Margarita lies some twenty miles north of the mainland, with the islands of Cubagua and Coche between. It is practically two islands joined by a sandspit, the two halves being equally rugged and mountainous; the western is known as Macanao, and contains but few inhabitants, the towns being all in the eastern half or Margarita proper. With the surrounding smaller islands it constitutes the State of Nueva Esparta. The capital, Asunción, founded in 1524, is in a sheltered valley at the eastern end of the island. A ruined fort above the town, ruins of substantial houses, grass-grown streets and a general atmosphere of decay make the town somewhat depressing. To the south-east are the ports of Pampatar and Porlamar, the former the most important, since to this come European liners, but Porlamar has the larger population. The bay of Porlamar is generally full of small fishing-smacks and pearling vessels, which carry on two of the chief industries of the island, though from Pampatar, with the pearls, they export also tiles, hats of straw and of a kind of velvet known as _pelo guamo_, hammocks, and embroidery. The western half of Margarita is dry and barren for the most part, with small, scrubby vegetation, but here and there one finds grass-covered glades and more fertile soil; the inhabitants are chiefly fishermen, living in great poverty, with poor diet, yet contented and at the same time amazingly ignorant of the outside world. Who may be president in Carácas matters little to them, and European countries and cities are unknown. Probably fibre could be grown here with advantage, but the only land industry appears to be the farming of goats or cattle. Some of the outlying homesteads are conducted on patriarchal lines, and the families of the owners are occasionally enormous. Many of the people seem to be direct descendants of the ancient Guaiquerias, of strangely Mongolian appearance.