The forestry of the interior is unstable as well as scattered and primitive. The equipment—saws that are easily taken down and set up—is not costly, and does not require much capital. When one canton of the forest has been exhausted, the saws are taken down and removed. The cuttings are not made in such a way as to allow the forest to recover, and so permit a continuous exploitation. Everything of any value is taken. The quebracho is, moreover, a tree of slow growth. The forestry industry has at times returned, after an interval, to land that had been stripped, but that is not because they had planted a new generation of trees. It is because it became profitable, as the state of the market and the cost of transport changed, to cut down the small trees which had not been considered good enough on the earlier occasion.

When the master obrajero removes, he is followed by the greater part of the workers. But to induce them to emigrate, or to recruit cutters in the bañados who will agree to work in remote or new districts, he has to be liberal and offer higher wages. Hence the conditions of work and the rate of wage are not the same in every part of the forest. The oldest area of working, which is crossed by the Central Córdoba, between the provinces of Catamarca and Santiago del Estero, has a surplus of good workers. On the other hand, the obrajeros of the valley from San Francisco to Jujuy, where the exploitation is more recent, have only a moderate amount of labour at their command. The returns are not higher there than in the south, though the forests are incomparably denser and richer. It has been very expensive to bring about a continuous stream of immigration toward the main region of forest work, which is now called the Chaco, along the railway that starts from Añatuya and goes about 130 miles further north. As the worker is on piece-work, the price per sleeper when the work was begun on the Chaco had to be double, on the Añatuya line, what was paid in the older line from Santiago to Frias, close to the bañados.

The work is profitable only within a short distance from the railways. Waggon transport raises the price rapidly. Moreover, the forestry industry is just as dependent on the railways for provisions as it is for the carriage of its wood. The obraje has no source of food-supply on the spot. The marshy estates which begin to spread in the area of irrigation-canals at Banda, eastward of Santiago del Estero, supply only their customers at Añatuya and the Chaco line. Sometimes the railway has to bring water as well as food. Over a great part of the Chaco de Santiago there is no running water, and the underground sheets are little known, or inaccessible, or salty. The obraje is a land of thirst. In order to meet the demand for water they dig reservoirs like the represas on the ranches, which are filled by the rains. But as soon as the dry season sets in they become stagnant green pools, and the men have to rely on waggon-cisterns.

While the Chaco de Santiago is now a democracy of mall small obrajeros and contractors, the eastern Chaco, alongsalong the Paraná, has quite a different type of society. It is entirely in the hands of the big tannic-acid factories, where the quebracho trunks are stripped and boiled, and their sap is concentrated in a viscous resin. The lofty chimneys of these works rise above the forest at intervals. Here the work assumes a capitalistic and industrial character which it has not in other places. It is controlled by powerful concerns, highly organized, which conduct it on a pre-arranged plan. It is true that the works do not deal with the entire output of quebracho,[48] but they almost control the market, even as regards the unworked wood which is exported, and they reserve a good deal of it for their branches in Europe. In order to secure the heavy loans which the works represent, the companies that have built them have been obliged to take over large forests, and they have come to own these. The concentration of the area in their hands goes on daily, and the number of companies is reduced by amalgamation or by the purchase of rival concerns and their estates. On the territory of the Chaco, where the administration of public lands was in the hands of the Federal Government, some precautions were taken to prevent the monopoly of the country; but the forests of the province of Santa Fé belong entirely to two firms.

The eastern Chaco has received from Europe, not only the capital that was needed for the construction of works, but also a number of workers, either for administration or for technical direction. These have proved more exacting than the creoles of the Santiago saw-mills. Beside most of the works there are now comfortable villas and brick towns for the workers. The expense was quite prudently incurred, as the industry is less erratic in this region. A tannic-acid factory cannot be removed like a saw-mill. When the timber-supply is exhausted in the district, the works gets its material from a distance, as long as the freightage permits. It depends on the railway, not only for the carriage of its products, as the saw-mills do, but for the supply of raw material.

The works are not all equally wealthy. They are scattered over about ten degrees of latitude, north of 30° S. lat., within reach of the river, which keeps them in communication with the world, and at the same time has enabled them to tackle the full breadth of the forest. The quebracho is particularly abundant north of Santa Fé and south of the Argentine part of the Chaco, where it is the life and soul of the forest. The works which have been set up there, in the midst of the denser forests, have plenty of capital, and this enables them to nurse their supplies and buy timber at a distance. The forest is still almost virginal at their gates, so that they have a long future in front of them. On the other hand, the oldest works, on the southern fringe of the forest, and that of Corrientes, on the left bank of the Paraná, are already paralysed for want of timber.

The works are all at a short distance from the river; not only for convenience of exporting their products, but because this is the only part of the Chaco where one can find fresh water. And the tannic-acid factory needs a great deal of fresh water. Along the river, in a belt about thirty to sixty miles wide, we find a permanent hydrographic network such as is found nowhere else on the plain. It consists of long series of marshes covered with rushes (cañadas), and in places they become at their mouths regular streams with well defined beds. The underground water also is generally fresh and plentiful, whether it is due to the abundant rain or to infiltration from the Paraná, and many of the works have successfully bored for it. In these parts one suffers from too much water as frequently as from thirst. On these immense and almost horizontal surfaces the water spreads from the cañadas over the whole forest. The railway, and even the houses, then stand out of a sheet of stagnant water, which takes months to disappear. Trunks which are badly placed, lying in the stations to be removed—sometimes, according to the market, lying there for years—are half buried in the mud. The waggons find it hard to move in the roads. Mules, which pay very well in the dry forests of the west, could not make the effort that is required here, and they use oxen—the finest beasts for a muddy country. The long-horned, lean creole cattle drag the waggons with difficulty, and a correntino, with long slender legs, shod with mud, guides and urges them, looking like a crane with his slow and cautious steps. The work of these drivers is much harder than that of the wood-cutters. They earn nearly twice as much, and it is the difficulty of getting enough men for this work that keeps down production.

The importance and stability of the large works has fixed the labour market on the right bank of the Paraná, and there is no need to go to Corrientes to look for men. They come of their own accord. A daily service of small steamers brings them to all the ports which dispatch quebracho. The left bank, on Argentine territory, has also no hiring centre, such as there still are at Asunción and Concepción in Paraguay.

Even on its own land the works leaves the working of the forest to contractors, from whom it buys the timber. But the obrajeros, whether they work in the company's forests or their own, are very dependent upon the works. The contracts vary according as they are owners or otherwise; according to whether they undertake to deliver the timber at the stations or leave it where it is felled; and according to whether they have the requisite oxen and waggons or have to loan these from the company. They draw advances from the company, and, on the other hand, they pledge themselves to purchase what they require for their workers at the company's stores. The profit of these sales increases the revenue of the works. The company monopolizes all trade, both import and export. It exercises an absolute sovereignty over the forest. It has merely deigned to grant the railway company space enough to construct its lines and its stations.