INTRODUCTION

Our recently awakened interest in foreign trade and in world affairs renders imperatively necessary a more accurate knowledge of other countries and a more intimate acquaintance with their peoples. Engaged in settling the various sections of our own country and in developing its manifold resources, we were too long self sufficient in thought and narrow in our activities. Yet years ago a few far-sighted statesmen like James G. Blaine realized that a broader field of action would soon become essential to our continued prosperity. A few manufacturers supplemented their domestic business with a modicum of foreign trade. A few men of affairs devoted their energies exclusively to the field of foreign commerce.

The Spanish War, first inspiring many with the idea that the United States had become a world power with interests beyond its boundaries, served to arouse in others a disposition to have a share in foreign trade. Following a gradual increase in the early years of this century, a sudden expansion of our commerce occurred a few months subsequent to the outbreak of the Great War. A scarcity of shipping prevented its attaining the proportions which might otherwise have been realized. Now that this obstacle is removed and the exactions of war service are over, adequate preparations should be made for the conduct of our developing commercial relations, especially with our Sister Continent at the south.

The supposition that those individuals who are directly engaged in foreign commerce are alone benefited thereby has unfortunately been widespread. Under our democratic form of government it is particularly essential that all should understand the advantages of foreign trade for the welfare of the entire nation, that this may not be hampered by the narrow views of local-thinking politicians, jealous of the prosperity of other individuals or sections, or by persons who concern themselves merely with the question of wages for a few or with other special matters; and thus that our commerce may be fostered by our Government according to the custom of other nations, with no purpose of bitter rivalry or unfriendly greed, but with the natural and proper desire of a great nation to share in the mutual benefits accruing to all countries where suitable and honorable foreign trade is developed, as in the case of individuals who buy and sell in the home market.

Some knowledge of other countries and peoples, of causes contributing to their present condition, and of their prospects for future development, while giving intelligent interest to trade and of service in making plans for permanent rather than transitory gain, is desirable for all who care to rise above ignorant narrow-minded provincialism, to be better prepared for civic and political duties, and to enjoy a broader outlook upon the entire world.


The most superficial observer cannot fail to perceive the enormous advantages which have arisen from division of labor among individuals and nations. The personal barter of primitive days was soon superseded by a medium of exchange, fixed locally though varying in different regions. There followed the transport from one city to another and from distant lands of the various products, natural or manufactured, of those cities and countries. As many things grow only in certain parts of the world, others we know are manufactured only in certain districts. That in the distant future the time may come when the entire habitable globe will be occupied, each portion produce what is best adapted to its environment, and the fruits of the whole earth be enjoyed by all its inhabitants, is from the physical point of view the ideal to which we may look forward, a goal for the attainment of which every nation may fittingly contribute.

Few are the portions of the earth where it is impossible for man to dwell, providing for his wants from his immediate surroundings. Each section not altogether barren produces such food and requisites for clothing as are essential to sustain life in that locality. The only considerable portion of the globe which is uninhabited, the Antarctic continent, seems likely so to continue, as it appears not merely the most unattractive spot in the world but devoid of the barest necessities for existence.

The North Polar regions, however, support a few people who live upon the products of the country and who probably would not survive if they adopted the customs of civilization as we regard them, though the use of a few articles which have been carried there may slightly ameliorate their hard existence.

The denizens of the tropical forest, who also have adapted themselves to their surroundings, being able to live with little labor, generally pursue an easy life, since necessity and ambition for improvement are lacking.

In other quarters of the globe where labor is necessary to sustain life but where its results may be a bare existence, comfort, or luxury, man has continually struggled for improvement, braving danger and suffering, and toiling long hours for the future good of himself or his children. Thus has the world made progress.

Here in the United States we might live in comfort with the products of our broad lands only; yet we do not desire to seclude ourselves within a Chinese Wall. We would enjoy the fruits of the whole earth, not by imperialistic conquest, but through friendly acquaintance, the sharing of ideas, and the exchange of products.

Some things we produce in such abundance that we have a superfluity to barter for others things which we produce not at all or not in sufficient quantities. In the past we have had more trade with Europe than with other continents. In various lines of manufactures and of artistic goods we are still unable to compete. While east and west trade will no doubt continue indefinitely, for natural products it would seem that the chief exchange should be north and south, a difference in latitude causing variety in climates, and a diversity in productions both animal and vegetable. With our expansion of shipping facilities following the conclusion of the War, we may hope for a continuing increase of movement from north to south on this hemisphere, making for friendship and political harmony as well as for material advantage.

In considering South America from a commercial and industrial point of view it is necessary to study the physical characteristics of the individual countries, their advantages and drawbacks; the climate and soil; the resources, including the animal, vegetable, and mineral products, and the water power; the character of the inhabitants including the quality and quantity of human labor; their present needs and wants; the future possibilities; the opportunity for investments of various kinds and political conditions affecting these; the instruments of exchange, banking and trade regulations; the means of communication and transport by land and water.

In addition we should know the difficulties which have retarded the development of countries settled earlier than our own, that instead of a supercilious mental attitude on account of real or fancied superiority in certain directions, we may have a sympathetic understanding of conditions, and of tremendous obstacles, some of which have been overcome in an extraordinary manner.

A general view of the continent as a whole may well precede a more detailed study of the several countries.

INDUSTRIAL AND COMMERCIAL
SOUTH AMERICA


CHAPTER I
SOUTH AMERICA AS A WHOLE