Except Uruguay the smallest State in South America, is an inland Republic whose territories lie in the fork between the Pilcomayo and Paraguay and the Paraná Rivers, with Argentina on the W. and S., Bolivia on the N., and Brazil on the N. and E.; it is less than half the size of Spain, consists of rich undulating plains, and, in the S., of some of the most fertile land on the continent; the climate is temperate for the latitude; the population, Spanish, Indian, and half-caste, is Roman Catholic; education is free and compulsory; the country is rich in natural products, but without minerals; timber, dye-woods, rubber, Paraguay tea (a kind of holly), gums, fruits, wax, honey, cochineal, and many medicinal herbs are gathered for export; maize, rice, cotton, and tobacco are cultivated; the industries include some tanning, brick-works, and lace-making; founded by Spain in 1535, Paraguay was the scene of an interesting experiment in the 17th century, when the country was governed wholly by the Jesuits, who, excluding all European settlers, built up a fabric of Christian civilisation; they were expelled in 1768; in 1810 the country joined the revolt against Spain, and was the first to establish its independence; for 26 years it was under the government of Dr. Francia; from 1865 to 1870 it maintained a heroic but disastrous war against the Argentine, Brazil, and Uruguay, as a consequence of which the population fell from a million and a half to a quarter of a million; it is again prosperous and progressing. The capital is Asuncion, at the confluence of the Pilcomayo and Paraguay.