Nearly all the railways are plantation roads, extending from the various ports to regions of production a few miles inland. The most important railway development is that in the vicinity of Rio, where short local roads to the suburban settlements and the coffee-plantations converge at the harbor. About fourteen thousand miles of railway are completed and under actual construction. A considerable part of the mileage is owned and operated by the state, and it has become the policy of the latter to control its roads and to encourage immigration. One result of this policy is the increasing number of German and Italian colonies, that establish settlements in every district penetrated by a new road.

In 1900 the total foreign trade aggregated upward of two hundred and seventy-five million dollars. The imports consist of cotton and woollen manufactures, structural steel and machinery, preserved fish and meats, and coal-oil. Great Britain, Germany, the United States, and France have nearly all the trade. The United States sells to Brazil textiles and coal-oil to the amount of over eleven million dollars yearly, and buys of the country coffee and rubber to the amount of six times as much.

Rio de Janeiro, commonly called "Rio," is the capital and commercial centre. Its harbor is one of the best in South America. Formerly all the coffee was shipped from this port, but the greater part now goes from Santos. Porto Alegre, the port of the German colonies, has also a growing export trade.

Bahia, Pernambuco (or Recife), Maceio, Ceará are the markets for cotton, sugar, and tobacco, much of which is shipped to other Brazilian ports for home consumption. Pará and Ceará monopolize nearly all the rubber trade. The position of Manaos, at the confluence of several rivers, makes it one of the most important markets of the Amazon basin, and most of the crude rubber is first collected there for shipment. Cuyaba is the commercial centre of the mining region; its outlet is the Paraguay River, and Buenos Aires profits by its trade.

Argentina and the Plate River Countries.—These states are situated in a latitude corresponding to that of the United States. The entire area from the coast to the slopes of the Andes is a vast prairie-region. As a result of position, climate, and surface the agricultural industries are the same as in the United States—grazing and wheat-growing.

Cattle-growing is the chief employment, and the cost per head of rearing stock is practically nothing. For want of better means of transportation the shipments of live beef are not very heavy; the quality of the beef is poor, and until recently there have been no adequate facilities for getting it to market.[66] A small amount of refrigerator beef and a large amount of jerked beef are exported, however. Near the markets, there are large plants in which the hides, horns, tallow, and meat are utilized—the last being converted to the famous "beef extract," which finds a market all over the world.

The sheep industry is on a much better business basis. Both the wool and the mutton have been improved by cross-breeding with good stock. As a result the trade in mutton and wool has increased by leaps and bounds; and nearly three million sheep carcasses are landed at the other ports of Brazil, at Cuba, and at various European states. The wool is bought mainly by Germany and France, but the United States is a heavy purchaser. The quality of the fibre, formerly very poor, year by year is improving.

Wheat, the staple product, is grown mainly within a radius of four hundred miles around the mouth of Plate River. The area of cultivation is increasing as the facilities for transportation are extended and, little by little, is encroaching on the grazing lands. The wheat industry is carried on very largely by German and Italian colonists. Flax, grown for the seed, is a very large export crop. Maize, partly for export and partly for home consumption, is also grown.

The timber resources, chiefly in Paraguay and the Gran Chaco, are very great, but for want of means of transportation the timber-trade cannot successfully compete with that of Central America and Mexico. Workable gold and silver ores are abundant along the Andean cordillera; gold, silver, and copper are exported to Europe. A poor quality of lignite occurs in several provinces, but there are no available mines yielding coal suitable for making steam. There are petroleum wells near Mendoza.

Most of the manufactures pertain to the preparation of cattle products, although a considerable amount of coarse textiles are made in the larger cities from the native cotton and wool. Hats, paper (made from grass), and leather goods are also made. In general, all manufactures are hampered by the difficulties of getting good fuel at a low price.