The great majority of the inhabitants are of Indian (Guarani) descent, with very slight traces of foreign blood. Civilization has not made much progress, and the habits of the people are more primitive than those in the more advanced neighbouring republics. As a general rule the Paraguayans are indolent, especially the men. Climate conditions obviate the necessity of heavy clothing. A cotton chemise, and white manta wrapped in Moorish fashion over head and body, constitute the dress of the women; a cotton shirt and trousers that of the men. Boots and shoes are worn only by the upper classes. Goitre and leprosy are the only endemic diseases; but the natives, being underfed, are prone to diarrhoea and dyspepsia. The common language of the country is Guarani, although in a few districts Tupi is spoken. The country people as a rule understand a little Spanish, if living near any trading centre. Immigration is on a small scale, but tends to increase; it is encouraged by the Government, which seeks to divert to Paraguay some portion of the Italian labour immigration into Brazil and Argentina.
The principal towns with the 1933 estimate of their popula tions (including in each case the municipal district) are AsunciOn, the capital (228,600), Villa Rica (35,260), Luque (15,967), Carapegua (17,130), Paraguari (11,632), Concepcion (13,657) and Villa del Filar (7,888) ; these are described in separate articles. Encarnacion (11,991) on the Parana has a large transit trade.
The constitution of the republic was voted by a constituent assembly on Nov. 25, 1870. Legislative power is vested in a Congress consisting of a Senate and a Chamber of Deputies, elected by universal manhood suffrage in the propor tion of one senator for every 12,000 inhabitants and one deputy for every 6,000. Every member of Congress receives a salary of about 1200. The head of the executive is the president, chosen by an electoral college for four years, and only re-eligible after eight consecutive years. He is aided by a cabinet of five ministers, responsible to Congress. The vice president is similarly elected, and is ex officio chairman of the Senate. The highest judicial authority is the Supreme Court, which is empowered to decide upon the constitutional validity of acts passed by Congress; its three members are appointed for four years by Congress, subject to the approval of the president. There are five courts of appeal, and inferior tribunals in all the large towns. The civil and criminal codes of Argentina have been adopted, almost without change. For purposes of local administration the republic is divided into 12 departments, subdivided into 104 counties (partidos).
Roman Catholicism is the estab lished religion, but the Constitution guarantees full liberty to all other creeds. Asuncion, the only bishopric in the State, is in the archiepiscopal province of Buenos Aires. Education is backward and was long neglected. By law it is free and compulsory, but in some districts the attendance of many children is impossible owing to lack of schools, and at least 6o% of the inhabitants are illiterate. An attempt at educational progress was made by President Franco in 1916-19. In 1926 there were 90,133 pupils enrolled in 576 Gov ernment primary schools, while 3,201 pupils were attending the 21 private schools, and Boo the three national colleges at Asuncion, Pilar and Villa Rica. The Colegio Internacional, an American missionary institution and the largest educational establishment in Paraguay, was opened at Asuncion in 1920. There is a National university with 369 students in 1926, and 6 normal schools with
students.
In 1926 the standing army numbered about 2,285 men ; and there were three small armed river steamers.
The financial situation of Paraguay has been a source of anxiety for many years. In 1885, after interest had been unpaid for 11 years on bonds amounting to 11,505,400, an agree ment was made for the issue of new scrip to the value of 1850,00o in quittance of all claims for capital and arrears of interest, certain public lands being also ceded to the bondholders as compensation.
In 1895 an arrangement was made for a reduction of the rate of interest, for the funding of the arrears and for the creation of a sinking fund. The Government was unable to meet their obliga tions during a number of years and the public debt was further increased by the revolution of 1911-12, but in 1924 a new arrange ment was made with the creditors for the service of this foreign debt, and the authorities have been able regularly to meet these obligations. The total outstanding debt on June 3o, 1927 was 6,665,733 pesos gold and
pesos paper, equal to about 11,459,000. Besides this debt, there are other claims on Paraguay, including about L1,950,000 due to Brazil and about 12,500,00o due to Argentina, as a result of the war against Lopez. These lat ter claims Paraguay does not recognize.
The revenue is derived from import duties, and the most im portant branches of expenditure are the salaries of public officials, the army, public instruction and debt. The estimated revenue for the year 1926-27 was 260,039,984 paper pesos (213.5 paper pesos to the Li) and the expenditures, 260,033,684.