HF 
 
 3212 
 
 P19B21 
 
 Ballivián 
 
 Bolivia
 
 THE LIBRARY 
 
 OF 
 
 THE UNIVERSITY 
 
 OF CALIFORNIA 
 
 LOS ANGELES
 
 Pan American Financial Conference. 
 
 BOLIVIA 
 
 MEMORIAL 
 
 From the 
 
 Government Delegate and 
 
 Representative of the National Chambers of 
 
 Commerce and Banking Institutions. 
 
 1915.
 
 Pan American Financial Conference. 
 
 BOLIVIA 
 
 MEMORIAL 
 
 By 
 
 ADOLFO BALLIVIAN 
 
 Government Delegate and Representative of the 
 National Chambers of Commerce and Banking Institutions 
 
 1915.
 
 HP ■ 
 
 32-15- 
 
 MEMORIAL 
 
 ^502937
 
 BOLR^IA, in response to the invitation extended to her 
 by the United States Government to be represented at 
 the "Pan American Financial Conference" to be held 
 on May 24th, 1915, has appointed to act as her delegation the 
 Envoy and Minister Plenipotentiary at Washing-ton and the 
 Consul General in New York who also has been nominated 
 to represent the Bolivian Chambers of Commerce and Bank- 
 ing Institutions. 
 
 The Minister of Finance, Mr. Julio Zamora, being 
 unable to attend personally, for the purpose of elucidating 
 the subjects and problems to be discussed at the said Con- 
 vention, and undoubtedly of the most preeminent importance 
 for the economic interests of the American Continents, has 
 graciously consented to suggest in rough outlines "a few 
 conceptions relating to such fundamental rec|uirements as 
 may justly be considered as the basis for practical measures 
 that will result in the perpetuation and the reliable and 
 constant development of the commercial, industrial and 
 financial relations between Bolivia and the United States, an 
 ultimate purpose for the accomplishment of which, with 
 respect to each and every Pan-American country, the said 
 Convention is no doubt destined to take the initiative." 
 
 As it appears expedient to record in its original form 
 the true sentiment of the Government of Bolivia, as expressed 
 with marked accuracy by her Minister of Finance, we shall 
 give an unabridged transcription of the same, in pursuance 
 of the above quotation : 
 
 "Since no statement of concrete subjects for discussion is 
 attached to the Note of hivitation, it may logically be presumed 
 that the United States of America primarily intends to avail 
 herself of this Convention for recording the truthful expression 
 of the aims and requirements of each country, as well as data 
 relating to the industrial and financial possil)ilities it affords, for 
 the purpose of using them as a hasis for steadfastly pursuing 
 the development of the channels of trade and industry which, 
 while already existent, have not as yet assumed the desired 
 importance.
 
 "W'e dare hope, nevertheless, that initiative measures, to 
 be adopted in support and furtherance of the reciprocal commer- 
 cial relations between North, Central and South America, will 
 l)e sul)mitted to the Convention as a ijcneral subject for discussion 
 in the interest of all concerned which, after all, is essentially 
 the purpose for which it is held, as well as other subjects and 
 projects tending to secure for the x\merican Continents the 
 greatest possible degree of independence in their economic life. 
 In view of such a program, we can only give our support to any 
 and all such propositions as embody a practical idea and will 
 redound to the common benefit, and in this connection we might 
 suggest to the United States — as one of the efficient means 
 for establishing more active business relations between the differ- 
 ent countries — the necessity of increasing her merchant marine 
 to such an extent that it will facilitate an ample interchange of 
 domestic products. 
 
 "With particular reference to the wants of Bolivia, it may 
 be stated that, in the opinion of the Government, they consist 
 essentially in two ]:)rimary requirements which must necessarily 
 be made manifest, to wit : In the first place, supplies of capital 
 for developing her industries, and in the second place, the open- 
 ing up of markets for her products. 
 
 "Commencing with the mining industry, irrefutably the most 
 prosperous and comparatively the most largely developed source 
 of production in the country, it may safely be said that every 
 enterprise in this line is in need of the fruitful impulse imparted 
 by capital, when supplied on terms that are in accordance with 
 the peculiar character or nature of such enterprises, in so far as 
 they will allow of such gradual development as they require. 
 While the production of tin and copper has undoubtedly ad- 
 vanced during the past few years, until the outputs now represent 
 quite considerable figures, being the two largest items of our 
 export trade, these results are to be attributed to the few enter- 
 prises organized on a solid basis, and it nevertheless remains a 
 fact that there are a large number of small producers who are 
 prevented, by lack of financial resources, from actively devel- 
 oping their workings. In this connection it is at once evident 
 that the general economic situation would be more largely bene- 
 fited by the relatively satisfactory earnings of the innumerable 
 small enterprises, than by the affluence of three or four mines. 
 
 "But if copper and tin offer a large field for the investment 
 of foreign capital in our country, it behooves us for still better
 
 reasons to mention and urf^e the workiii!^ of our deposits of silver, 
 bismuth, tungsten and antimony, which metals are now being 
 produced on a small scale only, notwithstanding the abundant 
 supplies. 
 
 "With regard to agriculture in general, the conditions sur- 
 rounding this field of endeavor are such as to allow of the state- 
 ment — paradoxical as it may appear at first glance — that it 
 offers far better chances of success by private initiative, inas- 
 much as agriculture is not based on the set principles of modern 
 industrial organization and is less dependent on scientific progress, 
 both of which are factors for whose application the investment 
 of large amounts of capital from which no immediate returns are 
 expected, is an essential necessity. 
 
 "It may readily be acknowledged that our agriculture is 
 still in an embryonic state, and that it is being carried on with 
 no other object in view, than that of obtaining from nature 
 what she will readily give. This applies not only to foodstuffs 
 and cattle breeding, but also to the production of rubber by a 
 system that absolutely requires reorganization, with a view to 
 establishing plantations that will in future be capable of com- 
 peting against the scientifically devised East Indian rubber 
 plantations. 
 
 "The field of arts and manufactures still remains virgin 
 soil. The country may be said to be devoid of manufacturing 
 enterprises in any of the manifold and profitable lines, this 
 leaving an untilled field for private initiative and for the invest- 
 ment of capital, with the assurance of general good will to afford 
 protection to such enterprises. 
 
 "In the opinion of the Government of Bolivia, the main 
 efforts of its delegates should be directed towards giving the 
 capitalists and banking concerns in the United States an insight 
 into the future of our industries, and into the safeguards pro- 
 vided by our Constitution, so as to induce them to organize enter- 
 prises of every description, and to supply capital. 
 
 "Meanwhile, and independently of such initiative measures 
 as their own judgment and due appreciation of existing condi- 
 tions may induce them to take, it will in the judgment of the 
 Government, be expedient to suggest, asa concrete and practical 
 proposition, the necessity of establishing in Bolivia Mining and 
 Agricultural Banks, or at least an agency of one of the large 
 American banking institutions, for the purpose of making them 
 available as a financial body or center, capable of examining into
 
 and reporting on any and all economic wants and requirements, 
 whose satisfaction and fulfilment may be made mutually pro- 
 fitable. 
 
 "With reference to the United States as a market for our 
 principal products which, for the time being, may be restricted 
 to tin and copper, the Government considers it expedient to de- 
 clare that without absolutely withdrawing from the present 
 European markets as an Í7tdispensable requirement, the country 
 would be willing to supply the United States with such quantities 
 of crude material as her industries may require, for which pur- 
 pose it would be primarily necessary for the U. S. A. to place 
 herself on an equal footing with her competitors, with respect 
 to operating conditions and to her capacity as a consignee, by 
 means of the erection and installation of adequate smelting works. 
 "With respect to the purely commercial field, the further 
 i suggestion might be submitted to organize a general association 
 
 of American manufacturers, for the exclusive purpose of main- 
 taining information agencies in the capitals of the Central and 
 South American countries so as to give the trade an opportunity 
 to examine the samples, prices and catalogs of the goods they 
 require, before ordering them from Europe, thereby affording 
 them an opportunity of securing such advantages as may be 
 gained by giving the preference to manufacturers and dealers 
 in the United States." 
 
 This plain and frank statement, emanating- from so 
 authoritative a source, shows that the financial and com- 
 mercial crisis now prevailing in our country can readily be 
 overcome by the internal measures already in force, and that 
 this may be accomplished with results insuring mutual be- 
 nefits and permanent connections, if the United States, by 
 exerting the powerful influence of her Goverment, will secure 
 the beneficial cooperation of her financial and commercial 
 centers. 
 
 This is likewise borne out by the fact that the invitation 
 to send representatives to the Washington Convention has 
 met in pursuance of the wishes expressed by our Government, 
 with so favorable a reception on the part of the banking and 
 other commercial interests of Bolivia, who have even gone 
 so far as to submit valuable suggestions to their represent- 
 ative. We, therefore, beg leave to make known the various 
 points which Mr. Jorge Saenz, President of the Chamber of 
 
 8
 
 Commerce of La Paz, urges us, in behalf of the bankino- 
 institutions and other interests of our country, to set forth 
 before the Convention : 
 
 I. "To make known the fact that there have been estabhshed 
 in the cities of La Paz, Sucre, Oruro, Cochabamba, Potosi, 
 Tarija, Santa Cruz and RiberaUa, properly organized Chambers 
 of Commerce, in which all the Banking and prominent com- 
 mercial interests are represented, and that these Chambers of 
 Commerce are at all times prepared to furnish on request any 
 required information regarding commercial and industrial 
 matters. 
 
 II. "To make every possible effort to induce the New York 
 Exchange to establish a system of daily quotations of the market 
 prices of Bolivian export products, such as tin, silver, copper, 
 tungsten, antimony, bismuth, rubber and cinchona bark, and to 
 have such quotations transmitted, through the agency of some 
 information bureau, to the Bolivian Government, so as to enable 
 the latter to communicate the same to the Chambers of Com- 
 merce throughout the Republic of Bolivia. 
 
 III. "To inform the business interests of the United States 
 with regard to the basis on which Bolivian importers do business 
 with European concerns, particularly with reference to the terms 
 of payment for orders, or, in other words, to make known to 
 them that such business is done on the basis of payment at the 
 end of ninety days from date of receipt of the goods. To impress 
 upon them, in short, the necessity of opening credits in favor of 
 Bolivian firms of acknowledged financial and commercial stand- 
 ing, so they may pay for the goods ordered against drafts made 
 out to the order of Bolivian Banks, and payable at the end of 
 ninety days as a minimum term. 
 
 "The system now generally adopted by business concerns 
 in the United States, under which they demand payment in 
 advance for orders given them, is most unsuitable for the fur- 
 therance of the development of commercial relations. 
 
 IV. "To call the attention of the North American com- 
 mercial interests to the necessity of reestablishing steamship 
 traffic over a route which, starting from San Francisco, 
 California, is to embrace the entire Western coast line of South 
 America, for the purpose of facilitating and developing the 
 trade in flour, lumber, fruit and other products of the soil, etc.
 
 V. "To suggest the proposition of establishing an American 
 Bank in some of the cities of lioHvia, or else Branch Offices in 
 some of the Departmental capitals. The National City Bank 
 has already estal)lishcd a branch in T>uenos Aires, and an 
 available Branch Office of an American 15ank would prove to 
 be an imi)ortant factor in furtherance of the development of 
 commercial intercourse. 
 
 VI. "To secure special quotations on P.olivian rubber 
 vi^hich, with respect to its vises in the arts and manufactures, pos- 
 sesses the same qualities as the grade of rubber known as "Hard 
 Fine Para." The export prices of Bolivian rubber are based 
 at the present time under the "Moliendo" designation and it 
 is thus being confounded w^ith the rubber exported from Perú 
 v^^hich is of inferior quality. This is a highly important matter, 
 by which our exporters will benefit to the extent of several 
 hundred thousand dollars Bolivian Currency. 
 
 Vn. "To call the attention of the Convention to the neces- 
 sity of making the teaching of the Spanish language obligatory 
 in the commercial schools and colleges of the United States, with 
 a view to facilitating the development of commercial intercourse. 
 
 VI IL "To point out to North American manufacturers 
 the necessity of establishing in the United States tin smelting 
 works on a large scale, as the only means for competing against 
 the European smelting works, and for diverting the exports of 
 this material into the American market. 
 
 IX. "To impress upon the export trade of the United 
 States the further necessity of adopting a different method of 
 packing in the case of merchandise and machinery for shipment 
 to Bolivia, since all such shipments, without exception, now 
 arrive in exceedingly bad condition. They require a special 
 method of packing, both solid and strong, so it wall be able to 
 withstand the numerous trans-shipments to which such goods 
 must generally be subjected. 
 
 The economic conditions prevailing- in Bolivia having 
 thus been outlined, with a snecification of the measures re- 
 quired for the betterment of the same, and for opening- up 
 new channels for her commerce and industry, in close con- 
 nection with the United States of America, the delegates, 
 vested with due authority, will be capable of handling- these 
 and other subjects, and of amplifiying the same, in such 
 manner as they may consider expedient in view of their 
 experience and knowledge of this country. 
 
 10
 
 In view of the fact that the proceedings of the Conven- 
 tion will presiiniahly be confined to the discussion of matters 
 of a general character, since it can scarcely be expected to 
 enter into an examination and discussion of affairs directly 
 and exclusively concerning each individual country, we have 
 decided to prepare this present memorial which we shall 
 strive to make as concise as possible, since we have reason 
 to presume that the representatives of the other countries 
 will have recourse to similar means of communication, thereby 
 providing a collection of reference records that will be 
 available for following up the initial suggestions which it 
 will undoubtedly not be possible to convert into resolutions 
 insuring immediate results. 
 
 Our statement will be confined to demonstrations essen- 
 tially of an economic and financial character, supported by 
 specific data and statistical tal)les, without entering upon geo- 
 graphical descriptions, etc., with respect to which it will be 
 sufficient to refer to the valuable store of information 
 gathered and supplied by the "Pan American Union" of 
 Washington, on whose premises the Convention is to hold 
 its sessions and to which all American coimtries are indebted 
 for its efficent and persevering cooperation. 
 
 We consider it opportune to transcribe on this occasion 
 the ideas recently expressed by us in an article printed in 
 "The Nation's Business," published in Washington, D. C. : 
 
 "Bolivia, as well as all countries in the world, has been 
 affected by the European war, in the depression, for the mo- 
 ment, of her economical situation. 
 
 it is time to point out how inaccurate it is to include 
 under the common designation of South America (this being 
 so frequently the case), all of the nationalities south iof 
 Panama, especially as each one of them possesses its own 
 peculiar characteristics, particularly with respect to natural 
 resources and economic and trade conditions. 
 
 In this way Bolivia, being so far, a country without 
 seaports, all her energies have been employed in establishing 
 a complete railway net of communication and developing her 
 mineral resources — the agricultural products have been insuf- 
 ficient to meet the demand of her domestic consumption — 
 consequently the crisis in Bolivia is not so intense and the 
 remedy for the actual economical problem is easier to achieve 
 than in other countries with a more complicated economical 
 organization. 
 
 11
 
 Bolivian trade lias been mostly carried on with the 
 German and lin^-lish markets, which are now shut up, so 
 that we are unable to sell them those i)roducts, or use credits 
 from those sources in order to divert trade in our natural 
 dilemma towards the united States of America. 
 
 There are two princi])al articles of exportation from 
 Bolivia, wherefrom in reciprocation, the demand of articles 
 of importation are obtained, i. e. India rubber and minerals 
 — principally, tin and copper. 
 
 INDIA RUBBER. 
 
 Bolivia, and Brazil, produce the best quality of rubber 
 obtained from the trees of the "Hevea or Syphonia Elástica" 
 known in the market as Para Rubber, but owing to the fore- 
 sight and persevering endeavors of the English Government 
 to acclimatize those trees in their Asiatic dominions, seeds 
 were carefully collected from Brazil since 1865 where with 
 economical and scientific methods, plantations have spread 
 all through the Orient causing deadly competition against 
 the South American Rubber Industry, in spite of the superior 
 quality of its product. 
 
 Nevertheless, it seems to me, that in prevision of the 
 prolongation of the war, and perhaps of future comphcations 
 which may extend their devastations to the rubber regions 
 in the Orient, it would be wise for the United States capi- 
 talists to look forward and undertake, without delay, similar 
 well organized plantations in the Jiabitat of the rubber tree 
 in Bolivia and Brazil, where now^ on account of the depressed 
 situation lands can easily be acquired as well as estates where 
 already exist great quantities of fully matured rubber trees 
 ready for immediate exploitation of the article. 
 
 Furthermore, there are other most important consider- 
 ations to be borne in mind if the people of this country care 
 to be, once for all, free from subserviency to the English 
 market with respect to this indispensable article for the in- 
 dustrial world. I accordingly refer to the authoritative 
 views of Mr. Henry C. Pearson, Editor of "The Indian 
 Rubber ^^^orld" in which he calls attention to the possibility 
 that in the near future, the closely planted areas of rubber 
 trees in the Orient, will be subjected to different natural 
 
 12
 
 perils producing the devastation that may perhaps wipe out 
 those plantations entirely, as happened with the coffee in 
 Ceylon : 
 
 THE FUTURE OF RUBBERS 
 
 As to the future, if the ratio of increase in producing and 
 planting remains the same, the production of plantation of rubber 
 in the next five years should reach 500,000,000 pounds. Such 
 an output would probably mean a drop in price to at least 
 5 cents a pound. It would also mean a wonderful expansion of 
 the rubber manufacturing industry in new and unimagined lines, 
 as w^ell as in the old. But will nature allow such areas of one 
 growth to supplant others? Will not rubber have its boll weevil, 
 its scale, its bud rot? The planters have from the beginning 
 fought white ants, canker, caterpillars ; and the entomologists 
 and mycologists of the world are on the alert to defend these 
 new plantations. Will it not happen that these closely planted 
 areas will suffer and perhaps be wiped out as coffee was wiped 
 out in Ceylon? And will it therefore not come about that a wider 
 distribution of planted areas will be a necessary one that will 
 include tropical Central and South America, Africa and our 
 own Philippines, and thus assure the permanence of this most 
 valuable product?" 
 
 In Bolivia, there are great opportunities and new induce- 
 ments for these plantations on account of the recent instal- 
 lation of the "Madera Mamore Railway" built with American 
 capital in connection at Porto Velho with ocean steamers of 
 4,000 tons admitting navigation during four months, and 
 of 2,000 tons all year round. 
 
 TIN AND COPPER. 
 
 The output of tin in P)olivia represents 45,000 long tons 
 of ore of 60% grade which has all been shipped to smelters 
 in Germany and England, which on account of the war 
 are now closed, so that Bolivia, notwithstanding being 
 next to the Strait Settlements as producer of tin, is unable 
 to obtain a market for her ore in this country as there does 
 not exist any smelter here for that purpose; the one built 
 12 years ago in Bayonne, N. J. was never in operation and 
 is now dismantled, since the English Government in view 
 
 13
 
 of protecting their own output imposed a heavy duty on all 
 ores exported from the Straits to smelters out of the British 
 Dominions. 
 
 The building of a smelter in this country to treat Boli- 
 vian tin ores would be a solution offering mutual advantages. 
 
 Amongst these advantages it is evident that in recipro- 
 cation, which is the basis in which all legitimate commerce 
 rests, this country will obtain the pig tin much cheaper than 
 when imported from Europe by avoiding the ocean freight 
 of $12 per ton on the metal from Europe to New York; in 
 addition, it must be considered that the representative value 
 of this new importation to this country means some 
 $20,000,000 (thus increasing tenfold the actual imports of 
 this country to Bolivia^ that would be invested in the pur- 
 chase of x-Xmerican goods to be exported to Bolivia, and in 
 this way, placing in this country the interchange of trade 
 which existed between the European nations at war. 
 
 These are some of the most essential features of the 
 trade of my country to which I call the attention of the 
 business people of the United States. 
 
 I may as well mention that the Bolivian copper mines 
 produce a higher qualit}^ of ore than any other South Ame- 
 rican countries, consequently it would only require a simple 
 form of metallurgical plant, that could easily be adapted 
 alongfside the tin smelter. 
 
 ^fc>^ 
 
 PETROLEUM FIELDS. 
 
 Recently vast extensions of petroleum fields have been 
 discovered in the southern region of Bolivia, and the news- 
 papers announce that a French Company with a capital of 
 $4,000,000 has been organized to exploit those wells ; this, 
 seems to me, another good opportunity to interest the Amer- 
 ican capital in my country. 
 
 As countless publications have been made with unprac- 
 tical generalities emphasizing the opportunities for this coun- 
 try to supplant the South American trade with Europe, it 
 is well to remember that the general commercial situation 
 is embarassed everywhere by financial stringency, in order 
 to proceed with careful investigation and in a spirit of mutual 
 help in preparing fields to meet future competition success- 
 fully. 
 
 14
 
 With these premises I may mention the goods and arti- 
 cles that were imported from Eng-land, France, Germany, 
 Belgium, etc., and which perhaps could be permanently im- 
 ported in future from the United States: Rifles, revolvers, 
 cartridges, cotton goods, chintz, watches, medicines and 
 drugs, chemicals, cars and wagons, rails, carriages, auto- 
 mobiles, electrical a])pliances, canned goods, meats, fish, fruits 
 and vegetables, coal, hardware, glassware, earthenware, min- 
 ing and agricultural machinery, champagne, wines and 
 liquors, tin plate, plumbers' appliances, condensed milk, 
 extract of meat, hams and bacon, musical instruments, pianos, 
 pianolas, and gramophones, printing paper, and ink, station- 
 ery, furniture, cement, hats, underwear, rubber goods, boots 
 and shoes, soap and perfumery, etc." 
 
 Both for individuals and nations, probity, an honorable 
 record and reliable resources are endowments that constitute 
 assets establishing their standing and credit, as a basis for 
 sound financial operation and connections. 
 
 BOLR^IA thus stands before the world of finance with 
 an unstained record of exceptionally favorable description . 
 
 FACTS AND DATA CONSTITUTING DISTINCTIVE 
 FEATURES OF ECONOMIC CONDITIONS IN BOLIVIA 
 
 I. Bolivia may be said to have maintained peace and 
 order in her domain for 40 years past, the last shortlived 
 disturbance having occured 20 years ago. 
 
 II. Having no sea ports, she has devoted all her energy 
 to the task of spreading a network of railways over her vast 
 territory, admirably blessed with the gifts of Nature. 
 
 III. The delicate problems arising in connection with 
 the marking out of her boundaries, have practically all been 
 solved by Bolivia in harmonious agreement with her ad- 
 joining sister republics. 
 
 IV. On a few occasions, as in the case of Brazil, for 
 instance, where it became necessary to cede sections of her 
 territory, the consideration for the same, amounting to 
 $10,000,000, was wholly and entirely applied to the construc- 
 tion of railways, without the misappropriation of a single 
 penny. 
 
 V. Bolivia has punctually paid the interest on its public 
 
 15
 
 delít, incliuling- both inland and foreií^n loans, and attended 
 to their redemption. 
 
 VI. She has never failed to fulfil her oblis^ations, or 
 refused to allow just claims, whether presented by her citizens, 
 or by aliens. 
 
 VTT. The life of aliens and foreig'n capital have always 
 been amply protected, and there is no recollection of any 
 claims having been presented for attacks on the same. 
 
 VII. The foreii^n debt of Bolivia amounts to scarcely 
 $15,000,000 and has now been reduced to $14,335,312, or 
 actually to $9,383,812, inasmuch as the balance of the last 
 loan of $4,951,500, made in 1913 by the Credit Mobilier de 
 Paris, has not as yet been expended and is drawing- interest 
 at the rate of 3% per annum in the country, until a decision 
 shall have been arrived at with regard to the proposals for 
 the construction of the Tupiza and La Quiaca railway (on 
 the Argentine border), for which the said loan was exclu- 
 sively appropriated. 
 
 IX. The firm confidence and good credit which Bolivia 
 enjoys in Europe are proven by the fact that the loan in 
 question was placed on even more favorable terms than prior 
 loans, viz. at 90%, with interest at the rate of 5% per annum 
 and an annual redemption of 1%, under the supplementary 
 obligation to buy the materials for the permanent way and 
 the rolling stock for the said railway in France. 
 
 X. The Bolivian constitution ranks among the most 
 liberal, and the Mining Code as well as the Laws governing 
 land concessions offer exceptional safeguards and other 
 attractive features. 
 
 XL The population of Bolivia is only 2,500,000, while 
 the country covers an area of 708,195 square miles, the aver- 
 age population per square mile being consequently 3.53, 
 leaving an enormous field for the development of agriculture 
 and for cattle raising, for both of which large sections of the 
 country are splendidly adapted. 
 
 XII. The different branches of arts and manufactures 
 are still in a practically embryonic state, and likewise afford 
 special advantages for all who are willing to establish the 
 same, the Government having taken efficient and sagacious 
 measures for the protection of infant industries. 
 
 XIII. Bolivia, jointly with the Argentine Republic, 
 Chile and Peru, constitutes a group exceptionally favored 
 
 16
 
 with respect to its geogTaphical location, inasmuch as the 
 immense area covered by these countries, affording ample 
 room for hundreds of millions of future settlers, produces 
 and contains in the depths of its soil all the natural products 
 of the globe. With the productive aid of adequate capital, 
 innumerable industrial enterprises can there derive ample 
 vitality from mutual interchange alone. 
 
 XIV. This territory, the greater part of which is 
 within the temperate zone, is exempt from tropical diseases, 
 and it may safely be expected that its present population of 
 20,000,000 will increase to over 50,000,000 inhabitants within 
 a quarter of a century. 
 
 STATISTICAL TABLES 
 
 At the nominal rate of exchange in Bolivia, 12.50 Boli- 
 vian dollars ("pesos bolivianos") are equal to 1 pound 
 sterling, the value of the Bolivian dollar being consequently 
 $0.40 U. S. Gold Cy. The present crisis has caused various 
 declines in these exchange values. 
 
 DEVELOPMENT OF IMPORTS AND EXPORTS 
 DURING THE PERIOD 1902-1913. 
 
 Year 
 
 Exports 
 
 Imports 
 
 Total amounts 
 
 1902 
 
 Bs. 28.041,537 
 
 Bs. 14.143,342 
 
 Bs. 42.184,919 
 
 1903 
 
 25.169,148 
 
 16.252,885 
 
 41.422,033 
 
 1904 
 
 31.465,026 
 
 16.909,586 
 
 48.374,612 
 
 1905 
 
 41.795,937 
 
 20.298,772 
 
 62.094,709 
 
 1906 
 
 55.654,516 
 
 35.087,325 
 
 90.741,901 
 
 1907 
 
 50.331,548 
 
 37.897,611 
 
 88.229,159 
 
 1908 
 
 47.138,320 
 
 40.732,543 
 
 87.870,863 
 
 1909 
 
 63.764,467 
 
 34.224,764 
 
 97.989,231 
 
 1910 
 
 75,622.147 
 
 48.802,394 
 
 124.424,541 
 
 1911 
 
 82.631,172 
 
 58. 371. 409 
 
 141.002,581 
 
 1912 
 
 90.122,987 
 
 49.508,990 
 
 139.631,977 
 
 1913 
 
 93.721,513 
 
 54.762,834 
 
 148.484,347 
 
 The figures for the year 1914 are not as yet available. 
 
 The foregoing Table shows that the exports exceeded 
 the imports by 71.14% in the year 1913. 
 
 The growth in the volume of business (imports and ex- 
 ports) during the last decade, i.e. from 1904 to 1913, is 
 represented by the difference between 48,374,612 and 
 148,484,347 Bolivianos, equal to an increase of 301%. 
 
 17
 
 GENERAL STATEMENTS OF EXPORTS, TABULATED 
 
 ACCORDING TO COUNTRIES. 
 
 SPECIFICATION 
 
 COUNTRIES 
 
 I 
 
 Live 
 Stock 
 
 II 
 
 Foodstuffs 
 
 and 
 beverages 
 
 III 
 
 Crude and 
 roughly pre- 
 pared mater- 
 ials 
 
 IV 
 
 Manu- 
 factured 
 articles 
 
 V 
 Gold and sil- 
 ver not manu- 
 factured and 
 gold and silver 
 coin 
 
 TOTAL 
 AMOUNTS 
 
 
 A lilts, in 
 Bolivianos 
 
 A ints. in 
 
 Bolivianos 
 
 A lilts, ill 
 Bolivianos 
 
 A mts. in 
 Bolivianos 
 
 A mts. in 
 Bolivianos 
 
 A mts. in 
 Bolivianos 
 
 Great Britain, 
 
 
 280.00 
 
 820.74 
 
 60.00 
 
 74.428,267.57 
 
 6.180,079.65 
 
 4.513,870.63 
 
 3.169,456.00 
 
 869,193.20 
 
 152.343.76 
 
 548,596.51 
 
 96,536.52 
 
 10.422.20 
 
 24,728.00 
 
 5,347.00 
 
 1,956.80 
 
 1,949.00 
 
 25,929.00 
 
 1,088.00 
 
 2,780.00 
 
 30,411.10 
 
 1.333,830.34 
 
 7 5 7fi4 .^7fi 01 
 
 
 
 1.766,909 96 7.973 73Q 3Í 
 
 
 
 56,820.00 
 
 4 571 838 63 
 
 
 
 3.172 236 00 
 
 
 
 
 14,242.68 
 
 10,867.27 
 
 150.00 
 
 
 913,846.98 
 590,517.19 
 559,475.51 
 98,136.52 
 32,621.40 
 24,728.00 
 13,637.40 
 
 Chile 
 
 117,310.00 
 
 171,870.00 
 
 10,729.00 
 
 1,600.00 
 
 138,126.16 
 
 
 
 
 
 
 411.20 
 
 3,038.00 
 
 18,750.00 
 
 
 
 
 Brazil 
 
 
 828.ÓÓ 
 100.00 
 
 7,462.40 
 
 
 
 
 2,056.80 
 
 1,680.00 
 
 1,450.00 
 
 612.80 
 
 
 
 1,680.00 
 
 1,450.00 
 
 612.80 
 
 600.00 
 
 
 
 :::::::::: ::::;:::: 
 
 
 
 Italy 
 
 
 
 
 
 
 
 
 
 
 600.00 
 
 
 
 
 10.00 
 
 10 00 
 
 
 
 
 
 
 
 Totals 
 
 117,310.00' 27.759.89 
 
 90.000,807.84 
 
 261,199.30 
 
 3.314,436.46 
 
 93.721,513.49 
 
 EXPORTS FROM THE UNITED STATES TO BOLIVIA IN 1913: 
 
 From New York Bs. 2,958,523.97 
 
 From San Francisco 952,620.00 
 
 From New Orleans 191,872.15 
 
 Bs. 4,103,016.12 
 
 leaving a balance of Bs. 50,659,818.00 
 
 for exports from Europe. 
 
 NATIONAL REVENUES DURING THE LAST DECADE 1904-1913. 
 
 Year 
 
 Revenues 
 
 Year 
 
 Revenues 
 
 1904 
 1905 
 1906 
 1907 
 1908 
 
 Bs. 6.838,576 
 
 7.854,698 
 
 10.401,512 
 
 13.166,684 
 
 11.604,063 
 
 1909 
 1910 
 1911 
 1912 
 1913 
 
 Bs. 11.847,231 
 12.583,232 
 16.913,512 
 20.164,602 
 22.018,874 
 
 The above Table shows an increase of 23 0% during the said decade. 
 The annual departmental revenues may be estimated at 3,000,000 Boli- 
 vianos. 
 
 AMOUNTS REQUIRED FOR THE PAYMENT OF INTERESTS ON ALL DEBTS 
 AND FOR THEIR REDEMPTION. 
 
 Guarantee of "Bolivia Railway" Bonds Bs. 750,000 
 
 Guarantee of "Cochabamba Light & Power" Bonds 225,000 
 
 For interest on, and redemption of other loans 3,360,620 
 
 Total Bs. 4,335,620 
 
 As the national revenues amount to a total of 22,018,874 Bolivianos, 
 the above e.xpenditure represents less than 20'^f of the same, which is 
 certainly a very significant proportion. 
 
 18
 
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 19
 
 The floating debt invested in various public works and 
 for public service purposes, consists of loans made by the 
 national banks, amountinj^ to Bs. 5,687,154,80 and loans 
 obtained from various other parties, amounting to Bs. 1,014,- 
 973,82, making a total of 6,702,128.62. 
 
 BANKS OF ISSUE 
 
 On December 31st, 1913, four Banks of issue were in 
 operation, with an authorized capital stock of Bs. 75,000,000 
 of which 40,962,500 where paid up, divided as follows: 
 
 Banco de la Nación Boliviana Bs. 25.000,000 
 
 Banco Mercantil 25.000.000 
 
 Banco Nacional de Bolivia 12.500,000 
 
 Banco Francisco Argadoña 12.500,000 
 
 Total Bs. 75.000,000 
 
 The paid up capital is as follows: 
 
 Banco de la Nación Boliviana Bs. 18.962.500 
 
 Banco Mercantil 10.000,000 
 
 Banco Nacional de Bolivia 8.000,000 
 
 Banco Francisco Argandoña 4.000,000 
 
 Total Bs. 40.962,500 
 
 The profits for the half yearlv term expiring December 
 31st, 1913, amounted to Bs. 1,527,371,06. 
 
 The right vouchsafed by Law to issue notes for a 
 maximum amount of 150 per cent of the paid up capital stock 
 of the four Banks, represents a total of Bs. 61,443,750, only 
 Bs. 32,321,305 of which have been issued by the said Banks. 
 
 The gold reserve amounted to Bs. 15,587,912.50 and the 
 amount of coined gold on hand was consequently in excess 
 of the 40% required by Law. 
 
 Under an Act recently passed and relating to the organ- 
 ization of the Banco de la Nación Boliviana, the said Bank 
 has been granted the exclusive right to issue notes, the Banco 
 Nacional de Bolivia, Banco Mercantil and Banco Francisco 
 Argandoña having been deprived of such right, with the 
 provision that they must redeem the notes issued by them 
 within five terms of six months each, commencing on January 
 1st, 1913. 
 
 20
 
 The only foreign Bank established in the country at the 
 present time (but not empowered to issue notes) is the Banco 
 Alemán Transatlántico, having a capital of Bs. 5,278,557. 
 
 The annual dividends declared by the Banks vary 
 between 10% and 20%;. 
 
 MORTAGE BANKS 
 
 Four institutions doing business in the country confine 
 themselves exclusively to loans on real estate, against which 
 they issue mortgage bonds. The Banks in question are the 
 following: 
 
 Crédito Hipotecario de Bolivia. 
 
 Banco Hipotecario Nacional. 
 
 Banco Hipotecario Garantizador de Valores. 
 
 Banco Hipotecario Mercantil. 
 
 Their total capital stock amounted on June 30th, 1913, 
 to Bs. 11,597,628, and the paid up capital stock to Bs. 865,000. 
 The amount of the profits on June 30th, 1914, was Bs. 
 87,322.22 divided as follows: The first mentioned Bank, 
 31,801.84; the second, Bs. 35,109.10; the third, Bs. 16,272.02, 
 and the last mentioned Bank, 4,139.26. 
 
 CURRENCY SYSTEM 
 
 The gold standard was adopted by Law on December 
 5th, 1908, and the English sovereign and the Peruvian pound 
 are legal tender for the payment of debts at the fixed rate 
 of exchange of Bs. 12.50 each. 
 
 The plan prepared by the Executive for the coining of 
 national currency of various denominations, is subject to the 
 decision of the next legislature. 
 
 TIN 
 
 The production of Tin in Bolivia has constantly in- 
 creased, and is bound to increase further on a large scale. 
 At the present time it amounts to about one fourth of the 
 total output of the world, being surpassed only by the produc- 
 tion of the Straits Settlements which has remained stationary 
 for several years, with an evident tendency to decrease. 
 
 The following Table shows the production in metric 
 tons of 2,204,6 lbs. and the average market price per ton in 
 London. 
 
 21
 
 
 Bolivia 
 
 Straits 
 
 World i 
 
 Average 
 
 Years 
 
 Settlements 
 
 Production ' 
 
 Price 
 
 1904 
 
 13,750 
 
 61,838 
 
 103,100 
 
 £126.14. 8 
 
 1905 
 
 15,023 
 
 59.500 
 
 102,400 
 
 143. 1. 8 
 
 1906 
 
 17,447 
 
 59,375 
 
 104.400 
 
 180.12.11 
 
 1907 
 
 16.858 
 
 56,550 
 
 102.400 
 
 172.12. 9 
 
 1908 
 
 19.077 
 
 63,690 
 
 113.400 
 
 133. 2. 6 
 
 1909 
 
 20.890 
 
 61.540 
 
 113,100 
 
 134.15. 6 
 
 1910 
 
 24,539 
 
 57,490 
 
 114,800 
 
 156. 6. 2 
 
 1911 
 
 25,628 
 
 57,944 
 
 117,600 
 
 192. 7. I 
 
 1912 
 
 25,100 
 
 61,528 
 
 124.700 
 
 209. 8. 5 
 
 1913 
 
 28,500 
 
 65,640 
 
 128,900 
 
 201.13. 7 
 
 The consumption in the United States in metric tons and 
 the average price during the same period, has been : 
 
 Years 
 
 
 
 U. S. 
 
 Cy. 
 
 
 1904 
 
 37,400 
 
 27.96 
 
 cents 
 
 per 
 
 pound 
 
 1905 
 
 40.800 
 
 31.36 
 
 
 
 ( 
 
 1906 
 
 43,700 
 
 39.82 
 
 
 
 ' 
 
 1907 
 
 39,700 
 
 38.17 
 
 
 
 ' 
 
 1908 
 
 32.800 
 
 29.46 
 
 
 
 ' 
 
 1909 
 
 42.800 
 
 29.72 
 
 
 
 ' 
 
 1910 
 
 49,900 
 
 44.25 
 
 
 
 ' 
 
 1911 
 
 48,000 
 
 34.12 
 
 
 
 ' 
 
 1912 
 
 51,700 
 
 42.28 
 
 
 
 ' 
 
 1913 
 
 45,000 
 
 46.10 
 
 
 
 ' 
 
 The official statistics of Bolivia give the following figures 
 for the exports of ''barrilla", the term commonly applied to 
 tin concentrates for export, containing from 50% to 70% Tin: 
 
 Years 
 
 Metric Tons 
 
 1897 
 
 3,749.5 
 
 1898 
 
 4,396.0 
 
 ■ 1899 
 
 9,279.4 
 
 1900 
 
 16,234.2 
 
 1901 
 
 21,915.9 
 
 1902 
 
 17,608.3 
 
 1903 
 
 28,131.4 
 
 1904 
 
 20,691.9 
 
 1905 
 
 26,912.0 
 
 1906 
 
 39.526.1 
 
 1907 
 
 31,323.7 
 
 1908 
 
 32.541.6 
 
 1909 
 
 35.566.4 
 
 1910 
 
 38.548.1 
 
 1911 
 
 39.840.6 
 
 1912 
 
 38.614.0 
 
 1913 
 
 44.594.0 
 
 22
 
 GENERAL TABLE SHOWING THE OUTPUT OF THE BOLIVIAN MINING 
 INDUSTRY FR THE YEAR 1913. 
 
 Metals 
 
 Tin 
 
 Silver . . . 
 Copper . . 
 Bismuth . 
 Tungsten 
 Zinc . . . . 
 Lead . . . . 
 Antimony 
 
 tr.i Value in 
 
 ^ Bolivianos 
 
 44,596.749 67.784,377 
 
 81,289 2,784.354 
 
 4.019,635 2.773.546 
 
 422.484 ' 2.092,925 
 
 282.597 \ 415,417 
 
 7.367,463 I 223,150 
 
 1,765.296 I 353,059 
 
 62,050 1 12,410 
 
 RUBBER 
 
 We reprint below a few interesting: paragraphs from the 
 official report for 1914 of the General Collector of Customs: 
 
 "This vaulable export article which for many years has been 
 one of the largest sources of revenue for the Treasury, as well 
 as a contributory factor towards the development of the north- 
 western and eastern districts of our country, has suffered — more 
 particularly since 1912 — a complete setback with respect to the 
 ruling market prices in Europe, their decline being exclusively 
 due to the baneful competition of the similar product now being 
 imported from the plantations established many years ago, princi- 
 pally by English manufacturers, in the British Colonies in Asia 
 and Africa. 
 
 "The oldest statistical figures relating to the Bolivian export 
 trade in this article, date from the year 1890, and it appears 
 from the available data, carefully verified by the corresponding 
 section of this Office, that the shipments during the said year 
 amounted to 294,000 kilograms. The exports of this product 
 subsequently increased gradually until 1910, when they reached 
 a total of 3,465,063 kilograms. This was followed by a decrease 
 in shipments, continuing until 1905, for which year the minimum 
 figures of 1,468,233 kilograms were recorded. Beginning with 
 the year 1906, however, the tide turned and exports increased 
 again until 1913, when they attained the enormous amount of 
 5,143 metric tons, the highest figure recorded during the 24 years 
 covered by our statistical data". 
 
 Rubber being one of our principal export products, I consider 
 it of the utmost importance to record in the following table the 
 trade fluctuations to which this article has been subject during 
 
 23
 
 the aforesaid term of 24 years, and which tend to confirm the 
 foregoing statements. 
 
 Year 
 
 1 
 Kilograms 1 
 
 Year 
 
 Kilograms 
 
 Year 
 
 Kilograms 
 
 1890 
 
 294.000 
 
 1898 
 
 3.155,955 
 
 1906 
 
 1.929.608 
 
 1891 
 
 345.000 
 
 1899 
 
 2.664,091 
 
 1907 
 
 1.830,513 
 
 1892 
 
 363,430 
 
 1900 
 
 3.496,240 
 
 1908 
 
 2.606.591 
 
 1893 
 
 394.418 
 
 1901 
 
 3.465.063 
 
 1909 
 
 3.052,453 
 
 1894 
 
 632,500 
 
 1902 
 
 1.092.993 
 
 1910 
 
 3.117,650 
 
 1895 
 
 820,410 
 
 1903 
 
 1.745,324 
 
 1911 
 
 3.645,551 
 
 1896 
 
 1.140,712 i 
 
 1904 
 
 1.571,128 
 
 1912 
 
 4.079,828 
 
 1897 
 
 1.674,716 ! 
 
 1905 
 
 1 1.468,233 
 
 1913 
 
 5.143,214 
 
 ARTS AND MANUFACTURES 
 
 As previously stated, mining is the only industry that 
 has been developed on any considerable scale. In a primitive 
 way, there is, in truth, some manufacturing of products for 
 domestic consumption, such as wines, beer, spirituous liquors, 
 cigarettes, matches, stearine candles, soap, boots and shoes, 
 domestic wares, chocolate, crackers and biscuits, etc., but 
 there still remains ample room for improvement in enterprises 
 of this description. 
 
 Agriculture and cattle raising offer great inducements 
 to capitalists. The lands are now lying waste in consequence 
 of the small local population, resulting in insignificant 
 consumption. 
 
 For the encouragement of settlers, the legislature of 
 Bolivia enacted the law of October 13th, 1905, providing that 
 all vacant lands are Government property and may be ac- 
 quired by purchase or otherwise, in accordance with special 
 regulations. The unit of land measurement is one hectare 
 (2.47 acres). All individuals or parties are entitled to 
 acquire land up to a maximum area of 20,000 hectares, 
 against payment in cash of 10 cents Bolivian Currency (4c. 
 U. S. Cy.) per hectare for ordinary land, and of one Boliviano 
 (40c. U. S. Gold Cy.) for lands on which rubber trees are 
 found. The purchaser is under obligation to settle at least 
 one family on each area of one thousand hectares. 
 
 24
 
 CRUDE OIL 
 
 The oil wells of Bolivia, supplying a splendid fuel, are 
 one of her most productive, if not most immense sources of 
 wealth, in view of the increasing demand for this material. 
 The reports of competent engineers, commissioned by foreign 
 capitalists, show that there are enormous stores of crude oil, 
 extending from Brazil through Bolivia to the Argentine, so 
 vast and productive that they describe them as "the largest 
 in the world." With respect to this industry as well as 
 agriculture, development is dependent on the construction of 
 railways that will provide convenient access to the Atlantic 
 coast. To this end, the construction of the planned railway 
 line between Santa Cruz and Puerto Suárez on the Paraguay 
 river, may be considered as one of the most urgent necessities. 
 
 RAILWAYS 
 
 
 Kilometres 
 
 Miles 
 
 Actually in operation (1913) .... 
 
 1,284 
 
 803 
 
 In course of construction 
 
 613 
 
 383 
 
 Projected, with plans completed . . 
 
 116 
 
 485 
 
 Projected, plans in preparation . . 
 
 2,123 
 
 1,327 
 
 Proposed lines, plans not as yet 
 
 
 
 commenced 
 
 450 
 
 281 
 
 Total 
 
 5,246 
 
 3,279 
 
 25
 
 ROUTES TO BOLIVIA 
 
 {Rcjviiit [rum a pciiiiphlct f^iiblislicd by llie Legation of Bolivia 
 in U'iishi¡i}¡toii). 
 
 By ¡Vay of Moliendo : 
 
 From Moliendo to Puno (Pern) by railway, 324 miles, 
 time 22 honrs ; from Pnno to Gnayaqui (Bolivia) by steamer 
 crossing- Lake Titacaca at an elevation of 12,000 feet al)ove 
 sea level, 180 miles., time 16 hours ; from Guayaqui to La Paz, 
 59 miles by railway, time 3 hours, l)eino- a total distance of 
 563 miles, covered in three and one half days. 
 
 By Way of Arica ^ 
 
 From Arica (Chile) to La Paz, a distance of 337 miles, 
 covered by railway in 18 hours, but the time of travel on the 
 down grade from La Paz to Arica will shortly be reduced 
 to 12 hours, and to 14 hours on the up grade in the opposite 
 direction. This line is equipped with coaches of the American 
 Pullman car type, while European sleeping cars are in service 
 on all the other lines. 
 
 By Way of Anfofai:;asfa. 
 
 The total distance of 573 miles between Antofagasta 
 (Chile) and Oruro (Bolivia) is covered in two nights and 
 one day. 
 
 ^3' Way of flic Argentine Republic. 
 
 From Buenos Aires by railway to the Bolivian border 
 town of La Guiaca. A railway having its terminal at that 
 city and extending through Tupiza to Uyuni, a station on the 
 Antofagasta-Oruro line, is now in course of construction 
 and will make it possible to travel from Buenos Aires to La 
 Paz in about four days. 
 
 Bolivia is blessed with exceptionally extensive, river 
 navigation facilities, which immensely enhance her means of 
 transportation and communication, the total length of her 
 navigable rivers being about 12,000 miles. 
 
 27
 
 Bv íf'av of Aiuarjoiias. 
 
 The distance from Para (Brazil) to Villa Bella is 2,152 
 miles, and to Puerto Cobija (on the Acra Eiver) 2,533 miles, 
 the time of travel over each of these routes being- 216 and 
 244 hours respectively. Practically the entire journey is 
 made by steamer, but on the trip to Villa Bella the steamer 
 stops at Porto Velho, and passenj^ers and goods are trans- 
 ferred to the Madeira-Mamoré railway, for transportation 
 over a distance of 200 miles. 
 
 ^3' Way of the Farcii^iiay River. 
 
 Ascending the Paraguay river from Buenos Aires. 
 Puerto Pacheco is reached after travelling a distance of 1553 
 miles The journey is then continued to Puerto Suarez, 188 
 miles distant, and thence to La Gaiba, 167 miles further 
 up stream. 
 
 Another route of travel from Buenos Aires is on the 
 Bermejo River, on which steamers navigate between Esquina 
 Grande (Bolivia) and Rivadavia (Argentina). 
 
 MOST DIRECT ROUTES 
 
 FROM THE UNITED STATES TO BOLIVIA, 
 
 AND EXPENSE OF TRAVEL. 
 
 First class steamer passage: 
 
 From New York to Panama, 7 days $75.00 
 
 From New Orleans to Panama, 5 days 55.00 
 
 From San Francisco to Panama, 25 days 120.00 
 
 Te second part of the journey is made l)y stramer from 
 Panama to Arica, fare $120. — this distance being covered 
 in 9 days by the fast steamer service connecting with the 
 New York and New Orleans steamers. 
 
 The final section of the trip is made by railway from 
 Arica in 14 hours, the fare being $18. — inclusive of Pull- 
 man berth. 
 
 28
 
 IMMIGRATION LAW. 
 
 All persons not over 60 years of age and establishing 
 their good moral character, are vouchsafed the following 
 privileges under the Law: The rigth of admittance to the 
 country and of transportation to their place of destination 
 over the roads and railways of the country. These privileges 
 also extend to the wife and children of any such person, and 
 include free transportation of their baggage, the right to 
 occupy public lands for agricultural purposes and cattle 
 raising, as well as for any other useful industrial purposes. 
 
 Each immigrant may secure 50 hectares (about 120 
 acres) of land, the price of w^hich is fixed by law at 10 
 centavos (4 cents Gold Cy.) per hectare. Children over 
 14 years of age may secure an additional area of 25 hectares 
 (about 60 acres). Immigrants may at their option pay 
 either in cash or in annual instalments extending over 5 years, 
 in which latter case interest on the purchase price of the land 
 is charged at the rate of 5% per annum. Immigrants may 
 select within the designated district the land they desire to 
 purchase. Children over 18 years of age are entitled to 
 purchase separate sections of land. No immigrant may 
 become the owner of more than three parcels or sections, 
 either by purchase or otherwise. In case immigrants acquire 
 land against payment in instalments, they are prohibited 
 from selling or otherwise transferring such property and 
 from mortgaging the same, the State being the holder oí 
 a first mortgage on such land. 
 
 PATENT LAWS. 
 
 All inventors are vouchsafed the full and undisturbed 
 enjoyment of the benefits of their invention, provided the 
 same are not contrary to public order and good morals. 
 
 The discovery of any novel methods or processes for 
 the improvement of any art or industry, is likewise considered 
 to constitute an invention. 
 
 Contrivances devised merely for the purpose of modi- 
 fying the propositions of known devices, or the production 
 of articles of merely ornamental character, will not be 
 considered to constitute inventions. 
 
 29
 
 The Government reserves the ri^'ht to acquire 1w pur- 
 chase the secret of any useful invention, as a measure of 
 pulilic utility. 
 
 Patents will he i^ranted for a term of fifteen years onl)'-. 
 
 TRADE-MARKS. 
 
 The right of exclusive use of a trade-mark may he 
 secured by application to the Department of Agriculture, 
 Commerce, Industry, Development, etc. (Ministerio de 
 Fomento), against an annual payment of 5 Bolivianos. 
 Trade-mark rights may be secured on cuts or engravings, 
 monograms, vignettes, embossed prints, letters and numbers 
 with special designs, labels and wrappers for merchandise 
 and any and all other marks intended to distinguish the same 
 from other manufactured articles. The trade-mark, when 
 duly secured, becomes the exclusive property of the manufac- 
 turer or merchant who obtained it, in whom is vested the 
 right to oppose its use by other parties. The owner of a 
 trade-mark is entitled to appeal to the courts of Law for 
 protection in the exercise of his right of exclusive use, and 
 to assign such trade-mark to third parties. 
 
 Assignments of trade-marks must be recorded in the 
 proper office. The Treasury receipt proving the payment 
 of the tax must be attached to all applications. 
 
 Specimens of the marks or designs are filed with the 
 records of the Notarial Office of the Treasury. The in- 
 fringement or imitation of trade-marks is punishable by the 
 penalty of a fine of 20 to 200 Bolivianos ($8 to $80), in 
 addition to the penalties provided for in Art. 302 of the 
 Penal Code. 
 
 MINING CODE. 
 
 The Bolivian mining laws are exceedingly liberal, as 
 they vouchsafe to all aliens the same rights and privileges 
 enjoyed by citizens of the country. Any person legally 
 capable of contracting obligations may apply for any number 
 of mining claims, not exceeding thirty. The area of each 
 claim is fixed by law at one hectare or 10,000 square metres, 
 equal to about two and one half acres, measured in anv 
 
 30
 
 direction at the option of the applicant, and the claim extends 
 to an unlimited depth. 
 
 The mode of proceeding prescribed by Law is as follows : 
 Any person discovering deposits, placers, lodes or veins, 
 must file the proper application with the Prefect of the 
 Department in which the claim or claims a])plied for 
 is or are located, and attach to such ap])lication a sketch 
 or map plainly showing the location of the boundaries of the 
 claim or claims, to which the application refers, as well as 
 the location of the same with regard to adjoining mining 
 claims. The application must be made out on stamped paper 
 of the denomination of 10 Bolivianos ($4.00). 
 
 The Prefect, after having caused the application to be 
 published in the newspapers during a stated period, for the 
 purpose of ascertaining whether opposition to the same is 
 entered by third parties, shall issue decree of concession, 
 and the ownership of the mining claims shall pass to the 
 applicant, subject to an annual payment of 5 Bolivianos 
 ($2.00) for each claim. 
 
 Applications for mining claims are considered as having 
 been abandoned in case of failure to have such claims 
 surveyed and staked out within a term of 70 days from the 
 date of first publication. Any person may file a denouncement 
 of the abandonment of an application for mining claims, 
 requesting that the same be adjudicated, whenever the owner 
 has failed to comply with the provisions of the law governing 
 such matter, in case of failure of such owner to pay the 
 corresponding annual tax or license fee. 
 
 No special permit is required for preliminary prospec- 
 ting operations, and any one is at liberty to undertake the 
 same, upon giving due notice to the authorities of the 
 District in which such prospecting is to be done. Mining 
 machinery and implements may be imported into the country 
 free of import duty. 
 
 CUSTOMS DEPARTMENT. 
 
 Although Bolivia has at the present time no outlet on 
 any sea in her own dominion, she has entered into various 
 treaties with the surrounding countries, for the purpose of 
 being able to exercise her right of free transit through 
 foreign territory. In view of the ample facilities afforded 
 
 31
 
 by these international agreements, the disadvantages re- 
 sulting from the lack of a seaport have been remedied as far 
 as possible. 
 
 For the purpose of providing the commercial interests 
 of the country with the most diversified means for the trans- 
 action of foreign trade, the Government has established 
 Customs Agencies at the ports of Moliendo, Antofagasta 
 and Arica, the first named being in Peruvian and the two 
 last mentioned on Chilean territory, and has placed the 
 Bolivian Consuls in charge of similar agencies in Para, 
 Rosario, Puerto Velho and Corumbá. 
 
 The following list shows plainly the distribution of the 
 Bolivian Custom Houses over the different sections of the 
 country : 
 
 Custom Houses for the: 
 
 Northern District La Paz 
 
 Central '' Oruro 
 
 Southwestern " Uyuni 
 
 Southern " Villazón (La Quiaca) 
 
 Southeastern " Yacuiba 
 
 Eastern " Puerto Suárez 
 
 Northeastern " Villa Bella, Cobija & Manoa, (Abuná) 
 
 Consular Invoices. 
 
 The amounts to be collected as Consular Fees for the 
 certification of invoices, are as follows: 
 
 Consular invoices amounting to less than $200. . .$3.00 
 
 " $200 and over 2% 
 
 Bills of Lading are certified free of charge. 
 The Bolivian consulates are the only offices authorized 
 to sell Consular Invoice Blanks, and they are issued -Jo 
 applicants at the following rates: 
 
 Per set of 4 copies $0.75 
 
 " 5 '' 0.90 
 
 The name of the Custom House through which the 
 goods are to pass must be stated in the Consular invoice. 
 
 32
 
 Five copies are required for shipments via Moliendo, 
 and four copies for such as are to pass through any of the 
 other Custom Houses. 
 
 Fire arms, cartridges, etc. may be shipped wihtout 
 special permit issued by the Consul or Consular Agent. 
 
 The Consular Invoice must be made out in the Spanish 
 language as a necessary requirement. 
 
 Furthermore, all Consular Invoices must contain the 
 following declarations : 
 
 1. The name of the port of destination of the mer- 
 chandise. 
 
 2. The name of the person, firm or corporation to whom 
 the merchandise is consigned. 
 
 3. The gross and net weights in kilograms ( 1 kilogram 
 =2.2046 lbs.) 
 
 4. The contents of the packages, to be authenticated by 
 the presentation of commercial invoices. 
 
 5. An affirmation of the shippers that the contents as 
 stated in the invoices are identical with the actual 
 contents of the packages. 
 
 In order to avoid the possibility of customs duty being 
 collected twice on the same goods, each package must bear 
 in large letters the inscription "EN TRÁNSITO A BO- 
 LIVIA". 
 
 COMMERCIAL TRAVELLING AGENTS. 
 
 (Travelling salesmen) 
 
 Commercial Agents of this description are subject to 
 the payment of municipal taxes in all the cities in which they 
 do business, in accordance with their respective tax rates. 
 The tax in La Paz varies between 200 and 300 Bolivianos 
 ($80.00 and $120.00); in Cochabamba it amounts to LOOO 
 Bolivianos (S400.00) ; in Oruro to 250 Bolivianos ($100.00) ; 
 in Potosi to 200 Bolivianos ($80.00) ; in Sucre to 300 Boli- 
 vianos ($120.00) ; in Uyuni to 250 Bolivianos ($100.00) ; 
 in Santa Cruz it varies between 400 and 800 Bolivianos 
 ($160 to $320), and the tax in Tarija is 200 Bolivianos 
 ($80.00). As these taxes are paid in to the exchequer of 
 
 33
 
 holders of concessions for the collection of taxes, they are 
 inclined to offer inducements to commercial agents who 
 merely furnish security and deposit with the Custom Houses 
 for the amount of the samples they succeed in selling. 
 
 MONOPOLIES. 
 
 Bolivia has monopolies on alcohol, tobacco and matches. 
 The first mentioned monopoly has reduced the sale of spirit- 
 uous liquors, while those on the two last mentioned articles 
 have resulted in the establishment of new national industries. 
 The revenues derived by the Treasury from the alcohol and 
 tobacco monopolies amount to over 2,000,000 Bolivianos. 
 
 DIPLOMATIC AND CONSULAR AGENTS 
 OF BOLIVIA IN THE UNITED STATES. 
 
 Hon. Ignacio Calderón, Envoy Extraordinary and 
 Minister Plenipotentiary at Washington. 
 
 Cónsul General: Adolfo Balltvián. 
 
 Consuls : 
 
 Wilfred Schoff Esq Philadelphia, Pa. 
 
 Edwin H. Heath Esq Kansas City 
 
 Federico Harmwel Esq Chicago, 111. 
 
 Raymond M. Glaken Esq Baltimore, Md. 
 
 Arthur P. Cushing Esq Boston, Mass. 
 
 Carlos Sanjinés Esq San Francisco, Cal. 
 
 Juan Argote Esq New Orleans, La. 
 
 Vice Consuls'. 
 
 Tohn D. Leitch Esq Norfolk, Va. 
 
 T. G. Gonigal Mobile, Ala. 
 
 The Hon. John D. O. Rear is accredited to the Bolivian 
 Government in La Paz in the capacity of Envoy Extraordi- 
 nary and jNIinister Plenipotentiary of The United States. 
 
 34
 
 With the exception of the Secretary of Legation in La 
 Paz, who also exercises the Consular functions, the United 
 States has no Consular Agent in any other part of Bolivia. 
 
 PAN AMERICAN CURRENCY. 
 
 The interesting proposition to create a Pan American 
 currency has been mentioned in the Bulletins of the Pan 
 American Union, and the realization of this plan appears 
 desiderable to us. The report states that the Hon. Horatio 
 G. Knowles, Ex-Minister of the United States to Bolivia, 
 has suggested the idea to have all the American countries 
 undertake the coinage of gold currency of uniform fineness, 
 for the purpose of making it legal tender in all the different 
 states of the western hemisphere. He proposed that the 
 coins in question should bear on one face two images, repre- 
 senting the native race and American womanhood, and on 
 the reverse the arms of each of the American Republics, and 
 that they be made to replace the British Sovereign, now so 
 generally used. 
 
 In the issue of the Bulletin of the said Union for the 
 current month, this idea is amplified by Mr. Horatio Cassel- 
 berry of Philadelphia, who suggests that the said coin, while 
 identical in shape and design for all these countries, should 
 not represent the same value in all of them, because in his 
 opinion difficulties would be apt to arise with regard to the 
 exchange of the said currency which would be legal tender 
 in 21 countries, in each of which the legal provisions relating 
 to the currency are different, unless all of them should previ- 
 ously agree upon the adoption of a uniform system. But 
 however this may be, we think it would be worth while to 
 make the foregoing suggestions a subject of debate on this 
 present occasion. 
 
 METRIC SYSTEM OF WEIGHTS AND MEASURES. 
 
 It may be expedient to recall in this connection the 
 suggestions made to adopt the metric system of measurements 
 and weights in the United States, in order to facilitate cal- 
 culations and business transactions, and to conform to the 
 system generally adopted by the American countries. 
 
 35
 
 A FEW GENERAL SUGGESTIONS REGARDING 
 
 THE NATURE OF THE ENTERPRISES IN 
 
 WHICH TFIE UNITED STATES CAPITAL 
 
 MIGHT BE INVESTED TO GOOD 
 
 ADVANTAGE IN BOLIVIA. 
 
 United States Banks in Bolivia. 
 
 Notwithstanding" the fact that there is a general demand 
 for the estabhshnient of such banks in all the Latin American 
 countries, and while fully aware that response to this demand 
 would prove theoretically beneficial, .we still adhere to our 
 personal opinion, that even under the most favorable condi- 
 tions the volume of transactions constituting banking opera- 
 tions in the proper sense of the term, such as loans, the 
 discounting of commercial paper, deposits, etc. (i. e. the bank- 
 ing business as now conducted by similar national institu- 
 tions) would not be sufficient to constitute a decisive factor 
 in favor of their organization. In our judgment the actual 
 requirements of Latin America call for an extension of the 
 present banking connections on an efficient basis, and this 
 present convention offers a favorable opportunity for pro- 
 moting the extension of such reciprocal relations between 
 American banks. 
 
 Men prominent in the financial world of this country 
 have expressed the opinion that "Banks are not established 
 in the natural order of things for the purpose of creating 
 business, but for managing, developing and extending such 
 business as has been previously established." This opinion 
 is based on the methods followed by British, German and 
 Belgian capital in South America, where the financiers of 
 these European countries began by investing their funds 
 in railways, manufacturing and other enterprises, while 
 their banking interests only established South American 
 branches later on, and practically merely for attending to 
 the foreign business of their own countries. The principal 
 and i)rimary requirement of South America is the liberal 
 investment of United States capital, and when that has been 
 fulfilled, a vast and profitable field of operations will have 
 been opened up for the banking interests of this country. 
 
 36
 
 Among concurring opinions regarding these matters we 
 may quote the following statement of Mr. F. Abbot Goodhue 
 of Boston: 
 
 The wisest plan at the present time is to make more 
 loans to South America, instead of opening branches of bank- 
 ing institutions. Mone}^ expended for loans will be pro- 
 fitabh' invested, business will become prosperous, and we 
 shall thus open the way for the establishment of banks." 
 Similar opinions are now being adopted and maintained by 
 financial authorities, and the conviction is gaining ground 
 that it is an absolutely necessary requirement for the South 
 American countries and business interests to obtain credits 
 which will enable them to pay for the supplies which this 
 countrv sells them. This was actually the method followed 
 by the European countries, which until recently were given 
 the preference. 1)ecause the Old World money markets were 
 loaning at cheaper rates and were in a position to compete to 
 good advantage against the delivery charges, rates of interest, 
 etc. demanded in the United States. This may be explained 
 by the fact that the European countries are much older, and 
 that the mass of their population has been able to accumulate 
 ample savings, such as are practically unheard of in the 
 United States, with the result that they have an abundance 
 of available funds to lend. Moreover, the necessary invest- 
 ments for railways and other public enterprises have already 
 been made in the countries of Europe, and as no further funds 
 are required for such purposes, their people are naturally 
 induced to look aliroad for chances to invest their unproduc- 
 tive capital, and consequently satisfied to get moderate 
 returns from the same. 
 
 The present change in the direction in which South 
 America must look for her supplies, makes it imperative, 
 that 1)usiness be conducted on the above indicated basis, and 
 in this connection it becomes necessary of course to provide 
 sufficient security for the capital to be invested — by giving 
 the proper guarantees which Bolivia is fortunately in a posi- 
 tion to offer to a satisfactory extent. 
 
 What we need, most of all, are financial organizations 
 that will uplift our mining industry, agriculture, arts, manu- 
 factures, immigration, etc., by establishing several special 
 banks, as well as factories, an agricultural loan and credit 
 system, and similar institutions, all of which require through 
 
 37
 
 investigation, while we are compelled to confine ourselves on 
 this occasion to a few superficial remarks. 
 
 TIN AND COPPER SMELTING WORKS. 
 
 When the European war broke out, and Bolivia was 
 prevented from exporting" these ores to Europe through the 
 usual channels, the Bolivian Government made the most stre- 
 nuous efforts to solve this exceedingly important problem. 
 
 The ores could not be shipped to this country, because 
 there were no smelting works in the United States available 
 for the purpose. To have them smelted and refined by 
 private concerns would have been a risky undertaking, as 
 it might reasonably be excepted that the temporarily sus- 
 pended relations Ijetween the mine owners and the British 
 and German smelting works would be resumed upon the 
 conclusion of the war. 
 
 In view of this emergency the Consulate General of Bo- 
 livia in New York suceeded in interesting capitalists in 
 this country in the matter. These parties submitted to the 
 Bolivian Government a proposition based on the suggestion 
 that a smelting works for the purposes in question should 
 be erected and installed in the United States, for account of 
 the Government of Bolivia, as being the only available means 
 for making sure that supplies of ore W'Ould continue to be 
 shipped to these Government w^orks, even after the termina- 
 tion of the war, by giving the Bolivian mine owners an 
 interest in the proportional quantity of ore supplied by them 
 to the Smelting Works, following the cooperative plan 
 adopted in Austria and other countries. The bankers offered 
 to advance the funds required for the erection and complete 
 installation of the plant, and to take part in the management, 
 under the strict supervision that was to be exercised by the 
 Bolivian Government. Among other matters, which it would' 
 be idle to mention on this occasion, it was planned that the 
 Smelting Works were to supply this country wnth about 
 30,000 tons of block tin, representing an amount two thirds 
 of its annual consumption, and that Bolivia was thus to 
 provide a sum in excess of 20,000,000, to be used for sub- 
 stituting New^ York exchange for London exchange, and 
 eventually to be invested in export goods. 
 
 The Bolivian Government arrived at the conclusion that 
 
 38
 
 the proposition should not be accepted, on the i^round that 
 "it would induce the State to transgress beyond the scope 
 of its proper functions, and thus to become an operator en- 
 gaged in the metallurgical industry," 
 
 On the other hand, our Government, responding to an 
 evident national desire, has for some time been considering 
 the erection and installation of an electric smelting works 
 in its own territory, in consideration of the fact, that while 
 there is an abundance of available hydraulic power, the supply 
 of coal is scarce, and its importation would place a plant 
 operated by fuel combustion at a disadvantage. 
 
 In support of these plans on our part, we have caused 
 tests to be made in this country, with the following results : 
 Bolivian tin concentrates ("barrilla") tested in New Jersey, 
 produced an output of 66.96%, and when smelted at the 
 Pittsburgh Electric Smelting Works, the product was block 
 tin 98.75% pure (capable of being further refined), with a 
 residue of 1.89% slag. 
 
 These recently obtained data have been transmitted, so 
 as to make them available in case they are considered of 
 sufficient importance. 
 
 This matter has meanwhile aroused very great interest, 
 and it appears from press reports that the "Compañía Esta- 
 ñífera de Llallagua," owned by Chilean capitalists, but 
 having its property in Bolivia, has organized a company 
 for the erection and installation of a smelting works on the 
 Pacific Coast, at the port of Arica or Mejillones. 
 
 We beg to call the attention of parties in the United 
 States, interested in such enterprises, to the foregoing 
 particulars. In case any of them should be inclined to take 
 up this proposition, the only practical way to proceed would 
 be, in our judgment, to acquire the ownership of tin mines 
 in Bolivia, by means of an efficiently constituted organization, 
 and in such manner that the Bolivian owners would still 
 retain an interest in the enterprise. In this manner (provided 
 of course it should for some reason or other prove impractic- 
 able to instal an electric smelting w^orks in Bolivia) a plant 
 could easily be erected and installed in the United States, 
 as it would have the output of the Company's own mines 
 to work on, and therefore be on a solid basis, without any 
 risk of the supplies of material being turned back into their 
 former channels, upon the conclusion of the European war. 
 
 39
 
 THE MADEIRA-MAMORÉ RAILWAY. 
 
 Although on Brazilian soil, this means of communication 
 is of preeminent importance for Bolivia, as it provides her 
 with a means of access to, and egress from the Atlantic, 
 and has opened up to human enterprise vast territories 
 abounding in natural wealth seldom equalled. In this con- 
 nection it will be sufficient to point out, that the highest 
 grade rubber known is gathered in these districts, which 
 also supply many other products that are now being gradually 
 discovered and worked. 
 
 The fondest hopes and expectations of Bolivia have for 
 time immemorial been centered in this railway, and it was 
 for this reason that she consented to cede to Brazil her 
 extensive and luxuriant territory in El Acre, placing the 
 fullest confidence in the material advance and other benefits 
 which the country would derive from this railway, which 
 Brazil bound herself to construct. She has loyally fulfilled 
 this obligation, nowithstanding excessive financial sacrifices, 
 far surpassing the estimated cost. 
 
 The Company that undertook the construction of the 
 railway was incorporated under the laws of Maine, and 
 became involved in financial difficulties which do not call for 
 discussion at this time, with the result that the administration 
 of its affairs has recently been placed in the hands of 
 Trustees. 
 
 Inasmuch as both Brazil and Bolivia have interests of 
 the utmost importance that are closely connected with the 
 successful operation of the said railway, we venture to point 
 out, that it will be expedient for both countries to exert every 
 possible effort, to the limit of their capacity, with a view to 
 saving the situation and imparting new life to the enterprise, 
 by adequate reorganization, either by interesting capitalists 
 in the United States in an arrangement to be based on a long 
 term lease, or by reorganizing the Company in some way 
 which it is not incumbent upon us to discuss. 
 
 THE YUNGAS RAILWAY. 
 
 The Yungas Provinces, located at a short distance from 
 La Paz, present not only some of the most beautiful landscape 
 panoramas in the world, but also contain an exuberant wealth 
 
 40
 
 of natural products, such as different kinds of wood, fruit, 
 cocoa, etc. For the purpose of opening up an outlet for 
 these products, and of increasing the output, the Bolivian 
 Government is now endeavoring to interest United States 
 capital in the construction of a railway which is to connect 
 the Bolivian metropolis wnth these virgin territories and all 
 their natural wealth. The estimated cost of the railway is 
 only 2,500.000, to be secured by ample guaranties. 
 
 BOLIVIAN p:nterprises 
 
 CROWDING EACH OTHER IN SEEKING THE 
 
 COOPERATION OF UNITED STATES 
 
 CAPITAL. 
 
 Since the European war unexepectedly cast its shadow 
 over the earth, all nations have apparently lived in the hope 
 of being able to redeem at least some of the losses they have 
 suffered, by appealing to this country as the successor in 
 the great financial mission, the burden of which has here- 
 tofore rested on the shoulders of Europe. 
 
 Applicants in ever increasing niunbers have meanwhile 
 presented themselves at the Consulate General of Bolivia in 
 New York, with the request to be placed in touch with 
 capitalists interested in such propositions, for the purpose 
 of calling upon them to undertake various enterprises in 
 the field of mining, agriculture, arts, industries etc. and the 
 proposition has even been made to establish Bolivian business 
 agencies in this city. 
 
 OFFICIAL INFORMATION BUREAUS. 
 
 In ^•iew of this forward movement, it will in our opinion 
 be expedient to establish such sources of reliable information, 
 for the purpose of guiding the judgment of others and pro- 
 tecting to a certain extent the interests of Bolivian business 
 men and manufacturers, as well as of the capitalists of this 
 country, who are in quest of connections and combinations,, 
 that will prove mutually beneficial and profitable. 
 
 41
 
 CONCLUSION. 
 
 Commercial intercourse having- been established for 
 many years between Bolivia and Great Britain, Germany and 
 France, all of which countries preeminently adapted them- 
 selves to existing conditions, by facilitating business inter- 
 change, it was a foregone conclusion that the channels of 
 trade, if guided into different directions, would naturally 
 take their course towards the United States, where they might 
 be expected to meet with a favorable reception. 
 
 In this connection, however, we are confronted by the 
 following problems: 
 
 I. Bolivian commerce, whose funds were either out- 
 standing in F.uro.pe, or derived from liberal European credits, 
 was suddlenly prevented from recovering the former, or from 
 availing itself of the latter in this country. 
 
 II. On the other hand. North American capitalists, 
 commanding abundant funds, for which their own country 
 offered exceedingly profitable chances for investment, and 
 not satisfied wnth the moderate profits which European Capi- 
 tal was content to accept, hesitated to open credits, partly in 
 consequence of ignorance of the conditions and requirements 
 that are the foundation of Bolivian trade. North American 
 manufacturers, while desirous of opening up new markets 
 for their products, do not venture to engage in trials in this 
 direction, for which they have not prepared themselves by 
 prior inquiries into existing conditions, and by a thorough 
 knowledge of the territories in question. 
 
 In my opinion, it is on the basis of these two factors 
 that the difficult task of solving this complicated problem 
 will have to be undertaken. 
 
 A great has been deal said about the practical utility 
 of establishing in South America a system of Banks owned 
 by U. S. capital, a necessity to w^hich this country has re- 
 sponded by authorizing the organization of foreign branches, 
 such as have already been opened in Buenos Aires and Rio 
 de Janeiro. However, while this measure does afford obvious 
 advantages, by facilitating direct commercial interchange on 
 a more economical basis, its adoption will by no means solve 
 
 43
 
 the probelm as such, unless these Banks are wihins^- to come to 
 the rescue of merchants and prockicers, by advancin^^ them 
 funds to tide them over the present crisis, which is undoubt- 
 edly merely transitory. 
 
 Referring- once more to the two principal sources of 
 supply for the Bolivian export trade, I am firmly convinced 
 that the Government of Bolivia will not shrink from any 
 sacrifices required for the advancement and possibly for the 
 regeneration of the rubber extracting industry, whose field 
 is irrefutably the richest and most liberally endowed territory 
 in the world. 
 
 The present decline of this industry is due to the per- 
 severing efforts of the British to uproot it in the Amazon 
 countries, and to transplant it to their possessions in the Far 
 East, which have proven successful in consequence of the 
 application of scientific and economical methods, and there 
 is no reason why they should not likewise be applied to our 
 rubber producing districts with the same determination that 
 will undoubtedly insure good results. To this end it will be 
 imperative to decide on a system for the consolidation of 
 priA'ate property, while avoiding the accumulation of large 
 estates and offering inducements to settlers. 
 
 A further urgent necessity is a reduction in the cost 
 of transportation over the Madeira-Mamoré railway, and the 
 subsidizing of a steamship line to provide a direct steamer 
 service to Porto Velho, one of the terminals of the said 
 railway and a point up to which the river is ready navigable 
 for ocean steamers of a tonnage of three to four thousand 
 tons, thereby establishing a direct traffic route between the 
 said port and those on the western Pacific coast, by way of 
 the Panama canal. 
 
 The foregoing propositions provide a safe and reliable 
 basis for the investment of North American capital for the 
 promotion of rubber tree plantation enterprises which just 
 now — more than at any other time — are a subject well worth 
 careful study and consideration on the part of the practical 
 minds of farsighted men, in view of the serious complications 
 liable to result from the present tremendous clash of arms, 
 whose devastating consequences may even deal a serious 
 blow to the similar industrial enterprises in Asia, to which 
 we have had reference. 
 
 In considering these matters, we must not overlook the 
 
 44
 
 fact that in Bolivia as well as in the other South American 
 countries, it was British, French and Belgian capital that 
 supplied the loans and built the railways, in view of the 
 moderate rates of interest charged and the liberal terms 
 allowed, neither of which appear to satisfy the capitalists of 
 the United States. 
 
 It will be well to bear in mind, moreover, that Bolivia 
 can unfortunately not expect to draw^ immigration from Great 
 Britain, France and the United States, since these countries 
 offer to their population greater inducements at home than 
 could possible be offered them abroad. The Germans, on the 
 other hand, are spreading everywhere, creating industrial 
 centers and commercial associations, admirabh^ organized, 
 which they thus succeed in rendering profitable both for 
 themselves and for the country in which they establish them. 
 Overpopulation of their own country and the consequent dif- 
 ficulty of earning a living at home, cause the Italian and 
 Spanish people to emigrate, and they constitute an element 
 that always meets with a good reception. 
 
 In Bolivia, the increase of her population is a necessity 
 overshadowing all other considerations, and in this connec- 
 tion it w^ill be well to bear in mind the saying that immigration 
 "is not attracted," but "attracts itself." Only with an 
 increased population will she be able to increase her produc- 
 tion, and consequently her imports, thereby providing traffic 
 and revenue for the comparatively extensive railway system 
 which Bolivia now has at her service. 
 
 It may not be out of place, perhaps, to state on this 
 occasion, as an expression of our personal conviction, that, 
 while admiring and honoring the United States for its gi- 
 gantic enterprise in joining the two Oceans by the construc- 
 tion of the Panama Canal, from which posterity wall derive 
 such benefits as it would be difficult for our minds to foretell, 
 we do not think that it will bestow on countries like Bolivia 
 such immediate and tangible benefits as have generally been 
 expected. The Canal as such cannot effect an increase either 
 in the production or imports of the country, and before it 
 will be able to exert an influence on the same, it will be 
 indispensable to increase both the producing and consuming 
 population, and all efforts to that end must necessarily be 
 centered in the Government and in instutions interested in 
 the furtherance of immigration. 
 
 NEW YORK, MAY 20th, 1915.
 
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