Note 114 — Chapter XIV · PARAGUAY.

The revenue of Paraguay is derived principally from the duties levied on goods imported and exported, (the former of which ought to be considerably modified, and the latter reduced to almost nothing,) stamped paper, shopkeepers’ licences, the tithe of the produce of the soil, and the ‘half-annaata’ tax (half the value of the waste lands granted by government); but we are, as yet, ignorant of the details, no statistical documents being yet published in the Republic.

There is also, however, another and not inconsiderable branch of revenue, viz.: the monopoly enjoyed by government of the sale of ‘maté,’ or Paraguay tea. It purchases this herb as prepared in the forests of the state, and when well packed and in good condition, at a given price, and disposes of it to the merchants for exportation, as well as to the consumers, at the rate of seven rials per arrobe.

What will at a later period constitute incalculable wealth for Paraguay are its lands and forests: it will derive a very considerable revenue from them. More than half of the surface of the territory is public property, comprising immense forests of timber, of the most varied and valued kinds, within reach of navigable rivers. These lands at present are of little value; but they will speedily acquire a much greater, for the president has adopted a very wise system of disposing of them, viz., granting them to applicants at a perpetual ground-rent of five per cent. on the amount at which they are valued by competent persons. This plan will greatly facilitate their sale.