"It is difficult to say whether the obstacles offered by the vast mountain walls to free traffic and the communication of the people are not more than compensated by the prodigious quantity of minerals they contain and that make Bolivia one of the richest countries of the globe.

"The forests and vast plains extending eastward, with about 7,000 miles of navigable rivers, comprise a fertile agricultural territory embracing more than 304,000 square miles.

"The total area of Bolivia is 709,000 square miles, more or less, and it is therefore the third nation of South America as regards size, but unfortunately the population does not yet correspond to its. extension-amounts only to a little more than 2,250,000.

"As the Spaniards settled first in the mining regions, the section of Bolivia situated east of the Cordillera Real, which includes the extensive territories watered by the tributaries of the Amazon and the Plata, is the least populated. There are found the forests filled with fine woods suitable for all industrial purposes, such as railway ties, building, and cabinetmaking. Some of these woods are as hard as iron. Rubber, peruvian bark, and a multitude of useful and medicinal plants abound in this soil, whose wonderful fertility could easily support many millions of inhabitants. The coffee and cocoa are conceded to be of the finest quality. Fruits and all tropical products are abundant. The climate is generally healthful and suitable for settlement by European races.

"The mean temperature of the lowlands of the Amazon to an altitude of 2,000 feet above sea level is 74°, to an altitude of 8,000 it is 66°, and in the central plain, where the altitude varies from 10,000 to 12,000 feet, it is 50°.

"It is calculated that to every 181 meters of ascent in the mountains there is a drop of one grade in the temperature.

"It may be said that in Bolivia there are only two seasons-the rainy season, which corresponds to summer, and extends from December to May, and the dry or winter season, lasting from May to December. In the latter months it seldom rains, and the sky is clear and bright. The rains are more copious in the east, and at times the rivers overflow and rise as high as 10 meters above their ordinary level.

"Almost all of the navigable rivers of Bolivia flow into the Amazon, the most important being the Beni, which receives the Madre de Dios, the Orton, and others before reaching its confluence with the Mamore, where it takes the name of Madeira, one of the most powerful tributaries of the Amazon. Unfortunately the navigation of this great river is obstructed by a series of very dangerous rapids. The Government of Brazil has agreed by treaty to construct a railroad around these rapids and thus expedite the Amazon route.

The Pilocomayo and the Bernejo are also rivers of importance that flow toward the southeast and empty into the Paraguay. The eastern region of Bolivia is also rich in grazing lands, where the stock industry promises to be highly lucrative. To-day there are found vast herds of wild cattle roaming over the lands.

"Lake Titicaca on the boundary line between Peru and Bolivia is notable for its great altitude, for its romantic traditions, and for the monuments of that distant epoch yet standing on the island of the Sun. The lake's surface extends over an area of more than 5,200 square miles.

"If the natural exuberance and richness of the eastern section of Bolivia is remarkable for its products, the region of the Cordilleras is, I will say, the great storehouse of mineral wealth. The silver mines of Potosi, Oruro, Colquechaca, Huanchaca, and many others have contributed hundreds of millions to the richness of the world. No less abundant are the deposits of copper, bismuth, zinc, cobalt, gold, and tin. On speaking of the commerce of Bolivia I will mention the quantities of these minerals exported to-day.

"The main causes that hinder the development of Bolivia's wealth are the difficulty and cost of transportation, the lack of capital, and the scarcity of population. To what an extent the high rate of freight hinders the growth of industries in Bolivia, it is enough to state that coal at the seacoast is worth from 18 to 25 shillings, or, say, $4 to $6 more or less per ton; taken to the mines in the interior of Bolivia, according to the distance, though this may not exceed 500 miles, the price will be from $40 to $80. We are trying to overcome this difficulty by means of electric and hydraulic power.

"A large number of mining enterprises, as well as the eight banking institutions, are financed with national funds. Recently two German banks have been established in La Paz.

"The constitution of Bolivia is very liberal, and is based on the unitarian system of central government. The President is elected every four years by direct popular vote. The legislative power is exercised by a Senate and House of Deputies, and the judiciary by a supreme court, appointed by the Senate, and by inferior courts and other judges. Foreigners enjoy the same franchises as the natives, and may hold property, work the mines, etc., all in conformity with the laws.

"Bolivia is the only country in South America that has not suffered from earthquakes; and when felt they were almost imperceptible and of no consequence.

"Within the last few years the international commerce of Bolivia has increased considerably. In 1905, it reached 69,665,000 in Bolivian money, an increase of 30 per cent over the figures of the previous year, and according to the statement of President MONTES

in his last message to Congress, in 1906 it will reach 80,000,000; and when the railroads now in course of construction are completed these figures could be easily doubled in a short time.

"The commerce with the United States has also grown in recent years, and the construction of the railways will greatly augment the present movement. The importations into Bolivia in 1905 amounted to $1,720,000, and yet this small sum is a large increase compared with previous years.

"On the other hand, the importations of Bolivian products into the United States hardly reached $60,000, while Bolivia produced rubber, tin, cocoa, cocoa leaves, Peruvian bark, and many other articles of great consumption in the United States, and which are purchased in Europe to be brought here.

"The exportation of silver averages 13,000,000 ounces a year; of copper, 5,000 tons, more or less; the production of tin grows from year to year, so that from 1897, or ten years ago, when the production was about 3,000 tons, it had reached 17,000 in 1905, and during the past year it is probable that the exportations exceeded 20,000 tons of pure tin.

"It is impossible to foresee the marvelous development that railway facilities will offer to this industry, as well as to the general progress of the country. Bismuth, zinc, and gold represent quantities no less important.

"In spite of all the obstacles that the Bolivian industries have encountered on passing through the Amazon the exportation of rubber in 1905 amounted to 1,700,000 kilograms. This is a product whose output could easily be increased when the railroads now being built are completed. Sir MARTIN CONWAY calculates as not improbable that there may be about 50,000,000 rubber trees in the region of the upper Beni alone. Each tree is supposed to yield annually from 3 to 7 pounds of rubber.

"Bolivia also exports considerable quantities of alpaca wools, the finest chinchilla and vicuña skins, and other national products.

"I shall now proceed to give you an idea of the means of communication of my country and of the railways whose construction is actively progressing.

"The position Bolivia occupies in the heart of South America gives to her commercial and international importance, and although deprived of her coast on the Pacific, she is in immediate contact with five of the most advanced republics; and it is to their interest to encourage a mutual trade for the benefits that will naturally result. And this is not all; the main railway line under construction in Bolivia has a continental bearing, for it will establish the connection between the Argentine system that is now being extended to the interior of Bolivia with the Peruvian railroads coming from the north