the trees at harvests), being somewhat skilled, earn $1.20 to $1.60. There are no laws for protection of either laborers or proprietors in their respective relations.

The chief impediment to the rapid development of cacao planta. tions in this country is the system of peonage conciertos, or slavery in all but name, which is in vogue, whereby laborers are bought and sold openly for debts. There is scarcely a farm in this country that has not invested a large capital in advances to laborers. These advances are never expected to be repaid, nor is interest charged. The strong feeling of caste that exists between the wealthier and poorer classes is largely due to this system. The proprietors claim that the debts of the peons assure them a labor supply in a country where it is not plentiful, efficient, nor reliable; but large sums must be lost annually in interest, deaths, and desertions.

The laborer earns scarcely enough to feed, clothe, and house himself. No one takes any care to instruct him or to instill in him ideas of self-respect. He goes barefoot from the cradle to the grave, and is put to work as soon as he is strong enough to carry a machete. From their situation, it is hardly surprising that these laborers are blamed for insubordination, laziness, and other faults and vices. Many things contribute to brutalize them; and yet this is the class that produces the wealth of Ecuador.

ENEMIES OF THE CACAO TREE.

The enemies of the cacao tree are the ardillas, the monkeys, many species of small birds which attack the pod, and various parasites, all but two of which are as yet unclassified. These two are the "mosquilla" and "mancha." Continued vigilance protects the fruit from the parrots, animals, etc., but little has been done to extirpate the parasites of the trunk. There is but little cooperation among the cultivators; otherwise, by means of a small annual contribution, the diseases of the tree could be systematically studied, proper treatment learned, losses avoided, and gains increased each year. CACAO PRODUCTION OF THE WORLD, 1897.

Mexico and the Central American republics produce only enough.

for local requirements. Ecuador's production was among the provinces as follows:

Los Rios......

Guayas.....

El Oro.......

Manavi.....

distributed

Tons.

12,000

4,000

3,000

2, 200

800

22,000

Esmeraldas.

Total........

The production in Ecuador has been increasing since 1836, as the following table will show. The total crop in 1899 will be nearly

The consumption has increased notably, and at a rate exceeding that of coffee. Prices will remain firm for an indefinite time, by reason of the long period necessary to bring new trees to maturity.

Cacao is the principal element in chocolate and various kinds of confectionery. As an article of food, it is very nutritious, healthful, and stimulating. The "butter" of cacao is well known in medicine, and is used in the cure of skin diseases of all kinds with good results. The shells of the seed, roasted and ground, are used for "cocoa," a drink well known in the countries of the temperate zone, but used here only by the poorer classes. The pulp of the pod is used as fodder for animals. The popularity of cacao rapidly increases wherever it is once introduced, and neither fluctuations in prices nor attempts to substitute other products supposed to have the same or better qualities have affected its use in localities where it is once well known. The active principle of cacao is "theobroma," a powerful organic reagent.

FIELD FOR ENTERPRISE.

The consumption

The possibilities of the cacao market are vast. has not yet begun, or at least made any headway, in the Asiatic countries, among which Japan, Persia, and British India may some day become important consumers. Chocolate is scarcely known in Oceanica, the British colonies, or Hawaii. Even in Europe, Russia, Turkey, and Greece are but recently becoming familiar with the product. As there has always been a ready market, no special effort has been made to extend the demand to new countries.

While some progress has been made in the utilization of the shell and pulp, no attempt of importance has been made to manufacture the product for export, although there is plenty of vanilla and sugar available for the preparation, and the profits would be considerable. Ecuadorian cacao, being somewhat bitter, has an advantage over that of other countries in assimilating a larger amount of sugar in the manufacture of chocolate, thereby reducing the cost of the product.

The consumption of cacao is increasing at the rate of 5 or 6 per cent annually, and inside of eight or ten years the demand will be greater than the supply. The attempts to introduce cacao on a

large scale in various other tropical countries has not been attended with favorable results. In no other part of the world can its cultivation be brought to the flourishing condition which prevails in Ecuador, where there is still a vast extent of land suitable for new and productive estates. All that is necessary is capital and energy, which will be welcomed and which will surely come when the railway to Quito is built, for no line of agriculture shows such tempting

Prior to December, 1897, exchange rates on London and New York fluctuated with the price of silver. In November, 1897, the bankers and merchants determined to establish a fixed rate of exchange, pending the adoption of the gold standard by the Ecuadorean Congress, which occured twelve months later. Since that date exchange has been fixed at 100 per cent premium on London and 107 on New York, making the sucre equivalent to 2s., or 48.665 cents gold.

CHARGES ON CACAO IN TRANSIT, GUAYAQUIL, ECUADOR. One of the leading exporters of cacao gives the following figures, being the regular scale charged on lots bought on account:

Sucres.

Sack filling, at 10 cents per sack......

Sacks, at 60 cents per sack...........................

Embarking, at 8 cents per sack........

Stamped paper......................................

Export tax, at 1.6904 sucres per quintal.......................

Fire insurance on supposed valuation of 25 sucres per quintal,

at one-half of one per cent.........

Commission, at 4 per cent...........

Total..........

Add price of 17,680 pounds of cacao at 25 cents (Spanish)...................... 4, 420. 00=2, 150.99

This is exclusive of charges for marine insurance and freight.

GUAYAQUIL, June 28, 1899.

PERRY M. DE LEON,

Consul-General.

PROPOSED PORT AT MONTEVIDEO.

On the 22d instant, the official paper of the Republic of Uruguay published the report of the Minister of Public Works relative to the proposed new port for Montevideo. The report was approved by the President and his cabinet and is now being considered by the General Assembly. The document is a ponderous one, and for the present I will give only the following epitome of its principal features:

Dr. Pena, the Minister of Public Works, states that when he came into office in March last, and the problem of the port was first formally presented to his consideration, he found that, by the operation of the law of July 14, 1894, amended by that of September 30, 1895, the technical part of the problem had already been very thoroughly dealt with, extensive surveys having been made by the commission appointed for the purpose under the direction and with the assistance of the eminent engineers Herr Kummer and Mr. Guérard. Herr Kummer was director of the hydraulic section of the Ministry of Public Works in Prussia and privy councilor and relator in the German Ministry of Public Works. Mr. Guérard was general inspecting engineer of roads and bridges in France, and director of the port works at Marseilles. The engagement of two such eminent specialists, who were assisted in their labors by the national staff of engineers, should place the Government beyond reproach as regards. the technical side of the problem. The result of these surveys was the scheme elaborated by Mr. Guérard, which had been subjected to ample public debate and criticism from every point of view. principal objections raised to the scheme had been reviewed at length