In the past there is no doubt that matters in Uruguay have been regarded with a certain amount of pessimism--a gloomy view for which the alleged instability of the Government was chiefly responsible. Were all that has been said on this head strictly accurate, there is no doubt that the condition of the country would be parlous indeed. On numberless occasions, however, the reports that have prevailed have been remarkable merely for their exaggeration. Frequently, moreover, such highly coloured--or rather darkened--pictures have been depicted to serve interests in Europe rather than in Uruguay. Commercially speaking, it is surely a matter for congratulation that even such a disturbing element as civil strife should have left the financial solidity of the Republic unimpaired. This point of view, however, is merely the financial one--important enough in its place, but not sufficiently overwhelming to eliminate all the other interests at stake. The spirit of progress has been abroad, not only in the ethics of the pastures, banks, and business houses, but in the more subtle fields of science, literature, and art as well. This, however, is not the place in which to introduce details or statistics concerning the improvements in the various ramifications of the nation's existence. For the present let the statement suffice that in no direction has a retrograde movement been perceptible: on the contrary, a continuous progress has been evident in almost every matter from the curing of beef to the making of scholars--two products that are equally essential to the welfare of the land. CHAPTER II HISTORY 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.