=Other towns= are Paraguarí on the railway between Asunción and Villa Rica, Carapeguá near by, San Pedro north of Asunción, half way to Concepción, Luque, nine miles south of the Capital, and Pilar, well down the river. Villa Hayes is one of several centres of commercial importance in the Chaco. =San Bernadino= on Lake Ipacaraí, two hours from Asunción, is a pleasure resort favored in winter by citizens of Buenos Aires. A large modern hotel caters both to fashionables and to sufferers from tuberculosis. TRANSPORTATION =River= transportation in Paraguay is of the greatest importance. Large comfortable steamers give good service three times a week between Buenos Aires and Asunción, making the trip upward in four or five days, down stream in three. Above Asunción boats of suitable size and draft give poorer service on the Paraguay. Several lines run up 765 miles to Corumbá in Brazil, a three or four days journey, calling on the way at several Paraguayan ports, Concepción, 250 miles, San Salvador, Puerto Max, and others. Fares are high, especially down stream, apparently because one is obliged to go. Some ports on the Paraguay and on a few branches above and below the capital are visited by local steamers. Barges can be floated on over 2000 miles of internal rivers. _Chatas_ (which are poled along) drawing 2-4 feet of water carry 10-100 tons; such boats on the Paraguay may carry 600 tons. On the Alto Paraná, as previously stated, there is semi-weekly service from Corrientes to Encarnación and Posadas. Above, three times a week steamers, with many calls on both sides of the river, make a four days’ journey to the Iguassú and beyond to Puerto Mendez, from which point a short railway in Brazil passes around La Guayra Falls. =Railway= facilities are increasing, construction though not so easy as on the Argentine plains being less difficult than in general in the other Republics. Nearly 475 miles of track are in operation, 200 of them privately owned. The main line of the Central Paraguay, Encarnación to Asunción, 230 miles, has first class equipment with through sleepers to Buenos Aires, 966 miles from Asunción. Several short lines of very narrow gauge, about 30 inches, transport quebracho and timber from the interior to river ports, 152 miles of these in the Chaco. A railway of 40 miles serves sugar mills back of Concepción. If the cross lines proposed to Brazil and Bolivia (of one of the former some miles are in operation) are constructed within the decade, a rapid development will ensue. Cart roads are few and very poor. In wet weather six or eight oxen are required for a cart. Two-wheeled vehicles are much employed. CHAPTER XLI PARAGUAY: RESOURCES AND INDUSTRIES The chief resources of Paraguay at present and for an indefinite future are pastoral pursuits, forestry, and agriculture. FORESTRY