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VENEZUELA
AGRICUI,TURAI,, FOREST, MINING, AND PASTORAI. ZONES
NATURAL WEALTH, ACTUAL DEVELOPMENT
VENEZUELAN CURRENCY AND MONETARY SYSTEM
MANUFACTURING AND OTHER INDUSTRIES
PROSPECTS OF IMMEDIATE GROWTH
JIEANS TO ATTAIN IT
ECONOMiC CONDITIONS OF VENEZUELA.
BY
N. VEI.OZ GOITICOA,
VENEZUELAN DIPLOMAT,
Charter Member of the Venezuelan Society of International Law,
Charter Member of the International High Commission
(Venezuelan Section),
Member of the American Academy of Political and Social Science
(Philadelphia),
Fellow of the Society of Science, Letters and Art, of London,
etc., etc.
OFFICIALLY EDITED
BY
THE DEPARTMENT OF FOMENTO
OF
VENEZUELA
ENGLISH TEXT
1919.
PRICE BS. 3.50
CARACAS
TIPOGRAFIA CENTRAL
VENEZUELA
AGRICUI.TURAI,, FORBST, MINING, AND PASTORAI. ZONKS
NATURAI, WEAI,TH, ACTUAL DEVEI.OPMENT
VENEZUELAN CURRENCY AND MONETARY SYSTEM
MANUFACTURING AND OTHER INDUSTRIES
PROSPECTS OF IMMEDIATE GROWTH
MEANS TO ATTAIN IT
ECONOMIC CONDITIONS OF VENEZUELA.
BY
N. VELOZ GOITICOA,
VENEZUELAN DIPLOMAT,
Charter Member of the Venezuelan Society of International Law
Charter Member of the International High Commission
(Venezuelan Section),
Member of the American Academy of Political and Social Science
(Philadelphia),
Fellow of the Society of Science, Letters and Art, of London,
etc., etc.
OFFICIALLY EDITED
BY
THE DEPARTMENT OF FOMENTO
OF
VENEZUELA
ENGLISH TEXT
1919.
CARACAS
TIPOGRAFIA CENTRAL
^.^
\-^
UNITED STATES OF VENEZUELA
Department of Fomento,— Section on Public Land, Industries
and Commerce.— Caracas, October 15, 1919.— no th. and 61 st.
Resolved :
t
The present edition of the work of citizen Nicholas Veloz-Goiticoa,
entitled "Venezuela 1919, the ownership of which work has been
acquired by the National Government and made by direction of the
Provisional President of the Republic, consists of two thousand
copies, in size 16: one thousand in the Spanish and one thousand
n the English language, printed at the »Tipografia Central*, and
its sale price is three and one half bolivares (Bs. 3.50) per copy.
For the Federal Executive.
G. Torres.
CONTENTS
Pages
AGRICULURAL ZONE, area, description-coffee, tobacco,
India rubber, wheat, cotton, tonka beans, vanilla, co-
coanuts, sugar cane, bananas, corn, beans, indigo, - ca-
pital invested in the cultivation of this zone 3—26
FOREST ZONE, area, description & division of the zone, -
woods, dyeing & tanning substances, gums, resins, fibre
plants cochineal, heron feathers, - value of these prodects
exported (igi? - 1918), capital tnvested in the cultivation
tion of this zone 26—29
MINING ZONE, aerea, description, -gold, copper, iron, lead,
asphalt, petroleum, coal, pearl fisheries, gold deposits,
value of minerals exported (1917 - 1918), capital invested
to exploit diffirent mining products (table) 29—39
PASTORAL ZONE, area, description, - horned cattle when
introduced in Venezuela, number of head then & now,
comparisons, crossing of breeds, cattle exports on the
hoof, frozen meat exports, total value of exports of this
zone (1917-1918), capital invested in the cattle industry
& in pastures 39 — 44
CAPITAL INVESTED in the cultivation of coffee, cacao,
rubber, cocoanuts, tobacco, bananas & cotton (table)... 44
CAPITAL INVESTED in agriculture, industries, stock-
raising, pastures & commerce (table) 44
EXPORTATION BY ZONES, four tables & a summary . 45—47
VENEZUELAN CURRENCY & MONETARY SYSTEM. 48—49
MANUFACTURING & OTHER INDUSTRIES, descrip-
tion capital invested in them 49—54
PROSPECTS OF IMMEDIATE GROWTH, measures
which have been taken in Venezuela in this regard. 54 — 57
MEANS TO ATTAIN IT, rural credits, etc 57—59
ECONOMIC CONDITIONS OF VENEZUELA, national
& foreign banks, commerce before & after the war,
credit systems, opening of European markets, - Ven-
ezuela's commercial, industrial & financial future 59—67
GENERAL INDEX 69-72
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VENEZUELA
AGRICULTURAL, FOREST, MINING AND PASTORAL ZONES
NATURAL WEALTH, ACTUAL DEVELOPMENT
VENEZUELAN CURRENCY AND MONETARY SYSTEM
MANUFACTURING AND OTHER INDUSTRIES
PROSPECTS OF IMMEDIATE GROWTH
MEANS TO ATTAIN IT
ECONOMIC CONDITIONS OF VENEZUELA.
AGRICULTURAL ZONE
The Agricultural Zone of Venezuela, accord-
ing to recent statistics, covers in round numbers
an area of 300,000. square kilometers, extending
from the Atlantic Ocean to Colombia and embrac-
ing the territory between the Caribbean seacoast
and the plains of the Orinoco, towards the south
of the Republic.
The fertility of the soil; its perfect adapt-
ability to the growth and maturity of everything
that is essential to the existence of man and beast;
the mild climate, with different temperatures accord-
ing to the elevation of the locality above the
sea level, and its geographical position, — all these
favorable conditions designate Venezuela as one of
the most attractive and advantageous regions for
agricultural pursuits.
Twenty per cent of the population of Ven-
ezuela is engaged in agricultural work. This pro-
portion, however, is not sufficient for an extensive
development of the natural resources of this vast
zone, due to the fact that a population one hun-
dredfold greater could derive a comfortable subsist-
ence from the agricultural region in question.
Therefore, with an increase in population,
with greater transportation facilities, the intro-
duction of new methods of cultivation and more
general application of modern machinery and im-
plements, this region, covering such a great num-
ber of square kilometers of Venezuelan territory,
will then become one of the most prosperous,
richest and most accessible agricultural fields of
the world.
The principal agricultural products of Ven-
ezuela are coffee, cacao, sugar, tobacco, India
rubber, tonka beans, cotton, corn, vanilla, wheat,
etc. The vegetable seeds consist of wetches, bene
seed, pease, beans, peanuts, okra and many-
others. The chief vegetable plants are cabbage,
cauliflower, melons, asparagus, turnips, radishes,
beets, egg plants, garlic, pepper, celery, carrots,
cresses, onions, spinach, lettuce, artichokes, etc.
The fruits of Venezuela, many of which are of
considerable size and delicate flavor, include
oranges, large sweet lemons, limes, plantains,
pineapples pomegranates, figs, grapes, straw-
berries, plums, breadfruit, chestnuts, mangoes,
mameyes. zapotes, parchas, medlars, tamarinds,
cactus fruit, mandarines and a great variety of
bananas of a better quality than those exported
in large quantities from Central America; never-
theless the vast reo"ion available for the rais-
ing of bananas in Venezuela has not been used,
as the sum invested now in their cultivation
amounts only to half a million bolivares ($ 100,000.
American Gold).
COFFEE
The cultivation of Coffee in Venezuela began
in the year 1784. The first seeds were brought
from Martinique by the priest Mohedano, who
founded the first coffee plantation In Blandin (neigh-
borhood of Caracas). The number of coffee
trees existing In Venezuela, according to the opi-
nion of experts on the subject, may be approx-
imately reckoned at 260 million trees.
Recent statistics place Venezuela in the sec-
ond rank among coffee growing countries. Coffee
is produced in Its regions of temperate climate, from
five hundred to two thousand meters above the
sea level, and It is estimated that a coffee tree
lasts fifty years in good condition, yielding at
each crop an average of one eighth of a kilogram
of coffee beans per coffee tree. Everything pertaining
to the cultivation of coffee trees is extensively dis-
cussed by the great Venezuelan specialist on
coffee, Don Federico de la Madriz, in his work
on the subject.
In the cultivation of coffee trees in Ven-
ezuela It is estimated that more than Bs. 80 millions
($16 millions Am. Gold) are invested.
CACAO
The natural product {Theobronta edendo)
meaning «EdIble Food of the Gods*, is a seed
from a tree indigenous to the soil of Venezuela,
which possesses one of the choicest cacao zones
of the world. With this seed the chocolate of
commerce is made. The cacao tree requires for
full development and remunerative crops a tem-
perature of 8o9 F. (27 degrees Centigrade). Be-
sides these conditions cacao needs a moist air,
therefore the Venezuelan lands along the Caribbean
coast, sloping from the mountain tops to the shore,
which are bedewed by the exhalations of the sea
and irrigated by the numerous rivers and riv-
ulets coursing down the valleys, are found to be
well adapted in all respects to the profitable
cultivation of cacao. However, this natural pro-
duct is likewise found and cultivated in other parts
of Venezuela.
As the cacao yielding region in the world
is comparatively restricted, the planters of this
staple need not fear the steady competition
which has been met in the cultivation of other
staple products.
About 200 trees may be planted in one
hectare. They must be protected from the sun
by shade trees until they have acquired normal
size. Five years after having been planted,
the trees begin to bear two crops a year, ripen-
ing in June and December. Generally all trees
produce throughout the year, but in a small quant-
ity. The average life of a tree is about forty
years. During this time the crops will yield from
550 to 675 kilograms per hectare. The seed is
similar in appearance to a shelled almond. About
16 of these seeds are inclosed in an elongated pod
ribbed like the muskmelon. The pods are of a
yellow and red color and when they become ripe
turn purple. When 'they are gathered and heaped
in piles on the ground, after a few days they
ferment and burst, and the seeds are shelled, wash-
ed out and housed.
Two grades of cacao are grown in Venezuela,
namely the criollo, which is the native cacao, and
the trinitario, which was originally imported from
the Island of Trinidad. The criollo grows well in
the valleys situated near the sea, where the tem-
perature is warm and moist. This kind of cacao
is of a very high grade. The Chuao Plantation
produces a still finer grade of cacao, which on
account of its sweetness and other qualities al-
ways comands an exceptionally high market price.
It is exported principally to France.
The demand for cacao in Europe before the
war, which has now come to an end, was regular
and very large. Cacao is mostly used in the
form of chocolate in Spain and Italy. In France,
England and the former German Confederation
it is chiefly employed in the manufacture of
sweets and confections, and its use is becoming
so varied and large that it will soon be a staple
article of consumption, as universally needed
as coffee or tea. Venezuelan cacao also finds a
ready market in the United States, where it is
known, like coffee, by the names of Caracas and
Maracaibo Cacao.
In the cultivation of cacao more than Bs. 62
millions ($ 12,400,000. Am. Gold) are invested in
Venezuela.
TOBACCO
Tobacco, discovered by the Spaniards in
Yucatan, was introduced from there in the West
Indies and then planted in Venezuela, where it
is most successfully cultivated in Capadare, Ya-
ritagua, Merida, Cumanacoa, Guanape, Guaribe
and Barinas. Excellent tobacco is also grown
near Cumana, that from Guacharo being con-
sidered exceptionally good. In Maturin and
Barinas, likewise in the vicinity of the Fed-
eral District and Quebrada Seca, State of Ara-
gua, also in Guacara and near Valencia, State
of Carabobo, a great quantity of excellent to-
bacco is grown.
The plant thrives best in humid and fertile
soil. The cultivation of tobacco requires about
8
six months in Venezuela before it is ready for the
market, and while the cost of cultivation is not
large, great care is required.
Some tobacco is exported from Venezuela,
chiefly to Havana, where it is mixed in the manu-
facture of Havana cigarettes.
The principal classes of tobacco grown in
Venezuela are distinguished according to the re-
gions where they are produced. These regions
are: Maturin, Capadare, Salon, Golfero, Guaribe,
Cocorote, Cumana, Quebrada Seca and Guacharo.
There are other classes of lesser importance
such as Urachiche, Guanape, Orituco, Paya and
Tovar, which on account of being similar to some
of those already mentioned, need not be especially
classified.
Maturin. — This class of tobacco is the one
which is mostly produced in Venezuela. In this
region (Maturin) and in that of Barinas, the cul-
tivation of tobacco was started during the Spanish
rule. For several reasons the cultivation of to-
bacco has steadily declined in Barinas while in
Maturin it has considerably increased. Tobacco
from Maturin is mostly used to manufacture Ven-
ezuelan cigarettes and is the better known class
in foreign markets, where some time ago it
could easily be sold.
The persons who gather the Venezuelan
tobacco crops, class this tobacco as Principal or
Covering, Half -tree and Sprouts, and pack each
class separately in banana leaves bound with agave
cord.
Each package weighs from 25 to 35 kil-
ograms.
9
This class of tobacco has:
ist. — Leaves which are light in relation to
their bulk;
2nd. — Medium strength, agreeable aroma
and
3rdly. — Keeps in good condition for a max-
imum of two years and then begins to rot and com-
pletely loses its strength.
Capadare. — This class of tobacco is better
than that from Maturin. It maintains its strengfth
and does not rot until three or more years after
ic has been gathered. It has a very good taste,
especially so the kind called. aMirimire^ (from a
certain locality) which has a really superior aroma.
Its weight, as compared with its bulk, is greater
than that of the Maturin tobacco and does not burn
so fast as the latter.
The gatherers classify the Capadare tobacco
in class one and class two, and pack them apart
in yute packages weighing about 46 kilograms.
Salon. — This kind of tobacco has an exqui-
site aroma, very fine leaves, which are mostly
used as the outer leaf of fine cigars. This tobacco
burns well, is light in relation to its bulk and is
classed by the gatherers as Cover, Inner-cover and
Core. These clases are packed apart in yute cloth
and the packages weigh about 40 kilograms each.
Golfero. — This region (on the shores of the
Gulf of Cariaco) has but recently been planted
with Havana-tobacco seeds and has begun to
produce a superior quality. It has strength, aroma
of an exquisite flavor and burns very well, and
is light as compared with its bulk. It lasts two
years without rotting. It is packed in banana
leaves, in packages weighing from 20 to 35 kil-
10
ograms. It is subdivided as follows: Principal,
Half-tree and Sprouts. This tobacco has consid-
erable demand from the cigarette manufacturers
because of its steady strength and agreeable aro-
ma, and, besides, due to the fact that it is bulky in
comparison with its weight.
Guaribe. — This tobacco is pretty strong, heavy
in relation to its volume and of agreeable taste
and aroma. It is not much used to make cigarettes,
but only in small quantities, in order to maintain
their stength for some time. As a general rule
this tobacco does not burn well. It is divided in
three classes: Principal, Half-tree and Sprouts,
and separately packed in yute packages weighing
about 40 kilograms each.
Cocorote. — This class of tobacco has a delicate
leaf, is light in weight, has considerable stength
and a good taste. It is mostly used to manufac-
ture cigars and burns well. It is packed in an
agave covering, in packages weighing about 40 kil-
ograms. It is classified in three denominations, to
wit: Cover, Inner Cover and Core. It begins to rot
two years after having been gathered.
Cumaua. — This kind of tobacco may be con-
sidered as a subdivision of the golfero class and
has its same conditions as hereinbefore mentioned.
Qiiebrada Seca. — This class of tobacco has
little weight and strength. It is scarcely used in
the manufacture of cigarettes, due to its somewhat
disagreeable taste. It is used to manufacture
common cigars.
Guacharo. — It is produced near the Golfo de
Cariaco region, precisely around the Guacharo
Caves. The soil there is formed by several bat- ma-
nure strata. Due to this fact, this kind of tobacco
has an exceptional and superior strength, has a
11
better taste and a finer aroma than any kind of
tobacco grown not only in Venezuela, but in any
place in the world where tobacco is cultivated.
The leaf is small and delicate and there is crreat
demand for it from cigar manufacturers, to add a
small quantity of this tobacco to impart to the best
class of cigars an exceptionally fine flavor. Cigarette
manufacturers cannot make use of it because the
quantity produced is too small. The whole crop of
Guacharo tobacco is packed without being classified
in 20 kilogram- packages, wrapped up in banana
leaves covered with yute cloth.
PRODUCTION
The annual production of the different above
mentioned classes of tobacco varies a great deal
according to the conditions of the season and
the demand of the producct.
The data in regard to production of Ven-
ezuelan tobacco given below are approximate and
comprise in the last five years (19 14 to 1919)
the average output which amounts to more than
three thousand tons from the followincr reofions:
Mahirm. — 1,000. tons of Principal, Half-tree
and Core in the following proportion: Principal
20 p g , Half-tree 30 p g , Core 50 p § .
Capadare. — 700 tons. First quality 40 p § ,
Second quality 60 p § .
Salon. — 250 tons: Outer leaf 20 p § , Inner leaf
30 p§. Core 50 p§.
Golfero, — 700 tons: Principal 20 p § , Half-tree
30 p g , Core 50 p g .
Guaribe. — 100 tons: Equal proportion of the
three classes.
Cocorote. — 300 tons; Principal 20 p g , Half-
tree 30 P o ' Core 50 p g .
12
Ctimana.— This class is included in the Golfero.
Qiiebrada Seca. — 25 tons: Equal proportion
of the 3 classes.
Guacharo. -2 tons: One sole class.
Therefore the anual production of tobacco
in Venezuela is now of 3,077. tons.
The classes of lesser importance, such as
Urachiche and Guanape, are comprised in the
respective amounts of Cocorote and Guaribe.
Those of Orinoco, Paya and Tovar, due to the
small amount of production, are not taken into
consideration.
The average production above referred to is
liable to increase in a considerable manner provid-
ed the demand of the article should so require
it, because soil fit for tobacco cultivation and
labor are plentiful.
PRICES
Admitting as standard the price obtained dur-
ing the last five years (1914 to 19 19) for each of
the different classes taken into consideration, the
corresponding price of each is as follows:
Maturin Principal Bs.
Half-tree «
Core ((
Capadare First class «
Second «
Salon Principal «
Inner leaf «
Core «
Golfero Principal a
Half- tree «
Core «
Guaribe Principal «
Half-tree «
Core «
1.75 -per
1.30
kilogram
((
1.09
«
2.60
K
1.09
«
2.80
«
1.75
«
1.30
((
2.00
«
1.30
«
1.09
«
1.75
«
1.30
«
1.09
«
- 13 —
Cocorote Outer leaf Bs. 2.80 per kilogram
Inner leaf « 1.75 «
Core « 1.30 «
Quebrada ►SV^^... Principal « 1.75 «
Hal-tree « 1.30 «
Core « 1.09 «
Guacharo Up to « 8.00 «
The above mentioned prices are merely based
upon national consumption and it is logical to
suppose that the latter will considerably increase
when tobacco shall be exported upon a larger scale
from Venezuela.
The total value of tobacco exported from
Venezuela in 191 7 amounted to more than Bs.
237,000. and in 1918 said exportation was of more
than four million bolivares ($ 800,000. Am. gold).
The total amount of capital invested in Ven-
ezuela in the cultivation of the tobacco plant
to-day is estimated by experts at ten million
bolivares ($ 2.000,000. Am. gold).
INDIA RUBBER
The technical name of the India rubber tree
is according to Linnaeus, y'l^Mr*?/^ elastica: Person
calls it siphonia elastica; Screber, siphonia cahu-
cha; Awh\Qt, hebea guianeitsis, and QodidiZzi goma
elastica. Rubber is called caucho ox goma elastica
in Venezuela.
Rubber was discovered in French Guiana in
1 758. According to Buscaloni, Ackerman and
Brown, who have made a special study of the
cultivation of the rubber tree, the varieties of
hevea produced in Venezuela, in the upper Ori-
noco, the Rio Negro and the rivers Cassiquiare
and Siapa, are of the same quality as those found
in the region of the Amazon river and the latter's
— 14 —
affluents. The rubber which is produced in the
Orinoco, Cassiquiare and Rio Negro sections of
Venezuela, comes from forests of heveas which
belong to the family of the euforbiaceas. Other
gutiferous trees of the same family are indigenous to
Venezuela but their sap is less elastic and much
thicker.
Besides the rubber forests existing, in the ab-
ove mentioned region, which covers an area of
many million hectares, the rubber tree is indige-
nous to and is found in plentiful quantities through-
out the Guiana section and the Andes range,
and in some States of the East, West and South of
the Venezuelan territory.
In «E1 Caucho en Venezuela*, 1913, by Tavero
Acosta and other publications on the subject, the
cultivation of rubber trees, the smoking and coa-
gulation of the juice, and other data regarding
this industry in Venezuela are discussed at length.
In 1837 the rubber tree was known in the
Venezuelan section of Rio Negro. In i860 a
French merchant settled first at Solano and later
in other places of the Cassiquiare, where the rubber
forests are thickest. More than twenty tribes of
Indians inhabiting the Amazon territory of Ven-
ezuela gather rubber and prepare it, as a general
rule, in a primitive manner.
In the Orinoco region the hevea tree produ-
ces from 40 to 50 grams of juice; in that of the
Rio Negro from 80 to 100 grams and in that of
the Cassiquare from 125 to 150 grams per tree.
In December and January 200 trees produce
12 to 14 kilograms of juice, which represent 6 to 7
kilograms of rubber. In April the juice contains
more water and yields but 4 to 5 kilograms of
rubber.
- 15 —
In the Cassiquiare and Rio Negro regions,
in December and January, the yield of 200 hevea
trees reaches from 13 to 15 kilograms of juice
or 6 to 7 kilograms of rubber, as a general rule.
The crop of 1901 in the Amazon territory of
Venezuela (gathered in three to four months)
produced 135,000. kilograms of rubber, and that
of 1902 (gathered in two months) 101,287. ^^^"
ograms. The rubber crop in the Yuruary terri-
tory for 1 90 1 amounted to 1,840,000. kilograms.
However the aggregate rubber crop of Venezuela
must have been much larger, due to the fact that
this product, as well as many others of the country,
which are gathered within the vast territory bor-
dering on Brazil, are exported through the Brazilian
port of Para and reach American and European
markets as of Brazilian origin.
Rubber trees are cultivated with good results
although not to a great extent in many places situ-
ated near Ocumare and yield an average of 95 %
of pure rubber, each tree producing about 460
grams of juice.
The exploitation of rubber in Venezuela may
be considered to be restricted merely to the ga-
thering of the natural product on a very small scale,
as the many million hectares which produce rubber,
in the above mentioned region of Venezuela,
would require several million people to exploit it.
Therefore the investment of capital on a large
scale is required to develop this important indus-
try. Labor from abroad, of the proper kind and
in sufficient number, must be induced to come to
Venezuela, in order to exploit this immense nat-
ural resource, now scarcely touched. It has a
great demand abroad, and would increase in a
16
considerable manner the revenue of the country.
At the same time it would be a profitable in-
vestment for capitalists, if undertaken in a system-
atic and technical way.
More than Bs. 6 million ($ 1,200,000. Am. gold)
are invested in Venezuela in the rubber industry.
WHKAT
This product {triticum vulgare) was intro-
duced into Venezuela by the Spaniards at the
beginning of the conquest and was cultivated in
Aragua, Barquisimeto, Trujillo, Merida and the
Tachira. The high table lands and valleys in the
mountainous regions of Western Venezuela are
available for the cultivation of wheat and fine
crops are raised now of this grain, which, after
being made into bread, is the chief breadstuff of
all the classes of the country.
In the neighboring Republic of Colombia
wheat is cultivated on a large scale with good
results both in the cold, temperate and hot zones.
Venezuela has similar zones, therefore sowing the
proper kind of grain in each zone, as practiced
in Colombia, and adopting the same or similar
systems of cultivation as are used there, wheat
could easily be raised here not only for home
consumption, but for export in great quantity.
This would be a source of revenue for Ven-
ezuela and a profitable investment for capital if
carried on in a systematic manner, and would
develop a home industry barely exploited now,
due to lack of system, labor and capital. There-
fore with improved methods, implements and ma-
chinery for wheat farming, and greater transport-
ation facilities to the seaboard, this industry in
Venezuela could, in the near future, become one
of its staple exports because under all condi-
17
tions it has always a ready market in foreign count-
ries.
COTTON
Cotton, although a natural product of Ven-
ezuela, was not cutivated until 1782. Its output
became important during the Civil War of the
United States (1861 to 1865), but ater that event
and the subsequent great decline in the prices
of this staple product, the industry was gradually
abandoned.
The cotton tree attains the heigth of a
shrub and under the usual cultivation produces
in Venezuela more than in the United States.
At the beginning of 1800 the average export-
ation of cotton was of 450,000. kilograms a year.
In 1850 the exports of cotton were of K.
300,000. and in 18S8 of K. 57,000.
According to the Statistical Year Book of
Venezuela 267,300. kilograms of cotton with a
commercial value of Bs. 280,600. were exported
in 1913.
Cotton grows in nearly the whole territory
of Venezuela but where the best results have been
obtained are in the States of Aragua and Cara-
bobo, which States produce 54 per cent of the
total production of cotton in Venezuela.
The farmers sow cotton at the same time as
corn or beans, during the month of July and the
crop of coton begins to be gathered at the end
of the month of November or the beginning of
December. This depends upon the time that rains
permit the sowing.
The crops of corn or beans, etc, pay the ex-
pense of the whole cultivation of the cotton and
the only outlay in the > raising of cotton is the
gathering.
18
At present it is estimated that the product-
ion of cotton in Venezuela, in normal times, ex-
cepting droughts, locusts, etc, amounts to seven
million kilograms in the seed.
Two and three quarters quintals (of 46 kil-
ograms) are required to obtain one quintal of
cotton without seeds. This represents an aver-
age of 28.5 p § of the cotton in the seed.
Therefore 28.5 p § o^ 7,000,000. kilograms
of cotton in the seed gives 1,995,000. kilograms
of seeded cotton.
The cotton seeds which were sown in the
month of June 1918 began to give a crop in the
month of December of the same year, and the
gathering of said crop ended in the month of
March 1919.
It has been estimated that this crop produc-
ed a total of 7 million kilograms of cotton
in the seed or 1,995,000. kilograms of seeded
coton, grown in the following States of the Ven-
ezuelan Federal Union; viz:
States of Aragua and Carabobo pro.luced 54pg K. 1,077,300
" " Lara and Portuguesa " i4Pg " 279,300
State " Zulia " 18 pg '' 359,100
Eastern States of Venezuela " 14 Pg " 279,300
?otal production of cotton K. i ,995,000
The price of cotton in Venezuela during the
last eight years (191 1 to 19 19) has fluctuated
between Bs. 70 and Bs. 150. per 46 kilograms.
The last price of Bs, 150 per 46 kilograms,
was the one paid at the end of the 1919 crop due
to the high price that cotton has in the United
States, which is the country producing the great-
est amount of cotton in the world.
19
As Venezuela produced in 1919 a total of
1,995,000. kilograms of cotton which were sold
at an average of Bs. 3.25. per kilogram, the total
value of the Venezuelan cotton crop amounted to
Bs. 6,483,750. ($1,296,750. Am. gold.)
The price of cotton in the United States has
never been higher than $ 14 per 46 kilograms,
but due to the European war, its quotations
to-day are from 34 to 38 dollars per 46 kilograms.
Venezuelan cotton, is classified as cotton
Number 2. Egypt produces cotton Number one.
However, due to the difference in seeds,
soil, cultivation in a small scale, etc., Venez-
uelan cotton is mixed in such a manner, that a
standard quality of uniform length of fibre is not
obtainable in a given lot of cotton from Venezuela.
For this reason the price of Venezuelan cotton
is always somewhat less than that of the medium
class cotton from the United States.
The State of Zulia produces the best qual-
ity of Venezuelan cotton, due to the length of
its fibre and because it is more advantageous
when manufactured, but as the cloth industry in
Venezuela is not intensive enough to warrant,
the classification of fibres, this advantage is un-
available in the aggregate cotton trade of Ven-
ezuela.
The cotton plant gives but one crop a year
and requires to be replanted every year.
In the cultivation of cotton a capital of more
than one million bolivares ($ 200.000. Am. gold)
is invested in Venezuela.
20
TONKA BEANS
The almond of the sarrapia {dipterix odorata)
is exported from Venezuela on a large scale.
This almond has the shape of a large black
almond and gives out a delicious perfume. When
it is dry its' peculiar perfume develops still more
and is used as an odorous basis to make high
grade perfumes, and to flavor tobacco. Being a nat-
ive product it is not cultivated, as a general rule,
but gathered in the sarrapiales or tonka forests
existing in the Amazon territory and District of
Cedefio in the Venezuelan Guiana. Tonka beans
are a staple of great value of the regions watered
by the Orinoco river and its affluents, and ahnost
the entire crop of Venezuelan sarrapia is export-
ed by way of Ciudad Bolivar.
The process formerly in use brought about
the destruction of the trees, but the Venezuelan
Government has taken the necessary measures
to prevent the trees bing felled, as formerly done.
Therefore the large sarrapiales still in existence
are now perfectly protected.
The few concessions which have been granted
for the cultivation of tonka trees, are located in
public lands of the Caura district.
According to official data published in the
Statistical Yearbook of Venezuela for 1913, in that
year Venezuela exported more than half a
million kilograms, in round numbers, of tonka
beans, having a commercial value of Bs. 3,639,000.
(f 727,800. Am. gold). Therefore one or sev-
eral well organized compaines with the necessary
capital at their command, enjoying all the fran-
chises granted by the Venezuelan Government,
would derive great profit as well as the Republic
from such exploitation.
21
VANILLA
Venezuela produces an uncultivated vanilla
plant called vanilla lutescens, but that commonly
known to commerce is the more aromatic kind
designated as vanilla planifola. The cultivation of
this product has not yet been fostered to a great
extent. However vanilla grows readily in the rich
black soil of the States of Falcon, Lara, Bolivar,
Anzoategui and Zamora. Official statistics do not
furnish figures either on the production, cultiv-
ation or export of this product, although it is liable
to be considerably developed.
SUGAR CANE
Sugar cane {saccharum officinaruin) is in-
digenous in Venezuela and cultivated with good
results. Lately, Sugar Cane Central Factories
have been established to manufacture the prod-
ucts of the sugar cane. They are equipped with
the best modern improvements as to buildings
and machinery and have at their disposal suf-
ficient capital to enable them not only to supply
the home consumption but to export their products
in a considerable quantity.
The climate and the fertile soil of Venezuela
are the principal factors in the production of sugar
cane. It grows everywhere in Venezuela except
in mountainous parts lacking irrigation.
Four species of sugar cane are cultivat-
ed in Venezuela, viz: The indigenous, called
Criolla, the Otatz, the Batavian and the Salangore.
The Crzolla, however, is the one that is cultivat-
ed to the largest extent on account of its sweet-
ness and good results.
The planting and cutting of the sugar cane
is effected in such a manner, that there is always
22
in the plantations sujfficient sugar cane reaped
and ready, In order to produce no interruption in
the grinding during the whole year round. For
this purpose the soil has to be kept well irrigated.
The region near the lake of Valencia produces
longer and thicker canes having more juice, but
they contain less sweetness.
Sugar plantations are divided into tablones
covering 90 meters square, each lot separated by
a road. Such lots, when they are well manured,
irrigated and sown with sugar cane, produce 60
to 80 loads of papelon (brown sugar) or 160 loads
of alcohol; that is to say: 5,120. cones of brown
sugar, wheighing 8,129. kilograms or 9,600. liters
of alcohol.
Every plantation of some importance has a
special building with the necessary machinery and
equipment for manufacturing the different sugar
products. These are sugar, brown sugar, alcohol
and rum.
In the vicinity of Caracas there is a plant-
ation which produces a considerable quantity of
alcohol and another in the Libertador depart-
ment producing about the same quantity.
Brown sugfar is offered for sale moulded in
different forms. For instance in the Federal
]3istrict. States of Miranda and Araguaitis mould-
ed in cones weighing each, one kilogram and 600
grams. In Los Andes section and States of
Zulia, Falcon and Lara, brown sugar is shaped
in square bricks weighing also one kilogram and
600 grams. In Carabobo the cones weigh 500
grams.
The best quality of sugar produced in Ven-
ezuela is manufactued near Guatire, a town at
three hours distance from Caracas by motor truck
or automobile.
The largest quantity of sugar is produced in
a plantation near the city of Maracaibo. There
is also a plantation near La Guaira which prod-
uces granulated sugar.
The largest quantity of brown sugar is prod=
uced in a plantation near Caracas, having 2,700.
hectares of sugar cane under cultivation.
Rum is manufactured with sugar cane alcohol.
The principal Sugar Central Factories in
Venezuela are the following:
Sucre, Sugar Central, Maracaibo, capital
Bs. 7 million (f 1,400,000. Am. gold), 1500. hect-
res cultivated, 800 Metric Tons daily output of
sugfar.
Venezuela, Sugar Company, Maracaibo, in-
corporated capital Bs. 25 million (f 5 million
Am. gold), 2,000 hectares under cultivation, 800
M. T. daily output of sugar. These two plants
are situated at Bobures.
La Ceiba, State of Trujillo, Office in Cara-
cas, capital Bs. 3 millions (f 600,000. Am. gold),
1,000 hectares cutivated, 400 M. T. daily output
of sugar.
Tacarigua, near the lake of Valencia, capital
Bs. 3 millions (f 600,000. Am. gold.), 1.500 hect-
ares cultivated, 500 M. T. daily output of sugar.
Petare, Sugar Company, valley of Caracas,
capital Bs. 500,000. (f 100,000. Am. gold), 600
hectares cultivated, 100 M. T. daily output of sugar.
There are other sus^ar factories throucrhout
the country with first rate modern plants, for
24
instance that of Juan Diaz, in Macuto, with a
daily output of 80 metric tons of sugar.
The above mentioned Sugar Central Fact-
ories, about which precise data were obtainable,
command an aggregate capital of Bs. 38,500.000.
($ 7,700,000. Am. gold), have a total of 12,800.
hectares of sugar cane under cutivation and can
produce 2,600 metric tons of sugar per day.
This product at present commands a high
price abroad, therefore, with good management,
these plants begin to offer a Venezuelan product
for exportation in a certain quantity and of a very
good quality, and without much difficulty they
will be able to establish a market for it and in-
crease their output. Therefore these enterprises
and Venezuela will derive considerable benefit
therefrom.
According to the Resume of the Farmers Dir-
ectory of Venezuela in 1913, there existed 600 indi-
viduals and companies devoted to the cultivation
of sugar cane, wMth an aggregate total capital of
more than Bs. 53 millions ($ 10,600,000. Amer-
ican gold) invested in this industry.
COCOANUTS
The cocoanut tree is indigenous in Venezuela,
and there are extensive plantations of them in the
Zulia.Carabobo, Bolivar, Barcelona and Cumana
regions. Cocoanuts are used for various purposes
abroad, therefore the cultivation of this natural
product could be fostered so as to make it an article
of export on a large scale and it would become a
profitable investment not requiring a large capital.
En 1913 there were invested in Venezuela in
the cultivation of cocoanut trees Bs. 5,476,000.
($ 1,095,200. American gold).
25
INDIAN CORN
Indian corn is successfully cultivated in all the
States of Venezuela, where it grows in every kind
of soil, from the level of the sea to 2,800. meters
above it. However it thrives best at an alti-
tude of 500 to 1,000 meters. There are in Ven-
ezuela about 30 thousand hectares of land (74,131.
acres) devoted to the production of corn, and the
total amount raised is estimated at 150,000. metric
tons.
Special attention has lately been paid to the
cultivation of corn, which is the real breadplant
in Venezuela, especially in the interior of the
country, and a considerable quantity of Indian
corn has been exported.
BEANS
Beans are successfully grown in all the States
of Venezuela and a great variety of them is prod-
uced. Those having the greatest demand are the
black beans. Their production not only meets
the domestic demand but they have lately been ex-
ported in considerable qualities. They readily
grow at all times of the year and are one of
the principal articles of domestic commerce in
Venezuela.
INDIGO
This product was introduced in Venezuela
in 1777 and planted near La Victoria, and later
in many places. The best quality was produced
at San Sebastian. Due to the high price attained
by coffee many years ago the cultivation of indigo
was abandoned. However, in 1802 the export-
ation of indigo amounted to 1,876,510. pounds
(851,170. kilograms) worth, in present Venezuelan
currency, Bs. 12,250,000. ($ 2,450,000. Am. gold).
26
This product has now sufficient demand in
foreign markets to warrant the revival of its cult-
ivation and the investigation of the ways and
means to make it a remunerative export article of
Venezuela.
The natural resources of Venezuela, open to
exploitation on a large scale, taken into consider-
ation in the foregoing brief description amount
only to fourteen, because the quantity of products
of the Agricultural zone of Venezuela is too num-
erous to be discussed separately within the bounds
of a concise statement like the present one.
More space would be required to elucidate the
methods of fostering their exploitation, in order
to transform them into profitable industries for
Venezuela, as well as for those who would be
willing to devote their efforts to develop them.
More than Bs. 52 million ($ 10,400,000.
Am. gold), of products of the Agricultural zone
of Venezuela were exported in 191 7-1 9 18.
In this zone more than Bs. 230 million
($ 46,000,000. Am. gold) are in vested in Ven-
ezuela.
FOREST ZONE
This vast region extends from the gulf of
Maracaibo over the mountains of Yaracuy, San
Felipe, Aroa, Tucacas, Turen, San Camilo, Guiana
and its territories, and from the untouched forests
which cover the slopes of the Trujillo and Bar-
quisimeto mountains, to the fertile woodlands of
the State of Zamora.
The Forest zone comprises about half of
the Venezuelan territory, of which more tan gS°lp
is still virgin land.
27
From this immense region Venezuela can de-
rive natural resources of unlimited wealth, when
sufficient labor and capital are available; better
means of transportation are established, and more
modern machinery and implements employed.
Therefore this zone is one of the principal prospects
of the future progress and natural growth which
Venezuela will undoubtedly attain in a near future.
The following table shows the division of the
Forest zone of Venezuela.
DIVISION
-]
SQUARE KILOMETERS
Public forest lands
295,400.
125,000.
Private forest lands
Of the 6oo species of woods to be found in
the Forest zone of Vene^uela, 2070 samples were
exhibited at the National Exposition held in
Caracas in 1883 in commemoration of the cent-
enary of the birth of Bolivar, the Liberator.
At the World's Columbian Exposition held
in Chicago in 1893, Venezuela exhibited 145 kinds
of woods for ornamental purposes and 20 kinds
of woods and barks suitable for dyeing and tanning.
The Venezuelan flora produces likewise many
dyeing and tanning substances that are not exploit-
ed, as well as gums, resins and different drugs.
Fiber plants exist in a great variety, in con-
siderable quantity and of superior quality, such a
the cocuiza sisal, cucui, gamelote, jipijapa, flax,
majagua, ramie, sibiera and sanseviera, etc. — The
28
latters's fibers are several meters long, very flex-
ible and of great resistence.
Different kinds of palm trees are to be found
principally in the States of Anzoategui and Mo-
nagas, and in the Guiana section. They produce
saps from which the native Indians manufacture
wine, vinegar, oil, soap, starch, etc., and use their
leaves, especially prepared, to make hats, cloths,
hammocks, baskets, mats, etc.
Venezuela produces different kinds of starches
and vegetable oils, and the Venezuelan Fauna
valuable skins.
The dried bodies of the females of a homop-
terous insect, caUed cochineal, which lives on several
species of prickly pear, principally on the tuna
{opuntia cactus ), are used to make carmine.
Animal oils, wax and honey are abundant
in Venezuela.
A considerable industry has already been es-
tablished for gathering aigrettes or heron feathers,
of which the rarest and most beautiful are those
3hed by a species of heron called chiimita.
As the National Government has taken
stringent measures to prevent the killing of the
birds to secure the crop of feathers and guards
the garceros or places where the herons flock
together and roost, the ban established in certain
countries on the importation of aigrettes, based
upon the destruction of defenseless birds, has no
reason to hold good as to aigrettes exported from
Venezuela. Therefore the obstacle which has pre-
vented the development of this industry ought
to be removed by means of special conventions
so as to open without delay the closed markets
to this Venezuelan natural product.
29
The value of the products of the Forest zone
of Venezuela exported during 1917-1918 was of
more than 9 million bolivares ($ 1,800,000. Am.
gold).
The capital invested in the cultivation of this
Zone amounts to more than ten million bolivares
(f 2 million Am. gold) in Venezuela.
MINING ZONE
There is scarcely a mining product known
that cannot be found in some part of the vast
expanse of territory of Venezuela, whose princip-
al mineral resources consist of gold, silver, copper,
iron, tin, lead, quicksilver, asphalt, petroleum,
coal, sulphur, asbestos, diamonds, platinum and
different kinds of precious stones.
About the year 1550 various expeditions
prospected the different sections of Western Ven-
ezuela in search of precious metals. In 1551 the
San Pedro mine was discovered and actively
worked but abandoned in 1552, when the prop-
erties were destroyed by an earthquake. In 1560
Fajardo discovered the mines of Los Teques and
was obliged to stop their exploitation on account
of the hostility of the Indians. In 1584 the mines
of Apa, Carapa and other mines in Baruta were
discovered, as likewise those of Aroa, Chacao,
Mariches, Pao de Zarate, Cipe, Cocorote, etc.
According tho the Venezuelan Yearbook of
1896, published by the Government, there are
in the territory of Venezuela 226 mining deposits,
of which 62 are gold nines, 29 coal mines, 14
copper ore, 10 iron ore, 9 silver, 7 sulphur 7
lead, 6 asphalt, 6 rock crystal, one diamond, 2
platinum and the remaining 73 deposits contain
many other metals.
30
Gold exists in all the States and Territories of
Venezuela, but the larger deposits which have
been discovered are located in the Yuruary region.
Copper is exploited in the rich Aroa mines,
at some distance from Puerto Cabello. There are
likewise many unexploited copper mines in Coro,
Carabobo, Barquisimeto, Merida, etc.
Ironoi the magnetic kind, exists in the range
of mountains near Coro, Barinas, Barcelona and
Cumana.
Lead is found in a mine near the Tocuyo,
whence very good samples have been taken. In
the neighborhood of Caracas there is a lead mine
which appears to contain a great quantity lead,
according to recent explorations.
Asphalt exists and is exploited near Peder-
nales to a considerable extent. Near Guanta and
along the lake of Maracaibo many asphalt mines
or asphalt lakes are under exploitation.
Petroleum abounds in many sections of Ven-
ezuela and several companies having at their
disposal the necessary capital are exploiting this
natural product.
Coal is found at a few kilometers from Bar-
celona and some of these deposits are exploited.
There are also rich deposits along the Venezuelan
coast and the coal mines found in the Zulia
section are reputed as being first class.
The present research would become diffuse
should more than the seven forec»-oinor mini no;
products be taken into consideration with refer-
ence to the Mining zone of Venezuela, there-
fore let us confine our efforts here to examine
what has been officially published by the Ven-
31
ezuelan Fomento Department in its Annual Report
submitted to Congress in 1918.
The Department begins by declaring that it
considers Venezuela as essentially agricultural and
has therefore made efforts to develop this import-
ant branch of Venezuelan progress.
The total mining revenue of Venezuela for the
fiscal year 1916 -191 7 is given as amounting to Bs.
946,156. ($189,231. Am. gold).
The revenue ixom. pearl fisheries amounted
during the same period to Bs. 247,900. ($ 49,580.
Am. gold).
Notwithstanding the abnormal conditions
due then to the world war, in 1917 Venezuela
exploited 958 kilograms and 304 grams of gold,
42,270. metric tons oi copper, 54,071. metric tons
of dsphalt, 18,248. metric tons of petroleum and
20,164. metric tons of coal.
Exports of gold amounted to 902 kilograms
and 501 grams valued at Bs, 2,669,599. ($ 533,919.
Am. gold), those of copper to 43,701. metric tons,
of asphalt 47,124. metric tons, and of petroleum
8,650. metric tons.
The number of enterprises in activity were
16 exploiting gold, 9 copper, 8 asphalt, 3 tar and
97 prospecting petroleum, of which 45 were being
exploited.
The Official Trade Statistics of the Finance
Departament for 1916-1917 show that during that
budget year, Venezuela exported, in round fig-
ures, Bs. 9 million (f 1,800,000. Am. gold) of
gold, more than Bs. 64 million (f 12,800,000. Am.
gold) of magnesite, more than Bs. i million ($
200,000. Am. gold) of copper and the same value
of asphalt.
32
Foregoing figures show that an aggregate
total of over Bs. 75 millions ($ 15 millions Am.
gold) of Venezuelan mining products was exported
in 1917.
The Annual Report submitted to the Ven-
ezuelan Congress by the Fomento Departament
in 1919 states, that as Venezuela contains in its
soil many useful and valuable mineral deposits, it is
bound to be selected as a country where foreign
capital can be profitably invested, and that for some
time representatives of powerful enterprises fre-
quently apply to "the Fomento Departament for
information regarding the regions where they may
make good investments.
Petroleum and similar substances, which are
now so vastly used in industries, undoubtedly exist
in enormous quantity in Venezuelan soil and invite
the investment of the required capital to become
the source of immense wealth.
The decree regulating the exploitation of
coal, petroleum and similar substances, dated
October 9, 1918, establishes the conditions re-
quired to explore and exploit these natural pro-
ducts and grants prospectors all the necessary
facilities, and secures for Venezuela the efficient
and profitable exploitation of said deposits.
In pursuance to said decree, the Fomento
Departament has passed several Resolutions and
opened for bids the zones which are free in the
States of Zulia, Tachira, Trujillo, Merida, Falcon
and Sucre.
The New York and Bermudez Company and
the Caribbean Petroeum Company exploit consid-
erable quantity of asphalt and petroleum.
33
The first named Company exploited in 1918 a
total of 46,453. metric tons and exported 43,347.
metric tons of asphalt.
The second exploited in 1918 a total of
48,306,000. metric tons and exported 22,201,343.
metric tons of petroleum.
The public revenue derived from this branch
of income, up to March 19, 1919 produced the sum
of Bs. 1,053,900. ($ 210,780. Am. gold).
The exploitation of alluvion gold amounted
to 712,007. grams of gold. Of copper 29,708,195.
kilograms were exploited and the tax collected up
to March 19, 1919 in this regard was of Bs. 129,317.
($ 25.863. Am. gold).
The aggregate total of public revenue from
mining taxes amounted to Bs. 821,935. ($ 164,387.
Am. gold).
The historic copper mines of Aroa, situated in
the valley of San F'rancisco de Cocorote, in the
vicinity of the Yaracuy river, were granted in
guaranty by Royal Spanish Schedule of 1663 to
Martin Narvaez and were inherited by the family
of the Liberator Simon Bolivar.
In 1828 they were sold by Bolivar to the Dent
family and in 1864 were revalidated in the two
portions according to which they had been sold,
that is to say: Block N° i. and Block N° 2.
At present Block N° i. belongs to The South
American Copper Syndicate and Block N? 2. to
the Bolivar Railway Company Limited.
The fishing for pearls along the Venezuelan
coast was interrupted because the pearl oysters were
suffering form the so-called titrbio ailment. Form
January 1st. 1918 to January 1st. 1919 pearls were
34
fished only during the first three months of 1918.
The oyster beds were reproduced and fishing for
pearls was begun in January 1919, The revenue
from permits for pearl fishing amounted to Bs.
142.680. ($ 28,536. Am. gold).
The National Collieries in the State of
Anzoategui are a great natural resource and the
Fomento Department is endeavoring to establish
an intensive exploitation in order to utilize the
coal dust and to manufacture coke.
In order to demonstrate the mining resources
of Venezuela and show how to exploit them care-
fully, the Fomento Department intends to exhibit
samples of the mineral products of Venezuela.
GOI.D DEPOSITS IN VENEZUELA (*)
Sir Walter Raleigh in one of his Western
voyages in search of El Dorado, headed an exped-
ition to the Orinoco in 1595 and explored the
river in small boats as far as Angostura, now
Ciudad Bolivar. He collected samples of gold and
diamonds, brought to him by the Indians, but
failed to find the source of either.
This part of Venezuela is of large extent,
almost one-third the entire area of the country.
The interior is best reached by means of the
Orinoco river, which is navigable during most of
the year for ocean-going steamers as far as
Ciudad Bolivar. The nearest part of the gold
district lies 150 miles Southeast from the port of
San Felix on the Orinoco, whence a wagonroad
connects with the mining town of El Callao and
(*) Abstract from "The Gold District of Venezuela." by
H. Huntington Miller, in the "Mining & Scientific Press" San Fran-
cisco, Cal. — Pan American Bulletin — Jan. 1919.
35
extends to the lower part of the district loo miles
Southeast.
The distribution of gold is general throughout
this extensive area and its occurrence can be divided
into three types: true alluvials, belts or zones of
shale and quartz veins.
The alluvial deposits are mainly confined to
the extreme South Eastern portion, close to the
border of British Guiana.
Some placer gold is found along the Caroni
and especially in the smaller tributaries of the
Orinoco just above Ciudad Bolivar, although these
parts are as yet little explored.
A study of the rock formation indicates that
gold is contained within stingers and crystalline
grains of arsenical pyrite. The oxidation and
decomposition of this mineral and of the friable
schist that encloses it, has resulted in the formation
of the dry pockets for which some portions of the
district are famous. The gradual weathering of the
schist and the washinor out and concentration of
the gold in the beds and banks of the streams
have originated the placers of the lower country.
The gold-bearing quartz veins so far discov-
ered are mainly confined to the more Northerly
portions of the district around the old town of
El Callao, which, during its period of maximum
production, ranked among the notable mining
ventures of the world and is reputed to have
produced $ 50,000,000. in thiry-odd years of its
life.
The three companies still operating in Ven-
ezuela are the following:
''Gold Fields of Venezuela (^Ltdy\ — This is an
English corporation with headquarters at El Peru,
36
owning a large group of mining claims about 4
miles West of El Callao. The ore, after being
crushed, is ground with addition of quicksilver.
The discharged pulp is passed over amalgamation
plates and the tailing from the plates is treated in
steel tanks by cyanidation. The ore yields from
one to four ounces of gold per ton.
''^El Amparo Mine {Ltdy\ — This is also an
English corporation owning the majority of stock
in another company of similar name incorporated
in Venezuela to work the famous La Paz Bonanza,
from one of the surface pockets of which 10,000.
ounces of gold were taken by crude methods,
from a series of rich veinlets and pockets almost at
the surface. The exploitation is carried on in the
same way as in the former mine just described.
'"Compania Anonima Lo Increible' . — This is
a Venezuelan corporation with headquarters at
Caracas. The mines, 8 miles Northeast from El
Callao, are the result of a comparatively recent
discovery. The hard quartz ore is crushed in a 20
stamp mill through 2o--mesh diagonal slots-
screens, the free gold being extracted by amalgam-
ation. The average extraction from over 40,000.
tons crushed to date is slightly in excess of half an
ounce per ton, about }{ ounce remaining in the
tailing. About 25,000. tons of tailing is now ready
for cyanidation and the company is preparing to
erect a plant to treat this residue as well as to
handle the new tailing. Several veins are in process
of exploitation and the future of the property is
good.
''New Callao Minino C*^". — This is the success-
or of the original El Callao, which was an English
Company. The present corporation being a French
organization, has been in trouble due to the war.
37
as the necessary capital has been impossible to
obtain.
The Cicapra district which is situated about
25 miles Northeast from El Callao, made a sensation
some 10 or 15 years ago on account of the discov-
ery of a succession of rich surface pockets of
course gold, found almost under the grass roots in
the low hills bordering the banks of the Cicapra
river, a branch of the upper Yuruari. The gold is
decomposed schist. A portion of this zone, includ-
ing the bed and banks of the Cicapra river, is
being explored by the Yuruari C?, a Venezuelan
corporation, with headquarters at Caracas. The
operations which are as yet of a preliminary char-
acter, are being carried on by means of a small
clamshell dredge, with a capacity of 200 cubic
yards per day. The entire property of several
hundred acres has been fairly well prospected by
churn-drilling, and several million cubic yards is
estimated to be available, with an average yield of
$ I per yard, at a cost of 50 cents per yard.
The Cuyuni and El Dorado districts of Ven-
ezuelan Guiana, embrace the extreme South Eastern
part of Venezuela, extending to the frontier of
British Guiana. The production is mainly from
alluvial washings, although some gold is now being
won from quartz veins.
Two French Companies are operating in the
district. They are known locally as the Cuyuni C°
and the Perseverancia or El Dorado C°. In add-
ition to these two ventures, a considerable quantity
of gold, amounting to several thousand ounces, is
produced by primitive hand washing in bateas and
hand rockers, from concessions belonging to private
individuals.
Altogether, this is a rich and promising district
and may become of much greater importance.
38
With better facilities in the shape of dredges
and other modern gold-saving machinery, as well
as the construction of better roads from the Orinoco
river, South Eastern Venezuela may easily take its
place in the front rank as one of the most prod-
uctive gold-mining districts of South America.
The entire district, with the exception of the
immediate vicinity of El Callao, is fairly well
timbered. The rivers and larger streams abound in
water-power sites, and the country presents no
unusual difficulties to the construction of good
roads.
This applies in equal proportion to the North-
ern part, around El Callao.
The climate, while hot and damp in the rainy
season, is not unhealthy for white men who observe
the usual precautions necessary in all tropical
countries.
39
The following table gives the names of the
Mining Companies established in Venezuela and
their capitals.
Names of the Mining Companies
Capital in
Bolivares
Caribbean Petroleum Co,
20,782,482.
20,000,000.
8,914,932.
4,747.000.
4,319,820.
3,380,000.
2,316,996.
2,000,000.
1,616,354.
800,000.
660,000.
149,022.
New Callao Mining Co
New York and Bermudez Co
Colon Development Co. Ltd
Bermudez Co
El Dorado Rubber, Balata & Gold Mining Co. . .
Venezuelan Oil Concessions Ltd
Lo Increible Mining Stock Co
La Cumaragua Mining Stock Co
El Diamante, El Marne, La Salvacion, etc
Cara al Sol, Sol en el Cenit, Mi Fortuna, etc
Amparo Mine Ltd
Totals
69,686,966.
Am. gold
13.937.393-
In 1917--1918 more than 8 million bolivares
($ 1,600,000. Am. gold) of mining products of
Venezuela were exported.
PASTORAI, ZONE
This great zone covers, in round mimbers, an
area of 300,000. square kilometers and extends,
from East to West, from Barrancas, on the vertex
of the delta of the Orinoco, to the wide plains of
Sarare on the frontier of Colombia, and, from South
to North, from the Vichada river to the mountains
of El Pao, State of Carabobo.
Like this region there is no other where the
animals feed the entire year exclusively on a great
variety of green grass, growing naturally on the
40
fertile soil which does not need any tilling, as
otherwise the case in other countries.
This region looks like an immense sea of
grass, which, as far as the eye can reach, is bounded
by the horizon, whose background is inclosed by
the mountain ranges and forests of Guiana.
This is the region where live stock is born,
raised and fattened entirely on the prairie without
need of artificial shelter or much care of man. It is
the great breeding section which furnishes the
Agricultural zone with all the cattle necessary for
its labor and the meat, milk and milk products
requisite for the subsistence of its habitants.
Live stock was introduced in Venezuela by
the Spaniards and brought from Andalucia. In 1804
there existed in Venezuela 1,200,000. head of
horned cattle, but the war of Independence reduced
this number to 256,000. In 190 1 there existed two
million head and now it is estimated that there are
2,600,000. head of horned cattle throughout the
Venezuelan territory.
However, Venezuela is well adapted to stock
raising on a much larger scale than now, due to
fact that she is second only to the Argentine
Republic in possessing so vast an area of rich land
covered with natural pasture.
In order to establish comparisons let us take
into consideration, that the three countries possess-
ing most horned cattle are the United States
wnich has 72 million head, Russia (European and
Asiatic) 48 million and the Argentine Republic
over 30 million.
The latter country, after having brought about
the production at a minimum cost of the proper
class of cattle to export meat in a chilled but not
41
frozen state (because in the former condition it
commands a much better price in England), has
passed stringent laws and exerted the greatest
care to prevent the importation of cattle having
contagious diseases, injurious to public health or
which might lower the standard of cattle obtained.
The systems and methods adopted in the
Argentine Republic, in the United States and in
certain European countries to improve the breed
of their cattle, are worthy of being studied in order
to introduce in Venezuela those which have not
yet been adopted, because there are here 1300
cattle raisers and dealers whose investments in
this industry amount to more than Bs. 110 million
($ 22 million Am. gold).
The majority of the stock raisers in Venezuela
for a long time had limited their efforts to simply
exploit the industry without giving attention to its
improvement, with the exception of Generals
Guzman Blanco and Crespo who initiated the
betterment of our live stock.
At present there are some stock raisers of
importance who are devoting great attention to
this question, especially General Gomez who makes
a great effort to solve it, and for several years has
been methodically crossing specimens of full blood-
ed horned , cattle of several species imported for
that purpose, in order to produce a better kind of
cattle perfectly acclimated in Venezuela.
A group of cattle owners have lately adopted
modern methods to this effect and obtained cons-
iderable improvement in their live stock, as well
as in the choice of pastures. For instance, in the
cultivated meadows of the valley of Maracay a
considerable quantity of live stock is fattened and
kept in good condition in order to have constantly
on hand a sufficient number to supply the 300 oxen
42
killed daily at Puerto Cabello for the Frozen Meat
Company which exports them. In this valley, sheep,
hogs and horses are raised, and acclimated spec-
imens of special breeds have already been obtained
for reproduction in other parts of the country.
The following table shows the totals of horned
cattle, horses, mules, sheep, goats, asses and hogs
existing in Venezuela in each of the 12 years about
which approximate data have been obtainable.
Years
Total Heads
of
Cattle.
Years
Total Heads
of
Cattle.
1804
1,200,000.
1858
12,000,000.
1812
4,500,000.
1864
5,800,000.
1823
256,000.
1873
3,302,670.
1833
2,437,150.
1883
8,591,860.
1839
4,617,560.
1894
6,345,560.
1847
5,503,000.
1899
6,059,480.
Live Stock on the hoof exported from Ven-
ezuela from 1831 to 1904.
Years
Number of
Heads
of Cattle
Years
Number of
Heads
of Cattle
1831
1847
1852
1882
1,825.
15,976.
13,316.
5,929.
1898
1901
1903
1904
24,000.
60,000.
60,000.
60,000.
43
Live Stock on the hoof exported from Ven-
ezuela from 1915 to 1918.
Years
Number of
Horned
Cattle
Weight
in
Kilograms
Value
in
Bolivares
1915
18,339.
5,415,000.
1,499,000.
1916
18,267.
5,115,000.
1,430,000.
1917
18,333.
5,195,000.
1,620,000.
1918
19,020.
5,343,678.
1,540,000.
Frozen Meat exported from Venezuela from
191 5 to 1918.
Years
Number
of
Carcasses
Weight of
Frozen Meat
in Kilograms
Value
1 in
Bolivares
1915
17,847.
2,197,240.
983,317.
1916
18,267.
3,315,990.
1,671,080.
1917
18,335.
4,978,420.
1,991,368.
1918
— —
5,867,770.
2,339,335.
The sum of Bs. 5 million ($ 1,000,000. Am.
gold) was invested in pastures in Venezuela in
1913, according to official statistics.
The foregoing brief statement about livestock
raising in Venezuela shows that this industry has
44
commenced to be exploited in a systematic manner
and is liable to be greatly developed in the near
future.
The value of the products of the Pastoral zone
of Venezuela exported in 1917-1918 amounted to
more than Bs. 12 million ($ 2,400,000. Am. gold).
In the following table the amount of capital
invested in Venezuela in the cultivation of its eisfht
principal agricultural products is shown.
CAPITAL INVESTED IN THE CULTIVATION OF
Aggregate
Total
Bs.
ECofee
trees
Million
Bs.
Cacao
Million
Bs.
Sugar
Cane
Million
Bs.
Balata
&
Rubber
Million
Bs.
Cocoa-
nut
Trees
Million
Bs.
Tob-
acco
Million
Bs.
Ban-
anas
Bs.
Cotton
Million
Bs.
80
65
57
10
10
10
500,000.
2
230,500,000.
The above table ahows that more than Bs.
230 millions ($ 46,000,000. .'\m. gold) are invested
in the exploitation of the eight principal agricult-
ural industries in Venezuela.
The following table shows the capital now
invested in Venezuela in its Agriculture, Industries,
Stockraising, Pastures and Commerce.
Agriculture
Million
Bs.
Industries
Million
Bs.
Stock Rais-
ing and
Pastures
Million
Bs.
Commerce
Million
Bs.
Aggregate
Total
Thousand
Bs.
230,5
350
115
400
1,095,500.
The above table shows that the aggregate
capital invested in Venezuela in the exploitation
45
in the four principal branches of systematic and
profitable work amounts to Bs. 1,095,500,000. ($
219,100,000. Am. gold).
The aggregate weight in Kilograms and value
in Bolivares of the principal products of the Agri-
cultural, Forest, Mining and Pastoral Zones of Ven-
ezuela, exported during the fiscal year 1917-1918,
taken from the Trade Statistics officially pub-
lished by the Department of Finance, amount to
201,316,460. Kilograms and 82,227,274. Bolivares.
The following four tables show the principal
products exported from the Agricultural, Forest,
Mining and Pastoral Zones of Venezuela in 1917-
1918, their weight in Kilograms and values in Bol-
ivares.
AGRICULTURAIv ZONE
Products
Cotton
Starch
Sugar
Cacao
Coffee
Bauauas.
Indian corn ..
Brown sugar.
Tobacco
Total.
Weight in
Kilograms
3,067.
248,801.
13,260,562.
20,280,865.
34,123,145.
377,636.
21,360,191.
5,440,551.
297,579.
95,392,397
Values in
Bolivares
4,930.
104,307.
5,526,798.
10,603,372.
29,190,622.
58,205.
4,878,173.
1,427,161.
324,436.
52,118,004.
46
FOREST ZONE
Products
Balata
Rubber
Cocoanuts
Copaiba
Chicle
Copra
Dividive
Woods
Sarrapia (tonka-beans)
Total
Weight in
Kilogrrams
1,120,716,
108,051,
998,692,
34,420.
204,540,
82,611,
7,556,563
3,312,412,
92,625,
13,510,630.
Values in
Bolivares
6,464,857.
708,711.
113,135.
167,880.
520,814.
48,169.
751,433.
225,800.
132,671.
9,132,520.
MINING ZONE
Products
Gold bearing sands.
Asphalt
Coal
Copper
Gasoline
Magnesite
Gold
Pearls
Crude petroleum
Total
Weight in
Kilograms
41,328.
46,773,149.
865,047.
4,514,609.
11,045.
1,000,000.
1,353,370.
133,450.
22,182,682.
76,874,980.
Values in
Bolivares
26,866.
1,828,552.
24,595.
1,975,464.
9.775.
20,000.
2,650,732.
762,325.
889,898.
8,188,207.
47
PASTORAI, ZONE
Products
Salted meat
Frozen meat
Animal hair
Horns
Skins
Frozen residues of horned cattle
Horses, goats, sheep and hogs
Horned cattle
Wool
Soles
Total
Weight in
Kilograms
22,543.
5,867,770.
352.
27,647,
3,617,826,
508,615,
100,830
5,343,678
1,895
77,307
15,538,463
Values in
Bolivares
16,990.
2,339,335.
499.
8,843.
8,366,152.
54,910.
122,687.
1,540.940.
775.
337,212.
12,788,343.
SUMMARY
Products by Zones
Weight in
Kilograms
Values in
BoHvares
Agricultural Zone
95,392,397.
13,510,630.
76,874,980.
15,538,463.
52,118,004.
9,132,520.
8,188,207.
12,788,343.
Forest Zone
Mining Zone
Pastoral Zone
Totals
201,316,460.
82,227,074.
48
VENEZUELAN CURRENCY
STOCK OF GOLD
The following table shows the stock of coined
gold existing in Venezuela from December 31"^',
1915 to December 31'"', 1918.
Years
Gold Imported
Bolivares
Gold Exported
Bolivares
Stock of gold
Bolivares
1915
1916
1917
1918
30,340,822.
7,616,209.
18,421,894.
6,149,131.
9,229,885.
18,448,511.
6,149,131.
1,613,676.
26,617.
Totals
33,827,527.
1,640,293.
62,528,056.
Therefore the stock of coined gfold existing- at
present in Venezuela amounts to Bs. 62,528,056.
(I 12,505,611. Am. gold).
The actual population of Venezuela, in default
of a recent National Census, reckoned at 2,700,000.
inhabitants gives in relation to the stock of coined
gold existing in the country Bs. 23.^ in gold (f
4.^. Am. gold), per unit of population.
STOCK OF SILVKR
The respective law only allows national silver
coins to circulate.
Silver coins of any foreign country are of for-
bidden importation and circulation since 1S86.
The stock of silver existing in Venezuela is
estimated at Bs. 40 million. ($ 8 millon Am. gold).
49
As the population of Venezuela is estimated
at 2,700,000. inhabitants therefore the per capita
in silver is Bs. 14.^ ($ 2.!!. Am. gold).
Consequently the per capita in gold of Ven-
ezuela is Bs, 23.!^ and the per capita in silver
Bs. 14.'!
GOI.D STANDARD
Every value in Venezuela is based and calcul-
ated in gold, therefore gold is the monetary stand-
ard of Venezuela.
The only paper money which circulates in
Venezuela is the bank note. Bank notes are issued
by the four National Banks, to wit: Banco de Ven-
ezuela, Banco Caracas, Banco de Maracaibo, and
Banco Comercial of the latter city.
The issuance of said bank notes is limited and
completely guaranteed, according to the respect-
ive law of Venezuela.
SOUNDNESS OF THE MONETARY SYSTEM
OF VENEZUELA
Never before has there existed in Venezuela
nor is there at present in existence any kind of
depreciated monetary or fiduciary currency. Like-
wise there has never circulated before nor is at
present in circulation any such depreciated cur-
rency, therefore Venezuela occupies in this respect
a very favorable position in comparison with any
of the other Latin American Republics.
MANUFACTURING AND OTHER INDUSTRIES
There exist in Venezuela many industries prod-
ucing articles of food and other necessities of civ-
ilized life which use steam and electricity as motive
power.
50
The main industries of this kind are repre-
sented by factories of agricultural machinery, imp-
lements, carriages and wagons, pianos, furniture,
aerated waters, blank books, stationery, ice, choc-
olate, matches, mirrors, soap, candles, electrotypes,
glass, paper, wines, beer, butter, canned goods, elect-
ric light and power, cigars and cigarettes, cotton
goods, fiber and rope, leather, shoes and many
others.
Among factories special mention is due to the
Dairy and Canning Establishment at Maracay
supported by sufficient capital. It was put into
operation six years ago in the outskirts of Maracay
and owes its existence to the support which General
Gomez has given it. This industry is housed in a
building especially erected for the purpose and
fitted out with all the modern machinery and latest
appliances necessary to exploit the milk products.
Two kinds of butter are manufactured in this
dairy; one with salt and another without it, and
canned sterilized milk and cream are also produced.
The selection of cattle breeds for the purpose has
produced specimens of milch cows giving an aver-
age class of milk which enables the dairy to manu-
facture one kilogram of butter out of i8 liters of
milk and the daily output amounts to about 500
kilograms of butter, giving an average of 180,000.
kilograms of butter a year. In a separate section of
the dairy, cheese is manufactured, moulded and
dried in a refrigerating plant for this purpose.
The Paper Factory at Maracay makes use of
domestic raw material and has begun to supply a
considerable portion of the domestic demand for
paper in Venezuela.
The most important breiveries in Venezuela
are the National brewery at Caracas, that of Mar-
acaibo and that of Maiquetia. The. first named can
produce 30,000. hectoHters of beer a year.
The manufacture of leather is an important
industry in Venezuela.
There are several tanneries in Caracas, Val-
encia, La Guaira and other places in Venezuela.
Great quantity of domestic cattle, sheep and goat
skins are tanned. The shoe factories and saddleries
have attained great development.
There are three principal chocolate factories in
Caracas, the most important of which produces
25,000. kilograms of chocolate a year.
The Caracas chocolate is considered the best in
the world.
The pricipal cotton goods factories are those
of Caracas, Valencia and that of the Eastern part
of Venezuela. These three plants have the finest
machinery available for manufacturing cotton cloth,
of which they produce a very good quality as well
as drill, canvas, underwear, etc., which have a great
domestic demand.
The cotton goods factories of Caracas and Val-
encia manufacture 21 thousand quintals (of 46
kilograms) of seeded raw cotton; the Carabobo
factory 14 thousand quintals and the Eastern Looms
and Spinneries 8 thousand quintals. This gives a
total of 43 thousand quintals of seeded raw cotton
used by the four principal cotton goods factories,
which manufacture cotton cloth, etc., out of cotton
grown in Venezuela.
These factories represent a capital of Bs. 10
million (f 2 million Am. gold) and produce 80 (fo
of the ordinary cloth consumed in Venezuela.
There is also a factory which manufactures
only underwear.
\
52
All the cotton goods factories of Venezuela
produce a total of 120 thousand dozen of underwear
at an average wholesale price of Bs. 20 (f 4 Am,
S^old) a dozen. Therefore the annual production of
home-made underwear in Venezuela amounts to
Bs. 2,400,000. ($ 480,000. Am, gold).
Cigar and cigarette factories are numerous
and considerable quantity of them are manufact-
ured in Venezuela. /
/
The capital invested in cigarette factories in
Venezuela amounts to Bs. 5 million ($ i million
Am. gold).
The glass factory of Caracas produces crystal
articles and glass ware for domestic consumption.
The match industry in Venezuela was granted
some time ajjo as a Government concession and
the factory meets the considerable domestic dem-
and for matches.
'Wi^. fibre and rope company is the only factory
which manufactures sisal-rope at present in Ven-
ezuela, lliis company has a capital of 80 thousand
dollars and can produce 300 quintals (Kilograms
13,800) a month of sisal-rope. Venezuela consumes
500 quintals (Kilograms 23,000.) of rope every
month, (608,475.) pounds a year.
This company produces rope at an average
cost of twenty bolivates ($ 4 Am. gold) per quintal
of 46 kilograms. The average price of rope in the
United States, in normal conditions, is seven cents
per pound, therefore this Venezuelan industry is
liable to be greatly developed, when it is in a
condition to meet not only the home consumption
of rope in Venezuela but as well to export its
product.
53
The sisal plant belongs to the agave family of
fibrous shrubs, readily grows in sandy soil and
does not require irrigation.
Sisal began to be cultivated in Venezuela in
1910 and 1913 it was planted and successfully
grown on both sides of the railway track of the
Tucacas and Barquisimeto railway.
In 1 916 the fibre and rope company bought a
tract of land near Guacara in the State of Car-
abobo, and has planted there 200,000 sisal plants
which within a short time may be harvested.
The land which said company has under cul-
tivation is as good if not better for the cultivation
of the sisal plant, than those devoted thereto in
Yucatan, where said plant is grown in a great scale.
As a general rule sisal can be harvested four
years after it has been planted, but in Venezuela,
due to the better kind of soil, it can be gathered
within three years or even before that time.
The fibre produced by the Venezuelan sisal is
superior in quality to the best class of sisal obtain-
ed in Mexico.
Electric power plants in Venezuela are nu-
merous. At present nearly all Venezuelan cities have
electric light and power plants. Many are operated
by waterfalls and produce the necessary power.
It is estimated that there are waterfalls in the
vicinity of Caracas capable to generate 30,000.
horse power. For some years these falls have been
used to produce about 9,000. horse power daily.
The most remarkable falls are those of Naiguata
situated at 16 kilometres from Caracas. They have
an available fall of 1,020 metres and supply 515
liters per second during the dry season. These falls
54
can produce 8,000. horse power daily, which might
be utilized in Cararas and its neighborhood.
The Encantado electric plant is also situated
at 16 kilometers from Caracas. When plentifully-
supplied with Water, it generates 400 horse power
daily and in the dry season only one hundred.
In Caracas, Valencia, Puerto Cabello, San Crist-
obal, etc., there are electric light and power plants
which use steam as motive power.
The manufacturing industries in Venezuela, as
a general rule, are enterprises having small capital
at their disposal. However all are liable to be
greatly developed. When they shall secure suffcient
capital under favorable conditions to enable them
to produce in a profitable manner and on a large
scale, when they shall have enough labor at their
disposal for their development, and better trans-
portation facilities at low rates, they will be able
to produce not only for home consumption but for
export.
Under such conditions as the above mentioned,
the manufacturing industries in Venezuela will
reach the state of development which has been
attained by those countries that possess these ad-
vantages.
The capital invested in manufacturing indust-
ries in Venezuela amounts to more than Bs. 350
millions (f 70,000,000. Am. gold).
PROSPECTS OF IMMEDIATE GROWTH
With reference to means of fostering industries
derived, in a general way, from agriculture in Ven-
ezuela let us take into consideration the following
facts.
55
In normal conditions, 75^ of the population of
Europe depends for its subsistence on agriculture
and those industries derived therefrom.
In Europe the problems of production become
at times questions of considerable moment and the
higher agricultural institutions are called upon to
solve them. In those countries all the land available
is already under cultivation, its area is relatively
small and there the population is comparatively
large. Consequently, it has been necessary to adopt
measures in order to secure ever increasing crops
under intensive systems of cultivation, otherwise
those countries would have ceased to exist as
nations, because only nomadic tribes can live where
agriculture is no more a lucrative pursuit.
European Governments as well as that of the
United States, have for more than a century been
improving their methods of agricultural studies and
have founded special colleges and schools for this
purpose. In all institutions of learning the teaching
of agriculture is compulsory. Traveling instructors
are employed who remain two or three weeks in
each agricultural centre where they give lectures
on agriculture. They travel then to another centre
where they repeat what they have taught elsewere.
There are high schools of agriculture and
agronomy attended by farmers who have already
acquired certain knowledge and are sufficiently
prepared to profit by the courses of lectures given
in such schools. They can also obtain practical and
technical knowledge on every thing pertaining to
agriculture at experimental stations and model
farms establised for the purpose, which also dis-
tribute free of charge certain seeds and demonstrate
how and when to sow them in order to secure the
best results.
56
In Venezuela may be mentioned as measures
adopted to foster the agricultural, forest and pas-
toral industries, the enactment by Excutive De-
cree dated March 12, 19 17, of an Agricultural and
Forest Experimental Station with an annexed
Acclimatation Garden. Said decree provides that
similar stations be established in different parts of
the country. All are to follow the same plan of
studying the best methods to produce the princip-
al agricultural products of Venezuela. They have
to select, import and distribute seeds; to replant
trees on areas which have been deprived of them;
to analyse lands and adapt the sowing of certain
seeds to the proper soils; to teach in a practical
way agricultural and forest matter, and to carry on
scientific propaganda by means of lectures and the
free distribution of literature on the subject.
The first Experimental Station was established
in the vicinity of Caracas, had as Director a distin-
guished American agronomic engineer; has now a
reputable Venezuelan agronomist, and has been in
active work since it was created.
The development of Venezuelan industries is
fostered by the Practical Guide Concerning New
Industries in Venezuela by F, Miesse, who was
Directing Engineer of the Agronomic Station and
Laboratory. This booklet was edited by the Ven
ezuelan Government in 19 13. It points out how to
cultivate eleven food plants, six pasture and nine
industrial plants which grow in Venezuela.
The Law on Forests and Waters of 1915 is in
force. It provides that it is a matter oi public util-
ity to preserve, improve and protect trees, and
establishes the Forest Administration or Govern-
ment plan to guard, foster, and utilize vegetable
wealth in forests; to maintain, increase and make
57
use of the waters, as well in matters concerning
the climate as to prevent that they be wasted, in
order to fertilize the soil and to improve sanitation
and public health. This law likewise provides that
a Central Commission be appointed as an Advisory-
Board to the Fomento Department; it regulates the
expropriation and exploitation of forests; prohibits
certain fellings of trees and burning of underbrush,
and provides that forests be replanted and guarded.
Such measures as the foregoing foster and
develop the establishment of agricultural, forest
and pastoral industries in Venezuela and protect
those in existence.
A Central Board of Acclimatation and In-
dustrial Improvement existed for some years in
Venezuela. Twenty-two years ago it submitted a
yearly report on its important work and on having
established Agricultural Clubs in different Ven-
ezuelan cities. This Board sugfofested the found-
ation of Agricultural Colonies and mentioned a cer-
tain decree providing for every thing pertaining to
the establishment of an Agronomic Station.
Fourteen years ago there existed in Venezuela
the Agrarian Institute which advised the Ven-
ezuelan Government to establish an Agrarian Muse-
um with a permanent exhibition for the practical
study of agriculture by the students of the School
of Agriculture.
The creation of the foregoing Boards and
Institute are quoted as former efforts to foster
Venezuelan industries.
MEANS TO ATTAIN IT
The credit systems suitable for the develop-
ment of V^enezuelan industries, are subjects which
58
cannot be discussed at length in a research of h*m-
ited scope such as the present. Etablishing how-
ever mere brief comparisons concerning the meth-
ods which have been adopted in Europe, the
United States and American RepubHcs, — many of
which latter countries have developed their in-
dustries to a considerable extent by means of credit
systems, — and making but few comments, there is
still ample matter for discussion, because there are
many distinguished economists who have published
text works on the subjet of industrial credit and
stated their opinions according to the rules of
induction or deduction as applied to one or the
other school of political economy which they prefer.
Consequently, in order to abbreviate, let us
take into consideration, in a concrete manner, the
practical measure lately adopted by the United
States in order to give ample development to its
rural credit.
This measure was The Federal Farm Loan
Act, signed by President Wilson on July 17, 1917.
This Act infused new life into the industries of
the United States, particularly those depending
upon agriculture, because due to this Act an im-
mense amount of wealth in the United States,
which could not be exploited in a profitable man-
ner under former existing conditions, was put into
circulation.
The Act divides the United States into 12
Rural Credit Districts and in each district a Rural
Credit Bank was established with a capital of
$ 750,000. Therefore a total of $ 9,000,000. was au-
thorized to be set aside to establish the 12 Banks.
These were alloved to issue First Mortofaofe Bonds
for a sum equivalent to 20 times the value of their
capital.
59
The terms of payment fixed for loans were
from 5 to 40 years and the interest payable on the
capital lent could not exeed 6^ a year.
This measure enabled the United States to
considerably increase its agricultural production so
that, notwithstanding the abnormal conditions then
prevailing (during the world war), the United States
was amply provided at home and, from the surplus
accumulated from its agricultural industries, was
in a position to export very large quantities abroad.
ECONOMIC CONDITIONS OF VENEZUELA
Venezuela, of course, is not yet in such a posi-
tion as would warrant the adoption of so ample a
measure as is implied by the Rural Credit Law of
the United States, but the Venezuelan Government
might enact laws tending to facilitate the estab-
lishment in the country of Territorial and In-
dustrial Credit Institutes for the express purpose
of aiming at the progressive development of Ven-
ezuelan industries.
The majority of import and export houses in
Venezuela used to engage in domestic and foreign
banking business.
The four national banking; institutions are now
the Bank of Venezuela, that of Caracas, that of
Maracaibo and the Commercial Bank of the latter
city. These four banks issue banknotes.
The Bank of Venezuela has a contract with
The National Government for certain cashing, trans-
fer of Government funds and paying of the same to
which this bank has to devote considerable atten-
tion, and acts as depositary of a large surplus sum
in cash belonging to the Government, This bank
does an exchange business but limited industrial
credit transations.
60
The Bank of Caracas, besides its issue and
exchange and some industrial business, conducts
a warehouse for general merchandise.
The Bank of Maracaibo and the Commercial
Bank of that city, besides their issue and exchange
business attend to the large transations of West-
ern Venezuela.
The two first named banks have numerous
branches throughout the territory of the Republic,
but no data are available as to any large rural or
industrial transations made by these two banks.
Therefore, the owners of city or rural real
estate in Venezuela, or the representatives of in-
dustrial concerns who wish to mortgage their landed
property in a city or in the country, or who disire
to secure more capital to develop their industries,
find difficulty in obtaining a loan under conditions
of easy repayment.
As a general rule, many of the export mer-
chants in Venezuela who buy crops take in mortgage
the land yielding them, at the rate of 12^0 interest
per annum. This is too high an interest to allow
the borrowers to improve their property or to
prosper in their agricultural enterprises.
f-lowever, banking facilities have improved in the
last three years in Venezuela, because in October
1916, the Royal Bank of Canada opened a branch in
Caracas and other places in Venezuela. In 1 917 the
Mercantile Bank of the Americas and the National
City Bank of New York opened branches in Caracas
and Maracaibo. In addition to these an affiliation of
the Anglo Spanish American Bank, Ltd., the Com-
mercial Bank of Spanish America, has opened a
branch office in Caracas and the Venezuela
Commercial Company another, the latter being
61
a branch of the house of Grace & C° of New York,
important bankers of that city.
During^ the war these foreign credit institu-
tions were handicapped due to the fact that they
could not obtain the necessary gold for banking
transactions of importance and were compelled dur-
ing that period to limit their business to the branch
of circulation, but hereafter they will have better
facilities for large credit transactions, as Territor-
ial and Industrial Banks might be established with
"■ood results in Venezuela.
As illustrating what has already been enacted
on the subject in Venezuela, a brief account is
hereinafter given of the principal points of the
law passed 14 years ago creating a Mortgage City
and Rural Credit Bank, which was not carried into
effect, but which might be taken as a guide to
correct what at that time seemed desirable though
it may not be so now.
Therefore from this standpoint let us consider
that this Mortgage Credit Bank was authorized to
grant loans payable in Venezuelan currency guar-
anteed by city and rural real estate, the Bank
having the right to charge a maximum yearly in-
terest of 7 %, which is too high a rate. The terms of
payment were from 10 to 60 years, but terms from
5 to 40 years would better answer the purpose.
The Bank could lend on city real estate a max-
imum of one half of the value at which the Bank
would appraise such city property, but it would
be fairer if the assessment were effected by common
agreement. On rural property the Bank could lend
one third of the value of said property.
The loans were repayable by depositing sums
on account from Bs. 50 upwards, which sums earned
4 % interest a year.
62
The capital of the Bank was fixed at Bs. 25
millions (f 5 million Am. gold), divided into shares
of Bs. 500 ($ 100) and the Bank could open for
business so soon as one fifth of its capital had been
paid in.
The Bank could issue Mortgage Bonds for a
sum equivalent to the value of the loans made,
there being two kinds of Bonds viz: those of Bs. 5
($ i) which could not exceed 10 ^g of the total
amount of each transaction. They did not earn
interest and were repayable at the Bank on pres-
entation, in Venezuelan currency, and the Bonds
of 50, 100, 500, and 1,000. bolivares, could not
exceed 90 <^q of the total amount of each loan
and earned interest. The Bonds were not of cum-
pulsory acceptance as legal tender. Each issue of
them was to be formally registered and those
reverting to the Bank either as refunded by draw-
ings or redeemed, were to be annulled in an official
manner.
The Bank was required to have always in
cash, as a guarantee fund for conversion or refund-
ing, 10 4) of its capital in Venezuelan currency, and
had to set aside another 10 ^q as a reserve fund.
The loss of one half of the Bank's capital compelled
it to go into immediate liquidation. The duration
of the Bank's charter was unlimited.
Venezuelan industries could be developed by
means of a careful investigation and study of the
measures which have been adopted in some Latin
American countries to solve the problem of secur-
ing capital under favorable credit conditions to
develop on a large scale their different industries.
With reference to the credit question and
means to secure a prosperous future for Venezuelan
industries, let us consider, from a broad point of
63
view, the general growth that can no longer delay
in being acquired by the whole Western Hemis-
phere, of whose Southern Continent Venezuela
forms a part, as a unit of the complicated political,
social, commercial, industrial and financial structure
of the New World.
Looking likewise into the future, in a very
broad-minded way, let us take into consideration,
that the element of Latin origin, as nations, in the
Western Hemisphere, possess more than one half
of its total area and represent a nucleus of nearly
one half with reference both to population and
lanofuagre.
Having these same views in mind, let us con-
sider that before the war broke out, 67 4? oi the
exports of Latin America went to European mar-
kets and it received from there 87 ^ of its yearly
imports. The United States imported, at that time,
only 33 fo of the yearly exports of Latin America
to which countries the United States sold but 14 %
of their yearly imports.
During the war which has just come to an end,
all European markets were practically closed, but
now conditions have completely changed, because
the monetary centre of the world, which took centu-
ries to journey from the Euphrates to the Thames,
has been suddenly transferred to the Hudson.
This is due, among other reasons, to the fact
that now more than one half of the world's ag-
gregate stock of gold is owned by the United
States and deposited in its Treasury and Banks,
the total world's stock being estimated at more
than % 8,000 million Am. gold.
Another weighty reason is the fact that the
United States has become a creditor nation in
64
Europe, as the European Powers alone owe the
United States eight to nine thousand million dol-
lars, and before the war the United States owed in
foreign countries more than four thousand million
dollars, of which it has already paid more than
three thousand million dollars.
When the war broke out, England was the
creditor nation of the world, and the United States
was then confronted with a very dangerous fin-
ancial difficulty, because it transacted all its import-
ant commercial and financial negotiations with
foreign countries through the London market, and
the latter remained closed for some time.
It is a well known fact that the financial struct-
ure of any country consists of the three well known
credit systems; viz: First; Long term credits or
obligations assumed by governments, municipal-
ities or corporations, which obligations are based on
Stock Exchange transactions; Second: Short term
credits or individual obligations, which depend on
the Discount markets and Deposit banks, and
Third: The Banks of issue.
This fact was impressed on the ruling minds
in the United States and they soon discovered
the necessity for giving elasticity to the financial
market, and the Government enacted the new
Banking and Circulation Law which put the United
States in a position to grant credits to Latin Amer-
ica, where in some countries, Branches of the Fed-
eral Reserve Banks have already been opened, for
the express purpose of supplying the financial
support needed in Latin America to foster the
development of their natural resources.
In this connection let us bear in mind that it
is a serious mistake to restrict to one single market
65
the commercial and especially the financial trans-
actions of a country; that is to say: its long and
short term obligations. Much has been written on
the subject and the author of this research shares
the opinion of those who affirm, that this is not
advisable, because it might endanger the liberty of
a country to act when obliged to settle cerdit
obligations.
On the contrary, ever}'' country must divide
the risk of its commercial and financial credit
transactions, in as many equal parts as possible in
the different markets where it carries on its bus-
iness, because it is evident that a nation decreases
its financial power when it is too dependent on a
single market.
Even if the conditions in which it places its
obligations there are very advantageous, it is not
advisable, because it may happen that its bonds
might become due at a moment of monetary crisis
and place the debtor country in a precarious posi-
tion, if it has not at its disposal another market
where to find, without loss of time, the necessary
means to meet its obligations.
This principle was advanced with reference
to the United States at the Financial Congress
held in Washington, D. C. from May 24 to 29, 1915,
and may be applied to any Nation. For this reason
it is suggested here as a future peril for Venezuela,
from the point of ^view of the vast development
that its commerce, industries and finances are ex-
pected to acquire.
It is also an acknowledged fact that European
countries have greatly contributed, from several
standpoints, to the development of the whole West-
ern Hemisphere.
66
Before the war they cultivated commercial
relations and effected considerable financial trans-
actions with Latin America. It is logical to suppose
that they will make efforts, now that the war is
over, to renew their mercantile and financial rela-
tions w^ith Latin America.
They will endeavor to grant us the same or
even better terms of payment than before and
adapt, even more, should that be possible, their
articles and manufactured goods, which they will
again produce, to the special conditions required by
the demand in each locality.
Latin America will surely provide itself in
those markets where it will find what it may need
in the most advantageous conditions.
Therefore the directing minds in matters of
finance, banking, manufacturing and other indus-
tries in the United States should endeavor to
adopt methods in order to adapt its export prod-
ucts to the conditions required abroad and par-
ticularly in Latin American Countries. Otherwise
the United States will be unable to compete on an
equal footing with European markets in Latin
America, because now that the war is over and
when the European continent shall recover its nor-
mal condition, those countries will make strenuous
efforts to regain our markets in order to be able
to send us a considerable amount of their surplus
production as heretofore.
On the other hand should something similar
be adopted to what has hereinbefore been briefly
suggested concerning credit systems to foster the
greater development of Venezuelan industries, or
()7
other measures be taken to attain this end, they will
find encouragement under the above-mentioned
favorable conditions, because they will permit the
gradual progress of the labor activities of Ven-
ezuela and bring about an immediate increase, a
larger consumption and a better distribution of the
country's products and manufactures.
Therefore Venezuela has, under such favor-
able circunstances, fine prospects in store, in the
near future, for a happy era of commercial growth,
industrial evolution and financial prosperity.
N. Veloz -GOITICOA.
Caracas, 1919.
09
GENERAL INDEX
PAGES
AGRICULTURAL ZONE (Area & description) 3—4
Principal agricultural products of Venezuela 4
Capital invested in the cultivation of bananas 4
COFFEE, its cultivation in Venezuela 5
Number of coffee trees in Venezuela , 5
Capital invested in the cultivation of coffee trees 5
CACAO, its cultivation In Venezuela 5 — 6
Capital invested in its cultivation 7
TOBACCO, its cultivation in Venezuela 7—8
Different classes of tobacco cultivated in Venezuela 8
Regions where cultivated 8 — 12
Production of tobacco by regions 12
Annual production of tobacco 12
Price of tobacco by regions 12 — 12
Tobacco exported from Venezuela in 1917-1918 13
Capital invested in the cultivation of tobacco 13
INDIA RUBBER, its cultivation in Venezuela 13—16
Capital invested in the cultivation of India Rubber .... 16
WHEAT, its cultivation in Venezuela 16
Regions where wheat is produced in Venezuela 16
COTTON, its cultivation in Venezuela ... i7— 18
Cotton production in Venezuela 18
Production by regions 18
Price of Venezuelan cotton 19
Quality of Venezuelan cotton ig
Capital invested in the cultivation of cotton 19
TONKA BEANS, their cultivation in Venezuela 20
Value of their exportation in 1913 20
VANILLA, a natural product in Venezuela 21
SUGAR CANE, its cultivation in Venezuela 21 — 22
Sugar cane products 23
Sugar Central Factories in Venezuela 23 — 24
Capital invested in the cultivation of sugar cane 24
70
PAGES
COCOA TREES, their cultivation in Venezuela 24
Capital invested in their cultivation 24
INDIAN CORN, its cultivation Venezuela 25
Area of corn cultivated in Venezuela 25
BEANS, their cultivation in Venezuela 25
INDIGO, its present condition in Venezuela 25
Agricultural products exported in 1917-1918 26
Capital invested in the Agricultural Zone 26
FOREST ZONE (Area & description) 26—27
Division of this zone 27
Its products 27 — 28
Products of the Forest Zone exported in 1917-1918 29
Capital invested in these products in Venezuela 29
MINING ZONE (Area & description).. 29
Gold, copper, iron, lead, asphalt, petroleum, coal 30
Exports of minerals in 1916-1917 31
Mineral products exported in 1916-1917 32
Mining regulations regarding coal, petroleum etc.... 32
Explotation of minerals in IQ1S-1919 33
Aroa Copper Mines 33
Pearl fisheries 33 — 34
The collieries of the State of Anzoategui 34
Gold deposits in Venezuela 34 — 35
Gold Zone of Venezuela 35
Gold veins 35
Mining companies in active work in Venezuela 35—38
Table of mining companies in Venezuela 39
Capital of these companies invested in Venezuela 39
Exports of mineral products in 1917-1918 39
PASTORAL ZONE (Area & description) 39-40
Heads of cattle existing now in Venezuela 40
Capital invested in the pastoral industry in Venezuela. .. 41
Methodical crossing of breeds in Venezuela 41
Cattle in Venezuela from 1804 to 1899 42
Cattle exports on the hoof from 1831 to 1904 42
Cattle exports on the hoof from 1915 to 1918 43
Frozen meat exports from 1915 to 1918 43
Capital invested in pastures in Venezuela 43
Products of the Pastoral Zone exported in 1917-1918. . . . 44
TABLE showing capital invested in the cultivation of Cof-
fee. Cacao, Sugarcane, Rubber, Balata, Cocoanuts,
Bananas and Cotton 44
GENERAL TOTAL of such cultivation 44
71
PAGES
TABLE showing capital invested in Agriculture, Industries,
Stock raising, Pastures and Commerce in Venezuela. 44
GENERAL TOTAL of such capital 44
TABLE showing exports in 1917-1918 of the principal pro-
ducts from the AGRICULTURAL ZONE of Ven-
ezuela 45
TABLE showing exports in 1917-191S of the principal pro-
ducts from the FOREST ZONE of Venezuela 46
TABLE showing exports in 1917-1918 of the principal
products from the MINING ZONE of Venezuela. . . 46
TABLE showing exports In 1917-1918 of the principal pro-
ducts from the PASTORAL ZONE of Venezuela. . . 47
SUMMARY of these four tables in Kilograms and Values. . 47
VENEZUELAN CURRENCY 48
Stock of Gold coins 48
Stock of coined Gold in Venezuela on December 31, 1918. 48
Per capita in gold in Venezuela 48
Stock of Silver 48
Foreign silver coins not legal tender 48
Per capita in silver in Venezuela 49
Venezuela has the Gold Standard 49
Fiduciary circulation (bank notes) in Venezuela 49
Bank notes how, issued, guaranteed according to law. ... 49
Soundness of the Monetary System of Venezuela 49
MANUFACTURING AND OTHER INDUSTRIES, their
description 49 — 50
The Dairy at Maracay 50
Yearly production of butter 50
Paper factory, breweries, tanneries, shoe factories, sad-
dleries, chocolate factories, cotton goods factories. . 50—51
Data regarding cotton goods factories in Venezuela 51 — 52
Capital invested in the exploitation of this industry 52
Cigar and cigarette factories in Venezuela 52
Glass factory 53
Match factory 52
Fibre and rope factory 52 — 53
Electric Plants 53—54
Capital invested in industries in Venezuela to-day 54
PROSPECTS OF IMMEDIATE GROWTH 54—55
Experimental Station 56
Practical Guide about new cultivations in Venezuela... . 56
72
PAGES
Law on Forests and Waters 56
Central Board of Acclimatation, Agronomic Station,
Agrarian Institute, School of Agriculture 57
McJAXS TO ATTAIN" IT 57— SS
Rural credits 58
Mortgage Bonds 59
ECONOMIC CONDITIONS OF VENEZUELA 59
Territorial & Industrial Credit Banks 59
National Banks in Venezuela. 59—60
Branches of Foreign Banks in Venezuela 60—61
City & Rural Mortgage Credit Rank 61—62
Commercial relations before and after the war 62 — 63
The Monetary Centre of the World 63
Credit Systems of the finances of any country 64
Divide risk of commercial & financial independence 65
Opening of European markets after the war 66
Venezuela's commercial, industrial and financial future. . 67
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