Chile promises great development in manufacturing. In fact, Chile is more likely to become a commercial nation than any republic of South America. There are already more than eight thousand industrial establishments of all kinds. Tanning of leather, making of shoes, refining of chemical products, woollen and cotton mills, etc., are included in these. The government policy has been one of protection and, in some instances, of actual bounties. Sugar refineries have thus been built up which refine the raw product imported from Peru. They now grind much of their own wheat. Some of the railway equipment used on the national railroads is made in the country. The roto seems to make a competent workman in the factories. The coal mines and prevalence of water power almost everywhere gives Chile a great advantage over her neighbour, Argentina, in the way of manufacturing advantages. Although the operation of the national railways has been unprofitable, and permeated with gross mismanagement and graft, yet the dogged persistence with which the parallel iron rails have been spread over the country has been most commendable. The longitudinal railway has been pushed little by little each year, and sometimes at the expense of national sacrifice. The first transandine railway is now an accomplished fact, and another route now occupies national attention. After the settlement of the boundary question with Argentina, the vast sums that had been expended annually in preparing for war were diverted to internal development. The beneficial results can easily be traced in both cities and country. The fearful earthquake of 1906 caused a severe back-set, as the government was obliged to step in and aid in the rebuilding of its principal port, Valparaiso. [Illustration: A MARKET SCENE, VALPARAISO.]