Geographical situation of the Republic—Boundaries and area—Uruguay as an historical, commercial, and financial centre—The respective positions of Uruguay and Paraguay—Disadvantages of a buffer State—A land of sunshine and shadow—The history of Uruguay—The blending of industry and warfare—Vitality of the nation—Instances of self-sacrifice—A South American Switzerland—A freedom-loving folk—Deeds of arms and the undercurrents of commerce—Montevideo in the eyes of the casual traveller—Factors that make for the progress of the Banda Oriental—Influence of railway—Coming cessation of the North American beef shipments—Temperament of the Uruguayan—Distinction between Argentine and Uruguayan politics—The clans of the Banda Oriental—The birthright of party convictions—Education in Uruguay—National points of honour—Liberty accorded the foreigner—The courtesy of officials—An incident at the customs-house—Popularity of the English—A gratifying situation—Satisfactory international relations—The work of Mr. R. J. Kennedy, the British Minister Plenipotentiary—Uruguay's pacific foreign policy—Careful finance—Army and navy—General progress of the nation.

Uruguay may be described as a republic of comparatively small dimensions sandwiched in between the great territories of Argentina and Brazil, and bounded on the south by the Southern Atlantic Ocean and the estuary of the River Plate. Its actual area, 72,100 square miles, is less than that of the British Isles, and thus the Banda Oriental, to use the name by which the State is locally known, enjoys the distinction of being the smallest of the South American republics. But, although this distinction applies to actual area, it serves for remarkably little else in the country. Indeed, an astonishing amount is packed within the frontiers of Uruguay. In the first place it is a land where much history has been made. Secondly, to turn to its industrial assets—although I do not intend to deal with the commercial side of the Republic more fully than can be helped—it is a country where many cattle are bred. Lastly, it is a place in which no less than fifty million pounds sterling of English money are invested. Thus the small Republic, as an investment field, ranks third in importance amongst all the States of South America, a fact that is realised by remarkably few outside its own boundaries.

Uruguay and Paraguay are frequently confused by those quite unfamiliar with South American affairs, owing to the similarity of the nomenclature. In actual fact the two countries have very little in common, save in their political situation. Both separated themselves from the River Plate Provinces in the course of the War of Independence, since which time both have served as buffer States between Argentina and Brazil. The position of such is seldom enviable at the best of times. Upon Uruguay it has worked with an especial degree of hardship, since even before the days of her independence it was upon her suffering soil that the too frequent differences between Spaniard and Portuguese were fought out.

A RURAL INN.

COUNTRY COACH AT LA SIERRA STATION.

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