Lying in a valley, at an altitude of more than 12,000 feet above the level of the sea, is the Bolivian capital, La Paz, the City of Peace. It is picturesquely situated in a huge bowl, cut into the plateau; and to reach it one must descend in an electric car, 1,300 feet down the steep slope, where, at the bottom of the cup, lies a city of more than 150,000 people. In its situation, it is probably the most remarkable of all capitals. Although called the City of Peace, it has been the scene of turmoil and strife ever since the Spaniards invaded these solitudes. Rising high above the city is beautiful Illimani, one of the highest peaks of the Andes. Perpetually clad in snow, this magnificent mountain dominates the view, and is one of the most striking scenic features of Bolivia. In the central square of La Paz rises the cathedral, which has been in process of building for forty years, and at the rate it is progressing it will probably not be completed for another century. On this same central square is the Bolivian House of Congress, nearly all of its members of Indian origin. This plaza is the center of political life, and radiating from it are the principal business thoroughfares. Plaza San Francisco is another of the important squares of the city, and takes its name from the magnificent church, one of the most artistic structures in South America. Upon this square, at all hours of the day, there is a fascinating panorama of life; for, passing constantly, are picturesque Indians, clad in grotesque costumes, many of them driving burros or the Andean beast of burden, the llama. _Native Costumes_ In no other city of the world are the costumes worn by Indians as elaborate as those seen in the streets of La Paz. The Cholo or half-breed is resplendent in garments of the brightest colors. The women in particular are gorgeously arrayed in silk skirts, kid boots and straw hats. There is a curious custom which is rigidly observed. Full blooded Indians must wear felt hats, and are looked upon as inferior in social standing. The Cholos may always be distinguished by their straw hats, which are never worn by the others. Having married a Bolivian, or perhaps a white man, a Cholo woman considers herself quite a superior being. She delights in patronizing the best shops, where she seeks only the costliest silks, the gayest of shawls, and kid boots with high heels, which are imported from France or from the United States.