Geographical situation of the Republic--Boundaries and area--Uruguay as an historical, commercial, and financial centre--The respective positions of Uruguay and Paraguay--Disadvantages of a buffer State--A land of sunshine and shadow--The history of Uruguay--The blending of industry and warfare--Vitality of the nation--Instances of self-sacrifice--A South American Switzerland--A freedom-loving folk--Deeds of arms and the undercurrents of commerce--Montevideo in the eyes of the casual traveller--Factors that make for the progress of the Banda Oriental--Influence of railway--Coming cessation of the North American beef shipments-- Temperament of the Uruguayan--Distinction between Argentine and Uruguayan politics--The clans of the Banda Oriental--The birthright of party convictions-- Education in Uruguay--National points of honour--Liberty accorded the foreigner--The courtesy of officials--An incident at the customs-house--Popularity of the English--A gratifying situation--Satisfactory international relations--The work of Mr. R. J. Kennedy, the British Minister Plenipotentiary--Uruguay's pacific foreign policy--Careful finance--Army and navy--General progress of the nation. CHAPTER II HISTORY 37 The discovery of Uruguay--Reception by the Indians--Juan de Solis and his fate--Navigation of the River Plate-- Serrano and Magellanes--Rivalry between Spaniards and Portuguese--The first settlement in the Banda Oriental-- Aggressive tactics of the Indians--Forts destroyed by them--Colonisation under difficulties--The introduction of cattle--A prophetic move--Intervention of the missionaries--Jesuit settlements established--Uruguay's isolation comes to an end--Influence of the livestock-- Cattle-raiders--The first Portuguese invasion--Victory of the Spaniards, assisted by native auxiliaries--Treaties and their attendant troubles--The indecision of old Spain--Partial extermination of the Indians--The town of Colonia as a bone of contention--Introduction of the first negro slaves into the provinces of the River Plate--Unrest on the Spanish Main--Moreau, the buccaneer-- The fate of his expedition--Portuguese invaders expelled by the Spaniards--A fort is constructed on the present site of Montevideo. CHAPTER III HISTORY (_continued_) 48