which they pay from 10 to 20 per cent per month. The Government would grant a charter to any pawn establishments that would fix reasonable rates upon money lent. (4) An American bank could conduct a large and profitable business in building houses, such as are constructed in the United States by building and loan associations. There are many new modern Many more would be erected reasonable terms and if the houses going up in all parts of the city. if the people could borrow money on architects did not charge such exorbitant prices. The bank could get a clause in its charter to build houses, in which case it would be necessary to bring its own architect. A house of one story, containing only seven rooms of ordinary size, costs $4,000 gold. A bank having its own architect could build such a house for $3,000 or less and make a handsome profit. Material and labor are cheap. (5) A penny savings department could be made a part of the bank, and would be liberally patronized by the people. (6) The bank could export hides and skins. It could easily buy them in the country and sell them to Europe, America, or Montevideo for a good price. (7) Oranges could be exported, not in the primitive way in which they are now shipped, but after the Florida manner-wrapped in paper and packed in small boxes. Many other fruits could also be exported. The Paraguayan oranges are in great demand in the countries south of here. Loans could also be made upon the agri cultural products of the country. (8) Large quantities of ordinary cotton goods are used, and a cotton factory could be erected and worked with profit. The Government would give the factory all possible encouragement in the way of protective duties, etc. Cotton grows very well in Paraguay. The stalk produces for two years—that is, when cut to the ground another springs up in its place, which is productive the second year. Discouraging advice will doubtless be given to capitalists by certain parties here who have capital profitably invested and do not want it jeopardized. Here is what the Secretary of Finance writes me: Let an agent representing American capitalists, with power to act, be sent here to negotiate with this Government on these matters, and their eyes will be opened to the wonderful riches of this country and to the excellent opportunities for the employment of capital. I would advise capitalists not to write any more letters, but to send a representative here to study the country, treat with the Government, and satisfy themselves. ASUNCION, July 31, 1899. JOHN N. RUFfin, Consul. BLEACHED COTTON GOODS IN PARAGUAY. Bleached cottons represent one of the most important importations of Paraguay. The trade in this line is not subject to the caprices of style. The goods are always in demand in both city. and country. England has captured the trade here in white goods, but I think that there are opportunities for our exporters to get a share of this traffic, if they would send a man to represent them or samples to be placed on exhibition. The marks of white goods most popular in this district are first and above all the "Estrella," or Star; second, the "Cometa de Betlehen," or Comet of Bethlehem, which is an imitation of the Estrella; third, "La Libertad;" fourth, "Bramante E," trademark F. K.; fifth, "Bramante Lavado Puro;" sixth, "Bramante Sin Egual," with a picture of a rooster as trade-mark; seventh, “El Pensamento," with a picture of a forget-me-not; eighth, "El Especialidad;" ninth, "Economica;" tenth, "Monumento Gloria a Colon;" eleventh, "Madras Estrella Lavado;" twelfth, "Escarabajo," with a picture of a spider as trade-mark. It will be seen that there are many kinds of bramantes, or bleached cottons, in this market. Trade-marks which seem to have religious bearings, like the Comet of Bethlehem, take very well here. QUALITY, WIDTH, AND PRICE. The mark Estrella is the leading one here. It is 76 by 80 threads to the square inch; width, 351⁄2 inches; length, 20 yards, or 18.29 meters. These goods should be marked in meters, because this is more convenient and profitable for the retail merchants, who buy by the meter and sell by the “vara," in which transaction they gain the difference-the meter being longer than the vara. The retailer pays $14 Paraguayan money (about $2 gold) for a piece of 20 yards. If the price could be lowered, so that the retailer could buy it for $1.75 or $1.80 gold a piece, this trade would be secured. The Comet of Bethlehem costs, for a piece of 20 yards, $1 gold. La Libertad, which is 30 inches wide, is bought for 2s. 10d. (69 cents) from English commission firms. IMPORTATION. Last year (1898) there were imported bramantes to the amount of 85,055 kilograms (187,546 pounds), representing a value of $68,044 gold. The duty is 80 cents per kilogram (2.2046 pounds). The people desire the lowest prices. While our goods show their superiority in texture, etc., after they are washed, their quality does not influence the people. They want something that looks well and at the same time feels well-a smooth, compact surface. They do not care if it is nearly all starch; after it has been worn or washed out, they buy a new piece, because it is cheap. The goods should always come in book fold, with the trade-mark covering the whole front, if possible. It should be in glaring colors, and the goods should have ribbon around them. The usual credit is for six months. ASUNCION, August 8, 1899. JOHN N. RUFFIN, Consul. TEXTILE PLANTS IN PARAGUAY. COTTON. Cotton grows in Paraguay all the year round. The land and climate are favorable for its growth. The cotton plant, after it has produced, is cut down, and from its root grows another plant. I am told that it is always better to plow up the plants, roots and all, at the end of each second year and plant anew, as finer cotton is the result. The Government is showing every possible interest in cotton growing. The Banco Agricola, a Government institution, buys all the cotton, giving $4 Paraguayan money (50 cents gold) for every arroba (25.35 pounds) with seeds and $13 Paraguayan paper ($1.82) for every arroba without seeds. The bank spent, in 1897, $15,025 in this line; of this, $7,131.30 was for implements, etc. The farmer can always have ready sale for his cotton. Several kinds of cotton have been introduced for trial, and they have produced satisfactorily; some of our plants have been giving good results. I would specially mention what is called here "Algodon Criollo Norte Americano." I inclose a few samples-one called "Algodon Colorado," or red cotton, and the other "Algodon Blanco," or white cotton.* SANSAVERDE. Sansaverde is a fibrous plant which grows to a considerable extent in Paraguay. It is black, but after having gone through the machine it comes out white and silky. Damp soil is favorable for its growth. It has no thorns, which facilitates its gathering. I do not send seeds, because they would be of no service. It is necessary to plant sprouts, as is done with the banana. I inclose a small sample of sansaverde. * The fiber-white, glossy, and strong-might be employed in imitations of silks. *Sent with copy of report to Department of Agriculture. CARAGUATA. This is another fibrous plant of more prolific growth than sansaverde. It grows better wild than cultivated. The hills are covered with it. It has many thorns and is difficult to gather. plant is cut down, and from the root springs a new one. The This plant is used for making heavy rope. It grows everywhere, awaiting the hand of the gatherer. A machine to separate the fiber, wash it, etc., would be welcomed here. ASUNCION, August 15, 1899. JOHN N. RUFFIN, Consul. SOUTHERN BRAZIL. I have just ended a journey through southern Brazil, and submit the result of my investigations. There is probably no land in the civilized world more interesting and less known than Brazil. Besides the facts that it is the country where nuts and Rio coffee come from, and that yellow fever rages there, very little is known among the masses abroad about the great South American Republic, which contains an area equal to that of the United States. In speaking of the character of Brazil and the Brazilians, it is impossible to generalize. The inhabitants of Brazil differ radically according to the latitudes in which they live and the race mixtures. of which they are the product. The Portuguese who came to Brazil after the discovery of the country and, later, the Spaniards intermarried with the native women, and the product of this Latin-Indian union is the "cabocle," so numerous in and so characteristic of the middle States of Brazil and of the great "hinterland" of the southern States-Matto Grosso and Goyaz-and the Republics of Uruguay and Paraguay. The introduction of negroes from Africa may have momentarily benefited the Portuguese pioneers in the northern States, but it has certainly not added to the ethical improvement of the Latin races struggling for existence on Brazilian soil and their cabocle offspring. The Dutch who came with their war ships and controlled the north of Brazil for a short time during the pioneer period have left no traces, except some buildings and harbor improvements; and only once in a great while you meet in the north a robust, tall, and somewhat stoical native with blue eyes and blond hair, strangely in contrast with his surroundings-a descendant of the Dutch invaders. They did not "mix" with the Latin pioneers or the cabocle negroides surrounding them. The black is now the dominant ele- Conditions are very different in the States of southern Brazil. There is life, vigor, and aggressive energy. While in the northern States, especially along the coast, the atmosphere is mostly moist, hot, enervating and often disease breeding, the three southern States-Parana, Santa Catharina, and Rio Grande do Sul-with the exception of a few coast towns, are blessed with an almost ideal climate and are absolutely free from epidemics. While in the north the children of white immigrants are mostly smaller than their parents and show signs of nervous and organic degeneracy, the second generation in the south is very frequently more vigorous than the first and enjoys a degree of vitality unexcelled anywhere on our planet. The same, by the way, may be said of the domestic animals. Horses, cattle, dogs, etc., rapidly degenerate in the climate of northern Brazil, but in the southern States their development and usefulness is all that can be desired. There were always comparatively few colored people in the south, slavery not having been tolerated in the German colonies; and the Germans have never intermarried with the colored or cabocle element, and very rarely, so far as the first generation is concerned, with the native Latins, both races being a great deal less in touch with each other than they ought to be. Although constituting one-fifth of the population of the southern States (300,000 out of 1,500,000) and having a financial and commercial importance far beyond their numerical strength, the German Brazilians do not take any part in national politics or, in fact, in anything emanating from the surrounding native element. They thus create for themselves a condition of isolation which has often given rise to the suspicion that they were endeavoring to establish a political commonwealth for themselves. Nothing could be more erroneous than this supposition. What is known as the German-Brazilian element consists of immigrants from Germany; their very numerous descendants in the second, third, and fourth generation; German Poles, Austrians, Austrian Poles, Russian Germans, Swiss, Belgian Flemings, Swedes, Norwegians, and Dutch. As a rule, they are absolutely contented |