Britain, the United States, and Brazil. With the exception of another public-utility company, it is the only important Canadian enterprise in the field.

The foregoing report has indicated that the amounts of local Brazilian capital invested in manufacturing and other fields of enterprise are surprisingly large. Such companies as the Companhia Docas de Santos and the Companhia Nacional Tecidos de Jute have been highly successful. There is probably more than $100,000,000 of local capital invested in the textile industry, and there is considerable home capital in Government, State, and municipal securities, railways, public utilities, banks, insurance companies, etc.

As a final word it need only be said that Brazil is one of the largest and richest countries in the world and that opportunities to develop its marvelous resources are unlimited.

CHILE.

INTRODUCTION.

The Republic of Chile, with an area of approximately 292,500 square miles, is situated along a narrow stretch of land between the Andes and the Pacific Ocean, extending in the general direction of north and south for about 2,700 miles. The width of the country varies from about 65 to nearly 250 miles. The coast line of the Republic may be said to be 23 times greater than its average breadth. If one sailed from the cost of Labrador southward to the Guianas in South America he would cover no greater distance than if he had followed this length of the Chilean coast.

Chile's 3,870,023 inhabitants make up one of the hardiest and most progressive races in the Western Hemisphere. The country is developing fast, especially in the production and exportation of its vast mineral wealth. During the century 1810 to 1910 the mineral production of the Republic has been estimated as follows: Nitrate (since year 1830 only), $1,225,300,000; copper, $664,292,000; silver, $298,695,000; coal, $114,516,000; gold, $68,084,000. In addition, large quantities of borax, salt, iodine, sulphur, iron, manganese, etc., are taken from the earth. The Republic may be divided into four distinct zones, as follows:

The northern or desert zone, extending from 17° 15′ to 27° south latitude. In this zone are the cities of Iquique, Antofagasta, Taltal, etc. Herein are located the nitrate belt and very extensive deposits of copper, especially those found at the mines of the Chile Copper Co. at Chuquicamata. The country is virtually rainless and barren of vegetation, no rivers of any importance existing. Nevertheless, this zone is the center of the greatest natural wealth of the entire Republic. Several railways traverse the district and steamship service is excellent.

The second or mineral zone extends from the southern boundary of the desert zone as far south as 33°. Minerals of all descriptions are found in this district. The country is generally arid, although there is a fair amount of cultivation in the Central Valley.

The south-central or agricultural zone extends from 33° to 42° south, and in it are included the cities of Valparaiso and Santiago and the rich and fertile Central Valley. This valley contains a number of important rivers, some of which are navigable. In addition to its agricultural areas the Central Valley contains coal and other minerals and large timber areas.

The southern or island zone extends from 42° south to Cape Horn. This district, which includes the island of Tierra del Fuego and the territory of Magallanes, with their immense areas of sheep-grazing lands. is quite thinly populated.

Chilean foreign trade in 1917 reached the record total of $389,588,610. The previous record figure was for 1916, with a total for exports and imports of $268,678,534. In 1912 and 1913 Chilean foreign trade amounted to $261,954,195 and $264,927,313, respectively. In 1917 the exports amounted to $259,985,495 and the imports to $129,603,115; the United States furnished $63,534,755 worth of the imports and took $155,006,103 worth of the exports.

FINANCES AND PUBLIC DEBT.

As an indication of the national income, expenditure, and public debt of Chile the following table is submitted. The heavy decrease in national income during the years 1915 and 1914 may be attributed almost wholly to the decrease in customs receipts resulting from the European war. The figures are expressed in Chilean gold pesos of 18d. (equal to $0.365 United States currency):

Customs receipts for 1915 amounted to 91,397,396 Chilean gold pesos, as compared with 159,259,254 pesos in 1913. The general national income for 1916 was much larger than for 1915, and a surplus was stated to have been shown, although figures at the date of writing are not available. There was an increase in customhouse revenue. of approximately 48,000,000 Chilean gold pesos, of which increase $33,000,000 was derived from the increased exports of nitrate. The total tax on the exportation of nitrate for 1916 amounted to 100,273,707 Chilean gold pesos. The receipts and expenditures of the Government for the year 1917 were estimated as follows:

Paper pesos.

Gold pesos of 18d.

Receipts..
Expenditures..

128,550,000
194,284, 356

81,540,000 70,825, 014

Of the estimated expenditures as stated above, 3,846,000 paper pesos and 22,463,000 gold pesos have been provided by loans and special legislation.

The national assets of Chile were estimated as of December 31, 1915, to be valued at 417,675,275 paper pesos and 828,105,405 gold pesos of 18d. State railways were valued at 32,194,946 paper pesos and 228,105,405 gold pesos of 18d. In addition, the Arica-La Paz Railway was carried at a valuation of 73,853,153 paper pesos.

The conversion fund, as of December 31, 1915, was held as follows: In Great Britain, £6,019,727; in Germany, 41.708,692 marks; in Chile, 3,643,634 gold pesos.

A total of 150,000,000 paper pesos were in circulation December 31. 1915.

A brief résumé of the funded debt and responsibilities of the State follows:

The rate of exchange for the paper peso is subject to wide fluctuations. As of January 1, 1918, the value was $0.2825 United States currency per peso, as compared with $0.213 April 20, 1917, and $0.14 July 1, 1916. By July 1, 1918, the exchange rate had risen to about $0.33.

The total debt of Chile as of December 31, 1915, including the 150,000,000 paper pesos of money outstanding, amounted to 607,449,003 gold pesos, equal to 166.81 gold pesos per head of population.

EXTERNAL LOANS.

The external loans of the Republic, dates of issue, amounts originally issued and outstanding December 31, 1915, are as follows1:

EDITOR'S NOTE.-Figures that have become available since the preparation of the text of this report show that Chilean external bonds outstanding December, 1916, amounted to £31,808,640, representing unpaid portions of 18 different loans dating from 1885. Two of these loans were placed through the Deutsche Bank and most of the others through London concerns. In addition, treasury bills amounted to £676,090 (1916), making a total of £32,484,730. The internal debt December, 1916, amounted to £16,227.000, 155,505,408 gold pesos, and 73,558,361 paper pesos. Municipal loans December, 1916, were as follows: Consolidated debt, 21,119,594 gold pesos; floating debt, 12,863,628 paper pesos.

Interest and sinking funds for the loans numbered 1, 6, and 7 are payable at the London City and Midland Bank, London, England; for the loans numbered 4 and 13 at the Deutsche Bank, Germany; for the loan numbered 11 at J. Henry Schroeder & Co., London, Éngland. N. M. Rothschild & Sons are the bankers for all of the other Chilean loans listed above.

The sinking funds applicable to the above loans are cumulative, the bonds being drawn for redemption at par. In most cases the Government may retire the issues as a whole at par. Interest on all of the issues is payable in sterling, although the loans numbered 4, 9, 13, 14, 15, 17, and 18 are also payable in marks. The loans numbered 9, 14, 15, 17, and 18 are payable in Paris as well as in London and Berlin. Holders of the bonds numbered 14, 15, 17, and 18 may also cash them at Brussels and Amsterdam. The debt amortized by means of the above-mentioned sinking fund to December 31, 1915, totaled £6,843,120. During the year 1915, £720,660 bonds were amortized.

The 4 per cent loan of 1885 was issued for the purpose of consolidating old loans. The bonds were brought out by the London City and Midland Bank and the original offering price was 89. The highest price for them since January, 1911, was par. The quotation January, 1918, was 89 (London Stock Exchange). The. 1886 loan (issued by N. M. Rothschild & Sons) was also for consolidation purposes. The issue price was 98, and 90 was the approximate price in January, 1918.

Loan number 3, the 1887 issue, is known as the Tarapaca Saltpetre Works loan. Its original price was 97 and the January, 1918, London quotation about 86.

The 4 per cent bonds of 1889 were originally offered by the Deutsche Bank in Berlin and London. Most of the bonds are held in Germany, in which country the sinking fund is operated. The original issue was for 31,546,396 marks, and the offering price was approximately 102 per cent. The London quotation for the bonds January, 1918, was approximately 79 per cent. The high price since 1911 was 99.

The 5 per cent loan of 1892, issued shortly after the close of the Chilean Revolution, was offered publicly by N. M. Rothschild & Sons in London at 95 per cent. The high price of the bonds since 1911 was 104 per cent. The quotation January, 1918, was 93.

The 4 per cent loan of 1893 was issued to the Peruvian Corporation in part settlement of the debt of Perù accumulated prior to the war between Chile and Peru. The corporation resold these bonds through the London City and Midland Bank, some at 84 and others, following the rise in the price of Chilean securities, at 94. These bonds have sold as high as 98 since January, 1911, and in January, 1918, were quoted at approximately 89.

The 4 per cent loan of 1895 and the 5 per cent loan of 1896 were both publicly offered by N. M. Rothschild & Sons, the former loan at 93 per cent and the latter at 95 per cent; 82 and 88 were the approximate January, 1918, prices, and 98 and 1031, respectively, the high prices since 1911. A large portion of the 1896 loan is held on the Continent, in Paris, Berlin, Amsterdam, Brussels, etc.

The 5 per cent loan of 1905 was issued at 95 and offered for public subscription in Chile, as well as in London and Paris; 86 was the