COMMUNICATIONS are still in a very undeveloped state. The mountainous nature of much of the country, the steep escarpment between the sea and the interior, the heavy rains, and the luxuriant vegetation, are all hostile to roads. In the north, the Amazon acts as a great highway, and is navigable to beyond Iquitos in Peru by ocean-going steamers. In the south, around Porto Alegre, there are also numerous navigable waterways, but elsewhere the rivers are obstructed by falls, and the traffic upon them is only of local importance. Of railways, there are now about 14,000 miles, chiefly in the south where they provide but an imperfect service. The most important line in this part of the country is that which runs from Rio de Janeiro, by Sao Paulo and through the states of Parana, Sta. Catharina, and Rio Grande, to Rivera on the frontier, whence there is connection with the Uruguayan system and Montevideo. This line, which has just been completed, has communication with the coast at various points. Another important line runs from the city of Sao Paulo to Itapura on the Parana, whence it is being continued to the Bolivian frontier at Corumba on the Para guay. The states of Sao Paulo and Rio de Janeiro are well pro vided with railways as a result of the growth of the coffee industry. From the capital, a line goes north-west to Minas Geraes, and will eventually be carried to Goyaz in the state of that name. In the northern part of the country, the railways run directly inland from the coast, and are seldom connected with one another. One of the most important connects San Salvador with the Sao Francisco. In the basin of the Amazon, the Madeira-Mamore railway, 210 miles in length, is being constructed round the cataracts and rapids of the Madeira and Mamore rivers.
COMMERCE.—The chief exports of Brazil consist of coffee, rubber, cacao, mate, and hides ; coffee and rubber together account for from 75 to 80 per cent., and coffee alone for about 50 per cent., of the total value of the exports. The chief markets for Brazilian coffee are in the United States, which takes from 40 to 45 per cent.
of the total output, and Germany, which takes from 15 to 20 per cent. Rubber ranks next in importance. Nearly one-half of the Hevea rubber exported goes to the United States, while of the remainder Great Britain takes a large share. Manicoba finds its chief market in the United Kingdom. Cacao goes in the main to France, the United States, and Germany ; while mate is sold to the Argentine, Uruguay, Chile, and the countries of Central Europe.
The imports consist largely of manufactured goods and food stuffs. In the first of these Great Britain has the lion's share, and supplies the bulk of the textiles and much of the iron and steel goods imported into the country. The natural expansion of her trade in textiles has, however, been seriously checked by the development of the Brazilian cotton industry, and, in regard to iron and steel goods, she is beginning to feel the pressure of her great rivals in Brazil—Germany and the United States. Food supplies come in the main from the United States and Argentina, flour from Argentina but also from the United States, dried beef from Uruguay and Argentina, cod from Newfoundland, and macaroni from Italy. The import of food-stuffs is showing little sign of expansion, and will, indeed, probably tend to decrease in the future, as the southern part of Minas Geraes becomes better equipped for supplying the demands of the capital. During the five years 1906-10 the annual value of the exports was £55,000,000, and of the imports £39,000,000.
CONCLUSION.—Brazil, with its great natural resources—mineral wealth, water-power, productive climate, and valuable forests— would appear to have an assured future, but economic development will be slow. Tropical climate renders a great part of the country unsuitable for white labour, the topography of the land makes communication difficult, the population is small and composed of diverse elements, and unstable political conditions have affected the investment of capital. These are obstacles to progress which can only slowly be overcome.