Uruguay may be described as a republic of comparatively small dimensions sandwiched in between the great territories of Argentina and Brazil, and bounded on the south by the Southern Atlantic Ocean and the estuary of the River Plate. Its actual area, 72,100 square miles, is less than that of the British Isles, and thus the Banda Oriental, to use the name by which the State is locally known, enjoys the distinction of being the smallest of the South American republics. But, although this distinction applies to actual area, it serves for remarkably little else in the country. Indeed, an astonishing amount is packed within the frontiers of Uruguay. In the first place it is a land where much history has been made. Secondly, to turn to its industrial assets--although I do not intend to deal with the commercial side of the Republic more fully than can be helped--it is a country where many cattle are bred. Lastly, it is a place in which no less than fifty million pounds sterling of English money are invested. Thus the small Republic, as an investment field, ranks third in importance amongst all the States of South America, a fact that is realised by remarkably few outside its own boundaries. Uruguay and Paraguay are frequently confused by those quite unfamiliar with South American affairs, owing to the similarity of the nomenclature. In actual fact the two countries have very little in common, save in their political situation. Both separated themselves from the River Plate Provinces in the course of the War of Independence, since which time both have served as buffer States between Argentina and Brazil. The position of such is seldom enviable at the best of times. Upon Uruguay it has worked with an especial degree of hardship, since even before the days of her independence it was upon her suffering soil that the too frequent differences between Spaniard and Portuguese were fought out. [Illustration: A RURAL INN.] [Illustration: COUNTRY COACH AT LA SIERRA STATION. To face p. 28.] As to the international jealousies of a later era, they have not been without their influence upon the domestic affairs of the central State. Thus on not a few occasions the result of foreign diplomacy has been civil war within the boundaries of Uruguay, with consequences that were necessarily disastrous to the nation. The Banda Oriental is a land of sunshine, it is true, but one of shadow too, which is logical enough, since without the former the latter cannot obtain. Its metaphorical sunshine is represented by the undoubted merits of its inhabitants, its temporary shadows by the circumstances in which they have found themselves placed.