In the smaller towns and rural districts of South America it is regarded as a regular form of diet, and not, like ordinary tea, a mere accompaniment to the meal, being looked upon as a necessary, as well as a luxury, by the inhabitants, and is the first thing offered a visitor when entering a house, the table being rarely without it. The _gaucho_ of the plains will travel for weeks asking no better fare than a little dried beef, washed down with copious drafts of _Maté_, the Indian carriers subsisting for days together on it alone, in short, being to them what the tea of China is to its inhabitants, essential and indispensable. The Government has a monopoly of its sale, a heavy duty being imposed on its exportation, forming the principal source of its revenue. The popular method of preparing it in Paraguay is to mix large proportions of raw sugar with a decoction made from the powder or leaves until a thick syrup is produced, when it is ready for drinking, the nourishing properties attributed to the infusion by the natives, it is contended, being due, in a great measure, to the excess of saccharine matter. It ranges in price from four to eight cents per pound in the prepared state, one pound yielding as much as twenty quarts of the infusion of moderate strength. It is difficult to get at any reliable returns for the entire traffic in this commodity, the production being carried on in such a crude and desultory manner, extending, as it does, over a vast area of wild country, the official returns furnishing only an approximate estimate of its trade and consumption. The total production may, however, be computed at 1,500,000 arobas, equivalent to about 40,000,000 pounds per annum, the total consumption averaging thirteen pounds _per capita_ to the population, as against two pounds of coffee and one-fourth pound of China tea. Its use is confined chiefly to Paraguay, Uruguay, Argentine, Peru, Chili and Brazil. Its consumption in Paraguay and Argentine alone is over 35,000,000 pounds per annum, as against 5,000,000 pounds of coffee. Surprising as this large quantity may appear at first sight, it is explained by the fact that _Maté_ constitutes the only vegetable nourishment of many classes in these communities, forming, as it does, the chief dietic beverage of over 20,000,000 of people in South America alone. Yet it is singular, to say the least, that its consumption should be so great in such large coffee-producing countries, and which export annually over half the world’s supply of that commodity. Strong efforts are being made at the present time to open up a trade in it in Europe, particularly in France, where the cafés now advertise it among their regular beverages, and shops devoted to its exclusive sale also recommend it. But whether these efforts will succeed remains to be proven, considering the enormous increase in the production of so many other teas and their established consumption. TRADE GRADINGS OF TEA.