Petroleum has better prospects. Bituminous seams with fair quantities of oil have been located in the north, but more favorable developments would naturally be expected in the same line with the rich oil fields of Peru. In El Oro near the town of Santa Rosa there is said to be an oil field with good prospects, but the principal deposits so far discovered are more nearly in line with the Zorritos and Lobitos districts. The field, extending about 6 miles north and south and 20 miles inland, is close to the coast, 90 miles west of Guayaquil, in desert country near the port of Santa Elena and 750 miles from Panamá. A small oil fountain with considerable gas indicates that deep drilling would bring results. The 25,000 barrels now secured annually are obtained by digging small holes down 50 feet to a layer of impermeable sandstone which is impregnated with oil. The life of these wells is from 3 months to 3 years. A deep well bored by an Anglo-French Company contains oil of a high quality. There is connection with Guayaquil by a fairly good automobile road and by telephone and telegraph. A railway to Santa Elena and Ballenita is in construction. Petroleum claims have recently been denounced in the Canton of Quito, Province of Pichincha. Indications of petroleum in the Oriente have been sufficient to warrant the Leonard Exploration Company in securing a concession of nearly 10,000 square miles east of the Andes from Tulcán to Riobamba in which to explore and drill for oil.
Gold. Of metals, gold mines only have up to the present been profitably worked; those of Zaruma in Southern Ecuador have long been known and operated. In 1549 the towns Zaruma and Zamora were founded and mining was established. Other discoveries followed attended by a gold mining rush from Peru; but owing to the greed of the Governor of Macas, residing at Sevilla, the Jívaros Indians rebelled, destroyed several towns, and murdered many inhabitants, so that in later times the mining has been limited to the placers of Esmeraldas and the lodes of Zaruma. In recent years there have been examinations and working at Zaruma with some mismanagement, but the values are considered proved and shipments have been regularly made, to the extent of $250,000 in 1910. Placers have been found on the west slope of the East Cordillera in Loja and Azuay with gravel from 3 to 6 feet deep. The Collay, anciently worked by Indians, has alluvium 20-35 feet thick, with gold in grains and dust but in small quantities. The placers of the small streams are believed to be paying only as worked individually by the patient Indian. In Esmeraldas there is platinum with the gold but in too small quantities to be worth while. The mountain sections have good lodes which might develop into paying propositions, but appearances are judged less favorable than in some other quarters.
Coal. Beds of coal are found in several places among the mountains, but none have yet been successfully worked. The Southern Railway has recently consumed eucalyptus wood, well dried, in their locomotives.
Manganese. Deposits are said to exist near Pomasqui, from which it is expected to ship 200 tons of ore monthly to the United States. Near San Antonio in Pichincha a deposit from 3 to 9 feet thick covers 21,000 square feet. The ore runs from 46 to 53 per cent manganese.
Industries
Panamá Hats. As might be supposed the manufactures of Ecuador are slightly developed, with no articles save Panamá hats made for export. In this they rank third, following cacao and tagua. The demand for the hats has increased in recent years. They are due to the patient labor of the natives. Made from two different kinds of plants, the paja toquilla, and the macora, the finest hats are from the first, those of average quality from the second, from which material fine hammocks are also made. Both plants grow wild 6-10 feet high; but the toquilla is transplanted, placed four feet apart, and kept free of weeds. The fan shaped leaves of the toquilla rise directly from the ground. Conditions are especially favorable to the plant in Manglar Alto in Manabí, but it grows elsewhere along the coast. The portions used for hats are separated before the leaves open, and picked only in certain weather conditions. The macora grass grows wild on the hills and is had for the gathering.
In Peru similar hats are made from Ecuador straw. In order to prevent this a tax of one sucre a kilogram was placed on the export of the straw, but without killing the Peruvian industry. The finest Ecuadorian hats, which come from Montecristi and Jipijapa in Manabí, are sold in Guayaquil at high prices, but far less than in New York.
A shoe factory, cotton and woolen mills, breweries, ice plants, tanneries, flour mills, saw mills, etc., not forgetting chocolate, are locally important. Along the coast are many maguey plants, from the fibre of which to make bags and twine a profitable industry might be created. For the establishment of a paper factory, the Government proposes, it is reported, to grant valuable concessions to British capitalists.
Investments
From the list of Ecuador’s productions and exports, agriculture, especially cacao, might seem to offer favorable opportunities; to some gold mining might appeal or the possibilities of petroleum. For many years engineering and construction work of various kinds, including sanitation, must present openings for capitalists, and for experts in such matters. With forests so near the coast saw mills and lumbering would undoubtedly be profitable. Stock raising for local requirements is a fair possibility.