The real exploration of the interior of Formosa is done by squatters who, when turned off one holding, move on to a new one further from the civilisation which, such as it is, is mostly to be found on the River Paraguay, or near to it on the banks of its chief affluents, the Pilcolmayo (which forms the Northern boundary between this territory and Paraguay) and the Bermejo. The clearance of the rocks, sunken logs and masses of vegetation from the beds of these rivers as a preliminary to the carrying out of other works for the purpose of making them navigable is under consideration by the National Government, which also proposes to build a railway line from Embarcación, in the Province of Salta, across the centre, almost, of Formosa, in a South-Easterly direction, to its capital, a town of the same name and, doubtless, the first to bear it. At present Formosa has no railroad at all.

This Territory has several other considerable rivers and streams all running nearly parallel to one another and to the Pilcolmayo and Bermejo, in South-Easterly direction, to the River Paraguay.

Almost the whole of its surface is a vast plain gently inclined; its South-Eastern part is largely covered with forests and dotted with many shallow swamp-like lakes—“Esteros,” as they are called.

The forests are very rich in various valuable woods; of which the chief object of present commerce is the Quebracho, which here, as elsewhere in the Republic, is found in two varieties, the red and the white. The former is the richest in tannin. Quebracho extract (for tanning purposes) will be seen to figure prominently in the tables relating to Argentine exports.[36] Quebracho logs are in constant demand for railway sleepers.

The wide glades and open spaces in the forest afford excellent pasturage, and are all eminently suitable for agriculture. Some parts of this territory are destined to become rich alfalfa fields, and already relatively considerable areas are under this forage. There is plenty of salt, sandy soil with water near the surface. Maize also, on account of climatic conditions and the nature of the soil in parts (where a rich layer of humus is superimposed on a moist, sandy subsoil), should form a valuable crop in this Territory.

Formosa, with its Northern situation and therefore almost tropical climate, has few sheep; but cattle, still of the native breed, thrive well in many parts.

Also, in Formosa, and in Misiones, a large proportion of traction bullocks must be reckoned among the numerical value of their cattle.

In Formosa the summer or rainy season lasts for about seven months of the year; little or no rain falls in the winter or dry season—as in the tropics. In the wet season many of the rivers overflow their banks and such, likely, inundations should be taken into account by any would-be purchaser of land in Formosa.

He should also keep his eyes open for dangers other than floods; for if scientific exploration cannot yet be said to have obtained any firm grasp of Formosa, how much less can measurements and boundaries be hoped to be in order. They are not so in most of this Territory, and a purchasing settler might eventually find himself with little for his trouble and money but the costs of a lawsuit forced upon him by some owner of an historic grant made by a grateful Republic in bygone days to the grandfather of such owner for distinguished service of one kind or another.