BawoJf {£= BANCROFT LIBRARY DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE SPECIAL AGENTS SERIES— No. 208 BOLIVIA A COMMERCIAL AND INDUSTRIAL HANDBOOK BY W. L. SCHURZ Trade Commissioner PRICE, 65 CENTS Sold by the Superintendent of Documents, Government Printing Office Washington, D. C. WASHINGTON GOVERNMENT PRINTING OFFICE 1921 r 3 3 1 a H5H |,BCroft Library fcrtv»r»iry of California WITHDRAWN CONTENTS. Letter of submittal H Introduction 13 Geography 13 Topography Mountains 14 Rivers and lakes 15 Climate I 7 Eastern plains 18 Intermediate region ' 19 High plateau 20 Health conditions 22 Effect of high altitude 22 Medical and surgical service available 23 Mortality statistics 23 Malarial fevers 24 Amazon region — Department of Santa Cruz 24 Population and living conditions 25 Census statistics 25 White element in population 2G "Cholos," of mixed white and Indian blood 27 Indians 27 Aymaras 28 Quechuas 29 Minor tribes 30 Negroes 30 Foreign population 30 Government 31 Executive branch 32 Legislative and judicial authority 32 Administrative divisions 33 Political parties 34 Diplomatic relations 35 National army 35 Education and intellectual life 35 Public-school system ■ 36 Primary instruction 37 Secondary instruction 38 Private schools maintained by religious organizations 38 Vocational training 38 Universities 39 General literary activity 40 Newspaper press 40 Re ligion >■ 41 3 •4 CONTENTS. Page. Cities and towns 42 La Paz 42 situation and plan 42 Architecture and building 43 Water supply and Bewage 44 Electric light and power 45 Street railways 45 Telephones 45 Police 45 Fire protection 46 Markets 46 Banks 47 Hotels and clubs 47 Theaters and other amusements 47 Cost of living 48 Cochabamba 48 Oruro 50 Sucre 50 Potosi ^l 51 N, Santa Cruz -V - - &2 Tari j a 17 52 Uyuni 53 Other towns 53 Transportation and communications 55 External trade routes 55 Railways ^ 58 Historical survey 58 Problems of railway construction 59 List of railways 60 Lines of A ntofagasta & Bolivia Railway Co 61 Arica-La Paz Railway 69 Guaqui-La Paz Railway 71 Tarejra-( 'orocoro Railway ?:"> Machacamarca-Uncia Railway 74 tJyuni-Huanchaca line 74 Cochabamba-Vinto and Cochabamba-Arani lines 7-1 Railways under construction 76 Y/ungae Railway 76 Atocha-La Quiaca 79 Potosi-Sucre S2 Projected railways BS Cochabamba-Santa Cruz 83 < lochabamba-El Beni 85 Santa I Iruz-Paraguay River S5 Santa < fruz-Argentina 86 Guayaramerin-Riberalta S6 La Quiaca-Tarija 87 Roads 87 < 'onditions of mad building 87 Roads of Depart i ne, it of La 1'az 89 Roads of I department of < truro 90 Roads of Department of < lochabamba 91 CONTENTS. Transportation and communications — Continued. Roads — Continued. Page. Roads of Department of Potosi 91 Roads of Department of Chuquisaca 93 Roads between the plateau and the plains country 93 Local roads of eastern Bolivia 95 Lake and river navigation 98 Telegraphs 100 Mining 102 Introductory survey 102 Factors affecting the mining industry 102 Transportation 102 Labor 103 Fuel and power 104 Smelting 104 Duties 105 Mining law 107 Tin 108 Silver HI Copper - 112 Lead : H 3 Antimony 114 Tungsten H5 Bismuth HO Zinc H7 Molybdenum 117 Gold H8 Other minerals 119 Mining districts and principal interests 120 Araca 120 Aramayo-Francke 121 Berenguela. 122 Caracoles 122 Colquechaca 123 Colquiri 123 Corocoro 124 Huanchaca 125 Huanuni 127 Llallagua 128 Monte Blanco 130 Morocacala 130 Oploca 130 Oruro 131 Pazna 133 Porco 134 Potosi 134 Sur Yungas 136 Uncia 136 Other companies 137 Petroleum ■ 138 Developments carried out 138 Location of oil fields 139 6 CONTENTS. Petroleum — Continued. Page. Bolivian laws regarding petroleum lands 140 Law of December 12, 1916 140 Law of February 6, 1920 HO Law of February 24, 1920 140 Interests in field 141 American 141 Richmond Levering & Co 141 Argentines-Bolivian Exploration & Development Co., Buenos Aires 141 Sinclair & Co 142 British 142 J. Backus 142 Anglo-South American Oil Fields (Ltd. ) 142 Chilean 142 Transportation problems 143 Stock raising 144 Introduction: Live-stock statistics 144 Cattle 145 Plateau region 145 Region of ( ochabamba 145 Sucre district 146 Bolivian Amazonia 146 Department of Santa Cruz and region to south 148 Exports and imports 148 Sheep and other wool-bearing animals 149 Sheep 149 Llamas 149 A lpacas 150 Wool trade I :,,) Hogs 152 Goats L52 Burros, mules, and horses 152 Fur-bearing animals 152 Agriculture 1 54 General condition of the industry 154 Agriculture on the ' ' altiplano " 155 Department of Cocbabamba 156 Classes of lands— Areas cultivated and income derived 156 Need for extension of irrigation 157 Raising of corn — Manufacture of ''chicha'' 158 Wheal production — Possibilities of flour-milling industry L58 Large acreage of barley — » tther products 159 Pruil '.tow ing 159 Primi cultural met hoc is 160 Prospective market for simple agricultural machinery 160 Eaime worked by Indian tenants 161 Marketing of Earm products 161 Region of Sucre "'I Agriculture Ld the Yungas ">2 Estate of Sindicato de Bolivia 162 < 'ultivati f coca plant 163 ■«• production and trade "'4 Cacao cultivation— Other products 165 CONTENTS. < Agriculture— Continued. p "«?; Agricultural possibilities in eastern Bolivia ib0 Crops grown— Principal districts developed 166 Region of Santa Cruz 166 Forest industries Woods Rubber Producing districts Kinds obtained— Location of trees 17 ° Laws regarding rubber lands • 171 Principal companies Methods of exploitation—' ' Herringbone system " 172 Scarcity of labor supply Y[^ Improvement in condition of rubber gatherers 173 Competition of plantation rubber I' 4 ■ 1 7^ Comparative prices x< " Export duties dependent on rubber quotations 175 Classification of rubber Exports from 1S90 to 1919 176 Relation of rubber to other exports 177 United States chief country of destination 177 Production by districts Quinine bark ,i. * ■ 180 Manufactures Alcohol ™ Beers and wines F^ur lg Candies and chocolate x< ~ S^r Jj* Matches Leather goods and tanning ^ 4 Boots and shoes Kails J Cigarettes Woolens " ?>' 188 Labor conditions Colonization, immigration, and lands 1* Fundamental legislation— Zones set aside for colonization 190 Small benefit to State— Suspension of original law 191 Establishment of three national Territories i92 Law governing immigration 19 Relatively small number of immigrants I 93 Trade f 5 The Bolivian market x ™ Business interests Character of stores and business buildings Buying methods Jjjjj Traveling salesmen Commission houses Territory tributary to principal centers 204 La Paz 204 Oruro 204 205 Cochabamba Potosi 20C 8 CONTENTS. Trade — Continued. Territory tributary to principal centers — Continued. Page. Sucre 206 El Beni 207 Santa Cruz 208 Ivuni 209 Tarija 209 Trade-marks 209 Shipping directions 211 Packing 211 Routing 212 Shipping documents 214 < i insular invoices 214 Financing of trade 216 Price quotations 216 Credit terms 217 Deliveries and collections 218 Import tariff 220 Statistics of foreign trade 220 Total foreign trade for period 1909-1919 221 Exports by classes of goods 221 Exports by Departments 223 Exports by countries of destination 224 Imports by classes of goods 226 Imports by Departments 226 Imports by customhouses 227 I mports by countries of origin 228 Principal lines of goods imported 230 Hardware 231 1 < '< instruction materials 230 Mining machinery 231 Electrical goods 231 Motor vehicles 232 Foodstuffs and groceries 232 Textiles 233 Ready-made wearing apparel 234 Boots and shoes 235 Drugs and chemical.- 236 Paper and stationery '-'■'" Furniture 238 .leu dry 238 ( (ther classes of goods 239 Investments. 240 Bolivian 240 American 241 British -" French - ' ' German -" Chilean 242 Banking and money 243 Banking law 243 Banks operating in Bolivia i 243 Banco de la Naci6n Boliviana 243 Banco National de Bolivia 245 CONTENTS. 9 Banking and money — Continued. Banks operating in Bolivia — Continued. Page. Banco Mercantil 246 Banco Aleman Transatlantic 246 Credito Hipotecario de Bolivia 246 Banco Hipotecario Nacional 247 Banco Garantizador de Valores 247 Private banks 247 Monetary system 247 Exchange 248 Public finance 250 National finances 250 Budget 250 National debt - 252 Departmental finances 254 Municipal finances 255 Appendix: Travel notes 256 Routes from United States to Bolivia 256 Via west coast - - 256 Via east coast 257 Accommodations for travelers in principal cities 259 La Paz 259 Oruro 259 Cochabamba 259 Potosi 260 Sucre 260 Santa Cruz 260 ILLUSTRATIONS. Fig. 1. General view of La Paz facing. . 1 2. Aymara Indian type, La Paz facing. . 28 3. "Chola" type, La Paz facing.. 28 4. Alpacas in the Carangas district facing. . 29 5. Llama train near La Paz facing. . 29 6. Office building in La Paz facing. . 44 7. Type of new buildings in La Paz facing. . 45 8. Street in Sucre facing. . 45 9. Pack train on mountain road facing. . 88 10. Valley road below La Paz facing. . 89 11. Mines of Pulacayo facing. . 126 12. Concentrating mill for tin ores at Huanuni facing. . 126 13. The Cerro of Potosi facing. . 127 14. Copper mines of Corocoro facing. . 127 15. Primitive machine for crushing sugar cane facing. . 156 16. Thrashing peas in the Cochabaniba region facing. . 156 17. Coca terraces in the Yungas, before harvest facing. . 157 18. Coca terraces, after harvest facing. . 157 19. Graphic representation of Bolivian trade with United States 225 20. Shop front in Potosi facing. . 242 21. Corner of market in Oruro facing. . 242 22. Banco de la Nacion Boliviana in Oruro facing. . 243 23. Banco Mercantil in La Paz facing. . 243 Map of Bolivia facing. . 260 LETTER OF SUBMITTAL. Department of Commerce, Bureau of Foreign and Domestic Commerce, Washington, May 10, 1921. Sir: There is submitted herewith a commercial and industrial handbook of Bolivia, by W. L. Schurz, a trade commissioner of this Bureau (now commercial attache at Rio de Janeiro) , who is also the author of the handbook of Paraguay, which was published as Special Agents Series No. 199. Similar handbooks of Colombia and of Venezuela, prepared by another representative of the Bureau, will soon come from the press. Mr. Schurz made a comprehensive personal investigation of the economic activities in Bolivia and the conditions governing the com- mercial life of the Republic. The results of his studies, embodied in this handbook, will, it is felt, be of substantial benefit to Americans who desire to sell in the Bolivian markets or to participate in the development of the country's great natural resources. Mr. Schurz wishes to express his thanks to the following persons, who aided him in the course of his investigations of conditions in Bolivia: S. Abbott Maginnis, American Minister; W. Duval Brown, American consul; Nelson R. Park, American vice consul; Bautista Saavedra, President of the Republic; Jos6 Gutierrez Guerra, former President of the Republic; Carlos Gutierrez, Minister of Foreign Affairs; Julio Zamora, Minister of Finance; Ernesto Careaga Lanza, Minister of Government; Cesar Ochavez, Minister of Public Works and Industry; Gen. Zenon Cossio, prefect of the Department of Cochabamba; David Ascarrunz, prefect of the Department of Oruro; Nestor Velasco, prefect of the Department of La Paz; Moises Ascarrunz, director of the Bureau of Statistics; Carlos Tejada Sorzano, director general of the National Railways; Jacob Backus, general manager of the Bolivian section of the Antofagasta & Bolivia Railway; Angel Sandoval, delegate of the Territory of Oriente and now justice of the Supreme Court. Respectfully, C. E. Herring,, Acting Director of Bureau. To Hon. Herbert Hoover, Secretary of Commerce. 11 UNITS OF MEASURE AND VALUE USED IN THIS WORK. Measures. Unit. Equivalent. ■Weight Kilo.. 2. 2 pounds. . 45 kilo. Metric ton 2,205 pounds. 101. -11 pounds. .264 gallon. 3. 7S3 liters. Volume, liquid Spanish quintal Gallon Length of distance. . . Foot . :;nts meter. . 02 mile. Mile Acre Square league (1,875 hectares. <4, 632 acres. 1 7. 2 square miles. Value. Value in United Stales gold. Boliviano I |o. 3893 Chilean gold peso . 3650 Chilean paper peso (») 1 The exchange rate for the boliviano has varied as follows during 1919 and 1920, according to a statement issued by the United States Treasury Department: Apr. 1, 1919, 10.3785; Oct. 1, 1919, $0.33; Jan. 1. 1930 S0.3257; April 1, 1920, $0.3497, Julv i, 1920, S0.33U; Oct. 1, 1920, $0.3175; Jan. 1, 1921: $0.2717; April 1. 1921,80.26. J The exchange rate for the Chilean paper peso (inconvertible) has varied, during 1919, 1920, and 1921, between $0.1375 and $0.2075. 12 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. INTRODUCTION. GEOGRAPHY. Bolivia, one of the two inland countries of South America, is bounded on the north and east by Brazil, on the south by Argentina and Paraguay, and on the west by Peru and Chile. The Republic formerly had an outlet to the sea through the Department of Ata- cama, but lost its Pacific littoral, including the port of Antofagasta, in the war with Chile in 1879. Though no accurate survey of the extent of the country has been made or can be made until its boundaries are defined, its area has been estimated at from 473,560 to 704,195 square miles. The National Bureau of Statistics puts the area of the Republic at 514,464 square miles, though this is very probably in excess of the true figure. Its area is approximately that of the neighboring Republic of Peru and about twice the size of the State of Texas. The Republic is divided into eight Departments and three national Territories. These divisions, with their respective areas, are as follows : Divisions. Location. Area. Square kilometers. Square miles. Departments: La Paz Oruro Cochabamba. Potosi Chuquisaca.. Tarija Santa Cruz. . El Beni Territories: Colooias Oriente Chaco Northwest . . . West-central . Central Southwest . . . Southeast South East North Northwest . East Southeast . 105,400 53,518 85,514 116, 663 94, 125 81, 779 301,422 247, 033 72, 381 74,341 120,626 Total 1,332,808 40,686 20,657 25,288 45, 031 36. 342 31,567 116,344 95,354 27, 939 28,695 46, 561 514,464 As the ownership of the entire extent of the Gran Chaco is in dispute with Paraguay, figures as to the area of the Bolivian section must still be considered as purely arbitrary estimates. The north-and-south distance from Manoa, at the junction of the Abuna and Madeira, to Yacuiba, on the Argentine border, is about 930 miles. From Charana, where the railway from Arica to La Paz crosses the frontier, east by Cochabamba and Santa Cruz to Puerto Suarez, on the Paraguay River, the distance is about 1,120 miles. From Guaqui, on the southern shores of Lake Titicaca, southeast over the length of the Bolivian plateau to the Argentine railhead at La Ouiaca is about 560 miles. 13 14 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. TOPOGRAPHY. Because of the circumstance that the predominant industry of the Republic has always been mining and that this mineral develop- ment is naturally concentrated on the plateau, Bolivia is popularly believed to be a prevailingly mountainous country- However, although the principal centers of population and the economic center of gravity of the Republic are located on the plateau, more than two-thirds of its area lies to the east of the mountains in the great plains that stretch south with few breaks from the Acre and the Abuna and merge into the disputed "llanuras" of the Chaco. In fact, the surface of Bolivia can oe roughly divided into three general regions — (1) the mountain, or Andean; (2) the intermediary, or "montaiia;" and (3) the plains, or Amazonia-Chaco. MOUNTAINS. There are three quite clearly definable ranges of the Andes in Bolivia. The first and most westerly of these is the Cordillera Occidental, whose greatest heights lie across the border in Chile, but whose eastern slopes and outposts lie within the confines of Bo- livia. The loftiest peak of the Western Cordillera lying within Bolivia is Sajama, with an altitude of 21,526 feet. Most of the mountain area lies among the Cordillera Real, or main range of the Andes, which enters Bolivia by the Province of Munecas to the north of Lake Titicaca and extends in a slightly southeasterly direc- tion to the Argentine border. The highest part of the Royal Cor- dillera lies within the Department of La Paz, where the traveler approaching the capital from Viacha sees before him a vast wall of snowcapped mountains, with several lofty peaks towering above the general level of the plateau. The loftiest of the Bolivian peaks are Illimani and Illampu. Illimani, which is clearly visible from La Paz, is estimated to De about 22,572 feet high. Illampu towers above the town of Sorata, to the northeast of Lake Titicaca, at a height of about 23,900 feet above the sea. Other notable peaks are: Chacha- comani, 21,428 feet; Torani, 21,320; Parinacocha, 20,529; Quim- sachata, 19,909; and Huayna Potosi, 19,680. Though the Cordillera Real is at its highest in the Department of La Paz, it extends across the Departments of Oruro and Potosi, and its more easterly ranges cover the western part of the Departments of Cochabamba, Chuquisaca, and Tarija. Near the point where the three Departments of La Paz, Oruro, and Cochabamba meet, another chain of the Andes, known as the Cordillera Oriental, or Eastern Cordillera, branches off to the east and crosses the Department of Cochabamba, finally descending by stages into the plains of Santa Cruz. The highest point of this range is Mount Tunari, which over- looks the city of Cocnabamba at a height of 16,400 feet. Between the two principal ranges of the Andes lies the great Bolivian "meseta" or table-land, which extends from Lake Titicaca south to the mountain knot of Sur Lipez. For the greater part of its length it is traversed by the main line of the railway from Anto- fagasta to La Paz. The plateau floor is about 450 miles long, with an average width of about 80 miles. Its average height above lie is about 12,465 feet, ranking it with the Tibetan plateau among the highest inhabited regions of the globe. Its surface is not uniform, though t here are large extents of level country, as in the Uyuni plains INTRODUCTION. 15 of Nor Lipez and in the Carangas region of the Department of Oruro, while the ''alto" of La Paz is very characteristic of the table-land. Much of the northern part of the "meseta" is broken by ranges of hills and offshoots of either one or the other of the main cordilleras. Two large depressions in the table-land are filled by the lakes of Poopo and Coipasa. The surface of the plateau is treeless, and its general aspect is bleak and desolate, though much of it is covered with grass and with a low scrub growth known as " tola." Consider- able areas of barley are also grown by the Indians of the region. On the eastern slopes of the Cordillera Real and on the northern side of its offshoot, the Cordillera Oriental, is an intermediary district of deep valleys, which is generally known in South America as the " montana," but in Bolivia is called the Yungas. The Yungas proper of the Departments of La Paz and Cochabamba is a region of heavy rainfall and semitropical or tropical climate, with a correspondingly luxuriant vegetation. Its typical products are coca, coffee, and oranges. Southward from the Province of Vallegrande, in the Department of Santa Cruz, the character of the country lying among the eastern ranges and foothills of the Andes changes quite radically. Temperatures are generally lower and the rainfall is much less, with the result that the vegetation is sparser. Also, the descent from the " paramo," or higher parts of the Andes, to the region of warm valleys is much more gradual than in the Department of La Paz, where a traveler who crosses the divide in the morning, at a height of more than 15,000 feet, may be down among the orange groves by nightfall. The lowland region of Bolivia includes the Territory of Colonias, the Department of El Beni, the northern half of Cochabamba, nearly all of Santa Cruz, the eastern parts of Chuquisaca and Tarija, and the uncertain extent of the Bolivian Chaco. The Chaco is a vast plain with a slight fall toward the southeast. Most of it consists of open prairie, but islets of palm trees are scattered at frequent intervals over its surface, and nearer the Paraguay River its monotony is broken by denser forests which contain the famous quebracho tree. In contrast to the well-watered Beni region about the Amazon head- waters, the Chaco is almost riverless. The Beni region consists for the most part of a vast forested or "selva" country, with some wide areas of open lands, as in the Mojos plains of the Mamore basin. This district, the Bolivian Amazonia, is the seat of the rubber industry of the Republic. Between the Amazonian and Chaco plains lie the Chiquitos highlands of the Department of Santa Cruz, whose maximum height is 3,894 feet. To the west, the easternmost outposts of the Andes reach out across the Province of Vallegrande, until their final undulations disappear a short distance from the city of Santa Cruz. The gap between the Vallegrande and the Chiquitos highlands is largely occupied by the lowland wilderness of the Monte Grande, which thus connects the plains of the Beni with those of the Chaco. On one side of the Monte Grande flows the San Miguel and on the other the Guapay or Grande — tributaries, respectively, of the Itenez and Mamore systems. RIVERS AND LAKES. There are three quite independent drainage systems in Bolivia — the Amazon, the Paraguay-Plata, and the Lake Titicaca-Desaguadero system of the plateau. 16 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Of Amazonian rivers, the Acre and the Abuna form part of the northern border of the Territory of Colonias. The Acre is a tributary of the Purus, and its waters reach the Amazon through Brazilian territory. The Abuna empties into the Madeira at Manoa, opposite the Porto Murtinho station of the Madeira-Mamore Railway. The Madeira, the Mamore, and the Itenez form the boundary of the Republic from the mouth of the Abuna around to the fourteenth parallel. The Beni is an exclusively Bolivian river and drains most of the Department of La Paz as well as a wide area of lowland country. Its greater tributary, the Madre de Dios, drains the Territory of Colonias. The Mamore itself reaches south into the very heart of the Republic, the Azero, of this system, rising in the latitude of Potosi, near the twentieth parallel. The following chart will show the general scheme of the river systems of this region; the principal tributaries of each stream are indicated by indentions, and the names by which the upper courses of some of the rivers are known appear in parentheses : Amazon. Acre. Madeira. Abuna. Rapirran. Beni. Orton. Tahuamanu. Manuripi. Madre de Dios (Manu). Heath. Azul. Marcapata. Inambari. Madidi. Cochabamba. Bopi. Tamampaya. La Paz. Miguilla. Kaka. Mapiri. Tipuani. Mamore. Yata. Itenez (Guapore), Itonama (San Miguel). Machupo. Baures. Blanco. Paragua. Verde. Yacuina. Rapulo. Apere. Tijamuchi. D Orbigny. Secure. lsiboro. Sara. I trande. Pirai. Chapare. ( liiinore. Ichilo. INTRODUCTION. 17 There are two distinct branches of the Paraguay River system in Bolivia. One of these drains the Chiquitos region in the eastern part of the Department of Santa Cruz. The other consists of the Pilcomayo and the Bermejo, with their tributaries, which drain the southern part of the Republic. The Pilcomayo rises to the north- west of the city of Potosi and, after flowing eastward in a deep gorge, which is crossed by the road from Potosi to Sucre, it turns to the southeast. It then continues in the same general direction for hundreds of miles until it flows into the Paraguay a few miles below Asuncion. From the point where it crosses the twenty-second parallel of latitude to its mouth, it forms the boundary between the disputed area of the Chaco and the Argentine Republic. For this part of its course the Pilcomayo receives no tributaries larger than small creeks, and for a long distance below the twenty-fourth parallel it is lost in the vast morass known as the Esteros de Patino. From this region of reedy swamps it again issues in a clearly defined channel. The tendency of the Pilcomayo to shift its course has produced at least one boundary dispute between Bolivia and Argen- tina. The Bermejo rises to the south of the city of Tarija and forms the western side of the Bolivian wedge that projects south into Argentine territory, while the Rio Grande de Tarija, its tributary, forms the eastern side of this wedge. After leaving Bolivian terri- tory it flows southeast, roughly parallel to the Pilcomayo, until it empties into the Paraguay. The hydrographic system consisting of the lakes of Titicaca, Poopo, and Coipasa and the Desaguadero River is entirely independ- ent of both of the other drainage systems of the country. Its area extends from near Sandia in Peru to a place west of the city of Potosi, or over 5 degrees of latitude. Lake Titicaca lies on the border between Bolivia and Peru, at an altitude of 12,644 feet above sea level. Its total area is about 5,187 square miles, and its greatest depth nearly 900 feet. Its extreme length is 138 miles, and its greatest math is 69 miles. It is surrounded by mountains and contains some rugged islands famous in pre-Spanish times. The two peninsulas of Huata and Copacabana almost meet at the Strait of Tiquina, through which the steamers between Puno and Guaqui are compelled to pass. The Desaguadero River forms the outlet of Lake Titicaca and really serves as a canal to carry its waters into Lake Poopo, which lies 185 miles to the southeast, at an altitude 505 feet lower than Lake Titicaca. This it does at the rate of over, 5,900 cubic meters per minute. However, the fact that only about 56 cubic meters of water issue from Lake Poopo during an equal time would appear to show that this lake has a subterranean outlet to the Pacific. In normal seasons Lake Poopo has an area of about 386 square miles, but during the rainy season it may overflow a much greater extent of territory to the north and west. Lake Coipasa lies to the west of Poopo, into which its waters flow through the Lacahuira. It is a shallow body of water, whose limits are variable and ill defined. CLIMATE. In view of the great differences in altitude between the low plains of the north and east and the higher regions of the plateau, it is only natural that there should be a corresponding diversity of climates in 44462°— 21 2 18 BOLIVIA: A COMMERCIAL AND HTOIJSTBIAL HANDBOOK. Bolivia. The extreme* difference in height above sea level between Puerto Suarez on the one hand and the summit of Illampu on the other, is about 23,600 feet, and the average altitude of the plateau is nearly 12,000 feet higher than the average level of the eastern plains. The mean average temperature of the Amazonian region up to an altitude of 2,000 feet is about 74° F.; up to 8,000 feet, in the intermediate region, it is about 63°; and on the "altiplano," between 11.000 and 14,000 feet, it is about 50°. The difference in latitude between the northern and southern extremities of the Republic is about 13° 30'; however, altitude is a much more import- ant determinant of local climatic conditions than is latitude. The customary division of Mexico by climatic belts into " tierra ealient e," "tierra templada," and "tierra fria," or hot, temperate, and cold regions, could also be applied to Bolivia. EASTERN PLAINS. The climate of the eastern plains country, to an altitude of nearly 2,000 feet in the Andean foothills, is clearly tropical, However, the climate of the southern portion of this region — that is, to the south of the Department of Santa Cruz — is one with very marked differ- ences between summer and winter, and may be classed as rather subtropical than tropical. While the summer heat is excessive in the Tarija and Chaco regions, the winter nights may be uncom- fortably cold. This is also an area of much less rainfall than the Amazonian region to the north. In the latter area there are two general seasons in the year, as throughout most of Bolivia. Of these the dry season coincides with the period of lowest temperatures and lasts from about June to November, while the rainy season, which is also the time of highest temperatures, covers the months from December to May, inclusive. During the dry winter season the weather is quite agreeable, the nights being generally very comfortable, though it is usually hot during the day. The mean annual temperature in the shade at Trinidad in the Beni is about 82° F., and even on summer nights the thermometer may register as low as 66° or 72°. At Villa Bella, which is situated at the confluence of the Beni and the Mamore in about latitude 10° 20' S., the average temperature throughout the year is about 86° F. The cooling "surazos" or south winds, which Jblow in September and October, often cause violent variations in temperature within a short time. From December to May there are almost daily Falls of rain. These torrential and continuous rains cause the rivers to rise and flood vast areas of country, which remain inundated for months. The combination of heavy rainfall and high humidity with the tropical temperatures prevalent for most of the year is responsible for the luxuriant growth of vegetation which covers the greater part of this region. The climate of the Santa Crux region varies from subtropical to tropical, the differenl climatic gradations depending on the diversi- ties of altitude and latitude and on the relative predominance of Idi-cst or open country in certain localities. There is little rainfall between July and November, but there are heavv rains from Novem- ber to March, and rain may also fall in May and June. The rainfall INTRODUCTION. 19 is heavier in the low-lying Provinces of Cercado, Sara, Nufio de Chavez, and Velasco than in those of Vallegrande and Cordillera and in most of Chiquitos, though there are occasional torrential rains in the outlying ranges of the Andes and in the hill country of Chiquitos. In some years there is a dearth of rain in Cordillera, especially in the parts bordering the Chaco, though there is generally a supply of subsurface water that could be reached with artesian wells. The average yearly temperature in the shade at Santa Cruz is about 77° F. In June and July the thermometer may fall to 43° in the early morning, though the winter temperatures usually vary between 52° and 72° F. During the summer the temperature varies from 77° to 95° and may even rise to 99° or 100° F. INTERMEDIATE REGION. The climate of the intermediate region on the eastern side of the Andes, between about 3,000 and 9,000 feet above sea level, varies from subtropical to temperate. The Yungas proper, as well as the higher country in which Cochabamba and Sucre lie, is included within this zone. The town of Sorata, lying near Lake Titicaca at an alti- tude of about 8,888 feet, has a mild climate which should make it a favorite resort for the people of La Paz. The climate of the Yungas is warm and in the lower altitudes is even quite hot. The dry and wet seasons are generally very closely marked off, the months of heaviest rainfall being from December to March or April. Little or no rain falls during the so-called winter season, which extends from June into September. The rainfall, which is produced by the moisture- laden winds from the Amazon Basin coming into contact with the mountains, varies directly with the altitude. At Chulumani, which is situated at an altitude of about 3,500 feet, the annual fall is about 40 inches. At the Neque Jahuira camp of the Yungas Railway, which lies at an altitude oi 6,790 feet, the rainfall for the first three months of 1920 amounted to 1,600 millimeters, or about 53 inches. The temperature at Chulumani varies from 64° to 88° F., but the winter mornings at the level of Neque Jahuira may be quite chilly. At the Rinconada camp of the railway, which is located at 13,760 feet, the thermometer falls to several degrees below the freezing point, heavy falls of snow are frequent, and the weather is inclement throughout the year. On the descent into the Yungas of La Paz from the divide at 15,3.00 feet, the first trees are seen at Pongo, at an altitude of 8,900 feet, and the first orange trees are encountered at Chaco, at 6,225 feet. The mean annual temperature of the city of Cochabamba, which lies at an altitude of 8,435 feet, is about 66Jr° F. There are no un- pleasant extremes of either heat or cold, and the climate is agreeable throughout the year. The warmest days occur in January and the coolest in July. The proportion of sunny days in the year is much greater than that of cloudy days. The climate of Sucre, at an altitude of 9,338 feet, is exceptionally mild and pleasant throughout the year. The average annual tem- perature is about 61° F. In November and December the ther- mometer may reach 70° or even 77° or 82°, and in June may fall to 45°. The total annual rainfall usually amounts to 23 to 25 inches, 20 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. nearly all of this falling between December and April, inclusive. During the winter months the atmosphere in the region of Sucre is remarkable for its dryness. HIGH PLATEAU. The climate of the high plateau, while prevailingly cold, is not uni- formly so. The difference between day and night temperatures is great, sometimes amounting to 50° F. or more. While it may be quite hot in the sunshine of midday, there is usually a rapid fall in temperature after sunset, The nights are nearly always cold, save when the clouding of the sky prevents the radiation of the heat accumulated during the day. However, during the winter season it is a dry cold, which does not cause the discomfort of the more pene- trating cold of the nights of the summer or rainy season, when the humidity is always high. On the table-land, temperatures never fall so low as during the winter in the northern part of the United States. As a result of peculiar local conditions, the climate varies considerably on the "altiplano" between places at the same general altitude— as, for example, between La Paz and Uyuni. According to the Jesuit Observatory of San Calixto in La Paz, the weather conditions prevailing in La Paz during 1919 were as shown in the following table: Temperature. Rainfall. Prevailing Months. Average. Highest. Lowest. Number of days. Quantity. direction of wind. °F. 52.0 53.2 48.2 51.6 49.6 45.0 4-5.0 45.5 50.2 50.2 51.3 50.4 °F. 71.6 72.9 68.5 72.9 72.1 67.3 68.9 69.4 73.6 71.6 73.8 70.2 °F. 39.0 38.5 40.6 37.9 33.4 28.4 31.6 28.6 32.0 35.6 39.2 39.2 16 15 22 13 1 4 6 3 6 12 20 24 Inches. 1.4 2.2 4.4 1.2 .1 . 1 .7 .1 .3 2.2 5.4 6.3 Southeast. Do. Do. West. Do. Do. Julv Do. Do. North) Southeast. Northeast. Southeast. in. :i 24.4 The temperatures given above were registered in the shade. The maximum temperature in the sun is usually from 37° to 42° F. higher than in the shade. In such places as Potosi the difference between the temperatures in the sun and in the shade is even greater. The daily range of temperature lor a given month is illustrated by the report "of the Jesuit Observatory for March, 1920. as follows: INTRODUCTION. 21 Mini- mum. Maximum. Average. Pays. Shade. Sun. ° F. 43.7 43.9 43.0 43.9 41.9 43.0 43.7 44.6 43.0 44.2 43.3 44.2 46.0 45.3 43.7 43.0 44.2 45.3 43.7 43.3 42.1 40.1 39.6 40.1 41.9 41.7 43.0 41.9 43.2 41.7 41.0 ° F. 62.6 66.7 63.3 59.0 64.6 59.9 60.6 60.4 63.1 67.6 64.8 68.9 71.4 67.1 63.1 65.5 61.7 68.7 60.8 57.0 54.5 54.9 50.0 54.5 56.1 55.9 61.0 60.8 63.5 66.6 62.8 ° F. 71.2 77.2 70.7 70.7 74.7 71.4 69.8 70.2 70.7 75.0 72.1 77.5 77.5 74.3 73.9 73.2 68.2 77.4 69.4 65.3 65.1 57.9 52.9 61.0 63.1 66.7 70.5 71.6 71.4 74.1 73.4 ° F. 48.7 52.0 50.0 48.0 50.4 48.6 48.7 49.6 48.7 52.0 50.4 54.9 54.3 51.4 49.8 51.4 50.0 51.3 48.2 47.1 46.0 43.9 44.1 44.2 46.0 46.6 47.3 48.6 49.3 51.8 49.6 The dry season in La Paz, as throughout Bolivia, coincides with the winter or time of shortest days and lowest temperatures. It begins in May and continues through August, though the weather usually begins to grow warmer in August. Though not unknown, rains are uncommon during the winter, and the days are generally sunny and comfortably warm, except when high winds blow, as they sometimes do in August and September. However, the nights are quite cold, and warm wraps are necessary after sunset even when one sits within doors, except in the few houses that are artificially heated. It seldom snows, and only on exceptional nights does water freeze in the lower parts of the city. Yet the " alto," a thousand feet above, may be covered with a night's fall of snow until well into the day. Flowers bloom in profusion in the gardens of La Paz through- out the winter. Lying as it does in a great basin of the plateau, La Paz is protected against the worst rigors of the climate of the "altiplano," especially against the high, piercing winds that sweep across the exposed "pampa" of the table-land. The spring begins in September and lasts into November or early December. The rains become increasingly frequent toward the beginning of the summer, or true rainy season, and are at their height in December. However, the rainy season is well under way by November, and in some years before the end of October. It slackens in April, and May is often a rainless month. The summer rains are often in the nature of tropical showers and are usually fol- lowed by a rapid clearing of the sky. Sometimes they are accom- panied by violent thunderstorms. In May the short Bolivian autumn is a,t its height, and for those who can endure the chilly nights it is 22 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. one of the most pleasant months of the year. For the foreigner May and June are probably the hest months of the year for visiting Bo- livia, and especially for traveling about the interior. Oruro, which lies at an altitude of over 12,000 feet, is situated on the edge of a barren plain, where it is exposed to the strong winds that often blow across the plateau, raising blinding dust storms in the city's streets. During the rainy season Oruro presents an espe- cially bleak and desolate 1 appearance, and at this time of the year its climate is particularly forbidding. However, during the sunny days that prevail from May to September the weather in Oruro is quite agreeable, though the nights are always very sharp. The average annual temperature in Oruro is about 50° F. Largely because of its greater altitude — more than 14,000 feet above sea level — Potosi suffers from a more rigorous climate than any of the larger cities of the "altiplano." Not only is the climate uncomfortably cold at nearly all seasons of the year, but a disagree- able raw r ness in the air often adds to the discomfort of those who live in the city. The mean annual temperature of Potosi is about 47° F. The thermometer seldom rises above 60° F. in the shade and may fall to 8° below zero. rjyuni, a small but important railway and trading center of southern Bolivia, has one of the coldest climates in all South America, though its altitude is only 11,972 feet. This is the result of its unprotected location on a wide plain and the presence, to the north- west of the town, of extensive salt marshes. These "salares" serve as a freezing mixture to lower the temperature of the winds that blow across them and over the town. In midwinter the tem- perature may fall far below zero. HEALTH CONDITIONS. With all its diversity of climates there are few positively unhealth- ful districts in Bolivia. The lack of modern water and sewage systems, and the insanitary habits of the majority of the population, largely account for the high mortality rates of some of the plateau cities. By nature the climate of this region is not unfavorable to human life. The air is pure and for most of the year is very dry. Those who take reasonable precautions against exposure to the abrupt changes of temperature have little to fear from the climate of the "altiplano." However, a severe cold may quickly develop into pneumonia, which, in view of the rarefied atmosphere of these altitudes, is highly dangerous. Foreigners who show the first symp- toms of pneumonia are usually hurried at once to Ariea or Arequipa. EFFECT OF HIGH ALTITUDE. The complaint known as "soroche" or mountain sickness, which affects some travelers on the way into Bolivia, is not dangerous, though very uncomfortable. It is caused by the sudden transition into a high altitude, where there is less oxygen in the atmosphere, ami is accompanied by nausea and severe headaches. Sufferers from it sometimes find relief by drinking a brew made from COCa leaves. However, most of those who visit Bolivia never have "soroche" at all, or, at most, have it in a \eiy mild form. Those who enter t lie country by the easy ascent from either Mollenijo or Antol'agast a aro INTRODUCTION. 23 less liable to be attacked by "soroche" than are those who make the rapid climb from the coast at Arica. Though persons with weak hearts are generally warned against the high altitudes of the Andean plateau, the danger from this source has probably been greatly exaggerated. However, the heart beat increases abnormally in these regions, and, for some time after one arrives, even such physical effort as walking is attended with fatigue and shortness of breath. Those who suffer from heart trouble are advised to abstain from excessive exertion, but persons with a normal heart are able to play tennis and dance and indulge in similar forms of exercise after a short stay in the country. The effect of the high altitude on the nerves of all but the most phlegmatic is very marked. Nerves tend to be more "high strung" and may finally suffer from a continuous state of tension. This is especially true in the large mining camps. These are usually situated above the general level of the plateau and contain few means of diversion, so that those who live there sometimes find it advisable to make a trip to the coast for a period of relaxation. On the other hand, those who have resided for a considerable time on the plateau often experience a feeling of drowsiness or even general derangement for a time after returning to sea level until their system is readjusted to the heavier atmosphere of the lower altitude. MEDICAL AND SURGICAL SERVICE AVADLABLE. Persons visiting Bolivia should be inoculated against both smallpox and typhoid. There are competent foreign-trained physicians in La Paz, and an American hospital is now being installed. Americans in need of surgical attention sometimes go to the great mining camp of Cnuquicamata in Chile, where there are a skilled American surgeon and a modern hospital with trained American nurses. The mining companies operating in Bolivia maintain their own medical staffs and hospitals. Well-equipped drug stores are to be found in all Bolivian cities. The National Government maintains a National Institute of Bacteriology, which has lately done excellent work in inoculating the population against smallpox and typhoid. Medical attention is supplied gratis to the poor in the larger cities by the "Asistencia Publica." MORTALITY STATISTICS. The annual death rate in La Paz is higher than in most South American capitals. In 1911, 528 persons died of typhoid fever in La Paz, and the annual deaths from this source for the four follow- ing years were from 30 to 52. Forty-eight died from the same cause in 1919. Deaths from smallpox in La Paz for the five years 191 1-1 915 were as follows: 1911,120; 1912,174; 1913,96; 1914, 274; 1915, 159. Smallpox caused 84 deaths in 1919. There were 151 deaths from influenza in La Paz in 1919, 3S from pulmonary tuber- culosis, 30 from other forms of tuberculosis, and 60 from typhus. The health conditions of the city of Coehabamba have been notori- ously bad, the annual death rate amounting to 50 and even 60 per 1,000. The largest number of deaths result from various in- fantile diseases (such as intestinal infection, due to infected milk) and from typhoid fever, smallpox, and pneumonia. Deaths from 24 BOLIVIA: A COMMERCIAL A X D OSTDUSTBIAL HANDBOOK. typhoid in 190S numbered L37, and the usual death rate from this disease is from 40 to 80. In Cochabamba 7N4 died from smallpox in 190G and 275 in 1910, but there were only 3 deaths from the same cause in L908 and 1913, and only 1 in 1909. A comprehensive program of sanitary works for the most important cities of Bolivia is now under way. Tnis work is in charge of a large American engineering company, which has contracts under con- sideration, or actually signed, covering La Paz, Cochabamba, Oruro, Potosi, and Sucre. MALARIAL FEVERS. Malarial fevers are prevalent in many of the Andean valleys and in widely scattered districts throughout eastern Bolivia. Known in different localities as "paludismo, ' or swamp fever, as "terciana," or tertian fever, as "chuchu," or under the more familiar name of malaria, it is everywhere the same disease, with the same cause and the same lingering results. In ill-drained regions where mosquitoes flourish, malaria is nearly always endemic. It is common in some of the mountain valleys below La Paz and is found at its worst in the fine valley of Mizque between Cochabamba and Sucre. This fertile district formerly enjoyed considerable prosperity and impor- tance, but its population has been decimated by the fever or has emigrated to more healthful regions, and its industrial importance has greatly declined. However, drainage works that could be easily carried out would extirpate the mosquito and his work and restore the valley to its former condition. In parts of the Territory of Colonias, in huge areas of the Beni, in eastern Santa Cruz (especially in some of the Chiquitos valleys), and in the Chaco, malarial fevers are all too common. Certain centers, such as Villa Bella in the Beni, San Jose in Chiquitos, Puerto Suarez on the eastern border, and Puerto Montes on the middle Pilcomayo, are particularly subject to them. However, the draining off of standing water or the clearing of swampy woods would go far to free most such Localities of this plague of fever. The writer recalls an experience in the Mizque Valley, where he asked his host, who bore all the marks of long-standing "terciana," whether there were much malaria about. "It is everywhere" was the answer — and to the rear of his house were two open pools of stagnant water from which swarms of mosquitoes were rising. AMAZON REGION— DEPARTMENT OF SANTA CRLJZ. Though the Amazon region has a reputation for insalubrity, much of this ill fame is due to the disregard of the most fundamental rules of tropical hygiene by the majority of those who live in thai area. Those who observe these rules can live there for years without serious detrimenl to their health, though a certain amount of anaemia is almost inevitable. The most common complaint here is "paludismo," or swamp fever, which caused such ravages among the first builders of the Madeira-Mamore Railway. However, the use of quinine and mosquito nets and care in the drinking of water are usually sufficient safeguards against malarial attacks. There is also considerable beri-beri and dysentery in some districts, and hook- worm is prevalent in parts. Tuberculosis is common among the INTRODUCTION. 25 rubber workers, and in 1914 there was a plague of smallpox in the Beni district. Malnutrition, exposure, intemperate living, and failure to use the necessary precautions against mosquitoes are the principal causes of sickness in the Amazonian lowlands. The drainage of swamps in the vicinity of the settlements would do much to improve health conditions, as the large bodies of stagnant water, which remain after the rainy season and the return of the rivers to their beds, are fruitful sources of malarial fevers. Some towns are much more favorably situated in this regard than others, Villa Bella, for example, being much more unhealthful than Riberalta, which lies on high ground above the flood level of the Beni. The Madeira-Mamore Railway maintains a well-equipped hospital, manned by American doctors, at Candelaria, near Porto Velho. The climate in most parts of the Department of Santa Cruz is notably healthful, though the habits of most of the natives are extremely insanitary. Malaria has been prevalent in certain localities and there have been occasional outbreaks of dysentery and smallpox, but, in general, health conditions compare very favorably with those of any part of South America. Some districts, as about Santiago de Chiquitos in the Territory of Oriente, have an almost ideal climate. POPULATION AND LIVING CONDITIONS. CENSUS STATISTICS. According to the last census, taken in 1900, the population of Bolivia was 1,781,666. Previous censuses gave the following results: 1831, 1,088,768; 1835, 1,060,777; 1845, 1,378,896; 1854, 2,326,126; 1882, 1,172,156. The course of fluctuations in the population as illustrated by these figures can only be explained by their utter lack of accuracy. A truly scientific census has never been taken. More- over, the wide dispersion of much of the Indian population and the notorious hostility of the Indians to census takers make the com- puting of their numbers extremely difficult. An attempt is to be made at a more accurate census on modern lines in 1920-21, but the published results can scarcely be expected before 1923. In the opinion of the writer, the present population of the Republic is pro- bably close to 2,000,000. The vast majority t)f the population lives on the plateau, where the mining industry is concentrated. The population by Depart- ments and Provinces in 1900 was as follows (Provinces are indented under Departments) : La Paz » 397,643 City and suburbs 54, 7 13 Cercado 20, 610 Pacajes 72, 120 Munecas 38, 987 Sur Yungas 15, 021 Nor Yungas 12, 211 Sicasica 26, 130 Caupolican 14, ] 08 Larecaja 21, 319 Loaiza 15, 809 Inquisivi 21, 050 Omasuyos 85, 559 Oruro 86, 081 Cercado 37,595 Paria 29, 675 Carangas 18, 811 Cochabamba 326, 153 Cercado 36, 222 . Tapacari 50, 924 Punata 48, 880 Tarata 48, 085 Arque 34,236 Ayopava 29, 781 Chapare 24, 875 Totora 22. 829 1 Additions, in revised figures, brought the population of the Department of La Paz up to 423,800. tain additions were also made for Oruro. 26 BOLIVIA: A COMMERCIAL A X 1 1 [NDUSTBIAL HANDBOOK. (. '( >cbabamba— Continued . Mizque '■">■ 785 Campero 1 1. 536 Potoai 323,615 Frias 49,998 Charcaa 54, 124 Linares 51, 161 Chayanta 54,016 NorChichaa 40,512 SurCbichas 37,772 Porco 26,260 Nor Lipez 6, 565 SurLipez 2,607 Chuquisara 196, !3 1 Sucre 20,907 Yamparaez 50, 929 Tomina 52, 685 Cinti 41,-147 Azero 30,4(10 San f a < ' m z 161, 082 Cercado 39,285 Vallegrande 46,252 Cordillera 33,210 Velasco 24,550 Chiquitoa 7. 765 Tarija t;:. ss? Cercado 17,085 Mendez 13. 799 Avilez 10,275 ( .run Chaco 9, 215 Salinas 8,836 Arce ^. f.77 i:i Beni 25.119 Mojos 9,047 Xacuma 6, 760 [tenez 5, 750 Vaca Diez 3,562 Colonias I T< srritory I C. 883 Tarija 160, 709 El Beni 50,265 Colonias 49,761 Chaco 13.272 The population was officially estimated in 1918 at the following figures: La Paz 734,021 Oruro 137,33(5 Cochabamba 512, 590 Potosi 515, 458 ( ihuquisaca 319, 325 SantaCruz 327,382 j Tota 1 2,820,119 The census of 1900 gave the white population of the Republic as 231,088, or 14.64 per cent of the total population. However, some who have a certain admixture of Indian blood, but socially belong to the upper classes, declare themselves as whites in the census returns. The percentage of whites varies greatly between different parts of the country, being highest in Santa Cruz (28.37 per cent) and lowest in Potosi (6.66 per cent). WHITE ELEMENT IN POPULATION. The character of the white element in the population is largely the result of its Spanish heritage, modified by long residence in the peculiar environment of the Bolivian Plateau. Railways and foreign travel and better education have done much to break down the provincialism that was so long common to Bolivians and that was only the natural consequence of the country's inland position. This provincialism was also partly due to the isolation of the different centers of population within the Republic. The long distances and difficult communications between the important cities of the country not only developed strong particularistic sentiments that were an obstacle to political unity and a factor for unrest, but positive differ- ences between the temperament of the population oi different sec- tions. Thus the typical PacefiO developed certain characteristics that are quite distinguishable from some of the qualities of the Orureno, the Cochabambino, the Potosino, the Sucrense, or the Cru- ceno. Some of these are more enterprising or practical or refined or excitable than others. However, the upper-class Bolivians of all parts of the Republic have the best traits of the Spanish character m a high degree. They are nearly always courteous and considerate 1 , and are sincerely hospitable and friendly to natives and foreigners alike. INTRODUCTION. 27 "CHOLOS," OF MIXED WHITE AND INDIAN BLOOD. The mestizos or mixed breeds, locally known as "cholos," are an ethnic factor of increasing importance in Bolivia. Their proportion also differs greatly in different parts of the country, ranging from 8.13 per cent of the population in the Department of La Paz to 51.54 per cent in Cochabamba, where the amalgamation of the tw 7 o races has proceeded furthest. According to the census of 1900 the num- ber of mestizos was 484,611, or 29.45 per cent of the total popula- tion. The "cholo" is the product of the mixture of the Spaniard and the Indian, and so shares to a certain extent the qualities of both, though he has some characteristics that are common to hybrid races in general. He generally lacks initiative and persistence, and only too often a strict regard for responsibility. He is prone to be verbose and is often eloquent. He is rather fond of display and is inclined to be satisfied w T ith superficial attainments. However, he is vastly superior in intelligence and adaptability to the Indian, and has, moreover, assumed much of the agreeable manner of the white. He also has the sense of humor that is so noticeably lacking in the Indian. The "cholo" occupies a very important place in both the indus- trial and the political life of the nation. He furnishes nearly all the skilled labor and some of the unskilled. The major-domos, or superintendents, of the large landed estates are usually "cholos," and many "cholos" are themselves independent proprietors. Nearly all the small shopkeepers are " cholos" or " cholas." For the women of this class, who are uncommonly shrewd and independent, arc much given to the management of small businesses. Most of the stalls in the public markets are kept by them, and most of the purveyors of liquors are "cholas." The class of household servants is also largely recruited from them. There are different castes or gradations of the general class of "cholas," depending on the degree of their prosperity, the social standing of their occupation, or the propor- tion of white blood in their veins. The high and the low class ' ' cholas are generally distinguishable by their dress, the former wearing the high, polished white hat, bright-colored "manta" or shawl (often of silk) , and high buttoned boots that are so familiar a sight in La Paz . The garb of the low-class "chola" shades off, like her complexion, until it approximates that of her Indian cousin. All classes of "cholas" wear several heavy skirts, made of bright-colored baize or "bayeta" and superimposed one over the other, often to a very considerable thickness. In politics the great mass of voters come from the class of " cholos," and most of the subordinate posts in the Government are filled by men of this class. Some of them have risen to high places in public life and have occupied positions in the national ministries. The census of 1900 gave the Indian population of Bolivia as 792,850, or 48.42 per cent of the entire population. The proportion was highest in the Department of La Paz (75.61 per cent) and lowest in that of Cochabamba (23.04 per cent). The great majority of the Indians of Bolivia belong to two races — the Ayrnara and the Quechua, both of which inhabit the "altiplano." 28 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The habitat of the Aymaras is the plateau region of the Department of La Paz and the northern part of the Department of Oruro. They are a people of rugged appearance, and many are of robust build, being above the average of the Indian races in stature. The hard struggle for existence eliminates the weaker individuals early in life, "and those who survive the first trying years are sturdy and well fitted for coping with their rigorous environment. Their language, which may be heard in the streets of La Paz, is harsh ana guttural and is" still in a rudimentary state of development. The Aymara is disposed to be sullen and taciturn and has an air of habitual melancholy. Though normally servile in his attitude toward his white superiors, he is given to vindictive revolts when he feels that his communal or traditional rights have been too long violated. lie is then cruel and relentless. Local risings of the "indiada" occur every few years and are put down by the Govern- ment forces. The last of these troubles occurred in July, 1920. in the neighborhood of Lake Titicaca. Because of his fighting qualities, the Aymara (with "cholos" of Aymara admixture) forms the backbone of the Bolivian Army. He is given to the drinking of liquor; only when he is under its influence does he laugh or become Loquacious and communicative. His intelligence, which is naturally dwarfed by his environment and the monotony of his surroundings, is further impaired by his constant use of coca. Though the chew- ing of the strongly narcotic coca leaves endows him with inordinate powers of enduring fatigue and hunger, it is undoubtedly a factor for the physical degeneration of the race. The normal environment in which the Aymara lives, and which accounts for his peculiar temperament, is highly unfavorable to human lib', when unaided by the resources of modern civilization, which are beyond the reach of the Indian. The Aymara's existence has been a continuous struggle against the environment of the bleak and inhospitable plateau- against cold and hunger and the lack of oxygen. The hard conditions of life have left little place in him for affection or any other of the finer feelings. One of his strongesl sentiments is his ineradicable attachment to the "ayllu," the com- munity in which he was born and in which his ancestors lived. So strong is this attachment to his traditional home that he refuses to migrate to the warmer \ alleys beyond the Andes where the conditions of life are much more favorable. His music is in accord with the dreary circumstances of his life and consists of the melancholy and monotonous minor note- of the "quina" or reed flute. His few songs .iic mournful chants that are seldom heard. The country-dwelling Aymara lives in a hut made of mud or stones, where he sleeps on a sheep pelt on the bare floor or on the floor itself. His clothing consists of a peaked woolen cap with long "ear flaps" that hang down over the side of his face; a homespun woolen poncho, generally of great age; rough trousers split part way up the back' of the' leg; 'and crude sandals, which he wears over the rocky roads of the mountain country or the sharp cobblestones ol I. a Paz, but which are generally 'discarded. His sparse diet LS made up of potatoes, usually in the desiccated form known as"chuno, a stew made of vegetables and barley, or "quinua,' 1 and parched Special Agents Series No. 208. > ....--' • w FIG. 4.— ALPACAS IN THE CARANGAS DISTRICT. FIG. 5.— LLAMA TRAIN NEAR LA PAZ. INTRODUCTION. 29 corn. He eats little meat or bread, though he may kill a sheep to celebrate a fiesta. The Aymara is the agricultural laborer of the " altiplano, though seldom a proprietor, save where the ancient communal tenure has been permitted to survive in some distant localities. He also does the rough work of the city and can always be seen carrying burdens about the streets of La Paz. He cares for the herds and flocks of the plateau and drives the pack trains of mules, burros, or llamas from place to place. He is often the owner of small flocks of sheep or droves of pack animals, whose life he shares in a strange intimacy. Most of the workers in the mines are also drawn from his class. He has no place in the political life of the nation, and sharp barriers of caste separate him from those who own and rule the country. Even the majority of the " cholos," who have sprung from a mixture of his race with the Spaniard, look down on him and refuse to speak his language. QUECHUAS. The much more numerous Quechua race is spread over a wide area from Ecuador south into Argentina and Chile, as attested by such names as Cajabamba in the former country, Catamarca in Argentina, and Chuquicamata in Chile. In Bolivia the Quechuas constitute the abroginal race in part of the Department of Oruro and in Cochabamba, Chuquisaca, and Potosi. Their language forms one of the great lingual stocks of South America and is much more highly- developed than the rude speech of the Aymaras. The Quechua is smaller in stature than the Aymara, less robust and of finer features, some of the men of the Sucre district being of quite handsome appearance. However, the Aymara "cholos," particularly the "cholas" of La Paz, are generally superior, as regards stamina and appearance, to the majority of the Quechua mixed breeds. There is a vast difference in the character of the two races. The Aymara, at the time of the Spanish conquest, had lived under the Incaic dominion only a comparatively short time and still lived in a semibarbarous state. The Quechua, on the other hand, had long been subjected to the peculiar civilizing regime of the Incas, which had given him certain .fundamental elements of culture and a settled order of society, even though it had deprived him of all personal initiative. The Incaic institutions have disappeared, save in the survival of a few customs, but the Quechua still preserves in his temper much of the heritage of pre-Spanish days. He is eminently docile and passive, whereas the submissiveness of the Aymara can never be taken for granted. He also is taciturn and uncommunica- tive, but never defiantly or sullenly so. His temper is in general much gentler and kindlier than that of the Aymara. However, he has the same propensity for drink, which he shares with the other Indian races of South America. Except in the high mountain dis- tricts of Oruro and Potosi, he prefers the milder "chicha" to the strong liquors that serve the Aymara, This is particularly true in the valleys of Cochabamba and Chuquisaca, where large areas of corn are devoted to the making of " chicha." In the city of Cocha- bamba there are 1,400 "chicherias," or shops where "chicha" is dispensed. This is at the rate of about 1 to 25 persons in the popula- tion. 30 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The Quechua's manner of life varies considerably in different districts. In the valleys of Cochabamba and Sucre, which arc the favorite habitats of the race, it is much superior to the conditions in the more unfavorable environment of the Oruro and Potosi high- lands. In the former he is an agriculturist, working in a good soil and a temperate climate. There he has enough to eat of corn and vegetables and often of meat, and the climate makes few demands in the way of clothing and housing. In Potosi and Oruro he is a worker in the mines, or farms the barren and rocky soil of the moun- tains. Here his conditions of life are much like those of the Aymara of the La Paz " altiplano." Like the A vmara he lives apart from the political life of the Republic but is less esteemed as a soldier. Yet with the Aymara he forms the very basis of the whole economic life of the country. MINOR TRIBES. Besides the two principal Indian peoples, there are a large number of minor tribes. These vary in degree of civilization from the savages of the Monte Grande in the Santa Cruz country and the fierce Siriones of the upper Mamore forests to the domesticated and peaceful natives of the Yungas, the Chiriguanos on the western side of the Chaco, and some isolated remnants of tribes in the plateau Provinces of Carangas and Pacajes. Most of these tribes are scattered over the eastern plains from the lower Beni around by the Mamore and Itenez Basins and the Chiquitos highlands into the Chaco and the lower regions of Chuquisaca and Tarija. Some, like the Guarayos of Nuflo de Chavez, the Yuracares of the Mamore country^ and the Indians along the Madidi, are under the influence of Franciscan missionaries. Others roam the forests or plains in a state of unmiti- gated barbarism. Still others such as the Chiquitanos are civilized Indians, who have mingled their blood to a large extent with that oi the whites. The Chiriguanos are a peaceful race of Guarani stock who inhabit the country between Santa Cruz and the Argentine border. NEGROES. The Negro population of Bolivia is small and of i n s ign i fi cant importance in the national life. It amounted to 3,945 persons in j ooo and is largely concentrated in the warm valleys of the "1 ungas of La Paz and Tn the Beni. The Department with the smallest pro- portion of Negroes is Potosi, with but 0.03 percent of its population in 1900. The census of 1000 gave L21,116 persons, or 7.31 per cent of the population of the Republic, as "unclassified." FOREIGN POPULATION. The census of 1000 gave the foreign population of the Republic by nationalities as follows: Nail" IVnr. I Lnians. Chilean Brazil! Spaniards — Number. 17-J 120 Percent 34.33 18.53 s. 89 7. 88 ,. |6 5.69 Nationality. Qermans. . French AuMimns British Americans Number. 296 279 177 Ml i.l Percent- :;. 98 3.75 •J. lis i . 99 .82 INTRODUCTION. 31 The most numerous foreign element in Bolivia consists of persons born in the neighboring Republics. These include the large Peruvian colony in La Paz (somewhat diminished after the riots of March, 1920)', the Chileans employed in the mines and in business, the Argentinians in Tarija, and the Brazilians in the lower Beni and Colonias. Most of the British in the country are employed by the Bolivia Railway, are connected with British commercial houses, or are mining engineers. The Germans are employees of trading houses or of the German bank. There are also considerable Spanish and Italian colonies in the cities, most of whose members are engaged as skilled laborers or in small businesses, though some important business houses in La Paz are owned by Spaniards. There is now a fairly large colony of Jugoslavs in Oruro and Potosi engaged in the grocery and general merchandise business. There are some settle- ments of Japanese in the Beni and a few Japanese barbers and bazaar keepers scattered about the plateau. The American population in Bolivia now numbers about 350. The largest single aggregation consists of the employees of a large mining company. Others are engaged in other mining enterprises or in mercantile business. Some are employed as teachers in mission schools, and about a dozen are located as colonists in eastern Bolivia. GOVERNMENT. The Government of Bolivia is based on a constitution which was adopted in 1880. Previously the form of government had been altered several times by the* dictators who so often governed the country. As in Chile and Peru, the Government is a centralized Republic, as opposed to the federalism of Argentina and Brazil. Voting is limited to male citizens over 21 years of age who can read and write and who possess an independent income of at least 200 bolivianos per year. Domestic servants are barred from voting. The scheme of government is somewhat as illustrated by the following outline: NATIONAL. Executive: President. Vice Presidents (two). Ministers — Government and Justice. Foreign Affairs and Worship. Finance. Industry and Public Works. Public instruction and Agriculture. War and Colonization. Legislative : Congress — Senate. Chamber of Deputies. Judicial: Supreme Court. Attorney General. LOCAL. Departments: Executive- — Prefect. Judicial- — District court. District attorney. Judges of first instance. 32 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Provinces: Executive— Subprefect. .1 udicial— Judges of lirst instance. Cant i mis: Executive- " ( '< nregidor.' ' Cities: Executive — President of municipal council. ! legislative — Municipal council. .) udicial- Parish judges or "alcaldes." Indian communities: Executive — "Cacique," etc. EXECUTIVE BRANCH. As is usual with governments of this class, the presidential office overshadows the other parts of the national administration, though much depends on the force of personality of the President. The President is elected by direct popular vote for a term of years, but may not be reelected until after a lapse of four years, as happened in the case of President Montes. The powers granted to the Chief Executive by the Bolivian constitution are substantially those held by the President of the United States, but the traditions of personal authority are much stronger in the former country. The Bolivian constitution provides for the extraordinary precaution of two vice presidents, one of whom presides over the national Senate. The cabinet system is modeled on that in force in most European countries, and is based on the principle of ministerial responsibility. The cabinet thus represents the party in power at the tune and is selected from the majority in the Congress. There are six cabinet ministers, as follows: Foreign Affairs and Worship. Finance, Gov- ernment and Justice, Public Works and Industry, Public Instruction and Agriculture, and War and Colonization. When such diverse interests are represented within a single portfolio, as in some of these cases, it is difficult to coordinate properly the work of the departments of government. The Ministry of Government and Justice, which might be called a Ministry of the Interior, is of great importance in the scheme of government. This office has control over the national elections, the policing of the country, the post- office and telegraph systems, Questions of sanitation and hygiene, and, through- the prefects and subprefects, it controls the Local government of the Departments and Provinces. On its judicial side it has jurisdiction over questions pertaining to the courts, the practice of law, and the national penal system. The Ministry oi Public Works (Fomento) and Industry has control over railways, river and lake navigation, roads and bridges, public buildings, public utilities in the cities (with cooperation of the muTru-ipalit ios> , the promotion and regulation of commerce and industries, mining, the government monopolies, and patents and trade-marks. LEGISLATIVE AND JUDICIAL AUTHORITY. The national Legislative body consists of a Congress composed of a Senate and a Chamber <>f Deputies. The annual session of Congress begins on August 6 and Lasts for no days, though the President is empowered to call a special session to deal with any extraordinary and invent matters. The senators arc elected by popular vote for a INTRODUCTION. 33 term of six years. There are two from each Department, so that the entire membership of the Senate numbers 16. The deputies are elected for four years. The total membership of the lower house amounts to 70. The national judiciary consists of a Supreme Court of seven mem- bers, who are elected by the Chamber of Deputies from lists submitted by the Senate. The judges hold office for a period of 10 years. The jurisdiction of the court is limited to the adjudication of cases ap- pealed to it from the district or departmental courts. The Supreme Court sits at Sucre, being the only branch of the National (jovernment which that city has retained. Though Sucre is still legally the capital of the Republic, the actual seat of govern- ment has been located at La Paz since 1900. La Paz has advan- tages of greater population, commercial importance, and accessibility, which justify its position as the center of government, in spite of Sucre's traditional claims and the amenities of its climate and its cultured aristocracy. ADMINISTRATIVE DIVISIONS. Bolivia consists of eight Departments, which are purely adminis- trative divisions and not self-governing states, as in the federal republics of South America. Little autonomy is permitted in de- partmental administration, but the government of the Departments is largely directed from the Ministry of Gobierno, or Government, in La Paz, to which the prefects are responsible. Each Department, is administered by a prefect, who is appointed by the President for four years. The prefect is not only the head of the civil government of the Department, with verj 7 " large authority, but, as commandant- general, is in control of the military forces of the district. The Departments are divided into Provinces, of which there are 66 in the entire Republic. The present list of Provinces is as follows: Department of La Paz (14)- — Murillo, Omasuyos. Los Andes, Larecaja. Camaeho, Munccas, Caupolican. Nor Yungas, Sur Yungas, Inquisrvi, Loayza, Sicasica, Pacajes, Ingavi. Department of Cochabamba (14)- — Cercado, Ayopaya. Chapare. Punata, Arani, Tarata, Cliza, Totora, Mizque, Campero, Capinota, Arque, Tapacari, Quillacollo. Department of Oruro (4)- — Cercado, Carangas, Poopo. Abaroa. Department of (liuquisaca (7). — Oropesa. Yamparaez, Azero, Toruina, Zudanez, Azurduy, Cinti. Department of Potosi (10). — Cercado (Frias\ Charcas, Bustillo, Ckayanta, Nor Lipez, Sur Lipez, Porco, Linares, Nor Chichas, Sur Chiehas. Department of Tarija (6). — Cercado, Mendez, Avilez, Arce, O'Connor, Gran Chaeo. Department of Santa Cruz (7). — Cercado, Sara, Nuflo de Chavez, Velasco, Chiquitos, Cordillera, Yallegrande. Department of El Beni (4)- — Cercado (Mojos), Yacuma, Itenez, Vaca Diez. The Provinces named "Cercado" comprise the districts about the capitals of the Departments. The Provinces are administered by subprefects, who are appointed by the President for four years, but who are under the direct control of the prefect. The Provinces are in turn subdivided into cantons. An official known by the old Spanish title of "corregidor" is placed over each canton. He is named by the prefect and holds office for one year. Still smaller districts are administered by an official known as an " alcalde de campana." 444G2°— 21 3 34 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The government of towns and cities is regulated by the Organic Law of Municipalities, which was issued November 21, 1887, and by subsequent amendments to the basic law. According to this law each city has a municipal council, whose president holds a position Largely analogous to (hat of mayor in the United States. The provin- cial capitals are administered by "juntas municipals '' of 5 members. The municipal governments have authority over purely local affairs, such as markets, paving, police, lighting, and primary instruction, but Bolivian cities do not enjoy the same degree of self-government that is exercised in the United States. The Bolivian Government has left much of the administration of Indian communities to local Indian officials, who are, however, more or less responsible to the "corregidor" or subprefect of the district. These native authorities, whose position is symbolized by an orna- mental silver cane, are known by the Indian names '''cacique, " "curaca," "malleu," or "ilicata," or by the old Spanish titles of "alcalde" and "regidor." These officials often exert considerable authority over the community which they head. POLITICAL PARTIES. There are two principal parties in Bolivian politics, the Liberal and the Republican. A third party, the Radical, is of little impor- tance. The Liberal party was in power from 1900, when Gen. Pando began his first term as President, until July, 1920. During much of this period, great material progress was made. Railways were built, the mining industry attained a degree of development never reached before, and the country's credit in the international money market was firmly established and maintained through the trying times of the early years of the war. Much of this progress was due to the leadership of Gen. Ismael Montes, who was twice President of the Republic. On the early morning of July 12, 1920, the Liberal Government of President Jose Gutierrez Guerra was overthrown by a military coup d'etat organized in the interests of the Republican party. The revolution was an almost bloodless one. Normal conditions were quickly restored, and a Committee of Government, consisting of three prominent Republican leaders, took charge of the organization of the new regime. The new Government quickly confirmed all existing concessions, contracts, and other arrangements made by the former Liberal administration with foreigners and foreign govern- ments. In the election held on January 29, 1921, Bautista Saavedra was elected President of the Republic. Basically (here is not much difference between the platforms of I lie two principal parties. The quality of men in high official positions is \erv noticeable. For real public spirit and intelligence, the composition of the national Congress will compare favorably with that m the more advanced Republics of South America, although, as in most Latin American count ries, certain of the members fail to understand adequately the industrial needs of the nation. However, the unsatisfactory quality of local officials persists. "Corregidors," and frequently sulbprefects, have not a sufficiently INTRODUCTION. 35 high sense of the responsibility of their positions. These officials are usually too far from the corrective influence of La Paz or the re- straint that the prefect might exercise over them. DIPLOMATIC RELATIONS. Bolivia maintains ministers in the United States, Great Britain, France, Argentina, Chile, Peru, Brazil, Paraguay and Uruguay, Japan, and one for Colombia, Venezuela, and Ecuador. In the United States there are consuls general in New York and San Fran- cisco, and officers of consular rank in Philadelphia, Kansas City, Mo., New Orleans, Los Angeles, Seattle, and Boston. There are vice consuls in Norfolk, Mobile, Newport News, and Cincinnati. The United States is represented in Bolivia by a minister. There are also an American consul and vice consul in La Paz. The La Paz consulate is located in the Edificio Taborga on Calle Socabaya. NATIONAL ARMY. The Bolivian Army is based on the theory of universal military service, which, however, is modified by the practice of conscription by lot, whereby those called up each year for service are required to draw lots. All males between the ages of 19 and 50 are declared subject to military service. Exemptions are freely allowed, and, in reality, the principle of universal service has never been rigorously carried out. Moreover, the resources of the Government are not commensurate with the cost of maintaining a large standing army. A law of December 15, 1915, provided for a permanent force of 3,577 men. The ordinary peace strength of the army amounts to about 3,500 men, with a probable reserve of about 15,000. The army consists of four regiments of infantry, one regiment of cavalry of 500 men, one regiment of field artillery, one regiment of mountain artil- lery, and one machine-gun regiment of 150 men. The army is German-trained, and the uniform of the officers is very German in appearance. The rifle of the infantry is the Mauser. Most of the artillery is of Schneider-Creusot type, and the machine guns are of Krupp make. The principal garrisons are stationed at Viacha, La Paz, Guaqui, Oruro, and Sucre. There are also small garrisons at Cobija (Colonias) , Riberalta (Beni), Puerto Suarez (Oriente), Robore (Chiquitos), and scattered in detachments among small "fortines" or posts along the lower Pilcomayo River. The chief authority in military matters is the Minister of War. Operations are directed by an Estado Mayor, or General Staff. The country is divided into military zones, each under a commandant. The budget of 1920 provided for 11,316,494 bolivianos for the military establishment out of a total budget of 53,629,120 'bolivianos. EDUCATION AND INTELLECTUAL LIFE. In a country with the large Indian and mixed-breed population of Bolivia, the problem of popular education is of primary importance. For a long time the idea prevailed that it was unnecessary and inad- visable to educate the masses, and only a very small percentage of the population was able to read and write. However, this condition coincided with an era of great industrial inefficiency and political 36 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. turbulence, and for two decades the nation's leaders have seen the necessity of giving the mass of the people at least an elementary instruction that would better fit them as workers and citizens. A few progressive Ministers of Public Instruction have done much to modernize the public-school system, and, though they have had to struggle against inertia, conservatism, and lack of funds, their work has had very gratifying results in the spread of literacy among the Eeople. Very much remains to be done, but the people themselves ave awakened to the value of education, and each town now has its public school, though this is often inadequately housed and equipped. According to the census of 1900, the percentage of illiteracy throughout the Republic was 84. The proportion of literacy was highest in Santa Cruz (59 per cent) and lowest in Potosi (8 per cent). The proportion of illiteracy has probably fallen by now to 70 per cent. PUBLIC-SCHOOL SYSTEM. The public-school system in Bolivia is under the direction of the Ministry of Public Instruction. The national budget for 1920 pro- vided for the expenditure of 4,644,686 bolivianos for public educa- tion. The increase in the budget for public instruction since 1900 is illustrated by the following figures: Bolivianos. 1900 382,724 1901 392,784 1902 206,495 1903 128,320 1904 109,800 1905 884, 81(5 1906 1, 014, 392 1907 1, 459, 305 1908 1,833,904 1909 1.939 804 The small appropriations for 1902-1904 were due to the large expenses incurred by the Government in the Acre contest against the Brazilians. The decline in 1916 resulted from the falling off of the national revenues caused by the World War. Salaries m the public school system range from 600 bolivianos a year for teachers of some of the village schools to 12,000 bolivianos for the Minister of Public Instruction. Examples of other salaries are: Teachers in high schools. L,200to 4,200 bolivianos; average, 2,400 to 3,000 boli- \ ianos. Principals of high schools, 3,600 bolivianos i Potosi and Tarija) to 8,400 bolivianos (Siktc I. Directors of normal schools. 7,200 bolivianos. Principals of primary and intermediate schools: < Lties, 3,600 to 1,800 boli\ ianos. Towns. I. :.'()() to '-MOti bolivianos. Teachers in primary and intermediate schools: Cities, L.200 to 2,000 bolivianos. Towns, tide to 1,200 bolivianos. Schools arc classified according as they are maintained l>v the National Government or by the municipalities. The former arc known as fiscal schools, in distinction from the municipal schools. The number of lisc-il schools in the Republic during each year from 1900 to 1918 was as follows: 1900,84; l'.toi. 109; L902, 123: 1903,64; Bolivianos. 1910 1,497,643 1!)11 1,755,876 1912 1, 766. 009 1913 2. 147,950 1911 2,562, ins 1915 2,673,326 1916 2,001,831 1917 2.638,662 1918 3,020,672 INTRODUCTION. 37 1904, 63; 1905, 95; 1906, 170; 1907, 193; 1908, 195; 1909, 222; 1910, 187; 1911, 262; 1912, 265; 1913, 474; 1914, 612; 1915, 540; 1916, 430; 1917, 477; 1918, 450. A large number of schools were closed after 1914 because of the shortage of funds that resulted from the decline of import and export duties following the beginning of the war in Europe. The enrollment in all classes of schools, both public and private, in 1918 was as follows: Districts. Primary. Second- ary. Higher. Normal. Special. Total. 14.481 10,260 9,528 7,538 4,821 2,274 2, 677 2,204 529 792 334 180 377 93 179 75 119 232 85 54 170 32 33 44 130 182 960 15,355 12, 374 9,947 30 • 127 7,802 155 31 40 5,650 2,430 2,929 2,279 Total 53,783 2, 559 725 331 1,368 58, 766 PRIMARY INSTRUCTION. The Bolivian constitution declares that "primary instruction is free and obligatory." Though only a distant approximation has been made to this ideal, an effort is being made to give the mass of the " cholo " population, as well as the children of white families, the bene- fits of primary schooling, especially a knowledge of reading and writ- ing and the elements of arithmetic. A few "escuelas de indigenas," or Indian schools, have also been established. The registration in primary and intermediate schools throughout Bolivia in 1918 was as follows: Capitals of Departments. Provinces. Districts. Fiscal. Munici- pal. Private. Fiscal. Munici- pal and private. Total. 772 1,877 1,010 475 834 744 477 496 3,051 1,347 652 1,161 426 781 413 35 767 1,039 277 620 937 330 206 2,138 5,632 3,750 3,085 1,312 821 1,234 1,001 8,253 365 3,S39 1,377 1,312 68 950 669 14,981 10, 260 9, 528 6,718 4,821 2,744 3,280 2,201 Total 6, 6S5 7. 866 4,176 18, 973 16,S33 54, 533 The percentage of daily attendance is highest in the Department of Cochabamba (93 per cent) and lowest in those of Tarija (68 per cent) and La Paz (72 per cent). Two hundred and thirty-three teachers were employed in the fiscal primary schools in the cities, and more than 520 in the village and rural schools of the Provinces. 38 BOLIVIA : A COMMERCIAL AND INDUSTRIAL HANDBOOK. SECONDARY INSTRUCTION. Secondary instruction is furnished by the national "colegios," or high schools, and by a number of church schools. Though more democratized than formerly, the secondary schools are still operated largely in the interests of the upper classes, and little attempt is made to coordinate their work with that of the elementary schools. Of hoys' public high schools there are two in Cochabamha (Bolivar 2 and Sucre), one in La Paz (Ayacucho), one in Potosi (Pichincha I . one in Sucre (Junin), one in Oruro (Bolivar), one inTarija (San Luis), and one each in Santa v Cruz and Trinidad. There are girls' high schools in La Paz, Sucre, Santa Cruz, and Trinidad. The enrollment in the public and private secondary schools in 1918 was as follows: Districts. Public. Private. Total. Boys. Girls. 373 476 162 212 180 179 93 67 105 311 53 165 111 792 529 50 11 377 334 ISO 179 93 9 76 Total 1,712 ; 175 643 2, 560 Some of these schools are well housed, particularly the Colegio Ayacucho, of La Paz. The course of study includes such subjects as modern languages (especially English and French), pure sciences (including chemistry and physics), world and national histor} 7 . PRIVATE SCHOOLS MAINTAINED BY RELIGIOUS ORGANIZATIONS. Two of the best private schools are those known as the American Institutes of La Paz and Cochabamha, which are operated under the auspices of the Methodist Church. These schools maintain courses from kindergarten through high school, and each has about 300 pupils enrolled in all grades. There are also a number of schools conducted by various Catholic orders, including the Jesuits and Franciscans. The Jesuit Academy in La Paz has about 230 boys enrolled. VOCATIONAL TRAINING. A remarkable impetus has been given during the las! few years to practical or vocational education in Bolivia. Schools of arts and crafts, or "artes y oficios," are now found in the important cities. Though they are generally lacking in equipment and properly trained instructors, the necessary framework and impulse already exist as B basis for future work. In L918 the registration in these schools in La Paz, Cochabamha, and Sucre was, respectively, 206, 86, and L55. A school of the same kind has been recently established in Potosi. The School of Applied Arts in La Paz had an enrollment in L918 of 160. The Salesian Brothers conduct a series of trade schools known - The word ■ In parantheaei are the names of the schools. INTRODUCTION. 39 as the "Colegios de Don Bosco." These schools are especially- designed to train artisans and craftsmen from among boys of the common people. They do particularly good work in training printers. There is a National School of Commerce in La Paz, which dates from 1910. It had 131 pupils in 1918. A similar school exists in Cochabamba, with 96 enrolled in 1918. The American Institute maintains a commercial course, and its La' Paz school has been unable to meet the demand for clerical help in that city. An agricultural school is in process of formation near Cochabamba, known as the School of Agriculture and Animal Husbandry ("Gana- deria"). The foundations of this school, which is situated on the "finca" known as "La Yileta," were laid in 1918. The allied School of Agronomy and Veterinary Science is located within the city of Cochabamba. One of the most serious needs in public education in Bolivia is the establishment of rural schools, such as exist in the Philippines, which would give the country population the knowledge and ambition to raise the agricultural industry from its present backward state. A national School of Mines exists at Oruro, which is the mining center of the Kepublic and the logical location for such an institution. The school has a 4-year course, with about 25 students enrolled. This is lower than the enrollment in 1918, when 40 students were registered. Though it has excellent materials for geological study and opportunities for observation of actual mining operations, the school lacks the necessary machine equipment. Considerable progress has been made in Bolivia in recent years in the education of teachers for the public schools. A well-equipped Superior Normal Institute in La Paz had an enrollment of 60 in 1918, and the Normal School in Sucre had 127 students in the same year. There are also rural normal schools at Sacaba, Tarata, and Mizque, in the Department of Cochabamba, two in the Department of La Paz, and two in the Department of Potosi. The principal object of this class of normal school is the training of teachers for Indian children. UNIVERSITIES. Each Department, with the exception of El Beni, has its own uni- versity, all of these institutions being under the direction of the Ministry of Public Instruction. With the exception of La Paz and Chuquisaca (Sucre), these schools consist of only one department, that of law. The University of Sucre or Chuquisaca dates from colonial times, having been founded in 1642, and it was long famous through- out the southern part of South America as an institution of higher learning. It now has faculties of law, medicine, pharmacy, and theol- ogy. Of its 170 students in 1918, 52 were enrolled in law, 60 in medicine, and 50 in theology. The University of La Paz has faculties of- law, medicine, dentistry, pharmacy, obstetrics, and theology. The total enrollment in 1918 was 232, of which 113 were enrolled in law, 72 in medicine, 13 in dentistry, 8 in pharmacy, 14 in obstetrics, and 12 in theology. The registration in the other departmental universities was as follows: Cochabamba, 115; Santa Cruz, 85; Oruro, 33; Potosi, 54; and Tarija. 32. The total number of uni- versity students enrolled in Bolivia was 721. 40 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. University education in Bolivia is in need of radical reorganization. Too much al tent ion is given to the law in the scheme of university teaching, with the result that the number of lawyers produced is out of all proportion to the needs of the country. On the other hand, the teac hing both of the humanities and of engineering is neglected or altogether omitted. The interests of the country would be far bet- ter served by the suppression of the small departmental universities and the concentration of effort on the Universities of Sucre and La Paz, or even on the former alone. The principal obstacle to such a change is the highly developed particularism of the different local capitals. With a single university a better quality of instruction and superior library equipment, now so lacking, could be secured. Also, the teaching of applied sciences would be made possible by the acquisition of the necessary laboratory and mechanical equipment, since the funds now dissipated among a number of small institutions could be devoted exclusively to the outfitting and maintenance of a single well-equipped university. Many Bolivians go abroad to study in the universities and technical schools of the United States, Europe, and Argentina. Those who go to the United States generally enter schools of dentistry, medicine, or engineering. These men carry back to Bolivia not only a valuable special training but the broadening influence of foreign travel and residence as well as a strong sympathy for the country where they have received their education. GENERAL LITERARY ACTIVITY. The intellectual activity of contemporary Bolivia has resulted in some very creditable production. Excellent special studies have been produced by members of the Geographical Societies of La Paz and Sucre, and similar studies also appear in the bulletins of the Oficina Nacional de Estadistica, or National Statistical Office. Bolivia's interest in boundary problems has resulted in the production of care- ful works in that field, notably by Eduardo Diez de Medina and Ricardo Mujia. The numerous geographical and scientific writings of Ballivian compare favorably with those of like character in any South American country. Numerous books on public questions have appeared that are of more than temporary value. However, reliable works of national history are scarce, though the "Histoids Financiers de Bolivia" of Casto Rojas and a detailed study (A' the administration of Santa Cruz are decidedly above the average of such works. The sociological study of Alcides Arguedas, "Pueblo Enfermo," though altogether too pessimistic a picture of national life, contains some perspicacious observations. • Bautista Saavedra's "El A vllu" is a thoughtful study of Indian life. Less can be said for the pure literature produced in Bolivia. Excepl for the rather melancholy novels of Arguedas, "Vida Criolla" and "Raza de Bronce," the fiction is of quite ephemeral interest. Little poetry or drama of value has been written by Bolivians. NEWSPAPER PRESS. The national press has no! kept pace with the progress of the nation in other fields. There are too many newspapers in each city, nio-t of whose inhabitants can not read. In February, L920, there were INTRODUCTION. 41 six dailies in La Paz, with circulations of 1,000 to 2,500. At the same time there were four dailies in Cochabamba for a population of about 35,000 people, two in Oruro, three in Potosi, and four in Sucre. In March the plant of one of the best dailies in La Paz was destroyed, and after the revolution of July the three Liberal organs suspended publication. Since that time, ''La Razon," the Republi- can daily, whose plant was wrecked in March, has resumed publica- tion. The La Paz papers contain six or eight pages to each issue. Much of this space is filled with the chronicling of local happenings that are really of small importance except in the eyes of the persons directly concerned. Much of it is taken up with advertising and an- nouncements, but first place is generally given to editorials on politi- cal questions. For these dailies are, above all, political pamphlets, which defend with great vigor the cause of one or the other of the two principal parties. Foreign telegraphic news occupies only a small place and is usually delayed in transit or relayed from Buenos Aires or some other neighboring capital. Some good writing is done in these journals. Some of the editors are men of real ability, but the newspaper business is in need of radical reorganization. RELIGION. According to the Bolivian constitution, " the State recognizes and sustains the Catholic, apostolic, and Roman religion, but permits the public exercise of all other cults." The budget of 1920 provided for the expenditure of 116,740 bolivianos for the State church. The lay Government is represented in the administration of the National Church by the Minister of Worship, who is also Minister of Foreign Affairs. The papal authority in the country is represented by an Internuncio, and the head of the national hierarchy is the Archbishop of Charcas, who resides at Sucre. There are bishops at La Paz, Cochabamba, and Santa Cruz. The total number of secular clergy in Bolivia is about 570. There are 17 conventual establishments, 8 of these being of nuns and 9 of friars. The total membership of the orders is about 510, of whom 280 are nuns and 230 friars. There are several Franciscan missions in the Beni, Santa Cruz, and the Chaco. These missions are doing an excellent work in bringing the Indian tribes of those regions under the influence of civilization. The religious ministration to the Indian population is one of the most difficult problems of the Church. The Indian is extremely superstitious, and beneath his Christianity he preserves certain beliefs and observances of Incaic times. It is difficult to arouse in him any spiritual conception of religion. His persistence in the use of his ancestral tongue is another barrier to the efforts to inspire him with any real religious feeling. CITIES AND TOWNS. LA PAZ. SITUATION AND PLAN. La Paz, the actual seat of government and chief commercial city of Bolivia, is situated in the western part of the Republic and near the northern end of the great Bolivian table-land. It is about 30 miles southeast of Lake Titicaca, 279 miles from the Pacific coast at Arica, and 145 miles north of Oruro, the principal mining city of Bolivia. The city lies in a huge basin about 3 miles across and about 1,400 feet below the "alto" above, where the plain meets the main range of the Andes. The only natural outlet to this basin is on the south side, where the small River Choqueyapu, or La Paz, flows out through a rugged gap in the mountains on its way toward the Beni and the Amazon. The traveler reaches La Paz from the west, and as he approaches the city from Viacha across the barren pampa of the plateau he sees before him a vista of mountain scenery such as can be found in few places in the world. A number of moun- tain peaks stand out above the great mountain mass that seems to wall in the east. To the south is Illimani, one of the two highest of Bolivian peaks, which is plainly visible from La Paz; directly to the east is the truncated form of Mururata; and to the northeast is the sharp outline of Huayna Potosi. From the rim of the vast broken bowl in which the city lies, two railway lines wind down to the sta- tions far below. The shortest road down into the city is by the Guaqui line's road from the Kenko to the Central Station, but the most interesting descent is by the Bolivia Railway's new extension to the Chijini Station. A much traveled road used by llamas and mules and passable for automobiles leads down into La Paz from the Kenko. Another road climbs out to the northeast by the Chuquia- guillo Valley and over the divide into the Yungas. The Yimgas Rail- way follows this road over the pass, enabling people who leave La Paz in the morning to be down on the edge of the Tropics on the nighl of the same day. A third road follows the river down the canyon out of La Paz in the direction of Illimani. This road passes through the pleasant town of Obrajes, which is situated about 3 miles below La Paz and at an elevation about l.ooo feet lower. The two places arc connected by a fair automobile road and by ;i street-car line. Some of the wealthier people of La Paz have homes in Obrajes, where the climate is superior to (hat of the city and the natural sur- roundings are more attractive. There is little level ground in La Paz, and the streets generally conform their direction to the topography rather than to the strut checkerboard plan of most Spanish American cities. Their grades are often verv steep, and some of (he streets extend well up the wall of the ''alto!" Most of the streets are paved with rough cobhle- Btones, (hough some are not paved at all. The thoroughfares best Suited for motor traffic are the Prado and the Avenida Monies. The 1 2 CITIES AND TOWNS. 43 Prado, otherwise known as the Avenida 16 de Octubre, is a wide avenue with a promenade space in the center and lined with eucalyp- tus trees. It connects the business part of the city with the residential quarter of Sopocachi and is itself bordered by attractive residences. One fork of the Prado forms the San Jorge and Obrajes road. The Plaza Murillo is the center of the city's life. It is a small park set with trees and flower beds. Facing it are the National Palace, the Congress Building, the unfinished cathedral, and the leading hotel . and club of La Paz. From the northwest corner of the plaza start Calles Comercio and Socabaya, two of the most important business streets of the city. Other business streets are Calle Diez de Medina, which is lined with dry-goods and clothing stores, and Calle Recreo. The latter extends from the Plaza Venezuela, at the end of the Prado, to the Plaza San Francisco, and contains a number of important grocery firms. ARCHITECTURE AND BUILDING. In La Paz, as in other Bolivian cities (though to a greater extent) , several distinct types of architecture are noticeable. The most com- mon type is the two-story, plain-front building which has been the prevailing style in most South American cities until recently. Though this class of building generally has two stories, it may have one or three. The interior rooms in these houses open onto a patio or interior courtyard, and the traditional Spanish "reja" or barred window and the balcony, often glassed in to serve as a sun parlor, still persist. The outside entrance is through a very heavy door with an old-fashioned lock. Houses of this kind are built up to the sidewalk and have no yard in the rear, the more protected patio serv- ing in its stead. There are few remnants of colonial architecture, of which this type is an outgrowth, left in La Paz. A different style of building has come into vogue in La Paz during the last two decades. The development of this new type is common to contemporary Latin America and is of French origin. These houses are much more ornate than the older buildings and many are of very attractive design and exterior, though a few of them are per- haps too extravagant and bizarre to be in good taste. The patio and "reja" tend to disappear, though the balcony is usually retained. An interior hall is substituted for the more spacious patio, but in some instances highly decorative iron grills are used in the lower win- dows. These houses seldom abut on the street, but a space is left in front, in which flowers and shrubs are planted. The builder's hard- ware used in the construction of this class of residences is of the most modern kind. The tendency is away from the severe simplicity of the old interiors to a greater effort at decoration. Walls and ceilings are papered, or tinted and stenciled with decorative figures. In- creasing attention is paid to comfort as well as to appearance, and there is a growing tendency to install bathrooms, with modern fix- tures, and up-to-date kitchens. The apartment-house type is also now beginning to appear in La Paz. Examples of the best residences of this type are the houses of Rafael Taborga and Benedicto Goitia. Little effort is made to heat dwellings or offices in spite of the cold nights and mornings at this altitude. People dress more warmly in- doors and grow accustomed to temperatures that persons used to steam heat would consider insufferable. Whatever heating is done 44 BOLIVIA: A COMMERCIAL AND [NDUSTEIAL HANDBOOK. is l>\ means of small electric healers. Some use the old-fashioned brasier, and a few open fireplaces have been installed in the homes of Americans. The cost of both coal and wood is almost prohibitive for heating purposes. Kerosene heaters are little used. Though plentiful, stone is little employed in building in La Paz, except in some public buildings. The better houses arc built of brick, which is often faced with a coating of plaster or stucco. Much con- struction, especially of the more ordinary class of buildings, is done with adobe blocks about 12 by 6 by 2 inches in size. These crude bricks are often made by Indian workmen on the site of the building and are consequently very cheap. After the building is put up, a layer of muddy plaster is daubed over the outside. The better grade of bricks used are burned in kilns about the city, for which the peat found near the Yungas road makes excellent fuel. There are no wooden buildings in La Paz. and the use of wood in construction is reduced to a minimum, being largely limited to the framework of the better class of houses and to flooring and lathing. There is little hardwood flooring, though considerable pine lumber is used. Bricks and figured tiles are also used for floors. Though red tiles have been much used in the past for roofing, this class of roof is being supplanted by corrugated galvanized iron sheets (" calamina ") , as a glance over the city will show. These sheets are also used for building ware- houses and some kinds of temporary structures. Slate is used on a few buildings, and a locally made roofing material is being intro- duced. Though thatch is the favorite covering for the cheaper class of house, its use is forbidden by a city ordinance because of its in- flammability. Though builders have begun to use concrete in certain classes of construction, iron reinforcing has not been introduced. A better class of business buildings is being put up in La Paz. Among such structures are the Taborga Building on Calle Socabaya, the Saenz Building on Calle Comercio, and the W. R. Grace Building at the corner of Diez de Medina and Socabaya. The first is a modern office building of four stories, equipped with an Otis elevator. The Saenz Building is the home of the department store ''El Louvre."' The two-story Grace building is devoted exclusively to the operations of this company and is built in the same general style as the rest of its larger west-coast branches. The most pretentious of the bank buildings of La Paz is the home of the Banco Mercantil. The most prominent public buildings are the Palace and the Congress Building, the Tribunales de Justicia, or Court Building, and the new Aduana or Customhouse near the Challapampa Station. There are also a num- ber of very attractive school buildings. The most outstanding examples of church architecture in La Paz are San Francisco, noted for its ornate facade, begun in 1548; San Sebastian, begun in 1570; and Santo Domingo, which dates from 1590. A cathedral is under process of construction on the Plaza Murillo. There are several large convents in the city, including those of the Franciscan friars and of the Sisters of the Good Shepherd, or Buen Pastor. w \ i i:i; si PPL1 IND si.w \<.i The northern section of La Paz derives it-; water supply from the vicinity of Milluni, which lies among the mountains in the direction of the peak of Huayna Potosi. At this poini a mountain stream has Special Agents Series No. 208. FIG. 6.— OFFICE BUILDING IN LA PAZ. Special Agents Series No. 208. FIG. 7.— TYPE OF NEW BUILDINGS IN LA PAZ. — - FIG. 8.— STREET IN SUCRE. CITIES AND TOWNS. 45 been dammed and a pipe led from the reservoir into the city. The Sopocachi district of the city is supplied from Tembladerani. .The water supply is fairly free from organic contamination, though the source of supply is not strictly guarded against llamas and eattle. However, the water suffers from inorganic impurities consisting of certain salts washed down from the highly mineralized mountains down which the streams flow. Moreover, the quantity of water is not sufficient for the growing needs of the city. The Ulen Contracting Corporation, of Chicago, has a contract pending with the Bolivian Government for the construction of a new waterworks system for La Paz. The conclusion of this contract largely depends on the reaching of an agreement by the two parties concerned as to the type of system to be used. The choice lies between sinking artesian wells above the city and drawing the water supply from the snow line of the near-by mountains. The former plan is estimated to cost about $1,200,000 and the latter about $2,000,000. However, it is highly doubtful, whether sufficient water for the city's needs could be obtained from artesian wells, whereas tapping the edge of the snow beds would insure an ample supply of pure water for any contingency. On March 17, 1920, a contract was signed between this same com- pany and the Bolivian Government for the laying of a system of sewers for the city, to take the place of and supplement the present inadequate sewage facilities. The plans provide for the laying of about 57,450 meters (188,484 feet) of sewers, the cost of which will amount to about $1,200,000. Two laws passed in January, 1920, provided certain special taxes for meeting the amortization and annual service on the bonds, which are to be issued to meet the expense of this work. ELECTRIC LIGHT AND POWER. Electric lighting in La Paz dates from 1888. Electric light and power is furnished by the Bolivian General Enterprise (Ltd.), a French concern, which is controlled by the great firm of Schneider- Creusot. Power is derived from the river, which flows through the city, the power house being located some distance above La Paz. Current is sold at 60 centavos per kilowatt for light and 30 centavos for heating purposes. Power is sold for industrial purposes at the rate of 30 centavos per kilowatt for the first 34 kilowatts taken, at 20 centavos for the following 50 kilowatts, and at 10 centavos for all quantities over 84 kilowatts. STREET RAILWAYS. The city street car system is operated by the same company that supplies La Paz with electricity. The city is well covered by the different lines of the company. One of these runs from the Chijini and Challapampa stations in the north end of town through the business district and thence by the Prado and Avenida Arce to San Jorge and Obrajes. . Another line branches off from this route into the residential section of Sopocachi, and others lead to the Miraflores quarter or climb up through the northwestern part of the city to the cemetery. The trams used are small American cars. The second- class fare within the city limits is 10 centavos, and the first-class fare 46 BOLIVIA: A COMMEBCIAL AND INDUSTRIAL HANDBOOK. is 20 centavos. In spite of complaints to the contrary, the service is fairly satisfactory. TELEPHONES. The La Paz telephone system is also owned by the Bolivian Gen- eral Enterprise. The telephones used are Largely of French make. POLICE. The preservation of order, which, in ordinary times, presents no serious problems, is in the hands of a body of men known as the "policia de seguridad." In addition to the regular municipal police force, there is a gendarmerie or body of mounted carbineers, whose field of action also includes the country around the city. KIKE PROTECTION. As the construction materials employed in La Paz are noninnam- mable, firerisks give little concern to property owners or the municipal government. There is no public fire department, but, as is usual on the west coast, the business of fighting fires is left to local "cuerpos de bomberos," which are private organizations. None of these companies are equipped with modern apparatus, and there are, moreover, no high-pressure fire mains in the city. A local insurance company, known as the Compania Nacional de Seguros, began operations in 1918. The directors include some of the most prominent men in the country, among them being Jacob Backus, the general manager of the Bolivia Railway, and Carlos Calvo, the prominent lawyer and man of affairs. More than half of the stock is held by two foreign insurance companies, the Compafilas Unidas de Seguros, of Lima, and the Compania Intemacional de Seguros, of Panama. The company is capitalized at 200,000 bolivi- anos. The reserve fund amounted at the .end of 1919 to 57,007 bolivianos, and net profits in 1919 were 50,000 bolivianos. Premiums paid in 1919 amounted to 179,579 bolivianos. MARKETS. Though the public markets of La Paz are among the moat pictur- esque in the world, they are neither modern nor sanitary. The central market is located in the heart of the city, where it occupies almost an entire Mock. Most of this space is covered, to protect the booths from the weather, and the interior of the place is dirty and gloomy. A large number of "cholas" keep stalls, where they sell everything from meat to curios -including cheap cotton and "bayeta" cloth. fruit and vegetables, blankets and ponchos, and cheap hardware and notions. A short distance away on Calle Recreo there is a fruit, vegetable, and flower market. On the Plaza San Francisco is another market, where scores of women sit in rows on the ground before small piles of vegetable's or other goods that constitute their meager stock in trade. On one side of this square is a closed market. The most interesting market is the open-air fair held every Sunday in tins plaza and extending mosl of the length of Calle Kecivo and up several of the cross Streets. Hundreds of Indians and "cholas'' come into the city at the end of the week with burros laden with products of the surrounding valleys. On Sunday morning they take their place- along the curb of the different streets winch are set apart CITIES AND TOWNS. 47 by the municipal authorities for this purpose. From 8 o'clock until noon these streets form a scene of the greatest animation, and, with the highly colored shawls and ponchos of the natives, this probably constitutes the most colorful scene in South America. BANKS. All the general Bolivian banks have establishments in La Paz, including the home office of the Banco de la Nacion Boliviana, the Banco Nacional de Bolivia, and the Banco Mercantil. There is also a branch of the Banco Aleman Transatlantic©, and there are several large commercial houses which do a private banking business, including W. R. Grace & Co. and Denniston & Co. The mortgage bank, known as the Credito Hipotecario, is located in La Paz. HOTELS AND CLUBS. The best hotel in La Paz, and the one almost exclusively patronized by foreign tourists and traveling men, is the Paris. This hotel is situated on the Plaza Murillo and contains about 50 rooms. Rates are about 12 bolivianos a day, American plan. The rooms are well furnished and quite comfortable and have running water connections. However, ■ baths are separate. For an additional charge, electric heaters can be used in the rooms until 10 p. m. The food, though sufficient in quantity, shares in the general inferiority of the Bolivian cuisine. Another hotel is the Central, formerly the well-known Guibert. Mrs. Murray's large pension on the Prado furnishes good boarding-house accommodations at very reasonable rates to those who intend to make a long stay in the city. There are no restaurants in the strict sense of the word, and such an institution is greatly needed to meet a real demand among for- eigners and natives alike. A certain cafe-bar on the main plaza is much frequented by foreigners,' and the Confiteria Paris, a popular rendezvous at tea time and after the theater, is one of the best of its kind on the west coast. The principal club of the city is the La Paz Club, which includes in its membership most of the prominent men of the town. The National Club largely drew its members from among the younger set of La Paz. An Anglo-American Club is now being organized to serve as a meeting place for the English-speaking community and out-of- town visitors from Great Britain and the United States. THEATERS AND OTHER AMUSEMENTS. The largest theater in La Paz is the Municipal, in which a season of light opera is held every year. The two other most important theaters are the Princesa and the Paris, which are devoted to vaude- ville, motion pictures, and comedy. The capacity of both theaters is small, each one holding only a few hundred people. The motion- picture films exhibited are largely of American production, though they are often well aged before they reach La Paz. There are also picture theaters in the following cities: Cochabamba (2), Oruro (3), Potosi (1), Sucre (2), and Uyuni (1). The cold nights in La Paz prevent the fullest enjoyment of attendance at the theaters, which are unheated, even during the winter. 48 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Among outdoor diversions in La Paz arc golf and tennis. There is a golf club with links on the "alto" above the city, and there are several tennis courts. Among the natives considerable interesl has been developed in association football. On July I. L920, the first baseball game in Bolivia was played in La Paz between two teams picked from the American colony. A full outfit was later presented to the soldiers of the local garrison in the hope thai the natives would be aroused to take up the game. Those for whom bad roi have no terror may derive some pleasure from motoring about La Paz. There is one stretch of good road, a few miles long, from La Paz down the canyon through Obrajes, and motorists can drive as far as Lake Titicaca or Sorata during: the dry season. COST OF LIVING. The increase in the cost of living between 1014 and 1020 is illus- trated by the following scale of prices for some essential items: Item-;. Two rooms and oath (furnished). Small apartment (furnished Six to eight room house (unfur- nished i Eight to ten room house (unfur- led) Sard coal short tons. Wood KM) pounds. pair. Cnderwear suit. Shirts each . 1914 1920 Bolivi- Bolivi- anos. anos. 80. 00 17.",. (HI 100.00 225. 00 lfio.oo 200.00 200.00 300.00 180.00 300. 00 2. 50 3. 80 20.00 35.00 10.00 15.00 6.00 12.00 1 Items. Suil iugs yards Bread pound Butter .do. Cheese Eggs Fish, preserved pound Fruit , fresh do. . Meat, fresh do.. Milk, unskimmed quart Potatoes pound Hire do.. urn 1920 Bolivi- Bolivi- anos. anos. is. 00 35.00 .20 .30 3.50 2. (HI 3.00 .so 1.80 .50 2. (HI . in .50 .30 .7o .30 . Hi . 10 .LO The following budgets (in {'. S. currency) for a year's expenses. based on American standards of living, were prepared by the Ameri- can consul in La Paz in L920: Renl Pood.. Light Beat Laundry. . . Clothu Single man. ■1,300 300 7.', (in Man, wife, and two ellil- dren. 2 > 100 150 200 150 111 m [terns. Insurance Medical and dental attention i tation Social requirements Recreation Total Single man. 150 300 3,815 M . « il . and 1 wo chil- dren. $2. "J I 300 250 .-.in i 500 KHl COCHABAMBA. The city of Cochabamba is situated on a plain thai was formerly the bed oi a lake, from which theQuechua name of the city Is derived. h lies at a distance of about i miles from the range of the Cordillera Oriental to the north. The Rio Rocha, which for most of the veal- is but a si i in II creek. How s 1 1 1 rough t he city, dividing the main port ion of the town from a pleasant suburb on the north side of the river. 1 low ever, during t he rainy season t he st ream assumes t he proport ions CITIES AND TOWNS. 49 of a river, so that the city has had to be protected by dikes from inun- dation. The altitude of Cochabamba is about 8,446 feet above the sea. Because of Cochabamba's relatively low altitude, its climate is very pleasant throughout the year, as there are no extremes of either heat or cold. The summer, or time of highest temperatures, which includes the months from November to March, is also the rainy season. The season of lowest temperatures extends from June through August, and is also the dry season. The water supply for the city comes from lagoons located at Arocagua, a few miles from the city limits. Not only is the quantity insufficient, but the quality is poor. A contract is now under con- sideration for the construction of a new waterworks system by the Ulen Contracting Corporation, which has recently obtained a con- tract for constructing a sewage system for the city. At present many of the streets of the city serve as open sewers, to the detriment not only of the appearance of the place but also of the health of the inhabitants. The cost of the new system of sewers, the contract for which was signed on March 17, 1920, will be about $1,000,000. About 49,470 meters of pipe will be laid. Cochabamba, which is the second city in Bolivia, has a population of about 35,000 people. It is the only city in Bolivia that has a con- siderable number of large tributary towns within a short radius around the city. Three wide valleys radiate in different directions from Cochabamba — that of Quillacollo to the west, Sacaba to the northeast, and the rich valley of Punata, which is followed to its termination at Arani by a narrow-gauge railway. There are several towns in these valleys with populations from 1,000 to 8,000, includ- ing Tarata and Cliza, in addition to the four towns named above. However, the backward appearance of most of these towns does not accord with the natural wealth of the surrounding country . In spite of the impulse given to its development by the opening of the railway from Oruro, there has been little change in the aspect of Cochabamba itself, and most of the buildings are old. However, some modern construction is now under way. The life of the city revolves about the central plaza, which is surrounded by long colonnaded buildings, including the offices of the prefecture and the municipality. Electric light and pow T er is furnished the city by the Empresa Luz y Fuerza Electrica, which also operates the railway lines to Vinto and Arani. The same company owns the local tramway system. The income from the sale of electric current during 1919 amounted to 110,122 bolivianos, and from the tramway service to 59,119 bolivianos. The cost of electricity in Cochabamba is less than in any other city in Bolivia. The net profits from these and other minor interests of the company amounted to 96,344 bolivianos in 1919. Telephone service is supplied by a local concern, known as the Empresa de Telefonos, Sucesores de N. Pena. The large public market is among the most insanitary in Bolivia. Between 800 and 1,000 women conduct stalls in the market. No effort is made to protect meat or vegetables from contamination, and the' municipality declares that its finances are inadequate for the construction of a new and sanitary market. 44462°— 21 — -4 50 BOLIVIA: A COMMERCIAL AND INDUSTRIAL BANDBOOK The banks maintaining branches in Cochabamba are the Banco de La Nacion, the Banco Nacional, and the Banco Mercantil. The last- named bank has a new building in course of construction. The best hotel in Cochabamba is the Majestic. Both rooms and food are very good. The rate is 10 bolivianos a day, American plan. Other hotels are the Union and the Hispano-Americano. ORURO. The city of Oruro is situated at the foot of a series of low mountains about 2,000 feet high. From the opposite side of the city a level plain stretches away to another range of mountains about 5 miles distant. The altitude of the city is about 12,122 feet above sea level. The population of Oruro is variously estimated at 25,000 to 30,000, thus making it probably the third city of Bolivia in size. The appearance of the city partakes largely of the desolate char- acter of its surroundings, though much has been done during the past few years to improve it. Streets have been paved (though with rough cobblestone), some good sidewalks have been put in, the two principal plazas have been improved and hardy trees have been planted in them, and some very creditable buildings have been con- structed. Among the latter are the new post office, the Patifio Building, the new home of the Banco de la Nacion, and an attractive motion-picture theater. The city suffers from the lack of adequate sewage facilities, the streets being used for that purpose in some pa its of the town, but a contract is now under consideration, with the same American company that holds similar contracts in La Paz and Cochabamba, for the installation of a modern sewage system at a cost of $1,000,000. Oruro is supplied with water from a stream on the opposite side of the valley at a place known as Calacala. Though this water supply is of very fair quality, the quantity is insufficient for the industrial needs of the city. Electric light is furnished by the Empresa de Luz y Fuerza Electrica de Oruro, which is controlled by the German hard- ware firm of Gustavo Hinke & Co. One of the mining companies operating in the hills on the edge of the city also sells electric current to the public. The local telephone service is owned by a concern known as the Empresa de Telefonos N. Pefia. The principal office of the Banco Mercantil, of Simon Patifio, is located at Oruro. Other banks maintaining branches at Oruro are the, Banco de la Nacion, the Banco Nacional, and the Banco Aleman Transal Lanl Leo. The Eden Hotel offers fairly good service at 10 bolivianos a day. Other hotels are the Union, the Quintanal, and the Aleman. SUCRE. The city of Sucre is situated in a pocket in the mountains ol'Chu- quisaca, at an altitude of about 9,338 feet aUre the sea, thus possess- ing a climate that is exceptionally mild and pleasant throughout the year. The annual rainfall amounts to 30 to 36 inches, nearly ah of which takes place between December and April. The population of Sucre is between '20, 000 and 24,000. A number of wealthy families, whose fortunes were made in mining and bank- CITIES AND TOWNS. 51 ing, live here, the founders having come to Sucre from other parts of the country because of the superior climatic and other conditions which characterize the place. They constitute a cultured and re- fined aristocracy, most of whose members have traveled beyond the confines of Bolivia and have brought back from abroad certain cos- mopolitan tastes and ways. Both men and women are the best- dressed people of their social rank in all Bolivia. , The rest of the population is largely composed of the usual proportion of cholos and Indians found in a Bolivian city. Quechua is the customary lan- guage of intercourse of -the lower classes. Sucre is the capital of the department of Chuquisaca, authority being- exercised by a prefect, appointed from La Paz. Formerly this city was the capital of the Republic, but since 1900 La Paz has been the de facto capital. However, the Sucrenses still consider their city the legitimate capital and refer to La Paz as the "seat of govern- ment." The removal of the capital to La Paz has naturally had a depressing effect on the business situation of Sucre. A pretentious but unfinished capitol building still stands as a monument to the aspirations of its inhabitants. The city has remained the seat of the Supreme Court and of the archbishopric. A sufficient supply of good water is furnished the city from the locality of Cajamarca, a few miles from Sucre. Electric light and power is supplied by the Empresa de Luz y Fuerza Electrica de Sucre, and the present plant of this company, which has paid divi- dends of 12 per cent to its shareholders, has a capacity of 115 horse- power. A new company was organized in 1920 as its successor, known as the Sociedad Industrial de Electricidad, and the plant, which is to have a capacity of 400 horsepower, is to be located at Tuma on the Rio Cachimayo, about 6 miles outside of Sucre. The nominal capital amounts to 1,000,000 bolivianos, of which 875,000 bolivianos had been paid up in July, 1920. The equipment ordered for the new plant is of American manufacture. The public telephone service of Sucre is operated by a local company. The central bank of the Banco Nacional de Bolivia, with which the Banco Francisco Argandona was recently amalgamated, is located in Sucre. There are also branches of the Banco de la Nacion, the Banco Mercantil, and the Banco Hipotecario. The principal hotel is the Colon, which gives fair service for the small sum of 6 bolivianos a day, American plan. The Hispano-Americano is another hotel. The Club de la Union is one of the best-appointed clubs in Bolivia. POTOSI. The historic city of Potosi, known in colonial times as "the Impe- rial City," is located in a pocket in the mountains at the foot of the famous Cerro, whose mineral wealth led to the foundation of the city. Potosi is the highest city in Bolivia, being situated at an altitude of 13,612 feet above the sea, while the Cerro rises about 2,000 feet higher. The city was founded by the Spaniards in about 1545, and during the height of the mining boom had a population of more than 160,000 people. The city now numbers between 27,000 and 30,000 inhabi- tants, of whom the large majority are Indians and "cholos." The city has preserved much of the aspect of colonial times. It has some notable churches and the famous Casa de Moneda, or mint, is 52 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. still Standing. Most of the houses arc built of brick coated with plaster, though the poorer houses arc constructed of adobe, with a t li in layer of plaster on the outside. Barred windows and balconies and interior courtyards, often of great antiquity, arc common fea- tures of architecture. The streets are narrow and crooked and paved with cobblestones. Sanitary conditions are had, though favored to some extent by the good natural drainage of the site. The water supply comes from a system of 21 old lagoons constructed by the Spaniards above the city, with a total capacity of 5,672,500 cubic meters of water. The capacity of these reservoirs is to he increased shortly, upon the carrying out of plans for a system of sanitary works in Potosi, as in other Bolivian cities. Light and power are supplied to the city by the Empresa Luz y Fuerza E16ctrica, con- trolled by Rodriguez &Cia. The hydroelectric plant is located about 6 miles from the city, where a stream has been dammed i<> form a small lake. Three banks serve the city — branches of the Banco de la Xacidn Boliviana, the Banco Nacional de Bolivia, and the Banco Merc,-, mil. The two principal hotels are the Splendid and the Paris, rates being only 5 bolivianos a day, with service and accommodations in accord- ance. SANTA CRUZ. The city of Santa Cruz, which was founded in 1560, is situated in the heart of eastern Bolivia, about 35(1 miles cast of the railhead at Cochabamba and about 450 miles from the Paraguay River to the east. It lies about 3 kilometers (nearly 2 miles) from the Rio Pirai, at an altitude of about 1,380 feet above sea level. It is located in the midst of a great plain across which a network of roads leads in every direction. Most of the construction is of plaster and wood, and the houses generally have porticoes in front for protection agajnsl the heat. The streets are unpaved and are deep in sand when they are not flooded by the torrential rains that fall during the summer. Kerosene lanterns arc used for lighting. The water supply is ob- tained from about 10 semiarlesian wells. The Banco de la Xacidn Bolivians has a branch in Santa Cruz. The best hotel is the Comercio, which is situated on the main plaza and near the prefecture. In 1900 Santa Cruz had a population of 18,335 and at present probably has 20,000. An unusually large pro- portion of the people are of the white race, and theCrucefios are noted throughout Bolivia for their hospitality and courtesy I o st rangers. Once t he resources of the surrounding region can be developed, Santa ('in/, is undoubtedly destined to be one of the foremosl inland cities in all South America. TARIJA. Tarija, which was founded in 157 1. is situated in a plain among the mountains of southern Bolivia. It lies about 85 miles cast of Tupiza on the road from La Paz h; [Jyuni into Argentina and about 45 miles north of the Argentine frontier. The city is located at an altitude of about 6,500 feet above sea level, and is built on the banks of the Rio Grande de Tarija, a branch of the Bermejo. The population of Tarija is between 9,000 and 10,000. There are branches of the Iianco de la Xacidn, the Banco Xacional. and the Banco Mercant il. CTTIES AND TOWNS. 53 UYUNI. The important trading and railway center of Uyuni is situated near the southern end of the great Bolivian Plateau, at an altitude of about 11,972 feet above the sea, It lies almost midway between Antofa- gasta and La Paz, being at a distance of 617 kilometers (383 miles) from the former and 556 kilometers (345 miles) from La Paz. It is the seat of the subprefecture of the Province of Porco in the Depart- ment of Potosi. The surrounding country is an almost complete desert, the only vegetation being a scant scrub growth. There is no vegetation whatever in the town of Uyuni, and the appearance of the place, which consists of rows of one-story houses, bordering very wide, sandy streets, is desolate and unattractive in the extreme. Uyuni has the most rigorous climate in Bolivia, and one who has experienced the Siberian cold of a winter night in this town can never forget the experience. The population of the town is between 3,000 and 3,500, probably less than that of the near-by mining camp of Huanchaca-Pulacayo. About 10 per cent of the population is white, and the remainder are "cholos," comprising all degrees of mixture of Indian and white. There are branches of both the Banco de la Nacion and the Banco Nacional. The best hotel in the town is the Uyuni, which is situated near the railway station. Rates are very moderate — 6 bolivianos a day — and the service is fairly satisfactory, though the guest may sometimes have to dine muffled to his ears in an overcoat. OTHER TOWNS. Large towns have grown up about some of the chief mining centers, such as Uncia, Llallagua, Corocoro, Pulacayo, and Colquechaca. Some of these have several thousand inhabitants. Others, like Viacha and Guaqui, have developed at railway junction points. Some of the large Indian towns of the "altiplano," such as Sicasica and Charana, are places of utter dreariness. The Yungas towns are small and backward in appearance, but picturesquely situated and enjoy a fine climate. They are usually built high up on the mountain sides or in some cases on the very crest of the mountains. There are few accommodations for travelers, as is the case in nearly all the small towns of Bolivia. The most important towns of the Yungas are Chulumani, with about 2,500 inhabitants ; Coroico, 1,800 ; Coripata, 800; and Irupana, 700. Other towns are Yanacachi, Villa Aspiazu, Chirca, and Pacallo. These are pleasant villages, set high up on the mountain sides, among orange groves and coca fields, and inhabited by a hospitable and kindly people. The most important towns in the Amazonian region of Bolivia are as follows : Riberalta. — This town is situated on a prominence, about 30 meters above the ordinary level of the rivers, at the confluence of the Madre de Dios and the Beni. It is the most important trading center of the Beni and has a population of between 3,500 and 4,000 people. It is a comparatively new town, having been founded in the eighties of the last century. The town has a branch of the Banco de la Nacion and an important wireless station. Villa Bella. — Villa Bella is situated at the confluence of the Beni and the Mamore, but is cut off from the upper course of these rivers 54 BOLIVIA: A COMMERCIAL AND [NDUSTRIAL HANDBOOK. by rapids or " cachuelas." It lies about L25 miles from Riberalta. The population of the town is between 1,500 and 2.000. Trni idiul. This town is the capital of the Department of E] Bcni and has a population of about 4,000 people. The place was founded in 1502 and was formerly of much more importance than at present. It lies about miles from the Mamore, hut it is proposed to dig a channel from the river to the town that will he navigable for launches. The town consists of rows of wooden houses running at right angles to each other and straggling over the grassy prairie, which is subject to inundation during the rainy season. The nouses are mostly built of insufficiently seasoned lumber, which quickly decays under the action of the climate — an old Jesuit church being the only building of durable material. Cobija. — This town, the capital of the Territory of Colonias, is located on the Rio Acre and opposite Brazilian territory. It has rapidly increased in importance because of its position in the rubber trade and now has a population of about 3,000. MagdcHena. — Magdalena is located on the Rio Itonama in the Province of Itenez, Department of El Beni. Its population is about L\( )()(). Baures. —This town is situated on a river of the same name in the Province of Itenez. Its population is between 1,500 and 2,000. Amongother Bolivian towns are the following: Mizque and Aiquile, lying in isolated valleys on the road between Sucre and Cochabamba ; Totora, situated among the mountains on the way from Cochabamba to Santa Cruz; Padilla and Lagunillas, to the southeast of Sucre. Lagunillas being the center of petroleum operations in eastern Bolivia ; Cotagaita, to the south of Potosi; Camargo, lying in a pleasant valley north of Tarija; Sorata, situated under the shadow of Jllampu to the cast of Lake Titicaca; and Tupiza, which lies about midway between the Bolivian and Argentine railheads on the road from Uvuni to La Quiaca. Tupiza is a place of about 1,500 people, situated in a well- cultivated valley at an altitude of about 9,800 feet. Though its present commercial importance is very limited, the completion of the railway between Atocha and the Argentine border should give .i considerable impulse to its growth. It has branches of the Banco de la Xacion and of the Banco Nacional de Bolivia. TRANSPORTATION AND COMMUNICATIONS. EXTERNAL TRADE ROUTES. Because of the inland position of the country the question of foreign outlets is of the most vital importance to Bolivia. At present all its foreign commerce passes through the territory of other countries. Its outlets to the Atlantic are by way of Brazil or Argentina, and those to the Pacific by way of Peru or Chile. Though the passage of merchandise to and from Bolivia through these coun- tries is subject in normal times to few restrictions, national pride and the fact that the freedom of this transit trade depends, at last resort, upon the will of other powers have made this question of outlets the very basis of Bolivia's foreign policy. Free transit of goods across Argentine territory is guaranteed by a treaty of 1868. Transit trade across Brazil is carried on under the provisions of the treaty of 1903, with further regulations provided by a treaty of 1910. The treaty of 1904 established the right of free transit across Chilean territory, and a convention drawn up in 1912 contains regu- lations for the enforcement of these articles of the original treaty. Trade by Mollendo, in Peru, is regulated in accordance with a treaty of 1905 and two supplementary agreements of 1917. However, the Bolivians contend that these treaties do not offer the necessary guaranties or freedom from the intervention of foreign customs officials in transit shipments to and from Bolivia. They also claim that they do not assure adequate protection against smuggling operations organized on the territory of these neighboring countries. Also, the circumstance that all Bolivian commerce has the character of transit trade makes it difficult to center responsibility for the loss of freight in transit. Thus, in Bolivia it is customary to put the blame & f or all pilferage on those who move the goods at the coast ports, where Bolivia has no control over lightermen and stevedores. There are three distinct connections with the Pacific coast. The most northerly of these is that formed by the Guaqui-La Paz Rail- way, the line of steamers on Lake Titicaca, and the Southern Railway of Peru, terminating at Mollendo. This Peruvian port shares in the general bad character of west coast harbors and is only an open roadstead exposed to the long, heavy swell of the Pacific and the storms of the winter season. Freight is transferred between ship and shore by means of lighters, and at times the loading and landing of goods is impossible. Mollendo itself is an unattractive town of about 2,000 people, situated on a bench of land about 75 feet above the ocean, at the edge of the desert which extends inland m an unbroken waste to the beautiful oasis of Arequipa. The distance from Mollendo to La Paz is about 529 miles. The two other outlets to the Pacific are through Chile, terminating at Arica and Antofagasta. Arica is the Pacific port nearest to La Paz, the distance between the two places being only 279 miles. Communications are had over the Arica-La Paz Railway (Ferro- 55 56 BOUVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. carri] de Arica a La Paz). Arica is a place of about 1,000 people, and is also connected by a local railway Line with Tacna, which lies 39 miles fco the north. The port of Arica is protected by ao island lying to the south and by a reel' which connect- this island with the mainland. This gives snipping considerably greater security than vessels enjoy at either Mollendo or Antofagasta. However, trans- shipping operations are carried on by means of lighters, a- at the other polls. There are, wooden piers, to which goods are raised from (he lighters by steam cranes and on which railway tracks are laid. The third outlet is through Antofagasta. This port is connected with La Paz and other cities of the plateau by the lines of the Anto- fagasta & Bolivia Railway and the Bolivia Railway. The junction of these two roads, both of which are under the same management, is at CJyuni, in Bolivia. The distance between La Paz and Antofa- gasta is 727 miles. The harbor of Antofagasta, like that of Mollendo, is ,in open roadstead, though important harbor improvements are projected. The transfer of freight is handled in the same manner and attended with the same difficulties. Antofagasta is ; i compara- tively well-built city of between 30,000 and 40,000 people and is a very important shipping point, not only for the mineral products of southern Bolivia, but for the copper, nitrate, and borax produced within the Province of Antofagasta. The Bolivian consuls at these ports act as "agentes aduaneros," or representatives of the Bolivian customs service. In this capacity they are empowered to register consignments of merchandise in transit to and from Bolivian points and to protect tin 1 rights of Bolivian shippers and consignees. Bolivia has connections with the Atlantic coast through both the Amazon and the Plate. The former river is the outlet for the rubber of the Beni and Colonias regions. Most of this export of rubber is sent out over the Madeira-Mamore Railway and down the Madeira River, to be reembarked at Manaos or directly from Para for Europe and the United States. The total distance from Ribe- ralta, the commercial center of the rubber country, to Para is about 2,300 mile.. There are three different routes connecting Bolivia with the River Plate. One of these consists of the nmle-and-cart road between I ;i Cruz and Puerto Snare/, and the lines of steamers that connect Puerto Suarez through Corumba with Buenos Aire- and Montevideo by way of the Paraguay. Parana, and Plate. The distance from Buenos Aires to Puerto Snare/, is about 1,730 miles and thence to Santa Cm/.. I'.io miles farther. There are two all-land routes from Bolivia across Argentine territory, terminating at the River Plate. One of them is formed by the road that leads south from Santa Cruz to the border ;if Yacniha, and thence to the railhead at Kmhar- cacion, on the Bermejo. From this point there 1 are rail connections to Buenos Aires, the route being by the Argentine Central Northern Railway as far a- Tucuman, which is the northern terminus of both the Central Argentine and the Central Cordoba. The distance from Y.'ieifib;! to Buenos Aire- is about 1,21 I miles and the total distance between Santa Cruz and the River Plate by this route is about 1,590 mile-. The alternative route i- that which connects the Bolivian plateau with the Argentine seaboard, as the other route furnishes TRANSPORTATION AND COMMUNICATIONS. 57 an outlet for the plains region of eastern Bolivia. The successive stages in this route consist of the Bolivia Railway Co.'s line from La°Paz to the temporary railhead at Atocha, the 125 miles of mule- and-automobile road that fills the gap between Atocha and La Quiaca, and the railway from the frontier at La Quiaca to Buenos Aires. From Perieo, in the Province of Jujuy, into Buenos Aires this route is identical with that from Yacuiba and Embarcacion. The proportion between exports from Bolivia by the various outlets in 1918 was as follows: Outlets. Pacific Chile Arica Antofagasta. . Mejillones Ollague Caquena Peru Mollendo Puno Cojata Tambopata. . Atlantic Argentina La Quiaca. . . Tocitos Ballivian Tartagal Itaperend a . . . Yavi Calahoyo Embarcacion Brazil Porto Velho.. Para Puerto Acre.. Corumba Weight. Medic tons. 102,641,560 97, 719, 024 46,340,55S 32,276,357 5, 107, 346 3, 935, 292 59, 170 4,922,545 3, 513, 242 1,381,618 20, 464 7 221 18, 069^ 094 12, 415, 689 6, 406, 0S4 5,301,620 472, 000 157, 220 41, 600 27,015 6,870 3,280 5, 653, 405 1,895,616 1, 612, 983 1,231,552 913, 344 Percent- age. 85. 03 80.95 14.97 10.29 Value. Bolivianos. 164, 871, 155, 599, 65, 797, 46, 294, 38, 197. 5, 296, 13, 9,272, 8,959, 290, 9. 13, 17,741, 6,591, 5,202, 1,216! 106! 36! 9: 4 13 2 11,112 3,750 3, 879 3,000 519 Percent- age. 90.28 85.21 9.72 3.61 6.11 In 1915 the proportion of Bolivian exports sent out in transit through these four countries was as follows : Weight. Value. Countries. Metric tons. Percent- age. Bolivianos. Percent- age. Chile 77, 604, 759 7, 286, 135 5, 134, 203 2, 364, 906 83.91 7.88 5.66 2.55 77,755. 137 3, 890, 836 10,253,461 3,310,916 81.67 4.09 10.77 3.47 Total imports through the four countries in 1918 were as follows: Weight. Value. Countries. Metric tons. Percent- age. Bolivianos. Percent- age. Chile 106,639,611 32,085,721 8,378,776 3,231,620 70.93 21.35 5. 56 2.16 18,078,453 11,460,325 4,067,574 1,393,535 51.65 32. 75 11.74 •:. 86 58 BOLIVIA: \ < K. [mports 'm 1918 through the throe Pacific ports, which comprise the total importations through Chile and Peru, worn as follows: Ports :lll>,, 720, 230 47, 145, 974 32,276,357 .\ti trie tons. 2,364*906 2,835,207 1,663, 121 3,513,212 Other Metric tons. 12,520,339 L9, 164,592 56, 124,040 38,580,507 Whereas in L915 only 34 per cent of the total exports of Bolivia went through Arica and -49 per cent, or nearly half, through Anto- fagasta, in 1918 Arica had 38.39 per cent and Antofagasta 26.74 per cent of the exports. However, exports through Mejillones, which lies a short distance to the north of Antofagasta, increased enor- mously during this period, particularly after 1910, as is shown above by the figures for "Other routes." The distances between important points of shipment in Bolivia and the three ports of Antofagasta, Arica, and Mollendo are as follows: La Paz to — Miles. Arica 27!) Antofagasta 719 Mollendo 535 ( >rur<> to — \lic;i 384 Antofagasta 637 Mollendo 641 Cochabamba to — Miles Arica Antofagasta 70t> Mollendo 772 Machacamarca to — Arica 398 Antofagasta Mollendo 656 RAILWAYS. HISTORICAL SURVEY. The lirst railway in Bolivia was the line built from Antofagasta to LTyuni to serve as an outlet for the mines iA' Huanchaca. This line was opened t<« traffic in L 889, and the next year was sold to the Antofagasta A: Bolivia Railway Co. However, the greatest impulse to railway building was giveD during the administration of President [smael Montes (1904 L909). By the end of 1913 there were three lines between the Bolivian plateau and the coast. The line from TKANSPOKTATION AND COMMUNICATIONS. , r )9 Antofagasta to Uyuni was extended north to Oruro in 1892, giving a new impetus to the development of the mining industry to the cast of the railway. In 1913 this line, known as the Bolivia Railway, reached Yiaeha, with connections into La Paz. The same year the Long-promised Chilean line from Arica to La Paz was also completed. In 1903 the railway from Lake Titicaca reached the "alto" of La Paz and gave that city connections with the coast at Mollendo over the Southern Railway of Peru. Two years later the section known as the "baiada" was built from El Keriko, at the edge of the "alto," down into La Paz. The main trunk lines were later supplemented by branches built into important industrial centers. In 1912 a branch of the Bolivia Railway was extended from Rio Mulatos into Potosi, and five years later Cochabamba was linked up with the main line at Oruro. In 1913 the line which was to connect the Bolivian and Argentine sys- tems reached Atocha from Uyuni, and in 1914 a spur of the Arica- La Paz Railway was built in to the copper mining town of Corocoro by the Bolivian Government. Work was first begun on the Yungas Railway in 1915, and the first section to the divide was opened to traffic five years later. Two short private lines, operated by mining interests, have been built. One of these connects Uyuni with the mines of Huanchaca-Pulacayo, a distance of 24 miles, and the other, which leaves the Bolivia Railway at Machacamarca and was intended to serve the rich tin-mining district of Uncia, is nearing completion. Before the opening of the branch from Ororu to Cochabamba two narrow-gauge lines had been built out of Cochabamba to near-by towns by the Empresa Luz y Fuerza Electrica de Cochabamba. PROBLEMS OF RAILWAY CONSTRUCTION. The topography of the country presents very serious obstacles to railway building in Bolivia. Not only was it necessary to overcome a difference in altitude amounting to about 14,000 feet in order to reach the plateau from the coast, but the mountainous character of most of the "altiplano" makes railway construction in that region difficult and expensive. The Guaqui-La Paz Railway and the main line of the Bolivia Railway are exceptions, since for most of their length their tracks were laid across the "meseta" or table-land, which extends with few breaks from below Uyuni north to Lake Titicaca, The Yungas Railway, the Potosi and Cochabamba branches of the Bolivia Railway, and the line now building from Potosi into Sucre illustrate the problems faced by engineers in routing and build- ing railways in Bolivia. Climate' is another material factor that influences the construction of railways, particularly in the "montana" region to the east of the Cordillera Real. The excessive rains that fall in this zone of semi- tropical valleys may not only force the suspension of work for weeks at a time, but make the problems of roadbed construction particu- larly difficult. Washouts and slides are very frequent in this moun- tainous country, and since railway routes follow the narrow valleys of rivers for most of their way, the protection of the track against floods often demands the construction of elaborate defensive works, as on the Cochabamba line. 00 BOLIVIA: A COMMERCIAL AN'h [NDUSTRIAL HANDBOOK. The supply of labor for large enterprises is small in Bolivia, espe- cially as the mines take increasing numbers of men. It is usually difficull to secure enough laborers for railway construction and as difficult to hold them after they are engaged. The importation of foreign labor for this class of work is of very doubtful advisability, .1- onrj the Bolivian or Peruvian Indian or "cholo" is by nature adapted to hard manual labor at this altitude. Tin- railway legislation of Bolivia has been collected in a hook entitled " Legislaci6n Ferroviaria." Railway construction is largely governed l>y the general law of October 3, 1910. Meter gauge (meter 3.28 feet) is prescribed for all lines built within the country. Concessions are usually granted for a term of 99 years, after which the lines revert to the State. The Government may expropriate a line at any time on payment of the actual valuation plus 25 per cent. A "privilege" /one of .10 kilometers (31 miles) is granted on either side of the right of way. in which no competing line may he built. Other privileges granted are the right to expropriate land under a law of eminent domain, the right to use public land and any timber or -lone that may he on it, exemption from taxation for a specified time and from payment of import duties on materials used, and exemption from military service for employees unless in case of a war with a foreign powef. Guaranties of interest on investment are generally fixed by the Government at a maximum of 5 per cent on the capital, advances to be reimbursed to the Government out of net earnings in excess of 5 per cent. Tin' railway company may relinquish its right to the guaranty at any time upon reimbursement of the total advances made to it by tin 1 Government. Land in alter- nate lots along the right of way may be granted to the constructing company in lieu of a money guaranty, when such land is available. LIST OF RAILWAYS. The mileage of railways constructed, under construction, and pro- jected at the beginning of L920 was ;k Follows: Antofagasta & Bolivia Railway Co.: Bolh Lai) section of main lin<> Viacha I. a. I'az El Kenko branch r.nli\ ia Railway < !o. : \ iacha-< iruio Rio Mulato-Potofi < )ruf<>-< Jochabamba 205 mi-Atocha < !fa. Huanchaca de Bolivia: I j uni-Pulacayo Empresa Luz y Fuei a Electrica Cochabamba: Cochabamba-Vinto Cochabamba Arani arril de Arica a I a Paz Arii a Alto La I 'a. Bolivian section . Peruvian Corporation (Ltd : Guaqui la Pa Simon I PatifSo: Machacamarca-1 ncia Corocoro branch of Arica-La Paz Railwaj (property of Bolivian »">>. emmenl Tan ■;■" :ni il l'..i'. i Su< re I property "i Bolivian Government) Ferrocarril a Ytmgasi property of noli vian Government) Total buill Kilometers. Miles. 486 302 !>•» IS ^ 5 •JUL' L26 17! IDS I'd. - . ll'T W 56 38 24 IS II 60 37 145 '.iv ill i;i) :;: s r. 50 ::i II 16 1. in;. TRANSPORTATION AND COMMUNICATIONS. 61 UNDER CONSTRUCTION OR PROJECTED. Simon I. Patiiio: Unconstracted section of Machacamarca-Uncia Kilometers. Miles, line « 27 Stale lines: La Qniaca-Tupiza 100 62 Potosi-Sucre 128 80 Pa Paz-Yungas (estimated 1 100 62 Atocha-Tupiza 101 65 Total under construction or projected -171) 296 Total of all lines 2, 261 1, 405 LINES OF ANTOFAGASTA & BOLIVIA RAILWAY CO. The most important system in Bolivia is that of the Bolivia Rail- way Co., now under the control of the Antofagasta & Bolivia Railway ( Jo. The lines of the Bolivia Railway Co. were leased in 1908 by the Antofagasta & Bolivia Co., so they arc now operated as a single sys- tem. For administrative purposes the combined lines are divided into a Bolivian and a Chilean section. The offices of the Bolivian section are in La Paz and of the Chilean section at Antofagasta. The home offices of the Antofagasta & Bolivia Co. are located at 1 Broad Street Place, Finbury Circus, E. C. 2, London. The offices of the Bo- livia Railway Co. are in New York. The traffic department of the Bolivian section is located at Oruro. The Bolivia Railway Co. was organized as a result of the national law of November 27, 1906, which represented the policy of the Monies administration of linking up the plateau cities by means of railways. At that time the Bolivian Government had at its disposal &9, 720,000, which had been paid by Brazil in accordance with the provisions of the t reaty of Petropolis*. The Government also had at its disposal additional funds, which made a very considerable total for the building of railways, for which President Monies destined these resources. In May, 1906, a contract was signed with the New York banking house of Speyer & Co. and the National City Bank of New York, providing for the construction and operation of a line of railways on the plateau. The two banking houses were to promote the estab- lishment of a separate company, which was to have charge of the work and its subsequent management in trust. The company organ- ized for this purpose was the Bolivia Railway Co., which was char- tered in New York. According to the contract made between the Bolivian Government and the Bolivia Railway Co., the cost of the lines projected was cal- culated at the net figure of $26,730,000 United States gold, to cover which the two following issues of bonds were made : (a) First mortgage bonds, $18,225,000, which the lessees bound themselves to take at 5 per cent interest, which was guaranteed by the Bolivian Republic for 25 years. These bonds were issued at the rate of 80 per cent, vielding a net sum of $14,580,000. (b) Second mortgage bonds, $12,150,000, which the Bolivian Gov- ernment took at par, with interest up to 5 per cent allowable with the net rental of the lines after payment of the service on the first mort- gage bonds, and redeemable within 25 years. The contract held by the Bolivia Railway Co. involved the expendi- ture of about $31,000,000, or about $4,000",000 more than the original (V2 BOLIVIA: A COMMBBOIAL AND INDUSTRIAL HANDBOOK. estimated cost. This amount the lessees invested on their own ac- count and without fiscal guaranty, in accordance with one of the pro- visions of the contract. The lines constructed by the company have a total mileage of 1 L6, divided as follows, with the cost of each section: Oruro-Viacha, L25 miles £1,063,608 ($5, 1.76, 048) Oruro-Cochabamba, 127 miles 2,747,721 (13,371,784) Rio Mulato-Potnsi, ]os mile- L,518,716 (7,390,831) I'yuni-Atochar, 56 miles 532, 154 (2, 580, 727 Total, 416 miles 5,862,199 (28,528,391) In 1908 the Bolivia Railway Co. leased its rights under the con- tract with the Bolivian Government to the Antofagasta lV. Bolivia Railway Co. for a term of 99 years, to date from January 1. 1909. > To the end of 1918 the total cost of the Bolivia Railway Co.'s lines and expenditures for studies and materials were as follows (con- versions have been made at the rate of 84.8665 to the pound sterling : Viacha-Oruro line £1, 063. 609 ($5, L76, 053 ( >ruro-( 'ochabamba line 3, 257, 219 (1 5, 85 1 Rio Mulato-Potosi line 1, 540, 378 (7, 496, 251 1 Uyuni-Atocha line 532, 230 (2, 590. 097 | Studies for La Paz-Puerto Pando line 9, 488 (46. 173 Studies for Potosi-Sucre line 193 Materials on band and in transit, deduction of £720 being made for difference between capital and property accounts. 270,115 (1,314, 516) Total 6, 673, 232 (32, 475. 284) The issue of first and second mortgage bonds in accordance with clause 6 of the original contract amounted to £5,500,000 ($26,765,750), leaving a difference of £1,173,232 ($5,709,534). The annual service of £187,500 ($912,469) for interest on the total issue of guaranteed first-mortgage bonds — £3,750,000 ($18,249,375) at 5 per cent — was met in 1918 from the following resources: 30 per cent of tbe gross revenues of the Viacha-< >ruro line, after deducting the quota assigned for supplementary capital: Second 6 months of 1917 E21, 783 1106,007) First 6 months of L918 21,167 i L03,009) 25 per cent of the gross revenues of the Rio Mulato-Potosi line, after making a similar deduction: Second 6 months of 1917 6, 629 32, 260 First 6 months of 1918. . "'.Ill 26, 333) Contribution from the national treasury, in accordance with clause L5 of the original contract 60,000 (291 [nteresl advanced by the bankers on < rovernmenl deposits .... LI, 046 Innual quota of the Government of Chile 45, 000 (218, Sum taken from the Government deposits I<>. 46 1 (80, 122 Total 187, 500 (012. 460) The total interest paid on the first mortgage bonds to the end of Mils amounted to £1,443,892 ($7,026,700), as follows: Monthly contributions Erom the national treasury 6720 [nteresl derived from accounts currenl with the bankers: ' in capital of the second-mortgage bonds 377, 406 1 1. 836, 6 16 1 On deposit* 141,927 (690,688 27ii.ii(it» i i.:: i TRANSPORTATION AND COMMUNICATIONS. 63 Product of the rental of the following lines: Viacha-Oruro £211, 245 ($1, 028, 024) Rio Mulato-Potosi 25,997 (126,514) £237,242 ($1,154,538) Total 1, 746, 797 (8, 500, 787 ) There was deducted from this the following sums: Stamps and other postal charges borne by the bankers. . . 223 (1, 085) Amouni held in power of the bankers 302, 682 (1, 473, 002 ; 302,905 (1,474,087) Leaving a total paid on the first mortgage bonds amount- ing to 1-443, 892 (7, 026, 700) The roads controlled by the Antofagasta & Bolivia Co. in Bolivia consist of the main trunk line from the frontier at Ollague to La Paz by way of Uyuni, Oruro, and Viacha, and the Cochabamba, Potosi, and Atocha branches of the Bolivia Railway. These lines have a total length of 1,194 kilometers (742 miles) . The dates of completion of the different links in this system were as follows: Rio Mulato-Potosi 1912 Uyuni-Atocha 1913 Oruro-Cochabamba 1917 Antofagasta-Uyuni 1889 Uyuni-Oruro 1892 Oruro-Viacha 1913 Viacha-La Paz 1917 Distances between the principal points on the main line are as follows : Kilometers. Miles. Antofagasta-Uyuni 612 380 Ollague-Uyuni 175 109 Uyuni-Oruro 313 1° 8 Oruro-La Paz 237 147 Antofagasta-La Paz 1, 162 722 Viacha-La Paz 32 20 The 175 kilometers (109 miles) from Ollague to Uyuni is merely a prolongation of the Chilean section into Bolivian territory. As this section is of narrow 2.5-foot gauge, in contrast to the meter gauge of the other Bolivian lines, goods and passengers in the through traffic must be transferred at Uyuni. However, the laying of a third rail, now under way, will obviate the necessity for this transfer and enable cars to be routed through from one section to the other. The highest point between Antofagasta and La Paz is at Ascotan in Chile, a short distance from the border, where the line reaches a height of 12,979 feet. The maximum radius of curves for the entire Bolivian section of the Antofagasta & Bolivia Railway is 656 feet, and the maximum grade is 1.56 feet. Wood ties are used for 279 miles and steel for 46 miles. The rails between Ollague and Uyuni weigh 68.4 pounds to the yard, and from Uyuni to Oruro 60 pounds. There are 172 bridges and culverts, with a total length of 10,433 feet. The roadbed is kept in excellent condition, and the station buildings, though unpreten- tious, are well constructed of stone. Though there islieavy traffic on the Chilean section, which serves as outlet for the nitrate "ofic- inas," the mines of Chuquicamata and Collahuasi, and the vast borax deposits of Cebollar, there is little local business in the barren country between Ollague and Uyuni. However, at Uyuni the line receives heavy freights both from the main line to the north and from the At- 64 boiAvia: a commercial and indusi :bial eandbook. ocha branch to the south. For most of its length the course of the Uyuni-Oruro section lies across the great "meseta" or table-land, and thus roughly parallels the two main chains of the Andes, which wall in the plateau to the east and the west. The construction of this part of the road was comparatively easy, but north of Rio Mulato the line enters hillier country. The Rio Alula to-Potosi branch and the Patino line from Machacamarca to Qncia both connect with this uorth-and-south trunk road. Minerals are also loaded at Poopo and Ghallapata. The Oruro-Viacha section was built to connect La Paz and Oruro, thereby completing the unification of the national railway system. It is built for most of its length through a hilly region, though it emerges into level country before reaching Viacha. This line has a total length of 202 kilometers (126 miles), a minimum radius of curves oi 251.4 feet, and a maximum grade of 3 per cent. Wood ties are used, and the weight of rails is 55 pounds per yard. The purely local traffic on this line is comparatively small, though the development of such mining centers as that of Caracoles should greatly increase this class of business. Since September, 1917, trains from Antofagasta have entered La Paz over the company's own tracks. Formerly the only connection between the important junction point of Viacha (where the three lines from the coast converge) and La Paz was by the Guaqui line's exten- sion. The high cost of the Antofagasta & Bolivia's new terminal section— about £400,000 ($1,948,000)— was largely due to the diffi- culties of construction from the edge of the "alto" down into the city, to the terminus at the Chijini Station. Not only was this a difficult piece of railway engineering, but the entrance to La Paz over i his line, which winds down the rugged walls of the deep basin in which the capital lies, forms one of the most picturesque approaches to any city in the world. The total length of the viacha-La Paz connection is 32 kilometers (20 miles). The minimum radius (>( curves is 313.8 feet; the maximum grade is 2.67 per cent: the tics used are of steel; and the weight of rail is 60 pounds per yard. There are 73 culverts, with a total clearance of 383 feet; 5 bridge's, with a total length of 185 feet; and 2 tunnels, with a total length of 682 feet. The Bolivia Railway's Oruro-Cochabamba branch was opened to traffic in L917, and the cosl to the end of 1918 was 63,257,219 ($15,851,256), or at the rate of more than $109,000 per mile. The total length of the line is 21 1 kilometers (131 miles). The minimum radius oi curves IS 251.3 feet, and the maximum grade is 3 per cent. The lies are of wood and the rails weigh T>."> and 60 pounds to the yard. There are 17 1 bridges, with a total clearance of 4,208 feet. and ."> tunnels, with a total length of 988 feet. Aiter leaving Oruro, at an altitude of 12,122 feet, the line leads across the table-land for a short distance and 1 hen climbs to the divide of the (nest a Colorada by a 2 per cent grade. Oil the other side it descends to the valley <>{ the An pie by a remarkable piece of Line, seven tracks being laid one above another at one place where the road zigzags down the mountain to reach the level of the valley. For mosl of its course thence into the plain of Cochabamba the line follows deep and narrow river \ alleys through a rugged mountain country. This circumstance, with the attendant landslides, washouts, and encroachments ^\' the river TRANSPORTATION AND COMMUNICATIONS. 65 during the rainy season, has led to frequent interruptions of traffic, necessitating expensive repairs to the line. However, the railway company has put in some elaborate defensive works along the line to protect the track from rises of the river and from landslides, and in this way hopes shortly to normalize traffic over the line throughout the year. From the scenic standpoint the route has few equals in South America. The Potosi branch of the Bolivia Railway leaves the main line of the Antofagasta & Bolivia at the Rio Mulato junction, which lies 105 kilometers (65 miles) north of Uyuni and 441 kilometers (274 miles) south of La Paz. The total length of the branch is 174 kilo- meters (108 miles). The Condor station on this line, at the point where the railway crosses the divide of the Cordillera de los Frailes, ranks with the Tiklyo station on the Cerro de Pasco line in Peru as one of the two highest points reached by a railway in the world, being at a height of over 15,800 feet above sea level. This line was opened to traffic in 1912, and its construction cost, to the end of 1918, a total of £1,540,378 ($7,496,250). The minimum radius of curves is 251.4 feet, and the maximum grade is 3 per cent. Steel ties, weighing 46 kilos (101 pounds), are used and the rails weigh 60 pounds to the yard. Most of the road is built through very rough country, with very high embankments and deep rock cuts. The country along the line is thinly populated, the only station of importance between the two terminals being at Agua Castilla, where the product of the Porco tin mines is shipped. As a consequence, most of the business consists of through traffic between Potosi and Oruro or Potosi and Antofagasta. The Uyuni-Atocha line constitutes the finished section of the road whgse ultimate objective was Tupiza. The total length of the line, which had cost £532,230 ($2,590,097) to the end of 1918, is 90 kilometers (56 miles). The line leads out from Uyuni across the alkaline plains for a considerable distance and then enters a highly eroded country that borders the mountains of Nor Lipez. The minimum radius of curves is 291.6 feet, and the maximum grade is 3 per cent. Steel ties are used and the weight of rails is 60 pounds to the yard. Most of the freight carried comes from the mines at Chocaya, from the Aramayo-Francke mines to the east of the rail- way, and from Argentina by way of La Quiaca and Tupiza. In addition to the large amount of general freight which they carry, the lines under the management of the Antofagasta & Bolivia Co. serve as outlets for some of the richest mining districts in the country, such as those of Uncia, Llallagua, Oruro, Potosi, Cole- quechaca, Huanchaca, and Chocaya. The principal items of through freight traffic are the tin, silver, and other ores and concentrates from these mines. Practically all of the production of the Department of Potosi and much of that of Oruro is exported via Antofagasta. However, in the Department of Oruro the competition of the Arica, and to a less extent of the Mollendo, line begins to be felt. Compara- tively little through freight is carried over the section between Oruro and Viacha, though considerable merchandise imported by Arica and Mollendo is sent through by this route for distribution in Oruro, Cochabamba, and other places. 44462°— 21 5 60 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Traffic returns for all the linos in 1918 were as follow-: Items. Volume. Receipts. Bolivia Railway: Viacha-< (ruro 1 — Pa sengers 121 i. -'">■'! Baggage tons. . 284 Fxprcss do.... 1,227 Freight— Imported goods, .do.... 23.802 Exported goods. .do 12,243 Local freight do.... 42. 70s Telegrams, special trains, etc Bolivi- anos ■ t.'l. 7s( 13,123 », (09 574,216 296,312 538,405 16, 762 Total 1,913.011 Rio Mulato-Potosi— Pa sengers , Baggage tons. Express do. . . Freight Import cii goods, .do Exported goods, .do Local freight do Telegrams, special trains, etc Total. Oruro-( Jochabamba * — r i tengers Baggage tons. Express do... Freight — I mported goods, .do. . . Exported goods, .do.. . Local freight do. . . Telegrams, special trains, etc 12,672 90 291 89.587 5, H3 23.331 6,472 ins. OS.") 7,241 171,152 6,679 226,969 10, 364 634,901 72, 826 ins 546 Jin 381 22,931 360, S77 7,816 17. 128 8, 193 7,597 694,984 9,055 Total 1, 135, 950 Bolivia Railway— Continued. i yuni-Atocna— Passengers Baggage tons. Express do... Freight — Imported goods.. do... Exported goods. .do... Local freight do... Telegrams, special trains, etc Volume. 16,215 .",1 260 712 5, 852 12,322 Receipts. Bolivi- anos. 55,291 1 . 7'.'7. in. 17!* '.i. 333 82,01 1 191,827 Total. Antofagasta & Bolivia (Boli- vian section): Passengers Baggage tons. Express do... Freight- Imported goods. . . .do. . . Exported goods do. .. Local freight do. . . 220,970 (61 2, 777. 65, 868 98, 113 Total. All lines: Passengers E xeess baggage tons . Express do. . . F'reight do. . . 448,936 997 345, 567 640, 138 17,150 1,158,762 1,517,098 B36, 185 4, 255, 664 1 . 570, 977 (5, 297 216,678 6,421,132 i The receipts of litis section in litis exceeded those of the year before by about 1 10,000 bolivianos. * The average mom M > receipts in 1918 were 94,663 bolivianos, as compared with (.0,507 bolivianos in 1917, the first year of operation. The results of the operation of the Bolivian section of the An- tofagasta & Bolivia, as distinguished from the lines of the Bolivia Railway, in 1918, as compared with the previous year, are expressed below : Items Surplu 1917 1918 lncn i reasel -). Founds sterling. 318, 186 _ ,, Pounds """""■ sterling. Dollars. V mount. Percent- age, Pounds sterling. Dollars. . 101,908 112 380,524 918,951 297,953 1, B51| B20 !. 149,988 | 109, 121 19. 18 +57. 79 630, 961 ) 82, 57 1 401, 832 17,083 -229, 129 -36. 31 TRA NSPOKTATIO N AND COMMUNK AT ION S. The following table gives figures for the passenger traffic: 67 1917 1918 Percentage of in- crease. Classes. Number. Receipts. Number. Receipts. In number. * Pounds sterling. Dollars. Pounds sterling. Dollars. receipts. 38, 407 148, 932 17, 722 25, 864 86, 244 125, 867 45, 540 175, 430 22, 271 34, 203 108, 382 166, 449 18.57 17.79 25.67 32.24 Total 187, 339 43, 586 212,111 220, 970 56, 474 274, 831 17.95 29. n In 1918 the tonnage of excess baggage and parcels was 3,236, as compared with 2,710 in 1917 — an increase of 19.41 per cent. Receipts from public telegrams amounted to £370 ($1,803) in 1918, representing an increase of 59.22 per cent over the sum of £232 ($1,133) derived from this source during the preceding year. In 1918 the freight carried amounted to 203,930 tons, with receipts of £310,359 ($1,510,362), against a tonnage of 197,185 and receipts of £265,931 ($1,294,153) in 1917. The increase in tonnage, there- fore, was 3.42 per cent and in receipts 16.71 per cent. The traffic by classes is shown below : Classes. Tons. Tin 70, 606 Antimony 20 - 942 Materials for mines 16, 891 General merchandise 16, (36 Silver ! 18,946 Huanchaca ores 11 , 686 Coal 11.937 Petroleum 3, ™ Explosives and inflammables 3, 427 Sugar 1 j 996 Coca "' -?'i Live stock ' 5 ° Firewood ?, 430 Cereals and flour 5,399 Company materials 32, 889 Tons. 75,440 6,154 26,068 19, 882 17,881 10,554 13,515 4,282 3,163 1,708 3,461 1,890 5,860 6,900 36,351 Increase ( + ) or decrease ( — ). Tonnage, + 4,834 -14,788 + 9,177 + 3,146 - 1,065 - 1,132 + 1,578 4-584 -264 -288 + 1,178 + 1,134 + 3,430 + 1,501 + 3,462 Percent- age. + 6.85 - 70.61 + 54.33 + 18.80 - 5. 62 - 9.69 + 13.22 + 15.79 - 7.70 - 14.43 + 51.60 + 150.00 + 111.15 + 27.80 + 10.53 The working expenses in 1918 were £297,953 ($1,449,988), as compared with £188,832 ($918,951) in 1917— an increase of £109,121 ($531,037), or 57.79 per cent. 68 BOLIVIA; A COMMERCIAL AND INDUSTRIAL HANDBOOK. The complete traffic results of the entire Antofagasta & Bolivia system during 1918, with comparative figures for 1947, were as follows: 1917 L918 Tncreas lecrease(— ). Items. Pounds sterling. Pounds sterling. Dollars. Amount. Dollars. Pounds D „Ha„ sterling. ' c, atage. ( tperating expenses. . . NYi recei] Is — 2,239,384 1,252,060 10,897,962 6,093,150 2,370,200 1. 182,287 11,534,578 7,213,550 ■ 130,816 ■ 4-230,227 H, 120, 400 + 5.84 1-18.37 987,324 4,804,812 ^:. '.>V. 1.321,028 - 99,411 - -10. 7 To the balance of revenue account . £887,913 ($4,321,029), there was added : Balance £887, 913 1 1 1. 321,029) Interest on Bolivia Railway bonds (less tax) 60,565 (294,740) Registration ices, etc *. 220 (1,071) [nteresl on investments and miscellaneous re- ceipts 25, 007 | 121, 007 i 973,705 (4,738,537) Balance brought forward from 1917 291,803 (1,420,059) Total 1, 265, 509 (6, 158, 596) Againsl this amount the following appropriations were made: Reserve account £100, 000 (| 186, 650 Stall' benevolent fund 25,000 (121. 663) Income tax 145, 216 (706, n Bolivia Railway bonds t<> the amount of 673,584 $358,097) was added t<» ael receipts. A total of 6414,167 ui:,.,ii was available for distribution after certain expenses TRANSPORTATION AND COMMUNICATIONS. 69 had been met. The regular 5 per cent was paid on the cumulative preferred stock and preferred ordinary stock. A 2\ per cent divi- dend was paid on the deferred ordinary stock in addition to an extra dividend of 6^ per cent on the same class of stock. The decrease in receipts from traffic for 1919 was largely due to the reduction in shipments of nitrate. However, this traffic was renewed with large shipments during the early part of 1920. As for results of operation of the Bolivian section, traffic fell off on the Oruro-Viacha and Rio Mulato-Potosi lines, and remained about stationary on the Uyuni-Atocha and Oruro-Cochabamba lines. The present capital stock of the Antofagasta & Bolivia Co. consists of £2,000,000 (19,733,000) of 5 per cent cumulative preferred, £2,000,000 of preferred ordinary, and £2,161,600 ($10,519,426) of deferred ordinary, or a total of £6,161,600 ($29,985,426). At their 1920 meeting the directors voted to increase the capitalization to between £7,578,560 ($36,881,062) and £8,000,000 ($38,932,000) through the creation of £1 ($4.87) ordinary shares. ARICA-LA PAZ RAILWAY. The Arica-La Paz Railway (Ferrocarril de Arica a La Paz) is a Chilean State line and was built in accordance with the treaty of 1904 between Bolivia and Chile and a convention of June 27, 1905. By these agreements Chile bound itself to build a railway from the port of Arica to La Paz as compensation for Bolivia's definitive renunciation of Antofagasta. The line was opened to traffic in May, 1913. The contract for building the line, which was granted to Sir John Jackson & Co., called for the expenditure of £1,645,000 ($8,005,393) on the Chilean section and £1,105,000 ($5,377,483) on the Bolivian section, or a total of £2,750,000 ($13,382,876). How- ever, the total cost is said to have been near £3,000,000 ($14,600,000), because of the difficulties encountered in the Chilean section. Accord- ing to the provisions of the treaty of 1904 the Bolivian section of the railway is to become the property of the Republic of Bolivia in 1923. The line is administered from the office of the director general of the Chilean State Railways in Santiago, but the local administra- tion centers in Arica. There is also a local agent in La Paz and a commercial agent in Oruro. This is the shortest of the three lines between the coast and La Paz, the total distance being 446 kilometers (281 miles). However, as the trains enter La Paz from the "alto" over the tracks of the Antofagasta & Bolivia, the last few miles do not form a part of the Arica-La Paz system. Shortly after leaving Arica the line enters the fertile valley of the Azapa, which it follows for a considerable distance before it climbs into a mountainous defile and begins the ascent of the Cordillera Occidental or Western Range of the Andes. Between kilometer 70 at Central and kilometer 113 at Puquios there is a rise of 2,247 meters (7,370 feet) in a distance of 43 kilometers (28 miles), with a maximum gradient of 6 per cent. For 22.29 miles of this section the rack-and-cog system is used. The highest point on the line is at Jeneral Lagos, where it reaches an altitude of 13,960 feet. After climbing onto the plateau the line passes to the 70 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. left of the peak of Tacora, where important "solfataras" are worked and crosses the frontier near the Bolivian town of Charana, which is the point of departure for the projected cut-off to Oruro. In I'M I a spur was buill in from the Tarejra station of this line to the important copper-mining center of Corocoro, a distance of 8 kilometers (5 miles). This short branch is the property of the Bolivian ( rovernment. The Chilean section has a total length, exclusive of sidings, of 128.21 miles, a minimum radius of curves of 328 feet , and a maximum grade of 6 per cent. Steel ties are used for 19.5 miles. The weight of rail used is 55.7 pounds per yard. There are seven bridges, with a total clearance of 47(i feet, and 5 tunnels, with a total length of 2,398 feet. The Bolivian section has a total length of 1 15 miles without sidings, a maximum radius of curves of 328 feet, and a maximum grade of 2.04 per cent. Wood ties are used throughout, and the weight of rails is 55.7 and 61.1 pounds to the yard. There are 39 bridges, with a total clearance of 2,706 feet. The equipment of the Arica-La Paz line consists of 10 locomotives and 288 cars of all kinds. Two of the locomotives are rack engines. The most successful locomotives used on the line are the large Bakhvins which have been recently acquired. Locomotives on this line are put to a severe test as a result of the heavy grades and the extremes of temperature in the mountain region. On the writer's journey from La Paz to Arica the train was forced to change engines four times as a result of breakdowns between La Paz and Puquios. The freight cars used are of steel, with galvanized-iron roofs. A weekly passenger train is run between Arica and La Paz. This train, which carries compartment sleeping cars and a dining car. besides first and second class coaches, leaves Arica at 1 p. in. on Mondays and arrives at La Paz the next day at 2.20 p. m. The down train leaves La Paz at 4 p. m. on Thursday and reaches Arica the following day at 1 p. m. The time from Arica to La Paz is thus 22', hours and in the opposite direction 21 hours. The fare for the through trip is 66.50 Chilean pesos or 34.90 bolivianos. Because of its shortness this line is destined to be of great impor- tance to the economic development of the northern part of the Bolivian plateau. Though it is forced to compete with the Mollendo line for the traffic of this region, it has certain advantages over that line as a freight road. Both freight and passengers are carried directly into La Paz without transshipment, whereas on the Mollendo line goods are transshipped at Puno and Guaqui and on the Anto- fagasta line transshipment is necessary at Uyuni. However, the development- of the business of this line has keen greatly hindered by its lack of adequate rolling stock. As a consequence of the fre- quent congestion of traffic it has keen necessary at times to send out freighl by Mollendo or Antofagasta whose Logical outlet was l>\ Arica. This has even happened with copper from Corocoro. which bad to he shipped by Mollendo through an arrangement with the Guaqui line lor the use of its cars. One factor in causing this con- gestion has keen the rack section, where the special type of loCO- nioi ive used is able to haul hut a few cars at a time. This necessitates several trips in order to lake up an ordinary train of loaded car-. The management of this railway is also handicapped by its being TRANSPORTATION AND COMMUNICATIONS. 71 Government owned , whereas its competitors are private enterprises. However, the Chilean Government has recently ordered additional rolling stock and a serious effort is being made to improve the freight service. With sufficient cars and locomotives this line should not only control the external traffic of most of the Department of La Paz but should be able to take much more of the traffic of the Oruro and Cochabamba districts than now falls to its share. For some classes of freight its zone of attraction could also be extended into the Department of Potosi. At present Corocoro copper constitutes one of the most important items of its business. The volume of traffic on the Bolivian section during 1918 was as follows : Passengers - - 29. 802 Excess baggage and parcels metric tons. . 430 Freight: Imports do. ... 36, 599 Exports do .... 36, 219 Total 72, 818 Receipts from traffic for 1918 are not yet published. The total volume of all classes of freight for the first five years of the operation of the line were as follows: 1913, 47,000 metric tons; 1914, 72,000 tons; 1915, 97,000 tons; 1916, 105,000 tons; 1917, 216,000 tons. This includes local business on both sections of the line. In 1917, 26,323 passengers were carried. The gross receipts for the 1917 traffic were as follows: Chilean pesos. Passengers. 307, 964 Excess baggage and parcels 43, 838 Freight 2, 983, 202 Total 3, 470, 715 Though the net receipts are not made public, it is known that this line has operated at a profit, being the only one of the Chilean State railways - to have a favorable balance. GUAQUI-LA PAZ RAILWAY. The Guaqui-La Paz Railway was completed into La Paz in 1905, being the first line to bring La Paz into railway communication with the coast. It was built by the Bolivian Government for the purpose of giving the plateau region an outlet to the Pacific at Mollendo in Peru. The Southern Railway of Peru was opened as far as Arequipa in 1871 and by 1876 had reached Puno on Lake Titicaca. Previ- ously, commerce between Bolivia and the coast had been carried on by means of mules and llamas and over trails that terminated at either Arica or one of the northern Chilean ports. The construction of a railway from Lake Titicaca to La Paz was authorized by a law of October 25, 1900, during the Pando administration. The initial costs of construction were to be met from the proceeds of the alcohol monopoly and a tax on rubber in the Department of La Paz. The line was inaugurated as far as El Kenko on the heights above La Paz in October, 1903, and the final section into the city was com- pleted in November, 1905. 72 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The railway was subsequently leased to the Peruvian Corporation on consideration of receiving 40 per cenl of (he annual gross receipts. After 1910 this was to he reduced to 30 per cent for four years, but after L91 I the original percentage of rental was to go into enecl again. Meanwhile the amount of the Government's obligations to the bond- holders who had financed the construction of the line rose to £220,000 (SI, 070, 030). The Government's recognition of its inability to meet this debt led it to sell the line outright to the Peruvian Corporation. The sale, which took place on July 15, 1910, was made for the sum of £374,912 ($1,824,509). At the' same time the Guaqui mole was leased for 15 years on payment of 35 per cent of the gross receipts of traffic using this wharf. The Government retained the privilege of expropriating the railway after 10 years. The Peruvian Corporation caiiies the Guaqui-La Paz line at a value of £396,320 ($1,928,691). Between Mollendo and Puno, Bolivian traffic uses the line of the Southern Railway, which passes through Arequipa and Juliaca. At Puno goods are transshipped to the steamers of the Lake Titicaca Navigation Co., which is also a subsidiary of the Peruvian Corpora- tion. From these steamers freight is transferred at Guaqui to the cars of the Guaqui-La Pa/. Railway. The distance between La Paz and Guaqui is 97.4 kilometers (60 miles). The line passes through Yiacha, and from El Kenko, at the edge of the basin in which La Paz lies, the trains arc taken into the city below, a distance of 9.4 kilometers (5.8 mifes) by means of elec- tric locomotives. The total distance between Mollendo and La Pa/ is 529 miles. The maximum grade on the steam section is 2 per cent and on the electric section 7 per cent. The ties used are of Oregon pine. Light rails weighing 40 pounds to the yard are used on the steam section and 60-pound rails are used on the electric section. The rolling stock consists of 6 locomotives, 11 passenger coaches on the steam section and 4 on the electric section, 2 baggage coaches, and 23 freight cars. There arc 2 steam locomotives of 28 metric tons, 1 of 29 tons. 2 of 16 tons, and I switching engine of 15 tons. The total capacity of the I 1 passenger coaches is 507 persons. The general manager of this road has offices in the Challapampa Station at La Paz. The general manager of the Southern Railway of Peru is an American, whose headquarters arc at Arequipa. A biweekly passenger service is operated between La Paz and Mol- lendo. Details of this service will be given in the Appendix under the heading "Travel Notes" (see p. 256). Jn spite of fhe efforts of its management to attract traffic over this route by the reduction of freights and by offering other inducements, the Guaqui line ha- losl ground to its rivals. Though its Pacific terminal of Mollendo is farther up the coast than Arica and Anto- fagasta and so nearer the United States and Europe, it suffers, in comparison with the Arica route, from its greater length and from the necessity of t ransshipment at the lake. To obviate tin- latter difficulty it has been proposed to build a line around the lake between Puno ami Guaqui. However, the difference in gauge between the Bolivian and Peruvian sections of the system would prevent the ben- efits expected from Mich a connection unless a third rail were laid. The countrj exclusively tributary to it the /one about Lake Till- TRANSPORTATION AND COMMUNICATIONS. 73 caca — is of comparatively small commercial importance, as it con- tains no large towns and none of the great mining centers. The line must be able to draw on the region farther to the south in order to insure its successful operation. The traffic returns on the Guaqui line for the fiscal years 1917—18 and 1918-19 were as follows: 1917-1 s Pounds sterling. Gross receipts ! 56,299 273,979 Operating expenses ; 47, .599 Dollars. Pounds sterling. 51, 025 45, 589 Net receipts. 8,700 42, 338 5,436 Dollars. 248,313 221,859 The decrease of freight traffic for these two years amounted to 19,130 tons, the falling off in imports through Mollendo being 14,369 tons. In 1917-18 the number of passengers carried was 78,766, and in 1918-19 it was 59,316. During 1919 1,716 passengers were carried in the international service. During the first six months of 1920 the quantity of freight carried by the Guaqui line fell from 2,041,859 kilos in" January to 508,866 kilos in June, largely as a result of the strained relations which prevailed during that time between Bolivia and Peru. There is a keen rivalry between the three routes for the external freight traffic of Bolivia. In this competition the Arica route has rapidly gained an increasingly important position. TAREJRA-COROCORO RAILWAY. The Tarejra-Corocoro Railway, which is only about 5 miles long, is in reality a spur of the Arica-La Paz Railway. It was built by the Bolivian Government in order to give the Corocoro copper-mining district direct access to the international line to Arica. It is operated by the section of railways of the Ministry of Public Works and Industry. Its construction was authorized in 1911, and the line was opened to traffic in 1914. The line is valued at 520,296 bolivianos. The traffic returns for 1918 were as follows: Items. Volume. Receipts. Passengers 15, 596 Baggage and parcels metric tons. . I 479 Freight do. . . .1 34,434 Miscellaneous I Total. / "-'.', lanos. 11,671 2.157 9.3.10! 5,33 114,262 The gross income since its opening to traffic has been as follows: 1914, 37,033 bolivianos; 1915, 84,634 bolivianos; 1916, 100,114 bo- livianos; 1917, 128,257 bolivianos; 1918, 114,262 bolivianos. 74 BOLIVIA: \ COMMERCIAL AM> [NDUSTEIAL HANDBOOK. MACS \( A\l\l« A-I'N(IA RAILWAY. The purpose of the construction of this line was to give the mining district of Turin an outlet to the main line of the Antofagasta & Bolivia Railway. The line, which is being built by Sr. Simon Patino, the owner of the CJncia tin mines, starts from the Machacamarca station of the Antofagasta & Bolivia, and at the beginning of L920 was open to traffic to kilometer 60, with a biweekly train service each way. I) was planned to complete the road to Uncia, 44 kilometers (27 miles) farther, during 1920. This railway, which also serves the mines of Huanuni and Llallagua, is later to be prolonged to Colquechaca, Tlie traffic carried by the road during 1918 was as follows; Ttems. Volumes igeand parcels metric tons.. Freight do Total 32, ii". 722 Receipts. Bolivianos. 13.762 544, 2.>t 627,794 Traffic receipts were about 100,000 bolivianos more than during 1917. UYUNI-HUANCHACA LINE. This short line was built from Uyuni to the mines of Huanchaca- Pulacayo by the Compania Huanchaca de Bolivia, which owns these mines. The distance from Uyuni to Pulacayo is 32 kilometers (20 miles). The extension from Pulacayo to Huanchaca is about _<>.! miles long, with a tunnel 2 miles in* length. The minimum radius of curves is 360 feet and the maximum grade is 3.25 per cent. The company owns five locomotives, some old passenger coaches, and a number of freight cars. The section from Uyuni to Pulacayo cost B47,357 ($230,463). The line is used for carrying supplies to the mining camp and for taking out ores for transshipment at Uyuni to the coast. < OCHABAMBA-VINTO AND COCHABAMBA-ARANI LINKS. These two short lines, which run out of Cochabamba, are operated by a local power company, known as the Empresa Luz y Fucrza Kleetrica de Cochabamba! One of these roads leads through the Punata Valley by way of a number of important towns to Arani, a distance of 62 kilometers (38$ miles). The other, and shorter, line g by Quillacollo to Vintq. The company holds concessions for i he extension of the former line as far as Totora on the road to Santa Cruz, and for the prolongation of the Vinto line to Sipesipe. The latter line roughly parallels the Bolivia Railway's line through the same territory. The construction of these narrow-gauge lines ante- dates thai of the railway from Oruro, all the materials having been brought in by cut from the latter point. For the construction of the company's lines a loan of 6300,000 11,459,950) was contracted for in London in 1910. The annual service on this loan, which is guaranteed by the Bolivian Govern- TKANSI'OKTATION AND COM M I ' X I (A I K I N S. 75 ment, amounts to £18,000 ($87,597). At the end of 1919 the total payments on the loan had reached £85,440 ($415,794), leaving an unpaid total of £214,560 ($1,044,156), which at the legal rate of exchange then in force amounted to 2,682,000 bolivianos, as against the equivalent of 3,668,790 bolivianos owed in 1910. The total capital at present amounts to 2,515,900 bolivianos in addition to the amount of the original London loan. Part of this is invested in the so-called ''unguaranteed section" of the company's properties — that is, in lands, an electrically operated flour mill, the tramways of the city of Cochabamba, and other holdings. The largest shareholder in the company is Sr. Simon Patino, the tin-mining magnate. Sr. Patino holds nearly 30,000 shares of stock, out of a total of 50,318 shares, which represents the 2,515,900 bolivianos of capital referred to above. This was brought about by Sr. Patifio's subscribing an additional £120,000 ($583,980) to the former capital stock of the company. After Sr. Patino, the most important stockholders are the Suarez rubber interests, Gustavo Hinke & Co., and the Banco Hipotecario Nacional. During 1919 the operation of the railway lines of the compan}^ showed the following results: Items. Cochabamba-Vinto line Coehabamba-Arani line Deterioration of line and rolling stock, and fund for renewal . Net balance applied to service on London loan Total. Receipts. Bolivi- anos. 141,149 298, 129 439, 72S Expenses. Bolit i- anos. 92, 464 222, 44S 70,000 54, 366 439, 72S During the same period the profits from the other operations of the company — electric light and power, tramways, etc. — amounted to 96,344 bolivianos. The locomotives used on the Arani line are small, German, wood- burning engines. The increased difficulty of obtaining a constant suppl} r of firewood has added considerably to the cost of operation of this section, but the company is making plans for the electrifica- tion of this line. The company places the total value of its rolling stock at 505,719 bolivianos. A daily train is run between Cochabamba and Arani, which covers the distance in about four hours, or at the rate of about 9 miles an hour, including the unnecessarily long stops at each station. The first-class fare between the two points is only 3.60 bolivianos, and half that for third class. Because of the propensity of the natives for railway traveling and the low third-class fares, the passenger traffic is heavy. During 1919, 19,254 first-class, 69,988 second-class, and 342,285 third-class tickets were sold, making a total of 431,527 passengers carried, representing total fares of 213,654 bolivianos. During the same time 12,424,435 kilos of freight were carried, with •a total return of only 84,475 bolivianos. The comparath e insignifi- cance of the freight business on this line is due to the competition of the burro traffic on the good road that parallels the railway. How- ever, receipts from freight traffic almost trebled during the three 76 BOLIVIA: \ COMMERCIAL AND [NDUSTEIAL HANDBOOK. years 1917-li'l ( .i. after having remained stationary during the three previous years. The trains on the short Vinto line, which is only L8 kilometers (11 miles) long, are drawn by electric locomotives, current for which is supplied from the company's power station at Lncachaca. At this place, which is situated in a mountain canyon to the northeast of Cochabamba and well on the road that leads down into. the Yungas, I. not) horsepower is utilized. The present installation, which is of German manufacture, has a capacity of double the amount of current generated, while the water avail a hie at lncachaca could develop 4,000 horsepower. At this point a mountain stream has been canalized and led along a ridge until it falls 200 feet into the turbines at the power plant. This station not only furnishes current for the Yinto line but supplies power and light to the city of Cochabamba and operates the local tramway lines. During 1919 the total number of passengers carried on this line was 539,118, divided as follows: First class, 42,435; second class, 47. "292; and third class, 449,391. The returns from this traffic amounted to only 1:55,750 bolivianos. During the same year 2,135,- I 19 kilos of freight were carried, the receipts from freight traffic amounting to only 5,399 bolivianos. Neither freight nor passenger traffic on this line increased dming the ^ix years 1914-1919, while operating expenses increased to such an extenl that profits from operation fell from SO, 103 to 48,685 bolivianos. RAILWAYS UNDER CONSTRUCTION. YUNGAS RAILWAY. A line known as the Yungas Railway, or Ferrocarril de La Paz a Yungas, is now being constructed to connect the plateau with the Yungas region. The initial studies for this route were made by engineers of the Bolivia Railway Co. and of the Bolivia Colonization & Development Co., which was one of the interests of the famous Far- quhar Syndicate. A national law of November 17, 1914, provided for the building of an electric 1 ramway from I. a Paz to " the Provinces of the Yungas, with the view- of later prolonging the line to a naviga- ble point on the River Beni. Construction was begun in April, 1915, and the J' ist section to the summit was opened to traffic on October 'JO. 1919, work having been greatly retarded during the war by the inability to obtain materials from abroad and also by the lack of funds. The moving spirit of the enterprise has been the Bolivian engineer, Sr. Carlos Tejada Sorzano, who has had charge of tin- work of con- struction as Director General of the Slate Railways. The railway, which started with a fund of 14,000 bolivianos, cost to the ''iid of 1919 approximately 6,366,000 bolivianos, including advances made to the contractors for 1920. During 1915, 387,068 bolivianos were expended; during 1916, 396,831 bolivianos; and during 1917, 988,085 bolivianos. A series of laws placed additional resources at the disposal of the work, largely in the form of depart- mental taxes of vrarious kinds, including a tax of I boliviano per metric quintal on all foreign merchandise entering the Department of I .a Pax. The departmental budget for 1918 provided for the TRANSPORTATION AND COMMUNICATIONS. 77 raising of the following sums for the prosecution of work on the railway: . ^ Bolivianos. Tax of 1 boliviano per quintal on imports into the Department . 395, 579 Tax on exportation of copper produced in the Department- . . . 145, 088 30 per cent of profits from Government tobacco monopoly 181, 487 Income derived from operation of other State railways 49, 309 Quota of departmental tax on coca 145, 833 Interest on deposits 2 > 399 Total 919, 695 In January, 1917, a loan was placed through the New York bank- ing firm of Chandler & Co. for the sum of $2,400,000. At a rate of 90 this loan yielded $2,160,000, or 5,465,986 bolivianos. The rate of interest was placed at 6 per cent with amortization at 2 per cent, making an annual service on the bonds of $192,000, which is payable semiannually. The Equitable Trust Co. was associated with Chand- ler & Co. in the placing of the loan. An effort was made in 1920 to secure an additional loan in the United States, but negotiations were stopped by the revolution in July. In 1918 the Director General of Railways estimated the total cost of the line to Coroico at 15,280,000 bolivianos, but a commission appointed to study the project in that year put the probable cost at 20,875,000 bolivianos. The first sec- tion of 26.5 kilometers (16^ miles) cost 2,484,090 bolivianos, or at the rate of £7,643 ($37,195) to the kilometer. The director general, Sr. Tejada, declares that a maximum average cost of £8,000 ($38,900) per kilometer can be maintained as far as Pongo, which is 20 kilo- meters (12£ miles) beyond the divide, but that the cost per kilometer from that 'point to Chaco, a distance of about 26 kilometers (16 miles), will increase to between £10,000 ($48,700) and £12,000 ($58,400) per kilometer. However, this cost is lower than that of most of the Bolivia Railway Co.'s lines, notably of that between Oruro and Cochabamba. During the first half of 1920 about 250,000 bolivianos a month was being spent on the work of construction. After the line leaves the gorge of the Unduavi on its course toward the low country about the Beni, the cost of construction per kilo- meter will decrease greatly. Very few lines anywhere have presented such difficulties as does the building of this transandine railway. In the 74 kilometers (46 miles) of the Unduavi Canyon above the Puente de Chupe the line falls 3,500 meters (about 11,480 feet). Between kilometers 49 and 64, though the horizontal distance is less than 5 kilometers (3.1 miles), the distance by the route of the railway is 15 kilometers (9.3 miles), with a fall of 717 meters (3,575 feet). For one section 22 kilometers (14 miles) of railway are needed to cover a distance of 10 kilometers (6.2 miles) in the air line, and there is a drop of 1,500 meters (4,920 feet). This necessitates the use of the longest stretch of 6 per cent grade on any line in the world. Below the Quebrada, or gorge, of Anasani, which begins at about kilometer 70, the grade will be reduced to 3 per cent, while the fall of the Tamampaya Valley below the Puente de Chupe (kilometer 106) is between 1| an( i 2 per cent. Not only are the mountainsides, along which the line must be built, extremely steep, but the character of the rock formation makes the building of a solid roadbed very difficult. Much of this formation 78 BOLIVIA: A COMMERCIAL AND [NDUSTRIAL HANDBOOK. • •(insists of slate and shale, whose strata lie parallel to the slope of the mountainside, thus increasing the probability of slides. As a result, masonry bulwarks have had to be put in over long stretches to keep the roadbed from slipping. In other places the gravelly composition of the ground makes it difficult to anchor the track. Added to these difficulties is a heavy and humid growth of vegetation, which it is very hard to clear oil' and next to impossible to burn, even during the dry season. In .lime, 1920, about 3,000 workmen were engaged in the construc- tion work along the route through the Unduavi Canyon. These men were paid an average wage of 2.40 bolivianos a day. The laborers were Indians and eholos from across the divide, as t lie natives of the Yungas are too few in numbers and unfitted for this kind of work. It has been difficult to hold these workmen, as they tend to drift back to their homes on the "altiplano" or to go to other localities where higher wages are paid. By the middle of L920 rails had been laid almost to the Rinconada camp i kilometer 35), and the preparation of the roadbed was under way as far as Yerbabuenani (kilometer 62). It was then proposed to nave the rails laid as far as Pongo (kilometer 40) by the end of August, hut construction was stopped by the revolution which occurred in July and by the expatriation of the director general of railways. Foreign engineers w r ho have gone over the line declare the work to be of a very high quality, including the tunnel and bridge work so far completed. No switchbacks or cog tracks are to be used, but the excessive differences in levels are overcome by means of compensated grades. The amount of earth work is very large, the excavations amounting to 70,000 cubic meters (91,553 cubic yards) per kilometer (0.62 mile) over a considerable part of the route. The ties used are of redwood, which cost at the rate of .S3 gold apiece. The present equipment of the line includes two Shea locomotives, which were bought in 1917 at $9,000 each. Another of these engines. which have been found excellently adapted to mountain use. was ordered during 1920. In addition, the rolling stock consists of 21 cars of various kind-, which were purchased from the United States. Traffic was opened to the Chimbre or summit in October, 1919. A weekly passenger service is maintained over this section of the line, the train leaving the Chijini Station at La Pa/ at 7.30 a. m. on Thursdays, and returning the same day. The one-way first-class fare is 5.20 bolivianos, and half that for second class. Traffic is still light, as the Indians, who drive pack animals to and from La Paz over I lie Yungas road, do not break their journey at the end of the railway. Though there has been much discussion as to the exact route which the railway is to follow after leaving the gorge of the I nduavi. the town of Conpata has been lived as the immediate objective of the line The I .- 1 w of December IS. 1918, which prescribed this route, also provided (hat a branch should be extended on from Coripata to Coroico. In order to conciliate the interests of the Province of Sur Yungas, it is understood that another branch is to he built to Chulumani from the neighborhood of the Bridge of Chupe, which is the geographical center of the entire region. The ultimate objective of the line is the head of steam navigation on the River Beni, which may he placed at Rurrenabaque, about 218 miles from TRANSPORTATION AND COMMUNICATIONS. 79 La Paz. There is a choice of three routes to the Beni, according as the line follows the valley of either the Coroico, the Tamampaya, or the La Paz. Whatever route is chosen for the purpose, the work of construction on this final stage of the line will be much easier than on the initial sections into the Yungas. The following table will show the distances from La P;iz and the height above sea level of different points on the route. Places. Cumbre (Abra de Huacuyo) Rinconada Pon go Cucuta San Felipe Yerbabuenani Neque Jaliuira Chaco Puente Anasani Puente de Chupe Coripata . . ' Coroico Chulumani Rnrrenabaque Distance from La Paz. Kilo- meters. 26J 35" 46 49 62 63), 70" 78 80 106 126 161 131 350 Miles. 164 22" 29 30 39 39 1 . 43" 48 50 66 78 100 81 217 Altitude. Feet. 4,610 4,196 3, 630 3, 118 2,720 2,592 2, 070 1,895 1,750 1,118 1,674 1,725 1,730 15, 223 13,766 11,909 11,214 8,924 8,504 0,791 6,217 5,741 3, 66S 5,492 5, 659 5,676 Because of the high price of coal and the presence of large stores of water power along the route of the railway, it has been decided to electrify the line. On March 26, 1920, a contract was signed in New York between the Bolivian consul general and Maj. James P. Bradnei, U. S. A., for the making of the necessary studies. Maj. Bradner went over the route in June and reported favorably on the possibilities of electrification. There is no question as to the ade- quacy of the water supply, but the principal problems presented are those of the location and installation of the hydroelectric plant, as the porous character of much of the rock presents difficulties in the construction of a dam. The freight traffic of the Yungas section of the line will consist largely of agricultural products of the region, such as coca, coffee, and fruits, all of which are capable of production in much greater quan- tities. Other items in the freight business of the road will be min- erals and firewood. The large stores of small timber in the Yungas can be drawn on to supply the serious dearth of fuel on the plateau. In addition, this promises to be the finest scenic line in South America and one of the finest in the world. When once the region of the Beni is reached, the volume of freight should increase greatly. Though still largely virgin territory, this rich area is capable'of great develop- ment as soon as a market is found for its potential products. This traffic should consist of lumber, cattle, cotton, cacao, and tobacco. In fact, the significance of the Yungas Railway largely lies in its opening up the Beni country rather than in its position as a local road to serve the Yungas district. ATOCHA-LA QUI At' A. The bridging of the gap between the Bolivian and Argentine rail- heads at, respectively, Atocha and La Quiaca is of great importance in that this railway will furnish through connections between the two 80 BOLIVIA; A COMMERCIAL AND IXIU'STKIAL HANDBOOK. Republics and direct communications between La Paz and Buenos Aires. At present the 12.") miles which lie between Atocha and La Quiaca must still be covered by mule, though the road is passable by automobile from about the middle of May to about the middle of November. Atocha is the southern terminus of the Bolivia Kail- way's branch from Qyuni, where connections are made with the main line of the Antofagasta & Bolivia. La Quiaca is the northern ter- minus of the Argentine Central Northern, a govejrnment-owned, meter-gauge line, which makes connections at Tucuman with the Central Argentine and the Central Cordoba for Buenos Aires. It is situated on the frontier and directly opposite the Bolivian village of Villazon. Almost midway between the two points lies the town of Tupiza, which forms the dividing line between the two sections in which the railway is to be built. The existing trade route, which the line of the railway will roughly follow, leads through a region of mountains, running along the rocky bed of a river and across upland pampas or plateaus for much of the w r ay. The effecl of the railway, when completed to Atocha, will un- doubtedly be to strengthen greatly the commercial relations between Bolivia and Argentina. It will not only offer a better market to some of the products of the Provinces of Jujuy, Salta, and Tucuman, bul will furnish the means of importing manufactured goods into Bolivia from as far as Buenos Aires — a traffic that has hitherto been seriously handicapped by the difficulties of transport between the frontier and the Bolivian railhead at Atocha. It should thus enable Argentine manufacturers to compete with those of Chile, as well as with Ameri- can and European products in the same lines, unless the through freight rates should prove prohibitive. Some of the mineral pro- duction of the Lipez and Chichas Provinces to the south of I'vuni should also find an improved outlet by this route, though much of this must continue to go around by Antofagasta. Imports from Argentina into Bolivia through Villazon during L918 amounted to a total of 7,049,812 kilos (kilo=2.2046 pounds), repre- senting a value of 3,196,962 bolivianos, or 9.13 per cent of the value of all imports into Bolivia during the same year. Part of tins traffic was diverted directly to the northeast from Villazon to Tarija and llms was not carried over the road by Tupi/.a and Atocha. The principal items imported were horses, cattle, flour, sugar, and rela- tively large imports of cotton goods, cashmircs. paten; leather for shoes, and women's wearing apparel. During 1918, 6,307,448 kilos were exported through the same customhouse, to a value of 5,289,733 bolivianos, or only 2.9 per cent of the value of all Bolivian exports for that year. The principal articles of export were as follows: \n i' li Kilns. Bolivianos. (,649, 000 387,942 615,000 256,68-! 33, 120 152,023 199,397 1 . TT'.i. 982 517, 122 568,002 Won] 190, 130 MM. TRANSPORTATION AND COMMUNICATIONS. 81 As a passenger line this railway will offer another transcontinental connection between the west coast and the River Plate. Travelers landing at Mollendo or Arica, bound for Buenos Aires, would be able to cut two or three days off the time by Valparaiso and the Transan- dine Railway. In winter the saving should be even greater, as this line would always be free from snow. If an international agreement were made to that effect, through trains could be run between La Paz and Tucuman, so that passengers disembarking at Arica would only be obliged to change at these two points on their way to Buenos Aires. However, much of its advantage as a transcontinental passenger route would be nullified by the construction of the proposed line between Antofagasta and Salta, which would furnish a shorter cut- off across the Andes than would be supplied by either the Arica- Oruro-La Quiaca connection or that by Antofagasta-Uyuni-La Quiaca. By a law of December 5, 1912, the Bolivian Congress authorized the contracting of a loan for £1,000,000 to finance the building of the section of the railway between Tupiza and La Quiaca. On February . 1, 1913, the French Credit Mobilier agreed to take the loan at 90 per cent net, with interest at 5 per cent and amortization at 1 per cent. The capital and interest were to be paid in pounds sterling at the fixed exchange rate of 25.20 francs to the pound. Negotiations for the construction of the line were opened with the French firm of Vezin et Cie., and on August 23, 1915, the Congress accepted the Vezin proposals. The Vezins agreed to build the line for £900,000 ($4,379,850) and to complete it within three years. Construction was actually begun on September 20 of the same year, and 48 kilometers (30 miles) of roadbed were completed before the w^ork was suspended. Disagreement between the Government and the contracting firm had meanwhile arisen over some of the details of construction, and the contractors alleged war conditions as the reason for their inability to prosecute the work in accordance with the original program. At the time the Government agreed to the rescind- ing of tlie contract, but Vezin et Cie. demanded 3,640,874 francs (8702,689) as compensation in addition to the payments that had already been made for the work completed. Through negotiations between the French Minister in La Paz and the Minister of Public Works an agreement was arranged for the continuation of the work. The time for completion was extended two years, but on condition that the company should be fined 200,000 francs ($386,000) for each month of delay beyond this time. The first 48 kilometers (30 miles) were to be railed at once, though at that time it was difficult to obtain rails abroad or to secure their delivery. Shortly after this, news reached Bolivia of the death of M. Vezin, the head of the contracting firm, upon which efforts were begun in the Bolivian Congress to secure the nullification of the contract. The Vezin heirs demanded 1,840,756 bolivianos for the liquidation of the con- tract. The Government objected to this sum as excessive, but agreed to pay 780,000 bolivianos in case certain specific claims of the Vezins were found justifiable. It was then proposed to make a physical valuation of the work already done by the Vezin contractors as a basis for further proceedings. With this understanding the contract was formally abrogated by the Congress late in 1919. 44462°— 21 6 82 BOLIVIA: A COMMEBCIAL AND INDUSTRIAL HANDBOOK. In accordance with a law of May 12, 1920, a contract was signed on June 10 between the Bolivian Government and the (inn of Lavenas, Poli& Co. for the completion of the work left unfinished by the Yezins. This Argentine company had acted as subcontractor under the Yezin contract and was thoroughly familiar with conditions of construction on the route. At the time the Lavenas-Poli contract was made the Government had expectations of placing a loan in the United States, part of the proceeds of which was to he applied to financing this work. However, the revolution of July interfered with the Government's plans in this connection and prevented a renewal of construction. Subsequently the contract with the Argentine firm was annulled for nonfullillment. According to a report from Vice Consul Nelson R. Park, at La Paz, under date of March 12, 1921, a contract has been signed between the Bolivian Government and an American firm for the financing and construction of the railway from La Quiaca toAtocha. The Amer- ican company engages to negotiate a loan of 87,000,000 in favor of the Bolivian Government to cover the expense of construction and equipment of this railway, and to complete the road by August 1, 1925. As the work progresses, completed sections of 10 kilometers are to be turned over to the Bolivian Government. Thirty miles of the railway from the La Quiaean end are ready for the laying of the rails, and other parts of the La Quiaea-Tupiza section. 62 miles long, are also under construction. The Tupiza-Atocha section, (>U miles in length, has not yet been started. Total expenditures on the entire La Quiaca-Atocha line up to November 25, 1920, principally payments to previous contractors, have been 4,663,509 bolivianos. The Antofagasta & Bolivia Railway Go. formerly held a concession for the construction of the section from Atocha to Tupiza, which is in reality merely the continuation of the Bolivia. Railway's route from Uyuni, on which work was abandoned after Atocha was reached. However, on this company's failure to complete the road to Tupiza, the Government decided to undertake the Work on its own account. In December, 1916, the Congress authorized the raising of £1,000,000 by means of a foreign loan. Early in the following January the President issued a decree to this effect, with the provision that the Government's shares in the Banco de la X.icion. together with a mortgage on the line to be built, would be offered as guaranty. However, negotiations with American bankers fell through, and the work was deferred to a more favorable time. POTOSl si ( i.'i . The Potosi-Sucre line is being built to give the old capital of Bo- livia an outlet over the main railway system of the country. At presenl Sucre, which lies aiiont 170 kilometers to the northeast o( rotosi, i- largely isolated during part of the rainy season, as, during this time of ihe year, the regular automobile service between tin 1 two cities is suspended and traffic is limited to mules. Though this railway had been discussed {\>\- a long time, nothing definite was done until L916. In January of that year Congress asked for proposals for construction. The Government offered a c» per cenl guaranty for 20 years and offered as security for the guaranty the following resource.-: The sum of 2,03 i ."> 1 7 bolivianos TRANSPORTATION AND COMMUNICATIONS. 83 deposited in the Banco de la Nacion, with interest on this sum ; a tax of 1 boliviano on every metric quintal of foreign merchandise destined for the Departments of Chuquisaca and Potosi; and 100,000 bolivi- anos annually for 10 years, beginning in 1917. Construction was started in November, 1916, and the first locomotive reached the town of Betanzos, about 55 kilometers (34 miles) out of Potosi, on June 30, 1918. This is less than one-third of the total distance, and, moreover, the country still to be traversed is extremely rough. The most difficult feature of the work in this section is the crossing of the deep valley of the Pilcomayo. The slow progress made on the line has been due, not only to the difficult nature of the country traversed, but also to the lack of funds. Resort has been had to special taxes and to both internal and foreign loans, but none of these have yielded the amounts expected. To June 30, 1918, the Government had turned over 3,950,000 bolivianos for use on the line, or about 150,000 bolivianos in excess of the total yield of all the resources devoted to the work. In 1918 the following special funds were collected: Bolivianos. Tax of 1 boliviano per metric quintal on foreign merchandise in- troduced into the Departments of Potosi and Chuquisaca 287, 296 Tax of 20 per cent on importation of foreign liquors 21, 456 Revenue derived from the tobacco monopoly 181, 486 Tax on sale of ' ' aji " in Department of Chuquisaca 9, 657 Revenues appropriated from the treasury of Potosi 55, 720 Patents on oil lands 58, 210 Interest on deposits 583 Total 614, 408 A law of October 5, 1918, provided for the raising of a £1,000,000 loan for the work, but the Government was unable to place the loan abroad. Efforts at an internal loan failed, but three banks agreed to advance the Government 1,950,000 bolivianos to carry on the work. Meanwhile, the special revenues enumerated above are being collected, though their annual yield fluctuates considerably and their aggregate is not sufficient to give a vigorous impulse to the work. Early in 1920 a semiweekly passenger service was opened between Potosi and Betanzos, but freight traffic has not yet been initiated. Although the line when completed will be of great advantage to the city of Sucre and its tributary country, it is highly doubtful whether there will be sufficient traffic for many years to pay a return on the large investment necessary for its completion. PROJECTED RAILWAYS. COCHABAMBA-SANTA CRUZ. A line to connect Santa Cruz with the plateau is one of the most imperative railway needs of Bolivia. This need is not only economic, but political, for such a line would not only give the needed impulse to the development of the fertile but now almost stagnant region of Santa Cruz, but would link that isolated portion of Bolivia with the rest of the Republic— a measure that might be necessary to insure the territorial integrity of the nation. At present communications between the two parts of the country are limited to long mule trails through the intervening mountains. The total distance between 84 BOLIVIA: A COMMERCIAL AM> [NDUSTBIAL HANDBOOK. Cochabamba and Santa Cruz by the Totora-Samaipata trail is about 269 miles, which it requires nearly two weeks to cover on muleback. The narrow-gauge railway of the Empresa Luz y Fuerza follows this road for more than 60 kilometers (32 miles) out of Cochabamba, or as far as Arani. Thence to Totora, 90 kilometers (49 miles) farther, the road can he used by automobiles during part of the dry season. Beyond Totora the road leads through extremely ru^'d country until it reaches the plains in which Santa Cruz lies, some of the ranges cutting transversely across the route followed by the road. Three different routes have been suggested from Cochabamba, though in each of these there are many variations of detail. Also, there are local interests that favor Sucre as the terminal for a line to Santa Cruz, though the burden of disinterested opinion is in favor of Cochabamba. The route generally proposed is that which would follow approximately the present mule trail by Totora and Pampa- grande. A second route would strike northeastward across the mountains from Cochabamba to the low country about the Cbimore, whence it would follow the base of the foothills of the Andes around by Buenavista to Santa Cruz. Such a line would give Cochabamba connections with both the Beni and Santa Cruz regions. It would, however, necessitate a large amount of bridge building, and the maintenance of tin- line in the rainy mon tafia region would he diffi- cult and costly. The third alternative would be a line by the valley of the Rio Grande. The railway cither would enter the valley direct ly at Capinota, on the line between Oruro and Cochabamba, or would climb over into the valley of the Rio Mizque from some point in the Punata Valley and continue thence to the junction of the Mizque with the Rio' Grande. This route would offer a natural and easy gradient all the way to Santa Cruz, but over against this advantage there must be set the length of the route, due to the long detour of the Rio Grande to the south, and the probability of slides and wash- outs on -a line which w^ould have to be built on a ledge in a deep river valley. The cost of building the road by any of the suggested routes would he great. An American engineer, who made a thorough reconnais- sance of the Totora route early in 1920, estimated the probable cos1 by that route at between $40,000,000 and $50,000,000, with the like- lihood that the cost would he nearer the latter than the former figure. Either figure would place the cost per mile at more than $100,000. The construction of such a line has long been under consideration in spite of the general realization of the heavy cost. The Government began to set aside the income from certain revenues in 1916 to he devoted to the cost of financing its construction. To the end of L918 the special sources of income devoted to the work produced the follow- in- sums: L916, 55,537 bolivianos; L917, 320,870 bolivianos; L918, 242,789 bolivianos; total, ill'. hint', bolivianos. In addition to this sum, L31,047 bolivianos raised from taxes on the introduction oi foreign merchandise into the Department of Santa Cruz and on alcohol and hran.lv were sel apart for this purpose, making an aggregate of 750,243 bolivianos. At the figure given above tins would provide lor the const rnctoin of less than .'! miles of line. A national law of December 3, 1917, authorized the construction of a line to connect the two cities, and a presidential decree of Decern- TRANSPORTATION AND COMMUNICATIONS. 85 her 28 reconfirmed the earlier laws which destined the following resources to a fund for such a railway : The sum forfeited by a former railway concessionaire for failure To carry out the terms of his concession, amounting to 125,000 bolivianos. Tax of 1 boliviano per metric quintal of foreign merchandise destined to consump- tion in the Department of Cochabamba, as provided by law of October 19, 1916. Same for Department of Santa ( ruz, as provided by law of November 24, 1915. The product to be derived from the consolidation of rubber lands in the Depart- ments of Cochabamba, Santa Cruz, and El Beni, in accordance with a law of November 8, 1917. Tax on State lands acquired by individuals, as fixed bylaw of November 8, 1917, and the proceeds of any subsequent taxes of the same character. The Government has shown no disposition to put a tax on land for the purpose of raising money for the building- of this or any other railway. To carry out an enterprise of this magnitude a foreign loan would have to be raised on a scale far in excess of all such loans hitherto contracted by the Bolivian Government. The traffic that would be carried by a line from Santa Cruz would include sugar, cotton, tobacco, cattle, hogs, hides, hay, lumber, and, in all probability, petroleum. COCHABAMBA-KL BENI. Another long-standing railway project is that for linking up the city of Cochabamba with the plains country of the Beni region. At present communications between these two districts are furnished by the mule trail over the Cordillera Oriental to Todos Santos on the Chimore and the launches from the Mamore which ply up the Chimore to that point. Several years ago a concession was granted to Sr. Simon Patino for the construction of a railway line to connect the plateau at Cochabamba with some point in the upper Mamore Basin. There has been much lack of agreement as to the route to be followed. One route would terminate at the junction of the Chimore and the Ichilo, while an alternative route would follow the Rio Isoboro, along which the concessionaire has vast holdings of land, to a point where the river is navigable for steamers. Construction by either route would entail an enormous outlay of money, as railway building in both the mountain region and the lowlands, which are inundated for several months in the year, would be extremely difficult and costly. Sr. Patino's concession, after several previous extensions, was renewed for another six months early in 1920, but the chances are small that work will be undertaken under this concession. A railway to the Beni would furnish a much-needed connection between the highland region of Cochabamba and the rich but undeveloped plains country to the northeast, which now finds its most practicable outlet through the Amazon, but the problem of financing such a line constitutes a most serious obstacle to its construction. SANTA CRUZ-PARAGUAY RIVER. There have been several projects for giving the Santa Cruz region a railway outlet to the Paraguay River. Efforts were made in the eighties by Miguel Suarez Arana, the founder of the Empresa Nacional de Bolivia en el Paraguay, to run a cart road to Puerto Pacheco, but the scheme was frustrated by the occupation of that excellent river port by the Paraguayans, who still hold it. In 1889 the English firm 86 BOLIVIA: A COMMERCIAL \\l> [NDUSTRIAL HANDBOOK. of Peny, Cutbill, De Lungo & Co. proposed to the Bolivian Govern- ment to build a railway from Puerto Pacheco to Sucre, and another from the Laguna de Gaiba into the [tenez country, but nothing came of these proposals, hi !!)()() a Belgian company, known as L'Africaine, presented proposals for a Line from Bahia Negra, on which Puerto Pacheco is located, to Santa Cruz. The cost was to be ahout $12,000,000 and the proposals included an ambitious scheme for the development of eastern Bolivia. The concession granted to tins company expired in 1914, similar proposals having been made in the meantime by Italo-Argentine interests under the name of the Sindicato Fomento del Oriente Boliviano. Proposals were also made by the Bolivian Development & Colonization Co., a branch of the Farquhar Syndicate, for a railway from the interior of Bolivia to Puerto Suarez or Bahia Negra, and these were accepted by the Bolivian Government in August, 1911. However, this concession, which also comprehended a grant of 1,000 square leagues of State lands, has expired, and there is at present no concession in the field. However, certain Brazilian interests made overtures to the Bolivian Government in 1919 for the prolongation of the Northwestern Rail- way of Brazil from Porto Esperanca, its present terminus, by way of Corumba and Puerto Suarez to Santa Cruz. Construction of a line across eastern Bolivia should be comparatively easy, as grades would be negligible and in no part would there be required cuts or (ills more than 5 meters (16 feet) in depth. The completion of lines between the Paraguay River and Santa Cruz and between Santa Cruz and Cochabamba, a total distance of about sot) miles, would supply the necessary links for the establishment of a transcontinental line from Santos' to Arica. In lieu of the completion of the latter line the building of a road from the Paraguay into Santa Cruz would offer an outlet to the entire Santa Cruz region, whose great potential resources must lie fallow until some such outlet is made available. SANTA CR1 /- ARGENTINA. There have also been several projects for a railway line to connect Santa Cruz, via Yacuiba, with the Argentine system of lines. In November. 1911, a concession was granted to a British linn to build such a line, to be known as the Eastern Railway of Bolivia, but this scheme shared in the general collapse of most of the vast designs of the Farquhar Syndicate, which took over the project. At present a project is on foot for the building of a railway from Sucre to the lower Pilcomayo, with an outlet to the Paraguay River at Formosa over the Argentine State Railway, which is being built northwest to Embarcacion. Embarcacion is the present railhead iov the Central Northern's branch from Perico and is also the southern terminus ot the long road from Santa Cruz in Bolivia. The new project is con- nected with the plans of tie- WiUiam Braden interests (Argentine- Bolivian Exploration & Development Co.) for the development oj the oil fields m the Lagunillas district east of Sucre. The proposed concession also provide- for a branch from Lagunillas north to Santa Cruz. i.i LYARAMl tUN-RIBER M n. A law of December I, 19] I. -ranted to the Madeira-Mamore Kail- way Co., in accordance with the terms of the treaty of Petropolis ol L903, a contract for the building of a line from ( iuavara menu to TRANSPORTATION AND COMMUNICATIONS. 87 Riberalta. The construction of this line would amount to the ex- tension of the Madeira-Mamore Railway across the Mamore and into Bolivian territory as far as Riberalta at the forks of the Beni and the Madre de Dios. The total distance between these two points is about 186 miles. Some work was done by the concessionaires in surveying this route and in preparing the right of way, but the project was abandoned several years ago. Largely for political reasons, the Bolivian Government has shown little interest in the completion of this line. LA QUIACA-TARIJA . The construction of a railway from La Quiaca-Villazon northeast 85 miles to the isolated town of Tarija has been discussed for many years, but nothing definite has yet been done to further this project. At present the Department of Tarija is dependent for outside connec- tions on mule trails that terminate at either La Quiaca or Embarca- cion. ROADS. CONDITIONS OF ROAD BUILDING. Because of the topography and climate of the country, road build- ing in Bolivia is attended with peculiar difficulties. Most of the roads lie'" among the mountains and have the general characteristics of Andean highways. Pack animals — mules, burros, and llamas — comprise the usual means of transportation, and the roads are often only the narrow " caminos de herradura, " or pack trails, required for that kind of traffic. These roads climb the sides of steep moun- tains, cross the desolate ''puna" of the higher altitudes, wind along rocky defiles whose beds are filled during the rainy season with rushing streams, and skirt the edge of dangerous precipices. In places they are too narrow for two" laden pack trains to pass, and sometimes scarcely wide enough for one. Sometimes after heavy rains part of the trail will slip into the valley below, leaving the road hanging in space. Though mules are best adapted to travel over such roads because of their sure-foot edness, their bodies are sometimes seen at the bottom of deep canyons, where they have fallen from the road above. During the rainy months, even pack-train traffic over the mountain trails is greatly impeded, and automobile traffic is suspended over the better roads between December and May. After the end of the summer it is usually necessary to make elaborate repairs over long stretches of the mountain trails and roads, where the heavy rains have caused slides and washouts. On the comparatively level *'meseta"'or table-land the building of roads is very easy. There the pack trains are accustomed to follow the shortest line from place to place, and the paths thus worn by their hoofs generally constitute the only roads of the region. During the • dry season these roads are satisfactory for ordinary demands, but after the annual rains have set in much of the plateau is covered with a shallow layer of water, or where the roads are not entirely inundated they often become nearly impassable because of the deep mud. This condition prevails to an even greater extent in the vast plains of eastern Bolivia, where roads may be utterly parched during the dry season and be turned into bogs during the wet summer months. In the level districts of the Republic, especially in the Beni and 88 BOLIVIA: A COMMERCIAL AND INDUSTBIAL HANDBOOK. Santa Cruz, ponderous oxcarts are much used for heavy hauling, and they arc also utilized on the plateau for such purposes as the transportation of mining machinery or other heavy goods to points inaccessible by rail. Bullocks arc also much ridden in eastern Bolivia, not only because of their cheap cost, but because their Large splay hoofs are well fitted for traveling across cither sandy or muddy country. In the building of roads, picks and shovels are about the only tools used. Modern road-making machines, such as scrapers and rollers and stone crushers, have not been introduced into Bolivia. Ordinary manual labor is so cheap and the funds available so limited that it is doubtful whether much of a market could be developed for such machinery in the present state of the country. Anything ap- proaching the average outlay per mile for good roads in the United States would be utterly out of the question in a country with the limited resources and small population of Bolivia. However, in spite of the limited facilities at hand, the mountain roads are often very well built, being well drained and having a hard, smooth surface . Some very substantial stonework is used to support these roads, and even some mule trails, where they run along the sides of the moun- tains, as in the Yungas, command the admiration of the traveler. However, these roads generally lack the strong base of a macada- mized highway and so are severely damaged by the heavy summer rains. The expense of road building in Bolivia is borne by the national "prestacion vial," or road tax, and by special appropriations, either national or departmental. All males in the country between the ages of 18 and 60 are required to pay the small road tax or, in lieu of the payment of this sum, to work out the tax on the roads of the Department. In practice the system usually amounts to a corvee of the able-bodied Indians, supplemented by the quotas paid by the whites and certain of the cnolos. An example of departmental action is the law of January 14, 1919, authorizing the Department of Potosi to raise a loan of 500,000 bolivianos for roads to Tupiza and Camargo. Where the need for a particular road is especially urgent and the ordinary resources of the "prestacion vial" and the departmental treasury* are inadequate, the National Government sometimes makes an appropriation for its construction. The ad- ministration of the national system of roads is under the control of the Section of Bridges and Roads of the Ministry of "Fomento" or Public Works. The total appropriations for road building between 1901) and 1910 were as follows. 00 pej cent of these coming from the National Treasury: L906, $536,400; L907, $362,080; L908, $400,400; I'.ioo. $329,424; 1910, $190,640; L911, $236,800; L912, $103,600; L913, $129,200; 191 I. $103,600; L915, $44,800; L916, $6,000. These sums include Government subsidies to transportation companies, which supplied carl or automobile service between important centers. A few toll roads have survived in parts of the country, but these highways are gradually being acquired by the Government. During the past few years there has been a considerable increase in the mileage of roads suitable for automobile traffic, and it is the policy of the Government to continue the building of good roads as fast as the resources at its disposal permit. The most used of this rla-s of roads are included in the following list : t TRANSPORTATION AND ( 'OMIIV XU'ATIONS. 89 Length Points connected. in miles. Potosi-Sncre 106 Cochabamba-Sucre 191 Atocha-La Quiaca 125 Arani-Totora 54 Length Points connected. in miles. La Paz-Sorata 93 La Paz-Oruro 144 Oochabamba-Sacaba 9 ROADS OF DEPARTMENT OF LA PAZ. A number of roads lead out from. La Paz in various directions. To the northwest one goes by Huarina and Achacachi, on Lake Titicaca, to Sorata, whence a trail leads over the Cordillera down into the Beni. In 1920 this road was opened for motor traffic, a regular automobile service having been previously operated as far as Acha- cachi. Sorata is a pleasant town lying at an altitude of 8,888 feet and about 150 kilometers (93 miles) from La Paz. The automobile which leaves La Paz in the morning arrives at Sorata the same after- noon. This road was a favorite project of a former American min- ister who now resides in La Paz. From Achacachi a trail continues along the shore of the lake and north across the Province of Munecas and the high Andes by Pelechuco to Apolo, the capital of the Province of Caupolican. There is another very old road from La Paz west by Tiahuanaco and Guaqui and around through Peruvian territory to the peninsula and town of Copacabana, the favorite shrine of pious Bolivians. A road, now little used but formerly of considerable importance, leads southwest across the Province of Pacajes and over the divide to Tacna. Before the building of the Arica-La Paz Railway, trains of mules and llamas from Bolivia were common sights in the streets of Tacna. The road which branches off at Viacha for Corocoro ulti- mately joins this road for the coast. The old cartroad or " carretera " to Oruro goes southeast by Sicasica, paralleling for much of its way the main line of the railway. The Rio Abajo or "down-river" road follows the river valley out of La Paz and among some Indian villages that lie under the shadow of Illimani. Before it reaches Palca it is only a mountain trail, branches of which go off to Luribay or over a high pass into the Inquisivi country and down into the Yungas to Irupana near the forks of the La Paz and the Miguilla. Here these roads connect with those that come around from La Paz by the Unduavi Canyon and Chulumani. In spite of the great natural obstacles to their construction and maintenance, the Yungas roads are surprisingly good. Because of the steep slopes of the mountains, in the sides of which the roads are cut, long stretches must be rebuilt after the rainy season. These roads, which are used only by mules and burros, follow the valleys or the sides of the mountains — in places at a height of more than a thousand feet above the bottom of the valley and sometimes with a sheer drop of hundreds of feet from the side of the road. The roads are largely kept up by an association of the landowners of the district, known as the Sociedad de los Proprietaries de los Yungas. A toll charge of 10 centavos is levied on each pack animal entering or leaving the Yungas. The resources of the "prestacion vial" or road tax are also utilized for the support of the roads. The principal road of the region is that which leads from La Paz over the divide and down the valley of the Unduavi to a point where 90 BOLIVIA: A COMMERCIAL WP INDUSTRIAL HANDBOOK. it scuds off branches bo the north and south. The first of these branches goes by Coripata to Coroico, the capital of the Province of Nor Yungas, and the other loads to Chulumani, the capital of Sur Yungas. A cut-off to Coroico from the main road was closed during 1020 because it interfered with the construction work on the railv. The distance from La Paz to Coroico via Coripata is aboul 93 miles, which can ho covered by mule from the end of the railway al divide in about three days. The distance to Chulumani is about si miles, or about two and a half days by mule. From Chulumani the trail leads over two high ridges for about 12 miles to the town of Irupana, from which point there are connections, through the [n- Suisivi district, with the Bolivia Railway at Eucalyptus, or by the a Pa/. River with the city of La Paz. About 5,000 mules and burros pass over the La Paz- Yungas road every day. The road can be used for carts for about 30 miles out o\' La Paz. or to about 14 miles beyond the summit. Bids wore asked for the improvement of the road to the summit during 1020 so that it may be used for automobile traffic. Farther from La Paz the road is only a broad mule trail, with grades of 30 per cent and over for considerable distances. Rates for mules from La Paz to Chulumani vary from 12 to 20 bolivianos per mule, depending on the scarcity of pack animals and the season of the year. There is a lack of food for animals in the Yungas, and large quantities of barley are brought in from the plateau to supply the deficiency. The months of June and July are the best time of the year for visiting the Yungas. Travel during the rainy season is attended with serious inconveniences ami at times is next to impossible. During the summer of 1020 the road was completely blocked by heavy rains for several days. There are both telegraph and telephone connections between La Paz and the principal centers of the Yungas. ROADS OF DEPARTMENT OF ORURO. A series of important roads radiate from Oruro or leave the lino o( the railway for some mining district in the mountain country. An example of the latter is the cart road from Challapata to Colquechaca, which is sometimes traveled by automobiles. The old '" earrotera " between Oruro and Cochabamba has lost much of its importance since the opening of the railway between the two cities. However, considerable numbers of cattle for the Oruro market are driven over it, and there is still a large burro and mule traffic over this route. I In man labor and time are of such lit tie value in this region, and burros in particular are so cheap, that it is difficult for railway competition to affect this pack-train traffic in certain lines of freight. The road, which passes through the rich Quillacollo valley before entering Cochabamba, is kept in fairly good condition and with a relatively small amount of work could he made suitable for motor traffic. A motor cycle has reached Cochabamba over this road, hut it ha- qoI vet been traversed by an automobile. A much-traveled road Leads In the mining district of I'neia and Llallagua, the Center of the Bolivian fin-mining industry, which is accessible for motor vehicles for part of the year. Across the Province of Carangas there are also | tack trails, which fork at the town of Corque, one of them continuing on to the COast at Aiica and the other reaching the seaboard farther TRANSPORTATION AND COMMUNICATIONS. 91 to (he south at Pisagua and Iquique. However, these long roads to the coast are now little used. Another road leads around the southern, end of Lake Poopo to the "salinas" or salt marshes of Garcimendoza. ROADS OF DEPARTMENT OF COCHABAMBA. Cochahamba has probably the largest mileage of good roads of any department in Bolivia, as it has also the largest agricultural acreage and the heaviest population per square mile. According to the prefect, about 360 miles of these roads can be used for automobile traffic during a part of the year. The longest single extent of such road is that section of the road to Sucre which lies within the Depart- ment of Cochabamba. This highway leads through the thickly populated Punata Valley to its termination at Arani, which is also the terminus of the narrow-gauge railway from Cochabamba. Thence for about 60 miles its course leads through a wild mountain country, following the ridge at a height of more than 11,000 feet for much of the way. It then drops down about 3,000 feet into the Valley of Mizque, from which it crosses a barren moor country into the Aiquile Valley. From the Valley of Aiquile it climbs over the low Sierra de Catariri and follows thence a small tributary of the Rio Grande, which it crosses by a suspension bridge into the Department of Chuquisaca. From about the middle of May to about the middle of November this road is open for automobile traffic between Cocha- bamba and Sucre. This motor service is operated by the same company that maintains the automobile line between Sucre and Potosi — the Empresa de Automoviles J. Moscoso. The cars, which arelarge 10-passenger American machines, make the trip twice a week. covering the distance of some 225 miles in about 16 hours of actual traveling. The one-way fare between the two points is 60 boli- vianos. There is little through freight traffic on this road, but it forms the outlet for the Mizque and Aiquile Valleys, and to a certain extent for that of Vallegrande, besides some haciendas that lie nearer Sucre. Another road leads from Cochabamba northeast through the fine Sacaba Valley and over the mountains by Colomi down into the Yungas of Cochabamba and the lowland country to the , head of launch navigation on the Chapare at Todos Santos. For about half the year a regular automobile service is maintained between Cocha- bamba and Sacaba, a distance of about 9 miles, though the road can be used for automobiles as far as Colomi. Beyond this point it is only a bad mule trail which forms, however, the only connection between Cochabamba and the Beni region. A branch of the "valley road" by Punata leads off from Punata by Tiraque and the Rio Lope de Mendoza to Montepunco, through which there are connections across the Yungas of Arepucho with the country about the Chimore. A cart road about 25 miles long also leads from Parotani (on the line of the railway to Oruro) to Tapacari, which lies near the Kami mining district. ROADS OF DEPARTMENT OF POTOSI. The principal road of the Potosi district is that which connects the cities of Potosi and Sucre, a distance of about 171 kilometers (106 miles). This road was built by a British engineer and is one of 92 BOLIVIA: A COMMERCIAL AXU INDUSTRIAL HANDBOOK. the most remarkable pieces of highway constructioD in Bolivia. ,The most difficult part of its course is that section where the road zigzags down into the valley of the Pilcomayo and climbs to the top of the mountain range on the other side. At this point the valley is nearly 3,000 feet deep. The river is crossed here by a suspension bridge about 650 Feet long. In the entire distance between Potosi and Sucre there is scarcely a 100-yard stretch of straight road. The auto- mobile service which is maintained over this road between the middle of April and the middle of November is conducted by the Empresa de Automoviles J. Moscoso. This concern receives a subsidy from the National Government. American chauffeurs are employed for driving the large cars used. The cars cover the distance between the two places in about 9V hours. The fare charged for the trip is 60 bolivianos, and there is a high charge for baggage. When tlic cars start from the end of the railway at Betanzos, instead of leaving from Potosi, the charges are considerably less. The ordinary. means for carrying freight between the two cities is by mule, and this is also the only means of passenger travel during that part of the year when the automobile service is suspended because of the rains. A good mule will carry about 3 Spanish quintals, equiv- alent to a little over 300 pounds, and the rates charged by the "fleteros" or freighters varies from 3 to 9 bolivianos per quintal, depending on the character of the merchandise, the scarcity of animals, and the supply of forage for the mules. The normal rate is about 5 bolivianos per quintal. The pack trains make the trip from Potosi to Sucre in four or five days. For bulky goods, which can not be carried by mule, oxcarts are used. Other roads, used by mules, lead northwest to Challapata on the main line of the railway, and south by Cotagaita to Tupiza. Traffic has greatly declined on the latter road, over which ores from Potosi were formerly sent into Argentina. Trails branch off from this road across the mountains into the Camargo district of the Province of Cinti and down into the Tarija country, to the southeast. The road from Uyuni southeast to the Argentine frontier lias been mentioned in connection with the proposed railway connection between Atocha and La Quiaca, which are the terminals of most of the traffic over most of this route, since Atocha constitutes the present railhead of the main Bolivian system. Atocha is a squalid village of about 250 inhabitants, with a post-office and a telegraph office, where messages are relayed to Argentina from the north. There are two small "hotels," where very poor accommodations are provided for travelers who are unfortunate enough to miss connections with the trains or automobiles or who travel this way by mule in the rainy '>!). Tupiza, which serves as a halfway station on tin 1 road, is a place of about 1,500 people, situated in a well-cult i vated valley at an altitude of about 3,000 meters (9,850 feet). Villazon, the actual southern terminal of the road, is a small village 1 separated by a creek from the Argentine town of Pa Quiaca. Its commercial importance is still largely limited to the presence of the Bolivian customhouse at this point. La Quiaca is situated in the Argentine Province of duply, about 155 miles north of the citj of that name. It lies at an altitude of 3,442 meters (11,293 feet). The population is between 2,000 and 2,500. TRANSPORTATION AND COMMUNICATIONS. 93 There is a large mule traffic over this road, though both llamas and oxcarts are used for hauling freight. Mules, which can be hired from " arrieros" at either end of the line, make the trip in four to five days. For passengers the rate per mule for the trip is between 35 and 40 bolivianos. Freight pays at the rate of 10 centavos per kilo, though the rate may vary according to the state of the road and the abundance of forage for the animals." During the height of the rainy season travel is very difficult, even by mule. From about the middle of May to about the middle of November a regular automobile service is maintained for the transportation of passengers. The company that operates this service owns 10 cars, most of them of the Mercedes (German) type, with a total capacity of about 60 passengers. The fare for the trip is 70 bolivianos, and the charge for excess baggage above the very small maximum allowed each passenger is 1.75 boli- vianos per 5 kilos. The schedule for this service is given in the Appendix under the heading "Travel Notes." ROADS OF DEPARTMENT OF CHUQUISACA. The roads from Potosi and Cochabamba have already been de- scribed. The latter road, after leaving Sucre, descends to the valley of the Rio Chico, which is followed for about 35 miles, crossing its dry bed during the winter season, when the road is open, more than a hundred times. After passing the confluence of the Rio Chico with the Rio Grande the road enters the Department of Cochabamba, through which its course has been described. A road leads east from Sucre by Tarabuco and Padill to the region of Lagunillas, which is known in Sucre as " the frontier." This road can be used by automo- biles as far as Tarabuco and is a fair highway as far as Padilla, but beyond this point it is only a bad mule trail. This road is used for sending merchandise from Sucre to the smaller towns to the east and for bringing tobacco and alcohol into Sucre. ROADS BETWEEN THE PLATEAU AND THE PLAINS COUNTRY. One of the most important problems of the Bolivian Government has been the closer binding of the remote eastern part of the Republic with the plateau by means of improved transportation routes. The projects for the extension of the Yungas Railway to the Beni and for a railway to Santa Cruz have already been described. The problem of building roads between the two regions is made all the more difficult, not only by the great distances which must be trav- ersed, but by the difference in altitude between the two sections of the country, which amounts to 10,000 to 14,000 feet. At present there are a number of routes from the "altiplano" to the plains of the Beni and Mamore basins, which require from 10 days to 2 months to cover. From La Paz the most traveled route is that by Sorata and Mapiri. For part of the year the stage from La Paz to Sorata can be made by automobile. From Sorata there is a four-day mule journey to Mapiri, which lies about 1,500 feet above sea level. At Mapiri it is necessary to take a canoe, paddled by Indians, in which one travels as far as Rurrenabaque on the Beni. This stage of the journey is made in 5 to 7 days, largely depending on the quantity of water in 94 BOLIVIA: A COMMERCIAL AND [NDUSTBIAL HANDBOOK. the rivers. Rurrenabaque is the head of steam navigation on the Bcni. and the distance thence to Riberalta, amounting to about 7" * '. : i kilometers (171 miles), is covered by launch in about 6 days. There are thus about 17 days of actual traveling between La Pafc am! Rurrenabaque. Sometimes it is necessary to go around by land from Rurrenabaque to Puerto Salinas, in case the launch is not able to get over the Altamirani Pass between these two points, which lie about 22 kilometers (14 miles) apart. The different stages by this route are as follows: ICilometors. Miles. La Paz-Sorata; automobile (or mule). 150 93 Sorata-Mapiri; mule 160 99 Mapiri-Rurrenabaque; canoe 437 272 Rurrenabaque- Riberall a: laanch 763 171 1,510 938 Another route is by way of Lake Titicaca and the Madre de Dios, part of the journey being across Peruvian territory. The stages by this route are: La Paz-Guaqui; rail, Guaqui-La Paz Railway. Guaqui-Puno; lake steamer. Puno-Tirapata; rail, Southern Railway of Peru. Tirapata-< fandamo; male. Oandamo-Puerto Maldonado; canoe, Tambopata River. Puerto Maklonado-Riberalta; launch, Madre de Dios River. The journey from La Paz to Tirapata, which is 72 miles from Puno, requires about a day. From Tirapata to the Tambopata is about 6 days by mule. However, there are 200 kilometers (125 miles) of good mountain road from Tirapata to the Inca Gold Mining Co.'s properties, and this is regularly traveled by automobile. The trip from Candamo to Puerto Maldonado on the Madre de Dios requires about 6 days by canoe and the descent of the Madre de Dios about seven days "by launch, or a total of about 20 days of actual traveling. There are also two or three routes which lead from La Paz through the Yungas into the Beni basin. One leads by the Coroico and Carauavi Rivers, and another by the Miguilla and Bopi. At Puerto Pando these routes converge with that from La Paz by Sorata- Mapiri. Canoes ascend the Miguilla to a short way below Irupana in South Yungas, which lies about 175 kilometers (110 miles) from La Paz. The 150 kilometers (93 miles) between the end of the Yungas Railway and this point must be covered by mule. From Cochabamba the most direct route into the Beni country is by way of the Chapare. The successive stages of this road are as follows: Kilometers. Mill Cochabamba-Sacaba; automobile or mule L0 6 Sacaba-Santa Rosa; mule 243 l"'i Santa Rosa-Trinidad; launch 172 in: 425 264 After Leaving the Valley of Cochabamba this road leads through a country of mountains ami dense forests, where both the building and the maintenance of roads are extremely difficult and costly . not only because of the physical character of ihe region, bill also on account of the devastating work of the torrential rains of the wet season. Tin- ni. id has been a notoriously bad one, the trail in some places TRANSPORTATION AND COMMUNICATIONS. 95 being scarcely wide enough for a single laden mule to pass, as at the dangerous Sal-si-puedes Pass. However, the road is being radically improved by a batallion of sappers, under the command of an army officer of long experience in tropical Bolivia. Not only is the route of the old trail being modified, but the road is being extended beyond Todos Santos across the Mojos plains to Trinidad, the capital of the Department of El Beni. Though the road will be made more service- able for mule traffic, parts of it must still remain impassable during the height of the rainy season. The mule trains from Cochabamba with cargo for the Beni now unload their freight at Santa Rosa or at Todos Santos, which lies about 20 miles farther down the Chapare. Here it is transferred to the launches owned by Barber & Co., or during times of low water to long canoes and "batelones," which are the typical river craft of the Beni region. The distance from Trini- dad to Riberalta is about 700 kilometers (435 miles), which is covered by launch as far as Guayaramerin, and thence overland to Riberalta by mule. A second road leads from Cochabamba by way of Totora and the Chimore to Trinidad, a total distance of about 564 kilometers (350 miles). The long road from Cochabamba to Santa Cruz leaves the Punata Valley at Arani, and thence continues eastward by Totora, Chilon, and Pampagrande through a rugged mountain country, until it enters the vast plains of eastern " Bolivia a few leagues outside of Santa Cruz. Some of the roughest country traversed lies among the last Andean ranges in the vicinity of Samaipata. There are many precipitous climbs and descents, and traveling is very difficult during the rainy season, when the trail is muddy and slippery and the streams are full. Though the road begins at Cochabamba, there is a railway line as far as Arani, and from this point to Totora there is a regular automobile service for part of the year. Beyond Totora the road is passable only for mules, which can cover the remainder of the journey in 8 to 10 days or the entire trip in about two weeks. Mules can be hired or bought at Punata or other places in the neigh- boring valley and muleteers engaged for the journey. Rates on freigrit to Santa Cruz depend largely on the scarcity of pack animals and the time of year, charges being higher during the rainy season, when parts of the road are in bad condition and traveling is slower. Rates vary between 45 and 60 bolivianos per mule for the trip, each mule carrying between 2 and 3 quintals, or from about 200 to 300 pounds. For burros the rates are somewhat less, taking into account their much smaller carrying capacity. The total length of the road is about 433 kilometers (269 miles). As it is the principal outlet for the city of Santa Cruz, a place of some 20,000 people, and for the sur- rounding district, there is a great deal of traffic over this road through- out the year. General merchandise is carried in one direction, and in the other hides and alcohol are the principal commodities carried. From the town of Aiquile a mule trail branches off to the east from the Cochabamba-Sucre road to Santa Cruz by way of Vallegrande, but there is comparatively little through travel over this road. LOCAL ROADS OF EASTERN BOLIVIA. In the Beni and Colonias regions roads have to be cut through the dense tropical forest for long distances, and during much of the year the plains, across which the roads are laid, are under water. Two of 96 BOLIVIA: A COMMERCIAL AND INDUSTBJAL HANDBOOK. the most important roads arc that which connect- the Mamoro and the Beni, with terminals at, respectively, Exaltacion and Rurrenaba- que, and that which connects Santa Ana with Riberalta. The former road leads slightly southwest by Santa Ana and Reyes across the plains of Mojos, and the other is used for driving cattle from the country south of the Yacuma to the rubber districts of Vaca Diez and Colonias. Another important road is that leading cast from Riberalta t<> the river at Guayaramerin, opposite the terminus of the Madeira-Mamore Railway. A road, which has been used by auto- mobiles during the dry season, has been run from Cobija on the Acre south to Porvenir, the head of navigation on the Tahuamanu, and thence to Carmen on the Madre de Dios. As this road crosses several rivers, the construction of some wooden bridges was necessary. Villa Bella and Manna, at the mouth of the Abuna. are also connected by a road, which parallels the Madeira. There are also a number of long roads in the huge Province of Itenez in the Department of El Beni. These connect San Ramon on the Machuno with the impor- tant center of Magdalena on the Itonama and thence with the Rio Itenez. These roads link up with the system of roads in the eastern part of the Department of Santa Cruz that lead by San Ignacio and San Jose de Chiquitos to Puerto Suarez on the Paraguay River. _ The Beni road from Santa Cruz goes as far north as Cuatro Ojos on the Pirai during the rainy season, and as far as Las Juntas or Puerto Velarde at the junction of the Pirai and Grande during the dry season. The distance from Santa Cruz to Cuatro Ojos is about 1 f."> kilometers (90 miles), and thence to Puerto Velarde is another 60 kilometers (30 miles). In the wet season the road is very bad in the forest of Cuatro Ojos for a stretch of several leagues, and bevond that it is a veritable bog at this time of year. Cuatro Ojos and Puerto Velarde are, respectively, the limits of launch navigation on the Mamore system during the dry and the wet season. These launches ply down the Mamore by Trinidad to the terminus of the railway at Guayaramerin. Most of the traffic over the Beni road or ' camino del Beni " is by means of mules and oxcarts. One of the most famous routes in Bolivia is the old cart road be- tween Santa Cruz and Puerto Suarez, which was laid out by Snare/. Aiana between [874 and ls7<> and which connects the interior of the Republic with the Paraguay River. This road, which is between 690 and 700 kilometers (430 and 435 miles) long, crosses the Rio Grande a few miles out of Santa Cruz and then disappears into the wilderness of the Monte Grande. For about 135 kilometer- (84 mile-) the road is a narrow "pieada" or trail cut through the forest, with lour " fortines" or pickets of soldiers at intervals of a day's ride. After leaving the Monte Grande the road skirts the marshy Lake of Concepcion and then passes thrOUffh San -lose, the capital of the Province of Chiquitos. Thence it leads in a general southeasterly direction, following the general trend of the Chiquitos hills, below Santiago and by the village of Santa Ana to Puerto Suarez on the Laguna de Caceres. From this body of water communication i- Imd by a narrow channel with the Paraguay River. During most of the' var the lagoon, though of vast extent, is too shallow to admit els' of the .haft of those plying between the River Plate and Corumba. At such tunes it is only navigable for Launches drawing TRANSPORTATION AND COMMUNICATIONS. 97 from 1 to 2 feet of water, and the channel is, moreover, often ob- structed by great floating beds of weeds known as " camelotes." It is sometimes necessary to unload goods into oxcarts at Puerto Sucre, between Corumba and Puerto Suarez, for transportation to the latter point. For at least two months of the year, when the Paraguay is at its height, steamers which reach Corumba and which draw 5 or 6 feet of water could enter the Laguna, do Caceres and discharge their cargo at Puerto Suarez. By the route used by the launches the distance between Puerto Suarez and Corumba is about 10 miles. Long stretches of the road, especially across the low country be- tween the last of the Chiquitos hills, at the Carmen ranch, and Puerto Suarez, are flooded during the rainy season and converted into almost impassable bogs. On the other hand, during the dry season, which is at its height in September and October, there is a serious scarcity of water over this section of the road. At this time travelers are dependent for water for themselves and their pack animals on the precarious supply which they may encounter in the water holes at intervals of many leagues along the road. Myriads of mosquitoes and "jejenes" — very small but extremely annoying in- sects — torment the traveler who makes this trip in the rainy season. Traffic over this road is by means of mules, oxcarts, and bullocks. The Government mail carrier, who goes over this road regularly, rides a bullock. Mules, which are usually difficult to obtain, reach Santa Cruz in about three weeks from the river when the road is in good condition. Oxcarts drawn by five or six yoke of oxen make the distance in 35 to 40 days when the road is at its best, but after the annual rains have begun they may require from 6 to 10 months for the journey, being held up for weeks at a time by swamps and swollen rivers. In September, 1919, an American motor car, with its owner, the Bolivian "delegado" of the Territory of Oriente, and driven by an American mechanic, succeeded in reaching Santa Cruz from Puerto Suarez in 4 days and 16 hours of actual traveling, with an expenditure of 152 liters (40 gallons) of gasoline. This road has lost much of its former importance as a route for the importation of foreign goods into Santa Cruz, and most of the mer- chandise sent out of Puerto Suarez is distributed among the towns of the intervening region, such as Santiago and San Jose, or diverted from the main road into the country to the north. One road branches off at San Jose and leads by San Rafael and San Ignacio across Velasco and Nuflo de Chavez into the basin of the Itenez. Another trail leads north from San Juan into the eastern part of Velasco, and a third goes around by Santo Corazon to the border at San Matias. A Belgian cattle and commercial company, the Compania Belga Sud- Americana, has projected an automobile road from the Laguna de Gaiba to Santa Cruz. This would open up. 400 kilometers (250 miles) of new road from the frontier to San Rafael in Velasco, and the road would have a total length of about 1,000 kilometers (620 miles). Though longer than the Puerto Suarez trail, the country through which it would pass is better suited for the building of good roads than is that traversed by the more southerly route. It is also declared that the steamers which ply to Corumba could reach the Laguna de Gaiba, which lies about 200 miles above. 44462°— 21 7 98 BOLIVIA: A COMMERCIAL ANIt INDUSTRIAL HANDBOOK. The road from Santa Cruz into Argentina leads south and outside the last fool hills of the Andes, to which it roughly runs parallel. After crossing the Rio Grande to the south of Santa Cruz the road forks, one branch Leading slightly southwest by Lagunillas and the other around by Charagua and across the Parapiti, later converging and crossing the Pilcomayo at Puerto Montes or San Francisco. The road reaches the border at Vacuiha and continues thence to the terminus of the Argentine Central Northern Railway at Embarcacion, a distance of ahout 879 kilometers (546 miles) from Santa Cruz. Most of the t radio over this road is by means of mules, though oxcarts are also used for some classes of merchandise. At certain times of the year there is a lack of water over some of the southern si retches of the road and at other times the road is almost impassable as a result of heavy rains. Tarija has road connections with Villazon over a bad trail. 240 kilometers (150 miles) long, with the Bermejo Valley to the south via Padcaya, and over a roundabout and little-used trail with Yacuiba. Still other trails go west over the mountains to Tupiza and northeast to Puerto Montes on the Pilcomayo. LAKE AND RIVER NAVIGATION. Lake Titicaca is the highest lake in the world navigated by steam vessels, being located at a height of 12,500 feet above the sea. It is navigated by the four steamers of the Lake Titicaca Navigation Co., a subsidiary of the Peruvian Corporation. These vessels, which are r>\' 650 to 1,000 tons burden, were carried in sections by cart and mule over the mountains to the shores of the lake and there assembled. They are comfortably equipped for passenger traffic, and with good weather the voyage across the lake between Puno and Guaqui is a very enjoyable trip. These boats form a link in the through service between La Paz and Mollendo. One steamer a week stops at several points along the lake, while the alternate steamer makes the direct all-night run between Puno and Guaqui. The tradio returns during 1917—18 and 1<)1S-1«) were as follows: Items. I ! < »peral ing expen e Not receipt L917 In .. Pounds sterling. 15,587 27.704 17 883 Dollars. 221,849 134,822 L918 L9 Pounds sterling. 11, 807 28,651 Hollars. 87,027 13,156 The decrease in freight traffic amounted to 16,718 tons; II.L'L'I passengers were carried in L917 18 and 12,262 in I'.ms m. The ordinary native craft used on 1 ,ake Titicaca consist of "balsas" or ii't'(\ canoes, which are propelled l>\ sails of the same material or by paddles. Excepl for the Rio Desaguadero, on which small steamers can run. most of the navigable streams of Bolivia are found in the northwestern pari of the Republic, when- a number of great rivers How into the TRANSPOKTATION AND COMMUNICATIONS. 99 Amazon. There are thousands of miles of navigable rivers in this reo-ion. Not only are vast rivers like the Madre dc Dios, Beni, Mamore, and Itenez navigable for much of their course, but small steamers can ascend many of their affluents for considerable dis- tances. The principal navigable rivers, with their limits of launch navigation, are as follows (tributaries are indicated by indentions): Rivers. Limits. Acre « Cobija. Abuna Santa Rosa. Orton-Tahuamami Porvenir. Madre de Dios Puerto Maldonado. Beni Rurrenabaque (Puerto Salinas). Mamore: ( Jhapare Todos Santos (Santa Rosa). Chimore Chimore. Sara Puerto Velarde (confluence of Pirai and Grande). Pirai Cuatro Ojos. Grande Higuerones. Itenez.. Matto Grosso (Brazil). Itonama San Pablo. Baures Baures. Paragua Florida. The Madre de Dios is navigable for about 1,200 kilometers (750 miles), the Beni for nearly 1,000 kilometers (620 miles), the Mamore for about 1,300 kilometers (810 miles), and the Itenez for almost 1,700 kilometers (1,060 miles). The principal obstacles to navigation in some of the Amazonian headwaters consist of bars and "palisadas" or snags. During the time of high water these streams eat away their banks on one side, with the result that large trees fall into the river and offer serious impediments to craft using the river. Light-draft snag boats, such as are used on some of our western rivers, are needed to clear the channels thus obstructed. The course of some of the rivers is also broken by dangerous "cachuelas" or rapids. The Madeira- Mamore Railway was built to avoid the series of terrible rapids of these two rivers. Before the construction of this line great numbers of boatmen were drowned and large quantities of rubber were lost from capsized "batelones" in attempts to run these rapids. Often the cargo was unloaded and portages effected around the rapids, causing a great loss of time, so that the return voyage between Riberaita and Porto Velho required several months to make. One of the most famous of these rapids is the Cachuela Esperanza in the Beni, a short distance above Villa Bella, and the Cachuela Fortaleza in the upper Abuna is another bad pass. At the Cachuela Esperanza the Beni is about 900 yards wide, and in a distance of about 300 yards the river has a fall of nearly 20 feet. The navigability of these rivers also depends largely on the season of the year. Streams that can be used for steamers of relatively large draft during the rainy season and for some time after may only be passable for rowboats during the height of the dry season. This is particularly true of the Acre, by which steamers from Manaos can reach Cobija for several months of the year, but which is only open for "batelones" during much of the dry season. The differ- ence in the amount of water between the two seasons is illustrated by conditions at Concepcion on the Beni, where the level of the river 100 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. varies from 8 feel in August to 25 feel in February. At Carmen od the Madre de Dios the Level of Water varies from 7 feel in August to a maximum of 30 feet in February, and at Porvenir on the Tahua- manu the difference Is between 3 feet and 21 feet. There are several types of boats used on these rivers, known as "balsas," "batelones, "callapos," "chalupas," "monterias," etc. The "balsa" is a kind of raft, made of a light wood known as "palode balsa." It is usually about 25 feel Long and 5 feel wide, and may have a capacity of as much as 800 pounds of cargo, exclusive of the rowei-. Balsas" are most commonly found on the Mapiri and the upper Beni. The "eallapo" is made by Lashing two or three "balsas " together, and will carry up to a ton and a half of cargo. The "cnalupa" is a dugout canoe generally used by the Guarayos and Caripunas Indians. The "batelones" are the craft most widely used for transporting rubber over long distances. These boats may be 40 or 50 feet long by 10 feet wide, and have a capacity of several tons of cargo. Most of the launches used on these rivers are of 10 to 50 tons burden. There are about 15 steamers of this class in service on the Mamore and its affluents. The tonnage of these boats varies from 10 to 120, but the majority of them are of 25 tons. Most of the launches on all these rivers are operated by the rubber companies, which not only use them to carry their rubber and merchandise but do a general freight and passenger business as common carriers. The launches are mostly wood burners and travel in a very Leisurely maimer, stopping wherever there is cargo to take on or disembark. The most important launch owners arc Suarez Hermanos (Madre de Dios, Orton, Beni, and Mamore Rivers); Braillard & Co.. (Beni, Mamore); Alfredo W. Barber & Co. (Beni, Mamore, [tenez); Zeller, Villinger & Co. (Mamore, Itenez); Madeira-Mamore Railway Co. (Mamore); Societe Picollct (Abuna); Komarez & Bruckner (Itenez); Sociedad ComerciaJ Matto Grosso y Bolivia (Itenez); and C. ML Barbery (Mamore). The Bolivian Government also operates a small fleet of launches, which not only are used for Government business but also operate as common carriers over certain stretches of the rivers. These Launches are in charge of Sr. Benjamin Bowles, the son of an American long resident in Santa Cruz. TELEGRAPHS. The internal public telegraph system of Bolivia is controlled by the State, and is under the administration of the National Depart- ment of Posts and Telegraphs (Direccidn de Correos \ Tel6grafos), a branch of the Ministry of Government or Gobierno. The national lines not only connect the principal centers of the plateau hut fur- nish communications with such distant points as Santa Cruz. Tarija, and frontier points like Yilla/.on and Yacuiba. The line from Cocha- bamba to Santa Cruz has been continued north to Cuatro Ojos at the junction of the l'irai and the Grande, and the line into Sucre readies Padilla lo the east. From this point there is a privately owned line through Lagunillas, which connects with the State line that puns north from Yacuiba through Villa Montes. Another line from La Paz connects the towns of the Yungas and has its other ter- minal at Cochabamba. All the important mining centers have tele- graphic communications, and State lines follow mosl of the railway-. TRANSPORTATION AND COMMUNICATIONS. 101 The Arica-La Paz, the Guaqui-La Paz, and the Bolivia Railway all have their own telegraph systems, which parallel their lines, and the same is true of the line operated by the Cia. Huanchaca de Bolivia. While these lines are primarily for the use of the companies which own them, the Government has the privilege of using their wires for sending official messages. Connections are had with Argentina and Chile over the State lines via, respectively, Tupiza and Uyuni. The Bolivian Government now has wireless stations at Viacha, Trinidad (El Beni), Cobija (Colonias), Riberalta (El Beni), Villa Bella (El Beni), Yacuiba, and the three "fortines." or posts of D'Or- bigny, Ballivian, and Esteros on the lower Pilcomayo. The Govern- ment's program provides for the installation of other stations at Apolo and Rurrenabaque in the upper Beni Basin, Cachuela Esperanza and Guayaramerin in the lower Beni region, Magdalena and Baures in the Itenez, Todos Santos on the Chapare, and Concepcion, San Ignacio, Santa Cruz, and Puerto Suarez in the Department of Santa Cruz. Connections may be had by the Riberalta station with the Brazilian system at Porto Velho. The central station of the Bolivian system is at Viacha near La Paz. Under certain conditions private messages may be sent by the Government wireless, but these stations are primarily intended to enable the Government to maintain commu- nications with the distant and isolated parts of the country. At present telegraphic connections between La Paz and Puerto Suarez are by way of Buenos Aires and Sao Paulo. The foreign telegraphic connections of Bolivia are over the All- America Cables (via Colon), which has acquired the old line from the coast formerly operated by the Cia. de Telegrafos a Bolivia (via Tacna), and over the West Coast of America Telegraph Co., a sub- sidiary of the Western Telegraph Co. (Ltd.). Messages sent by the former make connections with the main cable at Iquique, and those sent by the latter are routed via Guaqui, Mollendo, and thence south and across the Andes to the east-coast connections with the United States. The All-America Co.'s full rate from New York to La Paz is 50 cents a word, and half that for deferred messages. MINING. INTRODUCTORY SURVEY. The mining industry forms the basis of the economic life of Bolivia to a degree unknown in any other South American Republic. On the plateau, which is the most highly developed part of the country, it dwarfs in importance all other industries. Most of the large centers of population are situated near mining districts or, as in the ease of Oruro and Potosi, are themselves mining cities. In 1919, 87.8s per cent of the total exports of Bolivia consisted of minerals, amounting to a total value of 126, 632, (>7." bolivianos. The du1 collected from these exports amounted to 6,264,143 bolivianos. The history of mining in Bolivia dates from the beginning of the colonial regime. During that period the mines of Potosi, Oruro, and Colquechaca, among others, were worked on a s< ale that gave large returns to the producers and to the Spanish Crown. However, in the last cent my of Spanish rule there was a marked decline in mineral production that continued through the troubled period of the 'Wars of Independence and well into the last century. The turbulence of those times and the falling price of silver were unfavorable to any revival of prosperity. However, the gradual establishment of a settled order in the country, the construction of railways, and the increased profitableness of the mining of tin and other base metals, as opposed to silver, gave the needed impulse that has resulted in the prosperous development of tin- past few decades. The mineralized part of Bolivia comprises virtually the entire mountainous region of the plateau, from north of Lake Titicaca to the Argentine border. However, most of the mining development has taken place in the country to the east of the north-and-south railway from La Paz to Atocha. Though mineral resources of undoubted value exist in the Cordillera Occidental to the west of this line, the only mining district of actual importance in this region is that of Corocoro. The Department of Potosi, in which the most highly worked part of the great mineral belt of Bolivia lies, contains the minin g districts of Uncia and Llallagua (from which most of the Bolivian tin produc- tion is derived), Potosi, Porco, Colquechaca, Huanchaca, and the ^ramayo-Francke and Oploca mines in the Chichas Provinces south- east of lynni. The Department of Oruro contains those o\' Moroca- cala, Avicaya, Antequera, and the mines situated on the edge oi the cil\ of Oruro. In the Department of La Paz are the mines of Corocoro, Araca, Monte Blanco, Caracoles, and Milium. FACTORS AFFECTING THF MINING INDUSTRY. TRANSPORTATION. Foremosl among the problems with which the mining industry of Bolivia has had to contend has been that of transportation. There arc stil] some important mineral districts whose development is 102 MINING. 103 impracticable because of the distance from a railway, and this con- dition was, of course, even more common before the advent of the lines that have linked up the plateau with the coast and furnished rail connections for rich mining districts. The mines of Oruro, Potosi, Huanchaca, Corocoro, Huanuni, Poopo, Porco, and Beren- guela now have convenient railway outlets. The line from Machaca- marca will soon reach the Uncia-Llallagua district, and it is planned later to extend it to Colqnechaca. A spur of the Atocha branch of the Bolivia Railway is planned to run into the Chocaya mines, which are now only a few miles from the main line of the railroad. However, some of the other Aramayo-Francke and Oploca properties in the same region are still at a considerable distance from railway trans- portation. This is also the case with most of the mines of the Depart- ment of La Paz, especially in the high Inquisivi district, In order to solve the transportation problem of their Caracoles properties in this section, the Guggenheim interests are building an excellent automobile road from the Eucalyptus station of the Bolivia Rail- way to their mines. Mines which are located at some distance from a railway depend on oxcarts for bringing in machinery and other heavy equipment, This method is not only slow and cumbersome, but the heavier kinds of mining equipment can not be transported at all in this manner. Ores and concentrates are usually packed in sacks and sent out to the railway by pack trains. Llamas and burros are used for this work. Though the llama's carrying capacity is small — generally from 70 to 90 pounds —his original cost and his subsequent maintenance are comparatively small items. A llama train will make from 10 to 12 miles a day, the animals being allowed to graze at intervals along the way. For carrying ores over short distances by gravity, cableways or "andarheles" are used in a few mines, as in tne Soux mines at Potosi and at the Patiiio mines at Uncia. LABOR Most of the workmen employed in the mines are native "cholos" and Indians, as this has proved to be the only labor element adapted to the special conditions of the mining regions. The efficiency of labor imported from lower altitudes decreases greatly in the mines, some of which are located at 15,000 to 18,000 feet above sea level. The local supply of labor is limited, and, because of intemperate habits and the "difficult conditions of life in that environment, the normal rate of increase can scarcely keep pace with the growing demands of the mining industry. Though slow, these men are in general as good miners as are to be found in South America. While a more capable worker, the Chilean "roto" is, as a rule, less steady and dependable than the Bolivian cholo. There have been few labor difficulties in the Bolivian mines, though there was a strike at Llalla- gua during 1919. Hours for mine labor vary from 9 to 11, and wages from 1 to 7 bolivianos a day, with the average near 3 bolivianos. The lower wages are paid to women and children, who are employed in some places at sorting ores. Some of them receive less than 1 boliviano a dav for this class of work. 104 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. FUEL AND POWER. As the water supply is short in some districts, these mining com- panies bare been put to a great deal of trouble iu obtaining sufficient water for their needs, for both their concentration and their power plants. The fuel problem has always been serious on the Bolivian f)lateau. and mining enterprises have utilized every local source of uel that was available. These include "tola", a resinous shrub which grows on the table-land ; "taquia," or llama dung; and "vareta," a large fungous, mossy-looking growth that has good fuel properties. However, the supply of all these is limited and is entirely insufficient for the needs of the mines. The price of coal is virtually prohibitive, but fuel oil is used for the Diesel engines, which are widely used. Consequently the mining companies tend tp rely on hydroelectric power wherever possible, and some modern plants have been installed in connection with the larger mines, as at Llallagua. On the eastern slopes of the Andes there are generally, within reach of the mines, streams that can be made to serve for power purposes. Represen- tatives of a large American electrical development company made an extensive survey of the power possibilities on the eastern side of the mountains in 1920, with a view 7 to the establishment of electrical plants which could supply current for industrial enterprises of all kinds, including mines. SMELTING. Smelting has been little developed in Bolivia because of the high cost of fuel. For several years Luis Soux has operated a small smelter at Potosi, which produces the tin bars known as "Potosi bars." Using charcoal as fuel, this plant smelts tin ores in water- jacketed furnaces, the furnaces being connected by flues to boilers. The gases produced are used to raise steam in the boiler for remelting the tin in the refining plant. The tin comes from the furnace about 92 per cent pure, and the tin content is raised to 96 or 97 per cent by remelting. In 1914 some French capitalists studied the possi- bilities of erecting an electric smelter, which w r ould receive its power from a large hydroelectric installation. However, this project was cut short by the war. The next year American interests made pro- posals to the Bolivian Government t<> install a system of electric smelters in the country. They suggested that an export tax he put on tin concentrates that would force all tin ores to he sent to the company's smelters. The Government was asked to grant exclusive lights for 25 years, it to receive I" per cent of the amounts paid by the mining companies for smelting their ores. Two rival concerns were interested in this smelter project, and considerable discussion was aroused in mining circles in Bolivia much of it hostile to the project because of its monopoly character. An experiment was made with an electric smelter at La Pa/, by the so-called Andes Tin Smelting Co., but it proved unsuccessful, and with its failure the movement I'm- electric smelters ended. However, the Llallagua company put up a smelter at Aries through a subsidiary concern know n as the Compafiia Chilefia de Fundiciorj de Estano, which was capitalized at £50,000 ($243,325). This is a small reverberatory -inciter, which uses petroleum residue and anthracite as fuel. Though part of its early product assayed at only 99 per cent tin, MINING. 105 it has produced some with a tin content of 99.84 per cent. However, the plant has not proved a success, and its operation has been suspended. Bolivian ores are generally complex, and often demand special treatment in smelting. An intimate relation exists between tin, silver, bismuth, and tungsten ores, and the ores are sometimes further complicated by the presence of antimony, lead, or copper. Silver and tin are often found in the same vein, as at Oruro and Potosi. It is this circumstance that makes it difficult to divide the country into districts on the basis of any predominant metaliferous ores. Before 1890 such ores were -usually worked for their silver alone, but since that time attention has mainly been given to their tin content. Ores are shipped as "barrilla" or concentrate after treatment in the "ingenios" or reduction plants operated by the mining com- panies. The tin content of the barrilla exported from Bolivia varies from 60 to 70 per cent, but the bulk of the export runs 66 or 67 per cent tin. The final smelting is done in Europe or the United States. Formerly all the concentrates went to England and Germany, but two smelters erected in the United States since 1915 are taking an increasing proportion of the Bolivian exports. The American Smelting & Refining Co. began the erection of a smelter at Perth Amboy, N. J., in March, 1915, and in 1917 increased its capacity to 1,500 tons a month. Ninety-nine per cent tin is produced in the furnaces, and this is refined by an electrolytic process to 99.90 per cent and even better. This is higher than the average content of the Straits tin, which sets the standard in the world's tin market. The Williams Harvey Corporation, which is controlled by the Williams Harvey Co., of Liverpool, the National Lead Co., and Simon Patino, the Bolivian tin magnate, has since erected another smelter on Long Island. DUTIES. Another factor which closely concerns the mining business is the duties that are levied on the production and exportation of minerals by the Bolivian Government. On February 26, 1920, a graduated tax on mineral production was promulgated by the President of the Republic. Article 1 states that the profits obtained by mining enterprises in general, whatever the form in which they are organized, will be subject to the payment of the following taxes: From the total of the net profits there will be deducted a sum amounting to 10 per cent of the capital stock. This 10 per cent will be free from taxation. After this sum has been deducted, the amount of the profits will be taxed according to the following scale: Percentage of profits. * Percent- age of tax. Percentage of profits. Percent- age of tax. Percentage of profits. Percent- age of tax. ltol5 S 9 10 11 12 95 to 115 13 14 15 17 19 215 to 245 15 to 35 115 to 135 245 to 275 23 35 to 55 135 to 155. . . 155 to 185 30 75 to 95 1S5 to 215. . 106 BOLIVIA: \ COMMERCIAL WD [NDUSTRIAL HANDBOOK. All enterprises whose profits do nol amount to 20,000 bolivianos a year arc exempted from the payment of this tax. Other articles included in the law define the usage of the term "capital," limit the total of salaries and bonuses to employees to 20 per cent of the production, and state that stores conducted by the mining companies or the rents which they produce shall be con- sidered as an integral part of the mining business. The President of the Republic is empowered to order such investigations as he may consider necessary in order to insure the veracity and exactness of the balances of the companies. To the end of May of the same year the Government had collected a total of 1,927,590 bolivianos from four companies; L,867,412 boli- vianos of this was paid by the Llallagua company. 1 On February 20, 1920, the Bolivian Government established an export duty on silver. The principal provisions of the supreme decree of that date were as follows: 1. From March 3 the customhouses of the Republic -will collect a duty on the exportation of silver, taking as basis the kilogram of pure silver, in whatever form it may lie exported. The commercial quotations of the market value of silver will serve as basis fur assessing the duty. If the epiotationof the standard troy ounce in the London market docs not exceed 20 pence, each kilogram of silver exported shall pay 4 centavos. (6) If the quotation exceeds 20 pence, but does not exceed -to pence, the duty will be increased at the rate of I centavos per kilogram for each penny of ex. i If the quotation exceeds 40 pence, there shall be added to the former rat centavos per kilogram for each penny of the additional excess. Fractions of the penny are not to be considered in levying the duty. 2. In case the New York quotations predominate in the silver market, the equiva- lent of the former quotation will be determined in American money on the basis of the par exchange with English money. 3. Worked silver or old plate shall pay, whatever the percentage of silver in it. at the rate of 8 bolivianos per kilogram. (Silver articles of artistic or historical value can not be exported, according to law of Oct. 3, 1906.) 4. Exporters shall declare in the invoice 1 of exportation the percentage of silver in the ore exported, and on this provisional basis the export duties shall be levied. The final settlement of the duties will be decided by assay of the ore or by the bills of sale of the produd exported. 5. (Provides I'.jr t lie method of making the assay in the office of internal revenues.) 6. It the result of the assay show a difference againsl the interests of the treasury. there shall be levied double the duty of which the Governmenl would have been defrauded. 7. Bills of sale are to be presented at the customhouse within 180 days, for the purpose of verifying the invoices oi exportation. 8. In case the assay should prove the quantity of metal to he less than as specified in the invoice, the difference in duties will not he returned to the exporter. The schedules of export duties levied on tin. copper, wolfram, antimony, and bismuth are found on pages 7-53 of the publication entitled "Arancel de Derechos de Exportaci6n," which may be con- sulted at the Bureau of Foreign and Domestic Commerce, in Washing- ton, or purchased from any of the La i'a/. hook stores for the sum of L0 bolivianos, in addition to 1 boliviano to cover cosl of postage. i Editor' tor V.pr. i. 1921, the following note appeared: "Several new I to take the place of the law recently passed by 1 be funta raising the Bolivian tax on oil and mineral to 50 centavos per hectare. Tholaw which is Info i Increased the tax on land beldund ■.> »1, ilphur, a d lignite concessions from S bout 3 cents 1 ml 18 cents). This tax. according to the law. Is due every six months. » >fthe amount ! 'i >in i hi Increa od mineral taxation, 30 per i ei i 1 1 to be u '■'! in the construction of the railway from Poto I to 8u I for the i illway from Cochabamba to Santa Cruz, and i be remaining 40 Iti lation elite e in the adoption oi any of the new proposed laws wfl] be puMi in i." MINING. 107 MINING LAW. The following extract from a report by Consul Hazeltine, formerly at La Paz, contains the essential facts of Bolivian mining law: There is probably no country in the world where the mining laws in general are more favorable to the foreigner than in Bolivia. All foreigners, regardless of nationality, may acquire mineral claims under exactly the same conditions as citizens of Bolivia. Nor are these conditions onerous or difficult of fulfillment. Moreover, all machinery for mineral or agricultural uses is admitted duty free, and the exportation of mineral ores is free, with the exception of tin, copper, silver, gold, bismuth, and tungsten, which are subject to a comparatively light export duty herein set forth. Any individual, foreigner or national, may acquire one or more claims in known minerals, and in recently discovered minerals he may acquire 30 claims if the deposits are metalliferous, and if they are not metalliferous he may obtain 74 claims. The claim, or unit of measure for mineral concessions, is a square of 100 meters measured horizontally— that is 10,000 square meters. Any person may freely prospect on public lands without a license, but is obliged to notify the local administrative authorities. A concession of one or more claims must be applied for before the prefect or delegate of the De- partment in which the claim is situated. The application must be presented on stamped paper to the value of 20 bolivianos, and the semiannual payments are 2 bolivianos for each claim if the mine is a vein and 1 boliviano per claim if placer or lode. The application must state : (1) Name, residence, and occupation of applicant. (2) Name of the proposed concession. (3) Definite outlines of the claims. (4) Number of claims. (5) Name of the mining district, if any. (6) Names of adjacent mines and relative position. (7) If private lands, the name of the owner. The plans must show astronomical and magnetic bearings, and the claims outlined in perfect squares of 1 hectare each, and the whole plan on a scale of 1 to 2,000. The method of exploitation is completely free, and the employees of mines are obliged to obey the laws of the mining police with especial care for the life and health of the laborers, public tranquillity, and the safety of neighboring mines. No restrictions, legislative or administrative, are placed on aliens and not on nationals in granting mining rights or concessions. No restrictions, legislative or administrative, are placed on aliens and not on nationals in operating mineral properties or distributing mineral products. There are no restrictions, either legislative or administrative, on the sale of mining rights and properties to aliens. All mineral rights are commonly reserved to the Government by law dated October 13, 1880, and the procedure necessary to enable a person to explore or develop mineral resources is set forth above. There is no discrimination against foreigners in any respect what- soever. No development of mineral resources or distribution of mineral products is effected directly by the Government. 108 Bolivia: a commercial ami endustbial handbook. The Government docs not finance any private companies engaged in producing or distributing mineral products. TIN. The tin-mining industry in Bolivia is of very recent development, dating from about L895, when the decreased production 01 silver from some of the Potosi mines diverted the attention of some of the mining interests of that place to the possibilities of tin mining. Tin is now the most important mineral product of Bolivia, having sup- filanted silver for first place. In 1905 Bolivia took second place rom Banks and Billiton, and has since ranked next to the Straits Settlements as a producer of tin. Though the industry received a temporary setback from the allied restrictions on imports during part of the war period, it quickly recovered when the market was thrown open again. The tin-miningbelt of Bolivia extends from a little north of the latitude of La Paz south almost to the Argentine border. The northernmost deposits worked at present are those of Milluni and Huayna Potosi and the southernmost are those of Chocaya. The principal tin fields are situated in the Cordillera de las Tres Cruces or Quimsa Cruz in the Inquisivi district of the Department of La Paz. in a long narrow triangle formed by Oruro, Avicava, and Uncia, in the vicinity of the city of Potosi. and in the Province of Sur Chichas in the Department of Potosi. There are also a few minor isolated lields, like that of Bcrenguela in the Department of Cochabamba. In the first zone are located the mines of Araca. Caracoles, Colquiri, and Monte Blanco; in the second are those of Oruro, Morocacala, Huanuni. Avicava. Antcquera. ami the enormously rich mines of Uncia and Llallagua; in the third district are situated the mines of the Cerro of Potosi and of Porco; and in Sur Chicas are found the mines of the Aramayo-Francke and Oploca companies at Chocaya and Chorolque. In distinction from the alluvial deposits of the Straits Settlements. Bolivian tin is largely extracted from lodes. Tin placers are now little used, though some washings are worked near Oruro and Potosi. The richest ores generally run from 6 to 8 per cent tin. Ore that is rich enough to ship or that can be hand sorted is known as "guia." However, the bulk' of the ore is too poor in tin to be handled in this way and is subjected to mechanical concentration to yield a concen- trate or "b:irrilla" containing from 55 to 70 per cent tin. The com- monest ores are the dioxide, accompanied with peroxide of iron, and cassiterite (stannic oxide). The cassiterite is generally found with pyrites, iron hydroxide, silver ores or with native silver, antimony, or wolframite. At Potosi it is found in company with the yellow oxide of antimony. The tin-mining methods used are still very de- fective and in some places quite crude, in spite of marked improve- ments in some of the larger plants, as in those of Pat i no and Llallagua. Too little effort has been made to work the veins with regard to their fut ure produd ivity, hut the aim has usually been to secure the largest possible returns in the quickest time. Also, there is still a con- siderable 108S iii the tailings in concentrating operations. The progress of tin mining is illustrated by the following statistics of exports of 'bun-ilia - ' and bars for the years 1897-1918: MINING. 109 Years. Quantity. Years. Quantity. Value. 1897 Metric tons. 3,749 4,396 9,279 16, 234 21,916 17,608 28, 131 20, 692 26, 912 39, 526 31, 324 1908 Metric tons. 32. 542 35,566 38, 548 39, 841 38, 614 44,594 39, 260 36, 492 35. 543 46, 956 48, 801 Bolivianos. 30 925 803 L898 1909... 31,654,210 37, 006, 504 52, 639, 603 60, 238, 197 67, 7.S4, 378 42, 479, S3S 44, 885, 450 1899.. 1910 1900 1911 1901 1912 1902 1913 1903 1914 1904.. 1905 1916 1906 1917 84,360.953 129,611,140 1907 1918 In 1918 tin accounted for 71 per cent of the value of all Bolivian exports. The export duties levied on tin amounted in 1918 to 7,380,653 bolivianos, or 89.50 per cent of all export duties collected during the year. The source of the tin exports of 1918, according to Departments where produced, was as follows: Departments. Kilos. Bolivianos. 39, 292, 646 7,687,486 1,528,517 292, 378 102 881 522 21 9S6 605 3 950 633 810, 3S0 Total 48,801,027 129,629,140 The proportion of tin exported by some of the more important producers during the period 1912-1919 was as follows: 1912 1913 1914 Producers. Kilos. Percent- age. Kilos. Percent- age. Kilos. Percent- age. 13,946,600 3, 312, 085 36.13 8.57 16,005,986 5,771,633 35.90 12.95 10, 763, 3S5 4, S40, 232 28.91 13 00 Cia. Minera de Oruro Empresa Consolidada Colquechaca. . 1-N,173 322, 422 233, 354 4,156,616 .32 .84 .61 10.76 191, 242 315, 742 594, 388 680,174 1,514,516 IS, 359, 938 .51 337, 936 541, 700 3,673,051 .75 1.21 8.23 .84 1 59 A raniayo-Franeke Soux 1.82 4.06 Others 16, 514, 755 42.77 18,264/443 40.96 49.27 Total 3S, 614, 305 100. 00 44, 594, 749 100. 00 37,259,617 100. 00 1915 1916 1917 1918 Producers. Kilos. Per- centage. Kilos. Per- centage. Kilos. Per- centage. 29.39 •JO. 18 2.40 1.48 .75 .47 8.91 2.93 27.49 Kilos. Per- centage. 10,112,553 5, 811, 944 1,156,339 252, 169 292, 576 317, 361 1, 209, 840 2, 376, 152 14,963,201 27.72 15.93 3.16 .69 .80 .86 3.31 6.52 41.01 10, 369, 924 7,187,094 1, 069, 280 257,634 279, 435 248, 930 3, 430, 701 1,616,990 11,0S3,561 29.17 20. 22 3.01 . 75 .78 .70 9.65 4.51 31. 1.8 13,643,231 12,161,096 1,116,492 6S9, 554 349, 062 216, 6S8 4, 128, 808 1, 363, 064 12, 759, 419 11,615,430 17,962,371 1,099,547 395,630 311,915 114, 270 4, 148, 30S 906, 761 12,240,795 23.81 36.82 2.25 .81 Monte Blanco Huayna Potosi Aramayo-Francke .63 .23 8.49 1.86 25.10 Total 36, 492, 135 100. 00 35. 543. 549 100. 00 46, 427, 414 100.00 48. SOI. 027 100. 00 110 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. As this table shows, the combined production of the Patifio and Llallagua mines in 1917 was 66.57 per cent, or nearly two-thirds, that of the entire country, and in 1918 the proportion was 60.63 per cent. Pari of the production grouped here as ''Others" is accounted ftal exporl taxes collected. 'I'm exports represented 69 per cent of the total value of the national MIXING. Ill exports for the year. The destination of the "barrilla" shipped was as follows : Countries. Great Britain United States Chile France 26, 883, 279 19, 852, 566 1, 092, 3S2 383, 060 Value. Bolivianos. 54, 789, 225 41,519,062 2,181,143 782, 020 Percent- 55. 20 41.83 2.19 .78 About 90 per cent of the total export of bars was shipped to England. SILVER. Silver long constituted the basis of Bolivia's mining industry, and remained such until it was superseded by tin. The wide adoption of monometalism among the leading industrial nations, the devel- opment of other silver fields, as in Australia and Colorado, the gen- eral fall in the price of silver, and the lack of capital to put the mines on a modern basis of operation — these were the principal factors that brought about the decline of the Bolivian industry. Scores of mines that had been worked since colonial times were abandoned or began to be worked for other metals. Even to-day, when the indus- try has begun to revive under the impulse of the higher prices, silver, wherever it is produced (save in a very few cases), is secondary to some other metal found in combination with it. The silver deposits of Bolivia extend from the southern part of the Department of La Paz south into the Sur Chichas country, which lies below the latitude of Uyuni. Silver is found well to the east of the main range of the Cordillera Real in the Departments of Cochabamba and Chuquisaca and to the west across the table-land in the Cordil- lera Occidental, whose ranges reach out into the Province of Caran- gas. Above all it is found in the Department of Potosi, whose very name is as closely associated with the history of silver mining as are those of Guanajuato and San Luis Potosi in Mexico. The principal centers of the industry are the cities of Oruro and Potosi, and the mines of Huanchaca-Pulacayo near Uyuni. Other mining centers are Huanuni, Chocaya, and Colquechaca, long abandoned but now reopened. Among the abandoned mining districts of southern Bolivia are those of Andacaba, San Cristobal de Lipez, and Portu- galete, now the property of the Oploca company. The argentiferous ores of Bolivia generally exist in the form of sulphides or as high-grade protochlorides, and usually in close asso- ciation with tin oxides, or with antimony or zinc. Ores which hold a very high silver content are known as "rosicler." In the treat- ment of composite ores the silver is commonly recovered by a process of lixiviation with hyposulphite or brine, after the ore has been submitted to a chlorodizing roast, the metal being precipitated from the solution as the sulphide or silver cement, in which form it is shipped. Higher-grade, hand-sorted ores are also exported without being treated befcre shipment. 112 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Exports of silver during the period 1908-1918 were as follows, the figures given referring to actual silver content of ores and not to their gross weight : Years. 1908 1909 1910 inn 1912. 1913. Kilos. 156, 482 157,844 142, 939 r.'T. '.mo 123,939 81,289 Bolivianos. 8, 058, 092 5,721,915 5, 264, 441 4,587,746 1,308,329 2,784,355 Years. 1911. 1915. 1916. 1917. 1918. 1919. Kilos. 72,336 82, 159 106,098 110, 160 100, 272 Bo'.ivianos. 2,531,329 2,982,859 1. 193,611 5,693,639 7. t'.U, 121 12,349,384 Classified exports of silver in 1918 were as follows: Classes. Cmss weight. Silver content. 12,637,341 120,965 156,902 309 4,897 Kilos. 12,315 ;•.. 162 11,784 •■ pifla" ' 11 Coin Total 12,920,414 100, 272 1 Virgin silver treated with mercury. COPPER. Though the cupriferous deposits of Bolivia are widely distributed in both of the main Andean chains, mining is largely confined to thci Corocoro district in the Province of Pacajes of the Department of La Paz. The deposits in this region are a continuation of those of the Chuquicamata field in northern Chile, copper being found in the intervening country at Cobrizos and in the Carangas district in the remote ranges of the western part of the Department of Oruro. The same series of ore beds crop out again in the rich Cerro de Pasco and Moracocha fields in Peru. Copper also occurs at intervals in a belt which extends north from Corocoro across the Provinces of Oma- suyos and Munecas into Caupolican. It is also found in several localities in the neighborhood of Oruro and in the Porco and Chayanta sections of the Department of Potosi, where it is a prominent by- product in some mining operations. Ores of high copper content have been found in the Department of Chuquisaca to the southeast of Sucre, but these deposits are located too far from the railway for their exploitation to be practicable. The importance of Corocoro is due not only to its superior transportation facilities, afforded by the Tarejra spur of the Aries Railway, bul to the presence in that Locality of large amounts of pure copper, as in the Lake Superior region of the I ' n i ted States. Native copper occurs there in the for in of powder or in plates or nodules in vast beds of reddish sandstone. Larger masses, known as "charquis," are also frequently encountered. t Exports of copper for the years I'.IOS L919 were as follows: 1908 1910 I'M I 1912 I'M I Kilos 2,877,605 3,134,014 1,707,188 Bolivianos. I. 181,173 1,651,787 1,788,092 3,389, I7ii 5 . r I'M I 8,1 23,812 7"s 29,011,124 Kilos. L917 1918 1919 37, 144,900 26,000,381 22.H70, 126 Bolivianos. I. i U. 7:%-. 8,854,524 11,921, 1 18 7,746 343 MINING. 113 Exports during the first half of 1919 amounted to 9,200,369 kilos. In 1914 the 25 per cent export duty on nonconcentrated copper ores was withdrawn, as a result of which exports in 1915 were almost treble those in 1914. The opening of the Arica-La Paz Railway also had its effect on the increased production at Corocoro during this period. Copper exports in 191S, according to classes, were as follows: Classes. Unconcentrated ores.. Concentrates Sulphide concentrates Cements Copper matte Bars Total Gross weight. Kilos. 19,896,837 3.935,295 1,900,000 134,882 133,350 17 26,000,381 Percent- age of copper. Value. Bolivianos. 4,155,800 2,955,327 429,913 104,682 100,601 20 7,746,343 Of the total volume of exports for 1918, 24,945,049 kilos were sent to the United States, 883,998 kilos to Great Britain, and 171,334 kilos to Chile. Production by Departments during the period from 1912 to June 30, 1919, was as follows: Years. La Paz. 1912 1913 1914 1915 1916 1917 1918 1919 (6 months) Total.... Kilos. 5,372,985 4,476,142 8,380,572 23,278,572 28,210,842 36,194,765 25,416,299 8,960,795 410,290,972 Oruro. Potosi. Kilos. 20, 470 85,598 85,975 379,843 239, 195 687, 322 157, 847 96,543 1,752,793 Kilos. 61,924 498,632 200, 891 154,802 461,087 543, 199 427,035 143,031 2,490,601 Cocha- bamba. Total. Kilos. 19,614 Kilos. 5,455,379 5,060,372 8,667,438 23,812,798 29,011,124 37,444,900 26,000,379 9,200,369 144,652,759 LEAD. There has been a steady increase in exports of lead during the past few years, as is shown by the following table: Years. Kilos. Bolivianos. Years. Kilos. Bolivianos 190S 5,150 1909 | 6,000 1910 30,485 1911 343,188 1912 1, 074, 887 1913 1,765,296 1914 1915 1916 1917 191S 1919 1,554,570 2,216,388 2, 420, 950 4, 129, 2S8 4,606,851 4, 759, 295 155,457 354, 535 477, 156 1,520,104 1,S03,041 1,815,840 These include both lead ores and the metal, small quantities of the pure lead being exported. The Bolivian industry .cjm_be main- tained in competition with that of the United States, Spain, Germany, and Australia only during the continuance of such prices as prevailed during the period 1913-1918 (£21 to £40 per ton), 44462°— 21- 114 BOLIVIA: A COMMERCIAL AXD INDUSTRIAL HANDBOOK. Most of the lead exported from Bolivia is produced in the Province of Sur Chichas and near the Argentine border, and is sent out through La Quiaca. The production of lead ores by districts during 1918 was as follows : Department of Potosi: Kilos. Province of Sur Chichas ( bars - ■ ( *Z' SJ lores. . 4, 549, 000 Department of La Paz : Province of Ingavi do 25, 250 Province of Murillo do 15, 182 Total 4, 606, 851 The destination of the exports in 1918 was as follows: Countries. Kilos. Bolivianos. Great Britain 4, 339, 601 Argentina 242, 000 United States 25, 250 Total J 4, 606, 851 1,702,611 90,803 9,627 1,803,041 ANTIMONY. The mining of antimony in Bolivia, which in ordinary times is of little consequence, received a great impulse during the war, but after the cessation of the extraordinary war demand the industry quickly returned to its prewar status. The course of antimony exports is illustrated by the following table for the years, from 1908 to June, 1919: Years. Kilos. Bolivianos. Years. Kilos. Bolivianos. 1908 919, 735 511,440 524, 878 311,715 91,3.50 62,050 105, 147 51,634 97,0S0 68,419 22,837 12,410 1914 i 186,077 1915 1 17,923,048 1916 ! 27,413,715 1917 1 23.3S1.392 1918 ! 6,836,068 1919 (6 months) 76,800 30,617 1909 1910 13,442,286 16,996,503 17,017,907 1911 1912 1913 30, 720 The fluctuations in the price of antimony during the war are illustrated by the following figures, prices being given in cents per pound : Vears. Lowest. Highest. Month. i enl . Month. 1915 15.85 1 1. ::> 1 1. 28 11.53 . 1917. . . 13.91 April do 12.58 MINING. 115 Exports according to countries of destination in 1918 were as follows : Countries Great Britain United States Chile Argentina Brazil Total Kilos. 6,313,413 357, 430 152,892 9,287 3,046 6,836,068 Bolivianos. 3,658,342 382, 450 101,665 9,682 3,185 4,155,323 Antimony is found in the same general localities in which tin ores occur. The principal producing districts during the war boom were the Chuquitu section near Uncia, the country about Porco, and that part of southern Bolivia which finds its outlets by way of Atocha and Uyuni to the north and by La Quiaca into the Argen- tine. Large shipments were made through Challapata on the rail- way between Uyuni and Oruro. Among the largest shippers of southern Bolivia were Ricardo Cruz, of Uyuni, and the Aramayo- Francke mines. The most common ores are sulphides. The ores are usually abundant and rich, with wide veins, which often run 70 per cent pure metal. Many of the mines operated during the war were small, crudely worked properties in the hands of Indians, whose operations were financed by the purchasers of the ores. TUNGSTEN. The remarkable development of tungsten or wolfram production between 1915 and 1918 was also the result of the unusual demand for it which was created by the war for use in connection with the manufacture of steel. During the 10-year period 1909-1918 exports increased as follows: Years. Kilos. Bolivianos. Years. Kilos. Bolivianos. 1909 152,600 210,061 297,272 474,540 282, 597 97,692 141,629 231, 188 519, 705 415,418 1914 276,316 792,511 3,035,134 3,890,534 3,418,316 428, 300 1910. 1915 . 1,497 S46 1911 1916 5,675,701 1912 1917 10,810 292 1913 1918 10,591,429 Notf.— In 1919 exports fell to 1,994, 769 kilos. Exports of wolfram concentrates according to countries of desti- nation in 1917 and 1918 were as follows: 1917 1918 Countries. Kilos. Bolivianos. Kilos. Bolivianos. Percent- age. 1,934,057 1,398,325 545,625 10,344 2,183 6,392,927 2 539.213 7,983,355 1,627,612 973, 424 7,038 75 38 3,248,161 1,136,148 28,963 4,093 554,432 321,096 3,575 15.36 9.19 Chile : . . . .07 Peru Total 3,890,534 10,810,292 3,418,316 10,591,429 116 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The areas of largest production during the period of the war boom were the three Provinces of Sur Yungas, Inquisivi, and Murillo in the Department of La Paz, the Province of Cercado in Oruro, the Province of Ayopaya in Cochabamba, and Nor Chichas in Potosi. 1 n L917 the first three Provinces produced, respectively, 728.953, 455,534, and 640,476 kilos of "barnlla," and the Province of Cercado produced 1,501,849 kilos in the same year. The heaviest producers in the Province of Sur Yungas were the El Carmen, La Chojlla, Maria de la Luz, La Andina, and Enramada mines, the first two of which were properties of the International Mining Co. In Inquisivi the heaviest producers were the La Aguada, Chicote,Huanehaea. Amutara, and Paconi properties, and in Cercado the districts of San Antonio, Pongo, and Condeauqui. The Pongo district produced 695,171 kilos in 1917, which constituted the record for the country. The most important interest in this field and in that of San Antonio was that of Rafael Taborga, whose ores obtained a prime reputation in the United States for their high grade. Patino's Kami mines were the largest producers in Cochabamba, as the Aramayo-Francke properties at Sala Sala were in Nor Chichas. BISMUTH. Exports of bismuth during the period 1908-1917 were as follows: Years. Kilos. I'.IIIS 1909 1910 1911 1912 160, 304 256,762 262,728 555, 237 477,748 Bolivianos. 352, 500 1,465,315 1,966,595 2,218,051 2,150,042 Years. Kilos. Bolivianos. 1913 422,664 1914. 1915. 1916. 1917. 549,669 662,565 668, 126 531.717 2,092,926 2.S02.27S 3,670. '51 3,1. ">4, 905 1,116,678 Classified exports of bismuth in 1918 were as follows: Form in which exported. Kilos. Bolivianos. Form in which exported. Kilos. Bolivianos. 248,982 75, 569 53,998 3,144,372 612,901 230,745 Unconcentrated ores Total 111,523 41.". 221 Concentrates ("barri 11a").-. 590,072 4.403,327 With the exception of 1,210 kilos of bars exported to France and the United States, the entire bismuth production of 19 IS was shipped to Great Britain. Between December, 1914, and July. 1919, t he price of bismuth on the London market rose from 7s. 6tl. ($1.82) to 12s. 6d. (S3. 04) per pound. Exports in 1919 amounted to 374,076 kilos, valued at 490,072 bolivianos. The production of this mineral has been almost exclusively in the hands of the Aramayo-Francke Mines, whose bismuth-producing mines are located in the Sur Chichas district of the Department of Potosi at Tasna and Chorolque. This British company lias smelters at Buen Retiro and Quechisla for the making of bismuth bars. Their product is exported over the Atocha branch of the Bolivia Railway and thence through CJyuni and Antofagasta. Bismuth is also mined in small quantities in other parts of the Department of MINING. 117 Potosi, as at the Real Socavon mine in the Cerro of Potosi, at Col- quechaca, in the Provinces of Porco and Charcas, at Esmoraca in Sur Chichas, and at Patino's Salvadora mine at Uncia. In the Department of La Paz it is found in the vicinity of Milluni and Huayna Potosi. The latest development in the industry is the ex- ploitation of bismuth deposits in the Uncia-Llallagua district, which is the center of the Bolivian tin industry. Most of the ores worked at Tasna and Chorolque are sulphides, which run from 10 to 15 per cent bismuth. Crystals of native bismuth are found in the Huayna Potosi district. The mineral is used, largely in the form of the subnitrate, in the manufacture of certain medicines. It is also used as a component of certain alloys with lead and tin. ZINC. Exports of zinc for the years 1908-1918 were as folios: Years. Kilos. Bolivianos. Years. Kilos. Bolivianos. 190S 1, 242 302, 000 342 13, 162 435,009 372, 490 329,995 223, 150 1914 3,755,450 104, 249 482, 876 427, 047 4,186 140,623 1909 . 1915 18,560 1910 11,797,000 9,798,125 8,961,352 7, 367, 463 1 1916 236,609 1911 1917 530, 780 1912 1918 2,680 1913 The Compaiiia Huanchaca de Bolivia was formerly the largest producer of zinc, but during recent years most of the zinc mined has come from the Sur Chichas country near the Argentine frontier and is exported through Villazon. It has also been mined in the Colquiri district of the Department of La Paz and at Huanuni in the Depart- ment of Oruro. Exports in 1917 were distributed among the follow- ing countries: Great Britain, 302,471 kilos; Argentina, 60,510 kilos; France, 60,000 kilos; and the United States, 4,066 kilos. MOLYBDENUM. Molybdenum exists in several parts of Bolivia, but particularly in the Andean region about Sorata, which lies northeast of Lake Titicaca. It is also found in the Chichas country to the south of Uyuni and has been encountered in the Department of Oruro. How- ever, the industry has reached no such development as it has in the deposits of the Department of Junin in Peru, which produces about 80 per cent of the world's supply. Little has been done to work the Bolivian deposits, and exports have been small, amounting to 6,101 kilos, valued at 19,157 bolivianos, in 1915, and 704 kilos, of a value of 3,168 bolivianos, in 1916. All of this was produced in the Depart- ment of La Paz, and all of it was exported to England. No exports are officially recorded for subsequent years, and it is understood that no exploitation has taken place since 1916. It is generally found as the sulphide and scattered through deposits of quartz, which makes it very hard to work. It has also been found in connection with tungsten ores. The industrial application of molybdenum was formerly restricted to the manufacture of molyb- denate of ammonia, a reagent for sulphuric acid, and of sodium 118 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. molybdenate, which is used for giving a blue shade in ceramics, and for dyeing silks and other textiles. It is now used in the manufac- ture of smokeless powder, but particularly as an alloy with steel. It has been found to harden steel without affecting its malleability. Molybdenum is also finding increased use in the preparation of steel for automobile springs. GOLD. Though gold is widely found in Bolivian streams, its production has greatly declined during the past few decades, and the gold mining industry is at present almost nonexistent. Yet large quan- tities of gold were produced during the colonial era; and even dur- ing the last half of the eighteenth century, when the decadence was well under way, more than $16,000,000 worth of gold was produced in the provinces of Larecaja and Caupolican alone. In 1904 the output for all Bolivia was 5,790 ounces, of which 3.500 ounces was produced by the Incaoro and Olla de Oro companies. According to official statistics the exports of gold, exclusive of gold coin, during the period 1908-1916 were as follows: Years. Kilos. Years. Kilos. Years. Kilos. 1908 35. 49 4L>. 59 1911.... 55.05 78.30 93. 55 1914 1915 1916 L80.07 1909 1912 1.78. 38 1910 1913. . 1. 50 There are no records of exports since 1916. The Bolivian gold fields extend over large areas of the country, though the mining industry is largely concentrated in one district of the Province of Larecaja in the department of La Paz. One field extends from the Province of Munecas eastward with wide breaks to the basin of the Itenez and the Brazilian border. In its western part this belt includes the Provinces of Munecas, Larecaja, Caupolican, Nor and Sur Yungas, Inquisivi, and Loaiza, all of which lie among the high Cordillera Real or in the montana region. It reaches across the Department of Cochabamba, where evidences of gold are rare, into Santa Cruz, where the Chiquitos highlands and the country to their north constitute a very clearly denned auriferous zone. This belt includes the lode deposits and placers of Tipuani, Suehes, Chuquiaguillo, Aropaya, Yani, and Cavari in the western part, and San Simon, San Javier, and the washings along the Itenez affluents in the remote eastern region. In the far northwest is another field of little explored alluvial deposits about the upper reaches of the Madre de Dios and its tributaries and largely com- prehended within the Territory of Colonias. Another held, no longer worked, exists 'm the southern part of the Republic and extends ;is fur north as the Chayanta country and the mountains of Potosi. It includes parts of the Lipez and Chichas Provinces, Mende/, arid Cinti in Chuquisaca. and reaches down into Tarija to the southeast and into Santa Cruz in the northeast. This bell includes the deposits of San Juan del Or<>, Ania vapampa, Suipaeha, ESsmoraca, Siena Gorda, and Chuquichuqui. MINING. 119. The Incaoro Co.'s mines at Pallaya and the Olla de Oro Co.'s mines east of La Paz are the only lode gold mines that have been operated within the past few years, and these mines are now idle. In the placer field to the northeast of La Paz the natives still wash gold along the banks of several auriferous streams, but, as their product is disposed of clandestinely, no official estimate of production from this source is possible. Operations along the Tipuani have largely been restricted to development work carried on by the Bolivian Gold Exploration Co., an American enterprise that controls the principal placer deposits of the lower course of the river — a region of considerable productivity in earlier times. This concern has been occupied in constructing a 10-mile ditch, but it has been hampered by an adverse climate, scarcity of labor supply, and difficulties of transportation. Nine tunnels have been built in con- nection with this work. Water from the Gritado River is to be used to furnish power for the operation of the hydraulic equipment installed on the Colorado Playa. A few years ago the Incahuara Gold Dredging Co. failed in attempts to dredge the bed of the Tipuani below its junction with the Kaka. The dredge which was used to work the Chuquiaguillo deposits a short distance out of La Paz, and which led to the finding of some unusually large nuggets, has been abandoned. In eastern Bolivia the basin of the Quisere River passes through the three auriferous regions of Concepcion, San Javier, and San Simon. The placer beds of San Javier were once worked by the Jesuits, as were also the deposits of the San Simon district in the Itenez country, and the Chuquicamini lode deposits of Inquisivi in the Cordillera Real. The San Miguel River, which has a quartz bed and skirts some low mountains where gold is known to occur, possesses alluvial deposits which could be worked with dredges for part of the year. However, little has been done in recent years to exploit the gold resources of the three northeastern Provinces of Santa Cruz where the metal is found. OTHER MINERALS. Nickel has been found in several districts in Bolivia, usually in combination with other metals, and, sometimes in arsenical combi- nations that make it nearly valueless. However, little exploitation has been done, and this only in the region between Oruro and Cochabamba. In 1917, 6,146 kilos, with a total value of 17,828 bolivianos, were exported, and in 1918 exports amounted to only 399 kilos, all of which came from the Sorpresa district in the Province of Tapacari, Department of Cochabamba. In the decade 190*8-1917, 5,121 kilos of cobalt, with a value of 4,385 bolivianos, were exported. Iron and mercury are found in the Provinces of Cordillera and Vallegrande in Santa Cruz. Iron is also found in the Itenez basin and in other parts of Bolivia, but has not been developed on any commercial scale. In the four years between 1908 and 1913, 8,747 kilos of mercury were exported. Among nonmetallic minerals produced in Bolivia are salt, lime, kaolin, asbestos, sulphur, borax, coal, lignite, and petroleum. "Salares" or salt beds cover large areas in the Coipasa district to the west of the main line of the railway between Uyuni and Oruro 120 BOLIVIA: A COMMERCIAL .VXD INDUSTRIAL HANDBOOK. and extend well down toward Uyuni. The crude salt is carried from the vicinity of Garcimendoza, about 163 kilometers (101 miles) from Oruro, and widely distributed over the country. Salt is also found to the north of Potosi and about Ayoma, west of Colquechaca. In 1018 3,650 kilos were exported to Argentina from the Province of O'Connor in the Department of Tarija. Salt beds in the northern Chaco, lying well to the south of San Jose de Chiquitos, are also worked. Asbestos of a good quality exists among the mountains north of Cochabamba, and a high grade of kaolin or porcelain clay is found in 1 he JIuanuni distriH . Beds of sulphur and borax have been found in the Caranga and Nor Lipez regions bordering the Chilean frontier. Coal and lignite have been found in various parts of the plateau. Coal is known to exist in the Copacabana Peninsula, which juts out into Lake Titicaca, where the deposits are controlled by an Italian concessionaire. Tests have shown that this coal possesses good burning qualities, in spite of impurities that exist in connection with it. Coal has also been found near the line of the Arica-La Paz Railway and large deposits of good coal are reported to have been discovered across the mountains from Sorata. A good grade of lignite is found in the Cordillera Oriental about Colomi near Cocha- bamba. Extensive peat beds on the outskirts of La Paz are being worked by local interests, though as yet on a small scale. These beds cover an area of about 2,500 acres,' with a depth of peat varying from 16 to 24 feet. It is estimated that these fields contain about 150,000,000 cubic meters of peat, which would yield 30,000,000 tons of dried peat briquets. This peat is said to have a fuel value equal to one-half that of coal and a little greater than that of firewood. MINING DISTRICTS AND PRINCIPAL INTERESTS. ABACA. This mining district is located at the north end of the Cordillera de Las Ties Cruces, a range separated from the massif of Illimani to the north by the valley of the La Paz River. The mines are at an altitude of 15,000 feet and higher. The product mined is tin. Sociedad Empresade Estafio de Araca. — The company that exploits these mines is Chilean, with home offices in Santiago, though the local German firm of Boettiger & Trepp is also heavily interested. It was established in 1917. The company is making preparations to install a large amount of new German equipment The net earnings of the company for-1919 amounted to 841,813 bolivianos. A 35 per cent dividend was paid for the year, and another dividend of 15 per cent was paid for the first two months of L920. The total output of the mines lor Mil!) was 379,026 quintals, with an average tin content of 4.85 per cent and some ores assaying at 10. I per cent. After treat- ment the ore produced 22,831 quintals of 62.38 per cent and i;:; per cent Barrilla or concentrate; ( .»,'.)7 l quintals of "guia'' or high-grade ore running 61 percent tin were also produced. The average cost of prodmi ion per quintal for t lie year was 36.43 bolivianos. MINING. 121 ARAMA.YO-FBANCKE. Aramayo-Franclce Mines (Ltd.).— The mines controlled by this company are located in the Chichas region, tributary to the Atocha branch of the Bolivia Railway. The most important properties are Chorolque, Tasna, and Chocaya. The mountain of Chorolque is situated about 25 miles northeast of Atocha, with which it is con- nected by a mountain trail. It is a pyramid of quartz trachyte or andesite rising nearly 3,000 feet above the surrounding plateau to a height of 20,000 feet Mining operations in this locality are centered about two groups of mines, the older Chorolque group, which has a mill at 16,000 feet and workings to 18,000 feet, and a second group on the other side of the mountain. Tasna lies farther to the north and about the same distance from the railway. Chocaya lies to the west of the railway and a few miles northwest of Atocha. The com- pany has concentrating and smelting plants at Quechisla, Buen Retiro and Cotani, and a reduction plant for silver ores is being erected at Atocha. Other properties of the company are Asllani, Santa Barbara, and Sala Sala, all of which are in the vicinity of Chorolque. The Aramayo-Francke company has had a virtual monopoly of bismuth production in Bolivia, most of its bismuth out- put being derived from Chorolque and Tasna. These mines also produce tin, copper, and wolfram, and during the war were large producers of antimony. The principal product of the Chocaya mines is silver, with some tin. During 1919 the output of the company's mines, exclusive of bis- muth, was as follows: Black tin tons. . 2, 236 Silver (mostly in precipitated sulphides of approximately 60 per cent silver, and the rest ore of approximately 6 per cent silver) troy ounces. . 700,000 Copper (cement, averaging about 57 per cent copper) tons. . 100 Wolfram do. . . . 78 Copper matte is also shipped intermittently. Exports of bismuth during 1918 were as follows: Kinds. Tasna. Que- chisla. Kilos. 220, 205 12,600 21,909 Kilos. 26,566 18,663 32, 0S9 8,220 The output of this company for the years ended June 30, 1914 to 1917, exclusive of bismuth, was as follows: Years. 1913-14 1914-15 191.5-16 1916-17 Black tin. Tons. 3,442 2,060 2,095 2,059 Copper matte. Tons. 342 111 19 118 Silver ores and sulphides. Troy ounces. 110, 000 523,284 Wolfram. Tons. 148 227 122 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The Aramayo-Francke company is an English firm, with head- quarters in London. The interests originally represented a part- nership between the Bolivian, Don Avelino Aramayo, and his metal- lurgist, Francke. The present company was organized in England in 1906. The first properties cost £494,090 ($2,404,489) in fully paid shares, the rights to Chorolque being acquired in 190S for £139,999 ($681,305). The present capitalization is £600,000 (82,- 919,900). The following dividends were paid during the years ended dune 30, 1911 to 1917: 1910-11, 12* per cent; 1911-12, 15 per cent; 1912-13, 17$ per cent; 1913-14, 19 per cent; 1914-15, l\ per cent; 1915-16, 10 per cent; 1916-17, 30 per cent. The general manager in Bolivia has headquarters at Quechisla. There are agencies at Uyuni, Atocha, and Tupiza. Most of the company's equipment is of English manufacture. BKRENGUELA. The Berenguela tin-mining district is located in the canton of Colcha in the Department of Cochabamba and near the railway which connects that city with Oruro. Low-grade ore exists here in large bodies. The company's mill was recently remodeled. The Berengui it 3,000 tin ire heel ares of mining properties in the same region. The Caracoles mine was bought from a group of interests consisting of I >r. Art uro ( In/man (a Chilean) , David Bricker, and George Pringle. The Pacuni and Huanchaca mines were acquired from B. N. Dillon and the others from ftasley and Insley, of La P;\/.. All of these are till mines, the ore running from 3 to 25 percent. A- is usually the casein Bolivia, the ores are complicated by the presence of other minerals, especially silver and wolfram. The company is now constructing an automobile road from the Eucalyptus station of the Bolivia Railway line, between Oruro and La Paz, to the mines. The total Length of t his road is about 66 miles. It promises t<> be one of the besl mountain roads in Bolivia and will MINING. 123 represent an expenditure of about 1,000,000 bolivianos. Water and power rights have been secured to about six streams in the vicinity of the mines, and a power plant is to be erected on the most advan- tageous site. It has not yet been decided whether the company will ship out its product as "barrilla" or install a smelting plant at the mines. The questionable practicability of electric smelters is one of the principal factors in the decision. The Bolivian offices of the Guggenheim interests are at La Paz. COLQUECHACA. The Colquechaca mining district is situated in the Province of Chayanta in the northern part of the Department of Potosi. The town of Colquechaca lies at an elevation of about 14,000 feet, and the surrounding hills rise about 4,000 feet higher. The principal outlet fpr this region is over the cart road that terminates at Challapata on the railway between Oruro and Uyuni. This region formerly contained some very important silver mines, but has lately been of little consequence. The " socavon " or shaft of San Bartolome, which was opened in 1700, produced more than $10,- 000,000 worth of silver in 26 years of the last century. However, the most productive mines were flooded about 40 years ago. Simon Patino has lately taken over one of the old producers and is installing a hydroelectric plant for the purpose of draining the old workings, after which development work on a large scale will be undertaken. Between 1900 and 1912 the output of such mines as were in opera- tion was as follows: 1900, 411 tons; 1901, 274 tons; 1902, 253 tons; 1903, 158 tons; 1904, 97.8 tons; 1905, 87 tons; 1906, 108 tons; 1907, 146.3 tons; 1908, 154 tons; 1909, 154 tons; 1910, 142 tons; 1911, 127.5 tons; 1912, 121.7 tons. Most of the ores consist of silver sulphides, with antimony in combination. The Compania Gallofa Consolidada de Colquechaca is a new company with home offices in Sucre, where most of the capital stock of 1,275,000 bolivianos is held. This company has recently installed a new reduction plant on its property. In 1918, 6,600 quintals of tin con- centrates, running from 48.5 to 60.5 per cent tin, and 1,310 quintals of silver ore, with a metal content of 8,901 marcos, were produced. Net profits in 1917 amounted to 82,148 bolivianos and in 1918 to 10,826 bolivianos. COLQUIRI. The Colquiri tin-mining district is located in the high Cordillera Real of the Province of Inquisivi and to the south of the Caracoles district. The Compania Minera de Colquiri is a Chilean company, which was originally organized in 1907 and reorganized in 1913. It is capital- ized at £150,000 ($729,975), and its claims cover about 250 acres of land. This company has had many difficulties in management and has not progressed in recent years. The Compania Fortuna de Colquiri is another company that oper- ates in the same district. The total exports of tin "barrilla" from the Colquiri mines in 1918 was 105,145 kilos, with a total value of 288,935 bolivianos. 124 BOLIVIA; A COMMERCIAL AND INDUSTRIAL HANDBOOK. COROCORO. This, the most important copper-mining field in Bolivia, is located in the Province of Pacajes, Department of La Paz, and near the line of the Arica-La Paz Railway, from which a spur is run to the mines. The predominant rocks in the Corocoro field are reddish sand- stones. The ore bodies consist of layers of sandstone through which arc disseminated small particles of copper. Large sheets of native copper arc occasionally encountered. Most of the ores contain from 3 to 4 per cent of copper, though in parts they run much higher. Two companies are engaged in operations in this field — the Com- panfa Corocoro de Bolivia, a Chilean concern, and the Corocoro United Copper Mines (Ltd.), an Anglo-French company. Uompafiia Corocoro 38) ; reserve fund. £15,000 ($72,998): working fund. £10,000 ($48,665); fund for future dividends, £57,118 ($277,964); total resources, £257,118 ($1,251,265). The stock of ore in sight at tl ad of 1919 was estimated at 27,855 tons, with an estimated silver content of 1,911,500 troy ounces. During 1919, 8,129 metric tons of ore were produced. Of this quantity 1,880 tons were exported, with a metal content of 462,000 ounces silver, or an average of 77 "marcos" to the ton. The remaining 6,250 tons was sent to the ore dumps for later treatment. The latter was expected to produce ahout 445.000 ounces of silver. The company also plans to work the ores for lead and zinc, and to extract tin from the residues, which contain about 2 per cent tin. LLALLAGUA. Compaflia Estafiifera de Llallagua. — The Llallagua tin mines, the richest in the worm, are located in the Province of Bustillo, Depart- ment of Potosi. However, they are much nearer the city of Oruro than that of Potosi. They are situated on the opposite side of the mountain in which the Uncia deposits lie. A plan of the Llallagua- Ineia field, drawn up by Government engineers, is included in the mineralogical atlas published by the Ministry of Justice and In- dustry in 1912 as an appendix to the minister's annual report or "memoria." The Llallagua company is a Chilean corporation, which was organ- ized in 1906. The home offices are at Santiago. The coin pain is capitalized at £425,000 ($2,068,263) in £1 shares. Duncan. Fox & Co. act as agents of the company at Arica and Antofagasta. Only persons with the fullest confidence of the company are allowed to visit the underground workings at Llallagua. On April 29, 1920, 147,800 of the 425,000 shares were registered as belonging to Duncan. Fox & Co. and 41,043 shares to the English Banco Anglo-Sud- Ameri- cano. However, it is understood that Simon Patino has obtained a very large interest in the Llallagua. though the shares are not registered in his name. There has been a large amount of speculation in "Uallaguas" on the Santiago and Valparaiso exchanges. The highest price paid in 1918 was 292. During 1919 the stocks rose from 155 to 189£, but with many up-and-down fluctuations. Early in 1920 they reached 520, but on July 8 were quoted at 225 in Valparaiso. After the revolution in Bolivia on July 12 there was a further rapid decline in quotations of Chilean stocks, including "Llallaguas." The company has a concentration mill at Catavi, and a subsidiary owns the smelter at Arica, which has not, however, realized the expectations of its builders. Most of the barrilla produced is shipped to the United States for smelting. A new hydroelectric plant was recently installed. Most of the very modern equipment at Llallagua is American. Though the monthly output is from 1,400 to 2,000 tons of barrilla per month, the mill is being prepared to handle 600 metric tons of barrilla per day. MINING. 129 The tremendous productivity of Llallagua is illustrated by the following table covering the production of "barrilla" during the period 1911-1919: [Spanish quintal= 101.41 pounds; Chilean gold peso=$0.365; pound sterling=$4.8665.] 1911 1912 1913 1914 1915 1916 1917 1918 1919 Annual produc- tion. Spanish quintals. 83,082 80,768 114,938 117, 558 119,957 165, 534 249,589 394, 275 335, 270 Average monthly production Spanish quintals. 6,923.50 6, 730. 50 9,577.50 9, 796. 50 9,996.41 13,794.50 20, 799. 08 32, 856. 25 27, 939. 16 Cost of produc- tion per Spanish quintal. Chilean qold pesos, 22.95 24.2,3 33.96 24.31 25.92 21.42 19.01 20.65 24.39 Profit per Spanish quintal. Chilean qold pesos, 31.55 39.59 19.26 17.37 29.28 37.54 75.17 58.70 91.43 Average price of tin. £191 208 201 152 161 182 237 330 257 Annual profit. £196,598 239, 855 166, 056 153, 169 263, 404 466, 123 1,407,048 1, 735, 823 2, 299, 070 Dividends paid. £191,250 85,000 127, 500 63, 750 127, 500 340,000 637, 500 2, 018, 750 425, 000 The rate of dividends for the years 1916-1919 was as follows: 1916, 45 per cent; 1917, 100 per cent. The dividend for 1918 amounted to 475 per cent and for 1919 to 100 per cent. A 35 per cent dividend was paid for the first two months of 1920. The total dividends paid from 1906 to the end of 1919 amounted to £4,791,875 ($23,319,660), or more than 1,100 per cent on the capital stock. The production of ore and " barrilla" in 1918 and 1919 was as follows : Years. 1918. 1919. Ore. Metric tons. 99, 407. 8 91,333.9 Percent- age of tin. 17.09 14.71 Barrilla. Spanish quintals. 394,275 335, 270 Percent- age of tin. 69.94 68.52 The higher cost of production of ore for 1919 — 3.41 bolivianos per quintal, as against 2.38 bolivianos for 1918— was due to the shutting down of the mine during the prohibition of importation into the United States. The cost of production of " barrilla " placed in storage at the Catavi plant, including cost of sacking, was 34.79 bolivianos per metric quintal, or 16 bolivianos per Spanish quintal, in 1919, as against 11.48 bolivianos per Spanish quintal in 1918. On December 31, 1919, the ore reserves in sight were estimated at 406,073 metric tons, with an average tin content of 10.53 per cent, or a total content of 42,785 metric tons of tin. At the rate of 1,400 tons of 68 per cent "barrilla" per month, these reserves would furnish material for operations for three and one-half years. How- ever, new deposits are anticipated in the meantime. 44462°— 21 9 130 bolivta: a commercial and industrial handbook. The complete statement of the company's financial resources at the end of 1919 was as follows: Capital £425, 000 | $2, 00s. 203) Reserve fund 100, 000 (486, 650) Fund for future dmdends 1, 218, 643 (5, 930, 524) Fund tor new works 480,000 (2,335,920) Development fund 200, 000 (973, 300) Emergency fund 70, 000 (340, 655) Fund for eventualities 50, 000 (243, 325) Total 2, 543, 643 (12, 377, 637) An oil flotation plant has lately been installed by an American metallurgist for the purpose of separating bismuth from tin ores, with a view to the production of the former metal. MONTE BLANCO. Empresa Minera Monte Blanco. — These mines me located at a height of over 16,000 feet in the Quimsa Cruz region of the Province of tnquisivi, Department of La Paz. The claims of the Chilean company which owns them cover 213 hectares. This companv. whose home offices are in Santiago, was founded in 1906 and is capitalized at £280,000 ($1,362,620). There are large deposits of low-grade ores running from 1£ to 2 per cent tin. In 1918 exports from the Monte Blanco mines amounted to 267,830 kilos of barrilla, with a total value of 755,361 bolivianos. Nearly all of this was shipped to Great Britain. MOROCACALA. Penny <& Duncan. — The Morocacala tin-mining district lies about 25 kilometers southeast of Oruro, in the Province of Cercado. The mines are owned by the old British firm of Penny & Duncan. During 1918 this mine shipped out by Arica 1,285 tons of barrilla, running about 65 per cent, and in 1919 exported 1,759 tons. They are at present producing about 250 tons a month. The ores are concen- trated at Machacamarca. Though much of the equipment of the mine is old, important improvements are in process of installation. A new shaft is being sunk, and Diesel engines have been put in, effecting a saving of 20,000 bolivianos a month in cost of operation. The Diesel engines operate General Electric generators, from which the power is distributed through the mine. With the exception of the electric motors, the equipment is largely of British manufacture. OPLOCA. Companm Minera y Ayricola Op/ocn dt Bolivia. The properties of t his Chilean company are situated in the Chichas region in southern Bolivia and are tributary to the railway from Qyuni to Atocha. This company was originally formed in 1858, but was not registered m Bolivia until 1907. The company was first capitalized at 11 10,000 $681,310), which was increased by £60,000 in 1017 ($201,990), foi the purpose of developing its Tatasi and Portugalete properties. In L920 authorization was granted for the increase of its capital to E loo. ooo ($1,946,600). The home offices of the company are in Santiago, and there is a "junta consultativa, " or advisory board of directors, in Sucre, wherannosl of the stock of the old Guadalupe Company, which formed the nucleus of the Oploca. was held. MINING. 131 The company owns nearly 25,000 square miles of land. This vast property, which cuts athwart the road between Atocha and Tupiza into the Argentine, is an ancient "condado," the former estate of Diego de Arce y Chacon, Conde de Oploca, and later of his successors, the family of Yanez de Montenegro. Though much of the land is of little actual or potential value, the company has an ambitious scheme for the development of such of it as is capable of cultivation or of use for grazing purposes. American interests tried to buy the holdings a few years ago, and it was considered a " magnificent bargain" for the Chilean interests that secured them. The mining holdings are distinct from the bulk of the agricultural property, and consist of the properties at Chocaya la Vieja, Tatasi and Portugalete, and Choroma. The Chocaya mines adjoin those of the Araniayo-Francke company in the same field. The product at Chocaya is tin with some silver. The mine here has large ore reserves in a long, continuous ore shoot, and extensive developments are under way for the purpose of increasing production. A new shaft, known as the Socavon Oploca, is being sunk, and a new con- centration mill is to be built. A lixiviation plant for silver ores is already in operation. At Tatasi and Portugalete, which were for- merly large producers of silver, development and exploration work is going on in anticipation of the commencement of active operations. The company declares its investigations to be entirely satisfactory to the future productivity of this district. At Choroma, which as lies near Tupiza, reconnaissance work is also in progress, and a mill is being installed. The production of tin "barrilla" and "guia" (high-grade ore) by the Chocaya mine during the period between July, 1909, and June, 1919, was as follows: Years. 1909-10 1910-11 1911-12 1912-13 1913-14 Barrilla. Spanish quintals. 5, 586 10,540 18, 977 25, 258 28,652 Guia. Spanish quintals. 1,400 7,700 7,351 Years. 1914-15 1915-16 1916-17 1917-18 1918-19 Barrilla. Spanish quintals. 35,556 44,440 40,040 43,560 50,600 Guia. Spanish quintals. 4.S51 7,240 4,840 1,320 1,320 The "barrilla" produced in 1918-19 had a tin content of 59.4 per cent, and the "guia" averaged 57 per cent tin. Profits for the year 1918-19 amounted to £77,451 ($376,915). For the year ended June 30, 1915, they were £38,475 ($187,239), and for the year 1915-16, £57,629 ($280,452). The following dividendswere declared for years ended June30: 1915-16,45 per cent; 1916-17, 45 per cent; 1917-18, 60 per cent; 1918-19, 45 per cent. The maximum quotation for "Oplocas" on the Valparaiso ex- change in 1918 was 105. In January, 1920, they were quoted as high as 206, but by July 8 had fallen to 143. OKURO. An important mining district is located in the range of hills on the outskirts of the city of Oruro. These hills rise about 1,200 feet above the level of the table-land and were worked for silver from 132 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. very early in the Spanish regime. The production of tin has partly compensated for the falling output of silver, as at Potosi.. The concern which formed the nucleus of the Compania Minora de Oruro was established in 1879 to work the old Socavon de la Virgen mine. During the eighties the old Itos-Atocha and Colorada mines were acquired. The company was reorganized in 1912. It is a Chilean company, with home offices in Santiago, and is capi- talized at 4,000,000 bolivianos. The ores exploited in the cerro at Oruro are pyrite veins holding silver and tin. The ore runs about 1.3 per cent tin and 15.20 marcos of silver to the ton. The tin ores from the company's mines are sent to Machacamarca for treatment at its concentration plant. The higher-grade silver ores are sent to Tacoma, Wash., and the low-grade ores are sent to Chile for reduction. The company has a contract with the American Smelting & Refining Co. to take its tin barrilla. Quantities of copper cements are also sent to Tacoma for treatment. Most of the equipment used is American and German. At Oruro three Diesel engines of, respectively, 360, 200, and 130 horsepower are used. In 1919, 386 tons of crude oil were consumed, at a total cost of 119,574 bolivianos, two gas engines are used at Machacamarca. During 1919, 639 tons of anthracite were burned, at an expense of 134,341 bolivianos. Additional equipment of American manufacture has lately been installed at Machacamarca. The mines are unsteady producers, and doubts have been expressed as to whether the quantity of ore remaining is sufficient to justify the renovation of the company's equipment. The ore reserves at the end of 1919 were estimated at 96,980 tons, with a silver content of 33,420 kilos and a tin content of 1,960 tons. The comparative production of silver and tin in 1918 and 1919 was as follows: Silver sulphides— 1918, 16,979 kilos fine; 1919, 14,192 kilos. Tin— 1918, 1,110 tons, 59.41 per cent tin; 1919, 1,020 tons, 58.95 per cent tin. Copper cements shipped in 1918 held 30.6 tons of copper, and in 1919, 19 tons. The net profit of the company in 1919 was 585,768 bolivianos. The accumulated dividend fund on January 1, 1919, was 1,730,359 bolivianos. The total funds at the disposal of the company — 1,984,708 bolivianos — were distributed as follows : Bolivianos. Transferred to reserve fund 5, 909 Fund lor increment and eventualities 1, 952 Dividends: Sept. 4, 1919 323, 077 Mar. 9, L920 356,250 Retained in dividend fund 1, 297, 520 Total 1 . 984, 708 According to the annual statement for 1919 the resources of the company at the end of that year were as follows: Boli\ ianos. Capital t, ooo. ooo Reserve fund 300, 000 Fund for Lncremenl and eventualities I, 510, 000 Fund Eor future l and 62. CHILEAN. The Compafifa Petrolifera Caupolican y Calacoto, with home office at ( lalle Bandera 231, Santiago, Chile, has a capital of £600,000 ($2,919,900), divided into 1,200. 000 shares of Ids. each: 196,000 of these shares belong to the former shareholders of the two com- panies whose amalgamation constituted the present company, namely, the Compafifa Petrolifera de Hulluncayani and the Com- pafifa I'liion de Calacoto. PETROLEUM. 143 In the Calacoto district the company holds 5,000 hectares, which formerly belonged to the Compania Union do Calacoto. In the Caupolican district the company holds 127,400 hectares in the country about the River Tuichi, an affluent of the Beni. It is also negotiating with J. Backus for more lands in the same general region. TRANSPORTATION PROBLEMS. Calacoto field. — The transportation problem for this district is greatly simplified by the nearness of the Arica-La Paz Railway. Caupolican field. — Oil from this field would have to be taken out by way of the Beni, the Madeira-Mamore Railway, and the Amazon. Colonias field. — The Richmond Levering people consider the laying of a pipe line from this field to Cobija, where the Rio Acre is navigable for large steamers. Beni and Upper Santa Cruz fields. — Any oil found in these regions will be sent out through the Amazon tributaries and over the Madeira- Mamore Railway into the Amazon. Santa Cruz-Chuquisaca-Tarija fields. — Richmond Levering & Co. propose to take out oil and bring in machinery and supplies across the Chaco, with Puerto Pacheco (Bahia Negra) as their base on the Paraguay River. They would run a road across the Chaco almost due west from Puerto Pacheco, with artesian wells at regular intervals. They contemplate the use of tractors, especially in the initial stages of the work. Their pipe line would be laid along this same route. The alternative to this is the old road south from Lagunillas and Santa Cruz to the Argentine railhead at Embarcacion. For the field which lies to the west and northwest of the city of Santa Cruz, the transportation problem is extremely difficult, not only because of the great distance from either the Paraguay River or the terminus of the Argentine Central Northern Railway, but because of the mountainous character of the country itself. Braden's plans include the construction of a railway from Sucre to the Pilcomayo River at some point between the small forts of Magarinos and Esteros, which would enable him to send out his oil through the Parana River by the Argentine port of Formosa. Such a line would pass through the towns of Villa Montes and Machhereti and would keep to the north side of the Pilcomayo as far as the point to be designated for the place of crossing. Here it would make connections with a branch of the Argentine State railway that is being built in from Formosa with Embarcacion as its ultimate objective. It may be added here that schemes for piping petroleum from the eastern Bolivian fields across the Andes to Chile are entirely imprac- ticable, as this would imply raising the oil a height of about 13,000 feet, and petroleum is also too heavy to be siphoned across. The natural and easy gradient from the fields to the River Plate fluvial system makes this the logical outlet for the Bolivian oil fields. STOCK RAISING. INTRODUCTION: LIVE-STOCK STATISTICS. Though stock raising is widely carried on in Bolivia, the industry is in much the same backward state of development as is agricul- ture. The greatest need in the country at present is the introduction of better breeding animals from abroad. However, a be ginnin g is being made on a small scale in the importation of high-class boars and rams from the United States. Stock is raised in considerable numbers on the altiplano, but the part of the Republic best suited by nature to the industry consists of the plains that extend from the lacuma region of the Beni south to the Chaco lowlands along the lower Pilcomayo. Not even an approximate estimate of the number of live stock in Bolivia is possible, but the National Ministry of Agriculture is now preparing such a census on the basis of data sent in by local officials throughout the country. The data collected by the middle of 1020 covered only a few- Provinces of the Republic. Some of the results were as follows : Department of Coehabamba: Provinces of Annie. Ayopaya, Campero, ami Totora — Cattle :: » 8 1 1 Sheep 260 •-'"< Goats 50,442 Hogs , 1^-852 Department of Santa Cruz: Provinces of Cordillera and ( hi- quitos — Cattle 39,202 Sheep 2 - " ■' GoatJ 2,939 Department of Tariia: Provinces of Gran Chaco and Aviles— rattle 21,597 Sheep 82, 779 A census made in 1912 of the live stock in the Provinces of Tomina, Yamparaez, and Cinti, Department of Chuquisaca, by the National Department of Statistics gave the following results: Caul- 113,679 Sheep 200,782 Mulee !) - L45 However, the Province of Azero has more live stock than any one of these Provinces. A Government veterinary surgeon gave the following figures in L919 for the live stock of the three Provinces of Cercado, Mendez, and O'Connor, Department ofTarija: Burros 21, 657 Goata 89, L18 Hogs 2 Live stock. Cattle Hoi I M ill Buna II Cercado. 1,706 1,009 173 17,050 11,900 910 Mendez. 9,420 3,009 •jo, H:t:. O'Connor. I 11 STOCK RAISING. 145 A census of the Province of Cercado, Department of Oruro, taken in 1914 by the departmental government, gave the following results: Horses 59 Mules 49 Burros 5, 231 Cattle 5,446 A census taken of the Provinces of Cercado and Sicasica, Depart- ment of La Paz, in 1910, gave the following results: Sheep 149,625 Llamas 33, 446 Alpacas 217 Goats 103 Live stock. Sheep . Cattle. Mules. Hogs.. Cercado. 38,712 8.816 1,117 1,224 67,998 2,392 303 1,04D CATTLE. The breed of cattle in Bolivia largely consists of the degenerate descendants of the old Creole stock of Spanish times. Through lack of care and unrestricted interbreeding this race of cattle has steadily deteriorated, and to-day a typical steer of this variety will weigh, dressed, only 400 to 450 pounds. They are the long-legged and long- horned cattle everywhere common to this class of animal. Some of the stock bred for oxen attain to a good size and weight, and though they are often slaughtered for beef after a long period of service, their flesh has acquired a consistency that scarcely makes it prime meat for eating purposes. PLATEAU REGION. It is unfortunate that in Bolivia the lands best adapted to the raising of cattle are situated in the eastern part of the country, being thus far distant from the chief centers of population on the plateau. However, most of the demand of the plateau cities is supplied by cattle bred on the altiplano, though considerable numbers are brought to Oruro, Potosi, and Uyuni from the valleys about Cochabamba and Sucre. Most of the estates of the La Paz section of the table-land raise a few head, but there are no large herds in that region. There is not sufficient pasturage for large numbers of cattle, except in cer- tain parts of the Province of Carangas, where there are large tracts of grassy country bordering the streams of the Desaguadero-Poopo system. The growth of scrub grass which covers much of the table- land furnishes adequate grazing for the limited herds during the rainy season, but the feeding problem may become serious during the dry months, when the altiplano takes on a brown and parched aspect and the streams have run dry. Little alfalfa or other forage is cultivated as food for cattle. TEGION OF COCHABAMBA. In the more temperate region of Cochabamba stock raising ranks next to agriculture among the industries of the Department. The extent of pasture lands is restricted, however, and herds are small, there being seldom more than 200 or 300 in a lot (and even herds of 44462°— 21 10 146 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. this size are rare). Difficulties of communication with the plains country to the northeast, which is well Buited to cattle raising on a large scale, arc such as to prevent the bringing of cattle from that region to the Cochabamba market. The cattle raised in the Beni are consumed locally, sent down river into Brazil, or driven via Santa Cruz south into northern Argentina, particularly to Salta. Those animals killed in the "mataderos" of the towns in the Department of Cochabamba are mostly old oxen that have outlived their useful- ness as draft animals, or are steers thai are too small for draft service. Some cattle are also brought in from the Vallegrande district, which lies a long way to the southeast of Cochabamba. Very few are driven in from the region about Santa Cruz. Weekly cattle fairs are held in nearly all the towns about Cocha- bamba, as well as in the capital itself. The largest of these cattle markets is that of Quillacollo, to which about 500 head are brought each week, as against about 400 for the Cochabamba market. How - ever, only a few of the animals are sold, the unsold majority being driven back to the country, to be brought in again to the next week's market. Prices for this class of stock, which weighs from 400 to 450 pounds, dressed, range between 100 and 200 bolivianos. It is reported that 55,677 head of cattle were killed in the public "mata- deros" of Cochabamba during the eight-year period 1911-1918. During 1919 there were killed 7,300 cattle, 34,303 sheep, and 4,384 goats. The hides of all cattle killed within the city are required to be turned over to the municipality, which auctions off to the highest bidder the right to sell them. However, because of the prevalence of the foot-and-mouth disease in the Department, the quality of the Cochabamba hides has deteriorated considerably of late. Little attention is paid to dairying, and the native breed of cattle, moreover, yields milk of poor quality. SUCEE DISTRICT. Though the area of grazing lands in the mountainous country of the Sucre district is limited, a surplus of cattle is raised for shipments to other parts of the country. Excellent oxen are bred in this region. Owing to the lack of pasturage, there are almost no cattle in the Yungas country, and meat is brought in, dried, from La Paz. An experiment of bringing eat lie from the Beni failed because of the great distance over which if was necessary to drive them. BOLIVIAN AMAZONIA. There are vast areas of land in the Bolivian Amazonia that are suited lor the raising of cattle on a large scale. The largest single extent of pasture lands is in the Mojos plains between the upper Beni and t he Mamore, all hough t here are also wide expanses of open coun- try in the [tenez district. These plains are covered with a luxuriant growth of grasses, and there is generally a plentiful supply o\' water throughout the year. The stock of cattle in the Mojos region is variouslv estimated at from 250,000 to I, ()()(),()()() head. These consist of the old Creole breed which is so common in the more undeveloped parts of South America. There are also large numbers of wild cattle, or "ganadu bravo," which graze on the prairies in the neighborhood of the forests. STOCK RAISING. 147 into which they escape when pursued. However, cattlemen are making an effort to domesticate these wild herds, which belong to anyone on whose lands they may happen to be at a particular time. There are seldom more than a few hundred head of cattle in the herds of tame stock, though there are some herds of 5,000 to 7,000. One of the principal difficulties in raising cattle in the Bern arises from the periodical inundations of wide expanses of the plains on which the herds graze. However, there are generally rises of ground within reach to which cattle can be driven above the level of the floods, and, moreover, the depth of water on the open prairies is seldom great enough to cause losses from drowning. Much could be done, too, by ditching parts of the land, so that the water could flow off more quickly. The lack of salt is another problem that faces the "ganaderos" of the Beni country, and rock salt has to be brought in from the Oruro and Uyuni districts of the plateau. The "fiebre aftosa" or hoof-and-mouth disease has caused considerable damage to cattle in the Beni, though a remedy devised by a German chemist in Cochabamba has been tried with success. Some cattle are killed by jaguars, but more are probably lost as a result of bites by poisonous snakes. . Improved methods of breeding are greatly needed m the Bern, as everywhere in Bolivia. There is little selection of breeding stock, and no foreign bulls have been introduced. Because of the lack of care of the herds an abnormal percentage of the calves die each year. The wiring of pasture lands is unknown. The lack of a larger market has been one of the great obstacles to the development of the cattle industry in the Beni. The cattle country of the Mojos region supplies the rubber districts along the lower rivers with beef on the hoof or in the dried form as "charqui/ but this is a very restricted market. Buyers from the Argentine also come north each year bv way of Santa Cruz and drive back from 1,000 to 3,000 head of cattle. Some are sent across into Brazil, and in 1917 one lot of 40 was shipped as far as Para with good results. The export duty on cattle is, respectively, 12 and 15 bolivianos for male and female stock. There is also a dutv of 2 bolivianos on each hide shipped out of the Department of El Beni. Most of the hides exported from the Department are sent to Cochabamba. A few years ago cattle in the Beni sold for 5 to 10 bolivianos a head, but they now bring up to 100 bolivianos. One of the most serious needs of the cattle business in tins region is improved connections with the large market of the plateau, which would enable cattlemen to place their stock in Cochabamba. At present the lack of food in the heavily forested country that inter- venes between the Chapare plains and the mountains which hem in the Cochabamba vallevs on the north makes the driving of cattle over the Todos Santos trail out of the question. The only alternative route is the roundabout way by Santa Cruz and Totora. This would necessitate the establishment of feeding grounds at regular intervals along the road, and, even with this precaution, losses would inevitably occur. In 1920 a representative of American packing interests visited the Beni and Santa Cruz regions with the object of studying the conditions of the cattle industry in that region and the possibilities of bringing cattle thence to Cochabamba, where the establishment of a packing plant was considered. A road is also 148 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. being built from the Borja plains of the western part of the Rio Beni Basin to Coroico in the lungas lor the express purpose of bringing cattle to the plateau in the region of La Paz. Tnis is a private enterprise in charge of a German. DEPARTMENT OF SANTA CRUZ AND REGION TO SOUTH. Stock raising is at present the most important industry of the Department of Santa Cruz. In the plains country there are wide areas of lands covered with high grass, on which Large herds of cattle i'cvi\. In the Chiquitos region to tin 1 east herds are smaller, hut the pasture lands are sufficient to accommodate a far greater number of cattle. Parts of the Beni and the northern Provinces of Argentina are the only outside markets for the cattle of Santa Cruz. ana it is the limited capacity of this market that constitutes the principal impediment to the expansion of the industry. It is im- practicable to drive cattle in any considerable numbers over the mountains to Cochabamba. Large numbers of hides are, however, sent to Sucre and Cochabamba as sole leather. The breed of cattle is still comparatively small and of late has suffered much from hoof- and-mouth disease. A large proportion of calves also die from the blowfly. With the present lack of incentive, little is being done toward improving the breed of stock. The cattle region of eastern Bolivia continues south from Santa Cruz in the belt lying to the east of the Andes foothills and extending down into Tarija and thence southeast into the Chaco country along the lower Pilcomayo. There is much good pasture in this region, espe- cially in the Tarija valleys and along the Pilcomayo. There are several huge properties in this area. The Leach Bros, estate of La Esmer- alda on the Pilcomayo has more than 5,000 head of cattle, and the German firm of Staudt & Co. has 17 ranches in the neighborhood of Villa. Montes. They have wired "potreros" or pastures, and have dug a number of wells 8 to 30 meters (26 to 98 feet) deep. There is considerable cattle stealing in some parts, and it is estimated that about 17,000 head are driven across the lower Pilcomayo into Argentina each year for the purpose of escaping the payment o\' the export duty. In 1918, 14,253 bulls and steers and .V_>2 cows were exported through Yacuiba into Argentina, and in the first four months of 1919 exports amounted to 3,701 bulls and steers and L12 cow t s. A certain amount of Texas fever, boof-and-mouth disease. and carbuncle is prevalent in this region. EXPORTS AND IMPORTS. During 1918 a total of 17,114 head of cattle were exported through the Bolivian customhouses. These cattle represented an official value of 1,540,260 bolivianos. Tie 1 proportion shipped to Argentina, Brazil, and Chile was, respectively, 86.51, 9.72, and 3.77 per cent. Between L914and L918 exports of cattle increased by over 667 percent. Exports by Departments were as follows: Santa Cruz, 7A77 head: Tarija, 3,967; Chuquisaca, 3,384; El Beni, 1,425; others, 761. During the same year 3,852 head of cattle were imported, most of them from Argentina by way of Villazon; and 1,913 head were driven through Yilla/.on on their way across to Chile. In 191 9, 20,600 cattle, valued at 1,854,000 bolivianos, were exported. STOCK RAISING. 149 In 1918, 484,867 kilos of hides, to a value of 387,893 bolivianos, were exported. Tarija, Chuquisaca, La Paz, and Santa Cruz were the largest shippers, in the order given. The proportion sent to the different importing countries was as follows: Great Britain, 51.12 per cent; United States, 25.05 per cent; France, 14.90 per cent; and the remainder to various South American countries. Imports of canned and prepared meats of various kinds amounted to 31,375 kilos, with a value of 29,565 bolivianos. In addition, 70,721 kilos of "charqui" or sun-dried beef was imported. The largest imports of meat products were from Brazil and Chile. Of condensed milk, 817,472 kilos were imported, to a total value of 245,242 bolivianos, of which 643,497 kilos came from the United States, Peru ranking second. Of butter, 66,063 kilos were imported, largely from Peru, Argentina, and Denmark, though 3,693 kilos were imported from the United States. Imports of cheese amounted to 22,728 kilos, mostly from Chile and Argentina. SHEEP AND OTHER WOOL-BEARING ANIMALS. In spite of the adaptability of much of the country to the raising of wool-bearing animals, the development of the foreign wool trade of Bolivia is of quite recent date, only about 17,000 kilos of sheep's wool having been exported in 1910 and 1911. Though there has been a very marked increase in the exports of wool during the past decade, much remains to be done before the sheep-raising industry is put on such a modern basis as it has reached in countries like Argentina and Uruguay. SHEEP. Though sheep are found throughout the highland region of Bolivia, little serious attention is given to their breeding. The stock consists of the old degenerated merino breed brought in by the Spaniards and allowed to increase and deteriorate with what little care the Indian shepherds are disposed to give to their flocks. These flocks vary in size from a few sheep to 8,000, flocks of the latter size being very rare even in the Department of La Paz, which is the center of the sheep-raising industry of Bolivia. There is ample pasturage and water over large areas of the upland departments to support many times the number of sheep now grazing there. The wool taken from these sheep is short, the clip from each animal averaging little- more than 2 pounds of washecl wool. The sheep are generally sheared once every two or three years. A sharp- ened piece of glass or tin is used for the operation, and the natives refuse to adopt the use of shears. A lot of a hundred shears, which were brought into the country a few years ago, found no sale, even though the importer made a personal demonstration of their use. LLAMAS. There are probably half a million llamas in Bolivia, where they constitute the traditional pack animal of the Indian population. They are sheared at. intervals of from two to five years, though many are never sheared until after they are dead. When sheared every two years, each llama gives about 5 pounds of wool. The wool is somewhat coarse and is very dirty, the natives employing it very widely in their weaving. Llama wool brings about the same price in Bolivia as unwashed sheep's wool. 150 BOLIVIA: A COMMERCIAL WD IXDI'STRIAI. 1 1 AXIH'.OOK. ALPACAS. There arc probably aboul 200,000 alpacas in Bolivia, though no effort has ever been made by the Government to take a census of either the alpacas or the llamas in the Republic. The animal belongs to the same family as the llama and the vicuna, but its legs are shorter than those of tin 1 llama. The alpaca flourishes only in cer- tain districts, the most favorable to its growth being the region about Lake 1 Titicaca and the Province of Carangas in the Depart- ment of OrUTO. The centers of the alpaca wool trade are Charana and Puerto Acosta. The former town lies on the line of the Arica- La Paz Railway at the point where it crosses the border into Chile, and serves as the outlet for the alpaca wool supply of the Carangas country. Puerto Acosta is situated on Lake Titicaca. The Bolivian Government has been desirous of stimulating the raising of alpaca-, and a few years ago gave a concession for that purpose to an Ameri- can named Thaumann. The Bolivian Wool Co., which was organ- ized by Thaumann, was later acquired by the British firm of Duncan, Fox & Co., of La Paz, but nothing has been done to comply with the terms of the concession beyond the maintenance of a single alpaca on the property near Lake Titicaca, which was originally granted to the company. Most of the herds of alpacas belong to Indians, who give them little attention, but who at least understand the peculi- arities of the animal and are able to domesticate it. A more careful study of alpaca raising has been made in the Arequipa district of Peru than has been made in Bolivia. It is customary to shear the herds every two years, though many are sheared at much longer intervals — even of five years. About 10 pounds of wool is generally sheared from a single alpaca. The most common colors are the various shades of brow T n. Blacks are also common, but the white animals are much rarer. In addition to their use as material for clothing, rugs are made of alpaca skins. These rugs, which are used as bed coverings, sell for 100 to 200 bolivianos, depending on size and color. The alpaca is sometimes crossed with the llama, the wool of the hybrid animal being sold as alpaca wool. A small clip of alpaca wool was anticipated in Bolivia in 1920, since the Indians refuse to shear their herds when their Crops are good. WOOL TRADE. Exports of wool from Bolivia for the period from 1911 to dune. 1919, were as follows: 5 eai . Shoe] wool. Vlpaca wool. Llama wool. Kilns. 1 ill IS. Hnii\ lanos. Kilos. Bolivianos. 1911 16,956 17.(117 21,360 31,798 .V., s7.( mi. no 157,926 ■ 12,284 li, 190 18,679 •J:"., 138 61,561 91,269 i 139 i 12 17 1,670 24,912 77, 131 127,281 191,806 101,779 17 14,010 74,736 16 ! i.' 208,913 341,97 i ni i 1. 199 1 1,973 II, 146 67, 194 i Hi. :.7 1 L28,872 3,:c.'i I'M , ii. pur i'i'- 1919 ... 198, 513 105,990 STOCK RAISING. Exports by countries for 1918 were as follows: 151 Kinds of wool and countries of destination. Sheep wool: United States. Great Britain. Chile France Argentina Pern Alpaca wool: Great Britain. Chile United States. I'eru Llama wool: Chile Great Britain United States 382, 433 261,889 30. 542 28. 543 22,040 130 102, 7S8 79,686 9,238 94 53,418 51,710 41,446 Bolivianos. 726, 651 352, 301 9,177 28, 543 22, 263 165 242, 492 69,315 24,927 240 40,965 81,341 76,207 Percentage. 63.80 30.91 .81 2.51 1.96 .01 72.66 20.27 7.00 .07 20.63 40.97 38.40 The export duty on sheep and llama wool amounts to 20 centavos per kilo, and for alpaca wool the duty is 30 centavos per kilo. Imports of woolen goods into Bolivia are shown in the following tables : CASHMERES. By years. By countries, 1918. Years. Kilos. Bolivianos. Countries. Bolivianos. 1914 45,043 156,542 131,104 118,655 275,426 403,875 262,687 1915 50,233 1916 40,917 1917 108,518 51,082 46,605 9,649 1918 168,190 BAYETAS" (BAIZES). 1914 1915 1916 1917 1918 252, 632 92,726 102,278 77,186 65,916 651,815 240, 521 254,923 202, 160 173,225 Great Britain 163,806 Peru 6,892 Chi'e 2 >509 WOOLENS, IN GENERAL. 1914 1915 1916 1917 1918 64,079 4,953 32,559 17,291 19,567 Argentina Great Britain United States Spain 10,512 3,212 2,901 2,442 WOOLENS MIXED WITH COTTON. 75,650 631 511 1,136 2,510 161,421 2,986 1,941 4,317 9,239 7,852 1915 699 1916 1917 1918 152 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. HOGS. The raising of hogs has been little developed in Bolivia, in spite of the fact i luii Bome regions, both on the altiplano and in the eastern plains country, arc excellently adapted to them. They should do especially well in the region about Lake Titicaca, in the Cochabamba and Sucre districts, and in the Santa Cruz and Beni plains. Manx of the hogs now raised run to bone rather than to meat, though the problem of feeding them should not be a difficult one. The natives are little accustomed to the eating of pork. In 1918, 137 hogs were exported to Argentina, and only 11 hogs were imported. Imports of lard in the same year amounted to 353,373 kilos, of which 181,191 kilos came from Brazil and 87,340 kilos from the United States. GOATS. Goats could be raised with great success in the "montana" region, particularly in the Yungas, and in Chuquisaca and Tarija. Great numbers of them could pasture on the mountainsides of the Yungas. where at present the people suffer from the lack of a meat diet. In 1918, 400 goats were imported into the Department of Tarija from Argentina. BURROS, MULES, AND HORSES. Burros and mules are used in large numbers for pack-train work in Bolivia. Whereas most of the burros are bred within the country, the majority of the mules used are brought in from northern Argen- tina. There is an excellent opportunity for the breeding of mules in Bolivia in such districts as the Mizque Valley, southeast of Cocha- bamba, and in some parts of Santa Cruz, Chuquisaca, and Tarija. Little attention is given to the raising of horses in Bolivia. They do not thrive on the high altiplano, and in the plains country they suffer from the disease known as "mal de Cadera" or "peste de lomo," which attacks the spinal cord and is generally fatal. They are little used for farm work, most of which is performed by oxen, and few are kept for riding, for which purpose the hardier and more sure-footed mule is everywhere preferred. However, a few hundred horses are used by the army. In parts of eastern Bolivia bullocks are much ridden. During 1918, 21,702 horses and mules were imported into Bolivia, the great majority of them coming from Argentina. FUR-BEARING ANIMALS. The principal fur-bearing animals of Bolivia comprise the vicuna, chinchilla, and fox. The vicuna, a wild member of the same family to which tin; llama and alpaca belong, is found among the mountains throughout the plateau country, though in diminishing numbers. It is much smaller than either (he llama or alpaca and has a very fine, silky wool of a tawny color. It is hunted by the Indians, who either weave its wool into a very attractive poncho or use it> skin for the manufacture of "colehas" or rugs, which are much sought after- for bed coverings. These rugs, aboul I by 6 feet, now sell for lot) to 250 bolivianos each, depending on the part of the skin from which the piece is taken. I yum is the largest market for this ami ot her classes of furs. STOCK RAISING. 153 The chinchilla is found in the more remote parts of the Cordillera Occidental, from the Atacama country in the south up to the Prov- ince of Pacajes. Most of them, however, live in the region of Mount Tatasabaya, in the Province of Carangas, where a large area of ground is' covered with large rocks, among which the chinchillas make their homes. In spite of the law prohibiting their taking, they are fast disappearing, being trapped by Indians (who under- stand their habits and know their haunts) and clandestinely exported. There have been a few projects to domesticate them on "chinchilla farms," but none of these schemes have been put into practice. The animal known as the " chinchillon " is a member of the same family, as is the vizcacha, though their fur is inferior to that of the chinchilla. The chinchillon is smaller than the chinchilla, but the texture of its fur appears quite similar to the touch and has the same bluish-gray color, though shorter than the fur of the chinchilla. The red fox is found in many parts of Bolivia, and numbers of the skins are sold in La Paz, especially by a German firm, which does a good business in skins and furs of various sorts. AGRICULTURE. GENERAL CONDITION OF THE INDUSTRY. Agriculture has held a relatively unimportant place among Boliv- ian industries as compared with mining, to which everything else has been subordinated. In fact, in many districts farming condi- tions have improved little, if any, since colonial or even pre-Spanish times, and in some respects have positively retrograded from the conditions under the regime of the Incas. The attention of the leading whites has been largely given to mining, or to politics and the professions, and the agriculture of the country has been left almost entirely in the hands of Indian tenants. The Indian is not only impervious to any progressive ideas that would go to improve tin 1 agriculture of the country, but he lacks even the paternal direc- tion which he received from his Inca overlords before the coming of the Spaniards. Until very recently the Government did next to nothing for the industry, and its efforts at present are entirely incommensurate with the needs of the country in this regard. A Ministry of Agriculture was created a few years ago and annexed to the Ministry of Public Instruction. However, the budget of 1920 provided only 453,440 bolivianos for the Ministry of Agriculture, as against 11,316,444 bolivianos for the army. This branch of the Government is at present under energetic and intelligent direction and is doing all within the power of its limited resources to improve the backward state of farming in the country. As throughout most of South America, there are comparatively few small landed proprietors in Bolivia. Most of the land is held in large tracts by men of predominantly white or Spanish race. However, in certain districts there are scattered Indian Landowners, and in some parts, as in the Province of Carangas, the communal system of land ownership still survives. Here the title to huge areas has remained in the hands of the Indians, who jealously guard their rights to the land. The tenant or farm-labor class everywhere consists of Indians or low-caste cholos. The status of these tenants varies considerably from place to place. There is Little positive ill- treatment of this class, though the major-domos who administer i In' estates in the absence of the owners maj sometimes be guilty of abuses. The tenant turns over to the owner a certain proportion til' the year's product, varying from one-fifth to one-third, lie is generally free to dispose of his own share of tile proceeds as he pleases. lie also generally lias his own " chacra " or small plot of ground, where he raises enough food to supply tin* needs of himself and his family. Not only is the Indian farmer by nature impervious to suggestions for improving his farming methods, but he bitterly resents any attempt t<» change his traditional ways, even to his own manifest advantage. The Aymarfl of the La Paz region is particularly con- servative in tin- regard. A lew years ago a young Landowner, who 154 AGRICULTURE. 155 had studied abroad, attempted to put into practice on his estate on the altiplano the modern method he had learned in a foreign agri- cultural school. However, his reforms provoked an uprising of the "indiada" on his lands and his own murder in his country house, which was destroyed by the infuriated Indians. Yet there is an increasing tendency among the wealthier pro- prietors to send their sons abroad, especially to the United States, for an agricultural education. This realization of the value of applying modern scientific methods to an industry that is still generally conducted in medieval fashion is one of the most hopeful signs in contemporary Bolivian life. As" a complement to this move- ment there is seriously needed a wider development of agricultural education within the country. At present this is confined to the agricultural school and experiment farm in process of formation near Cochabamba and to the rural normal schools like that at Sacaba. Though these institutions represent a splendid conception, they lack the equipment and teaching personnel required to enable them to render the needed service to the national agriculture. Moreover, the mass of the country population should be reached tlirough a wide- spread system of rural schools, such as were created in the Philip- pines by the American administration. AGRICULTURE ON THE "ALTIPLANO." Generally speaking, Bolivia may be divided agriculturally into three zones — the altiplano or plateau, the Yungas or montana, and the eastern plains. On the bleak altiplano, where agriculture has been carried on since prehistoric times, a surprisingly large area is under cultivation. The level plain of the great table-land lends itself well to the growth of the hardier cereals, such as barley. However, with improved methods and an extension of the farming area, the production could be greatly increased in this region. Much of this country could be plowed with tractors, though the high price of fuel oil is a serious obstacle to their use. It must also be taken into consideration that the high altitude— about 12,000 feet above sea level — requires a special type of engine in power machinery. In the plains of Carangas, which lie well to the west of the railway in the Department of Oruro, there are large tracts of land that could be put under cultivation and there are parts of it that could be irrigated for the raising of alfalfa. Much of this land is free from stones, whereas in other parts of the "meseta" it is often necessary to clear the ground of bowlders before cultivation is possible. Large sections of the altiplano are unsuited for agriculture because of the alkaline character of the soil, as in the vicinity of Oruro and of Uyuni,. where the ground is highly impregnated with salt. Other parts are liable to inundations during the rainy summer season, the water standing too long to permit the maturity of crops before the coming of winter. Though during the winter months the days are generally warm and sunny, the nights are cold and the temperature often falls below freezing. Moreover, during this time of the year strong winds often blow off the cordillera and across the table-land, chilling the air and damaging crops. The Indians who dwell In the mountains utilize all the land within reach for cultivation. Sometimes they will pick the stones off a 156 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. piece of ground, and use them to build an inclosure around the plot thus cleared, in order to protect their crop of barley against the wind and roving animals. In many places among the mountains the traveler will see patches of cultivated land high above the trail on the mountainside, where the slope is so steep that a foothold would scarcely seem possible. In one valley of the montafia region a native landowner facetiously remarked to the writer that corn was planted thereabouts with a snotgun fired from below and harvested from a rope ladder let down from above. A census taken in 1914 by the prefectural administration of the Province of Cercado, Department of Oruro, will give an idea of the ■part nn that pa extent of agriculture in that part of the plateau: Area of Province hectares. . 514, 300 Area under cultivation do.... 8, 54] Value of land bolivianos. . 2,389, 500 Income from land do 259, 592 Numlior of properties 100 Harvest fur year: Barley.'. , . . . quintals. . 141, 250 Potatoes do 78, 902 Chuno (desiccated potatoes) do 39, 687 Quinua do 7, 893 DEPARTMENT OF COCHABAMBA. CLASSES OF LANDS— AREAS CULTIVATED AND INCOME DERIVED. Agriculture is most highly developed in Bolivia in the valleys lying below an altitude of 10,000 feet above sea level. The mosl advanced farming region is that of Cochabamba, which is essentially an agricultural country, mining occupying a comparatively unim- portant place among the industries of the Department. The harvests of 1920 in this district were exceptionally large. In general, the agricultural lands of the Department of Cochabamba may be divided into four classes — mountain, valley, Yungas, and tropical lowlands. The first class consists of the patches of land on the sides and summits of the mountains, where the Indians grow barley and a few potatoes and quinua — crops adapted to the rigorous climate of the higher altitudes. The second class of lands, on which most of the agricul- ture of the Department is carried on, consists of fertile valleys, where the extent of cultivable land and the conditions of soil and climate combine the elements favorable to an intensive farming development. The Yungas region, lying between the highlands and the plains of the Beni, has been little developed, though its valleys are highly favorable to the cultivation of such plants as coffee, cacao, and tobacco. At present its principal product, and the only one to whose cultivation any attention is given, is coca, mosl of the output being chewed by the natives of the Department. Below the region <>f the Yungas the plains that stretch away to the Department of the Beni are adapted to the cultivation of sugar cane, cotton, and rice. However, agriculture at present in this area is largely limited to the fields about the Franciscan missions, cultivated by the Yuracare neophytes under the direction of the friars, hut the results obtained even on this restricted scale have demonstrated the larger possibilities of the region. Special Agents Series No. 208. FIG. 15.— PRIMITIVE MACHINE FOR CRUSHING SUGAR CANE. igSBMBSK FIG. 16.— THRASHING PEAS IN THE COCHABAMBA REGION. Special Agents Series No. 208. FIG. 17.— COCA TERRACES IN THE YUNGAS, BEFORE HARVEST. J* %*>+ FIG. 18.— COCA TERRACES, AFTER HARVEST. AGRICULTURE. 157 The total area under cultivation in the Department in 1919 was estimated at 2,605,982 hectares. The total income from this area, as computed for the purposes of levying the small land tax of the Department, was calculated at 3,195,783 bolivianos, or over $1,000,000. Though considerable allowance must be made for this figure, in view of the purpose for which it was drawn up, even trebling the figure would give an absurdly small return for such a large area. The official figure would show an average income of less than $1 an acre, yet as much as $400 an acre is asked for some of the farming land in the valley of Cochabamba. The extent of cultivated land and the income from this land during 1919 in each Province was as follows, according to official data: Punata. . Arani . . . Cliza.... .Mizque.. Campero Totora . . Ayopaya Tapacari Estimated area under cultivation. Hectares. 20, 434 39, 725 11,513 135, 730 894,647 498, 047 780, 500 39, 179 Income as given tor assessment of land tax. Bolivianos. 339, 243 221,514 169, 941 82,618 101,050 113,977 201,098 103, 240 Quillacollo. Capinota... Arque Tarata Chapare Cercado — Total Estimated area under cultivation. Hectares. 36, 554 16, 646 27, 158 70, 376 20, 593 14, 780 2, 605, 882 Income as given for assessment of land tax Bolivianos. 739, 015 163, 466 125,385 309, 737 260, 532 264,968 3, 195, 784 The highest returns are shown by the Province of Quillacollo, where irrigation is used on a large scale. The Provinces of Cercado (this Province comprising the environs of Cochabamba), Punata, and Cliza show a relatively high return from the land. The Province of Mizque, which contains some very fertile valleys, was formerly much more productive and prosperous than at present, its decline being largely due to the ravages of terciana, or intermittent fever, which caused the decimation of the population and the emigration of many of the survivors to more healthful districts. NEED FOR EXTENSION OF IRRIGATION. The rainfall in the Department, as throughout Bolivia, is seasonal, most of it falling during the months from November to April, and little or none falling during the remainder of the year, especially in the winter months of June, July, and August. During the dry, winter season, the rivers shrink to small proportions, and some of the smaller streams dry up altogether. Though it is always warm in the sunshine, the temperature in the valleys about Cochabamba may fall to freezing during the midwinter nights. At this time of the year the country presents a dry and parched appearance except where irri- gation is practiced. Such streams as the Rocha furnish water for irrigating part of the land, and numerous small mountain torrents are canalized and led out across the fields in the valleys. Irrigation is used to the largest extent in the Quillacollo Valley, but it is also resorted to, as far as the available water supply will permit, in other valleys in the neighbor- hood of Cochabamba. However, it is probable that not more than 10 or 12 per cent of the cultivable area of these valleys is under irri- 158 BOLIVIA: A COMMERCIAL AND [NDUSTBIAL HANDBOOK. gation. Ad extension of the irrigated area of the district would greatly increase production, and a company of engineers is now studying a large project for the irrigation of the Punata and Sacaba Valleys. These men, who are working under the auspices of the Bolivia Railway Co., are investigating the supph of water in the small lakes and lagoons in pockets in the surrounding mountains, particularly in the vicinity 01 Vacas. RAISING OF CORN— MANUFACTURE OF "CHICHA." Corn is the principal crop in the Cochabamba Valley. Both new seed and better methods of cultivation are greatly needed. Though corn generally grows to a good height, there is seldom more than one ear to a stalk, and the ears are rarely over 8 inches long. However, the grain is usually large. As the corn is planted at intervals of 6 to 10 inches, the field can be plowed only one way. The price of corn varies during the year between (> and 12 bolivianos per Spanish quintal. The crop for 1920 in the immediate district of Cochabamba is estimated at about 500,000 quintals. Probably 75 per cent of the production of corn is used in the manu- facture of '' chicha." the native drink made by a processof fermenta- tion. There are more than 1,500 chicha-making establishments in the Department, most of which operate on a very small scale. Within the municipal limits of Cochabamba there are almost 1,400 "chi- cherias," or places where "chicha" is dispensed. These are nearly always run by women, who pay an annual license of 5 bolivianos to the city government. The drink, which has a muddy, yellowish- brown appearance and the taste of bad cider, is more or less intoxi- cating, depending largely on the degree of fermentation. Though normally little drunkenness results from chicha drinking, over- indulgence on the occasion of the frequent feast days leads to wide- spread intoxication in the community. The corn that is not consumed in the making of chicha is ground into flour or used for feeding stock. The possibilities of corn as an article of diet for man have been little developed, and the food value of corn bread is little appreciated. WHEAT PRODUCTION— POSSIBILITIES OF FLOUR-MILLING INDUSTRY. Wheat of good grain and head is produced in considerable quantity, though the production per acre is not large. The wheat crop is harvested with the sickle and thrashed by driving oxen owv the straw. Though most of the wheat is ground in the Department. some of tin' crop is sent to other points in Bolivia. There are numerous small Hour mills, located near the base of the mountains, where the water power from mountain streams is utilized to operate a stone burr. The most modern mill in the Department is that of the Kmpresa Luz y Fuer/.a. which i> situated within the city of Cochabamba. There is one other mill of a similar character. The (lour made by ilic smaller concerns is coarse, and some of it contains a fair proportion of bran. Except in the case of the bet ter-grade Hour produced by the two modern!} equipped mills, the local product is mixed with imported Chilean Hour. There should be a good held for flour nulling on a large and modern scale in the Locality of Cochabamba, where sufficienl water power is available and where AGRICULTURE. 159 the area sown to wheat could he greatly increased. The price of wheat ranges from 10 to 14 bolivianos per quintal. Imports of flour and wheat from Chile alone during 1918 amounted to, res- spectively, 13,806,775 and 318,575 kilos,' having a total customs value of about 2,230,000 bolivianos. It is understood thata British importing firm plans the establishment of a large flour mill in Cochabamba. LARGE ACREAGE OF BARLEY— OTHER PRODUCTS. Barley is grown not only in the mountains, where no other cereal will grow, but also in the valleys, where the total acreage planted to it is large. Almost the entire production is consumed in the making of beer and alcohol, though the straw is widely used for feeding stock. Barley brings from 6 to 11 bolivianos per quintal. During 1919 there were manufactured 23,092,000 liters of alcohol from cereals, both barley and wheat, in the Department of Cochabamba, while about double this amount was made from sugar cane. Oats are grown, but to a much smaller extent than either wheat or barley. Quinua, a hardy cereal with a small, round grain, is raised on very limited areas, and since animals will not touch the plant, it is grown around cornfields to keep out roaming stock. The grain makes a nourishing soup. Sugar cane, which is grown in some of the lower and warmer valleys in the eastern part of the Department, is used in the manu- facture of alcohol. The area which could be planted to cane in the tropical lowlands is almost unlimited. Sugar beets should also do very well in the valleys about Cochabamba. Potatoes are the most important vegetable grown and, though of good flavor, are of small size. Sweet potatoes, squashes, onions, radishes, beets, peppers, and a few native vegetables, such as oca, are raised, but the market gardening shares in the general backward- ness of agriculture in this district. FRUIT GROWING. The same backward condition prevails as regards fruit growing. The region of Cochabamba is well suited to the raising of a wide variety of fruits, especially with a larger use of irrigation, but under the present system orchards are left uncared for, with the natural result that the trees and fruit deteriorate. Pruning is almost un- known, but fortunately pests are not common, so spraying is seldom necessary. The results obtained on a small experimental farm in Sacaba, where some fruit of excellent quality is grown, have shown the fruit-culture possibilities of the Cochabamba region. The grapes grown in the valleys around Cochabamba, though generally sweet, are small and of poor appearance. About 20,000 liters of wine are produced yearly by one firm at Muyurina. How- ever, this wine is still of inferior quality, and considerable quantities of adulterated Chilean wine are imported for the local market. Peaches, which are the fruit most widely -grown, are small and of very poor quality, as are also the apples and pears raised in this locality. Oranges do well even without any care being given to the trees, and the fruit is juicy and of good flavor, though small. Figs and several tropical fruits peculiar to South America, such as the chirimoya, are also found in all the Cochabamba valleys. 160 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. PRIMITIVE AGRICULTURAL METHODS. Though this region is the most highly developed agricultural district in Bolivia, its superiority in this respect is only relative, for agriculture here, as everywhere in Bolivia, is in a backward state. The position which Cochabamba holds in relation to the other Departments is largely due to the superior natural conditions found there. The natives, when left to themselves, usually farm as in the days of the Incas. The " estanciero " is too generally content with the income which the traditional methods bring in to improve these, while in many cases he spends too large a part of the year at his city residence to give proper attention to the direction of his ,- linca" in the country. Moreover, the major-domo who manages the farm in the owner's absence often has little, if any, better idea of modern farming than have the Indian peons. The same crop is grown on the same ground year after year without recourse to either fertilizers or rotation. The farmer gets along with a minimum of tools and implements, and these are usually of the pattern used by his ancestors for genera- tions. They consist of a heavy hoe, a sickle for harvesting grain, and a rude wooden plow. A machete, generally of American make, is widely used for cutting corn. A light, one-handled iron plow, also made in the United States, is finding favor among the farmers of the region and can be had for 45 bolivianos. Agents for the plow recently sold more than two dozen in a week. There is no market for heavy plows. One importer who brought in some large riding plows, requiring about five mules to pull them, was unable to make a sale. PROSPECTIVE MARKET FOR SIMPLE AGRICULTURAL MACHINERY. There is little or no demand for tractor plows and tractors in general, even though the Cochabamba valleys are well suited to their use. In addition to the high original cost of tractors, fuel is expensive, and there are, moreover, few peons capable of operating or repairing them. In fact, in considering Bolivia as a market for agricultural machinery, the general lack of mechanical ability among all classes must be borne in mind. This factor makes simplicity a prime requisite in farming machinery. In case more complicated implements are sold, the agent must be able to show the farmer how to operate them. There is no doubt that, if the proper methods were used, a con- siderable market for agricultural machinery could be worked up, in spite of the conservatism of the farmers and the cheapness of Labor. This market should include such implements as disk harrows, corn planters, mowers, hayrakes, light hay presses, and even reapers, in addition to plows thai can be drawn by a yoke of oxen. The best- equipped farming property in the Cochabamba district is located near I'linata. and is fitted up with a complete line of modern Ameri- can farming machinery . even to a thrasher; and though the inevitable difficulty of securing competent help bo operate the implements has been experienced, the results have been, on the whole, very satis- factory. AGRICULTURE. 161 FARMS WORKED BY INDIAN TENANTS. In the tropical plains country the land is held in large blocks by a comparatively few owners. The actual work on the farms is per- formed by the Indian tenants. The rigid caste line between the upper, or white, and the lower, or Indian, classes prevents the former from indulgence in manual labor. The Indian, who is seldom an independent proprietor, usually turns over a third of what he raises to the landlord, though the proportion varies on different fincas. He has also further well-defined obligations to the landlord, such as caring for the latter's garden patch or working at the town house whenever his services are needed there. There is little ill treatment of tenants, whose wants are few and easily satisfied. The Indian's lot is, in fact, far better than that of the ill-clad and half-starved Aymara of the " altiplano." He has plenty to eat, though there is little variety in his diet. The mild climate makes his clothing a simple matter and simplifies his housing problem. He generally lives in a hut made of adobe bricks, which Form the chief building material throughout the Cochabamba valleys. Whatever troubles he may have he is prone to drown in ample pota- tions of "chicha." However, his fellows a few hours above in the mountains lead the same wretched and narrow existence as do the Indians of the Oruro and La Paz highlands, where life is a constant struggle with a most unfavorable environment. MARKETING OF FARM PRODUCTS. Though most of the agricultural products raised are consumed locally, considerable quantities are sent out to the Oruro and Uyuni districts and to other parts of the altiplano unsuited to farming. Recently the Department has begun to export foodstuffs to the mining camp of Chuquicamata, in Chile. The local trade is conducted by means of public markets, which are found in all the towns of the district, as well as at the weekly fairs to which the country people bring their farm produce and cattle. REGION OF SUCRE. Although there are no large expanses of agricultural lands in the region of Sucre, as there are in Cochabamba, all the available lands in & the numerous valleys of the district are utilized for farming. The soil of these valleys is generally fertile and the climate highly favor- able to the growth of crops. Methods are very antiquated, and the most advanced implement used anywhere is a light steel plow, usually of American make. Corn is raised on a considerable scale, but most of the production is utilized in the making of "chicha," the native drink. Barley, wheat, and oats are also grown — much land that is unsuitable for any other purpose being sowed to barley. The wheat produced is ground into flour in Sucre. The best tobacco in Bolivia is grown in the Province of Azero, whence it is carried to Sucre to be made into cigarettes in the factory of the "estanco." All the tobacco is grown from old native seed. Although sugar cane is produced in the low valleys a few miles east of Sucre, it is nearly all utilized in the making of alcohol, while the sugar used in Sucre 44462°— 21 11 162 BOLIVIA: A COMMERCIAL WI> I XI H'STRIAL 1 1 AXM'.OOK. is largely imported from Peru. The region, moreover, i< well suited to the growing of fruit; oranges, grapes, and peaches are grown in relatively large quantities. Because of the deterioration of the stock of trees and because of the lack of care of them, the quality of the fruit is rather poor. AGRICULTURE IN THE YUNGAS. Agriculture is the most important industry of the Yungas, hut it is still on a relatively small scale, owing to the lack of large areas of level ground. Practically all the farming is done on the mountain sides, although some narrow strips of land bordering on the streams and subject to inundation are cultivated. In many places the sides of the mountains present a checkerboard appearance, where they are covered with patches of coca and other crops. About Chulumani and in a few other parts of the neighboring country there are large basins among the mountains, practically all of which are under cultivation, even to the very tops of the mountains. The greater part of the land in the Yungas is held by a compara- tively small number of owners, most of whom reside in La Paz and intrust the management of their estate to a major-domo. Though there are a few independent proprietors among the Indians, some of whom have accumulated fortunes of 25,000 to 50,000 bolivianos in the coca business, the majority of the natives are tenants without any independent resources. Some of the Yungas estates have an Indian population of 150 to 250 workers. ESTATE OF SINDICATO DE BOLIVIA. The largest single property in the Yungas is the Cafiamina estate of the Sindicato de Bolivia, a company with offices in La Paz. This huge hacienda, which has an area of about 300,000 hectares, or nearly 750,000 acres, lies on a branch of the Rio de La Paz and in the Province of Inquisivi. Via Irupana and Chulumani it is about 200 kilometers (125 miles) distant from La Paz, but by a road which follows the Rio de La Paz and which is open during the dry season the distance to La Paz is about 150 kilometers (95 milesh It also has connections with the main line of the Bolivia Railway over the new automobile road which the Guggenheim Mining Co. has con- structed from its Caracoles mines to the Eucalyptus Station of the railway. The altitude of the property varies from 850 to 4,000 meters above sea level. It has not only an unusually Large extent of Level ground, but a Large area of timber suitable for lumber. The principal industry of the property at presenl i-> the growing of sugar cane for the manufacture of alcohol, of which about 120,000 liters are made annually. There are also plantations of coca, and 12,000 cacao plants were recently set out. A beginning has been made in tin- breeding of cat tie, and it is also proposed to stock the property with 6,000 goats. This property is now being offered for side in the United States at a price of 2,000,000 bolivianos, as its presenl owners do not command the capital necessary for the proper development of the land. AGRICULTURE. 163 CULTIVATION OF COCA PLANT. The cultivation of coca is the principal basis of the agricultural industry of the Yungas, and is also the most lucrative business of that region. There are no large plantations of coca, but it is grown on terraces, an acre or two in size, built up on the hillsides. These terraces are about 10 inches wide and are protected by a rampart of earth of about the same width and about 6 inches in height. The ramparts are generally faced on the outside with stones or with a rough cement. The use of terraces not only prevents the heavy rains from washing the whole plantation down the mountain side but it tends to hold the moisture about the roots of the plants. The plants are usually set at intervals of from 6 to 10 inches. The unit of measurement tor lands devoted to the cultivation of coca is the cato, which is equivalent to about one-fourth of a hectare or 0.62 acre. Coca lands bring from 300 to 500 bolivianos per cato. The coca plant is a shrub usually 2 or 3 feet in height, though, when allowed to mature, it reaches 4 or 5 feet. However, it is cut down to the ground before attaining that height, as the quality of the leaves deteriorates with the height of the plant, The young shoots are grown under a cover of dried banana leaves and are transplanted to the terraces. The plant begins bearing at 2 years and continues for about 20 years. The leaf, in which lies the com- mercial value of the plant, is oval in shape and light green in color; it is about Ih, inches long and about f inch wide. Three or four crops of leaves are picked from the same plants during the year. Each cato planted to coca will produce from 7 to 14 '"cestos" of leaves annually. The "cesto" is equivalent to about 25 pounds. Two "cestos" make a "tamboi\" which thus contains about 50 pounds of leaves. All the coca is packed for shipment in units of 1 ''tambor." Of the coca production of the Department of La Paz, the Province of Nor Yungas produces about 37 per cent, Sur Yungas about 58 per cent, and Inquisivi the rest. After the leaves are picked, they are dried in the sun on a floor made of slabs of slate. They are then pressed into bales of uniform size and weight (1 "tambor," or 50 pounds). The dimensions of these bales are about 20 by 14 by 12 inches. .They are wrapped with dried banana leaves and burlap to protect them against the weather and rough handling. The coca is carried to La Paz by mules, each mule carrying a load of 4 "tambores," or about 200 pounds. The price in La Paz at the time the present report was written was about 60 bolivianos per 'tambor," or about 47 cents gold per pound. The total production of coca in the Department of La Paz is about 3,700 tons annually. The production of the Department of Cocha- bamba is much smaller, the 10 tons of coca leaves carried by the Oruro-Cochabamba line during 1919 being a fair index of the yield of the Yungas of Cochabamba. All coca taken into La Paz pays a duty to the Government of 1.60 bolivianos per "tambor," and the same rate is paid on all coca shipped out of the Department, whether sent to other parts of the Republic or exported to foreign countries. The greater part of the coca exported from Bolivia goes to Argentina or Chile. Most of the competition in the international coca market comes from Peru, where it is also produced on a considerable scale, though the Peruvian leaf is said to be inferior in quality to that 164 BOLIVIA: A COMMKIK'IAI. AND IXM'STKIAL HANDBOOK. produced in Bolivia. The figures for total exports during the period 1914 L919 are as follows: fears. Kilos. Bolii Kilos. Bolft i'ii 347,679 389.310 331,851 651. 123 732,903 623,880 1917 113,050 688,841 771,564 L91S ! 118 L916 1919 Argentina purchased 257,515 kilos, or 73.87 per cent, of the 1918 exports of coca from Bolivia; Chile, 97,084 kilos, or 26.01 per cent: and Great Britain, 552 kilos, or 0.12 per cent. Coca is known abroad only as the basis of the anesthetic cocaine, none of which is manufactured in Bolivia, though some is made in Peru. Most of the Bolivian production is consumed within the country, where it is widely chewed by the natives of the plateau for its narcotic effects. The natives mix it with the ashes of the quinua plant, which serves as a condiment. Its use enables the Indian to go without food for a considerable time and to work for long stretches without rest. However, its prolonged use deadens the nerves and other sensibilities of the organism, and is thus a potent factor in the degeneration of the Indian race of the plateau. The coca habit is also widespread among the inhabitants of some parts of northern Argentina and in certain districts of northern Chile. COFFEE PRODICTION AND TRADE. There are no large plantations of coffee in the Yungas, but it is cultivated in small patches throughout the entire region, or the trees are planted as hedges along the roads or around iields of other crops. Little care is given to the cultivation of coffee, and the trees are not properly trimmed or shaded. The first crop is generally picked at the end of one and one-half or two years, and the trees con- tinue hearing fruit from 15 to 20 years. The usual yield is between 3 and S pounds per tree. The natives pick ripe and green berries indiscriminately, so that careful grading is difficult. However, the berries are of good size and the coffee is of excellent quality, its aroma being equal to that of any South American coffee. As the production is limited, there has been little effort to develop a foreign market, though a consignment was recently shipped t<> San Francisco. Landowners in the Yungas declare their willingness to plant more coffee as soon as they are assured of a market for the production. The price in I. a Paz on June 9, L920, was ."ill bolivianos per Spanish quintal, of about l()l pounds (about in cents per pound I. In 1 918 the total exports of coffee from Bolivia amounted to 13,050 kilos, valued at 11,547 bolivianos. Of this total, Chile took 12,307 kilos, valued at 10,815 bolivianos, and small quantities were taken l>\ Argentina, Spain, and Peru. Of these exports. T.li't'J kilos were produced in Nor Yungas and 5,351 kilos in Sur Yungas, the Coroico district being the lai«_ r e-t producer. In addition, L25 kilos of ground coffee were snipped to Chile. In 1 91 9 exports amounted bo 205,427 kilo-, valued .-it 232,868 bolivianos. AGRICULTURE. 165 The imports of coffee into Bolivia for the period 1914-1918 were as follows: Years. Kilos. Bolivianos. Years. Kilos. Bolivianos. 1914 19, 223 17,55* 27, 782 19,331 17, 558 27, 782 1917 21,257 67, 344 21,257 1915 1918 67, 344 1916 Of the 1918 imports, 38,926 kilos came from Brazil, 21,962 kilos from Peru, 6,336 kilos from Argentina, and 120 kilos from Uruguay. About one-third of this coffee entered Bolivian territory through the customhouse of Cobija and another third from the customhouses of Abuna, Yacuiba, Villa Bella, and Puerto Suarez, all of which are located in either the Amazon or the Paraguay zones of the Republic. The remaining third was entered through the customhouses of La Paz and Oruro, where it was within the zone of competition of the Yungas coffee. Imports of ground coffee during 1918 amounted to 4,368 kilos, as against 1,554 kilos for 1917. Of this, only 53 kilos entered through the customhouses of the plateau, the remainder being destined for eastern Bolivia and the Amazon region. CACAO CULTIVATION— OTHER PRODUCTS. The cultivation of cacao has been little developed as yet, though parts of the Yungas are very well suited to its growth. In 1918, 1,889 kilos, to the value of 3,683 bolivianos, were exported from the Coroico district to Chile. Imports of cacao into Bolivia during the same year, largely from Peru, amounted to 59,209 kilos, with a total customs value of 41,446 bolivianos. Imports of prepared cacao, all from the United States, amounted to 170 kilos in 1918. In spite of the lack of attention given to the trees, the quality of the Yungas oranges is probably unsurpassed in South America. They are of good size (though not so large as those of Bahia), ex- tremely juicy, and of excellent flavor. Most of the production is consumed in La Paz, to which market they are carried on burros. The production of tangerines is also considerable. Bananas are grown in large quantities throughout the Yungas and are carried thence to La Paz, but their quality is generally inferior. Lemons and limes of very good quality are also grown. Though the climate is suited to the raising of sugar cane, compara- tively little is grown, and the small production is utilized in the manufacture of alcohol. Tobacco is also grown on a small scale. Corn is grown to supply the needs of the local population, as is also yucca, or "mandioca," which is one of the staple articles of food of the natives of the region. AGRICULTURAL POSSIBILITIES IN EASTERN BOLIVIA. The region of greatest agricultural possibilities in Bolivia lies in the eastern part of the country and extends from the plains of the Beni around across the Department of Santa Cruz and south into that of Tarija. However, in the country which borders the true Chaco to the west and extends from the Rio Grande to the Pilcomayo, natural conditions are not so favorable to agriculture as they are 166 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. either to the south in Tarija or to the north in the plains of Mojos and Santa Cruz in the valleys of Chiquitos. There soil and climate favor a high agricultural development, bu1 much of the country from Vallegrande south to Villa Monies shares in the liability to drought that is a characteristic of the Chaco. (HOPS (iROWN- PRINCIPAL DISTRICTS DEVELOPED. In spite of its natural advantages, agricultural development in the Amazonian region is still very backward, so that a large part of the foodstuffs consumed is brought in from Brazil or from the Santa Cruz country. In some parts agriculture has even retrograded from its former condition. The crops most commonly grown are rice, sugar cane, corn, yucca, and sweet potatoes. Cacao, coffee, and tobacco are also grown. There is little cultivation of cotton, though formerly considerable quantities were produced, which supplied the raw material for a local industry in the manufacture of excellent hammocks, ponchos, etc. Bananas and oranges are grown in many places, but everywhere on a small scale. The most advanced regions agriculturally are the Mojos plains in the vicinity of Trinidad and the upper Itcnez country. In the latter district there are several large properties where cacao, coffee, and sugar cane are raised. In the lands about the lower courses of the rivers, patches of corn, yucca, sweet potatoes, and rice are grown for the use of the population of rubber gatherers about the "barracas." Agriculture in the lower Beni country has been give a considerable impulse by the immigration of Japanese from Peru by way of the Madre de Dios and along the Beni above and below Riberalta. The missions are also encour- aging the development of farming among the population under their eon I rol. The greatest possibilities in agriculture are in the cultivation of cotton, sugar cane, cacao, and tobacco, while vanilla should also do well. REGION OF SANTA CRUZ. In spite of the great natural advantages of the Santa Cruz region — the vast extent of level and fertile land and a highly favorable climate — agricultural operations have probably fallen off 2."> per cent during the past two decades. This decline is largely due to the fact that new lines of transportation have been pushed in from the outside toward the Santa Cruz country, tapping fields that were formerly markets for the consumption of the products of that region. The most important of these lines were (1) the railway from Oruro to Cochabamba, which enables the Peruvian sugar to enter the Cochabamba market at a lower price than the sugar of Santa Cruz; (2) the Madeira-Mamore Railway, which has taken from Santa Cruz much of the market of the Beni; and (3) the Kmbarcaeion branch of the Argentine Central Northern, which has enabled Argentine pro- duets to compete successfully in southern Bolivia with the products of Santa Cruz. The de\ elopnieii t of heller agricultural methods is also needed in the Santa Cruz region, as everywhere in Bolivia a nerd | hat could be partly met by the establishment of agricultural schools. The predominant soil is alluvium of comparatively recent formation, and in the plains country is rich in humus. \£ost of the land is held in large estates, the ••haciendas" ranging in size from in to loo square-leagues of 5,760 acres each. Some of the owners of these properties have held their Lands for a long time. AGRICULTURE. 167 The most highly developed agricultural districts are located in the Provinces of Sara and Cercado, particularly to the northwest of Santa Cruz. There are also huge extensions of virgin lands suitable for farming in the more remote regions of Nuflo de Chavez, Velasco, and Chiquitos. Irrigation is practiced in Vallegrande and to a lesser extent in Cordillera, and in the latter region dry farming should be highly practicable. The Santa Cruz plains are excellently adapted to the raising of sugar cane. The cane is generally planted in November and cut in May, the same plants being worked for three or four years. The sugar produced is of fairly good quality in spite of the antiquated methods used in refining it. Most of the industry is carried on by small "trapiches," or crushing mills, and the sugar is whitened by means of mud. The largest establishment is that of Zeller, Villinger & Co., near Santa Cruz, the equipment of which cost about $150,000 and required a year for its transportation from Puerto Suarez by means of ox-carts. A company has also been organized recently by local capital for the purpose of putting up a large refinery, and representa- tives of these interests are now on their way to Buenos Aires to acquire the necessary machinery for the installation of the plant. Most of the sugar produced is consumed locally, though some is sent to the Beni and small quantities to Cochabamba. Three hundred thousand arrobas (arroba equals about 25 pounds) were formerly sent to Cochabamba each year. The actual production of cotton represents only a very small pro- portion of the possibilities of the region in this line. Two varieties of plant are commonly grown. One of these is ready for picking in five or six months, with a fiber from 4 to 5 centimeters long. The other is a native cotton bush or tree, which grows to a height of 6 feet or more and bears for about 20 years. This plant produces 6 to 8 pounds of cotton twice a year, and an acre will produce about three 500-pound bales of seeded cotton. Rice is an important article of local diet and is widely grown in the more low-lying districts of the Department. Though formerly important in some districts, as in Vallegrande, the cultivation of tobacco has declined. Growers claim that the Government "estanco" or monopoly has discouraged the industry, though some tobacco is made up into cigarettes at Vallegrande in defiance of the privileges of the "estanco." In Chiquitos three crops of tobacco are produced from the same root. Coffee of prime quality is grown about San Jose and Santiago in Chiquitos, though in limited quantities. Coffee is also produced in other parts of the Department. Wheat, barley, and potatoes are grown in Vallegrande. Maize does well and is widely grown throughout the Department. A good grade of cacao is produced in the northeastern section of the Depart- ment, and yerba mate has been successfully produced in Chiquitos and Velasco. A large variety of fruits flourish in this part of Bolivia. These include bananas, oranges, pineapples, melons, lemons, alligator pears, grapes, figs, and pomegranates. Oranges and lemons grow wild and melons yield almost the entire year in Chiquitos. Excellent vegetables can be raised almost everywhere, and yucca or '"mandioca" constitutes a very important item of diet among the common people of the region. FOREST INDUSTRIES. WOODS. Though Bolivia possesses immense timber resources in the vast eastern lowlands and in the montana region on the eastern side of the Andes, almost nothing has been done to exploit them. The forested area includes most of the Territory of Colonias and the Department of El Beni, and comprises large districts of the Depart- ment of Santa Cruz and of the Chaco country to the south. There are probably more than 60,000 square miles of forest in the Depart- ment of Santa Cruz. Scattered over the great plain about Santa Cruz are isolated patches of woodland, and in parts of Chiquitos and Cordillera there are wide expanses of dry, scrub forest. The Monte Grande east of Santa Cruz is a vast forest wilderness, and across the northern part of the Department, from Sara east across Nuflo de Chavez and Velasco to the Brazilian border, there stretches an im- mense area of real tropical forest. Large sections of the montana region in the Departments of La Paz, Cochabamba, and Chuquisaca are also forested. However, the table-land is almost treeless, save where such trees as eucalyptus have been planted in protected localities. Apple trees are grown in the bleak climate of Oruro, and some of the trees produce a good variety of fruit. The chief obstacles to the working of timber in the forested re- gions of Bolivia are the lack of transportation facilities and the peculiar character of the tropical forest. No railways tap the timber country, and, though there is a fine system of natural waterways. the rivers flow away from t^he lumber market of the country instead of toward it. Moreover, many of the native hardwoods are too heavy to be carried in rafts. The forests of the Amazonian region are also so dense and so tangled with a luxuriant undergrowth that it is difficult to penetrate them, and lumbering operations are con- sequently attended with great difficulties. Nowhere are solid stands 01 a single species of tree found in these forests, but a given area may contain a large variety of trees. A Franciscan mission in the Province of Velasco sent 125 specimens of woods to the Pan- ama-Pacific Exposition at San Francisco in 191."), and 82 specimens were sent from one estate in the Chapare region of the Department of Cochabamba. Among the most common woods of eastern Bolivia are the useful cedro (or Spanish cedar), jacaranda, Lapacho, laurel, quebracho bianco, urundev, palo santo, palo bianco, mahogany, walnut, ebony. incienso, and the giant carob. Some of these are valuable cabinet and construction woods. Among trees with a high tannin content is the curupay. Most of these woods are described in the writer's Commercial handbook of Paraguay, Special Agents Series No. L99. These woods are generally known by Indian names, and the same tree may ha\e several different names in as many parts of the country. Some of the native woods, such as the tajibo negro, or L68 FOREST INDUSTRIES. 169 "iron tree," are of extraordinary hardness, and others are extremely light, as in the case of the palo de balsa, which is used in the Colonias and lower Beni regions for making canoes. In spite of the timber wealth of the country, lumbering operations are very limited and are carried on in an unprogressive manner. Sawmills are small and few in number, and axes, adzes, and cross- cut saws are the principal tools used in lumbering. RUBBER. The rubber industry, one of the most important in Bolivia, is centered in the Amazonian region of the Republic. Though the first rubber was taken out along the Mamore in 1864 and production amounted to 2,000 arrobas (25.36 pounds each) by 1878, the develop- ment of the industry on a large scale dates from the eighties. Much of the rubber country was explored about that time by an American, Edwin Heath. The year 1882 was a great one in the history of the industry, but the depression caused by the outbreak of swamp fever, which followed the* floods of 1886, caused a temporary setback. With the rapidly increasing demand for the product, rubber hunters poured into the Beni and Mamore districts, and numerous companies were organized to exploit the resources of those regions. Pro- duction in 1898 was double that of the previous year, and in 1900 it reached the highest figure attained until 1911. However, the best returns from the business were during the boom years from 1909 to 1911, during which period rubber reached the maximum price of 12 shillings ($2.92) per pound. From that time the decline in the returns was constant until 1915, but the yield of 1917 brought only about two-thirds as much as did that of 1910. By 1917 the East Indian plantations were producing and Amazonian rubber had taken the second place in the world market, at least so far as quantity was concerned. PRODUCING DISTRICTS. Rubber is found in the Territory of Colonias and in the four northernmost Departments of the Republic — El Beni, La Paz, Cocha- bamba, and Santa Cruz. The Beni district has steadily declined in relative importance as its stock of trees has been worked out, and the Territory of Colonias has become the most productive rubber region in Bolivia. Rubber trees are found in large quantities along all the rivers of Colonias, including the Acre, Abuna, Orton, Madre de Dios, and their tributaries. Development in all these districts is comparatively recent, the rubber resources of the Abuna not having been worked until 1904. Most of the "gomales," or rubber planta- tions, of El Beni are along the lower reaches of the Beni and the Mamore, in the Province of Vaca Diez, and to a lesser extent in that of Yacuma; there are also important fields in the Itenez Basin. The rubber districts of Santa Cruz are located in the Provinces of Nuflo de Chavez and Velasco, and lie mostly between the San Miguel and the Paragua. San Ignacio and Concepcion are the chief centers of the rubber business of this part of Bolivia. The rubber industry of the Department of La Paz is restricted to the Province of Caupolican and, to a much smaller degree, those of Larecaja, Munecas, and Nor Yungas. The comparatively unimportant " gomales' ' of the Depart- 170 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. ment of Cochabamba are situated in the Province of the Chapare in the basin of the river of that name and in the basin of the D'Orbigny. KINDS OBTAINED— LOCATION OF TREES. The highest grade of Amazonian rubber, known as Para fine, is derived from the hevea tree, which stands from 30 to 40 meters (meter = 3.28 feet) high and may attain a diameter of a meter or even more. An inferior grade of rubber is extracted from the caucho tree (Castittoa elastica). The product is sold on the market as caucho. The caucho trees that are worked are generally from 30 to 50 meters high. Contrary to the procedure used with the hevea, the caucho must be cut down in order to obtain the sap. The rubber known as ceara is extracted from the manicoba tree (Manihot (jhizlovii), which is also found, though not in great numbers, in the Bolivian forests. The rubber trees do not exist in solid stands, but are found scat- tered throughout the general forest. The belts along the rivers where they occur seldom extend inland more than 10 or 12 miles. The tree prefers low ground in the neighborhood of swamps and watercourses, where the moisture is retained in the ground through- out the year, and it appears to thrive best on land that is inundated about once every three years. LAWS REGARDING RUBBER LANDS. Bolivian legislation in regard to rubber lands is based on the Ley de Gomas of December 12, 1895, put into effect by decree of June 30, 1896, and modified in important respects by a series of subsequent laws. The law of 1895 fixed the "estrada" of 150 rubber trees as the unit of concessions of land, and authorized the delegate of the Terri- tory of Colonias and the prefects of Departments in which rubber trees existed to grant up to a maximum of 500 "estradas" to indi- viduals and 1,000 estradas to legally constituted companies. The privilege of making larger grants was reserved to the National Congress. These provisions were not to affect the titles to proper tie- already constituted which contained more than the maximum number of estradas permitted by the law. The concessionaires were to pay for each "estrada" 15 bolivianos in 15 yearly installments, though they might consolidate their title by paying the entire sum at once. All properties granted were to be surveyed and their limits clearly marked off. The custom of measuring grants by "estradas" gave rise to such great abuses that a law of October 26, 1905, was issued declaring that the unit of measurement for all acquisitions is the hectare, the granting of lands by ' estradas ' being prohibited henceforth." Accord ing to this law, any native of the Republic or foreigner capable of assuming the obligations of the civil law might acquire by purchase from the Government a maximum of 20,000 hectares at the price of 1 boliviano per hectare. Purchasers nf such lands were obligated to colonize the land at the rate of one family for each 1,000 hectares. A special act of Congress was required for grants of land exceeding 20,000 hectares. Those who were in possession of State lauds to which they had not confirmed their titles were given a period of two rears in which they might consolidate their rights to these properties in conformance with the requirements of this law. In the event of FOREST INDUSTRIES. 171 failure to satisfy the provisions of the law the lands in question were to revert to the State. This law was put into execution by a decree dated June 20, 1907. The further sale of public lands was suspended by a law of Sep- tember 11, 1915, and those who had occupied public lands in accord- ance with the law of 1905 were allowed until the end of 1920 in which to perfect their titles. Further petitions for lands were to be re- served for the exclusive consideration of the National Congress. A law of September 26, 1917, provided for a tax of one-half centavo (1 centavo = 0.3 cent) per hectare on all lands secured under the provi- sions of these laws, the proceeds to go toward a fund for the con- struction of a railway from Cochabamba to Santa Cruz. The relation between the "estrada" and hectare, which had been left undetermined by the law of 1905, was fixed at 75 hectares for each estrada by a law of October 31, 1917. All grantees of lands under the previous law who had not perfected their titles at this time were required to accept this proportion in determining the extent of their properties. In case the land actually occupied exceeded the maximum provided for in accordance with this ratio, the holder of the land might either renounce the excess or retain it by the payment of 20 centavos for each hectare of excess. Practically all the rubber-bearing lands in Bolivia are now in- cluded in grants to which the titles have either been perfected or which are the subject of negotiations with the Government. How- ever, many holders of rubber lands have not complied with the re- quirements of the laws under which they have received their grants, and the Government anticipates that on the expiration of the term allowed by the law of September 11, 1915 (Dec. 31, 1920), this failure to comply with the terms of their concessions will require it to reas- sume large tracts of land now occupied by the rubber companies. The requirement in regard to the settlement of one family for each thousand hectares of land has not been complied with in many cases. PRINCIPAL COMPANIES. The most important of the rubber interests operating in Bolivia include the following: Suarez Hermanos. the most powerful of all the Bolivian rubber companies, has its home offices in London and also has a receiving and forwarding station at Para. The Bolivian headquarters of the Suarez interests are located at Cachuela Esperanza, a short distance above Villa Bella, on the Beni, at which point are large stores and warehouses. The rubber fields extend along the Beni to Riberalta and up the Madre de Dios to the Peruvian frontier. In addition the company has nearly 2,000.000 hectares on the Orton and its tributaries, besides large properties on the Acre and the Abuna. Altogether it possesses nearly 10,000,000 hectares. About 60 per cent of the rubber sent through Villa Bella is consigned by it. The total resources of this firm are said to aggregate about 50,000,000 bolivianos. The German firm of Alfredo W. Barber & Co. has its central office in Cochabamba. with branches in Trinidad, Guayaramerin, and at several points in the Itenez country, where it possesses large "gomales." It also has properties in the Abuna and Mam ore districts. A lone-established German company, Zeller, Villinger & Co.. has rubber properties scattered from the Beni country to the upper Itenez region. It has houses at Riberalta, Guayaramerin, Baures, and Magdalena (Itenez), Santa Cruz. Trinidad, and Puerto Suarez (Rio Paraguay). Brailard & Co., a French company, with headquarters at Riberalta, owns gomales in the Beni and along some of the rivers of the Territory of Colonias. 172 BOLIVIA: A COMMEBCIAL AND INDUSTRIAL HANDBOOK. Another French company, known ae Soci6t£ Picollet. was founded in L910 with a capital of 2.500,000 francs i I franc=19.3 cents), which lias been increased to aboul 3,500.000 francs. The center of operations of this firm is in the Abuna district, with a trading bouse at Manoa, at the mouth of tin- Abuna. The trading house of (iuillermo Demmer is located at Riberalta and owns L, r omales in aorthern < olonias. The Sociedad < 'omercia] Mattel rrosso y Bolivia, which is the ( rerman firm of Stoffen, Schuack, M tiller A- Co., has trading stations at Guayaramerin, Santa Cruz, I'i Suarc/. Corumba (Brazil), and at certain points in the Ltenez region. Mosl rubber properties are situated in the ltenez. Still another German linn. Komarek A Bruckner, owns gomalee in the ltenez and trading houses at Magdalena and Baures. The ruhher lands of the English Anglo-Bolivian Rubber Estaies i Ltd arc situated in the basin of the Rio Blanco, in the northern part of the Department of Santa I ruz. 1h chief center of operations is Concepcion, in the Province of Velasco. It formerly took out mosl of its rubber through Puerto Suarez and the Rio Paraguay, hut recently closed the former post. The Bolivian. Xicanor (!. Salvatierra, has large gomales in the Madre de Dios. Abuna. and Beni. Besides these interests, there are scores of others with ruhher estates, some of them aggregating over 200.000 hectares of land. METHODS OF EXPLOITATION— "HERRINGBONE SYSTEM." I The methods of gathering the rubber used by the Bolivian "serin- gueiro," or extractor and coagulator, are much the same throughout the rubber districts of the Republic, though some improvements have been made in the procedure of extraction during the last few years. Each " seringueiro " or "picador" is assigned an estrada of 150 trees, which he is to work. Every day during the season he goes the rounds of his estrada, beginning his labors about daybreak. With a long- handled hatchet he makes from 6 to 12 incisions in the bark of the tree as high as he can reach on the trunk, and under each incision he places a tin cup into which the latex or sap Hows. It requires about three hours to make this first round of the estrada, and after a short rest the "seringueiro" makes a second round of the trees to collect the latex from the cups. He empties the latex into a bucket and carries the proceeds of his morning's work to his encampment for coagu- lation, which is accomplished by a smoking process. The contents of the bucket are poured into a basin and the Latex poured over a stick which is revolved in the dense smoke produced from hard palm wood or palm nuts burned in a small oven. The latex coagulates rapidly in this smoke and gradually forms a hall, which l- taken off when at a convenient size, about 40 or 50 pounds, and placed to dry under a roof of palm leaves. In this way the char- acteristic Para ruhher halls are produced, and an incision will show the layers made by the turning of the rubber during the process of coagulation. Each day the workman makes the incision on the tree an inch or two lower down on the trunk until the roots are reached, when the tree is left to resl until the next year. Trees arc worked continn OUsly during the rainy season of each year for two or three years, and then are not worked for an equal period. The life of a tree winch i- under exploitation is from 15 to 30 years, largely depending on the care which i-> used in making the incisions. Those made by a careless "picador" will reach below the hark of the tree and injure its vital parts, thus causing it to die before its natural term of life. FOREST INDUSTRIES. 173 Of late years experiments have been made with the so-called herring-bone system, which is used on the plantations. By this method a knife with a short convex blade just wide enough to enter the bark is used to make a long, vertical incision about 4 feet in length. A number of parallel lateral incisions are then made on each side of and terminating in the central incision. The latter serves as a kind of trough through which the latex from the lateral incisions flows down the side of the tree and out through a small spout into a bucket. This method preserves the tree from the dan- gers which result from the deep incisions made by the old system in which the hatchet is used. SCARCITY OF LABOR SUPPLY. The labor question in the rubber country has always presented serious difficulties because of the scarcity of the labor supply within reach of the "gomales." During the nineties and the height of the rubber boom, many abuses were undoubtedly committed in the effort to secure laborers, especially by the " enganchadores " or contractors who supplied the rubber companies with their labor force. The system used in most cases was to advance the Indian who was hired as " seringueiro " a certain amount of money, usually equivalent to the value of about 200 pounds of rubber. The Indian agreed to work on the estate for a year or more, or else to deliver a certain quantity of rubber. He was paid for the rubber delivered and charged with the value of the food and other articles which he bought in the stores operated by the company. Besides the acquisition of his necessary working equipment, which included a hatchet and other articles used in gathering the rubber, and generally a rifle for hunting, the "serin- gueiro " was prone to waste his pay on drink, articles of display, and other unnecessary purchases. As a result he often found himself so deeply in debt to the owner of the estate that he was not able to pay off his account at the end of his contract. In this case it was common for him to be retained at work on the estate until he had paid off his debt, which might be an affair of years. IMPROVEMENT IN CONDITION OF RUBBER GATHERERS. A national law of November 14, 1896, aimed to correct the worst abuses of the labor system as it existed then, and to protect the rights of the peons. This law required that the contractor or employer should pay the transportation of the laborer from his home to his destination in the ''gomales," and thence to his home at the expira- tion of his contract. The patron was also obliged to supply the laborer with food and, in case of sickness, with medicines. The amount of money that might be advanced to a peon was also limited to 400 bolivianos, and employers were forced to supply their workmen with a book in which the latter's accounts could be kept and in accordance with which their accounts could be periodically liquidated. Each contractor of peons was furthermore required to deposit 200 bolivianos in some depository designated by the Government for each peon contracted, as a guaranty of his compliance with the conditions in regard to returning the peons to their homes at the expiration of 174 BOLIVIA: A COMMERCIAL AND [UDUSTBIAL HANDBOOK. their contracts or paying them the LOO bolivianos prescribed in case they desired to remain in the rubber country. There lias been a manifest improvement in the condition of the rubber gatherers during the past few years, though on the other hand they have suffered severely from the rise in prices of necessities. Some rubber companies stili adhere to the old system of contract and advances; however, many estates are now running their labor as far as possible on a strictly pay-on-delivery basis. Kmployers com- plain that their workmen are given to decamping on the slightest provocation or for no other reason than their momentary whims, despite the terms of their contracts; therefore "seringueiros" are being encouraged to bring in their families and establish homes on the rubber estates, where they can cultivate a piece of land and live more or less permanently. Sometimes a section of rubber forest is rented to a contractor, who occupies a certain area which he works with peons hired by himself. He sells the rubber produced to the owner of the "gonial' at a pre- arranged price. However, those who rent, lands in this fashion work them with a view to gaining the largest possible return for them- selves within the shortest possible time, to the ruin of the property rented, so that this arrangement serves only as a last resort. COMPETITION OF PLANTATION RUBBER. The Amazonian rubber industry, including, of course, that of Bo- livia, has been seriously threatened by the rapid development of the East Indian plantations. Though realizing the menace, the South American rubber interests have done little to meet it. A few Bolivian companies have considered the establishment of plantations, and at least one prominent rubber grower has actually planted some trees, but the movement has progressed no further. Meanwhile, owing to their more economical methods, the plantations have rapidly gained control of the world rubber market. The following chart will illus- trate the rise of the plantation industry and its relative position in the rubber industry of the world (1 long ton = 2,240 pounds^ : Vcars. 1006 1907. [90 World produc- tion. / (J .! Inns. 66,210 69,000 65, 100 1911. 1912 75, 149 98,928 IMS. III! Production of plant a1 ions. Quan- tity. Long Inns. ran 1,000 1,800 3. COO 8,200 II, U9 28,218 Acreage. 102,912 ss.-,,P7!l 1,200, W7 I. lis 033 1,611, 124 Percent- ageol total. 0.7 I I L' 8 5. L' 111. 19.2 28 5 > ear 1014. I'll.", 1916 I'H 7. 1918 1919. 1920. World produc- tion. tons. 120,380 158,702 201, ■■'is 241,579 381,860 1403,000 Product inn of plant at ions. Wr * Long tons. 71,380 107,81 7 204, .'•" I 200,950 I'ercent- age "f total. 59 2 67.9 76 7 S3 I gg o i Estimated. The position of Amazonian and other rubber, chiefly African ing the same period is represented by the following table: dur- FOREST INDUSTRIES. 175 Amazonian. African, etc. Years. Amazonian. African, etc. Years. Long tons. Per- centage of total. Long tons. Per- centage of total. Long Ions. Per- centage of total. Long tons. Per- centage of total. 1906 36, 000 38,000 39, 000 42,000 40, 800 37, 730 40,410 39,370 54. 4 55.1 59. 6 60.3 57.9 50.2 42.9 36.3 29,700 30,000 24, 600 24,000 21,500 23, 000 28,000 21,452 44.9 43.5 37.6 34.5 30.5 30.6 28.3 19.8 1914 37,000 37, 220 36, 500 39, 370 30,700 34, 285 135,000 30.7 23.5 18.1 15. 3 12.5 8.9 8.6 12,000 13,615 12,448 13, 258 9,929 7,350 18,000 10.0 1907 1915 8.6 190S 1916 6.2 1909 1917 5.2 1910 1911 1918 4.1 1919 1920 1.92 1.98 1913 1 Estimated. COMPARATIVE PRICES. The comparative average prices of plantation and fine grade Ama- zonian rubber for the same period were as follows, in shillings and pence per pound : Years. Planta- tion. 1906 1907 1908 1909 1910 1911 1912 s. d. 5 101 111 2f I 9 51 9" Fine hard Para. s. d. 5 2| 4 6 4 0J 6 11 8 10 5 4 10 Years. 1913 1914 1915 1916 1917 1918 1919 Planta- tion. s. d. 0{ Fine hard Para. s. d. 10J 7 li i; ii'. [According to the Daily Commercial Report, published in London on Sept. 15, 1920, quotations on plan- tation rubber were Is. 7Jd.; on fine hard Para, Is. 8d.] EXPORT DUTIES DEPENDENT ON RUBBER QUOTATIONS. The Bolivian export tariff provides for the following scale of duties on the exportation of rubber. The duty depends on the quotation on the pound of rubber: Quotation, pence per pound. Value of the metric ton. Duty. Quotation, pence per pound. Value of the metric ton. Duty. Fine: 10 to 24 Bolivianos. 798 to 1,915 P.ct. Free. 2 < >rdinarv: 10 to 24 25 to 36 Bolivianos. 558 to 1,340 1,396 to 2,010 2, 066 to 2, 681 2, 737 to 5,586 P.ct. Free. 25 to 36. 1,995 to 2, 872 2, 952 to 3, 830 3,910 to 7,980 2 37to48 49 to 100 i 37 to 48 4 49 to 100 6 For fine rubber, the official value, on the basis of which the duty is levied, is fixed at 70 per cent of the market quotation in London; while the official value for ordinary rubber is 70 per cent of that for the fine. The quotations are forwarded twice a month by the Bolivian consulate in London. 176 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. CLASSIFICATION OF RUBBER. On the arrival of a consignment of rubber at Manaos or Para, a "bolacha" or sample ball is cut through several layers with a knife for the purpose of classifying the lot. There are eight classes, ac- cording to this preliminary inspection, though the rubber is gen- erally shipped as of two classes. The eight classes are as follows: Fina, fina llaca, entreiina. cntre-lina-flaca, sernamby en rama, ser- namby virgen, sernamby de caucho, and caucho. However, these are exported to the foreign market as ''fine" or "ordinary." The rubber known as line hard Para is the prime product of the latex of the hevea. Sernamby is second-duality rubber, and, though a product of the hevea, it contains impurities which mar its value; it is some- times made of the residue alter the preparation of the fine Para. If rain has fallen in the cups while the latex is being collected, the product will be classified as sernamby. Caucho is the product of the caucho tree and is altogether a lower grade of rubber. The fact that Bolivian rubber is classed as either Para or Mol- lendo on the foreign market does an injustice to Bolivia, against 'which Bolivians have long protested. Amazonian rubber is known to the rubber trade only by the ultimate port of shipment, which is generally either Para, Brazil, or Mollendo, Peru. The rubber from the country about the lower reaches of the rivers is exported through Para, and that from the Beni headwaters is sent out through the Pacific port of Mollendo. However, one important Liverpool house lists the rubber from the upper Beni as Mapiri, from the name of the river along which most of it is collected. EXPORTS FROM 1890 TO 1919. The exports of rubber from Bolivia during the period 1S90 to 1919 were as follows (1 kilo = 2.2 pounds): Years. Kilos. Value in bolivianos. 1,260,000 l,350,iiiiii 1,422,000 1,504,940 2, 47.",, linn 3,070,300 1,853,560 6,551,280 13,556,593 8,210,000 in. (03,959 9,151, 823 5,910,334 2,977,819 l. 175,828 Years. Kii.w Value In Kll " s ' bolivianos. 1890 294,000 345,000 363,400 391, MS 632,500 820,400 I. i 10,712 1,674,216 ;;. 155,955 2,140,000 :;, 165,063 1,902,993 1,321,034 1,569,628 1905. 1,677,796 1,929,608 1,830,513 2,606,591 3,052, 153 3,117,650 3,645,551 4,079,828 5, 143,214 1. 184,915 5,054,847 1,916,545 5,843,213 1,287,51 1 5,347,323 7 341 165 1891 1906. 10 612 S48 1892. 1907. 8 841 380 1893 I90S. 11 - 1894 1908 L'l 9I7 138 1895. . . . 1910. 27 653 555 1896 1911. 18,921, 192 15 508 721 1897 L912 1898 ! 1,651,647 B.280, 37o 10.768, 937 13,291'. _r,| 15 : 1899 I'H i 1900.. . 1915 1901 . . 1916 1902 1917 1903.... i i 038 hi ' 1904.. L919. Exports of L918 were divided into 2. Slid, ."ill!) kilos of '"line," valued at 8,272,579 bolivianos, and 1,427,005 kilos of "ordinary," valued at 2,765,463 bolivianos. FOREST INDUSTRIES. RELATION OF RUBBER TO OTHER EXPORTS. 177 The relation of exports of rubber to the total export trade of the Republic from 1911 to 1918 is shown by the following table: Percentage of value. 1911 22.89 1912 17.20 1913 12.58 1915 11.31 Percentage of value. 1916 13.09 1917 9.79 1918 6.04 This falling percentage is largely due to the increase in the ex- ports of tin and other minerals, and to a decrease in the price of rubber. UNITED STATES CHIEF COUNTRY OF DESTINATION. In 1918 exports of fine rubber to various countries were as follows: Kilos. Value. Countries. Kilos. Values. Countries. Bolivi- anos. Per cent. Bolivi- anos. Per cent. United States 2,404,334 198,813 141, 145 6,966,424 591,134 418,044 84.22 7.15 5.06 Great Britain Spain 115,328 715 174 294,015 2,517 443 3.53 .03 Chile .01 The increasing importance of the United States as a buyer of Bolivian rubber is shown by the following table, which gives the percentage taken by the chief countries of destination since 1912: Countries. 1912 1913 1914 1915 1916 1917 1918 Per cent. 2.30 30.2 12.5 9.5 45.5 Per cent. 3.7 17.8 8.9 18.15 50.9 Per cent. 9.4 10.75 3.5 12.9 63.45 Per cent. 91.7 .3 Per cent. 91.45 Per cent. 83.98 Per cent. 84.22 1.4 6.6 2.27 4.08 6.81 6.52 7.15 3.53 178 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. PRODUCTION BY DISTRICTS. The production of rubber by districts during the years 1911 to 1916 was as follows: Year and district. Colonias — Beni La Paz Santa Cruz. 1912. Quantity. Kilos. Percent- age. 1,617.072 1,596,857 315,150 206,472 Colonias 1 , 895, 069 Beni 1 , "S3, 563 La Paz ' 926, 693 Santa Cruz 109, 503 1913. Colonias 2 , S20, 935 Beni ! 1,907.056 La Paz 290,061 Santa Cruz 125, 161 1914. Colonias 3. 933, 288 Beni 1 49,281 La Paz 198, 645 Santa Cruz 203, 700 1915 Colonias — Beni La I'az Santa Cruz. 991,005 698,987 is:,. 9*', 178,957 1916. Colonias 3,894,744 Beni 608,144 La Paz 207, 743 Santa Cruz 205,913 44.36 41.33 8.64 5.66 46.39 43.66 7.26 2.69 54.85 37.06 5.65 2.44 87.73 3.32 4.42 4.53 48.22 34.01 9.06 8.71 79.22 12.37 4.23 4.18 Value. Bolivianos. 8,597,874 7.762,151 1,547,386 1.013.770 7,778,758 6,393,720 s', in. i IT'. > 446,161 7,135,850 li. (UI.S'JS 725,152 389,815 7,259,759 276,279 367, 481 376,847 s.77l,ss9 !. 111,036 1. ,;,.-,.-,.-, t.V.. 145 10,621,165 1,619,228 140,977 610, 892 Percent- age. 45. 15 41.02 8.18 5. 35 .50.16 41.23 5. 74 2.87 8.71 43.69 4.94 2.66 87.68 3.34 I. K 4.55 81.23 12.99 1.56 4.22 79.91 12.18 3.32 4.59 Exports of rubber from Bolivia by regions during 1918 were as follows : Bolivianos. Bolivianos. Colonias 9, 831, 181 Santa Cruz 465, 018 Beni 602,986 Cochabamba 1,575 La Paz 134,282 The principal customhouses through which rubber is exported are Villa Bella, ( ruayaramerin, Cobija, and Abulia for Colonias and the Beni; Puerto Suarez for the upper Itenez and Santa Cruz; and La Paz and Puerto Acosta for the upper Beni region. [Loan copies of a map nrbicb shows the Location and extent of nil rubber propert tea may be obtained from the Latin American Division, Bureau of Foreign and Domestic Commerce.] QUININE BARK. The headwater districts of the Beni affluents are the principal source of the Bolivian supply of quinine bark. The product is placed on the market under different names, such as " cassarilla," " calisaya," "cinchona," and "quina." The bark thai is stripped from the trunk of the tree is known as "<|tiina tabla," and that winch is stripped from the branches is called "quina canuto," or "quill." The hark is well dried and exported in bundles of approximately 50 pounds. FOREST INDUSTRIES. 179 Until the beginning of the present century this industry was very prosperous, the price of the bark reaching 204 bolivianos per quintal of about 101 pounds in 1878 in the Yungas of La Paz. However, with the development of the plantation product the Bolivian bark was unable to hold its former place in the world market. During the last few years prices have again become more favorable, and the industry has taken on new life in Bolivia. The Apolo, Mapiri, Challena, and Nor Yungas districts are the principal producers, and most of the exports go through the west-coast ports of Arica and Mollendo. Exports during the period 1913-1918 were as follows (kilo = 2,2046 pounds): 1913, 41,183 kilos; 1914, 26,538 kilos; 1915, 78,561 kilos; 1916, 158,488 kilos; 1917, 196,742 kilos; 1918, 168,919 kilos. Of the total production in 1918, 63.86 per cent went to the United States, 15.81 per cent to Great Britain, and 9.48 per cent to Spain. MANUFACTURES. Manufacturing industries in Bolivia are of relatively small im- portance, as might be expected from the present state of the country's economic - development and the absorption of its attention and surplus capital in mining. In the first place, the labor supply that could be drawn upon to furnish factory workers is small. The Indian is out of the question for this class of work, and few cholos have the acquaintance with machines required to make machine operators, though they have a good natural aptitude for this class of work. The question of power is another important consideration in the manufacturing field in Bolivia. The supply of native fuel materials is very deficient, and these materials are, moreover, ill suited to this purpose. They consist of the resinous bush called "tola," the fungus growth known as "yareta," and ''taquia" or llama dung. The plateau region is virtually devoid of trees, and the cost of bringing firewood from the forested lowlands is prohibitive. Coal is not mined in Bolivia, and the cost of imported coal puts it beyond the reach of manufacturers. The product of the peat beds along the Yungas Railway near La Paz is used, so far, only for burn- ing brick and tile. In spite of high prices, fuel oils are at present the most practicable source of factory power in Bolivia. A greater development of the large water-power possibilities of the country would furnish the needed motive force for manufacturing enterprises. At present the cost of electric current is high in La Paz and Oruro, though more reasonable in Cochabamba. However, there exist, in the numerous streams that flow down the valleys on the eastern side of the Andes, vast reserves of hydroelectric energy. The potential power of these streams could not only serve for heating the plateau cities (a need keenly felt at present) but could supply the industrial enterprises of the country and be utilized for the electrification of its railway system, now dependent on coal. ALCOHOL. The trade in alcohol and spirituous liquors in Bolivia constitutes a monopoly, formerly farmed out to private interests, but now con- ducted directly l)\ the Government. However, the production of these commodities and the retail trade in them is in the hands of private individuals. The original law establishing the Estanco de Bebidas Espirituosas, or Monopoly of Alcoholic Liquors, was passed in 1913 during the administration of President Montes. According to this law. the sale and distribution of alcohol and liquors might either be retained by the State or granted to some concessionaire. Beer and wines were excluded from the provisions of the law. By law of May l I, 1012. a concession was granted to Simon Patiflo, the tm-mining magnate, to form an Estanco ase of the mountains, where they utilize the water power from mountain st reams to operate a stone hurr. The most modern null in the Department i- that of the Empresa Luz y Fuerza, which is situated within the MANUFACTURES. 183 city of Cochabamba. There is one other mill of a similar character. The flour made by the smaller concerns is coarse, and some of it contains a fair proportion of bran. Except in the case of the better- grade flour produced by the two modernly equipped mills, the local product is mixed with imported Chilean flour. There should be a good field for flour milling on a large and modern scale in the locality of Cochabamba, where sufficient water power is available, and where the area sown to wheat could be greatly increased. The price of wheat ranges from 10 to 14 bolivianos per quintal. Imports of flour and wheat from Chile alone during 1918 amounted to, respectively, 13,806,775 and 318,575 kilos, with a total customs value of about 2,230,000 bolivianos. It is understood that a British importing firm plans the establishment of a large flour mill in Cochabamba. CANDIES AND CHOCOLATE. Candies, especially chocolate creams of excellent quality, are pro- duced in Sucre. These chocolates are sold in a shoe store in La Paz, but the production is far from sufficient to supply the local demand. Bar chocolate is also produced in Cochabamba and Santa Cruz. In 1918, 28,328 kilos of candies were imported, and from all appearances a considerably larger quantity was imported during both 1919 and 1920. Though Argentine and Chilean candies are sold in Bolivia, the higher-grade goods in this line come from England and the United States. American confectionery, manufactured in California, is becoming a common sight in stores in the plateau cities. SUGAR. The sugar-refining industry, which is largely confined to the De- partment of Santa Cruz, is described under the heading of "Agricul- ture" (see p. 167). MATCHES. The exclusive privilege of manufacturing matches in Bolivia is held by the Fabrica Nacional de Fosforos, or National Match Factory. The monopoly is held by English interests, whose concession dates from 1917 and is to expire in 1927. The company operates on a capital of £88,000. The equipment of the factory is of American make. Both wax and wooden matches are made. By a law of 1912 the Departments of El Beni and Santa Cruz were excluded from the prohibition of the sale of foreign matches provided for in the con- cession to the "estanco," or monopoly. In 1918, 5,732 kilos of British and Brazilian matches were imported into the Colonias region through Cobija and Abuna. There have been frequent complaints in Bolivia against the match monopoly, on the score both of the quality of its product and of the inadequacy of its output to supply the needs of the country. The former charge, particularly as regards the wooden matches, is un- justified, but there is no doubt that production at times has not been up to the demand for matches. The writer witnessed the work- ing of a match famine in Sucre in April, 1920. In 1918 an effort was made in the Senate to annul the existing concession. The Compania Administradora, or concessionaire company, is obliged to pay the Government the fixed annual sum of 70,000 bolivianos. 184 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. LEATHER GOODS AND TANNING. In addition to the tanneries operated in connection with the two large shoe factories in Oruro and La Paz, there are several tanning establishments in the country. Among these is the Empress Na- cional deCurtiduria at Cochabamba, capitalized at 300,000 bolivianos, which produces a good quality of leather. In addition to a regular tanning business, the German firm of Freudenthal Hermanos in La Paz manufactures leather articles of a wide variety and leather clothing of a very good grade. The tanning of cowhides for sole leather is an important industry in the Beni country about Trinidad and in the region of Santa Cruz. Most of the product is sold in the cities of the plateau. Local tanning materials are used. BOOTS AND SHOES. The shoe-manufacturing industry is rapidly being developed in Bolivia to a point where it will be able to supply the entire national demand for footwear. The principal shoe factory at present is the Fabrica Nacional de Calzado, in Oruro. This concern belongs to Julio Zamora, who is one of the principal leaders of the Liberal Party and at the time of the revolution in July, 1920, was Minister of Fi- nance. At that time Zamora was deported from the country and his factory temporarily closed. It was undoubtedly because of Zamora's strong influence in the Government that the import duties on shoes were placed on a protective basis. This business originally belonged to a Basque named Elisetclie, but was acquired by Sr. Zamora during 1917. The value of the business is said to be over 800,000 bolivianos. This concern has the exclusive right to intro- duce the product of the United Shoe Machinery Co. into Bolivia, though this privilege expires in 1923. A well-equipped tannery oper- ated in connection with the plant supplies nearly all the leather used in the shoes. Other materials are largely bought in the United States, except the patent leather, which is now being imported from Argentina. The daily output of the factory is about 500 pairs of shoes. A large variety of styles is produced, some of them on up-to- date American lasts. Between 150 and 200 workmen are employed. In 1917 another concern, Garcia & Cia.', began the manufacture of shoes, with American machinery bought at second hand in Buenoa Aires and brought in by oxcarts over the Tupiza road from La Quiaca. This firm has built up a good business throughout the country and. like Zamora & Co., has exclusive retail agents in the more important cities. From 250 to 300 pairs a day are produced. In addition to these two firms, there is a considerable domestic production of shoe-. in small shops employing from two to six workmen. NAILS. In August, 1919, the Fabrics Nacional deClavos, or National Nail Factory, began operations in La Paz. Half the stock of the com- pany . \\ lii'li is capitalized at 120,000 bolivianos, is held by the man- ager, Antonio Aguslin. and the other half is held by Kortunato Iler- manos, a prominent firm of contractors and dealers in construction materials. Sr. Agustin is an Aragonese Spaniard, and the Fortunate brothers arc of Argentine nationality. MANUFACTURES. 185 The factory is equipped with three machines which were purchased at second hand in Chile and whose origin is unknown, as they bear no marks of the factory that made them. During 1920 some new equipment was ordered from the United States. The wire used is also imported from the United States. Fifteen sizes of ordinary steel builder's nails and 10 sizes of furniture nails, besides roofing nails, are made. The nails made appear to be of very good quality. The greatest difficulty that the factory has had to face nas been the lack of competent and dependable labor. However, it is planned to bring in Chilean workmen in order to increase the output. To the end of March, 1920, only about 600 Spanish quintals (about 60,150 pounds) of nails had been turned out, which is estimated to be the national consumption of nails for two months. Imports of wire nails into Bolivia for the years 1915-1918 were as follows: 1915, 116,504 kilos; 1916, 168,236 kilos; 1917, 237,034 kilos; 1918, 139,650 kilos. Imports by countries in 1918 were as follows- Chile, 55,635 kilos; United States, 55,312 kilos; Peru, 13,391 kilos; Brazil, 12,859 kilos; Argentina, 1,568 kilos; Great Britain, 661 kilos; and Uruguay, 224 kilos. Of other classes of nails there were im- ported, during 1918, 86,555 kilos; of these, 25,794 kilos came from Chile; 25,396 kilos from the United States; 21,717 kilos from Great Britain; 5,450 kilos from Sweden; 3,749 kilos from Argentina; 3,520 kilos from Peru; and the rest from Brazil and France. In 1920 the duty on steel wire nails was fixed at 0.08 centavo per kilo. This factory has also begun the making of mosaics for floors and paving, and it is intended to increase the production in this branch of the business. Artificial marble is also being produced, washbasins and sinks for kitchens being the only objects so far made of this material. CIGARETTES. The manufacture of cigarettes in Bolivia constitutes an "estanco" or monopoly of the National Government. By law of January 7, 1914, the Government decided to "farm out" to private interests the complete control over the manufacture and importation of tobacco in Bolivia. The contract for the "estanco" was let out to Nestor Villa, proprietor of the tobacco manufacturing firm known as "La Sucrense," and Federico Mauri & Cia., owners of the Compania General de Tabacos. According to the arrangement made between the State and these interests, the latter were to form a corporation to be known as the Compania Administradora de Tabacos, with a capital stock of 2,500,000 bolivianos. The Government was to have 60 per cent of the net profits and the concessionaires 40 per cent. By a subsequent decree of the Government the Beni district of the Republic was exempted from the control of the monopoly. This was done because of the difficulties of transportation between the plateau and the rubber country along the Beni and its tributaries, and also as a recognition of the ease with which contraband tobacco could be brought in from Brazil. In this region the German firm of Zeller, Villinger & Co., with stations at Riberalta, Trinidad, and other points has been endowed with the exclusive privilege of trading in tobacco. Virtually all the tobacco consumed in this region is 186 BOLIVIA: A COMMERCIAL ANIi INDUSTRIAL HANDBOOK. imported from Brazil, though some is produced in the Department of El Beni itself. The net profits of the " estanco " during 1018 and the first half-year of 1919 were as follows: First six months of 1918, 476,113 bolivianos; second six months of 1918, 532,145 bolivianos; first six months of 1919, 521,537 bolivianos. The tobacco used by the "estanco" for the manufacture of ciga- rettes is produced in the regions of Bolivia that lie to the east of the Andes. Of 195,499 pounds of tobacco used by the "estanco" during 1918, 110,010 pounds came from the Vallegrande district, which lies between Sucre and Santa Cruz, and 77,053 pounds were produced in the Azero and Tomina districts of the Department of Chuquisaca. The rest came from the Departments of Tarija and Cochabamba, with small quantities from the Department of Potosi. A fixed price is paid to the producers of these different regions by the agencies of the "estanco" — an arrangement that has caused great discontent among the growers. No cigars are made by the "estanco," its production being limited to cigarettes and pipe tobacco. Four grades of cigarettes are made, which retail at, respectively, 10, 20, 30, and 40 centavos per package of 14 cigarettes. These cigarettes are very strong, but otherwise of good quality. The most important of the several cigarette factories of the "estanco" is situated at Sucre. It is a clean and well-lighted establishment, equipped largely with British machinery, though there are a few French and German machines. More than 60 workers are employed. During the second half-year of 1919 there were manufactured here 2,707,300 packages of cigarettes, out of a total of 3,732,050 packages made in all the factories of the "estanco." In addition, 2,087 pounds of pipe tobacco were produced. Imports of tobacco in various forms during the years 1914-1918 were as follows: Fears. Leaf tobacco. Pi po tobacco. Cigars. Cisa- rettes. 1914 SUM. 2,416 1. 194 !. 136 1 . 287 432 Kilos. 920 till! 2,143 1. 170 SUM. 727 1 . 325 2,835 Kilos. 1915 1 , 739 1916 1 . 775 HU7 3,635 ■ Note.— The Increa tee or decreases In the five-year period were: Leaf tobacco, di i rea e of 78.75 i*t cent pipe tobacco, Increase ol 59.63 per cent; cigars, increa e oi 227.84 per oent; cigarettes, Increase of 304.7 [x-r cent. All the leaf tobacco imported into Bolivia is broughl in from Brazil by the Amazon route and entered at Cobija and Ahun.i. Of the pipe tobacco imported in 1918, 811 kilos came from Great Britain and the remainder from Brazil. Imports of cigars wciv distributed as follows: Cuba, 1,756 kilos; Brazil, 37."> kilos; Nether- lands, 248 kilos; Argentina. 5 kilos; United States, I kilo. Brazil furnished 2,697 kilos of the total imports of cigarettes, largely for the Beni-Mamore region; Cuba, 892 kilos; Great Britain, L88 kilos, and the United State-, one-half kilo. Though the United States held MANUFACTURES. 187 a negligible place in the tobacco trade of Bolivia during this period, American cigarettes and pipe tobacco have begun to enter the market in increasing quantities in 1919 and 1920. The customs values of imports of tobaccos during 1918 were as follows: Leaf tobacco, 518 bolivianos; pipe tobacco, 1,764 bolivianos; cigars, 13,357 bolivianos; cigarettes, 15,900 bolivianos; total, 31,539 bolivianos. Leaf and pipe tobaccos imported into Bolivia pay a duty of 4 bolivianos per kilo. Cigarettes pay a duty of 5.50 bolivianos per kilo, while cigars pay 7 bolivianos per kilo. The existence of the "estanco" constitutes the greatest obstacle to the development of a market in Bolivia for foreign tobaccos. Whatever foreign tobaccos are sold in the country are imported by the "estanco," which in turn sells to the local retailers. Most of the foreign cigarettes sold are packed in air-tight tins of 50 or in packages of 10. The smaller packages of the standard brands on sale retail at 1 boliviano, though the most popular American brand on the market sells at 1.20 bolivianos. The demand for cigarettes of this kind is limited to the American and British communities, travelers of the same nationalities, and the more well-to-do Bolivians. Probably 60 per cent of the native Bolivians do not smoke at all. This is largely due to the wide use of coca among the Indian population. WOOLENS. It is probable that almost 1,000,000 pounds of wool are used annually in Bolivia for the manufacture of the woolen stuffs worn by the natives. There are no manufacturing plants engaged in the production of woolens on an industrial scale, as in Peru, but a local company was formed in 1920 for that purpose. However, nearly all the Indian women of the country districts engage in weaving woolen shawls, ponchos, and other articles of wear. Some very fair cloth for suitings is also made, the clothing worn by the cholo class being largely made from this domestic material. The equipment used in weaving is of a very primitive sort. LABOR CONDITIONS. Through various phases of labor in Bolivia have been discussed under other headings, some factors in the situation remain for con- sideration. Racially, Bolivian labor is either Indian or cholo, and so naturally shares in the characteristics of these two ethnic elements. In intelligence the cholo is distinctly superior to the Indian, whose naturally none-too-active mind is further clouded by his chronic addiction to coca chewing. However, though both the Indian and the cholo are slow workers, the cholo surpasses the Indian in initia- tive and in possessing the elements of ambition and curiosity that make him a more progressive and adaptable workman. Thus he is capable of attaining to considerably higher efficiency and skill as a mechanic. Though the cholo is superior in these respects, the Indian, who has had his spirit of assertiveness crushed out by centuries of subjection to authority, is more amenable to control and discipline and is, moreover, more generally dependable. His honesty is usually above reproach. However, on feast days he generally drinks to such an extent that it requires several days for him to recover. Yet the Indians comprise the great mass of unskilled laborers in the cities, on the farms, and in the mines. Because of their caste prejudice against manual labor, there are very few whites among the working class of Bolivia. There is little place for foreign labor, except in places demanding special skill. In any other lines, foreign laborers can scarcely compete with the cheap, if less efficient, native labor. It must also be remembered in this connection that the physical efficiency of foreign labor is considerably less in these high altitudes than at sea level. The only field for the immigration of hardy foreign workmen would be in special construc- tion enterprises, as in the building of railways. The native labor supply is small, and this condition is somewhat aggravated by the migration of Bolivian workmen to the nitrate fields of northern Chile. Moreover, the normal rate of increase of the population is small, especially because of the high infant mortality among the lower classes. The initiation of a large enterprise which offered employment bo a few thousand men at wages a little higher than the current scale of pay in the country would seriously disturb the national labor market. This very circumstance occurred in 1920, causing a dearth of workmen on jobs already under way, as on the construction of the Yungas Railway. Current wages in several lines are as follows: Masons, 5 to 6 boli- vianos :i day for a 9-hour day; carpenters, 6 to 7 bolivianos, 9 hours; blacksmiths, 6 to 7 bolivianos, 9 hours; street railway motormen, 120 bolivianos for month of 15 days; street railway conductors, 100 bolivianos for month of 1 5 days; store clerks, 00 to 100 bolivianos a month, for day of s or hours. In one of the stores employees are paid from 120 to ISO bolivianos. IKS LABOR CONDITIONS. 189 Labor is not highly organized in Bolivia. In only a few lines are there "grennios" or associations of workmen, though the present tendency is distinctly in that direction, especially among the more skilled workers. The employees of the Bolivia Railway probably have the strongest association in the country, partly because of their close connections with their fellow workmen on the Chilean section of the through line from Antofagasta. Until recently, strikes were unknown in Bolivia. However, in 1919 there was a strike at the Llallagua tin mines, and there was a strike of the telegraphers on the Government lines in 1920. There have also been difficulties with labor on the Bolivia Railway system. COLONIZATION IMMIGRATION, AND LANDS. Matters connected with colonization of public lands in Bolivia are now under the jurisdiction of the Minister of War and Colonization, though the portfolio of Colonization was formerly more appropriately associated with that of Agriculture. A bureau of the joint ministry known as the "Section of Colonization" has charge of colonial affairs. Formerly the prefects of Departments and the delegates of the na- tional Territories were endowed with considerable jurisdiction in questions regarding public lands, but authority is now largely con- centrated in the hands of the ministry at La Paz. Inquiries for information regarding public lands should be addressed: " Jefe de la Seccion de Colonizacion, Ministerio de Guerra y Colonizacion, La Paz." A copy of the compiled statutes and decrees on the subject may be consulted at the Bureau of Foreign and Domestic Commerce, by referring to "Legislacion de Tierras Baldias." Maps prepared by the cartographical department of the Public Land Office showing lands ceded are on file in the Latin American division of the Bureau of Foreign and Domestic Commerce. FUNDAMENTAL LEGISLATION— ZONES SET ASIDE FOR COLONIZATION. Though temporarily suspended since September 11, 1915, the fundamental colonial legislation of Bolivia consists of the law of October 26, 1905, generally known as the "Ley de Tierras Baldias del Estado." At that time Ismael Montes was President of the Republic, and Manuel Vicente Ballivian was Minister of Colonization and Agriculture. This law superseded such previous dispositions as those of November 13, 1886, and December 10, 1895. The "regla- mento" or regulatory decree, which provided for the enforcement of the basic law and interpreted its provisions in detail, was issued on June 20, 1907. According to the law of 1905 any Bolivian citizen or foreigner capable of assuming the obligations of the civil law of the Republic might buy from the State public lands to a maximum extent of 20,000 hectares. For these he was to pay at the rate of 10 centavos per hectare, in case the lands were agricultural or pas- toral. This would amount to 2,000 bolivianos for -JO, 000 licet ares. or at the rate of about $775 per 49,400 acres. If the lands acquired contained rubber-bearing trees, the price was to be 1 boliviano per hectare. The purchasers were obliged to settle at least one family on each 1,000 hectares of land. Sales of land in excess of 20,000 hectares might be obtained only with the express consent of the National Congress. Provision was made for locating and demarking each lot by two surveyors, one of whom was to be in the service of the Gov- ernment and the other employed by the buyer, unless the latter agreed to accept the survey made, by the public surveyor. The sale of lands under this taw was placed in the hands of the executive branch of the Government, in effect the Ministry of Colonization, and of the national delegates in the different frontier districts. The L90 COLONIZATION, IMMIGRATION, AND LANDS. 191 "reglamento" of 1907 provided that proposals for the purchase of lands might also be made directly to the prefect of the Department in which the lands lay. Before the passage of the fundamental law a decree of April 25 of the same year set aside for purposes of colonization the following zones of the Republic: A. Territory of Colonias, 17,250 square kilometers. — The southeastern part of this territory bounded by the Tambopata River from its confluence with the San Bias to its mouth in the Madre de Dios; the Madre de Dios to its junction with the Heath; the line that joins this point with the confluence of the Chunini and Madidi Rivers: and the course of the latter river to its source in the mountains. B. Department of La Paz, 14,500 square kilometers. — The region in the Province of Caupolican between the Rivers Beni, Madidi, and Sayuba and the chain of moun- tains separating the sources of the last two streams. C. Department of El Beni, 12,850 square kilometers.— The area in the Province of Itenez lying between the Mamore and the Itenez, the meridian 64° west of Green- wich, and the parallel 13° south. D. Department of El Beni, 17,000 square kilometers. — This zone lay in the same Province, and comprised the country between the Rivers Paragua and Itenez-Guapore and the limits of El Beni with the Department of Santa Cruz. E. Department of Cochabamba, 18,500 square kilometers.— This region consisted of the basins of the Rivers Isiboro and Secure, in the Provinces of Ayopaya and Chapare. F. Department of Santa Cruz, 92,800 square kilometers.— This large tract of land lay in the Provinces of Velasco, Chiquitos, and Cordillera. The first and northern section comprised the region between the River Paragua, the boundary of zone C, the River Verde, and the Brazilian frontier. The central section of the zone comprised the lands situated between the Rivers Sapocos, Oriental, San Miguel, and San Luis and the highlands in which they rise. The third and southeastern section comprised the basin of the River Otuquis, the highlands of San Juan and Sunsas and the land about the headwaters of the Rivers San Fernando, Santo Corazon, and La Caique, which rise in the Sunsas Hills. G. Department of Chuquisaca, 67,750 square kilometers. — This zone comprised the central and eastern parts of the Province of Azero. H. Department of Tarija, 30,250 square kilometers. — This zone embraced the lands in the Province of Gran Chaco lying between the twenty-first parallel, the Pilcomayo River, the sixty-first meridian, and a line running parallel to the Pilcomayo at a distance of 111 kilometers (69 miles) from that river. SMALL BENEFIT TO STATE— SUSPENSION OF ORIGINAL LAW. Under the provisions of the law of 1905 fiscal lands were granted with such reckless prodigality that the Government at last took alarm and, by law of September 11, 1915, suspended entirely the operation of the former law. The only recourse left to persons desiring to acquire public lands was by petition to the National Congress, a slow and costly process. The time first allowed for the perfection of titles was successively extended to the end of 1920. To the middle of 1919 final titles had been granted to the following extents of territory: Department: Hectares. Department (continued): Hectare. El Beni 1,233,100 Territory of Colonias 4, 610, 051 Territory of the Chaco. . . 2, 373, 743 Territory of Oriente 497, 537 Total 13,426,550 Chuquisaca 527,691 La Paz 282,947 Cochabamba 649, 437 Potosi 30 Tarija 272,137 Santa Cruz 2,979,877 Nearly all the lands sold in the Territory of Colonias were acquired by the great rubber interests of Suarez Hermanos. The German firm of Staudt & Co. acquired more than 1,000,000 hectares along the Pilcomayo, but have failed to perfect their title to another large area 192 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. to which they had pretensions. Manuel Pena was granted 1,462,500 hectares in the Paragua Basin of the Department of Santa Cruz. The small benefit to the State from these cessions has been entirely disproportionate to the vast extent of the lands ceded. In the Su- preme Decree of May 22, 1915, President Montes declared that "the innumerable holdings granted up to the present, with no other require- ments than priority of claim and the payment of 10 centavos per hectare have in no way favored colonization, much less aided the agricultural and pastoral development of the lands ceded." ■ And in 1919 Jose S. Quinteros, Minister of Colonization, said: "The law of October 26, 1905, had an effect opposite from that hoped for in the original plan of colonization, giving rise to the exhaustion of the fiscal lands, which have passed in vast areas to dead hands. These constitute veritable latifundia, that are of no advantage to the nation, since they remain uncultivated. * * * The concessionaires hold their estates with the sole object of reselling them to foreign enterprises, from whom they expect to receive fat profits." The insignificant tax of one-half centavo per hectare levied on lands sold for purposes of colonization was not sufficient to force the owners to develop their holdings. ESTABLISHMENT OF THREE NATIONAL TERRITORIES. One of the principal objects in the establishment of the three national territories of Colonias, Gran Chaco, and Oriente was the promotion of colonization in those vast undeveloped regions of the Republic. The first of these was organized as the Territory of the Colonies of the Northwest (Territorio de Las Colonias del Noroeste) by a law of October 28, 1890, for the government of the region of the Acre and the Madre de Dios. For a time it was administered from Riberalta in the Beni, where the delegate had his headquarters, but the seat of government was later moved to Cobija on the Acre. In this region everything else has been subordinated to the extrac- tion of rubber, and little effort has been made by such interests as Suarez and Braillard to colonize the State lands that they have acquired there. In fact, most of the new settlers have been Bra- zilians, whose persistent loyalty to their country of origin has been a cause of serious concern to the Bolivian Government, which is still mindful of its experience with the lost Acre country. The "Delegacion," or Territory, of the Oriente Mas created by law of January 11, 1911, from tlie eastern part of the Department of Santa Cruz, and with the seat of administration at Puerto Suarez. The duration of this territorial government has been twice prolonged, finally to January 4, 1924. Most of the lands granted under the law of L905 have' heen located along the Puerto Suarez-Sant a Cruz trail or to the north of this route. The few colonies settled with Bolivians at Puerto Suarez, ViUazonia, Warnes, and Robore have not flourished l<> any degree. Tin- very town site of Puerto Snare/ belonged to the German Sociedad Comercial Matto Grosso y Bolivia, from which the settlers were obliged to acquire their lots. The Bel- gian Sociedad Belgo-Sudamericana has a large program for the Qorth- eastern pari of the Territory, with Laguna Caiba as an outlet to the Paraguay River, LABOR CONDITIONS. 193 The Territory of the Gran Chaco was established by law of Decem- ber 27, 1905, for a period of five years, but this period has been twice extended. It comprises the little-known country to the left of the lower Pilcomayo River. Though a matter of dispute with Paraguay, Bolivian occupation of this region has become increasingly effective. Villa Montes on the Pilcomayo represents an effort of the Government at national colonization, and efforts have been made to induce natives of the country to settle about the "fortines," or garrison posts, along the Pilcomayo. Strips of land facing on that river have been granted, but little has been done toward serious development, though increas- ing numbers of cattle are being raised. Liability to droughts and to inundations at the different seasons of the year has been an obstacle to the settlement of an otherwise good region. LAW GOVERNING IMMIGRATION. The basic law governing immigration into Bolivia is contained in the supreme decree of President Montes of March 18, 1907. The sole qualifications fixed for immigrants desiring to avail themselves of the Government aid provided for by the law were that they be workmen, farmers, or manufacturers less than 60 years of age, and that they give evidence of good character and fitness. The immigrant who satisfied these conditions might enjoy the following privileges: (1) Free passage within Bolivia to his destination over the rail- ways and public roads of the country — this including the immigrant's wife and sons over 18 years of age. (2) Freedom from customs duties for his personal belongings, including tools and implements. (3) The right to acquire 50 hectares of State land at a price of 10 centavos per hectare, each son over 14 years of age to have the right to an additional tract of 25 hectares. Payments for land might be made either at the time of occupation, or in five annual installments of 1 boliviano each. Sons over 18 years of age were permitted to acquire a lot of 50 hectares on their own account. After a period of three years and after perfecting the title to his first tract of land the immigrant might buy two additional lots. The law constituted all Bolivian consulates as agencies for supplying information to prospective immigrants. A special section was created in the Ministry of Colonization and Agriculture, to be known as the Oficina de Trabajo, or Labor Office, for carrying out the provisions of the immigration law. RELATIVELY SMALL NUMBER OF IMMIGRANTS. The law of 1907 has had few definite results. The Government has lacked the means to carry out the feature of immigrant aid provided for in the law, and in attempting to attract bona fide immigrants has had to compete with countries like Brazil and Argentina, that are more favorably situated in this respect. Bolivia has also suffered from the disadvantage of its inland position, the lack of an accurate cadastral survey of its public lands, and the lack of markets for the regions that are open to immigration. These regions combine great natural advantages, but because of the lack 44462°— 21 13 194 BOLIVIA: A COMMEBCIAL AND INDUSTRIAL HANDBOOK. of transportation facilities the natural riches of the vast eastern plains can find no outlet. Those who settle in that part of Bolivia can hope for a living, but for many years they can expect little more than a bountiful supply of food for their consumption. Only single men should settle in this region, unless the immigrants are from countries where women of the rural populations are accustomed to hardships. A few Japanese have gone into Bolivia from Peru by way of the Madre de Dios and settled in the Beni. Some Brazilians have crossed into Bolivia from the Acre and Amazonas regions to engage in the rubber industry. There has been a small immigration of Argentinians in the south, and a small number of Chileans have entered Bolivia to work in the mining regions. A handful of Ameri- cans have settled in the Santa Cruz and Chiquitos country. But there has been no real immigration on any appreciable scale. As for the plateau, no State lands remain there for sale to immi- grants. There are undoubted opportunities for the breeding of live stock, including hogs about Lake Titicaca, cattle in Carangas, sheep in several districts, and mules in the valley of Mizque. However, the inhospitable appearance of the country or its unhealthfulness (as in the Mizque region) discourage foreigners from settling there. Land must be acquired by private purchase, and, as everywhere in Bolivia, there is no regular land market or dealers in real estate. A foreigner desiring to buy land on the plateau would have to settle down in La Paz for a time, advertise, and make inquiries, and even should he encounter a tract of land for sale it would most probably be difficult to agree on a reasonable price with the owner. TRADE. THE BOLIVIAN MARKET. In gauging the purchasing power of the Bolivian market it is necessary to take into account the peculiar racial composition of the nation. The population is predominantly Indian and mestizo, and the general level of the standard of living is correspondingly low. The Indian buys few imported goods beyond some ordinary textiles, hardware, dyes, and cheap notions. Moreover, this is a field that will admit of little expansion unless the Indian's earning capacity and standard of living undergo a radical change, which is very unlikely for some time. In these respects the general level of the mestizos or cholos is considerably higher than in the case of the Indians. However, there are wide differences between the various degrees of cholos, whose condition merges on the one hand into that of the Indians and on the other approximates closely to the status of the whites. The income of the men of this class varies from about $15 to $45 a month. Those who work as skilled laborers or are engaged in business on their own account may make more. The woman of the family is also very often an earner, and it is common for the boys to begin work at 10 or 11. In spite of its limited earning capacity, the cholo class takes a wide variety of imported goods and is constantly demanding a higher grade of merchandise. In addition- to hardware and textiles, they buy large quantities of foreign foodstuffs and groceries, not only such items as rice, sugar, and tea, but also pre- pared foodstuffs, such as canned goods. Though the cholos are not buyers of foreign shoes, they take most of the low and medium grades of wearing apparel imported into the country. Some of the women of this class also wear expensive silk shawls. They are good buyers of prepared medicines and are prone to spend a dis- proportionate share of their income for talcum powder, perfumes, and other toilet articles. They are also inclined to buy cheap and showy jewelry. The whites, who form a minority comprising not more than 20 per cent of the total population, are the sole buyers of the higher grades of imported merchandise. However, it is doubtful whether there are 10,000 families in Bolivia with an annual income of $1,800. There are probably not more than 50 families with an income of $10,000 a year. The persons comprising this minority have tastes and standards of living more or less on a plane with those of the same rank in any modern society. They dress uniformly well, they furnish their homes with increasing comfort and good style, in contrast to the former barrenness of South American houses, and they have become accustomed to a greater variety of diet at their tables, calling for a good grade of foreign foodstuffs. They are constantly demanding more of the so-called nonessentials and luxuries. 195 196 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The annual per capita consumption of foreign goods in Bolivia is between SI 5 and $25. It is easy to overload such a market in most lines of merchandise. Local importers, as well as foreign exporters, are liable to overestimate the quantity of a given commodity thai this market can absorb. The inability of importing houses to dispose of undulv large orders of foreign goods has sometimes furnished a pretext for tlieir protesting the drafts for the payment of such unsalable merchandise. It must be remembered that only in a few lines, like cottons, ordinary hardware, and such foodstuffs as rice, flour, and sugar, is the demand even remotely commensurate with the numerical size of the buying population. BUSINESS INTERESTS. As in most parts of South America, the native of the country holds a relatively unimportant place in the commercial life of Bolivia. With the exception of a few firms, including those of Ormachea, Urriolagoitia, Jorge Saenz, Arauco Prado, and Portillo, the majority of the general importing and exporting interests are foreign. Boliv- ians are better represented in retail business, where there are some very substantial houses, like that of Jose M. Carballo in La Paz. American commercial interests in Bolivia are represented by such general trading houses as those of Denniston, Pringle & Velez. and Kelly & Fletcher. The important house of W. R. Grace & Co., though its base of operations is in New York, has a large British per- sonnel, and the manager of its Bolivian business is a native Bolivian long prominent in promoting the industrial interests of his country. There are several important British importing and exporting com- panies, including those of Duncan, Fox & Co.; Graham, Rowe; Williamson & Co.; and Mason Bros. The list also includes the names of R. G. Williams and the Anglo-Bolivian Rubber Estates (Ltd.), which carry on a general merchandise business in eastern Bolivia in addition to their rubber operations. The largest dealer in men's furnishings in La Paz (A. G. Thompson) is British, as is the best pharmacy in Oruro, the "Botica Inglesa." Among houses of French nationality are those of Levy (La Paz), Etienne (Oruro), and Picollet (Beni). The Germans have long held a prominent place in Bolivian busi- ness. The high position held in imports into Bolivia before lit 14 was largely due to the strong local representation which the Germans had built up. Though the war and the operations of the Allied "black list'' gave a setback to the development of this trade, the German houses in Bolivia maintained their organization and by 1920 showed signs of recovering much of their former importance. Though these houses covered the entire country, (heir activities were especially evident in eastern Bolivia. The Germans had virtually sealed up the interior country l>v controlling the ap- proaches to that market, as well ;is establishing trading houses ;:t such interior points as Trinidad and Santa Cruz. At Riberalta in the Beni were the houses of Xeller-Yillinger and Barber; at Puerto Suarez were Zeller-Villinger and Staunen, Schnack, Muller (Sociedad Comercial Matto Grosso y Bolivia); and at iacuiba :m! absolutely necessary in Bolivianos. Santa Cruz 400-800 Tarija 200 Tupiza 200 Uvuni 250 TRADE. 201 all cases, a speaking knowledge of Spanish gives a salesman an advan- tage whose value it is needless to insist upon. A man covering the west coast in any standard line could profitably spend from two weeks to a month or more in La Paz and a few days each in Oruro and Cochabamba. In certain lines a short trip into Potosi might be advisable. Sucre is less readily accessible. The principal obstacle to the activities of foreign traveling sales- men in Bolivia is the vexatious system of license taxes levied by the different municipalities. These are entirely local in character, being levied only in the particular city where paid. They are not only very considerable in amount, but for a salesman who desires to cover sev- eral cities the payment of the aggregate sum of licenses may well prove a severe drain on his profits from sales or actually leave him with a deficit. Salesmen who plan a trip to Bolivia should carefully calculate the relation of this expense to the prospective results of their sales campaign, so as to insure themselves against a loss. How- ever, it must be remembered that in cases where the salesman feels confident that the future business in store for his house will justify the initial outlay, there should be less hesitancy in incurring the expense of license fees. The following table shows the scale of license fees levied in the principal commercial centers of Bolivia: Bolivianos. La Paz 250 Cochabamba 1, 000 Oruro 250 Potosi 200 Sucre 300 It is the custom to farm out the collection of this tax to the highest bidder, though it is sometimes administered directly by the city gov- ernment. Salesmen should call at the ' ' impuestos," or tax, office of the "Municipalidad," or city hall, for information regarding the method of payment, or they may secure this information at the Ameri- can consulate. The tax concessionaire is allowed considerable lati- tude in the assessment of the tax, and it has sometimes been found possible to secure a very substantial reduction of the fee by careful bargaining and by holding out the prospect of leaving the city with- out paying any tax whatever, even at the sacrifice of transacting no business. Payment may also be evaded by operating as representa- tive of the salesman's own agency in the country. Thus the traveler grants the representation for his firm to some local concern and in turn carries on his sales campaign in the capacity of agent of the latter. However, tins requires, in the first place, special care in the selection of an agency, as the agreement made with the local firm would probably continue after the salesman's departure. Also, un- less skillfully handled this procedure may lead to trouble with the local authorities, whom it is sometimes difficult to impress with the bona fide character of the arrangement. The salesman's license is valid for a year, and there are no further restrictions on the holder during that period. Local merchants in Bolivia generally welcome the visits of sales- men as giving them an opportunity to examine samples of goods in which they are interested. Any obstacle to this direct contact between buyer and seller should be discouraged and the fullest liberty of trading allowed. The more progressive Bolivian leaders 202 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. recognize the defects of the present licensing system and the injus- tices which it causes to both importers and exporters, and they are in favor of a national license of reasonable amount, to take the place of the present locally assessed fees. "The system is cumbersome and prejudicial to the development of international commerce," said Jose Luis Tejada, former Minister of Finance. Salesmen, like all other persons visiting Bolivia, are required to carry a passport, which is also useful for purposes of identification at the American consulate or legation. The consulate at La Paz is in possession of a large and up-to-date mass of information on trade conditions in the country, and a call there may be of considerable value to a salesman not familiar with local conditions. It is also of great advantage to the salesman to carry letters of introduction, not only from his principals, but also from banks or other high sources in his country. South Americans are much impressed by this kind of document and look on it as a guaranty of the salesman's reliability. Those who are well provided with such papers find it much easier to gain the confidence of the local business men. A power of attorney is necessary only where it is planned to enter into contracts, or where it is desired to obtain advance payments on orders. Salesmen may obtain the necessary data on which to compute their scale of traveling expenses from tne section of this work entitled "Travel Notes" (p. 256). The following rules regulating the importation of samples into Bolivia are translated from the customs regulations of that country: Article 192. Samples are all pieces of textiles and other such articles having no appreciable value. Samples are also manufactured articles which have a value but which are imported in small quantity and manifestly for the purpose of displaying the character of the articles. Art. 193. Samples may be disembarked without any delay and at once after the presentation of the ship's manifest to the customs authorities by the captain of the vessel in which the samples are imported, prior to the submission of the itemized manifest of the ship's cargo. Cases containing samples, however, which have been listed in the itemized cargo manifest of the vessel may not be disembarked prior to the submission of the manifest and must submit to the usual requirements for other merchandise imported. Art. 194. A special form of invoice is used in declaring samples for entry by the customs authorities. This form is to be made out in quadruphcate. Art. 19">. Customs inspectors will accept as samples only such merchandise as in their judgment can properly be classed as such. If merchandise presented as samples is not accepted as such by the inspector, this fad shall be noted on the declaration and the mer< handise will be subject to the duties ordinarily collected on goods of the same class, provided the goods introduced as samples appear in the Itemized manifest of the vessel by which they were imported. If nol so listed, the goods introduced as samples shall be subject to a fine amounting to double the usual duty. Art. J9 ing samples of this nature must be obtained by formal application to the collector of the customhouse in which the goods are Btored. Abt. L99. The trunks of commercial travelers containing samples from which Bales an- to !"■ made and which have been admitted under bond with the under- TRADE. 203 standing that the same, together with all of their contents, shall be reexported, must be presented to the collector, prior to their reexportation, for the necessary inspection of their contents. In order to obtain the refund of the amount deposited or the cancellation of the bond, a landing certificate must be presented originating with the collector of the customhouse at the foreign port to which the goods have been transferred or with some Bolivian consular official in that country. Thus, only samples without commercial value may be imported free of duty. The customs authorities usually mutilate the samples in such a manner as to render them unsalable, without destroying them. However, the owner should see to it that the customs inspectors do not render his samples unfit for display purposes, as has sometimes occurred, when samples have been so mutilated as to lose all value even as such. Samples in general may be imported without payment of duty under bond furnished by a bonded customs broker, which is canceled upon the reexportation of the samples, unless some of the samples are sold, in which case the amount of duty leviable on the samples sold is withheld. The reexportation of the samples need not be made through the same customhouse through which they were imported, and the bond is canceled upon the presentation of a certificate from the customhouse of reexpor- tation. The samples are permitted to remain in the country for a period of 90 days, which may be extended for 30 days longer, after which time, if the samples have not been reexported, the duty is collected. The clearance of trunks and sample cases requires from one to three days after their arrival, though it is sometimes possible to secure their release on the day of arrival. However, baggage arriving at a given destination after 4 o'clock will not be examined by the customs authorities until the following day. For checking his baggage from one point to another the traveler should appear at the station at least half an hour before the departure of the train, as the weighing of trunks and other formalities are carried out with great deliberation. This can generally be handled by a porter from the hotel where the salesman is staying. Particular care should be taken not to lose the "guia" or receipt for the baggage shipped. COMMISSION HOUSES. Much of the buying in Bolivia is done through commission houses. This is the rule with the smaller retailers, but is also the practice of the larger buyer. The latter often prefers it, in spite of the added cost of the goods which it entails, because it relieves him of the trouble connected with bringing the goods from the United States, and be- cause he can order from the samples or catalogues which the com- mission houses always have, or even from the stock in their " bodegas" or warehouses. In the latter case he can replenish his stock on short notice instead of having to wait two or three months for the arrival of the goods -from the exporter. From the exporter's or manu- facturer s standpoint, the advantage of dealing with the foreign trade in this way lies in the commission firm's greater familiarity with local market conditions and the ability of its organization to cover the field more effectually than could be done from an office in the United States. However, in giving exclusive representation for a certain line to these houses it must be remembered that some of them are already overloaded with agencies. When one of these houses carries 204 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. a number of competitive brands in the same line, it is almost inevi- table that it slxmld push one of these brands to the disadvantage of the others. While some commission houses act as jobbers and sell on a commission basis, others sell on consignment. TERRITORY TRIBUTARY TO PRINCIPAL CENTERS. LA PAZ. La Paz is the principal distributing center of Bolivia. Though it is fax from the geographical center 01 the plateau country, its excel- lent connections with the coast give it a distinct advantage as an importing point, while the Bolivia Railway connects it with the other cities of the plateau, except with Sucre, which is not located on a rail- way. Its commercial sphere of influence does not, however, extend much below the line of the Rio Mulato-Potosi Railway. Nearlv all the important importing houses have their head offices in La Pa/. However, there are a few exceptions, such as Graham, Rowe & Co. in Oruro, several Cochabamba firms, and Urriolagoitia, of Sucre. The plateau area can be covered from La Paz better than from any other city, though it is the exclusive distributing point only for the surrounding Provinces of the Department of La Paz. Imports by Antofagasta are largely distributed from Uyuni, Potosi, Oruro, and other points. The La Paz firms send salesmen into the districts not directly covered by then- branch houses, though merchants in the smaller places also make business trips to La Paz or other cities for the purpose of making their purchases. ORURO. Oruro is more nearly independent of La Paz than any other city of importance, though large quantities of goods are bought through the larger city. The territory more or less tributary to Oruro includes the Department of that name, part of the mining region in the ad- joining part of the Department of La Paz, the very important mining districts in the northern part of the Department of Potosi, and the Department of Cochabamba. Because of its position as the chief mining center of Bolivia, Oruro is a very important commercial city, ranking next to La Paz in this respect. Tin mining camps for a wide radius are supplied from Oruro, though La Paz competes with Oruro For this valuable trade. In fact, most of the important Oruro houses are brandies of La Paz linns; there are, however, several exceptions to this rule. The tribu- tary country is well covered by the agents of these houses. There is always a large demand for miners' tools and general hardware, ex- plosives, sacks for " barrilla," and fuel and lubricating oils. Local manufacture is now supplying much of the demand for min ers' clothing. The Bolivian shoe factories are making a strong shoe for miners, which retails for about II bolivianos, and high-laced boots, which sell for 40 to 45 bolivianos. Leather clothing of good quality, well suited to wear in the mining camps, is also being pro- duced, a full suit of such material being sold for about 100 bolivianos. There is always a good market for the "bayetas," or bright-colored coarse baizes worn by the "chola" class of women. Considerable quantities of canned goods are also sold in the mining centers. TRADE. 205 Most of the mining machinery is sold through about half a dozen important houses, which watch this demand closely from their Oruro or La Paz offices. Total imports through the Oruro customhouse for 1918 amounted to 8,625,200 bolivianos, or approximately one-fourth of the total im- ports of Bolivia. However, this does not include the large quantities of goods reshipped from La Paz into the Oruro district. COCHABAMBA. Though Cochabamba buys from both Oruro and La Paz, there is a growing tendency on the part of its merchants to buy directly from abroad. The market covered from Cochabamba includes all of the Department of that name, (except the corner nearest to Oruro), the upper Mamore basin of the Beni, and the western part of the Depart- ment of Santa Cruz. Since the opening of the railway from Oruro in 1917 there has been a decided improvement in general business conditions in the Cocha- bamba district. Some local merchants declare that the volume of their business has doubled during this time. However, there is needed not only a greater development of the immediately tributary terri- tory, but also the opening up of better connections with the country to the east and northeast — that is, with the regions of Santa Cruz and the Beni. There is little local capital for the development of industries, and whatever is given to the further development of the district must come largely from foreign money and initiative, the introduction of which the people of the region will welcome and facilitate. Because of the lack of extensive mineral deposits such as exist in the Depart- ments of the plateau, the progress of this territory must depend not only on the expansion of Cochabamba's trade with other Depart- ments, but also on agricultural development and the initiation of manufacturing, such as that of flour, whereby the agricultural prod- ucts of the region can be utilized. In the matter of its foreign trade, Cochabamba is becoming more and more independent of La Paz and Oruro and is disposed to deal directly with the exporter. Because of its inland position and the number of changes necessary on the way, it is advisable to have arrangements made with consignment agents in Arica or Antofa- gasta to forward goods destined for Cochabamba, though this matter is generally handled by the ultimate consignee. Imports for the district come in through both these ports, though in the case of mer- chandise from the United States there is an increasing tendency to favor Arica over the more southerly port. The trade of the tributary towns is handled by agents sent out by the importing houses in Cochabamba. The most important of these towns are Quillacollo, Punata, Tarata, Cliza, Arani, Sacaba, Mizque, and Aiquile, which, with the exception of Mizque, have populations of 1,000 to 10,000 people. In addition to these towns, there are those on the way to Santa Cruz and the trading centers of the Beni. Cochabamba is the chief center of German trading activity in Bolivia. Though their trade suffered during the war, the German houses there have maintained their organization and some of them are among the most efficient in Bolivia. They are now buying 206 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. through local American and British importing houses and reselling the goods in the interior and even in the immediate locality of Co- chabamba; some arc dealing directly with American exporters. Nearly all the business with Santa Cruz and the Beni country is in their hands. POTOSI. As Potosi lies in the contested zone of attraction of the Arica and Antofagasta routes, it buys from both directions. Houses in Anto- fagasta, as well as in Oruro and La Paz, cover this field, and there is a certain amount of direct buying from abroad. Practically all of the goods sold in the Potosi district are bought indirectly through Oruro or La Paz, or through Antofagasta. How- ever, although few houses import directly from abroad, there is an increasing tendency in this direction. Some important La Paz houses maintain agencies in Potosi for handling the trade of that region. The Jugo-Slavs control the grocery business, as in Oruro, and are entering the hardware business to an increasing extent. There are relatively few well-to-do families in the city, and very little high-class merchandise is seen in the local stores, which gener- ally carry mixed lines of goods; many of these resemble the oriental bazaar in arrangement. Since the buying capacity of the majority is very small, this factor largely determines the conditions of the local mercantile business. Among the most important items of local trade are tocuyos, or sheetings, and cheap flannels for the In- dians and cholos. Mine supplies, including dynamite, cement, lumber, lubricating and fuel oils, calcium carbide, etc., are naturally in great demand in the trade of the district. The total value of the business of the country tributary to Potosi, except the Sucre territory, is not great. The region includes such towns as Puna, to the southeast, and Betanzos, to the east, and some merchandise is also sent to places as far away as Cotagaita and Camargo, though the latter towns are also supplied from other cen- ters, such as Uyuni and Tarija. SUCRE. Sucre's commercial position is similar to that of Potosi, through which its external trade is forced to pass. However, Sucre is even more dependent on intermediary selling agencies than is Potosi, though some of the more important local houses buy directly from the United States and Europe. Sucre is not at present a place of great commercial importance, in the degree to which, for example, ( )ruro is. The limited resources of the surrounding country do not permit any considerable expansion of the city's business, and any future development must largely come through the exploitation of the region to the east, particularly in the Provinces of Azero and Tomina, where the petroleum and other mineral fields of the Department are Located. There is a relatively large amount of local capital for investment, but it IS not in sufficient quantities for the conduct of huge enterprises, and local financial interests would welcome the introduction of American capital and skill for the promotion of those undertakings for which their own means are inadequate. TRADE. 207 Local business houses buy either directly from the United States or Europe, or through Potosi or La Paz houses. The latter is prob- ably the more common method of making purchases. Goods brought in through Antof agasta, in addition to the transshipment from steamer to train at that port, have to be transshipped again at Uyuni to Potosi, where they are loaded on mules for Sucre. This makes direct shipments to Sucre merchants difficult, so that goods have to be for- warded through consignment agents to the point of destination. Representatives of La Paz houses, or the Potosi agents of La Paz houses, make periodical trips into Sucre for the purpose of handling the trade of that place. The trade of towns tributary to Sucre, such as Padilla and, to a certain extent, Colquechaca, are covered by agents sent out in turn from the Sucre houses. Some families buy directly from mail-order houses in New York, a few of them keeping funds on deposit at these New York firms, against which they order. This fact is especially true of women's wearing apparel. It is notice- able that Spanish editions of style books are good mediums for reach- ing this class of trade and can be followed up by catalogues in that language. Sucre stores are generally unpretentious, and at the time of the writer's visit in 1920 the market appeared decidedly under- stocked. EL BENI. The principal trading firms of the Beni region are identical with the leading rubber companies which have been enumerated above, including such houses as Suarez Hermanos, Zeller, Villinger & Co., Braillard & Co., Alfredo W. Barber & Co., etc. Among these firms those of German nationality have predominated in the trade of the region. Some Syrians and Greeks also work as itinerant merchants selling goods from place to place along the rivers. The principal rubber exporters of this region are at the same time importers of merchandise, which they sell either from their houses in the principal towns or in the stores located about their rubber "barracas." Thus the 5,000 or more employees of a firm like Suarez Hermanos do their buying at the stores operated by this company. The principal distributing points are Riberalta, Villa Bella, Guayara- merin, Cobija, Trinidad, Magdalena, and Baures. Previous to the war the larger part of the merchandise sold was of German origin, but during the war Brazilian goods in many lines gained a prominent place in this market, and imports from the United States also increased considerably. Brazil not only has the advan- tage of being nearer to the market than any trade rival, but Brazilian products enjoy preferential rates in many cases on the Madeira- Mamore Railway. The German houses which trade in the Beni have also been accustomed to carry on a triangular trade, by which they exchange manufactured goods in Cochabamba and Santa Cruz for products of those districts, such as flour and beer from Cochabamba ana sugar, rice, coffee, alcohol, and lard from Santa Cruz. These goods are then sold in the Beni, where the houses obtain their rubber for export to Europe. The firm of Zeller, Villinger & Co. operates a large sugar mill near Santa Cruz and exports a part of the product to the Beni However, the decline of this local trade, because of the opening of the Madeira-Mamore Railway and the falling off in the rubber Dusiness of the Beni, has been one of the most important 208 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. factors in causing the present stagnation in business in Santa Cruz. Profits on sales of merchandise in these regions are very high, gener- ally ranging from 50 to 400 per cent. Much of the merchandise sold is put up with a view to external appearance rather than to real quality and durability. Unusual care must be used in packing goods destined for these markets, not only because of the rough handling that is inevitable, but because of the excessive humidity and the heavy rains of the wet season. The principal lines sold in this country are hardware, including general tools and cutlery and the special equipment used by the rubber gatherers; dry goods, especially cottons, notions, and ready- made clothing; perfumery, toilet articles, and novelties; canned goods and Hour; beers, wines, and liquors; drugs and patent medi- cines, including sulphate of quinine and aspirin. A market should be developed here for such lines as screen wire, water filters and coolers, launches and light canoes, and small ice-making machine-. A branch of the Banco de la Nacion Boliviana was established at Riberalta in 1913 and has greatly aided in financing commercial transactions in this region, Previous to its foundation the loss on the purchase or sale of drafts on Manaos or Para generalh^ amounted to 'from 5 to 10 per cent. There is a branch of the Bank of London k the River Plate at Manaos and a branch of the Mercantile Bank of the Americas at Para. Letters on La Paz and Cochabamba are accustomed to circulate for a long time as legal tender with the successive indorsements on the back. In the matter of exchange Bolivian currency is generally at a disadvantage as regards Brazilian money, especially in the towns along the border. Prices have been very high in this region as a result of the high costs of transportation and the excessive profits made by the trading houses. SANTA CRUZ. As in the Beni, there is a condition of general depression and stag- nation in business in the Santa Cruz country, and there can be little hope of any radical improvement until that region has better connec- tions with the outside world. Only the building of railways from either direction can give it the prosperity to which its natural possi- bilities entitle it. Hitherto the market has been a small one and has been left almost exclusively to the Germans, who work the field not only from their local trading houses, but from Cochabamba, Puerto Snare/.. Yacuiba, and the river towns of the lower Beni region. However, the entrance of the Madeira-Mamore TradingCo. into the held and recent huge sales in Santa Cruz by a British house of Cochabamba should mark the end of the German monopoly in that market. The principal goods in demand are cottons, canned goods, general hardware (such as axes. saws, and machetes), hats and general wearing apparel, usually of n cheap grade, prepared medicines, tin and galvanized wares, rifles, and light plows. There is also a Deed for small sugar-making apparatus, mills for husking rice, and light s;i\\mill equipment. It should be remembered that all machinery sent into the Santa Cru/ country must he transported from river ,or railhead to its destination by means of oxcarts, and that, moreover, such merchandise can not he transported <>\ er the Cochabamba route, which is used only by mules. TRADE. 209 UYUNI. The importance of Uyuni, which is the commercial center of south- ern Bolivia, is due to two factors. First of these is its position as a railway junction. At this point all freight and passengers must be transshipped between the lines, with different gauge, of the Anto- fagasta & Bolivia Railway and the Bolivia Railway Co. The second factor in the commercial importance of Uyuni is the existence of several important mines in the vicinity, including those of the Compania Huanchaca de Bolivia, the Aramayo Francke Mines (Ltd.), and the Compania Minera y Agricola Oploca de Bolivia. These companies maintain agencies in Uyuni, through which they purchase most of their supplies and which have charge of the trans- shipment of their ores for Antofagasta. Uyuni is commercially tributary to Antofagasta, practically all of the exports of the district being sent out through that port and its imports coming hi by the same route. The territory is covered by the agents of Antofagasta houses, some of which have branches in Uyuni. As some lines of American goods are inadequately repre- sented in Antofagasta, a like condition prevails in Uyuni. The American goods most commonly seen in Uyuni stores are canned goods, toilet articles, and certain lines of hardware, such as shovels, axes, saws, and knives of all kinds. The mines buy large quantities of such goods as lumber, cement, oils, galvanized iron, dynamite, petroleum, and tools and machinery. The most of such goods sold in this district are of American origin. In general lines of merchan- dise for the consumption of the local population there is little demand for high-class goods. The stores themselves are generally quite small and of mediocre appearance. TARIJA. Tarija, a city of 9,000 people, is situated in an isolated position in the south-central part of the Republic and close to the Argentine frontier. The latter circumstance determines the commercial posi- tion of Tarija, making it tributary to the Argentine railhead at Em- barcacion on the Bermejo. Other roads lead over the mountains to Tupiza and La Quiaca, where they connect with the main north-and- south trade route between Uyuni and Jujuy, and east to connect with the Embarcacion-Yacuiba-Santa Cruz road. Tarija's tributary country is relatively small, being restricted to the neighboring Provinces of the Department of the same name and part of the Prov- ince of Cinti, which lies in the southern part of the Department of Chuquisaca. TRADE-MARKS. Bolivia has ratified the scheme for a proposed international regis- tration of trade-marks, with a central office at Rio de Janeiro. How- ever, pending ratification by some other South American countries, this project has not yet been put into force. Meanwhile the registra- tion of . trade-marks is governed by the law of January 15, 1918, which was put into effect three months after that date. Trade- marks are granted by the Government for a period of 10 years, and renewals may be had for additional periods of 10 years, but they must be requested three months before the current term expires. Marks 44462°— 21 14 210 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. already registered at the time the law went into force continue to be protected for K) wars from the date of registration upon the pay- ment of the annual lees prescribed by the former law, and where the annual fees have been paid in advance for a longer period the regis- tration will continue in force throughout the time for which taxes have been paid,- hut no new payments of taxes for the purpose of ex- tending the duration will be accepted. The law resembles those of most other Latin American countries in recognizing priority of registration as the basis of ownership. Provision is made, however, for opposing the application for or securing the cancellation of the registration of marks consisting of names of persons or business firms. Where any trade-mark is op- posed, objection must be presented within 50 days after the first published notice appears in the Boletin Departamcntal. Claim for cancellation may be presented within 18 months after the appear- ance of such notice. After the lapse of that period the ownership of the trade-mark can not be contested. Priority of use is taken into consideration in some cases, as the law states that "where priority in the use of the mark is involved, only absolute proof will be accept ci I . Commercial names, including the names of corporations, arc entitled to protection without the necessity of registration. In order to secure additional protection such names may be entered in a special register directed to be kept for that purpose. Only in the case of marks for chemical and pharmaceutical products is registration compulsory. According to article 7 of the law, ''the registration of marks for chemical and pharmaceutical products shall be obligatory. In the case of medicinal specifics (patent medi- cines), the formula of the component substances shall be set forth on the container or on the conjointly affixed label." Application for the registration of a trade-mark must be directed to the "Jefe do la Oficina de Propiedad Industrial, Ministerio de Industria." With the application there must be transmitted six facsimiles of the mark, an electrotype not exceeding 10 centimeters long by 8 centimeters wide by 24 millimeters thick (3.9 by 3.15 by 0.94 inches) : two copies of description, in Spanish, indicating the prod- ucts with which it is to be used and stating the number ot the class, in eonformitv with the legal nomenclature (art. 37 of law of 1918). A copy of this law is on file in the Division of Foreign Tariffs, Bureau of Foreign and Domestic Commerce, Washington. A power of at- torney must be legalized by a Bolivian consular official in the United States. For each trade-mark covering a single class of merchandise there is a fixed charge of 30 bolivianos, plus 5 bolivianos lor each additional class covered. Collective trade-marks, and those covering more than six classes of merchandise, pay CO bolivianos. The special forms used hir registry or renewal cosl 5 bolivianos. _ Certificates of transfer cost 10 bolivianos. Legalized copies of previous certificates are made on stamped paper costing I boliviano. For each publica- tion of the cut of a trade-mark, with description, 2 bolivianos is charged. The description is published three times, at intervals of 10 days. The publication ot a commercial or industrial name, design, etc., costs J boliviano for each insertion. TRADE. 211 SHIPPING DIRECTIONS. PACKING. Packing of goods destined for Bolivia should be determined by the hard usage which is almost inevitable in transit and by the rough conditions of internal transportation. Freight is subjected to ex- tremely severe handling at the Pacific ports, where goods for Bolivia ,are disembarked. Merchandise is landed in lighters, and boxes may be dropped over the side of the ship into the lighter in a heavy sea — if they do not miss the lighter altogether. From the lighters freight is lifted by cranes onto a wharf and later loaded into cars for La Paz. Goods entering Bolivia via Mollendo must be transferred again at Puno and Guaqui on Lake Titicaca, and freight routed by Antofagasta is transferred at Uyuni. Only goods sent through Arica reach La Paz without change. Before reaching its ultimate destination in the interior of Bolivia merchandise will have been reshipped from La Paz or some other point having a customhouse, and will perhaps have been carried a long distance by mule train. Not only is merchandise that is carried by pack train liable to be damaged by rain between November and May, but on the narrow mountain trails the pack may be knocked off or damaged by a rock overhanging the trail or by a caravan passing in the opposite direc- tion. Goods that will certainly or probably be sent some distance from a railway should be packed accordingly. In order to prevent breaking up the original packages, goods should be packed, ii practi- cable, in boxes or waterproof bales of not more than 100 pounds each and not over 18 inches in thickness. As losses from pilfering are common on the way to Bolivia, packages should be made as secure as possible. In packing some classes of goods it is necessary to bear in mind that goods must pass through the Tropics on their way to Bolivia, and that, moreover, the climate of the lowland country of eastern Bolivia is very hot. There is a great difference between the different kinds of American packing that one finds in a Bolivian customhouse. There are cases of goods that are as well packed as any that come from Europe, and others that have been very carelessly put up. Certain American firms have a reputation in Bolivia for always packing well, and others are as well known by their bad packing. The director of the La Paz customhouse declared to the writer that with few excep- tions American goods are as well packed as those of any other nation. But it is the widely advertised exceptions that damage the reputation of American trade in general in Bolivia. - As all exports to Bolivia pass through a foreign port of entry, goods should be carefully marked to insure their arrival. West coast shipments should be marked, preferably with stencil, as follows: (Mark of consignee.) Via Mollendo (or Arica or Antofagasta). En transito La Paz, Bolivia. Goods shipped to the Beni regions by the Amazon route should be marked as follows: (Mark of consignee.) Via Para. En transito Riberalta (or other point), Bolivia. 212 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Freight for Puerto Suarez should be marked as follows: Mark of consignee. via Buenos Aires (or Montevideo) and < orumba. I'n tranaito Puerto Suarez, Bolivia. For Tarija the marks should read as follows: i Mark of consignee. Via Buenos Aires and La C^uiaca. En transito Tarija, Bolivia. ROUTINC. Freight for La Paz is generally routed by Mollendo or Arica, and for Oruro cither by these ports or by Antofagasta. The most practicable route for shipments to Potosi and Sucre is through Antofagasta. This also applies to Cochabamba, and is also the rule for shipments to Santa Cruz; however, the consignee- usually designates the port through which his order is to be sent, as he is more familiar with current conditions at the different ports, with the comparative freight rates to the plateau, and with facilities for forwarding freight to Bolivia. The usual routes followed by freight to different points in Bolivia are as shown in the following chart: TO I.A 1'AZ. Points of transshipment. Routing from points of transshipment. Route A : Mollendo Southern Railway of Peru. Puno Lake Titicaea steamer. Guaqui Guaqui-La Paz Railway. Route B : Arica Arica-La Paz Railway. TO ORURO. Route A : Mollendo As above to Viacha, thence by Bolivia Railway. Route B: Arica As above to Viacha, thence by Bolivia Railway. Route C: Antofagasta Antofagasta & Bolivia Railway. Uyuni Bolivia Railway. TO POTOSI. Antofagasta Antofagasta & Bolivia Railway. I yuni. Bolivia Railway, via Rio Mulato. TO SUCRE. Antofagasta Antofagasta & Bolivia Rail way . lyuni Bolivia Kail way. via Rio Mulato. Potosi Mule train or c art . To TARIJA. Route \ Antofagasta Antofagasta A Bolivia Railway. I yuni Bolivia Railway. Atocha Mule train. Route B: Buenos Aires Central Argentine Railway. Tueuinan < 'eiitral Xerte Railway. I'.inliarcacion Mule train. TO lanii; \ i t a. Para Amazon River Bteamer. Porto Velho Madeira Mamore Railway. Guayarameriii ' txcarl or nude train. TRADE. 213 TO SANTA CRUZ. Route A : Para Amazon River steamer. Porto Velho Madeira-Mamore Railway. Guayaramerin Mamore River steamer. Puerto Velarde orCuatro Ojos. .Oxcart or mule train. Route B : Mollendo or Arica As above to Oochabamba. Cochabamba Mule train. Route ( ! : Buenos Aires Central Argentine Railway. Tucuman. Central Norte Railway. Embarcacion Mule train. Route D : Buenos Aires Parana Rh^er steamer. Corumba Barge and launch. Puerto Suarez Mule train or oxcart. TO TRINIDAD. Route A : Para Amazon River steamer. Porto Velho Madeira-Mamore Railway. Guayaramerin Mamore River steamer. Puerto Ballivian Oxcart. Route B : Arica or Mollendo As above to Cochabamba. Cochabamba Mule train. Todos Santos Launch. Puerto Ballivian Oxcart. Directions such as "Handle with care" and "This side up" should be given in Spanish or, preferably, in both Spanish and English. In connection with the Arica route, it seems pertinent to present the following statistics, showing the movement of Bolivian com- merce through that port; the figures were furnished by the Bolivian consulate and customs agency at Arica and were transmitted by American consul Homer Brett: TOTAL BOLIVIAN TRADE VIA ARICA IN 1919 AND 1920. Class. 1919 1920 Metric tons. Chilean pesos. 1 Metric tons. Chilean pesos. 1 Imports 33,547 32, 627 19,287,622 31,543,083 45,558 42,174 29, 940, 8S1 52, 166, S81 Exports Total 66, 174 50,830,705 87,732 82, 107, 762 1 The Chilean gold peso is equivalent to about 36.5 cents. BOLIVIAN IMPORTS VIA ARICA IN 1920, BY COUNTRIES. Countries of origin. Kilos. Argentina 30, 056 Belgium ! 181, 655 Canada I 16, 008 Chile ' 16, 737, 508 China 335, 485 Denmark i 1,600 Ecuador j 640 France I 256, 520 Germany i 414, 065 Great Britain I 5, 172, 730 India I 168. 369 Italy I 50,820 Chilean pesos. 64, 325, 13, 9,649, 214, 7, 720, 1, 405, 5,260, 125, 236, Countries of origin. Japan Netherlands.. Norway Panama Peru Portugal San Salvador. Spain Sweden United States Uruguay Kilos. 114,305 77,977 137,042 376 ,792,652' 5,828 4,091 226, 659 261,901 , 522, 710 48, 813 Chilean pesos. 74, 789 133,717 244,571 1,140 1,025,276 34, 988 47, 222 470, 386 324, 607 9, 526, 788 33,288 214 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. BOLIVIAN EXPORTS VIA ARICA IN 1920, BY ARTICLES AND COUNTRIES. Articles and countries of destination. Kilos. Chilean pesos. Articles and countries of destination. Kilos. Chilean pesos. 24,643,079 22,824,079 1,794,022 24, 978 228,72! 217, 393 11,331 16,621,056 12,671,762 3,874,454 74,840 5,271,142 4,307,997 947, 696 15,449 1,310,832 1,257, 127 53,705 44,339,532 35,494,314 8, 725, 490 119,728 V\ olfram 227,184 29,871 8,914 55, 735 235, 769 133, 379 23,659 4,724 54,899 391,317 United Status France Great Britain Germany 213,115 39,988 Italy 13,511 Silver L24,703 < >IIht articles 854,058 United States Great Britain France Germany 530,837 Tin ... 2M1.M2 13,749 5,980 Peru 13,729 Total 42,174,470 52, 166, 881 SHIPPING DOCUMENTS. Because Bolivia has no seacoast, through bills of lading arc not issued to that country. Goods reach Bolivia by way of ports that are either Peruvian, Chilean, Argentine, or Brazilian. They are billed and consigned to the foreign port of transshipment, whence they are forwarded to the ultimate consignee in Bolivia. This necessitates marking the goods in such a manner that the transit character of the shipment may be evident. For this reason, as has already been indicated, all packages should be stenciled with the words in Spanish: "En transito para Bolivia." Otherwise import duties may nave to be paid at both the port and the Bolivian customhouse. The importer generally designates in his order the port at which the merchandise is to be disembarked and the forwarding agent who is to have charge of transshipment at the port. Among the more important " despachantes de aduana" or forwarding agents at the west-coast ports are the following: MOl.I.KN DO. Mollendo Agencies (Ltd.) (W. R. Grace & Co.). Golding & Co. Donnelly & Co. Cazorla Hermanos. Arica Agencies (Ltd.' Tomaa Bradley. Lionel Barbel & Co. Oscar M. Barrios. R. Valenzuela A: ( iia. ('. G. Barahona. (W. R. Grace & Co.). ANTOFAG \ST \. W. R. Grace <£ ' o, i Nitrate Agencies, Ltd.). n M. Barrios. Barnett & I !o. CONSI'LAK INVOICKS. According to presidential decree of June L8, L918, live copies of consular invoices are required for shipment to Bolivia. The snipper receives one copy of each set of invoices. One is sent to the custom- house of entry, one to the National Bureau of Customs, one to the TRADE. 215 National Treasury, and the fifth is retained in the files of the con- sulate. Additional copies may be obtained from the consulate. Consular invoices must be written in Spanish and must be accom- panied by the bills of lading, commercial invoices, and any other documents necessary to prove the actual marke.t value of the mer- chandise declared. It is required to give the following data in the consular invoice: Name of the consignee at the place of transship- ment, name of the ultimate consignee in Bolivia, and the net and gross weight in kilos. The form of the Bolivian consular invoice is as follows: FACTURA CONSULAR PARA BOLIVIA. Consular invoice for Bolivia. Ejemplar No. Copy No. No. de Factura, No. of iavoice. Destinada a la Aduana de Destination customhouse of por- by -, del puerto de ■ from the port of No. de Orden, . No. of order. por las mercaderias que Be expresan, embarcadas for merchandise described, shipped -,el- the y riesgo de and risk of a la consignacion de to the consignment of de . of de of de 19 — , en el vapor - 19 by steamer -, Capitan Captain de of — , de orden, por cuenta to order, and for account Marcas . Marks. Numeros. Numbers Bultos . Cantidad. Quantity. Clase. Kind. Clasificacion de la mercaderia. Classification of merchandise. Peso en kilos. Weight in kilos. I v alor par- cial de la mercaderia y total de la factura. Partial value of the merchan- dise and total amount of the invoice. Bruto. Gross. Neto. Net. Derechos percibidos por el consulado al 2% sobre factura. Fees charged by the consu- late at the rate of 2% on the invoice. If the price declared in the consular invoice is evidently less than the true value of the merchandise, the Government may confiscate the said merchandise, paving for it at the declared value and selling it at auction. (Par. 3, art. 16, law of Dec. 31, 1005.) The shipper must make the following declaration on the invoice in Spanish: Declaro (declaramos) ser verdadero el valor mencionado en esta factura. I declare (we declare) that the value named in this invoice is the actual one. If there is no customhouse at the place to which the goods are consigned, the consular invoice must designate the customhouse destination. Thus, goods destined for Cocnabamba pass through the customhouse at Oruro, those for Tarija through Villazon, and those for Potosi through either Oruro or Uyuni, depending on the 216 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. port of transshipment. Bolivia is divided into the following customs districts: Northern La Paz. < Sentral Oruro. Southwestern I'yuni. Southern Villazon (La Quiaca). Southeastern Yacuiba. 1 iastern E*uerto Suaxez. Northeastern Villa Bella, Cobija, and Manoa CAhuna). In addition to these and subordinate to their authority an- a num- ber of "resguardos de aduana" located at minor points, where there is a certain amount of traffic across the frontier. There are Bolivian consulates in the United States at New York, Baltimore, Boston, Chicago, Kansas City (Mo.). Mobile, Xew Orleans, Norfolk (Va.), Philadelphia, San Diego, San Francisco, and Seattle Communications with any of these offices should be addressed to the "Consulate of Bolivia." Consular fees are levied according to the following scale: Certification of set of consular invoices: Less than $200 in value $3. $200 or more in value 2 per cent. Extra copies of consular invoices $1. Certification of bills of lading No charge. Consular invoice blanks (must be purchased at consulate): Set of four 9d. or equivalent. No charge is made for the fifth copy. If an error in a consular invoice is discovered by the shipper, a letter .of correction, written in Spanish, may be handed to the consul, who will certify one for each copy of the invoice, at a charge of 50 cents each. These letters of correction must reach the Bolivian customs authorities before the goods can be released to the con- signee. During May, 1920, an official decree provided that the charge of 2 per cent of the value of the goods for tin 4 certification of the Boliv- ian consular invoice should be bused upon the manufacturer's value or bill of sale. The method as established by the original law was that the charges for certification of consular invoices were to be based upon the value of the goods plus the freight charges to the Bolivian customhouse of entry. The change resulted from a protest made by some British commercial interests on the ground that it was impracticable ;it the time of having the invoice certified to ascertain the exact amount of freight charges on goods to the Bolivian customhouse of entry. The new method of computing these charges proves Simpler and more equitable and also reduces the amount \ the Banco de la Nacion in La Paz between August 1 and November 23, 1918: Bolivianos. London 4, 642, 486 X.w York 1,024,652 Argentina 1, 400, 562 Chile 553,779 Peru 358,471 Bolivianos. Paris 169, 593 Spain 120,809 Italv 104,693 8,375,044 Since 1918 there has been a considerable increase in the financing of buying operations through New York. DELIVERIES AND COLLECTIONS. The common procedure in making collections in Bolivia, as generally throughout South America, is as follows: The exporter draws to the order of his banker, and against the buyer, a draft to cover the value of the merchandise, and in addition all charges, such as freight, insurance, consular fees, interest, and banking charges, which have been paid by the shipper. This draft, drawn at the time the merchandise is shipped, is forwarded to the banker, together with the documents, including the commercial invoice, the consular invoice, the bill of lading, and insurance certificate. When the drawee accepts the draft the banker delivers the documents to him. Upon liquidation or payment, the banker remits to the shipper his check on New York for the value of the draft less the collection charges. Should the shipper desire to receive the remittance at once, and without awaiting the maturity of the draft at 90 days' sight or 150 days' date, Bolivian banks will usually discount such bills immediately upon their receipt, provided both drawer and drawee are known to them as reputable concerns. In this case the collecting bank will remit the full value of the draft, less discount and collection charges, which should have been included in the invoice and covered by the ih aft. The charge usually made for discounting foreign bills on Bolivian buyers is \ per cent commission and 6 per cent discount. Remittances are made at the bank rate of exchange of the day plus cable charges. For collections in La Paz the commission charge is \ per cent for clean or documentary drafts of a value Less t han $1,000, and \ percent for larger items, with a minimum charge of $0.50. In addition there is a charge of 1.50 Bolivianos for postage, etc. The rate for collections in the smaller cities of Bolivia varies according to their remoteness from La Paz, being 2 per cent in Santa Cruz and reaching even 5 per cent in RiUeralta. All drafts for collection should include these charges in their face value. The banks do not usually make any extra charges of any kind. The collection charges are the same for clean and for docu- mentary items, whether for Bight or for long usance. In forwarding items instructions Bhould he given as to whether or not they should be protested, as the law provides a time limit within which protesl mil-! he filed and there might be no time for seeking instructions. The bank may protest an uncollected draft, either for non-acceptance TRADE. 219 or nonpayment, without previous instructions from the drawer to that effect. The usual charge for protest is about 11 bolivianos for each item in La Paz, but the rate varies in other cities. If has also been common for banks handling collections for European shippers to assume the responsibility in the matter of granting renewals. These extensions of time on drafts are of course only grante'd where, in the bank's judgment, the circumstances of the case fully warrant such a concession. If the item is paid after protest, the drawee pays the protest charge. As regards protest of items, the drawee has 24 hours of grace — that is, until 3 p. m. of the following day, the closing hour of the banks. It is at least theoretically impossible to obtain a consignment of goods before the arrival of the related documents — that is, the com- mercial and consular invoices, However, in practice this require- ment is sometimes waived, as in cases where the bank agrees to guarantee the submission of the documents and the payment of the import duties and charges. Goods thus imported without a corres- ponding consular invoice are fined to the extent of 4 per cent of their value. A copy of the manifest covering the goods disembarked at the coast must be submitted with the other documents. This is forwarded to the customhouse of entry in Bolivia by the Bolivian "agente aduanero" or customs representative at the port where the mer- chandise is landed. The clearance of goods through the Bolivian customs is handled by regularly licensed "agentes de aduana" or customs agents, who must be entrusted with all the necessary clearance papers before they can effect the release of merchandise. These agents are em- ployed by the consignee. Among customs agents in Bolivian cities are the following : LA PAZ. W. R. Grace & Co. V. Jauregui & Cia. Tomas Bradley. Cazorla Hermanos. Federico Bernales. W. R. Grace & Co. (Compafiia Despachadora de Aduana). V. Jauregui & Cia. Oscar M. Barrios. R. Valenzuela & Cia. Dauelsberg & Cia. Jorge Larrieu. UYUNI. Oscar M. Barrios. Dauelsberg & Cia. Goods must be entered at the customhouse within 48 hours after arrival. The fine imposed for failure to make such entry within the required time limit is 0.05 boliviano per day for each 23 kilos or fraction thereof. The monthly charge is 30 bolivianos. In case of inflammable goods, this charge is doubled. This fine is paid by the consignee. Goods may be left in the Government warehouses for 30 days, at the end of which time they are auctioned for the pay- ment of the import duties and accumulated warehousage. How- 220 BOLIVIA! A COMMERCIAL AND INDUSTRIAL HANDBOOK. ever, it is possible to extend this period to a year by petitioning the customs authorities. The Government storage charges are 0.15 boliviano per 100 kilos, payable at time of removal of goods. In case of necessity the local \>anks arrange for the storing of good-. if requested to do so by the seller. The insurance premium on ordi- nary goods in storage is 1 per cent, as against f per cent in inflam- mable goods. It is usual for the consignee to pay these storage and insurance charges, unless the bank is otherwise instructed. The local banks in Bolivia do not accept the consignment of goods. Eowever, parcels may be sent to a bank for delivery to consignee against payment or acceptance of draft. IMPORT TARIFF. The new Bolivian import schedules, which went into effect on May 1, 1920, are contained in the publication entitled "Arancel Aduanero de Importaciones. ' ' This book can be obtained for the sum of 10 bolivianos from any of the leading book stores in La Paz, such as those of Gonzalez & Medina and Arno Hermanos. An additional boliviano should be inclosed to cover mailing charges. Copies are also available for consultation in the files of the Bureau of Foreign and Domestic Commerce at Washington. The most radical change made by the new tariff law is the substitution of a specific for an ad valorem basis in nearly all classes. The number of classes was also reduced by about 50 per cent. However, customs procedure has changed little from that described in Tariff Series No. 34, "Tariff Systems of South American Countries," published by the Bureau of Foreign and Domestic Commerce. STATISTICS OF FOREIGN TRADE. The official statistics of the foreign trade of Bolivia are found in the publication entitled "Comercio Especial de Bolivia," which is prepared by the Section of Commercial Statistics of the General Bureau of Customs. However, this annual does not usually appear until at least 10 or 11 months after the end of the year which it covers, and at the time this handbook was completed — February, 1921 — the latest detailed figures available were for 1918, save in the case of some larger totals. The publication referred to can be obtained from either of the more important La Paz book stores at a cost of 10 bolivianos, in addition to which about 2 bolivianos should he sent to cover carriage of the bulky volume. Copies are also held for reference' in the Bureau of Foreign and Domestic Commerce at Washington. Values in the official statistics are only approximations to accuracy, since they represent the figures on which import duties are assessed and Dot the commercial values. However, as a basis for calculating the total foreign trade of Bolivia they are much more dependable than the statistics of foreign countries, which do not take into account the fact that much of the merchandise sent to Mollendo, Ariea, and Antofagasta, presumably for consumption in Peru and Chile, is in fact destined lor Bolivia, and that a large pari of the exports from these ports consist of goods in transit from Bolivia. In the Bolivian TRADE. 221 statistics themselves it is impossible to distinguish in all cases be- tween strictly transit and reexport shipments through the neigh- boring countries. Thus a large amount of American lumber pur- chased by an Antofagasta house and later shipped into Bolivia is credited to Chile in the Bolivian statistics, whereas its true source of origin was the United States. TOTAL FOREIGN TRADE FOR PERIOD 1909-1919. The value of the total imports and exports of Bolivia by years for the period 1909-1919 was as follows: Years. Imports. Exports. Total. 1909 Bolivianos. 36, 939, 940 48, 802, 394 58,371,409 49, 508, 9S9 54, 762, 833 39, 761, 222 22, 574, 566 31, 098, 215 33, 480, 831 34, 999, 886 61, 997, 024 Bolivianos. 63, 764, 466 75, 622, 146 82, 631, 171 90, 122, 987 93, 721, 513 65, 801, 146 95, 210, 350 101, 4*4, 800 157, 748, 054 182, 612, 850 144, 251, 527 Bolivianos. 100,701, 107 124 424 541 1910 1911 1912 139, 631, 977 148, 484, 347 1913 1914 1915 117, 7S4, 917 132, 5S3, 015 1916 1917 1918 217, 612, 737 206, 24N, 552 1919 EXPORTS BY CLASSES OF GOODS. Total exports from Bolivia by different classes during the years 1913-1917 were as follows: Classes. 1914 Live animals Foodstuffs Hides Coca leaves Quinine bark Rubber Lumber Copper ores Lead ores Zinc ores Tin ores Bismuth Wolframite Antimony Wools Manufactured articles Silver ores Coined gold Coined silver All other articles Total Bolivianos. 117, 310 27, 759 359, 790 682, 192 41, 1S3 14, 651, 647 3,700 3, 286, 714 353, 059 233, 150 67, 784, 377 2, 092, 924 415, 417 12, 410 32, 689 261, 199 2, 784, 354 153, 750 212, 431 215, 458 Bolivianos. 238, 869 75,034 286, 665 651, 423 26, 538 8, 280, 370 4, 442, 735 155, 457 140, 623 42, 479, 837 2, 802, 278 428, 300 30, 616 100,223 2S6, 604 2, 531, 328 2, 478, 662 20,807 344, 777 Bolivianos. 792, 860 140, 800 470, 852 731, 902 78, 561 10, 768, 937 12, 501 14, 035, 310 353, 239 18, 559 44, 885, 450 3, 670, 452 1, 497, 845 13, 442, 286 214, 166 295, 842 2, 982, 858 57, 331 397, 754 362, S45 Bolivianos. 1, 811, 492 94, 730 620, 166 623, 880 158, 488 13, 292, 264 25, 625 S, s.-,4, ,Y_>| 460, 949 236, 609 42, 652, 258 3, 154, 905 5, 675, 700 16, 996, 503 300, 212 1,661,773 4, 493, 610 23,500 94, 022 253, 590 Bolivianos. 1, 751, 983 71,084 716, 763 cs\Ml 196, 742 15, 424, 202 17,600 11, 921, 144 1, 514, 914 530, 780 85, 25S, 482 4,116,677 10, 810, 291 17, 017, 907 409, 387 1, 169, 257 5, 69.3, 639 1,250 32X, 273 108, 838 93, 721, 513 65, S01, 146 95, 210, 350 101,484, von 157, 74S, 054 222 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Classified in greater detail, the exports from Bolivia in 1918, including reexported goods, amounted to the following figures (the products arc shown in the order of their value): Art ides. Bolivianos. Percent- age of total value. Tin concentrate- Wolfram Rubber, One Copper ores Antimony Silver sulphides Silver ores Bismuth l>ars Coppi n Rubber, ordinary Tin bars bead ores Live animals Sheep wool Silver cement Coca leaves Bismuth concentrates Salted hides Copper sulphides Bismuth ores Alpaca wool Bismuth residues Iron manufactures Silver coin Llama wool Bails Quinine bark Copper cement Copper matte Manufactured furs Automobiles and accessories . Eggs. Household utensils Chuno Cotton thread Other manufactured goods. Mining machinerv Wire. Glassware Antimon v bars Coffee Firewood Sacks for metals Bank notes Locomot i ves 1 fried fruits bead bars Jewelry Corn (lour "Muk/' Machinery and parts, not elsewhere sj ,'iiits Chemicals Fresh vegetables Other mineral oils Drj goods u heal Bour iron tubing Other materials Metallic silver Potatoes Matien ■ Nickel ores I-ard Art obji Bole le ither. . , All other articles \i 48,052 3,418 2,860 6,822 120 12,037 248 3,935 1,427 74S 4,589 6,875 725 156 355 7") 7.36 1,900 111 191 53 1,481 4 146 1,226 190 134 133 2 15 42 11 29 3 42 128 5 3 13 13 712 21 31 24 17 16 15 26 3 39 12 I 1 6 4 1 II 4 9 I 2, 159, 10,591 8, 272 1,155 1,111 3,353 3,196 3,144 2, 765 2,660 1,79."> 1,556 1,139 - 771 616 510 429 415 311 258 225 208 198 174 168 104 100 57 40 37 28 19 17 17 16 15 14 13 11 11 10 10 10 8 7 7 616 129 :,7s 799 100 517 1 to 371 327 164 522 029 102 941 56 1 Mil 86 1 913 22i i 975 list; 126 :;22 513 630 919 682 600 531 160 .-,.-, s t',1-,11 124 902 vi.-, 133 150 nil 922 :,I7 000 :,M 000 000 349 o 6 040 415 -.72 977 685 U7.-, 020 000 000 904 822 ■ 745 000 52] 120,710,663 182,612,850 UK). 00 TRADE. 223 The proportion between the different classes of Bolivian exports during 1919 was as follows: Classes. Quantity. Kilo? Percenl - age. Value. Bolivianos. Percent- age. Mineral products Vegetable products. . . . Animal products Reexported goods National manufactures 99,078,272 7,675,348 10,935,604 1,353,080 48,914 83.25 6.44 9.18 1.09 .04 126,632,675 12,144,485 4,874,499 417,681 182,187 87.88 8.39 3.35 .27 .11 According to a more detailed classification the exports of 1919 were as follows: Articles. Live animals Foodstuffs Coffee Hides , Ostrich feathers Coca leaves Quinine bark Lumber Rubber Copper ores and concen trates Lead Zinc Tin bars Kilos. 9,305,465 154,995 205,427 913, 096 1 413, 050 193,981 1,410,119 5,347,323 22,970,243 4,769,281 1,901,521 287, 896 Bolivianos. 1,863,601 78,253 232,868 656,731 10 984,479 174,318 29,609 10,691,096 5,316,671 1, 820, 130 478, 362 652,993 Articles. Tin concentrates Bismuth Wolfram Antimony Alpaca wool Sheep wool Llama wool Other raw materials . . Manufactured articles. Silver ores Silver coin Total Kilos. 48,211,287 374,076 1,994,769 237,979 101,779 425, 854 126, 872 194, 396 1,401,993 18, 145, 857 3,958 119,091,218 Bolivianos. 99,271,450 3,181,642 3,246,501 132, 226 517,253 1,362,735 405,990 36, 793 599, 767 12,349,384 168, 665 144,251,527 EXPORTS BY DEPARTMENTS. Exports by departments in 1918 were as follows: Quantity. Value. Departments. Kilos. Percent- age. Bolivianos. Percent- age. 62,777,029 14,966,168 30, 137, 139 3,921,461 752, 362 3,926,370 846, 868 1,933,283 1,449,983 52.01 12.40 24.97 3.25 .62 3.25 .70 1.60 1.20 117,259,599 31,820,420 18,831,685 9, 863, 531 1,739,774 1,203,431 826,247 686, 503 381, 660 64 22 17.43 10 31 5 40 .95 Santa Cruz .66 Beni .45 37 Chuquisaca .21 Total 120,710,663 100. 00 182,612,850 100 00 224 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. EXPOR1 B1 < Ol MlilKS OF DESTINATION. The proportion of Bolivian exports by countries of destination during the period 1913-1919 was as follow-: Countries "f destina- 1913 1914 1915 i"\<; tion. Volume. Value. Volume. Value. Value. Volume. Value. :.'' 28 15. 95 2.71 1.57 1 . 27 .29 .27 2 .14 I'lT Cl 111. 8.47 4.88 .98 .64 3.38 .60 .02 .04 .14 I'i r a nl. 9. 73 3.02 .79 5.31 .01 .117 .01 Pit cent. 78.93 4.04 1.35 1.88 2.87 3. 72 .HI 1.54 .05 1.02 3.10 1.16 Pit ci nl. i 7 .86 1.52 .7s l'i t ci nl. 62.90 Pi r ant. 65.05 1.07 6.00 4.74 1.08 2.40 Chile 2.26 United States .: l .85 .22 .22 26.28 .17 .08 ! 23.90 1.10 .21 .08 28.47 .20 Other countries .29 tation. 1917 1918 1919 Volume. Value. Volume. Value. Volume. Value. Pi r a at. 50. 88 4.35 5. 16 1. 15 .is .07 Pir cent. 57. 26 2.72 1.54 1 . 93 36.07 .12 .21 .15 Pit cult. 35.03 .91 5. 46 41.13 1.13 1.09 .20 Per a ni. 41.61 .16 5.24 1.51 49.85 1 . 22 .28 .13 Pit cent. 31.35 1.19 7. 12 12.97 44.77 1.46 .12 .38 Pit ci nt. 1.74 2.00 Chile 5.12 41.34 .10 .18 .24 Exports to the United States by classes in 1918, according to Bolivian figures, were as follows: Hides and skins: Cow i Slue]) Alpaca Deer 55 38,645,609 N7,n,o,ns'.i 478 53,367, no Kilns. 1,872,351 3, 130 150,335,730 115,981,033 IMPORTS BY DEPARTMENTS. The destination of these imports by Departments of the Republic was as follows: Departments. 1918 h'il< is. 18,237,283 50,71 1 909,661 1,279,041 2,014, 188 Kilns. 40,924,782 37,583,283 30,197,032 2, 174,835 1 , 563, 737 1, 181,292 Departments. Tarija Chuqui Santa Cruz. . . . Total.. 1918 Kilns. 682,365 101 . .Vis 630,202 150,335,730 Kilns. 1,014,682 587,981 115,981,033 Of the total \olumr of import- in L919, 32.3!) per cent was con- sumed in the Department of Potosi; 32. K) per cent in that of La Paz; 26.03 per cent in Oruro; and only 6.28 per cent in the rest of the country. However, the relative value of the import- l>\ Depart- TRADE. 227 ments was 45 per cent for La Paz, 22 per cent for Potosi, 21 per cent for Oruro, and 12 per cent for the remainder of the country. Imports by classes into each Department during 191S were as follows : Departments and classes. Kilo/?. Bolivianos. Departments and classes. Kilos. Bolivianos. Department of La Paz: Live stock (4,686 head) Foodstuffs and liquors Raw materials, etc. . . Manufactured goods.. 433, 720 20, 524, 433 22, 789, 969 6, 963, 231 482 161,992 4,561,468 1, 855, 156 6,110,753 750, 1S5 Department of El Beni — Continued . Manufactured goods.. Total 389, 574 411, 570 1,279,041 682,733 Department of Cocha- bamba: Live stock (373 head). Foodstuffs and liquors Raw materials, etc. . . Manufactured goods.. Total Gold and silver coin. . 36, 190 298,310 73,070 502,091 Total 50, 711, 835 13, 439, 554 27, 850 Department of Potosi: Live stock (28, 506 3, .533, 925 6,563,018 33.197,512 4,942,828 1, .539, 803 1,440,600 2,680,837 4,081,994 91,108 27, 727 545,472 Foodstuffs and liquocs 909,661 692. 157 Raw materials, etc. . . Department of Tarija: Live stock (662 head) . Foods tuff sand liquors Raw materials, etc... Manufactured goods.. Total Manufactured goods.. 63,650 401,918 13,645 203, 152 Total 48,237,283 9, 743, 234 28, 570 97, 897 Department, of Oruro: Livestock (32 head).. 9,600 8,634,374 31,387,470 :,, 137,843 9,552 2,068,107 2,411,218 4, 000, 235 2,102 346,403 Foodstuffs and liquors 682,365 474,972 Department of Santa Cruz: Livestock (1,373 head) Foodstuffs and liquors Raw materials, etc. . . Manufactured goods.. Total Manufactured goods.. 276,800 183,899 12,647 156, 852 Total 45,469,287 8,489,112 153, 000 Territorio Nacional de 1,392,312 394, 057 228,119 433,004 24, 293 290,649 2,221 226, 850 Foodstuffs and liquors 630, 198 428, 577 Raw materials, etc. . . Department of Chuqui- saca: Live stock (729 head) . Foodstuffs and liquors Raw materials, etc... Manufactured goods.. Total Manufactured goods.. 136,990 96, 806 31,318 136,454 Total 2,014,488 747,946 46,725 36,445 Department of El Beni: Live stock (695 head). 147,780 550, 537 191, 150 73, 140 182,228 15, 795 3,278 215,150 Foodstuffs and liquors Raw materials, etc... 401,568 301,598 IMPORTS BY CUSTOMHOUSES. The imports by the different customhouses during 1919 were as follows : Customhouses. Uyuni. . .. Oruro La Paz — Corocoro . . Villazon . . . Villa Bella Yacuiba . . Kilos. 38, 552, 243 30, 430, 503 26, 5S4, 586 9, 563, 482 6, 833, 133 1, 517, 237 1, 004, 653 Percent- 33.24 26.25 22.91 8.24 5.90 1.31 .87 Customhouses. Abuna Cobija Puerto Suarez Tarija Total... Kilos. 612, 760 568, 531 275, 169 38, 736 115,9S1,033 Percent- age. 0.53 .48 .24 .03 228 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. IMPORTS BY COUNTRIES OF ORIGIN. Total imports into Bolivia according to countries for the period 1914-1918 were as follows: Countries. I'll I United States. Chile Great Britain. Peru fkilos \ bolivianos.. /kilos •■(bolivianos.. ! kilos bolivianos. . kilos bolivianos.. (kilos Argentina [bolivianos.. „ (kilos Germany \bolivianos. . „ . . (kilos Belgium (bolivianos.. _. ., /kilos ara7U \bolivianos. . „ (kilos Framc (bolivianos.. T . . /kilos ltalv \bolivianos. . „ . /kilos ^I ,LU " \bolivianos. . (kilos (bolivianos.. Netherlands fflvianos! '. T ,. /kilos Imua \bolivianos. . Sweden {bolivianos! '. Portugal {boUvianos" TT (kilos L ™guay \bolivianos. . -r. , (kilos Denmark jbolivianos. . T (kilos Ja P an \bolivianos.. Other count rirs {bolivianos! '. „ . , /kilos '"' ;U \ bolivianos. China. 34, 223, 923 L 636, 751 .v.', 102,738 5, ivy, 293 9, 583, 750 7,808,760 12, 490, 454 2, 855, 578 9,110,961 2,579,838 24,833,387 10, 625, 300 8,211,456 2, 306, 322 2,945, W 790, 616 948, 925 1,058,343 1,02:., 171 763, 274 507, 186 528, 120 943,909 133,618 39 190 100, 952 14, 133 Sl,5N5 05, 6*6 136, 855 41,238 3, 121', 1,713 53,442 8, IV.) 116,217 52, 94S 157, 725, 873 39, 758, 210 1915 23, 1 17, H»7 4, 766, 291 25,201,973 3, 373, 235 10, 072, 022 3,634, 187 13,591,971 4,271,012 5, 137, 751 1, 175,869 1, 625, 097 1, 075, 772 2, 491, 437 924, 345 2, 567, 177 831,880 349, 687 124, 595 682,013 614,944 302, 326 21;,, 807 1,007,391 140,925 708,536 533, 738 1, l.-.s, 623 168,555 12, 936 3,(117 8,057 8,512 38, 1'.':: 10, 81 1 59,244 is, 109 15 748 42, 344 21,271 88, 204, 500 22, 574, 556 1916 41,322,931 9, 394, 797 54, 046, 193 6,380,646 9, 70s, |.-,n 4,146,226 1 1, 276, 381 1,275, his 8, .542, 192 2, 113,933 42, 334 38,022 4, 550, 384 1, 6(52, 20S 2, 807, 374 960, i::o 349,524 631,866 404, 670 462,009 B6, 183 444, 366 ■•mm, 399 125, 991 125,511 59, 757 sir., 159 129, 119 SS,067 23, 1 1 1 22, 036 27,612 7 s. 675 28,999 283,067 86, 172 1,177 4,117 123,834 9*, 739 138,953,841 31,097,931 36,6l!l. 161 11, 167, 398 67, 16s, 856 7 885,206 12,020,520 4,061,336 16,, 733, sr,s 4, 469, 962 6, 008, 944 2, 157,395 35.708 15,30.-, 858,046 96, 435 3, 355, 367 1, 170,834 158, -'si 734,357 228, 982 122, 583 531,847 613,949 2, 1st, 839 312, 267 34, 737 15, 193 202, s76 105,911 52, 105 59, 329 54, 052 128,919 49, 092 212, 048 2:,, 99 1 12,300 27,519 276, 388 115,997 117,267,227 33, lso, sl7 1 1, 510, 311 11,311,209 66,937,532 S.I ISO, 6,71) 12, 002, 364 1,1 1 1, '.171 12,788,705 4,36s, . -,H s, 172,7X6 3, 799, 7(i5 58. I is 53,109 2,826,445 1, 029, 222 454,106 676, 106 158,401 355,956 135, 498 621,528 929,403 130,116 3,700 3,100 C'.lsjist lis, 062 is2, 126 112, ls7 16, 492 20, II.-, 53,788 12, 790 13,499 6,567 48,564 75,189 45. 1 1 1 50,092 150,335,726 34,999,875 The proportion of imports by countries of origin during the two years 1913 and 1918 was as follows: Countries. Bolivianos. United States Chile Greal Britain Peru -" Brazil Prance Se^^:::::::::::::::::::::""::::::""»»»""--- countries 6,671,849 4,014,103 5,559, W2 11. 101,268 3,025,757 994,883 2,058, 112 1,303. 199 Percent- 7 38 10. 15 20 27 5. 53 1 82 3.76 2. 37 36.50 12 22 Bolivianos. 1,311,209 8, 089, 679 I, II I. 'i71 1,029,222 676,, 106 355,956 .-,3, 10'. I 1,970,828 Percent- age. 32.31 23.11 U.s--. 12. IS 2. 9 1 1.93 1.01 .02 14.35 TRADE. 229 Imports from the United States in 1913* were classified as follows: Articles. Bolivianos. Articles. Bolivianos. Articles. Bolivianos. FOODSTUFFS. 85,494 1,237,480 276,954 MANUFACTURED ARTI- CLES. 71,446 88,059 409,0.53 236,634 60,952 201,644 68,506 2,856 63,915 37, 593 23,292 10,384 MANUFACTURED ARTI- CLES — continued. Agricultural imple- Flour 33,977 Cotton fabrics Printed articles Iron sheets and bars . Other iron manufac- Total 1,599,928 1,855 Guns and ammuni- 226,705 54,238 10,086 29, 033 40, 609 65,767 Other articles Total 706,635 Mining machinery. . . 2,083,504 Coal Sewing machines Other machines Tools for laborers Grand total 4, 044, 103 Other Total 360,671 The principal imports from the United States in 1918 were as follows : Articles. Kilos. Bolivianos. Articles. Kilos. Bolivianos. 763,800 10,686,552 1,488,726 202,486 427,580 245, 519 1,272,381 10,707,805 1,768,797 193,918 1,485,143 1,116,890 1,068,655 706,825 464, 119 427, 580 302,415 326,005 308, 793 283, 007 280, 562 207,920 643, 497 2, 317, 367 1,212,169 886, 762 72, 288 304, 159 183,620 105, 689 46,416 9,495,667 193 049 185 389 Mining machinery Automobiles and acces- 179, 571 176, 462 Shellfish and canned fish . . 169 169 Un bleached cottons ("to- 156, 495 154 366 Cottons i n general Stearin and paraffin Wire 142, 429 117 155 4, 344, 353 Flour Total. 44,510,341 11 311 209 The principal imports from the United States during 1919 con- sisted of the following goods : Articles. Bolivianos. Mining machinerv 2,167,254 Unbleached cottons ("tocuyos") 1,392,993 Other cotton textiles 1,603,613 Sacks for ores 830 199 The total value of imports from the United States in 1919 was more than 23,500,000 bolivianos, or more than double that for 1918. The principal imports from other countries during 1919 were as follows : Countries and articles. Bolivianos. Countries and articles. Bolivianos. Great Britain: Cotton textiles 1,973,000 1,162,588 1,626,706 549, 547 4,371,958 1,215,326 Peru: 4 032 813 Unbleached cottons ("tocuyos").. Sacks for ores „ 391 509 Coal Argentina: Flour Chile: 399, 759 Flour 178, 641 1,828,271 Coal 230 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. PRINCIPAL LINES OF GOODS IMPORTED. HARDWARE. In any consideration of this market it must be borne in mind that Bolivia is essentially a mining country, and that all other industries are in a comparatively Low state of development. There are few manufactures, and these operate on a small scale. Agriculture is carried on in a quite primitive fashion and with the fewest tools possible. The mechanical trades, such as carpentry, require, as now conducted, a minimum of equipment. There is a fair demand For miners' tools of all kinds, and the railways use a large amount of hardware of all sorts. While American goods have gained a very strong position in the Bolivian hardware market since the begin- ning of the war, much of the distribution is in the hands of Germans. One large German house has branches in nearly all the important cities of the plateau. Imports of some classes of hardware during 1918 were as follows: Classes. Total. Bolivi- anos. Carpenters' tools 155, 40>5 Minors' tools 30, 988 Agricultural implements 22, 313 Farming tools ' 42, 034 Wire 193, 546 From United States. Bolivi- anos. ©,503 11,948 8,776 16, 761 142, 429 Classes. Locks Copper and brass goods Enameled ironware Firearms Ammunition Total. Bolivi- anos. 60,590 37,290 36,237 From States. Buliii anos. 48, 817 8. I-'-' 36,504 In 1916 the Bureau of Foreign and Domestic Commerce published a monograph entitled ''Markets for American Hardware in Chile and Bolivia, Miscellaneous Series No. 41, the price being 25 cents. 1 CONSTRUCTION MATERIALS. The Bolivian market for construction materials is covered in detail in Special Agents Series No. 188, by W. W. Ewing, entitled "Construction Materials amd Machinery in Argentina and Bolivia," price 20 cents. Increasing quantities of imported cement are being used in construction work, even in reinforced concrete work in La Paz. Nearly all the lime used is produced locally. Rough bricks are made in' all parts of the country, but there is a limited demand for fire brick. Most of the lumber used comes from our Pacific States (largely redwood and Oregon pine), though Chilean lumber is being imported in increasing quantities. Considerable amounts of "calamina," or galvanized sheets, are used for rooting, as well as for warehouse and temporary construction. Red tiles, which are used widely for roofing, are produced locally. Most of the builders' hardware is imported from the United States. With the completion of the projected sanitary works in most of the important plateau cities, then- should be a good market for plumbing and bath-room supplies. Good lines of these are now carried in La Paz, in spite oi the limited use. i The publications mentioned In this and the bucc ling Bections may be obtained tram the r [rom the Superintendent of Documents, Government Printing Office, Wa hington, D. C. TRADE. 231 Among different classes of construction materials imported in 1918 wore the following: Articles. Total. From United States. Metric tons. Bolivianos. Metric tons. Bolivianos. 5, 030 13.485 563 179 120 251, 504 396, 395 16, 917 22, 405 31, 022 1,910 10,707 329 0) 98 95,529 Lumber: 308, 793 9,870 (') 25, 387 i Mostly reexports from Chile. MINING MACHINERY. Mining machinery forms one of the most important lines of trade in Bolivia. The tendency to modernize the mining plants of the country and the general expansion of the industry have created a strong demand for mining equipment, which must continue for some time to come. Several modern "ingenios" or concentration plants have been installed during the past few years or are now in course of installation. In addition to equipment for concentrating and reduc- tion plants, there is a demand for ore cars and tracks, " andariveles " or cableways, belt conveyors, pumps for draining mines, drills, Diesel engines, machine-shop equipment, etc. A large part of the mining machinery now in use is of American manufacture, and the trade is well covered by the La Paz and Oruro representatives of the leading American houses in these lines. Increased investments of American capital in Bolivian mines, now under w T ay and in prospect, should greatly strengthen the position of the United States in this market. The British mine companies are disposed to buy in England, and German houses were trying to reenter the field before the end of 1920. This market is described in Special Agents Series No. 118, by J. S. Massel, entitled "Markets for Machine Tools in Peru, Bolivia, and Chile," price 10 cents. However, this report was prepared in 1915, since which time there have been very important developments in this field. Imports of mining machinery proper for the years 1914-1918 were as follows: 1914, 412,727 bolivianos; 1915, 212,680 bolivianos; 1916, 366,974 bolivianos; 1917, 1,040,819 bolivianos; 1918, 1,033,260 bo- livianos. The value of imports from the United States in 1918 amounted to 706,825 bolivianos and those from Chile to 129,884 bo- livianos, the latter consisting of reexported merchandise. ELECTRICAL GOODS. Persons especially interested in the market for electrical goods should consult Special Agents Series No. 167, prepared by Philip S. Smith and entitled "Markets for Electrical Goods in Bolivia and Chile," price 20 cents. There are electric power plants in all the leading cities of the Bolivian plateau, furnishing current for light and power purposes. The only cities with tramway service are La Paz and Cochabamba. La Paz, Cochabamba, Oruro, Potosi, and Sucre 232 BOLIVIA: A COMMERCIAL AXD INDUSTRIAL HANDBOOK. are equipped with telephone systems. More information regarding tlic power companies in these cities will be found in other parts of this handbook. in some [daces, as in La Paz, the power company also sells electrical goods, such as lamps and heaters. There is a Large field in Bolivia lor the extension of the use of electrical heating appliances. The Large mining eamps, such, as Uneia, Llallagua, Corocoro, and Pulacayo have their own power installations. Then- are great possibilities for the further development of the hydroelectric industry in Bolivia, and an elaborate survey has been made by an American company with a view to the utilization of the large supply of water power on the eastern slopes of the Bolivian Andes. The section of the Guaqui-La Paz Railway from the "alto'' above La Paz down into the city has been electrified, studies have been made for the same purpose by the Yungas Railway, and the electrification of most of the railway system of the country has been seriously dis- cussed. Though the United States now holds first place in the market for electrical goods, German houses are strongly represented in this field. The total value of goods imported in 1918 for lighting and power purposes was 294,708 bolivianos. Of this, 117,155 bolivianos repre- sented direct importations of American goods, 65,142 bolivianos of reexported goods is credited to Chile, and imports from France and Great Britain amounted to 36,057 and 34,982 bolivianos, respectively. Imports of telegraph equipment amounted to 92,594 bolivianos — 53,863 bolivianos of this coming from the United States. MOTOR VEHICLES. The market for motor vehicles is covered in Commerce Reports for June 26, 1920, under the title of "Bolivia and Ecuador as Auto- mobile Markets." FOODSTUFFS AND GROCERIES. The prevailing low standard of living and small buying capacity of the average Bolivian is the most important factor in deciding the value of this market. Only a small minority are able to buy foreign prepared foodstuffs, though the consumption of such bulky com- modities as rice, flour, and sugar is very considerable. Ho ever, an increasing tendency is evident among the "cholo" class to buy imported foods, such as canned goods. The Indians Live on the products of their own harvests. The plateau region is not self- sufficient, and large quantities of such staples as rice. Hour, and sugar are imported. For example, foreign flour in large (plant it ies is brought into Cochabamba, the center of an important cereal- growing region. The vast agricultural region of eastern Bolivia is too far from the plateau market to supply it in any quantities. Fresh fruits are obi ainable for most of t he year, being largely brought up from the semitropical or tropical valleys on the eastern slopes of I he mountains, so the market for canned or dried fruits is small. However, American canned goods (especially canned salmon) are found for sale in nearly every village in Bolivia. There aii- at leasl two high-class groceries in La Pa/, and some good stores of the same kind in Oruro and Cochabamba. The Jugo-Slavs control the retail grocery business in Oruro and Potosi and are in- TRADE. 233 creasingly prominent in Cochabaniba, Sucre, and Uyuni. There are numerous small " pulperias" or shops in every town, where a small* stock of groceries and drinks are kept for sale, usually by women of the cholo class. Among imports of some of the staple lines of foodstuffs in 1918 were the following; ; Articles and countries of origin. Kilos. Bolivianos. Articles and countries of origin. Kilos. Bolivianos. Sugar: ' Total. 8,150,901 7,742,963 172, 770 4,397,758 1,485,143 953, 128 929, 403 442, 104 18,163,349 13,806,775 2,229,767 1,768,797 353,373 181,191 87,340 66, 063 22, 728 817, 472 643, 497 2,445,970 2,323,588 51,831 615,686 207, 920 133, 437 130,116 61,894 2,906,135 2,209,084 356, 762 283,007 106,138 54,357 26,328 33, 031 6,818 245, 241 193,049 Prepared meats * 31,374 209, 938 150, 388 190, 703 80, 500 71, 732 405, 590 33,758 12,219 8,854 127,771 86,543 16,060 52, 761 23,213 18, 836 29, 564 Canned fish and shellfish: Total 167, 950 Rice: Total . . United States Tea: Total 127,510 95, 351 Chile . . . United States 40,250 Coffee 5 . . . 72,585 Spices 6 203, 175 Flour: 2 Total Canned vegetables: Total 27,007 Chile Chile United States 9,775 7,083 Dried fruits: Total 37,742 Total Chile 19, 409 United States Canned orpreservedfruits: Total 8,703 Butter 3 87,462 United States 39,612 Chile 31,131 Total United States 1 During 1917 11,998,752 kilos of sugar were imported, and during 1919 9,103,379 kilos. 2 During 1917 imports of flour amounted to 23,756,653 kilos and during 1919 to 16,719,7.83 kilos. During 1918 322 metric tons of wheat were imported, largely from Chile. 3 Peru, Argentina, Denmark, and Brazil are the principal suppliers of butter to Bolivia, in the order named. < Mostly from Chile and Brazil. 5 Largely from Brazil. 6 More than half of these consist of the "aji" pepper of the neighboring countries. TEXTILES. The textile market is described in detail in Special Agents Series No. 158, prepared by W. A. Tucker and entitled "Textile Markets of Bolivia, Ecuador, and Peru," price 15 cents. Bolivia offers a good market for certain grades of both woolens and cottons. Be- cause of the cool climate of the plateau the whites and better- class "cholos" wear woolen clothing throughout the year. The women of the "cholo" class and some of the Indian women wear skirts (several of them being often superimposed) which are made of bright-colored baize, or "bayeta," as it is locally known. Most of this demand is met by imports from Great Britain. The Indian women weave a large number of rough woolen garments for their own use, and a considerable proportion of the "cholos" wear suits made of native weaves. Some of these brownish-gray patterns arc not unattractive, and the writer has seen suits made of this homespun cloth worn by women of the more well-to-do class in La Paz. How- ever, the production of these woolens has not been organized on an industrial scale. There is a large demand among the Indian and "cholo" classes in Bolivia for the gray and white cotton sheetings known locally as " tocuyos." At present the United States supplies the larger part 234 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. of these goods, hut Peru has entered the market and is a potential competitor of importance. The white-goods trade was largely British before L917, though the Germans held a strong position in other lines, especially in cheap llanelettes and cassinettes. There are fair imports of ginghams, percales, drills, corduroys, and tickings from the United States. The market for silks in Bolivia is very small, as their price places them out of reach of all hut a small part of the buying population. Imports oi the principal textiles in 1918 were as follow-: Articles anil countries of origin. Kilns. Bolivi- anos. Articles and countries of origin. Kilos. Bolivi- anos. Woolens: ■■ Bayeta" — Total 6.5,911', 62,294 6,015 2. 510 239,688 48, 448 40, 439 (0,289 244, 142 222, 978 10,244 686,896 427,580 142,684 173,225 163,808 19, .567 9,239 299,323 60,589 47,015 54,696 306, 111 27s, 956 13, 751 6SC,,S!IS 127,580 142,684 Cotton— Continued. Other cottons- Total 175,005 245,519 7,802 5,090 1,210 761 168, 190 116,008 20,679 233,36.5 140,529 36. 7 19 1 381 486 Great Britain 74ti 2-Vi United states.... 302 115 Wool mixed with cotton... Cotton : Suitings ("cassinettes")— With silk mixture — Total Great Britain.. . 50,470 31 L67 Total : Silks: Spain I ■ 028 Silk mixed with cotton .. . . Cassimeres: Total •_':s 7.".:! Italy B I ea en cd ("g e ne r o 103,875 bianco") — C.reit Britain 262 687 Total .">! ,082 Cloth for making women's clothing, exclusive of silk: Total . . ... i 'nbleached ("tocuyos' ') 615 506 Total 358,456 116,511 i oited States United states READY-MADE WEARING APPAREL. This market is covered with great thoroughness in Miscellaneous Series No. 69, prepared by former Commercial Attache W. A. Monta- von and entitled " : Wearing Apparel in Bolivia," price 10 cents. This field can he roughly divided into three classes of demand, depending on whether the consumer is white, "cholo," or Indian, though there is a tendency among the two lower classes to imitate the clothing of the class immediately above it. The demand among the white minority of the population is similar to thai prevailing among the same class throughout South America. This element of the people dresses well, and with a strict regard for the dictates of fashion, though in some respects the styles it follows differ from those in vogue in the United States. There is little color in the clothing of this class, whereas the §arb of the Bolivian Indians is probably the most highly colored in on f li America. The Indian market has been .almost entirely ignored by foreigners, except hy the Germans in the matter of ponchos. Tn view of the limited demand .and small spending capacity of the Indian class this field offers little to the exporter of wearing apparel of whatever kind. Though the same condition is largely true of the lower si rata of the '' cholo " masses, whose social status approximates closely to thai of the 'Indian, the higher-class cholos are constantly taking a larger amount of foreign-made wearing apparel. Mosl of the men's suits are tailor-made in local shops, and l\'\v ready-made suits are imported. Leather suits, of good quality and suitable for wear in the mining camps, are made by a La Paz firm. TRADE. 235 Some custom-made shirts are sold, but several lines of American makes of shirts and collars are carried by the haberdashery shops and have an increasingly good sale. There is little demand for light- weight underwear, and medium and heavy weight grades are worn all the year. The trade is not yet accustomed to the union suit and prefers the two-piece arrangement of underclothing. There is a good demand for overcoats, which are mostly tailored locally. Both felt and straw hats find a good sale, and it is common in La Paz to see a man wearing an overcoat and a straw hat at the same time. Italian felt hats hold a strong position, but English-made hats are sold in fair quantities. American suspenders and hose supporters have little competition, and American socks are beginning to have a good sale. There are some very good haberdasheries in La Paz and one or two attractive stores in Oruro and Cochabamba. The market for ready-made garments for women is better developed in Bolivia than in the case of men's clothing. There are few local "modistas" or dressmakers able to compete with the foreign-made products. A good class of women's clothing is being ordered in increas- ing quantities from New York and Paris. This applies, however, only to the more well-to-do class of white women, and to a lesser extent to the '' cholas," who have begun to buy even fancy imported lingerie. Here, as in many other fields, the cholo trade is decidedly worthy of cultivation by foreign exporters. Good stocks of women's wearing apparel are kept in several La Paz stores, and lower-grade garments are sold in large quantities by the numerous shops on Calle Diez de Medina, as well as in other cities of the plateau. American hosiery, corsets, underwear, lingerie, shirt waists, and suits are well represented, in spite of the strong British and French competition in this market. Some of the most important imports of wearing apparel in 1918 were as follows : Articles and countries of origin. Men's felt hats: Total Italy Great Britain Argentina France United States Straw hats of all kinds: Total Great Britain Peru Italy Trimmed hats for women Total Argentina France United States Men's shirts: Total United States Men's outer garments: Total United States Bolivianos. 349,411 158, 167 97,315 56, 308 16, 3S1 7,558 144, 675 36, 734 76, 422 10,585 42,020 9,766 17, 756 5,540 25,648 9,630 37, 432 9,637 Articles and countries of origin. Neckties: Total Great Britain United States Miscellaneous men's furnishings. Women's dresses ("vestidos"): Total Argentina Spain France United States Knit goods: Total United States Lingerie: Total Great Britain United States Bolivianos. 29,584 9,152 7,105 398, 585 132, 766 68,098 93,221 61, 174 137, 746 56,802 280, 335 97, 914 58, 176 BOOTS AND SHOES. About half of the population of Bolivia buys no footwear at all, beyond the cheapest kind of sandals. The market for foreign-made shoes is limited to the whites, who constitute only about 15 per cent 230 BOLIVIA : A COMMERCIAL AND I XIU STK1 AL HANDBOOK. of the population, and to the foreign colonics. The majority of those QOW buy shoes made in the La Pax and ( >ruro factories of Xamora and Garcia. In fact, it is inevitable that with the further development of the native Bhoe-manufacturing industry the field for the sale of foreign footwear in Bolivia must decrease to small proportions. The cholo demand is supplied almost entirely by domestic manufac- tured shoes. The cholas, or women of this class, wear a peculiar type of shoe made only in the country. These are boots about 12 inches high, generally made of colored leathers, with double rows of large buttons, and with buckles and tassels for additional adornment. The market for footwear is covered by Special Agents Series No. 1 71 . prepared by 11. G. Brock and entitled "Market for Boots and Shoes in Chile and Bolivia," price 25 cents. Imports of shoes in 1918 Mere as follows: Articles and countries of origin. Kilos. Bolivi- anos. Articles and countries of origin. Kilos. Bolivi- anos. Fine shoes ("calzado lino" i: Total 1,843 29,575 7,996 9, 150 1 i.i. 725 67,090 10 636 4,043 1,520 1,445 Shoes made of leather and silk: Total 595 272 13,067 7,752 4,239 .". 603 United States l , 493 2 .Vi7 Patent-leather shoes: Total 16,339 Leather for use in manufacture of shoes: Tola] 62,484 31 los United Slates 7,396 Argentina i.(k;i 26,846 Gun-meial shoos ("calzado de munii'ii'n''): Total 1,210 Argentina 129 I" ni ted States i - 300 DRUGS AND CHEMICALS. The market for industrial chemicals is largely limited to the mining companies, the match factory, , and the small producers of soap. The market for prepared and proprietary medicines is small. For persons with the living facilities of the white population the climate of the plateau is not unhealthful, and the Indians, whose habits are very unhygienic, are unable to buy any imported medi- cines. However, there is a good demand on the plateau for such standard remedies as aspirin, and in the tropical plains region For sulphate of quinine. There are well-equipped drug stores in all the leading cities, one in Oruro being especially noteworthy. One of the largest general importing houses sells its own proprietary line over a wide territory, and probably the largest exclusive importer of drugs and chemicals in the country is a German. The "Asistencia Publica" or Public Health Service maintains its own dispensaries for distributing medicine to the poor. There is a large Government hospital at Miraflores in La Paz, and an American hospital is being installed in thai city. In the Governmenl statistics, imports of drugs and chemicals are not classified, such imports for L918 being given as follows: TRADE. 237 Articles and countries of origin. Kilos. Bolr\ ianos. Chemical products: Total . . : 569,355 219,017 212, 196 69,458 35, 305 361,132 SI, 1177 Chile 223,261 Prepared medicines: Total 135,874 70, 349 PAPER AND STATIONERY. This market is covered full}^ in Special Agents Series No. 143, prepared by R. S. Barrett and entitled "Paper, Paper Products, and Printing Machinery in Peru, Bolivia, and Ecuador," price 10 cents. Imports of newsprint go to supply the needs of a considerable number of small newspapers, whose circulation is generally from 1,000 to 5,000. Weekly periodicals are few' and of small size and circulation. Nearly all the book paper is taken by two La Paz publishing houses, which are also large dealers in general stationery. Most of the work done by the job printers is for the order of the railway offices, banks, government offices, mining companies, and the larger mercantile establishments. A comparatively low grade of stationery is used in the schools, and until recently the social stationery was of uniformly poor quality, but a display of high-class American goods was shown in the windows of the largest La Paz store in July, 1920. In estimating the value of the Bolivian paper market, one must take into account the high proportion of illiteracy, due to the large Indian population, and the low average buying power of the people. The market for wrapping paper is negligible, as goods are generally carried home from the store in a basket by a servant. Imports of different classes of paper, stationery, and office sup- plies in 1918 were as follows: Articles and countries of origin. Kilos. Bolivi- anos. Articles and countries of origin. Kilos. Bolivi- anos. Newsprint: Total 155, 2S0 141,203 147,300 84,621 389,639 2.56,595 46, 839 22,772 62, 745 40,682 77,634 70, 596 118,967 51,086 165,588 84,446 22,940 11,952 57,880 35, 104 Cardboard: Total 55, 556 48, 526 13,402 5,916 50,096 21,324 42,839 39, 508 16,439 10,389 3,778 10,711 United States 8,890 Office stationery: Total Manufactures of cardboard: Total 18, 813 United States Chile 8,311 Paper for other uses: Total Office supplies: Total 58, 859 41,121 Wall paper: Total Typewriters: Total 10,444 Great Britain 9,53S Manufactures of paper: Total Printing presses: Total 17,656 United States 6, 296 6,509 238 BOLIVIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. FURNITURE. This field is described in Special Agents Scries No. 170, prepared by Jl. E. Everley and entitled "Furniture Markets of Chile. Peru. Bolivia, and Ecuador," price 25 cents. The market for foreign- made furniture in Bolivia is very limited. Most of the demand is supplied by locally made furniture, which is turned out in carpenter shops, employing only a few men each and equipped with no special cabinetmalring tools. However, the workmanship is good, when the facilities at hand are considered, and the price is less than for similar foreign products. Before the war Germany held first place in exports of furniture to Bolivia, especially of chairs, but most of the liner home furniture came from France, England, and Italy. A gaudy-appearing style, known as "Vienna" furniture, had a con- siderable demand. The more well-to-do Bolivian classes, who are the only ones able to buy foreign furniture, generally demand ornate period sets for their homes. Most of the office and school furniture comes from the United States, but the market is small. Imports of furniture in 1918 were as follows: Classes and countries of origin. Kilos. Ordinary: _, ,,, Total ' '• ■ "' United States 60, 029 FilU ' ; -Jl -1Q Total 31,519 Argentina '••'•' 1 died si at es *> SO 2 "Vienna": Total "•'" Spain l"." sl Tapestried: a Total . 9.700 Italy United States ;;- iu ' Other classes -• ' ls ' Bolivianos. 30, 315 39,067 is. 155 8,094 10,410 8,064 1, SV2 I, (U0 JEWELRY. The Bolivian market for jewelry is discussed in Special Agents Series No. L86, prepared by S. W. Rosenthal and entitled "Jewelry and Silverware in Chile, Bolivia, and Peru," price 10 cents. The demand for cheap and showy jewelry is large in Bolivia among the class of "ehola" women, who are much given to display. However, only' a small percentage of the people are able to buy high-grade jewelry. Imports in L918 were as follows: Hi Ii.t grades of jewelry ' i, own grades of jewelry: Total United States i parts: " ••- I 1 1 states 1 Largest single imports credited to Argentina. TRADE. OTHER CLASSES OF GOODS. Imports of other classes of goods in 1918 were as follows: 239 Articles and countries of origin. Coal and oils: Coal- Total Chile Great Britain Gasoline — Total United States Kerosene — Total United States Crude petroleum — Total Chile United States Paraffin and stearin — Total United States Other oils, mineral — Total United States Explosives (largely dyna- mite for mines): Total United States Leather goods: * Total United States Musical instruments (largely phonographs): Total United States Paints and varnishes: Total LTnited States Kilos. 36,121,372 29,123,288 6, 488, 397 940,425 622, 712 1,939,173 943,440 7,233,393 4,895,159 2,317,367 1,341,115 1,272,381 1,765,421 1,212,169 1,128,075 766,974 287,991 183,195 Bolivi- anos. 2,621,126 2, 100, 502 484,292 75,233 49, 816 155, 133 75,475 578,671 391,612 185,389 344,191 326,005 269,610 178,571 1,378,140 1,123,090 39,088 6,805 186,436 169, 169 183,195 86,167 Articles and countries of origin. Perfumery and cosmetics: Total". United States Photographic and motion- picture supplies Porcelain ware: Total Japan Railway cars: Total United States Sacks for ore: Total Great Britain Sewing machines: Total United States Soaps : Laundry — Total Great Britain Toilet- Total United States other grades- Total United States Toys: 'Total United States Japan Steam engines: Total United States Kilos. 25,647 9,223 23,581 13,444 358, 214 183,620 1,121,164 514,085 84,560 71,187 424,429 263, 352 22,673 15,735 3,730 1,865 17,830 6,182 4,334 472, 234 193,918 Bolivi- anos. 112,075 37, 13(1 36, 689 12,567 7,324 280, 737 154, 366 168,166 77,106 42,280 35,593 211,938 131,399 33,767 24,088 2,608 1,305 24,300 9,438 4,606 526, 135 280,562 INVESTMENTS. Some of the factors affecting investments in Bolivia have already been considered in other parts of this handbook. It may be added that the attitude of the Government and of the responsible element of the population. is highly favorable to the introduction of foreign capital for the internal development of the resources of the country. While there is no discrimination against any particular nationality. opinion has been especially favorable in late years to American enter- prises. In fact, in no country in South America are the people more sincerely friendly to Americans than in Bolivia. Those interests that leave a reasonable return in the country may expect fair treat- ment from those in power, but the attitude of the Government is strongly opposed to any effort by foreigners to exploit the national resources without an adequate recognition of the public interest. Concessions for important industrial privileges or undertakings arc generally secured through the National Congress, though the President and the Minister of Public Works and Industry have large authority in such matters. It may also be necessar} T — or at least advisable — to deal with the prefect of the department in which the enterprise in question is to be located. Negotiations for concessions arc liable to be long drawn out, and they demand a man with real diplomatic skill and patience. However, any attempt to influence a favorable decision by a too direct appeal to the self-interest of those in authority may defeat the whole purpose of the negotiations. It is, moreover, necessary to engage a responsible lawyer who is familiar with the law of corporations in his country — preferably one who is affiliated with the political party in power. BOLIVIAN. The capital available within the country in Bolivian hands is far from sufficient for the task of developing the national resources. As in most of South America, the native Bolivian has not been in- clined to initiate large industrial undertakings. The high rate of interest in the country also generally deters the Bolivian from put- ting his money into stocks and bonds, unless a high return on his investment is fairly certain, lie usually prefers to invest in banks, which satisfy his conservative desire for security, or in real estate, both town and country. However, then 1 have been many marked exceptions to this rule. Among these have been Sefiors Patino, Avi'lino Aramayo, Taborga, and Mendieta in mining, and the Snare/ brothers and Sefiors Vaea Die/, Goytia, Lavadenx, and Xamora in other lines of activity. Moreover, an increasing share of stock in min ing companies operating in Bolivia, though organized elsewhere, is held by Bolivians. An example of this is tin 1 considerable block of Oploca shares 'see p. L30)held in Sucre. Also, the majority of the manufacturing concerns in the country are operated by Bolivians. ■i 10 INVESTMENTS. 241 AMERICAN. American investments in Bolivia consist largely of mines, Govern- ment loans, and oil lands. The mine holdings include those of the Guggenheims in the Inquisivi district and those of the International Mining Co. in the Yungas region. The Bolivian bonds include those of the Chandler loan of 1917, amounting to $2,400,000. Two com- panies organized with American capital — Richmond Levering & Co. and the Argentine-Bolivia Exploration & Development Co. (William Braden interests) — hold large tracts of Bolivian petroleum lands in concession. BRITISH. The largest single British interest in Bolivia is the Bolivia Rail- way and the Bolivian section of the Antofagasta & Bolivia. British investments in mines include the important Aramayo Francke Co., the Penny & Duncan mines at Morococala, the Anglo-Bolivian Tin Co., the Berenguela Tin Mines (Ltd.), the Porco Tin Mines (Ltd.), the Olla de Oro Gold Mining Co., and the Royal Tin Mines of Potosi, Bolivia, (Ltd.). British capital has also been invested in rubber lands in northeastern Bolivia, especially in the properties of the Anglo-Bolivian Rubber Estates (Ltd.) and in the Banco de la Nacion Boliviana. British investments in 1911 amounted to about £6,000,- 000, according to the British consul at La Paz. FRENCH. French investments in Bolivia are important and widely diversi- fied. In mining there is considerable French capital in the Corocoro Copper Mines (Ltd.) and in the Compania Huanchaca de Bolivia. Though Luis Soux and the Bebin Brothers, who hold the largest in- terests in the Cerro of Potosi, are of French birth, they have been in the country so long that their holdings have lost much of their foreign character. In spite of its English name, the Bolivian General En- terprise Co., which controls most of the public utilities of La Paz, including the electric light plant, tramways, and telephones, is a French concern. There are also important French rubber and trading interests in the lower Beni region, including the firms of Braillard and Picollet. A large part of the stock of the Banco de la Nacion is held in France. Other French investments include the loans of 1910 and 1913, amounting to £2,560,000. GERMAN. German investments in Bolivia are not in proportion to the former extent of German trade with that country. Most of the German capital in Bolivia is invested in commercial businesses or in enter- prises controlled by these trading houses. In the Amazonian region of the Beni and Santa Cruz, these firms combine trade with the ex- traction of rubber, as in the case of Zeller, Villinger & Co. and Alfredo Barber & Co. In some parts they are engaged in cattle raising, as with Juan Eisner & Co. and Staudt & Co. Or they are interested in public utilities, as are Gustavo Hinke & Co. in the light and power 4441 !2°— 21 10 242 BOLIVIA: A COMMEBCTAL AND INDUSTRIAL HANDBOOK. companies of Cochabamba and Oriiro. In a few cases they have embarked in mining, as Boettiger & Trepp have at Araca. Must of the breweries in the country are German-owned. The Banco Aleman Transatlantico, which has branches in La Paz and Oruro, has done much to promote German investments in Bolivia. CHILEAN. One of the most interesting developments in Bolivia within recent years has been the growth of Chilean investments in the Bolivian mines. The most important of these mining companies, with their capitalization, are as follows: Capital paid up. Compafifa Minerade Oruro 1 320. 000 (Bs. 4, ooo. 000) Compafifa San Joe6 & Atlantana 400,000 . (5,000,000) Empresa Minora de Vinto 40, 000 (500, 000) Empresa Porvenir de Huanuni 175, 000 (2, 187, 500) Sociedad Estanifera de Totoral 70, 850 i 8*5, 625 < oiapafiia Estanifera El Acre 75, 000 (937. 5( <> Compaiiia Huanchaca de Bolivia 1, 600, 000 1 20, 000. 000 ) Compafifa Estanifera de Llallagua 425,000 (5,312, 500) Compafiia Oploca de Bolivia 168, 000 (2, 100, 000) Compafifa Fortuna de Colquiri 50, 000 (625, 000) Compafifa ( 'orocoro de Bolivia 400, 000 1 5, 000, 000) ( Jompanfa Araca 200, 000 (2, 500, 000) Sociedad Estanifera de ( olcha 60, 000 75i >, 000) Compafifa Minora de Monte Blanco 500, 000 (6, 250, 000) Total ■[, 483, 850 (56, 048. 125) Although these companies are organized in Chile, a large part of the capital invested in them is not Chilean. Special Agents Series No. 208. FIG. 20.— SHOP FRONT IN POTOSI. FIG. 21.— CORNER OF MARKET IN ORURO. Special Agents Series No. 208. FIG. 22.— BANCO DE LA NACION BOLIVIANA IN ORURO. FIG. 23.— BANCO MERCANTIL IN LA PAZ. BANKING AND MONEY. BANKING LAW. All national banks operating in Bolivia must invest 20 per cent of their capital in shares of the Banco de la Nacion, though foreign banks may place this quota in national bonds. All banks are re- quired to maintain a gold reserve amounting to 5 per cent of their total deposits. National banks are required to pay 8 per cent of their net profits to the National Treasury, and foreign banks are re- quired to pay 5 per cent of their gross profite. Private banking houses must pay a tax to the Government of 2,000 bolivianos a year. • BANKS OPERATING IN BOLIVIA. BANCO DE LA NACION BOLIVIANA. This semigovernmental bank, the Banco de la Nacion Boliviano, was created by national law of January 7, 1911, largely as a protest of La Paz interests against the predominance of the Sucre banks in the financial system of the country. The original capital amounted to 15,937,500 bolivianos, half of which was subscribed by the Govern- ment on the basis of a loan placed in Paris. Most of the remainder of the stock was taken by French interests, chiefly by the Credit Mobilier. The bank later absorbed the Banco de Bolivia y Londres, the Banco Agricola, and the Banco Industrial. In the first case the Banco de la Nacion issued in exchange shares which are held by the Anglo-South American Bank. In the other cases the shares issued were taken by Bolivian interests. The head office of the bank is in La Paz, and there are branches in Cochabamba, Oruro, Potosi, Sucre, Tarija, Uyuni, Santa Cruz, Trin- idad, and Riberalta. The administration of the bank was tempora- rily disrupted by the revolution of July, 1920, at which time the president of the board of directors, Sr. Juan Munoz Reyes, and three of the directors were deported from the country. Among the di- rectors who remained on the board were Mr. Jacob Backus, the general manager of the Antofagasta & Bolivia Railway, and Sr. Jorge E. Zalles, the general manager of the Bolivian business of W. R. Grace & Co. A committee in Paris represents the interests of the French shareholders. A provision in the statutes of the bank places the control of its administration in the hands of its private share- holders, who comprise a majority of the directorate. The Bolivian Government now holds 99,341 out of a total of 151,700 shares, or 65.48 per cent of the stock. On its creation the Banco de la Nacion was invested with the same power of note issue enjoyed by the two Sucre banks and the Banco Mercantile However, a movement for confining the right of issue to the new bank culminated in a law of 1914 which granted the Banco de la Nacion the exclusive privilege of issuing notes. The bank was obliged to grant a loan to the Government equal to 4 per cent of the 243 244 BOLIVIA: A COMMERCIAL AXH [NDUSTEIAL BANDBOOK. amount of the notes to be issued, and without interest. It was authorized to issue notes up to 150 per cent of its paid-up capital. which could be raised to £4.000,000 ($19,466,000). These notes were to be issued in denominations of from 5 to 500 bolivianos. The hank was required to cover 30 per cent of its notes in gold, and after 1918 this proportion was to be increased annually by 2 per rent until it reached 50 per cent of the bank's note issue. The other three banks which had had the right of issue were compelled to withdraw their notes from circulation by July 1, 191G, but these banks were later allowed a period of !() years in which to liquidate their out- standing note issues. On June 30, 1913, the three banks had in cir- culation notes to the value of 19,942,000 bolivianos, or an equivalent of £1,596,100 ($7,767,421), while their combined gold reserves amounted to only £1,131,700. As a result, they early began to call in their investments, and the Sucre banks curtailed their credit, while the interest on short-time loans rose to 12 per cent and on accounts current to 10 per cent. Shares in the Banco Nacional and the Banco Argandona fell 30 per cent. The situation created by the law has continued to cause much bitterness between the interests repre- sented by the Banco de la Nacion and its rivals, because of the advantageous position that the former was enabled to take in the banking system of the country. The bank has lately established a "Caja de Ahorros," or savings section, in connection with its other business. The total deposits on December 31, 1919, amounted to 649.394 bolivianos, in 1,933 sepa- rate accounts. It is an interesting fact that the Santa Cruz branch held second place in the list of branches, with deposits of 135,656 bolivianos. To encourage saving among children, the bank opens an account in its savings section with an initial credit of 10 bolivianos for the most promising pupils in the public schools. The statement of the bank's resources and liabilities at the end of 1919 was as follows: Bolivianos. ( lapital authorized I 64,000,000 1 50, 000, 000 Capital paid up (£1,600,000) 20,000,000 Reserve fund ( 6200,000 1 2, 500, 000 Emergency fund ( 620,000) 250, 000 I tisposable fund ( 6160,000) 2, 000, 000 1 (ividend fund ( 624,515) 306, 87 Notesin circulation 26, 942, 094 Deposits 21, 9 16, 396 Gold L6, 372, 579 Investments M), 832, Credits abroad 1.7,978, 615 Total reserves 5, 056, 437 \Yt profit for 1919 1 . 380, 751 A dividend of 71 per cent was paid in 1918, and one of S\ per cent was declared in 1919. The total net profits for the period from 191 1 to dune, 1919, amounted to 15,762,250 bolivianos. The Btate of the bank during the period 1911-1919 is illustrated by the following table: BANKING AND MONFA 7 . 245 Vears, Notes in circulation. Discounts and over- draft s. Deposits. Gold. Capital Net profits. 1911 Bolivianos. 1,195,385 2, 577, 527 6, 543, 254 13,334,770 15,890,079 16,815,593 20,388,896 25,984,984 26, 942, 094 Bolivianos. 14,125,639 21,771,521 32, 397, 424 37,751,482 37, 506, 369 39, 607, 014 39,775,854 39, 959, 093 40, 832, 364 Bolivianos. 2,385,514 5, 909, 452 6,952,278 7,665,816 12, 773, 654 14,267,039 21,907,596 18,307,692 21,946,395 Bolivianos. 2, 728, 081 2, 097, 006 6, 659, 737 6,591,150 6, 672, 630 6,959,260 7, 105, 862 18, 188, 882 16, 372, 579 Bolivianos. 15,937,500 15, 937, 500 18, 962, 500 18,962,500 18, 962, 500 18, 962, 500 18,962,-500 18, 962, 500 20, 000, 000 Bolivianos. 433, 570 1912. 829, 094 1913 1,261,462 1914 l,r,6.s,si).s 1915 1,810,134 1916 2,268,238 1917. . 2,858,151 1918 3, 068, 790 1919 2, 944, 749 BANCO NACIONAL DE BOLIVIA. The Banco Nacional de Bolivia is the oldest bank in the country, having been created in accordance with a law of August 17, 1871. The head office of the bank is in Sucre, where most of the stock is held. There are branches in La Paz, Cochabamba, Oruro, Potosi, Tarija, Tupiza, and Uyuni. In 1919 the Banco Francisco Argan- dona, of Sucre, was incorporated in the Banco Nacional. This bank was founded in 1892 and had four branches, in addition to the main office in Sucre. Of a total of 112,000 shares of the Banco Nacional, 27,478 are now held by the Argandona family. The statement of the bank's capital and reserves on January 29, 1920, was as follows: Bolivianos. Capital paid up 11, 200, 000 Reserve fund 5, 700, 000 Emergency fund 370, 000 Dividend fund 361, 226 Total 17, 631, 226 At the same time deposits amounted to 17,934,226 bolivianos and the bank's stock of gold to 4,418,328 bolivianos. Net profits for 1919 were 2,085,177 bolivianos. The bank had paid a total of 19,938,000 bolivianos in dividends to the end of 1919. In 1877 a dividend of 16 per cent was paid, in 1880 one of 20 per cent, and in 1882 one of 24 per cent. Since 1S96 annual dividends of 10 and 12 per cent have been paid, 12 per cent being paid in 1918 and 1919. The state of the bank during the period 1909-1919 was as shown by the following table : Years. Notes in circulation. Discounts and over- drafts. Deposits. Gold. Capital. Net profits. 1909 1910 1911 1912 Bolivianos. 7,272,781 8,768,482 8,629,144 8,333,540 8,432,062 2,995,959 1,729,866 3,682,977 3,970,686 3, 887, 828 4, 833, 619 Bolivianos. 13,008,768 15,391,622 17,059,020 18, 018, 435 15,923,181 13,915,899 13,298,823 14,374,678 13,021,728 15,642,501 22,617,734 Bolivianos. . 5,276,171 7,284,130 10,109,601 10,360,085 8, 160, 349 9,075,619 9,339,123 9,490,659 12, 510, 049 12,998,207 17,934,226 Bolivianos. 3,7S7,108 6,259,037 6,741,879 5,383,393 4, 780, 050 3,671,612 3,533,475 3,526,825 3,502,912 3,467,518 4,418,328 Bolivianos. 6,000,000 6,500,000 6, 500, 000 6,500,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 11,200,000 Bolivianos. 847, 915« 954,230 1, 067, 822 1,072 050 1913 1,094,742 1914... 1,060 823 1915 950, 117 1916 1,104,946 1917 1,108,144 1918 1 681 382 1919. . . . 2 085 177 246 BOLIVIA: A COMMEBOIAL AND INDUSTRIAL HANDBOOK. BANCO MERCANTIL. The Banco Mercantil was authorized by Law of December 7, 1905, and was founded on December I, L906. It is the property of the prominent Bolivian mine owner and capitalist, Sr. Simon Patifio, and much of its strength is derived from the Large resources thai he commands. A Large part of the activities of this bank are devoted to financing the various enterprises in which Sr. Patifio is interested. The head of lice of the bank is in Oruro. The La Paz branch is the best housed hank in the city. There are also branches in Cocha- bamba, Potosi, Sucre, Tupiza, Tarija, and Antofagasta (Chile). In 1909 the bank established a mortgage and loan section, with a capital of 800,000 bolivianos. On December 31, 1919, the total circulation of mortgage cedulas amounted to 634,909 bolivianos. The net profit on this section in 1919 was 15,130 .bolivianos. The statement of the bank on January 1, 1920, was as follows: < iapital' Bolivianos. Authorized (£2,000,000) 25, 000, 000 Paid up (£800,000) 10, 000, 000 Reserve fund I £220,000 i 2, 750, 000 Emergency fund I £7,600) 95, 000 Notes in circulation 4,065, 514 Gold ( £130,062 ) 1 , 625, 781 Deposits 6, 572, 921 Net profits 401 , 120 BANCO ALEMAN TRANSATLANTICO. This German institution, a branch of the Deutsche Uberseeische Bank, is the only foreign bank in Bolivia. It has branches in La Paz and Oruro. Previous to the war it aided greatly in the financing of German business in Bolivia, and is now showing marked signs of recovery from the effects of the war and the allied restrictions on German business operations. The statemenl of the bank on -June 30, L919, was as follows: Bolivianos. < Japital 625, 767 ( ash resources 205, 270 Deposits h 107, 353 Net prolii during firsl half year of 1919 6, L68 A national law of January .'!, 191 1. required that all foreign banks should bring into the country a capital of at least E50,000, or 625,000 bolivianos, of which at least 20 per cent must he invested in national bonds. At that time the Bank fur Chile und Deutschland and the Anglo-South American Bank maintained small branches in _ Oruro. but did not feel that the prospects of their business justified increas- ing their capital to the amount prescribed by the law. They accord- ingly liquidated their business and closed their branches in l'.H I. < KKDlTo HLPOTECARIO DE BOLIVIA. This is a mortgage bank and is situated in La Paz. The hank's statement on 1 )ecem her 31, 1919, was as follows: Capital 700,000 Reserve fund 200, 000 Dividend fund 26,000 Emergency guaranty fund 18, 000 BANKING AND MONEY. 247 The not profits for the last half year of 1919 amounted to 94,684 bolivianos. The amount of mortgage cedulas in circulation at the end of 1919 was 8,494,800 bolivianos, of which 953,600 bolivianos were selected for amortization. Outstanding loans at that time amounted to 8,903,318 bolivianos, covered by property to the value of 27,565,634 bolivianos. According to law, mortgage banks in Bolivia can loan only up to 50 per cent of the value of the property mortgaged. BANCO HIPOTECARIO NACIONAL. This is also a mortgage bank, as its name implies. It is located in Cochabamba, and its operations are largely confined to that region. The state of the bank on December 31, 1919, was as follows: Bolivianos. Capital 100, 000 Mortgage cedulas in circulation 3, 847, 400 Deposits 2, 441, 897 Net profits for 1919 108, 679 Funds for conversion of cedulas 5, 239, 309 These cedulas bear interest at from 7 to 10 per cent. BANCO GARANTIZADOR DE VALORES. The location of this mortgage and loan bank is in Sucre. Its statement for June 30, 1919, was as follows: Bolivianos. Capital 100, 000 Circulation of mortgage cedulas 3, 109, 100 Deposits for conversion of cedulas 452, 790 Net profits for year 26, 398 PRIVATE BANKS. Private banking in Bolivia is largely represented by the banking departments of W. R. Grace & Co., Denniston & Co., Duncan, Fox & Co., and Boettiger, Trepp & Co. — all of La Paz, but with branches in other cities. These houses receive regular checking accounts and do considerable foreign banking. The Casa Bancaria Gutierrez Guerra, a private bank of the former President of Bolivia, was de- clared bankrupt in August, 1920, following the revolution of July and the deportation of President Gutierrez Guerra. This bank had offices in La Paz and Oruro, and aided in financing the operations of some enterprises in which the former President was interested, such as the Sindicato Industrial de Bolivia. An American bank, to be known as the Pan American Bank, was to be established in La Paz in August, 1920, but the plans of the pro- moters of the new institution were not realized and the project was abandoned. MONETARY SYSTEM. Since the first of 1909 Bolivia has been on a gold basis. The law of December 5, 1908, which provided for this change in the monetary system, declared the English pound sterling and the Peruvian gold pound legal tender within the country at a ratio of 12.50 bolivianos to the pound. By the same law, authorization was given to coin 4,000,000 bolivianos in silver in denominations of 50 and 20 centavos, and 1,000,000 bolivianos in nickel pieces of 5 and 10 centavos. The 248 BOLIVIA! A COMMERCIAL AND INDUSTRIAL HANDBOOK. boliviano is the old silver dollar standard of 425 grains and 900 fine. However, there is now no silver money in circulation, and the only metallic currency in the country consists of the above-mentioned nickel coins and copper coins of 1 and 2 centavos. The bank notes in circulation are in denominations of 1, 5, 10, 20, 50, and 100 Boli- via mis. In 1918 an additional 1,000,000 bolivianos in nickel coins were struck oil' in England. Total issues of nickel to the end of 1917 amounted t<> 4,800,000 bolivianos. However* it was calculated in 1920 that half of this had disappeared from circulation. During tin' years 1914-1918 exports of metallic currency amounted to 2,560,744 bolivianos of gold and 1,049,181 of silver, or a total of 3,7o , .i. , .i_ ) I bolivianos. At the beginning of 1920 the stock of gold in the country amounted to 19,306,256 bolivianos, held in the possession of four banks. In 1920 United States gold coins were declared legal tender in Bolivia. The bank-note circulation during the period 1914-1918 (Decem- ber 31) was as follows: 1914, 21,490,713 bolivianos; 1915, 22,572,750 bolivianos; 1910, 24,970,767 bolivianos; 1917, 29,170,688 bolivianos; 1918, 35,149,633 bolivianos. EXCHANGE. At par the boliviano is worth 19^d. or $0.3893 United States cur- rency. In normal times exchange rates on London and New York have been comparatively stable, but great fluctuations were produced by the war. The exchange on London fell from 19^d. in April, 1914, to 15d. at the end of the year. By the end of 1917 it was at 22d. but in May, 1919, it returned temporarily almost to par. The maxi- mum and minimum quotations of the Banco de la Nacion for 90 days' sight on London during the years 1911-1919 are shown in the following table: Years. Pence to the boliviano. Years. Pence f" the boliviano. Maximum. Minimum. Maximum Minimum. 1911 19| 191 is: m in,' 19J 18fi IV.. 15 15 1916 19J 22 22 1912 1917 19 1913 1918 1914... 1919 1915 The efforts of the Government to steady exchange by means i<( a moratorium, the prohibition of gold exports, the suspension of bank- note conversion, and the fixing of the rati 1 of exchange failed of their desired effect beyond a certain point, and Bolivian money was left to the play of the violent factors working at that time on interna- tional business. The same circumstances operated to a huge 1 extent on exchange relations between Bolivian and American money. The course of exchange during L918 was as follows: Bolivianos u> tin' dollar. January 2.41 i<> 2. 42 February 2.40 to 2. 41 March.. 2.40J to 2. 45 April 2. 45 Ma\ 2.41 to 2. 45 June 2.40 to 2. II Bolivianos to the dollar. July 2.:;: to 2. 40 A.ugus1 2 36 i September 2.34 to 2.35 October 2.34 to 2.45 November 2.45 to December 2. 62 to BANKING AND MONEY. 249 Between March 8 and March 28, 1919, sight rates on New York rose from 2.68 to 2.91. By November exchange was at 3, and in De- cember it rose from 3.10^ to 3.43. In January, 1920, rates varied between 2.95| and 3.23, and in February from 2.76 to 2.97. In May they again rose to above 3.15, and in June fluctuated between 3.02 and 3.08, but after the revolution on July 12 rose to over 3.30, which was lower, however, than the rate prevailing for a few days in Decem- ber, 1919. By November dollar exchange had risen to 3.70. PUBLIC FINANCE. NATIONAL FINANCES. BUDGET. The national budget drawn up for 1920 provided for the following appropriations for the different, departments of Government : Bolivianos. Legislative 751, 920 Foreign relations 1,121, 1 38 Worship 116, 740 Government ( 1 nterior | 5, 323, 3 13 Justice 2. 229, 012 Treasury 23, 541, 358 Public instruction 4,645,680 Agriculture 453, I to Public works 3, 044, 080 Industry 185, 900 War 11,316,444 Colonization 782,031 Total 53, 511. 092 Revenues provided for 49. 470. 475 Deficit 4, 040, 617 The revenues provided for were classified as follows: Dominion of the State: Territorial — Mining patents 400, 000 Patents for concessions of petroleum lands 200, 000 Tax of \ centavo per hectare on State lands 80, 000 ( Hher 1 95, 000 Industrial and financial — Quota from < hilean C.oAemment for railway guaran- ties, according to treaty of 1904 and protocol of 190S '..■ 562, 500 35 per cent of .the receipts of the Viacha-< >ruro Rail- way 656, 250 25 per cent of the receipts of the Rio Mulato-Potosi Railway 250, 000 25 per cent of the receipts of the Uyuni-Atocha Railway ." 1 56, 250 25 per cent of the receipts of the Oruro-Cochahaniha Railway 150,000 Interest on the loan of 1913 200, 000 Net profit from the Empresa Luz y Fuerza Elec- trica de Cochabamba 100,000 Merchandise tax for service on $2,000,000 American loan, account of departmental treasury of La Paz.. 400, 000 Tax on copper ores, for same purpose L20, 000 Income from Tarejra-Corocoro branch of railway 120,000 Dividends on L04, 308 shares in Banco de la Naci6n.. 912,675 Alcohol monopoly 2,250, 000 Tobacco monopoly 800, 000 < >ther ' 436, 300 Total 7, 988, 975 250 PUBLIC FINANCE. 251 Public services : Bolivianos. Legalization of consular invoices 1 850, 000 Postage stamps. Telegrams Stamped paper Transaction stamps Extraordinary sources. Other .' 360, 000 600, 000 380, 000 220, 000 400, 000 514, 500 To,al 4, 324, 500 Direct taxes: Tax on dividends of joint stock companies, other than . mining companies Tax on income of joint stock companies Tax on income of banks Tax on income from mortgages Tax on transfers of rubber and mining lands 120' 000 Tax on net profit of mining companies — For fiscal \ ear 1019 3 000 000 For fiscal year 1920 (j| ooo' 000 Revenues uncollected from previous year ' 500 000 0th er 342! 000 SO, 000 30, 000 550, 000 100, 000 Total 10, 722, 000 Indirect taxes: Import duties- 6, 985, 000 Surcharge on import duties. Tax on national alcohols and brandies Tax on coca Tax on merchandise destined to different Departments. Warehousage and storage duties. 040, 000 800, 000 250, 000 653, 000 800, 000 ° ther 54.% 000 Total 11, 071, 000 Export taxes: Tax on minerals — Tin 8, 000, 000 Copper 120, 000 Silver. Bismuth Wolfram Gold Tax on rubber Export duty on hides Export duty on wool Statistics tax on exports Income from "Export Notes' cover deficit from 1919 Other ("Vales de Aduana"), to 400, 000 60, 000 50, 000 1,000 372, 000 80, 000 100, 000 180,000 6, 000, 000 1, 000 Total 15, 364, 000 Grand total revenues calculated 49, 470, 475 The annual income of the Government during the years 190.4-1913 was as follows : Bolivianos. 1904 6,838,576 1905 7,854,698 1906 10,401,512 1907 13,166,684 1908 11, 604, 063 Bolivianos. 1909 11,847,231 1910 12, 583, 232 1911 16,913,512 1912 20, 164, 602 1913 22, 018, 874 252 BOLIVIA: A COMMERCIAL A.ND TXnrSTRTAI. HANDBOOK. The relation between budgets, revenues, and expenses for the period MM I MUX is shown by the following table: Y"ears. 191 1. 1915. 1916. 1917. litis. 21,554,350 16,985,800 1 1.:.;:.. '.'oil 17,101,042 32,586,886 Revenues. Bolit ianos. 15,840,217 12,826, 'Til 15.906,503 19.104,721 29,957,540 Expendi- tures. Boliviano*. 17,150,093 14,791, li-' 18,367, *78 21,942, 153 In 1918 various sources of revenue not provided for in the budget brought in amounts that raised the, total income of the Government to 52,866,951 bolivianos. The budget of 1919 provided for an income of 31,328,787 bolivianos. In the budget of that year import and export duties represented 46.47 per cent of the total calculated income, of which 23.60 per cent was to be derived from imports and 22.87 per cent from exports. Eight and five-tenths per cent of the Government's revenues are obtained from the State monopolies. In 1919, 25.55 per cent of the. calculated income was destined to the service on the public debt. NATIONAL DKHT. The public debt of Bolivia on June 30, 1919, was as shown in the following table: FOREIGN. Loans. Morgan loan of 1909. French loan of 1910. French loan of nun, npplementary. French I. .an of 1913. YiiiiRas Railway loan. J. r. Morgan & Co.. credit uobilier Francais. do Total. ....do Chandler a New York. Co., Inter- est. P.'- 3,560,000 145,298 -..li i. INTERN \ I. Securitii . Bondi oi I he Intei oal debt Bonds of t ho u:ii . ol 1 1"' Pacific and the icre Bonds of the Icre IndemnJ I ion state bond oi 191 1 ( 'n toi adnana") Inter- e I . Ainor- t i/a- i Ion. Perct Perct. 1 Total ISSUO. Total amor- tized to .lime 30, I'M" Bolivianos Bolti i inos 5,029, 125 ::, 154,500 2,378,400 :iiil,7(Mi 312,900 9,943,000 27,913,725 19,700 1,048,660 Balance on Jlllj 1. 1919. Bolivianos. 1,574,925 2,073,700 263,200 9,343,000 6,201,340 . Bonds to issue. 1,080,311 51, i Jo 126, t-'.l ;.7,(xki 1,315, 188 Total lU'llt. Bolivianos. 2,125,120 9, ino.ooo 6,201,840 20,771,363 PUBLIC FINANCE. 253 FLOATING DEBT. Character of debt. Bolivianos. Debt to national banks Short-time debts to foreign banks Mortgage loans Special accounts 4,251,376 5,280,370 201,831 083, 889 Total 10,477,472 TOTAL PUBLIC DEBT. Character of debt. Bolivianos. Foreign. . Internal . Floating. 38. 933, 778 20,771,353 10,477,472 Total. 70, 182, 603 The foreign obligations of the country represent a per capita indebtedness of about $7.50. In the words of a former minister of finance, this debt is "wholly represented by works of public utility." Of the proceeds of the French loan of 1910, £1,000,000 ($4,866,500) was invested in the foundation of the Banco de la Nacion. Prac- tically all of the remaining foreign debt was contracted for the purpose of building railways. The French loan of 1913 was specifi- cally destined to the construction of the railway between Tupiza and La Quiaca, and the Chandler loan of 1917 to work on the Yungas Railway. A former loan held by the National City Bank of New York amounted in 1916 to 1,274,166 bolivianos (about $496,035). However, during that year the Bolivian Government took advantage of the favorable rate of exchange to transfer this debt to the Banco de la Nacion. By law of January 13, 1920, the National Congress authorized the President to secure foreign loans totaling £8,711,560. The proceeds were to be destined to railway construction and sanitary works in the leading cities. Negotiations were opened in the United States, and at the time of the revolution in July, 1920, arrangements had been practically concluded with a New York banking house for a loan of $10,000,000. The money from this loan was to be used for financing four different railway projects and for refunding the French loans, which the Bolivian Government had called, in order to take advantage of the favorable exchange situation. . However, negotiations were suspended, as a result of the unsettled political state of the country, before the final contract had been signed between the bankers and the Bolivian Government. The financial record of the Bolivian Government has been excel- lent. Even in times of great financial stringency, such as prevailed during the early part of the war, the foreign obligations of the nation were met promptly, though it required the curtailment of the internal expenses of the Government to do this. The national leaders have favored a vigorous program of public works, especially of railway construction, and in their anxiety to forward these projects may at times have placed too much of a strain on the national budget. Special imposts have been created and others have been hypothecated 254 BOLIVIA: A COMMERCIAL ANI> INDUSTRIAL II ANDI'.oi >K. t<> meet the special obligations incurred in the promotion of this policy, yel up i<> the present, even in the critical days after the revolution of July, the Government has paid the service on its foreign loans with scrupulous correctness. However, the contracting of further obligations of any magnitude must force the Government to devise new sources of revenue, such as a greatly increased tax on land. The Bolivian Government had called the outstanding French loans before the revolution, and notified the Credit Mobilier that it would liquidate these obligations on October 25, 1920. On the failure to consummate the American loan, an arrangement was made with the three leading banks of the Republic for a loan of 11,600,000 bolivi- anos with which to meet the French debt. DEPARTMENTAL FINANCES. The budgets of the different Depart incuts of the Republic for 1920 were as follows: Department , Chuquisaca. La Paz Cochat amba Potosi Oruro Santa Cruz.. Bolivianos. 274,790 2, 199, 196 508,303 1,132,149 210,363 190,691 Expendi- I ures. Bolivianos. 274,790 2,499,196 508,303 1,141,519 210,363 190,601 i departments. Tarija EI Beni Deficit fur l J olosi Total Revenues. Bolivianos. 164,200 226,284 9,370 ". 215,346 Expendi- ture . Bolivianos. "164,200 226,284 5,215.346 The total expenditures of the departmental treasury of La Paz in 1918 amounted to 5,181,394 bolivianos, a large part of which was destined to finance the work of construction on the Yungas Railway . The revenues and expenditures of the Department of La Paz for 1920 were classified as follows: REVENUES. Ordinary revenues: Bolivianos Land tax 201. L68 Cadastral tax 92, 169 Tax on coca 392, 960 Export tax on hides 40,000 Others L05,000 Special taxes for .sanitary works 560, 000 Special revenues Eor Yungas Railway L, 107, 600 Total 2, 19 i \ PI \ DITCHES. Government or administration it I. son Treasury 352, 516 Public instruction 36,960 Justice 23,120 Worship 39, 960 ( lharity and public benefit U7, 720 Public Works and mads U, 540 Permanent assignments of revenues 65, 800 Eventual assignments of revenues 62, I so Yungas Railway 1. 107,600 Sanitary work* 560,000 Total 2. 499, L96 PUBLIC FINANCE. 255 This budget is fairly representative of those of the other Depart- ments. There is a tax on indirect inheritances in all the Departments, and in the principal stock-raising Departments, such as Santa Cruz and Chuquisaca, there are export duties on cattle and hides. MUNICIPAL FINANCES. The distinctly municipal finances are separated from those of the national and departmental governments, though special appropria- tions are sometimes made by such governments for specifically mu- nicipal needs. The budget tor the city of La Paz for the fiscal year 1920 provided for the spending of 1,742,717 bolivianos. Of this sum 1,108,863 bolivianos was for general administrative purposes, 487,384 bolivianos for the construction of the public hospitals in Mirafiores, and 146,370 bolivianos for public instruction. Among the sources of municipal revenues in La Paz are the following: Rent of property belonging to the city, tax on beer, police fines, commercial patents and taxes, tax on coca, sales of niches in cemetery, and water rates. The municipal revenues of Cochabamba for 1917 amounted to a total of 363,530 bolivianos, of which 109,499 bolivianos were destined to the maintenance of the schools supported by the city. The largest source of revenue is that known as " patentes municipales," or licenses. These vary from 1 boliviano for permission for Indians to wear a mask on feast days to 2,000 bolivianos for breweries of the first class. None of the Bolivian cities owe money abroad. Some have bor- rowed sums for the purpose of carrying out municipal improvements, but from local banks or other interests. The most important finan- cial developments in municipal circles at present are in connection with .the large projects for sanitary works, including sewage and water- works, in La raz, Cochabamba, and other cities. These projects, which will involve the expenditure of large sums of money, are in the hands of an American engineering firm and are described elsewhere. Appendix: TRAVEL NOTES. ROUTES FROM UNITED STATES TO BOLIVIA. VIA WEST COAST. Bolivia can be reached from the Atlantic and Gulf porta of the United States by several different lines, though, as it is an inland country, travelers must disembark at eithera Peruvian or a Chilean port. There are fortnightly sailings from New York by the four steamers of the Grace Line. These steamers do not stop at Mollendo on the wayoul but putin at A rira and Antofagasta, andcallatAntofagastaand Callaoonlyon the return voyage. The time from New York to Arica is 15 days, and to Antofagasta 2 da 3 3 Longer. The fare to Arica and Antofagasta is, respectively, $290 and $325. _ The sen Lee on the vessels of this line is very satisfactory. A very good 6eryice is also offered by the two steamers Ebro and Essequibo, of the Pacific Steam Navigation Co. During L920, through service between Valparaiso and New York via Habana was in- itiated by the Companfa Sud-Americanade Vapores, or Chilean Line. A former Japa- nese steamer, now called the Renaico, is used in this service. Calls are made at Mol- lendo, Arica, and Antofagasta. Persons taking the ships of the United Fruit Co. from \"i a York or New Orleans can transfer at Colon to steamers of the Chilean or the Peru- vian Lines, of which there are frequent sailings to the principal westcoast ports. Those sailing from Pacific coast ports of the United States by steamers of the Pacific Mail can also transfer at the Isthmus. There is a choice of three routes between the Pacific coast and La Paz and other points in Bolivia. These start, respectively, from Mollendo, in Peru, and from Arica and Antofagasta, in Chile. Each of these lines has certain advantages. By taking the Mollendo Line, those who fear "soroche" or mountain sickness can stop' off at Arequipa (7,550 feet) long enough to accustom themselves to the higher altitude before going up to the plateau. Arequipa is itself an important market for most standard lines of goods. At Puno, above Arequipa, passengers are transferred across Lake Titicaca by comfortable steamers to Guaqui in Bolivia. The chief advantage of the Arica Line is the short time required to reach La Paz by that route, the ascent being especially rapid on the rack rail section between Central and l'uquios. The line from Antofagasta crosses the barren nitrate pampa and then climbs onto tlie plateau in the vicinity of the frontier at Ollague. Thence the route lies across the plains of Uyuni and north t>y Oruro to La Paz. The great copper mining camp of ( Inuquicamata lies a few miles from Calama, Chile, on a spur of the railway. The international express between Antofagasta and La Paz is one of the best trains in Smith A merica, tire quality of the service being excellent in every respect. All three lines frt iin the coast offer fine scenic at t rad ions to the traveler. ( migrative details in regard to the three routes are given in the table below. The fares given are subject to change without notice. Passenger rates are affected by fluc- tuations in exchange between the two coast countries and Bolivia, especially by variations in the value of the Chilean peso. 1 [terns. Mollendo. Arica. Antofagasta. Distances between One day from Mollendo. SIS, Mollendo to Arica. . Two davs from Arii a. i |44, Aiica i" Antofa- Port ■J. Dim ■ :; MO, Molt Antofagasta. tractor of poi i Landing Facilities * > i > « • 1 1 bay, partly pro- le ted by Island. t >pen roadstead. landing difficult in rough w eat hei Moats. Londrea and Grand. J way Southern Ry. ol Peru and Guaqul-La Pa Ry. Pei n\ [an 1 kn poration. . . Arica-La Pa Rj i nllean I ."\ eminent Antofagasta 6 Bolivia Rj Antofagasta & Bolivia Rj 1 o TRAVEL NOTES. 257 Items. Mollendo. Distance from La Paz: Miles ! 529 (846 kilometers) Time- Up i 46 hours 30 minutes Down 31 hours 30 minutes Side trips ' Juliaca-Cuzco (210 miles, 10 hours). Altitude: Highest point ' 14.6S7 feet, at Crucero Alto. Other points j 7,550 feet, at Arequipa... Fare: To La Paz | 50.30 soles From La Paz i 75.70 bolivianos (75.65 I soles round trip). Berth ' No sleeping ears: berth on steamer included. Meals | Price included with ticket. Baggage: Amount free I 70 kilos (155 pounds) Charge for excess i Up. 24.35 soles per 100 kilos (220 pounds); down, 35 3'! bolivianos per 100 kilos. Inspection I Baggage declared in transit not inspected at Mollendo; all bag- gageinspected at Gua- qui or La Paz. Number of trains: Up ! Two (Thursday and Saturday). Down « do Changes and connections. Arequipa (on up trip): Presio (train tosteam- erV. Guaqui (steamer to train). 279 (446 kilometers) . 22 hours 20 minutes 21 hours Arica-Tacna 13,960 feet, at General Lagos. Antofagasta. 66.50 pesos (Chilean) . 34.90 bolivianos To La Paz, 18.50 pesos: from La Paz, 9.40 bolivianos. 5 pesos or 3 bolivianos per meal. 50 kilos (110 pounds) Up, 32.50 pesos per 100 kilos; down, 16.50 bo- livianos per 100 kilos. Baggage in transit not inspected at Arica; all baggage inspected at La Paz. One (Monday) . . , One (Thursday). None 727 (1,163 kilometers). 43 hours. 38 hours. Longitudinal Ry. at Ba- quedano, north to Iq 1 1 i- queand 1'isagua, south to Santiago; Calama- Chuquicamata (14 miles, 1 hour). 12,979 feet, at Ascotan . 7,400 feet, at Calama. 110.75 pesos (Chilean). 67.65 bolivianos. To La Paz, 34.30 pesos; La Paz to Antofagasta, 16 bolivianos. 5 pesos or 3 bolivianos per meal, table d'hote. 50 kilos. Up. 56.78 pesos per 100 kilos: down. 36.10 bo- livianos per 100 kilos. Baggage in transit not inspected at Antofa- gasta ; hand baggage in- spected at frontier, rest at destination. Two (Tuesday and Saturday). Two (Tuesday and Friday). Uyuni (change trains). Foreigners entering Bolivia must be able to show a passport for the purpose of establishing their identity and nationality. Such passports must be viseed by the Bolivian consul in the country of departure, and also by the Bolivian consular repre- sentative at Arica, Antofagasta, Puno, La Quiaca, or Corumba, depending on the route by which the traveler enters Bolivia. Bolivian consuls in foreign countries can require the presentation of passports by foreigners 10 days before their departure for Bolivia, though this is seldom required in practice. Foreigners entering Bolivia are further required to present their passports to the police, when arriving at their destination, and to explain their reasons for being in the Republic (as is also required by the law in Peru). All these restrictions, as provided for in a presidential decree of March 26, 1920, constitute a very radical departure from Bolivia's pre- vious policy of permitting almost uninterrupted entrance and egress to foreigners. VIA EAST COAST. Persons desiring to reach eastern Bolivia by way of the Amazon must transship at Para to the steamers of the Amazon River Steam Navigation Co. The only passenger steamers from the United States that touch at Para are those of the Lloyd" Brasileiro, though vessels of the Booth Line from England regularly make Para on their outer voyage and some of them ascend the river as far as Manaos. The usual destination of the up-river boats on the Amazon is Manaos, though some of them ply to Porto Velho, which is on the direct route into Bolivia. In the former case travelers are compelled to reembark at Manaos on a steamer bound up the Madeira for Porto Velho. At San Antonio, near Porto Velho, is the terminus of the Madeira-Mamore Railway, which extends 186 miles to Guayaramerin. Passengers bound for Riberalta cross the' river at this point and take mules for then- destination on the Beni, about 70 miles to the west. Those bound for Trinidad or Santa Cruz take launches for the trip up 44462 °—21 17 258 BOLIVIA: A COMMERCIAL. AND INDUSTRIAL HANDBOOK. the Ma more, and if their destination is Santa Cruz they leave the steamer at Puerto Velarde or Cuatro Ojos, from which point they reach Santa Cruz by mule. The Santa Cruz region can also be reached by the railway connection across Brazil from Santos to the Paraguay River or directly from Buenos Aires by way of the Parana and Paraguay. The former route entails transfers at Sao Paulo and Bauru from one train to another and at Porte Esperanca from the train to the steamer forCorumba. From Corumba there is a dailv launch service to Puerto Suarez on the Bolivian ride of the Laguna de Caceres. At"Puerto Suarez persons desiring to travel into the interior of Bolivia must engage mules, which are usually difficult to obtain at any price. The facilities for travel over this long and difficult trail are described in the chapter on "Transportation and communications." There are direct steamers between Buenos Aires and Corumba by the Mihanovich Line, with a weekly schedule of sailings. These boats are comfortable, though the fare is high and the trip consumes about 10 days. The Bolivian Plateau can also be reached from Buenos Aires by way of La Quiaca, between which two points there are through rail connections, though involving a change of trains at Tucuman because of the different gauges prevailing north and south of that city. Between La Quiaca at the frontier and Atocha, the present Bolivian railhead", there is a gap of 200 kilometers (125 miles), which must be covered by automobile or mule, depending on the season of the year. Between Atocha and La Paz there is a regular train service, though with a change of trains at Uyuni. From about the middle of Mav to about the middle of November a regular automobile service is maintained for the transportation cf passengers and their baggage. The company that operates this servi e owns 10 cars (most of them of German make), with a capacity of 60 passengers. The fare for the entire trip is 70 bolivianos, and the charge for excess baggage above the very small maximum allowed each passenger is 1 .75 bolivianos per 5 kilos. The cars leave Yillazon, on the Bolivian side of the herder, at 1 p. m. on Tuesdays and Fridays, and reach Atocha at 12.30 p. m. the following day, the passen- gers spending the night in Tupiza, about midway between the two terminals of the route La Quiaca can be reached from Buenos Aires by two different routes. The shortest and most rapid route is over the Central Argentine. A train leaves the Betiro station in Buenos Aires at 6 p. m. on Tuesday and arrives at Tucuman at 7 pm. the next dav. At Tucuman change is made to the narrow-gauge line of the Central Norte, a State railway, by which passengers reach La Quiaca on Thursday evening at 7.20. Thus the distance of 1.107 miles from Buenos Aires is made in a little over two days. The fare from Buenos Aires to La Quiaca is 97.70 Argentine pesos, and the charge for baggage over the 50 kilos allowed each passenger is 4.51 pesos for each 10 kilos. ,,,.,.,•,, • , The other route out of Buenos Aires is over the < entral < ordoba, a tram leaving Buenos Aires at 0.30 p. m. on Wednesday and reaching La Quiaca at 7.30 p. m. on Saturdav As in the case of the other route, passengers are forced to change at Tucu- man to "the Central Norte. The distance over the Central Cordoba is L1S5 miles. Travelers going from Bolivia into Argentina can leave la Quiaca over the Central \ r-.-niine'at B.30 a. m. on Tuesday, reaching Buenos Aires at 12. 15 p. m. on Thursday. The train leaving 1 a Quiaca at the same hour on Sunday makes connections at Tucu- man with a Central Cordoba train, which arrives in Buenos Aires at 7.20 a. m. on Wednesday. , . ,. . ,. . . For passengers from Buenos Aires to points in Bolivia there are two trains a week from W-xha to I'vuni. a distance of 56 miles. These trains leave Atocha at 1.30 p. m. on Wednesdays and Sundays and reach Fyuni at 5.35 p. m. At I yum connections are made for 1 a Paz, trains leaving for the north at 8.10 p. m. on the same days and arriving in la Paz at 2.25 p. to. the following day. Trains leave 1 a Pa/, for the south at 3 30 p m on Tuesdays and Fridays, arriving at I'yuni at 7. is the next morning. [ns leave I'yuni for Atocha at a. to. on Wednesdays and Saturdays, reaching Let ween Atocha and La Paz is 38.90 bolivianos. 11ms the total fare between Buen< and La Paz is about $80 for a distance ol about I Bolivia from Buenos Vires can make complete arrangement for the through trip through the Expreso Villalonga or the Bxpreso toternaaonaJ, both of which haveofficesin the Vrg atine capital, villalonga sells a through ticket. I railway and automobile fare, hotel charges, and I eiihson tram, with meals, for 300 pesos, or about $130. . The total time b itween Buenos Aires and La Paz for passengers using the « antral entine connection is L40J hours. From I.a Paz to Buenos Aires it is 141* hours. two small "hotels" at Atocha. where very poor accommodations are who arc forced to pai the night in this village. However, ,' t is ... a , rail) possible to Becure a night's lodging in a building that belongs to the [way company, or in the sleeping car that lies here ovennghl before returning to TRAVEL NOTES. 259 Uyuni. During the rainy season persons who attempt to cross between La Quiaca and Atocha are forced to engage mules and a muleteer at either terminal. Those bound for the Santa Cruz region of Bolivia from Buenos Aires must leave the main line of the Central Norte at Perico for the railhead of the branch line to the northeast at Embarcacion. At this point it is necessary to engage pack animals for the trip north bv Yacuiba to Santa Cruz. _ Bolivia can also be reached from Buenos Aires by way of V alparaiso. i his requires a trip by train over the Transandine Railway and an ocean voyage from Valparaiso to Antofagasta. Arrangements for passage can be made through either of the Buenos Aires express companies named above. ACCOMMODATIONS FOR TRAVELERS IN PRINCD?AL CITffiS. LA PAZ. The La Paz hotel most frequented by foreigners is the Paris, which is situated on the central plaza. The rates are from 12 to 15 bolivianos a day, American plan. The rooms are attractive, though none have private baths in connection. The food is ample in quantitv, though not always most appetizing to fastidious travelers. Elec- tric stoves can be secured at night until 10 o'clock for an additional charge. Rooms can be encased in advance from the coast by wire. The Central is another hotel, which is being increasinglv frequented by foreigners. There are automobiles at the railway station to meet the trains. The fare from the station is one boliviano, though an additional charge is made for the passenger's baggage. Money can be changed at the banks or at the shops of the money changers on Calle Comercio. Among the side trips that can be made from La Paz are the following: To Corocoro copper mines, by Arica-La Paz Railway; to Sorata, by automobile; to Yungas dis- trict, by Yungas Railway and mules. ORUKO. The distance from La Paz to Oruro is 233 kilometers (145 miles), which is covered by the International train in less than seven hours. There are seven trains a week between the two cities, five of which are local, the other two running between La Paz and Antofagasta. Two night trains, earning very comfortable sleeping cars, were put on the Oruro-La Paz run during 1920. The total distance between Oruro and Antofagasta is 930 kilometers (578 miles). The fare to Oruro from La Paz is 17.20 bolivianos, and from Oruro to Antofagasta 66.05 bolivianos. The principal hotels in Oruro are the Eden, the Union, and the Quintanal, all of which are situated on the principal plaza and at some distance from the station, from which there is a regular taxi service. Rates are from 10 to 12 bolivianos per day, American plan. The rooms in these hotels are quite satisfactory according to west- coast standards, though bathroom accommodations are not of the most modern. The nights in Oruro are very cold, and persons visiting this city should be supplied with especially warm clothing. The following side trips can be made from Oruro: To Uncia and Llallagua, via Machacamarca, two trains a week from Machacamarca to m in es; to Cochabamba, via railway, four trains a week each way. COCHABAMBA. Cochabamba is reached from Oruro over the 211-kilometer (131-mile) branch of the Bolivia Railway, which was opened to traffic in 1917. On the descent from Oruro to Cochabamba the trains cover the distance in 10 hours, and in the opposite direction in 12 hours. Passengers coming from either Antofagasta or La Paz formerly had to spend a night in Oruro, leaving for Cochabamba the following morning at 8.30 a. m., but in May, 1920, a biweekly night train from La Paz was put on, which enables passengers'to change directly at Oruro to the train for Cochabamba. Also, whereas there were formerly only two trains a week into Cochabamba, there are now four. The one-way fare from Oruro is 17.40 bolivianos. The cars on this line are com- fortable, and the food is good. The route, moreover, offers one of the best scenic attractions in South America. The best hotel in Cochabamba is the Majestic, which is, in fact, one of the two best hotels in Bolivia. Rates are from 10 to 12 bolivianos a day. The Union is the hotel formerly most frequented by foreign travelers. Public automobiles are available for hire, as in all the larger towns of Bolivia. •260 Bolivia: a commercial and industrial handbook. The following Me trips can be made from Cochabamba: To Quillaeollo, by eleetric train; to Sacaha. by automobile (during dry season); to Punata, Cliea, and Arani, by train of the 0. L. ^ F. E. 0.; to Totora, by automobile (during dry season >; to Sucre, by automobile (during dry season i; to Santa Cruz, by train, automobile, and mule POTOSI. Potosi is connected with the main railway system of Bolivia by a branch which leaves the line of the Antofagasta & Bolivia at Rio Mulato — a place that consists only of B railway station and a small hotel where passengers may spend the night. It 10.") kilometers (65 miles) north of lyuni and ill kilometers (274 miles) south o Pa/.. The branch line to Potosi passes through some very rough country and crosses the divide at over 15, #00 feet. There are two trains a week between Rio Mulaio and Potosi. making the trip in a little less than 9£ hours. SUCRE. During the dry season communications between Sucre and the outside world ate by means of a regular automobile service from Potosi, oi from the railhead at Betanzos, about 55 kilometers (34 miles) out of Potosi. During the rainy season the trip must be made by mule. The total distance between Potosi and Sucre is about 171 kilo- meters (100 miles). During the dry season — May to December— when the automobile service is maintained, the road is one of the best in Bolivia. The automobiles belong to the Empresa de Automoviles J. Moseoso, which receives a subsidy from the Bolivian Government. Large American cars, carrying 10 passengers in addition to the driver, are used. The cars cover the distance between the two places in about 9i hours. The fare between Potosi and Sucre is 60 bolivianos, and there is a high charge for baggage. When the cars operate from Betanzos in connection with the passenger train from Potosi, the charges are about a third less. The trip is made t\\ Lc< a week ea'h way. The best hotel in Sucre is the Col6n, which is situated on the main plaza. Another hotel is the Hispano-Americano. Rates are very cheap at both these places, but the accommodations leave something to be desired. From about the middle of May to the middle of November there is a biweekly automobile service from Sucre to Cochabamba. This service is described in the chapter entitled "Transportation and Communications" (see' p. 91). SANTA CRUZ. The different routes to this isolated city of 20,000 people in eastern Bolivia have been described in the section referred to above. The most practicable route is that from Cochabamba by way of Totora and Samaipata, though this route also requires some primitive traveling through very mountainous country. The best hotel in Santa Cruz is the Comercio. o 15 16 17 BOLIVIA SCALES Statute Miles, 103 = 1 Urh. Kilometers. ICS = 1 \anb. 50 100 Rand Mci*»Uj Popular Map o( Bollvll, Copyright by Band McNallj 4 Co. Used lij Permission ■ 5 i «-\nr*Oi iJB^fraiMx^!^; ^ Jiff?* 5 !/ *• a Ml ilsll sill .1m)| Si fj&f 1 /7l