=Asunción=, the population of which is variously given as 80, 90, 100, 120, and 125 thousand, is a quiet town on the Paraguay at a point where the bank rises to a considerable height, affording good drainage, and from the palace a pleasing view. An English writer calls the city the nicest, cleanest town above Buenos Aires. Although 1000 miles from the ocean, it has an altitude of but 203 feet above sea level. The classical building of the Custom House stands by the river side. The palace above, built by the Dictator, Francisco Lopez, as a residence, is used for the offices of the President and his Cabinet. Other important buildings are a House of Congress, a Cathedral, a Museum of Fine Arts containing a Murillo, and a National Library with many priceless documents. The several hotels are fairly comfortable if not exactly modern in character. There are electric lights and electric car service. The streets at last accounts were poorly paved with rough cobble stones, but some automobiles are in use. The city is steadily advancing in commercial importance, 80 per cent of the imports and 40 of the exports passing through its Custom House. OTHER CITIES From the meagre information available, to describe individually the various States or Districts of Paraguay is impossible, as also unimportant, the sparse settlements having little marked variation. Mention will be made instead of the principal towns, few of which have a population of 15,000. =Villa Rica=, population perhaps 30,000, 40 hours from Buenos Aires and 93 miles from Asunción, is the second city of Paraguay. Situated in a rich agricultural district, it is destined to a sound if not rapid development. It will become important later as a railway junction; for the railway designed to cross the Paraná River into Brazil just above the entrance of the Iguassú, passing the great Falls, will connect with the São Paulo-Rio Grande Railway at União de Victoria and go on to São Francisco, called the best port in Brazil south of Santos. However, the date of this road’s completion is uncertain. The actual railway junction is at Borja, a little south of Villa Rica, but the latter place will receive the benefit. All of the towns are what we might call large country villages. =Villa Concepción=, 130 miles up the river from Asunción, the third if not the second city of commercial importance, with a population given as 16, 25, also 30 thousand, is a port for _yerba_, cattle, quebracho, and sugar. The town of one story houses has better streets than those of the Capital, and a comfortable inn. It may now boast of 50 automobiles, instead of the one stylish turnout noted years ago by Colonel Roosevelt. =Villa Encarnación=, population 15,000 or less, opposite Posadas, is another city of commercial importance, as the junction of the railway ferry and of river transportation. Here there is a change of river boats, those of lighter draft being required for the Upper Paraná.