Uruguay

In consequence of this temperate climate that it enjoys the natural plagues of the Banda Oriental are few. Drought, although it occurs from time to time, cannot be looked upon as a genuinely characteristic chastening influence of the land. The visitations of locusts constitute a more serious matter. These, as in the case of the neighbouring countries, occur in cycles, and the periods marked by the presence of the small winged creatures with the insatiable appetites are unpleasant enough for the agriculturalist. Owing to the great pastoral predominance in Uruguay, however, the country in general suffers far less than one more devoted to the production of cereals. With the spread of agriculture that is now in progress the question is likely to become more serious. But by the time that a reasonable proportion of the Republic has been brought under cultivation it is possible that one of the many plans that are continually being brought forward for the extermination of the locust curse may have taken effect. Nevertheless, too much reliance is not to be placed upon this very desirable consummation.

The great majority of Uruguayan fauna are identical with those of the River Plate countries in general. The animals most commonly to be met with in a journey through the Campo are the carpincho, a large, tailless water-hog; the nutria, a creature that closely resembles a gigantic rat, although its hind feet are webbed; the skunk, the opossum, the iguana, and the armadillo.

In the region of bird life the larger varieties most in evidence are the carancho, a cross between a vulture and a hawk; the chimangu, a smaller carrion-hawk, and a kestrel-hawk with brown body and bright grey wings. Far rarer are the large grey eagle, and the cuerbo, or black vulture. Heron of various species are very plentiful.

Of the smaller birds the teru-tero, a variety of crested plover, is by far the most numerous, although certain districts exist in which the duck and teal run them a close second in point of numbers, while partridge and martineta are to be met with in abundance in others.

Amongst the more gorgeous winged specimens of the country are the flamingo, parrot, woodpecker, humming-bird, and the little black pecho colorado with its brilliant scarlet breast. Both the scissor bird and the viuda (window) bird are aptly named. The former rejoices in a very long, divided tail; the latter is of a pure white colour with a well-defined black border to its wings. The "bien te veo, bicho feo" is a mocking-bird whose call closely resembles the phrase by which it is known, and the ornero, or oven bird, is so called from the curious structure of its mud nest. The small owl, too, is a notable inhabitant of the Campo, as are the dainty miniature doves. But to enter fully into the animal life of the Banda Oriental would require a book in itself; therefore it is necessary to be content with a list of the varieties most commonly to be met with.

In dealing with the category of birds I have purposely left the ostrich to the last, as that particular biped stands, as it were, in a class of its own. The Rhea Americana represents a commercial asset of no little importance, and the grey companies of these rather awkward-looking creatures are carefully watched now as they strut solemnly to and fro over the pastures. The feathers, it is true, cannot as a rule rival in quality those of the African bird, although occasionally some very fine specimens are to be met with. Indeed, it is said that the large, specially selected feathers are sold at prices that range from fifteen dollars to twenty-five dollars the kilo. The great majority of the coarser feathers are of little value, and are employed for dusting brushes and such similar purposes.

That the commerce in these ostrich feathers is of no little importance becomes evident when the shipments of the article are considered. In 1908 the exports of these to France, the United States, Spain, and Germany amounted to fifteen thousand kilos, while in 1909 they had increased to twenty-five thousand kilos. The numbers of the ostriches themselves, however, have tended to decrease of late years, and it is estimated that at the present time there are not more than fifty thousand in the country. Realising the danger incurred by this diminution, the Government is now taking measures towards the protection of these very useful birds, and there is no doubt that judicious legislation will cause their number to increase once more.

CHAPTER XXIV

INDUSTRIES AND NATURAL WEALTH

England's financial stake in Uruguay—British capital invested in the Republic—Its monetary importance compared with that of other South American nations—General commercial development of the country—A satisfactory outlook—Progress of grazing and agriculture—Marked increase in commerce—Uruguay's exports—Cured meats and frozen carcasses—Diminution of the former trade; increase of the latter—Reasons for the transformation of industry—An outcome of Brazilian protection—The breeding of fine cattle for the European markets—Present situation of the world's meat market—The British Isles as importers of meat—The position in the United States—A change from the rôle of exporter to that of importer—The increase in River Plate shipments—Closeness of touch between South American and English markets—Probable admission of foreign meat into European countries—Intervention of the United States Beef Trust—Purchase of Frigorificos—Possible effects of a monopoly upon the producers—South American views on the subject—Favourable general position of the River Plate—The balance of power in beef—Extract of meat—The Lemco and Oxo Company—Ramifications of the enterprise—The town of Fray Bentos—Agriculture—Wheat—Maize—Barley.

The financial interest that England possesses in Uruguay is not generally realised. As a matter of fact, the amount of British capital invested in the Banda Oriental amounts to over forty-four millions of pounds sterling, and there are thus only two nations, Argentina and Brazil, that possess a greater share of the total of those funds invested in the South American continent. To the ears of the majority, it must be admitted, the names of Chile, Peru, Venezuela, and Colombia sound more familiar than that of the country with which we are at present dealing. Yet in the matter of these investments Chile alone can approach the status of the small Republic on the River Plate, and, indeed, falls behind it only to the extent of a few hundred thousand pounds. Peru, however, is interested to scarcely more than one-half of the extent, while Venezuela, the next in order, cannot lay claim to one-sixth of the amount.

A comparison such as this will show the real financial importance that Uruguay represents to England, and, such being admitted, the condition of its commerce must be a matter of proportionate interest. To deal first of all with the general commercial development of the country, the outlook is undoubtedly satisfactory. In order to obtain the broadest possible survey of the situation it is necessary to lump together the national imports and exports. Taking a recent number of five-yearly periods, the results obtained are:

The dollar quoted in this table—and wherever this unit is employed throughout the book—is, it should be explained, the Uruguayan gold dollar, the rough value of which may be estimated at four shillings and twopence.

This steady development of commerce is not a little striking in view of the fact that up to the present only a very small percentage of the resources of the country have been brought to bear. It is true that the chief national wealth is likely, in the future as in the past, to remain centred in the rich natural grazing lands. But the progress of agriculture is now such that this branch of industry cannot well fail in the course of a few years to rank as a moderate second in importance to the business of grazing. Moreover, the development of this latter itself is only now being proceeded with in a manner worthy of the great resources that exist. The marked increase in the general commerce that is evident between the years 1899 and 1908 is due to a very large extent to the introduction of modern methods into the estancia life of the country.

It is necessary now to turn to a more detailed consideration of Uruguay's exports. The chief of these, as has already been explained, is represented by live stock, and by meat in various forms. Of recent years these particular branches of industry have been undergoing a certain amount of transformation. For generations, indeed for centuries, Uruguay has represented the chief source of Brazil's supply of animal food. Not only were the herds of cattle and flocks of sheep driven northwards with ceaseless regularity across the frontier, but the millions of bales of dried beef flowed along the same channels too.

Recent events have caused a certain diminution in this commerce. With the course of time Brazil has become more and more desirous of seeing her own southern and comparatively temperate provinces more liberally stocked with cattle. With the idea of fostering the local grazing industry, the northern republic has increased the duties upon both imported cattle and meat. The immediate result naturally proved unfavourable both to Uruguayan graziers and saladero owners. In the end, however, the outcome has proved beneficial rather than detrimental to the landowner. As may be imagined, for the manufacture of tasajo a high grade of cattle is not necessarily required. The secret of the actual quality of the meat is to a great extent lost in the dried and hardened bales of the preserve. Moreover, in order to suit the taste of local consumption in Brazil a far slenderer class of animal was necessary than the fattened type that the colder climates demand.

Thus, when it became necessary to make up for the deficit in these neighbourly exports by the opening up of fresh markets and by catering for the overseas demand, one of the first means to be taken in hand towards attaining this end was a yet more close attention to the question of a quality of meat suitable for European consumption. There were many who foresaw numerous difficulties in attaining to this standard, principally owing to the comparative absence of alfalfa in the land. It is true that this fattening lucerne thrives only in limited areas of Uruguay. But to what extent the excellent pastures of the land have made up for this disadvantage is plain enough from the amount of frozen carcasses now shipped to Europe. The situation as regards the export of pastoral products has, in consequence, become improved. Less dried meat and fewer live cattle are sent to Brazil, but the deficiency is more than counterbalanced by shipments of a superior order to the new markets now established in Europe.

The present situation of the meat markets throughout the world has reached so vitally important a stage that a few comments on the position cannot well come amiss in view of its inevitable direct influences upon Uruguay, and the similar stock-raising countries. Naturally enough, the primary centres of interest are to be found in the United States, and in its Beef Trust. Ere coming to this point, however, it would be as well to review the general situation.

Until the present moment the British Isles have been the chief importers of frozen and chilled meat from both North and South America. The demand has, naturally enough, shown an annual increase corresponding with the growth of the population. A similar state of affairs has, of course, existed in North America, but here the increase of the inhabitants has been so rapid and so overwhelming that the breeding of cattle has been entirely unable to progress in the same ratio. The result of this is that the United States can now produce only a comparatively insignificant surplus over and above the quantity of animal food that is required for consumption by its own inhabitants. Of late, therefore, the shipments of North American beef to the British Isles have decreased with a rather startling celerity, and there can be no question that in the near future the trade will have ceased altogether. Exactly when this will occur—whether in two years or half a dozen—it is impossible for even the experts to tell, since so many elements of the unexpected enter into the question. But that it will come about is certain, and it is, of course, equally inevitable that the conclusion of the period of exportation will mark the beginning of another era when it will be necessary for the United States to import her animal food supply from countries outside her own frontiers.

In the meanwhile Argentina has stepped into the gap that North America had of necessity left vacant, and the establishment of its frigorifico will now enable Uruguay to take a hand in this business of shipping. The River Plate countries are undoubtedly in a position to cope with the situation for an indefinite period of years, although its effects are already evident to a certain extent upon the local markets of Argentina. In the latter country I have been present at the stockyards in November when the herds of cattle that had arrived from the Campo were being sold. The faces of those estancieros who were present were beaming, for prices were ruling quite exceptionally high. The reason lay in the demand for the London Christmas beef that had sent its stimulus all this distance—an emphatic proof of the closeness of touch that now obtains between the River Plate and the British Isles.

Were the position to begin and end at this point it would be simple enough. Some developments, however, have occurred of late that render the outlook for the future far more complicated. There seems very little doubt that the time will come when England will no longer enjoy the practical monopoly of imported beef. The desire for the admission of this commodity in several of the great European countries is becoming more and more accentuated, and it is highly probable that the agitation that is now being carried on in favour of this new departure will eventually result in the breaking down of the barriers that at present oppose the trade. It is, of course, impossible to estimate the full extent of the consequences of a move of the kind, but that it must cause a rise in the price of beef in the English markets is inevitable.

In the face of these possibilities the prospects of the River Plate countries are, of course, more favourable than ever before. With the markets of Europe open to their cattle and meat, the added stimulus to the industries of these countries cannot fail to be enormous. But here again an element has come into being that, although it will have no effect upon the industry, taken as a whole, must necessarily threaten many of the interests involved. The Beef Trust of the United States has been keenly alive to the great pastoral developments in South America. Accurately foreseeing that the importance of the present day is merely a prelude to what is to come, the great corporation has now descended wholesale upon the shores of the River Plate, has already bought up a number of frigorificos, and it will be through no want of endeavour of its own if it does not sooner or later acquire the remainder.

I have no desire to tilt against the Beef Trust, which is very probably an excellent institution, but one that, since it openly lays no claim to a purely philanthropical policy, cannot be expected to safeguard the welfare of concerns that do not tend towards its own advancement. Should this corporation, therefore, attain its present object of securing the frigorificos, and the consequent monopoly of the purchase of cattle for export, the actual producers of the live stock will find themselves face to face with a situation of which they have previously had no experience. It is quite possible that it will suit the corporation to buy the cattle at prices similar to those which now obtain—or it may not, since it is well known that the estanciero continued to exist in a more or less affluent fashion when his cattle sold at lower rates than is the case at the present day.

In any case the matter seems to be taken fairly lightly in the South American countries most concerned. The prevalent idea is that, should the danger be realised, it is easy to legislate against trusts—a theory that may, or may not, be correct. Putting aside for the moment, however, these possible complications, it will be clear that the position of the River Plate countries as regards the shipment of their beef is quite exceptionally favourable. So much so, indeed, that it is not without the bounds of possibility that the spread of agriculture may at some future period receive a check in favour of the purely pastoral industry. For the wheat and maize-producing lands are considerably in excess of those that raise cattle in sufficient quantities for serious export. Fresh areas suitable for wheat-growing, moreover, are continually being lit upon, whereas the discovery of new grazing lands is obviously more limited. It is true that our own colony of Rhodesia promises to take an important share in the cattle-breeding industry—a promise the fulfilment of which may be anticipated with confidence. With this exception, the countries of the River Plate will undoubtedly hold the balance of power in all matters appertaining to that very, very important article beef.

In addition to that of the carcasses themselves, another very important product of Uruguay is the extract of meat produced by the Liebig (Lemco) Company. Fray Bentos was the original home of this industry, with which the place has been associated since 1865. Of late years the Lemco interests have spread far beyond their original frontiers, for of the total of nearly five million acres at present owned by the concern many hundred thousands of acres exist in Argentina, Paraguay, and even in Rhodesia. As a matter of fact, the working power of the recently constructed factory at Colón in Entre Rios, upon the Argentine bank of the river, exceeds that of Fray Bentos. Nevertheless, the importance of this latter place will be evident enough when it is explained that in 1910 over one hundred and seventy-nine thousand head of cattle were slaughtered there in order to provide the necessary extract of meat.

The Lemco town of Fray Bentos is by way of being a model specimen of its kind. The establishments of the managers here, and the dwellings of the workmen are each admirable of their kind, and very replete with the comforts and luxuries that appertain to the various walks of life. The streets, moreover, are broad and well-engineered, and the schools and various institutions denote a liberal spirit on the part of the directors of the concern.

To turn from the meat industry to that of agriculture, we come, naturally enough, to a far less imposing condition of affairs, but one, nevertheless, that is increasing in importance each year. The chief cereal of Uruguay is wheat. At the present moment nearly three hundred thousand hectares have been devoted to the raising of this crop. Although the discovery of fresh lands suitable to the production of wheat has caused this particular area to increase, the main centres in cultivation up to the present have been rather strictly localised. The provinces that contain the really important wheat districts are those of San José, Colonia, and Canelones. The lines of railway, however, that have recently been constructed to the east and west of the Republic are opening up much land that is undoubtedly admirably suited for the production of this cereal. Wheat, it may be explained, is a crop the nature of which renders it more immune than the majority from the attacks of the voracious locust. By the time the all-devouring insect is wont to make its appearance, the ears of the wheat are as a rule hardened to a sufficient extent to render them unpalatable. Wheat therefore, frequently escapes, wholly or in part, where the maize crop suffers severely from the ravages of the locusts.

The production of maize is only very slightly less than that of wheat. The yield of this commodity in 1909 amounted roughly to one hundred and seventy thousand tons, while that of wheat fell just below two hundred and thirty-four thousand tons. Generally speaking, it may be said that the districts where wheat is grown are suitable for the cultivation of maize, and thus in Uruguay the two are wont to flourish to a large extent side by side. It is worthy of note, however, that whereas the wheat area has remained more or less stationary, although its development is now practically certain, that of maize has increased to a marked extent—from one hundred and forty-five thousand hectares, in fact, in 1900 to over two hundred thousand hectares in 1909.

The production of oats and barley—although that of either still remains comparatively insignificant—has increased rapidly during the past decade. In 1900 the output of oats only just exceeded thirty tons, whereas in 1909 it had amounted to nearly seven thousand tons. Barley has a similar, although a somewhat more gradual, tale to tell, since in the corresponding period its production rose from four hundred to three thousand tons.

CHAPTER XXV

INDUSTRIES AND NATURAL WEALTH (continued)

Minerals—Past obstacles to the proper working of mines—Gold—Auriferous prospects—Situation of the goldfields of Uruguay—Past and present workings of the mines—Influence of politics on labour—The Corrales mines—Manganese—Districts in which iron ore is met with—Mineral centres—Minas—Maldonado—Silver—Copper—Marble—Gypsum—Slate—Sulphur—Asbestos—Precious stones—Diamonds and rubies—Jasper—Agate—The amethyst and topaz—The water-stone—A peculiarity of Uruguay—Viticulture—Date of the introduction of the vine—Vicissitudes at the start—Subsequent rapid progress—Vineyard area of the present day—The introduction of suitable plants—Countries of origin—Production of grapes and wine—Departments most suitable to the industry—The seal fisheries—Originally carried on by the Indians—Habits of the seals—Development of the industry—Government grants—Conditions and concessions—Number of skins obtained since 1873—Islands inhabited by the seals—Method of killing and curing—Waste of seal life—Suggestions for the improvement of the industry—Scientific measures necessary—A diplomatic incident in connection with the seal fisheries.

It is quite possible that Uruguayan minerals may yet cause something of a sensation throughout the world. In the past her deposits of the kind have lain comparatively undisturbed, owing to similar reasons that have hampered the industry in Peru and Bolivia—want of transport facilities. With the rapid spread of the railways, however, these disadvantages will shortly become minimised, when no doubt considerably more will be heard of the mineral wealth of the country.

Let it be clear that I am not making the following remarks in the character of a mining expert. The latter profession, according to vulgar report, is at times not averse to fiction; but the gap that separates an author from a goldfield is uncomfortably wide. This apparently frivolous foreword is not altogether uncalled for, since to speak with undue optimism of the presence of the yellow dross is dangerous to the layman writer, and profitable only to the expert. Nevertheless, the auriferous prospects of Uruguay, so far as such can ever be assured, give no small promise of success.

The chief goldfields of Uruguay lie in the northern province of Rivera, and are situated in the neighbourhoods of Corrales, Cuñapiru, and Zapucaya. A district here of from thirty-five to forty miles in length and of about seven miles in breadth is thickly interwoven with auriferous reef. The knowledge of the wealth in this particular spot is no new thing, as ancient superficial workings on the part of the Indians prove. From that time the mines had apparently fallen into disuse until comparatively recent years, when they were in a sense rediscovered by a French company. The concern, it is true, met with a consistent lack of prosperity. The actual working is said to have been carried on in a fashion that was both half-hearted and old-fashioned. The period, moreover, was a peculiarly disturbed one from a political point of view, and the province of Rivera has always been famed as the birthplace and chosen haunt of revolutionary movements. An English company, however, has now assumed control of the mines, a modern plant is at work, and gold is actually being yielded.

Such are the bare historical facts of the chief mines at Corrales. According to the experts, reefs have been met with that will yield five ounces to the ton, and, should the reefs prove deep, the prospects are practically limitless. But this remains to be seen. In the meanwhile the earth has promised! But its promises, like its crust in parts, are sometimes of pielike material. In this case, should the anticipations be realised, there will be no little stir in the province of Rivera—and elsewhere.

In the neighbourhood of these mines are enormous deposits of manganese that are just now beginning to attract special attention. The quantities of iron, too, that are to be met with here are rather exceptional. Rivera, however, constitutes by no means the sole mineral district of Uruguay. The provinces of Minas, Artigas, Maldonado, Salto, Paysandú, Montevideo, and San José are all more or less well endowed with the various species.

Of these remaining centres Minas is probably the richest. Traces of gold are to be met with here, although in a minor degree, and silver, copper, marble, gypsum, slate, sulphur, and asbestos would probably all repay organised handling. Minas also produces lead, but this, too, has suffered from considerable neglect. Indeed, I believe that one of the very few ransackings of the mines that have occurred was for the purpose of manufacturing bullets for the armies during the revolutionary and civil wars at the beginning of the nineteenth century.

The province of Maldonado contains copper, iron, marble, gypsum, sulphur, and slate, and here, too, the mineral field has remained almost unexploited up to the present. Montevideo holds manganese and iron, Salto copper, Florida iron, Paysandú copper, and San José asbestos. These, at all events, constitute the principal centres of the minerals specified, although there are others of comparative insignificance in many other districts.

Uruguay, too, is by no means without its precious stones. Odd rubies and diamonds have been met with from time to time, and the jasper and agate are fairly common. The stones, however, that obtain in really considerable numbers, and that are consequently of the chief commercial interest, are the amethyst and the topaz. Of both these some magnificent specimens are to be met with in the Province of Artigas. These very handsome stones are now attaining a distinct popularity amongst the visitors to Montevideo. To those who have not the opportunity of visiting the remote province of Artigas itself, it may be mentioned that Agosto Wild, in the Calle Veinte Cinco de Mayo in Montevideo, is a most trustworthy and reliable dealer.

A peculiarity of Uruguay is the water-stone that is met with in the neighbourhood of Salto. This consists of a rounded portion of stone, more or less knobbly and opaque or smooth and transparent as the case may be. In the latter the water that is enclosed within it is almost as plainly seen as though it were held within rather dull glass, and with every movement of the crystal-like material the motion and bubblings of the water are very clearly evident. There have been some mental gymnastics ere now concerning the advent of the apple within the dumpling: but the presence of this water within the stone suffices to puzzle the more scientific minds. So far as I am aware, no adequate explanation of the phenomenon has yet been vouchsafed.

Viticulture is one of the more recent industries of Uruguay. It has now, however, obtained a firm hold, and the future of the commerce is distinctly promising. It was as late as 1860 that the first tentative plantings of the vine occurred, and it was not until 1875 that a couple of really important vineyards were established, one at Colon and the other at Salto, in the north-west of the republic. Even then the undertaking did not meet with immediate success, and it was some while ere the type of plant was discovered that would lead to the most favourable results in the local soil.

This, however, once discovered, the progress of viticulture has proceeded almost without a check. The rapidity of its increase may be gathered from the following figures. In 1880 the number of vineyards in Uruguay was 16; in 1890, 181; whereas in 1895 the total had swollen to 748. Since that time the industry has continued to spread. Thus in 1897 the vineyards had increased in number to 824, while in 1905 the viticultural census showed the very respectable total of 1,453.

It is only natural that this great increase in vineyards should have been accompanied by the introduction of a greater variety of suitable plants. The types of vines that now flourish in Uruguay hail from France, Italy, Spain, Portugal, and Germany, the importance of the various kinds being in accordance with the seniority rendered them in order here. Of the French species introduced the most popular are the Sauvignon, Cabernet, Pinot Noir, Castel, Merlot, Verdot, Semillon, Sauvignon blanc, Clairette blanche, and some half-dozen others; of the Italian the Piamonte, Grignolino Negro, Asprino, Docetto, Leonarda, Lambrusca, Cipro Negro, and Verdea. The favourite Spanish varieties are the Cariñana, Morrastel Bouchet, Murviedo, Malvosia Blanca, Pedro Ximinez, while from Portugal have been introduced the black and the white grape, and from Germany the Riesling.

The cultivation of the vineyards is attended by the greatest expense in the south of the country, where the comparatively humid climate lends itself more readily to the propagation of the various diseases to which the vine is subject. Here the American grape, owing to its immunity from phyloxera in a great degree, flourishes admirably. The departments in which viticulture is chiefly carried on are at Montevideo, that possesses a vineyard area of 1,426 hectares; Salto, 719 hectares; Canelones, 699 hectares; Colonia, 490 hectares; Maldonado, 330 hectares; Paysandú, 177 hectares; Florida, 132 hectares; Soriano, 125 hectares; and Artigas, 97 hectares. In the remaining departments the viticultural industry is of small account.

The later increase in the actual production of grapes and wine will be evident from the following table:

The sealing industry of Uruguay is of considerably greater importance than is generally supposed. Mr. C. E. R. Rowland, the British Consul at Montevideo, is the leading English authority on the subject. The following article, then, which he has kindly supplied, may be taken as authoritative:

The aboriginal races of this part of South America were known to have resorted to the coast-line during the summer months for their fishing expeditions, the Indian race of the Charrúas occupying the coastline from above the river town of Colonia to the borders of the Brazilian frontier at al Chue, on the Atlantic.

Traces of their encampment grounds are still to be found along this coast, principally from Maldonado to the Brazilian frontier, where many of their primitive weapons and utensils are still to be met with, and also the remains of what must have been their watch-fires, mounds of burnt bones, containing amongst the rest bones and teeth of seals which crumble under touch.

This coast in these former times evidently abounded in seal life, as the natural conditions offered every attraction to these now timid animals. A storm-beaten coast, with plentiful havens, in the mouth of a large estuary abounding with fish, enticed the seals to the shore and made them an easy prey to the Indians, but time has driven them to the present rookeries which now afford them protection.

The first record of the sealing industry on the coast of Uruguay having been put to practical purposes is that in the year 1834 they were rented by the Government for the period of ten years to Señor Francisco Aguilar for the sum of $80,000. The condition was imposed that he should erect a suitable edifice to be used as a public school in the town of Maldonado. This latter condition was altered insomuch that the building, when completed, was used as a chapel, and has remained so ever since.

From the termination of this contract up to the year 1858 this industry was worked by various tenants, but in this latter year the Government passed a Law imposing a tax of 20 centavos per skin and 4 centavos per 10 kilos of seal oil, to be paid in equal proportions to the municipalities of Maldonado and Rocha Departments, on whose coasts the islands are situated. A further Law in the year 1896 doubled these taxes, which were destined by the said Law to be applied by the municipal authorities to the public works and the creation of artificial parks.

The following tables will show the number of skins produced from these islands since the year 1873:

The islands inhabited by seals on the coast of Uruguay are:

The Castillos Rocks are very difficult of access on account of the heavy swell breaking on them. The Polonio group consists of three small islands lying directly off the cape of same name, and are called Raza, Encantado, and De Marco.

The sealers' huts and boiling-house are on the mainland in a small bay to the north-east of the lighthouse. The seals when killed on these islands are skinned with the inside lining of fat attached and are brought on shore, when the inside lining of fat is taken off and boiled down. The dead carcasses are left on the island, and in my opinion the presence of so many dead seals destroyed by human agency must have some effect upon those animals frequenting these islands, making them wary and cautious in returning again to a place where the remains of their companions are so visible.

Coronilla Islands consist of two large islands, covered with herbage, and one small "islote," or reef, generally awash with the sea.

On the largest of these islands the sealers live during the season for the purpose of salting the skins and boiling down the carcass of the seals for oil. At the end of the season the skins and oil are brought into Montevideo by tug-boats.

On Lobos Islands the killing is carried out in a different manner. A large corral is erected on the middle of the island, and, when seals are plentiful and the wind and weather are specially favourable, a drive is made by about fifty men with clubs, who, getting between the seals and the sea, drive them gently towards the corral. This is done without much difficulty, and perhaps two thousand may be enclosed in one day. Once enclosed they are allowed to wait until all preparations for killing are complete. They are then driven out in batches of twenty or thirty to the skinning-shed and boiler-house, where they are dispatched at leisure.

By this mode of killing I am inclined to think that there must be a great waste of seal life from an absence of a proper knowledge as regards the animal killed. No selection is made from those driven down, and every animal is killed even if the skin is worthless or mangy. The majority of the animals slaughtered are females, consequently the stock of production is gradually lessened. Were a skilled sealer employed for the proper classification of the animals before killing, it would do away to some extent with the extermination of seals whose skins at that season were practically worthless.

On the Paloma Islands very few seals are killed.

The seizure of the Canadian schooner Agnes G. Donohoe in the year 1905 on the alleged grounds of sealing in jurisdictional waters—that is, within the three miles limit—caused the intervention of the British Government. The master and men were under arrest for a period of ten months, but the case, diplomatically handled at that time by her Majesty's Representative, Mr. Walter Baring (Minister), and Mr. Robert Peel (Chargé d'Affaires), was finally settled with satisfaction to both Governments by the tactful procedure of his Majesty's present Representative, Mr. Robert J. Kennedy, Minister Plenipotentiary and Envoy Extraordinary.

CHAPTER XXVI

COMMUNICATION AND COMMERCE

British enterprise in South America—The various industries controlled—The railways of the Southern continent—A remarkable record—The opening up of new lands—Some possibilities of the future—Sound basis on which the extension of the lines is founded—Products and transport facilities—Probable influence of communications—Uruguayan railways—A high standard of enterprise—Comfortable travelling—Some comparisons between Uruguay and Argentina as railway countries—Level country versus hills—Stone versus alluvial soil—Questions of ballast—Importance of the new ramifications—Railway construction in Uruguay—History of the lines—Government obligations—Mileage and capital of the companies—Interest paid on capital—Various railway systems—Areas served—The Central Company—Sketch of lines and extensions—Important developments—The communication with Brazil—Financial position of the Company—Midland Uruguay Railway—Development and extension of the line—Receipts and expenses—The North Western of Uruguay and Uruguay Northern Railway—Montevidean tramways—Local, British, and German enterprise—Steamer service of the River Plate—The Mihanovich line—Ocean passenger traffic—Montevideo the sole port of call—The Royal Mail Steam Packet Company—The Pacific Line—The Nelson Line—Other British companies—Position of British exports—Sound consular advice.

British enterprise throughout South America is admittedly remarkable. If one except the retail and local trades that are carried on by the native-born inhabitants of each republic, or by the Spaniards, Basques, Italians, and Turks, each of which have taken some particular trade under their own protection, there is probably not a single branch of industry in which the British are not interested in a more or less important degree.

From mining and banking to farming and general commerce, the scope is sufficiently broad. In no other kind of enterprise, however, has intelligence and skill been so freely lavished as upon that of the railways. The British have not the sole monopoly of these great undertakings, it is true. There are the local Government lines, numerous French railways, and others of various nationalities that are ably served and administered. Yet almost every one of the most important lines throughout the entire Southern continent owes its existence to British capital, and is managed by British officials. The record is a remarkable one, and the full tale of its magnitude has yet to be written. It is true that in many branches of industry the ratio of British increase has not been in proportion with that of other countries—a falling off that may be inevitable, but that in any case is regrettable. Fortunately, this is not the case with the railways. Indeed, when the progress that is now being made is taken into consideration, it becomes evident that the results that must ensue within the space of a few years cannot well fail to affect the entire world.

Of the feats of this kind that are at the present moment being achieved some of the most important are concerned with Bolivia, Paraguay, and the hinterland of Brazil. The opening up of many of the hitherto inaccessible regions of these countries means more than the enclosing within the fold of civilisation vast areas of rubber, timber, and general agriculture. It promises, in fact, some revelations in the way of minerals and mines that, although the possibility of a disappointment must never be lost sight of, are likely enough to prove of an astonishing nature.

The tales of gold in the untravelled lands where the Indian still holds sway do undoubtedly not emanate merely from the imagination of the few travellers who have penetrated within certain of the districts. The reluctance of the aboriginal to disclose the spots from which they derive the precious metal is an acknowledged phase of his character. But it is not solely upon the unwilling testimony of the Indians that such hopes are based. It is well enough known that when the expulsion of the Jesuits occurred, and when many of the remoter districts in which they had established precarious missions returned to a state of savagery and seclusion, numbers of the mines that were even then known were abandoned when in the full flush of their yield—a yield that the primitive native implements could never make complete.

But it is not in anticipation of such developments as these that the railways have been built. The ordinary products of the countries in question are more than sufficient to demand their existence. The possibility of greater mineral fields than are at present suspected is merely a side issue in the general scheme. The influence of steam transport, however, upon many of the silver-mines cannot fail to be marked, since the utter want of transport facilities now renders imperative an astonishing number of mines of this kind the productive power of which is very great indeed.

The Uruguayan railways form no exception to the prevailing South American rule. The three companies in existence in that Republic are all British, and the standard of each is as high as that of the others in the remaining republics. Although the enterprises naturally enjoy lesser advantages in the way of skilled labour and technical conveniences than those here at home, there can be no doubt that the degree of comfort enjoyed by the traveller on a Uruguayan line compares very favourably with that experienced on an average British railway. The service and observation of punctuality are both to be commended, while the dining and sleeping cars are not only admirable of their type, but extremely well adapted to the needs of the country.

The natural facilities that the Uruguayan country offers for railways differ considerably from those of the Argentine. In the central provinces of the latter many hundreds of miles may be travelled without any gradient whatever becoming apparent. The absence of streams here, moreover, obviates almost entirely the necessity for bridge building. It has already been explained that the characteristics of the Uruguayan Campo are entirely different. Although it possesses few hills of any really imposing height, its stretches of dead level ground are equally rare. Thus, although the gradients may be gentle and sufficiently easy, they are almost continuous. In some places, moreover, the rise and fall of the line is necessarily accentuated, and even abrupt—at all events, compared with the neighbouring areas.

Although, however, Uruguay may not be quite so favourably situated for railway purposes as regards its levels, it possesses one very important advantage over Argentina. In the central and richest provinces of the latter one of the most serious drawbacks lies in the total absence of any local material with which to ballast the track. For hundreds of miles on all sides no stone—not even the merest pebble—is to be met with, since the land consists of nothing beyond the rich, alluvial soil. Thus, if stone be required for the perfection of the tracks, it is necessary to import it from afar, and the haulage of the material inevitably forms a weighty item in the cost and upkeep of the line. In this respect Uruguay is far more favourably provided for. Stone abounds, not only in certain districts but throughout the country—although, of course, there are many centres where the quality of the material is far superior to that of others. Thus the question of ballast and embankments is solved in a very simple fashion here, and in a land of numerous rivers and streams the construction of stone bridges is made possible.

As regards the present position of Uruguayan railways, it is impossible to over-estimate the importance of the new ramifications that are now spreading through the country. Uruguay contains no mysterious hinterland, it is true. But, although every corner of the Republic is known, the resources of many of its regions have of necessity remained quite untapped for want of the railway communication that was essential for the transport of the produce in whatever shape or form it might emerge from the soil.

I am indebted to Mr. V. Hinde, the secretary of the Midland Uruguay Railway, for the following information concerning the railways of the country:

The construction of railways in Uruguay may be said to have commenced in the year 1866, when a concession was granted for a line from the capital (Montevideo) to Durazno, a distance of 130 miles. The construction of this line was followed by the building of a short line from the city of Salto towards the frontier of Brazil. In 1877 an English company, the present Central Uruguay Railway Co., Ltd., was formed to take over the former and complete the line to the town of Rio Negro, which extension was finished in 1886.

In the meantime the Uruguayan Government had devoted considerable attention to the question of railways, and in the year 1884 a law was passed by the Chambers embodying a definite scheme of railway communication with various parts of the Republic, the executive being authorised to contract for lines as outlined, and to guarantee an income equal to £560 per annum per mile of line for a period of forty years. A result of this enactment was the formation of several companies in England, and railway construction was rapidly proceeded with. By the year 1891, 1,000 miles of line were opened for traffic. In respect of which some 670 miles enjoyed the Government guarantee, equal to 7 per cent. on a capitalisation of £5,000 per kilometre.

At this point, however, further development received a check by the Government finding it necessary to rearrange its obligations. This rearrangement took the form of a reduction of the interest on the External Debt, including railway guarantees, from 7 per cent. to 3¹⁄₂ per cent., the service at this reduced figure being secured on 45 per cent. of the Custom House receipts specially hypothecated. Punctual payment of guarantees at this rate has always been made.

In 1889 the Central Uruguay Western Extension Railway Company was formed to construct a line from San José to the towns of Mercedes, Sauce, and Colonia. This line does not enjoy a Government guarantee, and reverts to the Government in the year 1862.

The railway system of the Republic to-day amounts to some 1,432 miles of line opened for traffic and 78 miles in course of construction.

The following shows the capital of the respective companies and length of lines: