fertile pampas

and agricultural lands, consequently there are comparatively few

minerals within its territory. There are however some veins of gold,

silver, copper and wolfram. Petroleum has recently been discovered, but

not in large quantities. There is no coal in the Argentine, but in some

sections bogs of peat cover extensive areas and await development.

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