Industrial and commercial South America

While the varied sources of Colombia’s wealth have already been touched upon, some paragraphs follow concerning the different lines of production and export.

Agriculture

The country has such variation in altitude as well as such fertility of soil that not only does almost every sort of vegetation thrive within its borders, but it exists in most of the Departments. An enumeration of all the localities where the different articles are found would be needless repetition. Reference will be made, however, to Departments where certain products are chiefly grown. With proper cultivation and ample labor food stuffs might be produced to satisfy every requirement, but many are imported from other countries more easily than they could be carried from one section of Colombia to another.

Coffee, from the commercial and export point of view, is the most important agricultural product, in quantity coming next to Brazil, while in quality the coffee by some is considered second only to Arabian. Preëminent for its culture are the Departments traversed by the Central and East Cordilleras, especially Cundinamarca, Antioquia, Caldas, Santander del Norte; also Cauca, El Valle, Tolima, and the north slope of the Nevada de Santa Marta. In Colombia coffee grows best at altitudes of 2000-6000 feet, the higher the milder the coffee. At 5000 feet no shade is required, though necessary when first planted in most places where it is raised. Everywhere coffee seems to prefer sloping ground. In Cauca, where 720 trees are planted to the acre, they produce for 50 or 60 years. Coffee from Santander, mostly going out by way of Maracaibo, is sold under that name. We hardly think of coffee as a product of the temperate zone, but in Colombia it is so classed, growing in the same altitudes as temperate fruits, vegetables, and cereals.

Bananas are the most important crop of the lowlands, especially since the exploitation of the Santa Marta district by the United Fruit Company. Ninety per cent of the bananas raised in this section are exported by the company under contract with private growers. Banana land of the company is well laid out with irrigating canals, managers’ and laborers’ houses, etc. Export has increased enormously. As the section is watered by five rivers and many brooks, it is especially favorable for the irrigation needed. The trunks and leaves of the plant, which might be utilized for cordage, paper, card-board and textiles, at present go to waste. The cost of clearing and preparing land for the industry, with 350 trees to the acre, is about $45. Within two years the annual receipts are $40, largely profits. The Company owns 28,000 acres of improved land (10,000 devoted to cattle) and twice as much land unimproved. The bananas are free of export duty and taxation. The fruit may be grown in all the lowland sections where irrigation is practicable, which is almost everywhere. Before the War the Germans near the Gulf of Urabá started a plantation of 12,000 acres, one third of which is under cultivation.

Plantains are widely raised for native use, as they form the chief article of food for the masses in the lower districts. Higher up maize is the staple. The plantain requires little cultivation, the crops are heavy, and the plantations last for years. The fruit is eaten either green or ripe.

Sugar cane, grown extensively on the fertile lands of the valleys, without fertilizer and with occasional hoeing, gives crops of 80 tons per acre, averaging 40 tons. It flourishes up to 7000 feet. Small primitive mills are the rule, but a few with modern machinery have been established, one near Cartagena. A brown sugar is chiefly made in the small mills, pantana, which is palatable and nourishing; but some is refined for table use and for the chocolate factories. A large amount of sugar is used for chicha (sugar syrup fermented with corn), for denatured alcohol, and for aguardiente, a kind of rum; the last is a government monopoly. The sugar production is hardly sufficient for local needs.

Tobacco, which some think equal to the best Havana, is raised, mostly for local consumption; formerly much was exported to Bremen.

Cacao grows wild on thousands of acres, some trees reaching a height of 45 feet; but to give the best results it must be cultivated. It is planted for early protection under bananas, together with other trees which will give shade later. Local demand consumes most of the supply. Little attention is paid to its cultivation, though the Magdalena and Cauca Valleys are well adapted to it. Trees 60 years old are found in bearing.

Coconut palms might be more largely cultivated, plantations existing chiefly on the coast and islands. The fibres and oil are useful and many nuts are exported.

Rice grows freely in rich, hot, irrigated land, but it is not largely cultivated.

Cotton of excellent quality is raised from Egyptian seed on the Caribbean coast and in Antioquia; it is found growing wild at low and moderate altitudes all over the country. But little use is made of it except where factories are near, these promoting its culture. The plants, perennials, grow 12 feet high. The cotton, unrivalled for length of fibre, is all used locally.

Other fibrous plants are the Agave Americana or century plant, which is cultivated as a hedge; enough is produced to satisfy most of the home demand for fibre for ordinary rope and twine, also for making common packing sacks, and alpargatas, sandals worn by the poorer people. Here grow ramie and other shrubs, the fibre of which is used for vegetable silk. Ramie on the Bogotá River yields 6 crops a year without irrigation, the stems 6 feet long having a very tough fibre. Most of the Magdalena land could not be better used than for raising such plants. A recent invention to extract the fibre by a chemical process makes its culture important. Jute in Colombia on the same soil as ramie reaches double the height attained in its native country, and gives two cuttings a year, the first crop three months after planting.

Wheat gives good crops on the highlands, and maize (corn) grows everywhere, in the rich lower valleys producing three crops a year. Potatoes and other vegetables grow in various altitudes.

Forestry

The natural wealth of the forests is enormous, though at present largely inaccessible for lack of transportation facilities, a condition which might easily be remedied so far as the forests of the Pacific Coast and of the Atrato and Magdalena Basins are concerned. The chief products now are rubber and tagua nuts.

The Rubber is of both the caucho and the hevea varieties, the former of inferior quality, procured by cutting down the trees, the hevea or fine Pará by tapping. The former is obtained by the Tolimenses from the Rio Negro section, the latter by Indians of Vaupés, this being sent down to Manaos. Rubber also comes from Chocó, being collected by Indians and negroes who exchange it for goods at Quibdó, at places on the San Juan River, also at Barbacoas, back of Tumaco. A few plantations have been started in the Atrato and Magdalena Valleys and near Tumaco. Balatá and chicle are also exported.

Tagua Nuts, which have only to be picked up, are gathered in the forests on the Pacific slope and in the Atrato and the Magdalena Basins, the best quality from the Sogamoso tributary of the latter. This is called vegetable ivory, from which buttons, etc., are made.

Timber of great value exists, a little of which is exported: Colombia mahogany, cabinet and dye woods; but there are few saw mills, and the great variety of trees in a small area renders their exploitation difficult.

Medicinal plants are numerous: cinchona, sarsaparilla, ipecac, balsams, etc. Many other valuable plants abound but are little exploited.

Live Stock

The Cattle raising industry is one of the most favorable for immediate profit. The best quality of grass is found on the plains of Magdalena, Bolívar, and Atlántico, where there are large areas of planted pasture. An acre and a half supports a steer. Pará grass, native to Brazil, is used on wet or swampy ground and guinea grass on drier. On the eastern llanos are millions of wild cattle, with some ranches; but the grass is generally so poor that the cattle are sometimes brought to the Magdalena Valley to be fattened, though this is difficult. There are 4,000,000 head in the country with 80,000 annually available for export. Modern packing houses are now being established with important Government aid. Material and supplies for construction are exempt from import duties; and outgo for 20 years from export taxes. With attention to breeding and to good fodder for fattening the production may rival that of Argentina.

In the Sinú Valley region are said to be 1,000,000-1,500,000 cattle. An American and Colombian Company holding 75,000-100,000 acres along the River, with a herd of 40,000 cattle, is now (1921) erecting a packing house costing $1,750,000 on Morrisquillo Bay, 60 miles from Cartagena. They expect soon to begin operations, slaughtering 500 head a day. On account of proximity to the United States, the prices of Colombian cattle could probably not be equalled here by the countries farther south. A packing house at Cali may be desirable.

Other Stock. Horses. As an absolute necessity on account of the scarcity of wagon roads, many saddle horses are raised, Andalusian crossed with Arabian or English. Some saddle horses are imported from Peru. Mules and donkeys are found in large numbers. Goats are numerous in all quarters, and sheep are raised on the highlands. There is a large exportation of hides and skins.

Mining

This is an industry of great promise, the as yet bare scratching of the surface showing infinite possibilities for the future. Practically every mineral of commercial value has been found, including the rarer metals. The lack of proper transportation makes some sections impracticable and others difficult, but important work has been carried on in many places; opportunities lie open in many more. Gold is found in almost all sections, both in quartz veins and in placers. There is native silver, and some with gold and tin. Platinum ores running from 80 to 85 per cent are found with gold and other metals. Iron is widely distributed; also copper; often with gold, tin, and in primitive rock formation. Manganese, lead, mercury, sulphur, zinc, antimony, arsenic, nitre, alum, exist, but are not much worked except sulphur, which is taken from some volcanoes. The working of the salt mines is a government monopoly, rock salt and springs existing in large numbers. From the Zipaquirá salt mine in Cundinamarca the Government receives a revenue of approximately $1,000,000 a year.

Coal was first discovered in 1865 near Santa Marta Bay, and subsequently other deposits. Most important just now are the beds near Cali, which are thought to be very extensive, and to extend through the mountains to the Pacific slope. It is said that enough coal could be mined to supply the neighboring Republics as well as Colombia. The probable supply is estimated at 27 million tons. The character of coal in the country varies from lignite to bituminous. A wide vein of cannel coal leads from the Nevada de Santa Marta towards the Goajira Peninsula; an anthracite deposit 25 feet thick extends 50 miles north and south near the Gulf of Urabá. Coal deposits exist for a distance of 300 miles north and south of Bogotá near the East Cordillera, others in the formation of the Central and West Ranges. One bed near Cali in places is 22 feet thick. Coal beds in three layers are cut by the Amagá Railway, and the locomotives are fired on the track.

Petroleum exists in quantity indefinite, but hardly to be overestimated. The great tract of country extending several hundred miles back from the entire south shore of the Caribbean apparently contains a collection of oil reservoirs which may exceed in magnitude those of any other section of the Western Hemisphere. Nowhere else in the world, it is said, is there so great a display of seepages and of petroliferous mud volcanoes.

Colombia presents three more or less distinct regions with various fields in which operations have been conducted; others in which the surface indications will doubtless incite to careful examination in the future. The three well known regions are the Caribbean, the Magdalena, and the Maracaibo; the last two are also spoken of together as the Magdalena-Santander Field, since an oil belt extends from Venezuela south-southwest across Santander and the Magdalena River. But as a mountain range separates the Maracaibo Basin from the Magdalena Valley, the two are quite distinct.

The Caribbean Region which extends along the coast from Riohacha to the Gulf of Urabá has 300 or more square miles of supposedly productive territory. Many American companies have obtained concessions; more than 100 are organized for the exploitation of this and other districts. So rapidly have sections been taken up that a considerable part of the coastal tract west of the Magdalena is already occupied. British interests also have acquired extensive holdings in the Republic. Emissions of gas occur in many places, this being the first country in South America where large amounts have been observed. Among the petroliferous mud volcanoes is the largest known anywhere. In the Tubara field is a well 3000 feet deep from which enormous quantities of gas came off. It has been proposed to pipe the gas to Barranquilla for use in the city.

The Magdalena pool or region extends along the river valley for several hundred miles. The fields already occupied are mainly on the east side. In this section the first oil gusher of Colombia was brought in not far from Barranca Bermeja, about 400 miles south of Barranquilla. A second well 2270 feet deep shot oil over the derrick several hours before it could be capped. It was rated at from 2000 to 20,000 barrels daily. Steady flow is estimated at 6000 to 8000 barrels daily. The oil, which is dark with some asphalt, gives about 30 per cent gasoline, 6 of kerosene, 20 lubricating oil, and 12 asphalt. A pipe line and wagon road are being constructed from the three wells drilled near the Colorado River 35 miles to Barranca Bermeja where a refinery has been erected. It is said that this is to supply Colombia with gasoline, kerosene, and lubricants at prices not above those of New York. The use of residual fuel oil on the river steamers will greatly facilitate their operation. It is likely that a larger refinery will be erected at Cartagena or as rumored on an island at the mouth of the Magdalena, but the cost of reported pipe lines 300 or 400 miles long in this region would be prohibitive. Tank steamers will well serve the purpose.

Higher up the river near Honda is the Tolima field where live seepages occur and a well has been drilled. [Many locations have been secured in a stretch of several hundred miles along the valley.] This field includes the upper Magdalena Basin, with which are classed the groups on the edge of the San Martín and Casanare plains east of the Cordillera. In the Orinoco Basin oil has been seen floating on the surface of the rivers.

The Maracaibo Basin, which is chiefly in Venezuela, has a section running over into Colombia where the Barco concession is located. An area of more than a million acres is occupied by an American company. Here oil seepages include some wonderful springs. Oil from one of these runs a small refinery which produces 25 barrels a day. The oil with a loss of only 1.1 per cent is said essentially to match the high grade Pennsylvania oil, selling for $4.00 a barrel at the well. Wells were first drilled on the Venezuelan side of the Rio de Oro, tributary to the Catatumbo; later on the Colombian side.

There is further a Pacific district extending north and south from Buenaventura a distance of 60 or 70 miles, from Quibdó on the Atrato to Cali on the Cauca with a small section on the coast. The probable productive area is 18 miles but none is proved.

The location of these extensive deposits, many within 200 miles of tide water, is of prime importance to the commercial world, especially because of their proximity to the Panamá Canal, soon to be one of the great shipping routes of the world. Moreover the port of Cartagena, which already has several refineries and will serve as the chief depot of export and supplies, is nearer to New York than is Tampico by 400 miles, than Galveston, Texas, by 50 miles. It is also much nearer to London, to Panamá, and to our own Pacific Coast. Clearly, the development of the petroleum deposits of Colombia is of the greatest interest and importance to the United States. It is believed that its oil fields will equal or surpass those of Peru.

Platinum. At the moment the greatest mining wealth is in gold, with a good bit in platinum. Over $2,000,000 worth of the latter was exported in 1917. Platinum, usually with gold, is found in rivers near the Pacific: the Atrato, Condoto, Platina, and San Juan. Operations have been carried on in several districts. The concessions of an American company include a tract on the San Juan and one on its tributary Condoto and its branches, with holdings north and east of the river deposits. By means of a small wood burning dredge with annual capacity of but 250,000 cubic yards, about $600,000 worth of platinum was obtained in 1918 when the Government price was fixed at $105 an ounce. With a second and larger dredge now operating and a third expected soon, much greater production will be realized. In 1920 the value fluctuated from $70 to $165 an ounce. In June, 1921, it was $75. The value of the two tracts is estimated at $52,000,000 at the former Government price. Costs are little greater than in the California and New Zealand fields, and with suitable precautions taken in the way of drainage, mosquito netting, etc., as at Panamá, and with good medical attendance, health conditions have been made about the same as on the Isthmus. Extraordinary platinum values have been shown; the gravel handled in 1918 furnishing $2.50 gold and platinum per cubic yard. The extensive use of platinum in dental work, in jewelry, and for important though limited service in certain manufactures, in sheet, wire, and granulated form, indicates an annual need of 165,000 ounces in the United States alone. A unique opportunity is offered in Colombia for the production of this valuable metal.

Gold. The gold of the Chocó placers has been widely known since the Spanish Conquest. Four hundred million dollars was taken by the Castilians from shallow waters and easily worked river banks. In recent years a number of companies have been operating. The Pato mines cover 40,000 acres near Zaragoza, population 2700, Antioquia, where a dredge is operated. At the Nechi mines the dredging cost is 9 cents a yard, the return about 75 cents. In Antioquia there are 20 rivers with gold alluvium, but operations are chiefly on the Cauca, Nechi, Pato, and Porce. The bench gravel is very deep and can be worked profitably (except at times by the natives) only with machinery, as is the case generally. Therefore considerable capital is necessary for a successful enterprise. More than 12,000 gold bearing sites are known in Antioquia; many in Nariño, Caldas, El Valle, Tolima and Chocó. The gold production in Colombia since the Conquest is estimated as above $600,000,000 and that of silver as $30,000,000.

Emeralds. The most famous mining industry of the country is emeralds; for nowhere else are they produced in quantity and here are the best. The mines were worked long before the coming of the Spaniards, and the actual labor has been performed by the Indians ever since. The mining has been a Government monopoly. The area is a region of 4000 square miles, but the only mine recently operated is the Muzo, 92 miles northwest of Bogotá. It is now worked by the open system though formerly by tunnel. The workers live on the ground in buildings provided for the men and officers, with police to prevent thieving. Present operations are in almost vertical cliffs rising from 100 to 550 feet above small valleys. The loose soil is not removed by water, as is stated elsewhere; the emeralds are separated from the soil by a dry method; water is used to carry away the detritus and also to wash the residue left by material from rotten veins in order to expose small emerald crystals. The output in normal years approaches 800,000 carats. No attempt should be made to obtain a possible concession without thorough investigation and ample capital. The same may well be said of any mining venture. A concession for emerald mining has been secured by an American company.

Other Industries

Manufacturing is fostered by high duties on many goods; further by concessions such as exemption from taxes, land grants, or money, to persons establishing factories. In return the goods must be sold lower than those imported. Some large business firms finance other enterprises such as coffee and factories. Of manufactures textiles are the most important. In Barranquilla there are 200 British electric looms run by boys and women; British yarns are imported and worked up into domestics and drills; there are other factories at Bogotá, Cartagena, Medellín, and two for fine woolen cloth at Bogotá. Some cotton spinning is done; two new spinning mills in Barranquilla each have 2500 spindles. In cottages are many looms for the spinning of wool, in which the Indians are very proficient.

In one place or another are factories of almost every kind: silk, flour, chocolate, matches, shoes, tanneries, ice, mineral waters, breweries, tiles, iron and steel, glass, candles, soap, etc. Bogotá has the largest number of factories, about 40, Medellín the next; others are well scattered over the country. Few do much more than supply local wants, partly on account of the difficulties of transportation.

Export. The only manufactured product important in export is Panamá hats. The principal centers of the industry are Antioquia, Nariño, Huila, and Santander Sur. The hats are made of toquilla palm, the young leaves of which are cut off, split into thin strips by a small wooden knife, spread out in the sun to dry, and then woven. The hats are not made under water, but the straw must be kept very damp to avoid breaks and splits; so weavers sometimes go into damp caves. Near Pasto, Nariño, hats are made almost equal in fineness to those of Montecristi, Ecuador. The industry has a bright future unless Japan by cheaper labor drives the South American product from the market. To prevent this the export of raw straw may be forbidden.

Investments

Colombia obviously offers a wide and varied field for investments, but like the other South American Republics, on account of low wages, it presents no opportunities favorable to ordinary laborers unless in agriculture. An immigrant may receive a free grant of land of 6175 acres, which he must within ten years cultivate over one third of the area; or if cattle lands, two thirds must be occupied.

Various forms of agriculture may be attractive to persons of moderate capital: sugar cane, bananas, coffee, cacao, cotton, fruits, etc., as also agave or other fibre material. Tagua groves in baldíos may be exploited.

Discoverers of mines in baldíos, Government lands, have a preferential right to 1250 acres of land adjoining the mines denounced. The abundance of water power is of great value to investors of every kind, being equally important for mining, factories, and agriculture.

Factories on account of high tariffs make excellent profits. Cattle and sheep raising offer good prospects. Public works including drainage, water supply, sewers, road and railway construction, bridges, and development of electric power should afford many and varied opportunities.