CHAPTER I

Transcriber's Note

Italic font is indicated by _underscores_.

Bold text is indicated by +plus signs+.

Superscripted letters are indicated by a preceding ^ sign.

_Panama to Patagonia_

[Illustration: A Mountain Bridge]

_Panama to Patagonia_

_The Isthmian Canal_

_And the West Coast Countries of

South America_

_By_

_Charles M. Pepper_

_Author of “Tomorrow in Cuba”_

_With Maps and Illustrations_

[Illustration]

_Chicago_

_A. C. McClurg & Co._

_1906_

Copyright

A. C. McClurg & Co.

1906

Entered at Stationers’ Hall

Published March 24, 1906

THE UNIVERSITY PRESS, CAMBRIDGE, U. S. A.

THIS BOOK IS AFFECTIONATELY DEDICATED

to

+My Wife+

KITTIE ROSE PEPPER

and to

+My Daughter+

NORITA ROSE PEPPER

COMRADES IN MANY TRAVELS

PREFACE

My purpose in this work is to consider and describe the effect

of the Panama Canal on the West Coast countries of South America

from the year 1905. At this period its construction by the United

States may be said to have begun. If my own deep conviction that

this influence makes powerfully for their industrial development

and their political stability be an illusion, the pages which

follow may afford the disbelievers grounds for pointing out wrong

premises or false conclusions. “We doubt” long has been the dogma

of the North American and the European in everything relating to

the permanency of progress in the Spanish-American Republics. “I

believe” is yet only the creed of the individual. A huge material

fact obtruding itself may secure a listening ear from the doubters.

The Canal obtrudes.

The severely practical Northern mind finds itself in a brain-fog

with reference to the Southern Continent. Speculative reasoning

regarding new forces of civilization does not appeal to it. It wants

the concrete circumstances. Now the Canal is not an abstraction.

The industrial and commercial energies which it wakens are not

abstractions. The interoceanic waterway is a national undertaking,

but it shows the way to individual enterprise. More than the gates

of chance are opened to American youth. They are the gates of

opportunity. Consequently the need of knowledge.

The number of recent books relating to the history of South America

seems to indicate a demand for this knowledge in its primary form.

They open the path for a volume which may be limited more strictly

to industrial, fiscal, and political information. For that reason,

while not overlooking the historical element in the institutions and

governmental systems, I have not thought it necessary to consider

them chronologically from the colonial epoch or even from the era

of independence.

The effort to divorce economic and social forces from places and

peoples in order to analyze a principle usually is so barren

that I have not attempted it. Places have their significance,

and people are the human material. Customs and institutions are

only understood properly in their environment. So many excellent

descriptive works have been written about South America that I have

sought to subordinate these features; yet since the information

applies to localities something about them could not entirely be

omitted. Moreover, I have that abounding faith which leads me to

look forward to the time when the engineering marvels of the Canal

construction may prove enough of a magnet to draw thither the

travelled American who would know what his country is doing and

who, once on the Isthmus, will be likely to continue down the West

Coast with a view to determining the relative attractions of the

noble Andes and the Alps. Yet I have made no attempt to preserve

the form of continuous narrative. The treatment of the subject

does not demand it.

To South American friends who may be offended at the frankness or

the bluntness of the views expressed, a word may be communicated.

The confidences extended me while on an official mission widened

my own vision of the aspirations of their public men. At the same

time they conveyed the idea that the economic evolution to which

all look forward will come more swiftly if reactionary tendencies

are combated more openly and aggressively. Opinions on the policy

of the United States being uttered with freedom, I have not thought

it necessary to adopt the apologetic attitude in regard to other

Republics. In seeking the constructive elements in the national

life and character of the South American countries, it has been

with the undisguised hope that the contact and the impact of North

American character may be a reciprocal influence.

Acknowledgment of material for the general map, which amplifies

that of the permanent Pan-American Railway Committee, is due its

chairman, Hon. H. G. Davis, whose faith in the future relation of

the United States to the other American countries is an example to

the generation which will share the benefits both of the Canal and

of railroad construction.

C. M. P.

Washington, D. C.

January, 1906.

CONTENTS

CHAPTER I

ECONOMIC EFFECT OF THE CANAL Page

Philosophic Spanish-American View--Henry Clay’s

Mistaken Population Prophecy--The Andes Not a Canal

Limitation--Intercontinental Railway Spurs--Argentina and

the Amazon as Feeders--Centres of Cereal Production--Crude

Rubber--Atlantic and Pacific Traffic--Growth of West

Coast Commerce--North and South Trade-wave--Distances via

Panama, Cape Horn, and the Straits of Magellan--Waterway

Tolls and Coal Consumption--Ecuador and Peru--Bolivia and

Chile--Isthmian Railroad Rates--Value of United States

Sanitary Authority--American Element in New Industrial

Life 1

CHAPTER II

TRAVEL HINTS

Adopting Local Customs--Value of the Spanish

Language--Knowledge of People Obtained through Their

Speech--English in Trade--Serviceable Clothing in

Different Climates--Moderation in Diet--Coffee at its True

Worth--Wines and Mineral Waters--Native Dishes--Tropical

Fruits--_Aguacate_ and _Cheremoya_ Palatal Luxuries--Hotels

and Hotel-keepers--Baggage Afloat and Ashore--Outfits for

the Andes: Food and Animals--West Coast Quarantines--Money

Mediums--The Common Maladies and How to Treat Them 21

CHAPTER III

THE ISTHMUS OF PANAMA

Canal Entrance--Colon in Architectural

Transformation--Unchanging Climate--Historic Waterway

Routes--Columbus and the Early Explorers--Darien

and San Blas--East and West Directions--Life along

the Railway--Chagres River and Culebra Cut--Three

Panamas--Pacific Mouth of the Canal--Functions of

the Republic--Natural Resources--Agriculture and

Timber--Road-building--United States Authority on the

Zone--Labor and Laborers--Misleading Comparisons with

Cuba--The First Year’s Experience 37

CHAPTER IV

A GLIMPSE OF ECUADOR

Tranquil Ship Life--Dissolving View of Panama Bay--The

Comforting Antarctic Current--Seeking Cotopaxi and

Chimborazo--Up the Guayas River--Activity in Guayaquil

Harbor--Old and New Town--Shipping via the Isthmus and

Cape Horn--Chocolate and Rubber Exports--Railway toward

Quito--A Charming Capital--Cuenca’s Industries--Cereals

in the Inter-Andine Region--Forest District--Minerals

in the South--Population--Galapagos Islands--Political

Equilibrium--National Finances 57

CHAPTER V

PERUVIAN SHORE TOWNS

Pizarro’s Landing-place at Tumbez--Last Sight of the

Green Coast--Paita’s Spacious Bay--Lively Harbor

Scenes--An Interesting and Sandy Town--Its Climatic

and Other Legends--Future Amazon Gateway--Sugar and

Rice Ports--Eten and Pacasmayo--Transcontinental

Trail--Cajamarca--Chimbote’s Naval Advantages--Supe’s

Attractions--Ancon’s Historic Treaty--Callao’s

Excellent Harbor--Importance of the Shipping--Customs

Collections--Pisco’s Varied Products--Rough Seas at

Mollendo--Bolivian and Peruvian Commerce for the Canal 73

CHAPTER VI

LIMA AND THE CORDILLERAS

Pleasing Historic Memories--Moorish Churches and Andalusian

Art--Pizarro’s Remains in the Cathedral--Transmitted

Incidents of the Earthquake--The Palace, or Government

Building--General Castilla’s Humor--Decay of the

Bull-fight--Cultured Society of the Capital--Foreign

Element--San Francisco Monastery--Municipal

Progress--Chamber of Commerce--A Trip up the Famous

Oroya Railway--Masterwork of Henry Meiggs--Heights and

Distances--Little Hell--The Great Galera Tunnel--Around

Oroya--Railroad to Cerro de Pasco Mines--American

Enterprise in the Heart of the Andes 89

CHAPTER VII

AREQUIPA AND LAKE TITICACA

Capital of Southern Peru--Through the Desert to the

Coast--Crescent Sand-hills--A Mirage--Down the

_Cañon_--Quilca as a Haven of Unrest--Arequipa

Again--Religious Institutions--Prevalence of

Indian Race--Wool and Other Industries--Harvard

Observatory--Railroading over Volcanic Ranges--Mountain

Sickness at High Crossing--Branch Line toward

Cuzco--Inambari Rubber Regions--Puno on the Lake Shore 109

CHAPTER VIII

THE REGIONS AND THEIR RESOURCES

Topography a Key to Economic Resources--Coast, Sierra,

and Montaña--Cotton in the Coast Zone--Piura’s High

Quality--Lima and Pisco Product--Prices--Increase

Probable--Sugar-cane as a Staple--Probability of

Growth--Rice as an Export and an Import--Irrigation

Prospects--Mines in the Sierra--Geographical Distribution

of the Deposits--Live-stock on the High Plains--Rubber

in the Forest Region--Iquitos on the Amazon a Smart

Port--Government Regulations for the Gum Industry 123

CHAPTER IX

WATERWAYS AND RAILWAYS

Importance of River System--Existing Lines of

Railroads--Pan-American Links--Lease of State Roads

to Peruvian Corporation of London--Unfulfilled

Stipulations--Law for Guaranty of Capital Invested in New

Enterprises--Routes from Amazon to the Pacific--National

Policy for Their Construction--Central Highway, Callao to

Iquitos--The Pichis--Railroad and Navigation--Surveys in

Northern Peru--Comparative Distances--Experiences with

First Projects--Future Building Contemporaneous with

Panama Canal 137

CHAPTER X

THE PEOPLE AND THEIR INCREASE

Density of Population in Time of the Incas--Three Million

Inhabitants Now Probable--Census of 1876--Interior

Country Not Sparsely Populated--Aboriginal Indian

Race and Mixed Blood--Fascinating History of the

Quichuas--Tribal Customs--Superstition--Negroes

and Chinese Coolies--Immigration Movements of the

Future--Wages--European Colonization--Cause of Chanchamayo

Valley Failure--Climatic and Other Conditions Favorable--An

Enthusiast’s Faith 151

CHAPTER XI

PERU’S GROWING STABILITY

Seeds of Revolution Running Out--Educated Classes Not the

Sole Conservative Force--President Candamo’s Peacemaking

Administration--Crisis Precipitated by his Death--Triumph

of Civil Party in the Choice of his Successor--President

Pardo’s Liberal and Progressive Policies--Growth in

Popular Institutions--Form of Peruvian Constitution

and Government--Attitude of the Church--Rights of

Foreigners--Sources of Revenue--Stubborn Adherence to

Gold Standard--Interoceanic Canal’s Aid in the National

Development 164

CHAPTER XII

ALONG COAST TO MAGELLAN STRAITS

Arica, the Emerald Gem of the West Coast--Memorable

Earthquake History--A Future Emporium of Commerce for

the Canal--Iquique the Nitrate Port--Value of the

Trade--Antofagasta’s Copper Exports--Caldera and the

Trans-Andine Railway to Argentina--Valparaiso’s Preëminence

among Pacific Ports--Extensive Shipping and Execrable

Harbor--Plans for Improvement--No Fear of Loss from the

Interoceanic Waterway--Coal and Copper at Lota--Concepcion

and Other Towns--Rough Passage into the Straits--Cape

Pillar--Punta Arenas, the Southernmost Town of the

World--Trade and Future 180

CHAPTER XIII

LIFE IN THE CHILEAN CAPITAL

Railway along Aconcagua River Valley--Project of Wheelright,

the Yankee--Santiago’s Craggy Height of Santa Lucia--A

Walk along the Alameda--Historic and Other Statues--The

Capital a Fanlike City--Public Edifices--Dwellings of

the Poor--Impression of the People at the Celebration

of Corpus Christi--Some Notes on the Climate--Habits

and Customs--“The Morning for Sleep”--Independence of

Chilean Women--Sunday for Society--Fondness for Athletic

Sports--Newspapers an Institution of the Country 201

CHAPTER XIV

NITRATE OF SODA AN ALADDIN’S LAMP

Extensive Use of Nitrates as Fertilizers--Enormous

Contributions to Chilean Revenues--_Résumé_ of

Exportations--Description of the Industry--How the

Deposits Lie--Iodine a By-product--Stock of Saltpetre in

Reserve--The Trust and Production--Estimates of Ultimate

Exhaustion--A Third of a Century More of Prosperous

Existence--Shipments Not Affected by Panama Canal--Copper

a Source of Wealth--Output in Northern Districts--Further

Development--Coal--Silver Mines Productive in the

Past--Prospect of Future Exploitation 217

CHAPTER XV

CHILE’S UNIQUE POLITICAL HISTORY

National Life a Growth--Anarchy after Independence--Presidents

Prieto, Bulnes, Montt, Perez--Constitution of 1833--Liberal

Modifications--The Governing Groups--Civil War under

President Balmaceda--His Tragic End--Triumph of his

Policies--Political System of To-day--Government by the

One Hundred Families--Relative Power of the Executive and

the Congress--Election Methods Illustrated--Ecclesiastical

Tendencies--Proposed Parliamentary Reforms--Ministerial

Crises--Party Control 232

CHAPTER XVI

PALPITATING SOCIAL QUESTIONS

Existence of the Roto Discovered--Mob Rule in

Valparaiso--Indian and Caucasian Race Mixture--Disquieting

Social Phenomena--Grievances against the

Church--Transition to the Proletariat--Lack of Army and

Navy Opportunity--Not Unthrifty as a Class--Showings of

Santiago Savings Bank--Excessive Mortality--Need of State

Sanitation--Discussion of Economic Relation--Changes in

National Tendencies--Industrial Policies to Placate the

Roto 248

CHAPTER XVII

CHILE’S INDUSTRIAL FUTURE

Agricultural Possibilities of the Central Valley--Its

Extent--Wheat for Export--Timber Lands of the South--Wool

in the Magellan Territory--Grape Culture--Mills

and Factories--Public Works Policy--Longitudinal

and Other Railway Lines--Drawbacks in Government

Ownership--Trans-Andine Road--Higher Levels of Foreign

Commerce--Development of Shipping--Population--Experiments

in Colonization--Internal and External Debt--Gold

Redemption Fund--Final Word about the Nitrates 262

CHAPTER XVIII

WAYFARING IN BOLIVIA--THE ROYAL ANDES

Old Spanish Trail from Argentina--Customs Outpost at

Majo--Sublime Mountain View--Primitive Native

Life--Sunbeaten Limestone Hills--Vale of Santa

Rosa--Tupiza’s People and Their Pursuits--Ladies’

Fashions among the Indian Women--Across the Chichas

Cordilleras--Barren Vegetation--Experience with Siroche,

or Mountain Sickness--Personal Discomforts--Hard

Riding--Portugalete Pass--Alpacas and Llamas--Sierra of

San Vicente--Uyuni a Dark Ribbon on a White Plain--Mine

Enthusiasts--Foreign Consulates 278

CHAPTER XIX

WAYFARING IN BOLIVIA--THE CENTRAL PLATEAU

A Hill-broken Table-land--By Rail along the

Cordillera of the Friars--Challapata and Lake

Poöpo--Smelters--Spanish Ear-marks in Oruro--By Stage

to La Paz--Fellow-passengers--Misadventures--Indian

Tombs at Caracollo--Sicasica a High-up Town, 14,000

Feet--Meeting-place of Quichuas and Aymarás--First Sight

of the Famed Illimani Peaks--Characteristics of the Indian

Life--Responsibility of the Priesthood--Position of the

Women--Panorama of La Paz from the Heights--The Capital

in Fact--Cosmopolitan Society 297

CHAPTER XX

THE MEXICO OF SOUTH AMERICA

Depression and Revival of Mining Industry--Bolivia’s Tin

Deposits and Their Extension--Oruro, Chorolque, Potosi,

and La Paz Districts--Silver Regions--Potosi’s Output

through the Centuries--Pulacayo’s Record--Mines at

Great Heights--Trend of the Copper Veins--Corocoro a

Lake Superior Region--Three Gold Districts--Bismuth

and Borax--Bituminous Coal and Petroleum--Tropical

Agriculture--Some Rubber Forests Left--Coffee for

Export--Coca and Quinine--Cotton 313

CHAPTER XXI

BOLIVIAN NATIONAL POLICY

Panama Canal as Outlet for Mid-continent Country--Railways for

Internal Development--Intercontinental Backbone--Proposed

Network of Lines--Use Made of Brazilian Indemnity--Chilean

Construction from Arica--Human Material for National

Development--Census of 1900--Aymará Race--Wise

Governmental Handling of Indian Problems--Immigration

Measures--Climatic Variations--Political Stability--General

Pando’s Labors--Status of Foreigners--Revenues and

Trade--Commercial Significance of Treaty with Chile--Gold

Legislation--A Canal View 331

CHAPTER XXII

NEW BASIS OF THE MONROE DOCTRINE

John Quincy Adams’ Advice--Canning’s Trade Statesmanship--Lack

of Industrial and Commercial Element--Excess of

Benevolent Impulse--Forgotten Chapters of the Doctrine’s

History--The Ecuador Episode--President Roosevelt’s

Interpretation--Diplomatic Declarations--Spectres of

Territorial Absorption--Change Caused by Cuba--Progress

of South American Countries--European Attitude on

Economic Value of Latin America--German and English

Methods--Proximity of Markets to United States Trade

Centres--Conclusion 351

APPENDIX--Hydrographic Tables of Distances 373

INDEX 379

TABLES 399

ILLUSTRATIONS

Page

A Mountain Bridge _Frontispiece_

Scene on the Chagres River 10

Swamp Section of the Canal 10

The Atlantic Entrance to the Canal 10

Abandoned Machinery--Two Views 18

Pineapple Garden 28

Banana Grove 28

The De Lesseps House, Colon 44

Caribbean Cocoa Palms 44

Panama Natives from the Swamp Country 50

Panama Natives from the Mountains 50

Ruins at Panama--Two Views 54

The Waterfront at Guayaquil 60

The Wharf at Duran 60

Weed-killer Plant, Guayaquil and Quito Railway 64

Railway Spraying Cart 64

Cacao Trees 70

View of Mollendo Harbor and Railway Yards 86

Interior of Cathedral, Lima 92

Church of San Francisco, Lima 94

Church of San Augustin, Lima 94

Scene on the Oroya Railway, Chicla Station 98

Scene on the Oroya Railway, San Bartolomew Switchback

and Grade 102

Pyramid of Junin 106

Independence Monument, Lima 106

View of Arequipa and the Crater of El Misti 114

Ruins of an Inca Fortress at Cuzco 120

A Farmhouse in the Forest Region 130

View of Oroya, the Inter-Andine Crossroads 142

Group of Peruvian _Cholos_ 154

Portrait of José Pardo, President of Peru 170

View of Arica 182

Scene in the Harbor of Valparaiso, showing the Arturo

Prat Statue 190

View of Talcahuano 194

Scenes at the Straits of Magellan; Cape Pillar, the

Evangelist Islands, and Cape Froward 198

Scene on the Aconcagua River 202

View of Los Andes 210

The Roman Aqueduct on Santa Lucia, Santiago 214

Group of Araucanian Indian Women 250

“Christ of the Andes” 270

Sandstone Pillars near Tupiza 286

Bolivian Indian Women Weaving 292

Aymará Indian Woman and Child 292

Scene in the Plaza at Oruro 302

Ancient Tombs at Caracollo 302

Primitive Methods of Tin-crushing 302

A Drove of Llamas on the Pampa 306

View of the Cathedral, La Paz 310

Gathering Coca Leaves in the Yungas--Two Views 328

Portrait of Ismael Montes, President of Bolivia 344

MAPS

Page

I. The United States and other American Countries--Transportation

Routes 2

II. General Plan of the Panama Canal 38

III. Peruvian Waterways and Railways 138

IV. Bolivian Railway Routes 334

PANAMA TO PATAGONIA

CHAPTER I

ECONOMIC EFFECT OF THE CANAL

_Philosophic Spanish-American View--Henry Clay’s Mistaken Population

Prophecy--The Andes Not a Canal Limitation--Intercontinental

Railway Spurs--Argentina and the Amazon as Feeders--Centres

of Cereal Production--Crude Rubber--Atlantic and Pacific

Traffic--Growth of West Coast Commerce--North and South

Trade-wave--Distances via Panama, Cape Horn, and the Straits

of Magellan--Waterway Tolls and Coal Consumption--Ecuador and

Peru--Bolivia and Chile--Isthmian Railroad Rates--Value of United

States Sanitary Authority--American Element in New Industrial

Life._

The effect of the Panama Canal on the West Coast industrial

development and the reciprocal influence of this South American

progress on the waterway are economic facts. The citizen of the

United States who would know the subject in a wider range than the

mere gratification of his patriotic impulses and his national pride,

should turn to the study of commercial geography, the potential

political economy of unexploited natural resources. The European

statesman, jealously watchful of trade conditions in the New World

and the causes which modify them, will follow these channels without

suggestion.

Whether the digging of the Canal take ten, fifteen, or twenty years,

does not affect its industrial value. The Spanish-American, with

his inherited inertia and his lack of initiative, in waiting for

to-morrow would be content if the work consumed half a century. What

Humboldt prophesied of the Southern Continent as the seat of future

civilization, what Agassiz predicted of the Andean and the Amazon

populations, he is sure now will be realized. He even reverts to

his favorite method of comparing the square miles of Belgium with

the square miles of his own South American country, whichever one

it may be, and exhibits the latter’s possibilities for the human

race by explaining the number of people it can sustain when it

shall have as many inhabitants to the square mile as has Belgium.

Yet while he believes that the destiny of the Southern Continent

is at the threshold of realization, Yankee impatience only would

amuse him. Since the interoceanic waterway and all its benefits are

to be, what matter a few years? Time, says the Castilian proverb,

is the element. This philosophic Latin view may serve as a curb to

fault-finding if the construction work on the Canal seems to halt

while the engineering obstacles are studied and experiments are

made in order to determine the best means to overcome them.

But though the Spanish-American, who is of the race that controls

the West Coast countries of South America, is patient in his waiting

for ultimate results, he does not fail to grasp the immediate

effect. All the processes of the economic evolution unroll before

his mental vision. For Colombia, Ecuador, Peru, Chile, and Bolivia,

the standard already has been set, and the goal towards which

they must work has been fixed. Their national policies and their

commercial and industrial growth at once come under the stimulus

of the waterway. “The Panama Canal,” said the leader of public

thought in one of the Republics, “will precipitate our commercial

evolution.” It is the spring from which will gush the streams of

immigration.

[Illustration:

MAP

OF

THE UNITED STATES

AND

OTHER AMERICAN COUNTRIES

SHOWING THE CHIEF OCEAN AND RAIL

TRANSPORTATION ROUTES

1906

]

In the present volume I shall have little to say of Colombia, for

though the Isthmus of Panama is the reception-room of that country,

the Canal is to be considered jointly with relation to the Caribbean

and the Pacific shores. I include Bolivia because, while as a

political division it is not ocean-bordering, geographically it is

a Pacific coast country on account of its outlet through Chilean

and Peruvian seaports.

Population in South America is not marked by periods of phenomenal

increase. Henry Clay, in his generous pleas for the recognition of

the struggling Republics, was led in the warmth of his imagination

to foresee the day when they would have 72,000,000 and we would

have 40,000,000 inhabitants. The population of the United States

was then less than 10,000,000. Clay spoke when the resources of the

Louisiana Purchase were still distrusted by many conservative public

men, and long before Daniel Webster had delivered his celebrated

philippic against the Oregon region as a worthless area of deserts

and shifting sands. Mindful of the slow growth in the Southern

Hemisphere, I make no predictions of sudden leaps, but merely seek

to indicate what proportion of the present and future inhabitants

comes within the sphere of the Canal.

The population of western Colombia and of Ecuador, Peru, Chile, and

Bolivia is approximately 11,000,000, dwelling chiefly along the

seacoast. It has been assumed that only this long slope of almost

continuous mountain wall from Panama to Patagonia is subject to the

direct influence of the Canal, and that the barrier of the Andes

makes all the rest of the South American continent dependent on

Atlantic outlets. The assumption is presumptuous. It is based on

an unflattering lack of geographical knowledge and on a complete

ignorance of political and economic conditions.

The primary mistake is in considering the Coast Cordilleras as the

principal chain. The great rampart of the Andes in places is hundreds

of miles across. Productive plains and fertile valleys lie on the

western side of the Continental Divide as well as on the Atlantic

slope. Besides, there are many bifurcations of these lofty ranges

which must be pierced toward the Pacific. The mineral belt with

its incalculable wealth, after centuries only partially exploited,

has its basis of profitable production and export by means of the

water transport of the Pacific. And greatest of all the facts is

the certainty that railways will bore through the granite ramparts

in a westerly direction. The central spine or backbone of the

Intercontinental or Pan-American trunk line is not all a dream, and

from its links spurs will shoot out toward the Pacific. It would

have been as reasonable to imagine that the Rocky Mountains could

forever shut in the region between them and the Sierra Nevadas,

barring all outlet to the Atlantic and the Gulf of Mexico, as to

suppose that the Pacific Ocean from Panama south is everlastingly

restricted to the fringe of coast for its commerce. This is in the

industrial sense and aside from the reasons of national polity which

by railway enterprises on the part of the various governments are

causing the Andes to disappear.

The grain fields and pastures of Argentina lie close to the Pacific.

How close? Within less than 200 miles. The pampas of the western

and northwestern provinces are from 500 to 1,200 miles distant from

the Atlantic seaboard. The pressure of the agricultural population

is westward. A generation--perhaps a decade--will bring it to the

slopes of the Andes. The first railway to join the Atlantic and the

Pacific, that from Buenos Ayres to Valparaiso, will be completed by

means of a spiral tunnel long before vessels are propelled through

the Canal.

But Valparaiso is far south, so far that, in the opinion of some

authorities, it is the limit of the Canal radius. Let this be

granted momentarily while the map is scanned. Place the thumb on

the Chilean port of Caldera, 400 miles north of Valparaiso; the

index finger on Tucuman, and the middle finger on Cordoba. The

lines forking from these Argentine cities forecast the next chapter

of railway expansion. Let it be known also that Nature, in kindly

mood, has formed a saddle in the mountain range in this section,

and that engineering surveys of routes through the depression are

the basis of projects which only await a larger agricultural area

under cultivation in order to become railway enterprises with an

assured commercial basis. Both Cordoba and Tucuman will be in rail

communication with the Pacific coast some years before the waterway

is finished. Nor are these the only trans-Andine lines in prospect.

They serve the purposes of illustration, so that a description of

the others may be omitted. I cite the first two in order that it

may be known there is an Argentine relation to the Canal, and a

highly important one as to population and as to the exports and

imports which are the foundation of maritime and rail traffic.

If this suggestion is new and strange, I follow it by a more

startling proposition. As one result of the Panama Canal, a measure

of Amazonian commerce will flow to and from the Pacific.

To begin with, there is the nearness. By several trans-Andine routes

the navigable affluents of the Amazon are less than 300 miles from

the coast. Steamships of 800 tons navigate as far as Yurimaguas on

the Huallaga River, which was the historic route of the Spaniards

over the Continental Divide. Steam vessels also go up the Marañon

from Iquitos, 425 miles to the Falls of Manserriche, which by several

practicable railway routes are within less than 400 miles of the

Bay of Paita. Minor Peruvian ports below Paita are able to offset

its shipping advantages by shorter trails. Not more than 225 miles

of difficult railway construction are necessary to open to a large

section of the vast Amazon region the commerce of Callao, Peru’s

chief port.

In relation to the Amazon as a feeder, it has to be recognized

that the Andes form a greater obstacle than in Argentina, and that

the river basins will be populated much more slowly and never so

densely as the Argentine pampas and sierras. But the mighty stream

is within the sphere of the Canal, as I shall have occasion to

explain more fully in subsequent chapters. For the present purpose

a single illustration, perhaps fanciful, will answer.

It may seem a far cry from the 200,000 telephones used by the

farmers of Indiana, the trolleys which tangle their way through

that State, and the automobiles and bicycles which traverse the

country roads, to the gum forests of South America. But the world’s

hunger for crude rubber is a growing one. Bicycles, the infinite

variety of motors, electric lighting, and telephones, all demand

more of this article; and the 55,000 tons, which was substantially

the world’s production in 1905, is insufficient for future needs.

This increasing demand will stimulate the rubber production of an

extensive region in northeastern Peru, and Peru has imperative

reasons of national policy for wanting to turn that traffic down her

own rivers, and across and over the Andes to the Pacific, instead

of letting it flow out through Brazilian territory. Iquitos, the

centre of this commerce, is 2,300 miles up the Amazon from Para,

and Para is 3,000 miles from New York, a total of 5,300 miles by

the all-water route. By river and future rail Iquitos is, at the

furthest, 800 miles from Paita, and Paita, via Panama, is a little

short of 3,100 miles from New York; so that the total distance is

less than 4,000 miles. New Orleans by the isthmian route is within

3,300 miles of the Peruvian rubber metropolis.

Instead of the Pacific commerce being limited to the seashore strip

after the Panama Canal is dug, the view which receives attention

in South America is the probable influence of the waterway in

diverting traffic from the Atlantic to the Pacific. Trade may not

be turned upstream, and commerce is slow to leave established lines

of transportation, but trade-waves are not so fixed as isothermal

lines. They may show variations until the current finds its natural

course to the newer markets created.

I do not mean from this to infer that the aggregate commerce of

the Atlantic coast countries of South America will be lessened by

the Panama Canal. Tropical Brazil, for an indefinite period, will

continue to supply the bulk of the coffee consumed, and the maritime

movement will follow the existing courses of navigation. Temperate

Brazil, the Argentine Republic, and Uruguay will develop as the

granary and the grazing-ground of the world in proportion as the

United States consumes its own wheat and beef. Their exports increase

with the widening of the market for these staple products. Political

economists and crop statisticians have been slow to perceive that

the extension of the area of agricultural cultivation and the

growth of population in this great cereal region depend more on the

ability of Europe to take the surplus grain, beef, and mutton than

on the demands for home consumption. Public men, especially in the

Argentine Republic, in their measures for encouraging immigration

also have neglected to take into account this overshadowing economic

factor. But it explains why during certain periods immigration

has been almost stationary, while at other periods the incoming

of settlers for the field and farm has been a rushing one. As a

natural balance, therefore, for the diversion of traffic to the

Pacific coast through the agency of the artificial waterway, the

Atlantic slope has the certainty of steadily growing exports of

agricultural products.

As regards Argentina, the coming railways to the Pacific, of which

I have made mention, mean that a quantity of the cereals, wool,

and hides will find their outlet by these routes; and a larger

volume of the exchange for them--farm tools, cottons and woollens,

mineral oils, and miscellaneous merchandise--will obtain the

cheaper and shorter transit through the Canal and down the West

Coast. Thus, without damage to the Atlantic commerce, the Pacific

coast traffic will form a larger proportion in the total of South

American commerce than in the past. This is especially true with

reference to the United States. The trade-wave north and south may

be accounted one of the phenomena of international intercourse. It

is not tidal, but a brief comparison shows its growing volume. In

1894 Argentina took from the United States goods to the value of

$4,863,000, and sent in return products worth $3,497,000. In 1904

the exports were $10,751,000, and the imports $20,702,000, and in

the following year they were increasing.

The commercial relation of the West Coast countries may better be

exhibited by tabulation in the following form:

+---------+-----------------------------+---------------------------+

| | Exports to United States[1] |Imports from United States |

+---------+------------+----------------+-------------+-------------+

| | =1894= | =1904= | =1894= | =1904= |

+---------+------------+----------------+-------------+-------------+

| Chile |$3,536,000 |$10,685,000 | $2,272,000 | $4,880,000 |

| Peru | 491,000 | 3,008,000 | 591,000 | 3,961,000 |

| Ecuador| 816,000 | 2,347,000 | 761,000 | 1,354,000 |

+---------+------------+----------------+-------------+-------------+

| Total |$4,843,000 |$16,040,000 | $3,624,000 |$10,195,000 |

+---------+------------+----------------+-------------+-------------+

| 1 See _Foreign Commerce of the United States, Annual Review, |

| 1904_. |

+-------------------------------------------------------------------+

Here, within the extremes of the eleven years, is an increase in

the foreign commerce between the West Coast countries named and the

United States from $8,467,000 to $26,235,000 as measured by the

annual volume. The growth continued in the subsequent twelvemonth.

It is a forcible illustration of the north and south trade-wave

movement. Under the further stimulus of the Canal for industrial

development and commercial growth the contribution to traffic for

the waterway will be not inconsiderable.

[Illustration: Swamp Section of the Canal--The Atlantic Entrance

to the Canal--Scene on the Chagres River]

An analysis of the West Coast foreign commerce for a given year

shows it to have exceeded $211,000,000, with a rising tendency. The

intercoast trade, which is included under the foreign head, may be

placed at $11,000,000 to $12,000,000. There is left, therefore,

approximately $200,000,000 of international traffic for Europe and

the United States.

If the international traffic were to remain stationary, the amount

that would be diverted from the Cape Horn or the Magellan route

through the Canal would be important, but the overshadowing element

in the waterway as an economic factor is the certainty of an

increase in the foreign trade. The marked feature of the West Coast

countries in recent years is the growth in consumptive capacity as

shown by the imports, for the increase in population has not been

large. Oriental trade may be diverted from other channels through

the Canal, but western South American commerce may look for growth

in volume on account of internal development of the countries which

are tributary to it. In this view it may be doubted whether the

estimate that 75 per cent of the Canal traffic will be between ports

north of the same parallels of latitude will prove correct. The

north and south trade-waves may be watched for an indication of

the proportion of waterway freight that will go south, keeping in

mind that New York is almost on a direct line north of the western

South American ports.

These West Coast markets may be studied with reference to the

shortening of distance. We may take the fact that from Colon to New

York is 1,981 miles, and from Colon to New Orleans 1,380 miles; add

the 48 miles of future waterway and then make our comparisons of

the ports along the coast--Guayaquil, Callao, Valparaiso--with the

distance through the Straits of Magellan or around Cape Horn. We

also may figure on the national policy of the United States, which

will not be to treat the Canal as strictly a commercial proposition.

The fixing of the toll rates is not near enough to furnish the

basis of definite calculation any more than is the possibility of

estimating the total prospective tonnage each year, though the

guesses have ranged from 300,000 to 10,500,000 tons.

The steamers which ply between New York, Hamburg, or Liverpool and

the Pacific coast ports vary from 3,000 to 6,500 tons. That hardly

may be taken as the measure of carrying capacity of the major part

of the vessels which will pass through the Canal, but on such a

basis the estimate may be made of the saving in coal consumption,

and the radius within which it will be cheaper to use the Canal

than to double Cape Horn or thread the difficult and dangerous

passage through the Straits. For New Orleans, Mobile, and the other

Gulf ports, the element of distance is not comparative, because

heretofore no direct maritime movement between them and the West

Coast of South America has been maintained. With the waterway once

open the whole Mississippi Valley becomes the beneficiary. Nor does

the talk of carrying coal and other cargoes from Pittsburg through

Panama to Patagonia without breaking bulk appear fantastic.

Variations in the steamers’ courses are responsible for the

differences in the tables of distances usually given, but they

are not important.[1] The relation in nautical miles of the chief

shipping-ports on the West Coast to trade centres may be set forth

as follows:

Miles

New York to Colon 1,981

Colon to Panama 48

Panama to Guayaquil 835

“ “ Paita 1,052

“ “ Callao 1,569

“ “ Mollendo 1,928

“ “ Arica 2,161

“ “ Iquique 2,267

“ “ Antofagasta 2,418

“ “ Valparaiso 3,076

1 See Appendix for tables of the Hydrographic Office of the United

States Navy.

This brings Valparaiso within 5,100 miles of New York by way of

Panama; but with the omission of all the intervening ports except

Iquique, Callao, and Guayaquil, it would be less than 5,000 miles.

By way of the Straits the distance from Valparaiso is usually

accounted 9,000 miles, touching at Montevideo and the Brazilian

ports. When the Straits are avoided and Cape Horn is doubled, from

the Cape to Pernambuco is 3,468 miles, and from Pernambuco to New

York 3,696 miles. Either by the Straits or around the Cape the

total is almost twice the distance via Panama.

Colon is 4,720 miles from Liverpool, and the relative advantages of

the West Coast ports between Valparaiso and Panama may be calculated

in the proportion of their respective distances. From Valparaiso

to Liverpool via Panama is 7,600 to 7,800 miles according to the

vessel’s schedule of wayports on the Pacific. From Valparaiso to

Liverpool, through the Straits of Magellan, is 9,800 miles, touching

at the Falkland Islands, and about 300 miles shorter by omitting

them.

For Hamburg the saving in distance by the isthmian route may be

placed at 2,400 miles. Proceeding north from Valparaiso, the loss by

Cape Horn is in inverse proportion. Fifteen hundred miles north of

Valparaiso is the central Peruvian port of Callao, which therefore

has 3,000 miles’ gain in distance by Panama to Hamburg instead of

by Cape Horn.

I have given these general figures before reciting details on the

maritime commerce of the various countries. They show how the

economic value of the Canal to them is primarily a question of

subtraction,--the difference between the coal needed on the longer

sea voyage and the Canal tolls. But the question of the return cargo

also enters into the calculation and is distinctly in favor of the

waterway, as is also that of the duration of maritime insurance.

No statistics are available which show the commerce of the western

departments of Colombia; and the unsettled state of that country

for years past gives no index of what its potential traffic may be.

But the valley of Cauca in its variety of agricultural and mineral

resources is a kingdom in itself. It is a future commercial feeder

to the Canal.

The foreign trade of Ecuador amounted in the latest available year to

$19,000,000.[2] Substantially all of it constitutes what might be

called light freight, and a part of it now goes across the Isthmus

by transshipment. Yet the portion which follows the longer route

around Cape Horn or through the Straits is not small. The traffic

flows through Guayaquil as in a single stream. Guayaquil, by way

of Panama, is 2,864 miles from New York and 2,263 miles from New

Orleans; by the Cape Horn route it is 11,470 miles to New York.

The entire foreign commerce of Ecuador in the future is for the

Panama Canal, except the excess which follows up the coast to San

Francisco and beyond.

2 Statistics obtained by New York Chamber of Commerce for 1904.

The foreign commerce of Peru may be placed above $40,000,000

annually.[3] The bulk of the traffic is now via the Straits of

Magellan and Cape Horn. From Callao to New York, by way of Cape

Horn, is 10,700 miles. By way of Panama it is 3,600 miles, only a

little longer than from New York to San Francisco or from New York

to Mexico City by the transcontinental railroad lines. In reference

to Peru, it also is to be noted that the heaviest exports are from

the ports north of Callao. Sugar is the largest marine freight in

quantity, and this comes from Salaverry and other ports fully 500

miles north. Much of this raw sugar is now carried around Cape

Horn, though some of it is left at the Chilean ports to be refined

for the West Coast consumption. When the Canal is opened, with the

exception of this Chilean traffic, all the raw sugar of Peru will

be shipped through it to New Orleans, New York, or Liverpool.

3 Estimated on the basis of the calendar year 1904, when the total

was $41,000,000, according to the report of the British Consul

General.

Through the port of Mollendo, 360 miles south of Callao, come the

ores, the metals, and the wools, both of southern Peru and of

Bolivia. Some of the minerals may continue their course around the

Horn, and also the guano which Peru in the future may export, but

not all of these cargoes will find the longer route cheaper. All the

wools will take the shorter route. Some wool is sent up the coast

and transshipped across the Isthmus by the railways. This method

is also followed in the shipment to Liverpool of some of the raw

cotton raised in southern Peru. The whole of this light freight is

traffic for the interoceanic waterway.

Bolivian commerce finds its outlet and inlet, chiefly through

Chilean and Peruvian seaports, to the amount of $18,000,000 a year.

Small as this is, the bulk of it follows the Cape Horn and Magellan

routes, though some of the European merchandise is imported on the

Atlantic slope through Argentina. The silver and copper ores are

transported principally through the port of Antofagasta, which is

650 miles north of Valparaiso. For the mineral freights, Canal tolls

may neutralize the advantage of the shortened distance via Panama to

Liverpool, or may not compensate for the lessened coal consumption.

But whether they do or not, the general merchandise from England

and from Germany, not being bulky, will have the shorter course and

probably the cheaper one on the return voyage through the Canal.

But Antofagasta, though of growing importance, is not likely to be

indefinitely the chief port of export for Bolivia. The building of

a railway from the great central plateau to Arica makes it certain

that the copper output of Bolivia, much of the tin, and part of the

silver product in time will be shipped through that port, while

it will be a natural inlet for imported merchandise. Arica is so

close to Mollendo--only 233 miles--that with regard to distances it

may be considered on the same basis. The mineral and other internal

developments, which are to fix the industrial status of Bolivia and

which I shall have occasion to discuss in subsequent chapters, have

a very direct relation to the facilities that will be afforded by

the isthmian waterway.

Formerly it was thought that Chile would be seriously harmed by the

Panama Canal. In the commercial sense this supposition does not

bear scrutiny. Chile’s foreign trade is approximately $130,000,000

annually, with a tendency to reach $150,000,000. By far the heaviest

proportion of this commerce is the shipments of the nitrates of soda

or saltpetre fertilizers. Iquique is the principal shipping-point.

The sailing-ships are the cheapest carriers for these bulky cargoes,

and tolls based on tonnage may make it unprofitable to transport a

large portion of them through the interoceanic channel. There is

also the other consideration that the vessels which bring coal to

the Chilean ports from Australia and from Newcastle secure their

return cargoes of nitrates. These fertilizers being a natural

monopoly, Chile will have the benefit of the industry, and the

Panama Canal in no way can lessen this traffic. In its permanent

effect the waterway can have little influence on the nitrates,

because the deposits will be worked out not many years after its

completion. Within a third of a century, or forty years at the

furthest, the exhaustion of the saltpetre beds will have begun, and

the cargoes of fertilizers will be lessening before that time.[4]

In any aspect of the broad future of the Canal and its effect on

the West Coast, the nitrates of Chile need not be considered as an

influencing factor.

4 See Chapter XIV, Nitrate of Soda.

But it may be said that until the interoceanic canal is actually open

these subjects are too remote to call for immediate consideration.

This view does not hold when analysis is made of the swift

recognition of its effect by South American countries. There are

present-day influences which are clear enough to be taken into

account.

For the entire West Coast there is at once a beneficial result in

having the Canal an enterprise of the United States government. This

is the equal treatment which must be accorded all the steamship

companies in transshipping freight over the Panama Railway. The line

was operated in the interest of the transcontinental railroads to

prevent competition. Under this arrangement little regard was shown

for the traffic from the coast south of Panama. The result of the

control of the isthmian railway line by the transcontinental roads

was against encouraging the steamship lines to seek to increase

their freight between Valparaiso and the intervening ports to

Panama for transshipment, because the Panama Railway exacted what

it pleased.[5] With the stock of the company vested in the United

States, hereafter all traffic agreements must be made on the basis

of equality. This is a very important factor in the tendency of the

West Coast countries to mould their national policies for industrial

development and commercial expansion. It enables them to enjoy some

of the benefits of the Canal without waiting for its completion.

It means more shipping from the year 1906 on.

5 In the memorial presented in 1905 to the United States government

by the diplomatic representatives of various South American

Republics, asking for fair treatment in Panama railroad rates,

these statements were made:

It may be calculated that the most distant ports of our respective

Republics are from New York, 4,500 miles, via Panama. From those

same ports to New York there is a distance of over 11,000 miles,

via Magellan; and, nevertheless, the transportation by this last

route and the transportation by steamer from our ports to Europe,

are on an average from 25 to 30 per cent cheaper than our commerce

with New York via Panama.

The Peruvian sugar pays, by the Isthmus, 30 shillings sterling a

ton, and 23 shillings sterling a ton via Magellan.

The cacao of Guayaquil, via Panama, pays to Europe from 52 to 58

shillings a ton, and to New York 65 to 68 shillings a ton.

From Hamburg shipments of rice from India are constantly being made

to Ecuador, via Panama, at the rate of from 30 to 33 shillings

sterling per ton of 2,240 pounds, or, say, from $7.50 to $8 per ton;

while the same article from New York pays at the rate of $0.60 per

100 pounds, or, say, $13.20 per ton,--an overcharge of almost 75

per cent. Twelve coal-oil stoves, which in New York, free-on-board,

cost from $45 to $48, pay on the coast of Ecuador and of Peru 30

and 37½ cents, respectively, per cubic foot, or, say, $19.20 to

$21, which represents 42.66 per cent upon the cost price. The same

article bought in Germany would pay a freight of from $6.40 to

$6.75.

An international good also comes from the presence of the United

States on the Isthmus in the capacity of a sanitary authority. It

will not be hampered, as at home, by state quarantine systems. The

example of what it is doing at Panama will be of immense benefit to

all the ports south to Valparaiso. Its resources and its assistance

will be at the disposal of the various governments which may seek

its aid. With them power is centralized, and they will be able to

coöperate effectually. The International Sanitary Bureau, with

headquarters in Washington, for which provision was made by the

Pan-American Conference held in Mexico, may become a vital

force through this means. Epidemics and plagues, of which the most

malignant is the yellow fever, may never be entirely wiped out,

but that their area can be restricted and their ravages infinitely

lessened will be demonstrated by a few years’ experience. Commerce

will be immensely the gainer, and the trade of the West Coast may

look for a steady and natural growth in proportion as the epidemic

diseases of the seaports are controlled.

[Illustration: Abandoned Machinery]

The influence of the gold standard of Panama will be helpful to

commerce, though it will not in itself cause the several Republics

which are on a silver or a paper basis to change to gold. But

they will be benefited by being neighbors to financial stability.

Uniformity of exchange will be promoted, and the inconveniences

of travellers will be lessened. The fact that the currency of the

United States is legal tender in the Panama Republic will help

merchants and shippers at home, who heretofore have had to make their

transactions entirely on the basis of the English pound sterling

or the French franc.

In an outline of the general subject some attention should be

paid to the inevitable overflow of energy and capital after they

once become engaged in building the waterway and in supplementary

projects. No one who understands the constructive American character

doubts that the capitalists and contractors enlisted in the work

will fare forth to seek other fields. It happens that coincident

with the beginning of the Canal construction by the United States,

the West Coast countries are entering upon definite policies of

harbor and municipal improvements and other forms of public works,

including railway building. There is also the new era of the mines.

The industrial impulse is one of the immediate economic effects

of the Canal. It appeals to the American spirit. It will find a

quickening response. In subsequent chapters I therefore venture to

indicate its field of activity, with such suggestions as may be of

practical worth.

Panama to Patagonia · 第 1 / 22 章