The trees or shrubs grow wild in the forest to a height of 10-25 feet; from these the bright green leaves are gathered from which the tea is made. How to propagate the trees was for years a mystery, but it is now known that soaking the seed in hot water will promote germination. If planted in tiny wooden boxes with no bottom, 9 inches deep, the roots may be transplanted without injury. A tree comes into bearing in five years, but reaches full production only after 12 years. Some plantations have been established on the Alto Paraná, but the greater part of the mate comes from the virgin forest. The natural trees in the forest grow better if that is cleared of underbrush and of the larger trees. When full grown they can endure 5-6 cuttings a year without permanent harm.
The Industrial Paraguay, with a capital of $5,000,000, is said to export about 75 per cent of the total. This Company holding a property of 8400 square miles, was the first to undertake on a considerable scale the cultivation of yerba mate in plantations. Their largest is in the north at Nueva Germania on the River Acaray. Barthe and Company, with a property of 3000 square miles, has a plantation near Nacunday on the Paraná River with 1,400,000 trees producing, and 1,000,000 more immature. The plantations of 28,000 acres will soon supply 5,700,000 pounds a year. Mate sold in 1918 at 8-10 cents a pound. In that year cultivated trees produced 6,700,000 pounds, and the natural 17,200,000 pounds. Chatas, flat boats, carry the dried leaves down stream to river ports where they are taken by steamers to Asunción, Posadas, Corrientes, or Buenos Aires to be ground. The Industrial has two ports on the Paraná and one on the Acaray, with mills in Asunción, Corrientes, and Buenos Aires. La Matte Larangeira, a Brazilian Company, has some yerbales in North Paraguay, but more in Matto Grosso.
Ten to twelve million persons in South America drink mate, though tea and coffee are more fashionable in the large cities. Its use was spreading in Europe before the War, but few persons in the United States are acquainted with its virtues. Containing less tannin, it is more healthful than tea or coffee, is soothing to the nervous system, and beneficial to digestion unless taken to excess. When used instead of food it becomes injurious. It is much drunk on the plains of Argentina, counteracting the effects of an excessive meat diet. It may be made like tea, but in its native haunts, the powder is put into a gourd called a mate, boiling water is poured on, and after steeping the liquid is drunk with a bombilla, a tube ending in an oval ball, with small holes to admit the liquid, but supposed to keep out the yerba.
Agriculture
Tobacco, largely cultivated in Paraguay, is the most important agricultural product with the first place in foreign trade. Almost every one smokes large cigars, even women and girls. The leaves are divided into seven classes: the first class called pito containing 2¹⁄₂ per cent of nicotine, the seventh class 7 per cent. The first four classes are used in Europe as fillers, the last three in Argentina as wrappers, having larger, stronger leaves. The tobacco is mainly from Havana seed introduced in 1900. The leaves are dried and fermented, and made into various types of cigars, or shipped in crude form to Europe, formerly the most to Germany, later to France and Spain. Of one crop of 7000 tons 4000 went to Europe, there sold under different names. In Argentina and Uruguay the cigars and cigarettes are popular under the name of Paraguay.
Small Farm Products. Agriculture is naturally important for home consumption, but aside from tobacco and oranges the exports are slight. As almost everything will grow in the rich soil, with increasing population agriculture will become a great source of wealth. Mandioca and corn are staple for the small farmer, the latter of two varieties, a hard white and a soft yellow, the former of especial excellence both for nutriment, and withstanding the ravages of the grain weevil. Three crops a year may be raised from one variety of sweet corn. White potatoes flourish, though not so well as sweet, no great hardship. Beans, peanuts, millet, and various European vegetables are raised for home consumption. Wheat is experimental. Coffee does fairly but is often injured by frost; alfalfa not so well as in Argentina. Rotation of crops is unknown and few implements are employed. Life is so easy that the small farmer is rather shiftless, and practically nothing is done on a large scale.
Oranges, grown by every one, are the most noteworthy of the many varieties of fruit produced in Paraguay, but high freight rates make them less profitable than they should be. They grow freely and are exported in large numbers to Argentina and Uruguay, 200,000,000 in 1919; they have been called the best in the world. However, they do not keep well, and being carelessly packed many are spoiled in transportation. The introduction of hardier varieties is talked of.
Sugar finds excellent soil but is liable to suffer from frost or drought. It is grown mostly in the north near the rivers, railways, and factories. There are at least seven mills, two at Villa Hayes in the Chaco, one at Concepción. Some small mills make brown sugar and caña; 387,500 tons were produced in 1918. About 20,000 acres were cultivated in 1919, but some sugar is imported. The methods have been crude but are improving.
Cotton. Good cotton land exists especially in the southwest, and in the Chaco. An indigenous tree bears 10-12 years. The staple is of good length and quality. Not enough is produced to supply the home market, but its culture is increasing. A Belgian obtained annually 1000 pounds an acre for six years. At present the seed is not utilized.
Rice is grown on low ground between the Paraguay River and the railway. Two crops a year may be raised giving 2000 pounds to the acre, a quantity which might be nearly doubled. The coconut palm, peanut, and castor bean flourish.