=Quebracho.= The exploitation of quebracho is an important source of wealth. On the estimated 27,000,000 acres of forest land in the country are valuable woods of many varieties, among which the quebracho is preëminent. The first factory in South America for the extraction of tannin from this wood was established in 1889 at Puerto Galileo in the Chaco. The Forestal Company, British owned, was a leader in the development of the industry in which one or more American companies have lately become interested. Large sums have been invested, $15,000,000 it is said by a single company. Most of the properties are located in the Chaco, which has great tracts of land distributed to individuals or companies, some of whom have never seen their holdings. One American company has 1,500,000 acres. Unlike most other trees from which tannin is derived, the tannin is not in the bark, but it permeates the entire wood. Formerly the logs were exported, but this is now forbidden. The International Products Company has a mill at Puerto Pinasco on the west bank of the Paraguay above San Salvador, and 300 miles north of San Antonio. The wood is remarkably rich in tannin which runs 20 per cent. The wood must be cut and then ground to extract the substance, the refuse wood running the engines. One tree weighing a ton will produce 600 pounds of extract. By means of three rotary evaporators, the extract may be solidified so as to be packed in bags, 75-100 tons of the solid in 24 hours. The Company, owning enough wood to produce 450,000 tons, is equipped to supply 30,000 tons of the extract annually. The trees are hauled by oxen to a light railway which brings them to the port, the railway being extended as the felling of the trees goes farther inland. Twenty million pounds of extract were exported from Paraguay in 1919.