COLOMBIA: RESOURCES AND INDUSTRIES
While the varied sources of Colombia’s wealth have already been
touched upon, some paragraphs follow concerning the different lines of
production and export.
AGRICULTURE
The country has such variation in altitude as well as such fertility of
soil that not only does almost every sort of vegetation thrive within
its borders, but it exists in most of the Departments. An enumeration
of all the localities where the different articles are found would be
needless repetition. Reference will be made, however, to Departments
where certain products are chiefly grown. With proper cultivation and
ample labor food stuffs might be produced to satisfy every requirement,
but many are imported from other countries more easily than they could
be carried from one section of Colombia to another.
=Coffee=, from the commercial and export point of view, is the most
important agricultural product, in quantity coming next to Brazil,
while in quality the coffee by some is considered second only to
Arabian. Preëminent for its culture are the Departments traversed by
the Central and East Cordilleras, especially Cundinamarca, Antioquia,
Caldas, Santander del Norte; also Cauca, El Valle, Tolima, and the
north slope of the Nevada de Santa Marta. In Colombia coffee grows best
at altitudes of 2000-6000 feet, the higher the milder the coffee. At
5000 feet no shade is required, though necessary when first planted
in most places where it is raised. Everywhere coffee seems to prefer
sloping ground. In Cauca, where 720 trees are planted to the acre,
they produce for 50 or 60 years. Coffee from Santander, mostly going
out by way of Maracaibo, is sold under that name. We hardly think of
coffee as a product of the temperate zone, but in Colombia it is so
classed, growing in the same altitudes as temperate fruits, vegetables,
and cereals.
=Bananas= are the most important crop of the lowlands, especially
since the exploitation of the Santa Marta district by the United Fruit
Company. Ninety per cent of the bananas raised in this section are
exported by the company under contract with private growers. Banana
land of the company is well laid out with irrigating canals, managers’
and laborers’ houses, etc. Export has increased enormously. As the
section is watered by five rivers and many brooks, it is especially
favorable for the irrigation needed. The trunks and leaves of the
plant, which might be utilized for cordage, paper, card-board and
textiles, at present go to waste. The cost of clearing and preparing
land for the industry, with 350 trees to the acre, is about $45. Within
two years the annual receipts are $40, largely profits. The Company
owns 28,000 acres of improved land (10,000 devoted to cattle) and
twice as much land unimproved. The bananas are free of export duty and
taxation. The fruit may be grown in all the lowland sections where
irrigation is practicable, which is almost everywhere. Before the War
the Germans near the Gulf of Urabá started a plantation of 12,000
acres, one third of which is under cultivation.
=Plantains= are widely raised for native use, as they form the chief
article of food for the masses in the lower districts. Higher up maize
is the staple. The plantain requires little cultivation, the crops are
heavy, and the plantations last for years. The fruit is eaten either
green or ripe.
=Sugar cane=, grown extensively on the fertile lands of the valleys,
without fertilizer and with occasional hoeing, gives crops of 80 tons
per acre, averaging 40 tons. It flourishes up to 7000 feet. Small
primitive mills are the rule, but a few with modern machinery have
been established, one near Cartagena. A brown sugar is chiefly made
in the small mills, _pantana_, which is palatable and nourishing; but
some is refined for table use and for the chocolate factories. A large
amount of sugar is used for _chicha_ (sugar syrup fermented with corn),
for denatured alcohol, and for _aguardiente_, a kind of rum; the last
is a government monopoly. The sugar production is hardly sufficient for
local needs.
=Tobacco=, which some think equal to the best Havana, is raised, mostly
for local consumption; formerly much was exported to Bremen.
=Cacao= grows wild on thousands of acres, some trees reaching a height
of 45 feet; but to give the best results it must be cultivated. It is
planted for early protection under bananas, together with other trees
which will give shade later. Local demand consumes most of the supply.
Little attention is paid to its cultivation, though the Magdalena and
Cauca Valleys are well adapted to it. Trees 60 years old are found in
bearing.
=Coconut= palms might be more largely cultivated, plantations existing
chiefly on the coast and islands. The fibres and oil are useful and
many nuts are exported.
=Rice= grows freely in rich, hot, irrigated land, but it is not largely
cultivated.
=Cotton= of excellent quality is raised from Egyptian seed on the
Caribbean coast and in Antioquia; it is found growing wild at low
and moderate altitudes all over the country. But little use is made
of it except where factories are near, these promoting its culture.
The plants, perennials, grow 12 feet high. The cotton, unrivalled for
length of fibre, is all used locally.
=Other fibrous plants= are the _Agave Americana_ or century plant,
which is cultivated as a hedge; enough is produced to satisfy most
of the home demand for fibre for ordinary rope and twine, also for
making common packing sacks, and alpargatas, sandals worn by the poorer
people. Here grow ramie and other shrubs, the fibre of which is used
for vegetable silk. Ramie on the Bogotá River yields 6 crops a year
without irrigation, the stems 6 feet long having a very tough fibre.
Most of the Magdalena land could not be better used than for raising
such plants. A recent invention to extract the fibre by a chemical
process makes its culture important. Jute in Colombia on the same soil
as ramie reaches double the height attained in its native country, and
gives two cuttings a year, the first crop three months after planting.
=Wheat= gives good crops on the highlands, and =maize= (corn) grows
everywhere, in the rich lower valleys producing three crops a year.
Potatoes and other vegetables grow in various altitudes.
FORESTRY
The natural wealth of the forests is enormous, though at present
largely inaccessible for lack of transportation facilities, a condition
which might easily be remedied so far as the forests of the Pacific
Coast and of the Atrato and Magdalena Basins are concerned. The chief
products now are rubber and tagua nuts.
The =Rubber= is of both the _caucho_ and the _hevea_ varieties, the
former of inferior quality, procured by cutting down the trees,
the _hevea_ or fine Pará by tapping. The former is obtained by the
Tolimenses from the Rio Negro section, the latter by Indians of Vaupés,
this being sent down to Manaos. Rubber also comes from Chocó, being
collected by Indians and negroes who exchange it for goods at Quibdó,
at places on the San Juan River, also at Barbacoas, back of Tumaco. A
few plantations have been started in the Atrato and Magdalena Valleys
and near Tumaco. Balatá and chicle are also exported.
=Tagua Nuts=, which have only to be picked up, are gathered in the
forests on the Pacific slope and in the Atrato and the Magdalena
Basins, the best quality from the Sogamoso tributary of the latter.
This is called vegetable ivory, from which buttons, etc., are made.
=Timber= of great value exists, a little of which is exported: Colombia
mahogany, cabinet and dye woods; but there are few saw mills, and the
great variety of trees in a small area renders their exploitation
difficult.
=Medicinal plants= are numerous: cinchona, sarsaparilla, ipecac,
balsams, etc. Many other valuable plants abound but are little
exploited.
LIVE STOCK
The =Cattle= raising industry is one of the most favorable for
immediate profit. The best quality of grass is found on the plains
of Magdalena, Bolívar, and Atlántico, where there are large areas of
planted pasture. An acre and a half supports a steer. Pará grass,
native to Brazil, is used on wet or swampy ground and guinea grass
on drier. On the eastern llanos are millions of wild cattle, with
some ranches; but the grass is generally so poor that the cattle are
sometimes brought to the Magdalena Valley to be fattened, though this
is difficult. There are 4,000,000 head in the country with 80,000
annually available for export. Modern packing houses are now being
established with important Government aid. Material and supplies for
construction are exempt from import duties; and outgo for 20 years
from export taxes. With attention to breeding and to good fodder for
fattening the production may rival that of Argentina.
In the Sinú Valley region are said to be 1,000,000-1,500,000 cattle. An
American and Colombian Company holding 75,000-100,000 acres along the
River, with a herd of 40,000 cattle, is now (1921) erecting a packing
house costing $1,750,000 on Morrisquillo Bay, 60 miles from Cartagena.
They expect soon to begin operations, slaughtering 500 head a day.
On account of proximity to the United States, the prices of Colombian
cattle could probably not be equalled here by the countries farther
south. A packing house at Cali may be desirable.
=Other Stock.= Horses. As an absolute necessity on account of the
scarcity of wagon roads, many saddle horses are raised, Andalusian
crossed with Arabian or English. Some saddle horses are imported from
Peru. Mules and donkeys are found in large numbers. Goats are numerous
in all quarters, and sheep are raised on the highlands. There is a
large exportation of hides and skins.
MINING
This is an industry of great promise, the as yet bare scratching of
the surface showing infinite possibilities for the future. Practically
every mineral of commercial value has been found, including the
rarer metals. The lack of proper transportation makes some sections
impracticable and others difficult, but important work has been carried
on in many places; opportunities lie open in many more. Gold is found
in almost all sections, both in quartz veins and in placers. There
is native silver, and some with gold and tin. Platinum ores running
from 80 to 85 per cent are found with gold and other metals. Iron is
widely distributed; also copper; often with gold, tin, and in primitive
rock formation. Manganese, lead, mercury, sulphur, zinc, antimony,
arsenic, nitre, alum, exist, but are not much worked except sulphur,
which is taken from some volcanoes. The working of the salt mines is a
government monopoly, rock salt and springs existing in large numbers.
From the Zipaquirá salt mine in Cundinamarca the Government receives a
revenue of approximately $1,000,000 a year.
=Coal= was first discovered in 1865 near Santa Marta Bay, and
subsequently other deposits. Most important just now are the beds near
Cali, which are thought to be very extensive, and to extend through
the mountains to the Pacific slope. It is said that enough coal could
be mined to supply the neighboring Republics as well as Colombia. The
probable supply is estimated at 27 million tons. The character of
coal in the country varies from lignite to bituminous. A wide vein of
cannel coal leads from the Nevada de Santa Marta towards the Goajira
Peninsula; an anthracite deposit 25 feet thick extends 50 miles north
and south near the Gulf of Urabá. Coal deposits exist for a distance of
300 miles north and south of Bogotá near the East Cordillera, others
in the formation of the Central and West Ranges. One bed near Cali in
places is 22 feet thick. Coal beds in three layers are cut by the Amagá
Railway, and the locomotives are fired on the track.
=Petroleum= exists in quantity indefinite, but hardly to be
overestimated. The great tract of country extending several hundred
miles back from the entire south shore of the Caribbean apparently
contains a collection of oil reservoirs which may exceed in magnitude
those of any other section of the Western Hemisphere. Nowhere else in
the world, it is said, is there so great a display of seepages and of
petroliferous mud volcanoes.
Colombia presents three more or less distinct regions with various
fields in which operations have been conducted; others in which the
surface indications will doubtless incite to careful examination in the
future. The three well known regions are the Caribbean, the Magdalena,
and the Maracaibo; the last two are also spoken of together as the
Magdalena-Santander Field, since an oil belt extends from Venezuela
south-southwest across Santander and the Magdalena River. But as a
mountain range separates the Maracaibo Basin from the Magdalena Valley,
the two are quite distinct.
The Caribbean Region which extends along the coast from Riohacha to the
Gulf of Urabá has 300 or more square miles of supposedly productive
territory. Many American companies have obtained concessions; more than
100 are organized for the exploitation of this and other districts.
So rapidly have sections been taken up that a considerable part of
the coastal tract west of the Magdalena is already occupied. British
interests also have acquired extensive holdings in the Republic.
Emissions of gas occur in many places, this being the first country
in South America where large amounts have been observed. Among the
petroliferous mud volcanoes is the largest known anywhere. In the
Tubara field is a well 3000 feet deep from which enormous quantities of
gas came off. It has been proposed to pipe the gas to Barranquilla for
use in the city.
The Magdalena pool or region extends along the river valley for several
hundred miles. The fields already occupied are mainly on the east
side. In this section the first oil gusher of Colombia was brought in
not far from Barranca Bermeja, about 400 miles south of Barranquilla.
A second well 2270 feet deep shot oil over the derrick several hours
before it could be capped. It was rated at from 2000 to 20,000 barrels
daily. Steady flow is estimated at 6000 to 8000 barrels daily. The oil,
which is dark with some asphalt, gives about 30 per cent gasoline,
6 of kerosene, 20 lubricating oil, and 12 asphalt. A pipe line and
wagon road are being constructed from the three wells drilled near the
Colorado River 35 miles to Barranca Bermeja where a refinery has been
erected. It is said that this is to supply Colombia with gasoline,
kerosene, and lubricants at prices not above those of New York. The
use of residual fuel oil on the river steamers will greatly facilitate
their operation. It is likely that a larger refinery will be erected at
Cartagena or as rumored on an island at the mouth of the Magdalena, but
the cost of reported pipe lines 300 or 400 miles long in this region
would be prohibitive. Tank steamers will well serve the purpose.
Higher up the river near Honda is the Tolima field where live seepages
occur and a well has been drilled. [Many locations have been secured
in a stretch of several hundred miles along the valley.] This field
includes the upper Magdalena Basin, with which are classed the
groups on the edge of the San Martín and Casanare plains east of the
Cordillera. In the Orinoco Basin oil has been seen floating on the
surface of the rivers.
The Maracaibo Basin, which is chiefly in Venezuela, has a section
running over into Colombia where the Barco concession is located. An
area of more than a million acres is occupied by an American company.
Here oil seepages include some wonderful springs. Oil from one of these
runs a small refinery which produces 25 barrels a day. The oil with a
loss of only 1.1 per cent is said essentially to match the high grade
Pennsylvania oil, selling for $4.00 a barrel at the well. Wells were
first drilled on the Venezuelan side of the Rio de Oro, tributary to
the Catatumbo; later on the Colombian side.
There is further a Pacific district extending north and south from
Buenaventura a distance of 60 or 70 miles, from Quibdó on the Atrato
to Cali on the Cauca with a small section on the coast. The probable
productive area is 18 miles but none is proved.
The location of these extensive deposits, many within 200 miles of
tide water, is of prime importance to the commercial world, especially
because of their proximity to the Panamá Canal, soon to be one of the
great shipping routes of the world. Moreover the port of Cartagena,
which already has several refineries and will serve as the chief depot
of export and supplies, is nearer to New York than is Tampico by 400
miles, than Galveston, Texas, by 50 miles. It is also much nearer
to London, to Panamá, and to our own Pacific Coast. Clearly, the
development of the petroleum deposits of Colombia is of the greatest
interest and importance to the United States. It is believed that its
oil fields will equal or surpass those of Peru.
=Platinum.= At the moment the greatest mining wealth is in gold, with a
good bit in platinum. Over $2,000,000 worth of the latter was exported
in 1917. Platinum, usually with gold, is found in rivers near the
Pacific: the Atrato, Condoto, Platina, and San Juan. Operations have
been carried on in several districts. The concessions of an American
company include a tract on the San Juan and one on its tributary
Condoto and its branches, with holdings north and east of the river
deposits. By means of a small wood burning dredge with annual capacity
of but 250,000 cubic yards, about $600,000 worth of platinum was
obtained in 1918 when the Government price was fixed at $105 an ounce.
With a second and larger dredge now operating and a third expected
soon, much greater production will be realized. In 1920 the value
fluctuated from $70 to $165 an ounce. In June, 1921, it was $75. The
value of the two tracts is estimated at $52,000,000 at the former
Government price. Costs are little greater than in the California and
New Zealand fields, and with suitable precautions taken in the way of
drainage, mosquito netting, etc., as at Panamá, and with good medical
attendance, health conditions have been made about the same as on the
Isthmus. Extraordinary platinum values have been shown; the gravel
handled in 1918 furnishing $2.50 gold and platinum per cubic yard. The
extensive use of platinum in dental work, in jewelry, and for important
though limited service in certain manufactures, in sheet, wire, and
granulated form, indicates an annual need of 165,000 ounces in the
United States alone. A unique opportunity is offered in Colombia for
the production of this valuable metal.
=Gold.= The gold of the Chocó placers has been widely known since
the Spanish Conquest. Four hundred million dollars was taken by the
Castilians from shallow waters and easily worked river banks. In recent
years a number of companies have been operating. The Pato mines cover
40,000 acres near Zaragoza, population 2700, Antioquia, where a dredge
is operated. At the Nechi mines the dredging cost is 9 cents a yard,
the return about 75 cents. In Antioquia there are 20 rivers with
gold alluvium, but operations are chiefly on the Cauca, Nechi, Pato,
and Porce. The bench gravel is very deep and can be worked profitably
(except at times by the natives) only with machinery, as is the case
generally. Therefore considerable capital is necessary for a successful
enterprise. More than 12,000 gold bearing sites are known in Antioquia;
many in Nariño, Caldas, El Valle, Tolima and Chocó. The gold production
in Colombia since the Conquest is estimated as above $600,000,000 and
that of silver as $30,000,000.
=Emeralds.= The most famous mining industry of the country is emeralds;
for nowhere else are they produced in quantity and here are the best.
The mines were worked long before the coming of the Spaniards, and
the actual labor has been performed by the Indians ever since. The
mining has been a Government monopoly. The area is a region of 4000
square miles, but the only mine recently operated is the Muzo, 92
miles northwest of Bogotá. It is now worked by the open system though
formerly by tunnel. The workers live on the ground in buildings
provided for the men and officers, with police to prevent thieving.
Present operations are in almost vertical cliffs rising from 100 to
550 feet above small valleys. The loose soil is not removed by water,
as is stated elsewhere; the emeralds are separated from the soil by a
dry method; water is used to carry away the detritus and also to wash
the residue left by material from rotten veins in order to expose small
emerald crystals. The output in normal years approaches 800,000 carats.
No attempt should be made to obtain a possible concession without
thorough investigation and ample capital. The same may well be said of
any mining venture. A concession for emerald mining has been secured by
an American company.
OTHER INDUSTRIES
=Manufacturing= is fostered by high duties on many goods; further
by concessions such as exemption from taxes, land grants, or money,
to persons establishing factories. In return the goods must be sold
lower than those imported. Some large business firms finance other
enterprises such as coffee and factories. Of manufactures textiles are
the most important. In Barranquilla there are 200 British electric
looms run by boys and women; British yarns are imported and worked
up into domestics and drills; there are other factories at Bogotá,
Cartagena, Medellín, and two for fine woolen cloth at Bogotá. Some
cotton spinning is done; two new spinning mills in Barranquilla each
have 2500 spindles. In cottages are many looms for the spinning of
wool, in which the Indians are very proficient.
In one place or another are factories of almost every kind: silk,
flour, chocolate, matches, shoes, tanneries, ice, mineral waters,
breweries, tiles, iron and steel, glass, candles, soap, etc. Bogotá has
the largest number of factories, about 40, Medellín the next; others
are well scattered over the country. Few do much more than supply local
wants, partly on account of the difficulties of transportation.
=Export.= The only manufactured product important in export is _Panamá
hats_. The principal centers of the industry are Antioquia, Nariño,
Huila, and Santander Sur. The hats are made of _toquilla_ palm, the
young leaves of which are cut off, split into thin strips by a small
wooden knife, spread out in the sun to dry, and then woven. The hats
are not made under water, but the straw must be kept very damp to avoid
breaks and splits; so weavers sometimes go into damp caves. Near Pasto,
Nariño, hats are made almost equal in fineness to those of Montecristi,
Ecuador. The industry has a bright future unless Japan by cheaper labor
drives the South American product from the market. To prevent this the
export of raw straw may be forbidden.
INVESTMENTS
Colombia obviously offers a wide and varied field for investments,
but like the other South American Republics, on account of low wages,
it presents no opportunities favorable to ordinary laborers unless in
agriculture. An immigrant may receive a free grant of land of 6175
acres, which he must within ten years cultivate over one third of the
area; or if cattle lands, two thirds must be occupied.
Various forms of agriculture may be attractive to persons of moderate
capital: sugar cane, bananas, coffee, cacao, cotton, fruits, etc., as
also agave or other fibre material. Tagua groves in _baldíos_ may be
exploited.
Discoverers of mines in _baldíos_, Government lands, have a
preferential right to 1250 acres of land adjoining the mines denounced.
The abundance of water power is of great value to investors of every
kind, being equally important for mining, factories, and agriculture.
Factories on account of high tariffs make excellent profits. Cattle
and sheep raising offer good prospects. Public works including
drainage, water supply, sewers, road and railway construction, bridges,
and development of electric power should afford many and varied
opportunities.