It is perhaps worth noting here that while the young man was talking I could see an ordinance on the wall above his head that prohibited the killing of either ostriches or guanacos "within the city limits," even with bolas, while the shooting of such game was prohibited in all the districts south of the river. And yet I am not sure but a large town will grow there eventually, although Gallegos was made the capital town some time ago. The place certainly has some natural advantages. The Santa Cruz River is a wonder. Being absolutely unobstructed throughout its course, large, deep-draught river steamers could run easily to the source, Lake Argentine, and beyond. It is really likely that gold mines will be developed in the Andes there, and it is certain that a large lumber business will be done there sooner or later, for the forests produce cedars and other valuable saw timber of the best quality and great size. There are no trees immediately on Lake Argentine, but it is connected with other lakes by navigable channels where the timber is found. When I was in Santa Cruz a party of capitalists familiar with lumber had gone up to the lakes to look into the business. Driving the logs in rafts to the port of Santa Cruz would be so inexpensive that once a proper mill were established there the great markets of Buenos Ayres and Rio Janeiro, not to mention the smaller ports, would be supplied at prices to make serious inroads on the business of those who now supply them from the United States. Of the value of the sheep and cattle ranches as a support for a town nothing need be said to readers in the United States, who have object lessons in the matter scattered over the prairie States, but the Patagonia ranches will scarcely make as good a support for a town as the Yankee ranches do, for the reason that the land system of the Argentine promotes great estates and discourages small owners. The capitalist in Argentine territory can buy all the land he wants. Gov. Mayer of Santa Cruz territory, for instance, owns thirty square leagues of land along the Santa Cruz and Chico rivers. In owning the water front, he controls all the range back of it, for no one will take up land that has no water. For all practical purposes, he controls say one hundred square leagues. The firm of Hamilton & Saunders of Gallegos, Scotchmen, own fifty-eight leagues, and so control three times as much. Of course, it would be much better for the country if fifty-eight families owned and lived on the land these two men have, nevertheless the country is filling up with shepherds, and a month after the two French merchants mentioned had landed in Santa Cruz with the wholesale stock of goods, they were doing a profitable business with their original packages.