tion changes. In Argentina the rise of a middle class has been reflected in improvements in the laws and execution of the laws within the last two years. A large proportion of the population there has laid its economic foundation and is now demanding and exercising its proper share in the government. This same holds true, in some degree, in the countries of Chile, Uruguay, southern Brazil, and Peru-once more it will be noticed in that section of South America that lies in the temperate zone, or in a temperate climate.

Another singular characteristic of the population of South America is that despite its being a continent that is agricultural and extractive, and not industrial, the population is yet remarkably concentrated. For example, 20 per cent of the population of Argentina is in the city of Buenos Aires alone, and four other cities of Argentina contain 5 per cent more of the entire population, and yet Argentina is essentially a grazing and agricultural country. One-third of the population of Uruguay is in the city of Montivideo, and Uruguay is essentially a grazing and agricultural country. In Paraguay, 12 per cent of the population is in the city of Asuncion. In Chile, primarily a mining and agricultural country, five cities have over 20 per cent of the population. In the other countries of South America the concentration of population is less marked, but still considerably more than would be normally expected of an extractive and agricultural country. In the United States, much more of an industrial nation, but 26 per cent of the population is in cities of 50,000 and over. Furthermore, if a map of South America were constructed to show the location of the population, it would be found to be concentrated all around the border of the continent. If you can imagine a triangular shaped bowl, the location of the population would be represented by dots all around the rim. The great central basin is practically uninhabited. The cities of Iquitos and Manaos, upon the Amazon, might seem an exception, but they are really outposts for the collection of rubber.

It is no disrespect to any South American country, whom in some of their ways we could copy with profit, to say that

First, in regard to the social stratification. The observant traveler is struck by the lack of a middle class. There is an upper stratum of population amounting to approximately some 2 or 3 per cent of cultured people most delightful to meet, who have traveled much abroad and have usually been educated abroad, and then there is an abrupt descent to a class that is, on the whole, and according to our standards, backward and illiterate. This upper stratum of population is usually concentrated in the cities, and especially in the capitals, so that the cities and capitals of South America are by no means fair criteria of the countries of South America. For example, on the west coast the cities of Lima, La Paz, and Santiago would give one who had sojourned only in them an incorrect idea of the stage of development of those countries. There are shop windows and streets in Lima that will compare with those of any city in Europe or in the United States. The electric traction service between Lima and its port, Callao, is most modern and adequate. It is not until one has been into the back country of Peru and seen the high proportion of Indian population and the conditions in which that population is living that one can judge the development of Peru more fairly.

This state of the population has been reflected in political conditions. Governments have not been representative as we understand that word. This does not necessarily mean that the rules of these unrepresentative rulers have always been beneficial. In Chile it has long been said that a hundred families were the government, but, on the whole, Chile has progressed under this oligarchical sway. Though it may be true that through the government ownership of the railroads they have made themselves low freight rates, it is also true that for the rest of the population they have established low passenger rates, for example, of about 1 cent a mile. Another country could be cited by name, the government of which, it is pretty well known, is under the domination of one man, yet he is an able man, and under him the country is forging ahead. But, happily, these conditions are steadily changing for the better, as the character of the popula

tion changes. In Argentina the rise of a middle class has been reflected in improvements in the laws and execution of the laws within the last two years. A large proportion of the population there has laid its economic foundation and is now demanding and exercising its proper share in the government. This same holds true, in some degree, in the countries of Chile, Uruguay, southern Brazil, and Peru-once more it will be noticed in that section of South America that lies in the temperate zone, or in a temperate climate.

Another singular characteristic of the population of South America is that despite its being a continent that is agricultural and extractive, and not industrial, the population is yet remarkably concentrated. For example, 20 per cent of the population of Argentina is in the city of Buenos Aires alone, and four other cities of Argentina contain 5 per cent more of the entire population, and yet Argentina is essentially a grazing and agricultural country. One-third of the population of Uruguay is in the city of Montivideo, and Uruguay is essentially a grazing and agricultural country. In Paraguay, 12 per cent of the population is in the city of Asuncion. In Chile, primarily a mining and agricultural country, five cities have over 20 per cent of the population. In the other countries of South America the concentration of population is less marked, but still considerably more than would be normally expected of an extractive and agricultural country. In the United States, much more of an industrial nation, but 26 per cent of the population is in cities of 50,000 and over. Furthermore, if a map of South America were constructed to show the location of the population, it would be found to be concentrated all around the border of the continent. If you can imagine a triangular shaped bowl, the location of the population would be represented by dots all around the rim. The great central basin is practically uninhabited. The cities of Iquitos and Manaos, upon the Amazon, might seem an exception, but they are really outposts for the collection of rubber.

It is no disrespect to any South American country, whom in some of their ways we could copy with profit, to say that

South America, as at present inhabited, is but a shell. There is no back country. One is struck by this in riding out from any large center of population. The inhabited area drops off suddenly unto the uninhabited.

FACTS ABOUT TRADE

In the light of the preceding physical facts and facts about the population of South America we now approach some surprising facts about its trade. South America, with about forty-eight or fifty millions of inhabitants, or about one-fifteenth that of Asia, has a much greater foreign trade than Asia. This is due to two reasons. In the first place, South America has certain products which the world wants very much, and in the supplying of which it has a monopoly to a greater or less degree. The most important products are coffee, rubber, nitrate, cocoa. And in the Plate region it has great natural advantages for producing cereals and meat, which the growing population of the world demands more and more. And in the second place, South America, in its present stage of development, does not provide for itself many of the products that it consumes, but exchanges its own products for them, which extends to the degree even of importing many food stuffs.

The total trade of South America amounts to about $1,800,000,000, of which roughly $950,000,000, or 53 per cent are exports, and $850,000,000, or 47 per cent imports. In this foreign trade the following countries are interested: Great Britain leads with 27 per cent to 28 per cent; Germany is second with 18 per cent to 17 per cent; United States is third, and very close to second, with 17 per cent to 18 per cent (depending on its imports of coffee as to whether it will exceed Germany or not by one per cent or so); and France is fourth with 8 per cent to 9 per cent. These trade figures are for the continent as a whole. If we divide the continent into its natural geographic groups of the north coast, west coast, River Plate, and Brazil, we find the United States leading in the north coast trade, apparently because, of its geographic proximity, for as we descend to Ecua

dor we find the United Kingdom rivaling it for first place, and in Peru the United States falls to second place, and in Chile and Argentina to third. Its leading position in Brazil is due to its large imports of rubber and coffee, rather than to its exports to Brazil. In Argentina, just the reverse is encountered, she buying much more from us than we from her, which constitutes something of a return cargo problem for our ships from her ports. Despite the idea that seems to be somewhat current, that the United States is not getting its fair share of South American trade, when one considers the heavy capital investment of other countries, and especially of the United Kingdom, and also considers the large foreign colonies and immigration, especially from Germany and Italy, and compares these facts with the United States capital invested and United States population resident in South America, one is inclined to wonder that our trade is as extensive as it is. In the last ten years our trade has increased greatly, but our percentage of the total trade has changed but little, although it has increased somewhat. That is to say, the proportional importance of our trade to South America, as compared with that of the United Kingdom or Germany or France, has changed but little. But, on the other hand, the importance of South America's trade to us has increased some fifty per cent. For example, taking three year averages, the importance of South America in our total foreign trade has risen from 6 per cent plus, in the last decade, to 9 per cent plus, and this in the face of our rapidly expanding foreign trade to all parts of the world. The importance, similarly, of South American trade to the United Kingdom is about 9 per cent, to Germany 8 per cent, and to France 6 per cent. And we are now seeking South American trade in earnest as part of our general producing pressure for a foreign outlet. Old traditional complaints of our poor packing and inferior salesmen are now nearly obsolete. Our credits are less arbitrary and the further extension of credit beyond the present general American policy of ninety days sight draft would be of extremely doubtful advisability. On the contrary, our example seems to be reacting somewhat in shortening credits in general. Our