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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..6833f05 --- /dev/null +++ b/.gitattributes @@ -0,0 +1,3 @@ +* text=auto +*.txt text +*.md text diff --git a/39715-8.txt b/39715-8.txt new file mode 100644 index 0000000..37b9962 --- /dev/null +++ b/39715-8.txt @@ -0,0 +1,2703 @@ +The Project Gutenberg EBook of The Argentine as a Market, by N. L. Watson + +This eBook is for the use of anyone anywhere at no cost and with +almost no restrictions whatsoever. You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: The Argentine as a Market + +Author: N. L. Watson + +Release Date: May 16, 2012 [EBook #39715] + +Language: English + +Character set encoding: ISO-8859-1 + +*** START OF THIS PROJECT GUTENBERG EBOOK THE ARGENTINE AS A MARKET *** + + + + +Produced by Adrian Mastronardi, René Anderson Benitz, and +the Online Distributed Proofreading Team at +http://www.pgdp.net (This file was produced from images +generously made available by The Internet Archive/American +Libraries.) + + + + + + + Transcriber's Note: Obvious typos have been amended. Variations in + spelling in the original text have been retained, except where usage + frequency was used to determine the common spelling. These amendments + are listed at the end of the text. Minor printer errors have been + amended without note. + + * * * * * + + +PUBLICATIONS OF THE UNIVERSITY OF MANCHESTER + + +ECONOMIC SERIES--No. IX. + +GARTSIDE REPORTS ON INDUSTRY AND COMMERCE. NO. 6 + + + + +_The Argentine as a Market_ + + + + +SHERRATT & HUGHES +Publishers to the Victoria University of Manchester +Manchester: 34 Cross Street +London: 60 Chandos Street, W.C. + + +[Illustration: (graph of imports, exports, and population)] + + + + +The Argentine as a Market + + +A REPORT + +_To the Electors to the Gartside Scholarships on the Results of +a Tour in the Argentine in 1906-7_ + + +BY + +N. L. WATSON, B.A. + +_Gartside Scholar_ + + + + +MANCHESTER +AT THE UNIVERSITY PRESS +1908 + + +UNIVERSITY OF MANCHESTER PUBLICATIONS +No. XXXIII. + + + + +THE GARTSIDE REPORTS. + + +The Gartside Reports are the reports made by the Gartside Scholars at +the University of Manchester. The Gartside Scholarships were established +in 1902 for a limited period, by John Henry Gartside, Esq., of +Manchester. They are tenable for two years and about three are awarded +each year. They are open to males of British nationality who at the date +of the election shall be over the age of eighteen years and under the +age of twenty-three years. + +Every scholar must enter the University of Manchester for one Session +for a course of study approved by the electors. The remainder of the +time covered by the Scholarship must be devoted to the examination of +subjects bearing upon Commerce or Industry in Germany or Switzerland, or +in the United States of America, or partly in one of the above-mentioned +countries and partly in others, but the electors may on special grounds +allow part of this period of the tenure of the Scholarship to be spent +in study and travel in some other country or countries. It is intended +that each scholar shall select some industry, or part of an industry, or +some business, for examination, and investigate this comparatively in +the United Kingdom and abroad. The first year's work at the University +of Manchester is designed to prepare the student for this investigation, +and it partly takes the form of directed study, from publications and by +direct investigation, of English conditions with regard to the +industrial or commercial subjects upon which research will be made +abroad in the second year of the scholarship. Finally, each scholar must +present a report, which will as a rule be published. + +The value of a Scholarship is about £80 a year for the time spent in +England, £150 a year for time spent on the Continent of Europe, and +about £250 a year for time spent in America. + + +EDITOR'S NOTE. + +MR. N. L. WATSON's sudden departure to fill a commercial position in the +East has prevented him from seeing this Report through the press +himself. + + + + +TABLE OF CONTENTS. + + + PAGE. + + Chapter I. The Economic Basis of the Argentine 1 + + " II. The Railways 6 + + " III. Industries and the Labour Question 12 + + " IV. Foreign Capital and Public Debt 16 + + " V. Argentina from the Immigrant's + Standpoint 20 + + " VI. English Trade. Its Position and + Prospects 25 + + " VII. The Tariff 41 + + Statistical Appendix 53 + + + + +CHAPTER I. + +THE ECONOMIC BASIS OF THE ARGENTINE. + + +The first thing that strikes the new arrival in the Argentine, and the +last thing that he is likely to forget when he leaves the country, is +the extraordinary inflation of prices. With the exception of meat, and +perhaps bread, there is no article of common consumption which does not +cost considerably more than in England, every allowance being made for +freight and tariff charges. The reason for this excess is doubtless to +be found in the concentration of trade in the capital. All imports, for +reasons that will be dealt with later, pass through the hands of the +large houses in Buenos Aires, who act as sole agents for the whole of +the Republic north of the Rio Negro. [While, owing to the precarious +nature of all business, dependent entirely on the grain and cattle +yield, much higher prices are charged in fat years than would be +justified if these times of prosperity were regarded as permanent.] +Because of this concentration of business in the capital, and in the +centre of the town in particular, rents have risen to an immense extent, +greatly increasing all establishment charges, and in turn the price of +commodities sold--a cause which acts again of course in retail trade and +neutralises the freight charges to outlying districts. But the essential +fact in Argentine Economics, and one which seems more than obvious, but +apparently escapes the comprehension of Argentine legislators, is that +the country is naturally, and must remain for some considerable time, a +producer of raw material exclusively. The country is still considerably +under-populated for the development of its natural resources, while +only a small portion of the settled area is yet producing even half +the yield of which it is immediately capable. Immigration of a certain +class--capable agriculturalists with some capital--is still required. +But with a strange perversity politicians have persistently advocated +a high protective tariff for the purpose of fostering industrial +development. The result has been that certain industries have cropped up +under this system, which are quite incapable of independent existence, +and, while satisfying neither the employers nor their men, constitute a +very heavy drain on the national purse. The chief objection, however, +to the policy is that it invites a class of immigrant who is really not +required in the country and who has taken to settling in the capital +instead of scattering into the camp. + +The immigrant required is the "colonist," to whom the country is already +beginning to owe much of its prosperity. There are two distinct types of +colonist--the one who buys his land on a permanent colony, and builds a +decent house, and the temporary tenant whose economic principle is to +break the soil of new land, and moves to a new district at the end of +his term. The latter owes his origin to the cultivation of "alfalfa," +the wonderful clove-like plant that will grow on sand, and requires no +rain, but thrives on the surface water which abounds in the country's +flat, low-lying plains. Alfalfa will not grow in hard unbroken ground, +and where the land is such, cereal cultivation is necessary for three +years to reduce it to a fit condition. This work requires labour which +is not available among the gauchos, the horsemen who act as hands on +the estancias, and the estanciero himself probably does not possess +the knowledge requisite for the cultivation of grain. A contract is +therefore made with colonists, usually Piedmontese or Basques, to break +the soil and grow cereals for three, or more usually five, years, either +at a fixed rent or for a percentage of the crop, the stipulation being +that with the last year's seed alfalfa is sown as well. When the last +crop has been cut, the latter grows through the stubble. The growth of +this plant is such that as alfalfa is more cultivated, the stock-bearing +capacities of the country will easily be trebled. + +The main supports of the country are, therefore, cereals and cattle, the +latter being undoubtedly the more profitable investment, but requiring a +much larger capital. By Argentine, as by French, law property at death +is compulsorily divided, and this tends to split up the now immense +tracts of land occupied by individuals. Whatever the social advantages +of such a system may be, it is not conducive to the most economic +working, nor yet to the breeding of the finest strains of stock, for +which a large capital is required. A form of evasion, however, has been +found in the formation of limited liability companies, often private, +to run big estancias. These have everything to recommend them from the +economic point of view. A capable manager is put in charge of the work +on the spot, and, as capital is usually forthcoming, the estancias are +run in such a way as to yield the greatest possible return. They are +usually well-maintained, up-to-date in management and fittings, and +supplied with good home-bred strains. + +There are, however, other natural sources of wealth in the Argentine; +notably, the forests of hard-woods (of the acacia order) which abound +in the Chaco, in Corrientes and Entre Rios, and are also found in the +province of Córdoba and elsewhere; the sugar industry in the north-west +(of which more will be said under "The Tariffs"); the hitherto +undeveloped fruit cultivation in all parts of the country (this in +the sub-tropical and central provinces would be especially liable to +suffer from the depredations of locusts); perhaps, too, cotton growing +in the Chaco, where, however, the supply of labour is much questioned, +and some pests peculiar to the cotton-bole are reported as existing; +and, lastly, the minerals, as yet wholly undeveloped. Although these +are undoubtedly much more scarce than in Bolivia and Chile, the absence +of an impartial geological survey has rendered the flotation of bogus +companies easy, and practically prevented any genuine development, in +spite of their greater accessibility than in the former country. The +recent boom and collapse in gold ventures was the result of stock +exchange transactions, probably fraudulent, as, with the exception +of the sea-bed to the very south of the country (where it cannot be +recovered), gold is probably one of the few minerals which does not +exist to a workable extent. + +A curious feature in the Argentine is the absence of navigable rivers. +With the exception of the treacherous Paraná and the Uruguay, enclosing +the provinces of Entre Rios and Corrientes, there is not a single +waterway, natural or artificial. The result of this has been an enormous +network of railways spreading over the central provinces with isolated +offshoots north and west. The consequent great influx of capital would +naturally have encouraged a large import trade; but the prohibitive +tariff has succeeded in retaining the money in the country, while the +revenue derived has, almost without exception, been uneconomically +employed. The result is that, apart from an occasional monopoly that has +succeeded, the only large gainers from this policy have been the town +property holders. + +A large part, however, of the province of Buenos Aires is liable to +periodic inundation, and, to obviate this, an extensive system of +drainage has been planned, a work of great difficulty owing to the +small difference of altitude between the land and the sea. Some canals, +however, are in course of construction of which advantage might possibly +be taken, if they were made of sufficient depth, for local transport. +If this were done, a large and important part of the country would +be provided with a cheaper alternative to the railway. In a volume +descriptive of the Republic (published, in English, by the Department +of Agriculture) this possibility is foreshadowed, stress being laid on +the slight fall from the Andes to the coast, and a scheme, chimerical +on the face of it, of a system of trans-continental canals is vaguely +outlined. But, being so wildly improbable, it seems to have no existence, +even problematical, outside the pages of that advertisement. + + + + +CHAPTER II. + +THE RAILWAYS. + + +The prosperity of the Argentine Republic would undoubtedly have been +impossible without the enormous investments made by British financial +houses in its railway development. For many years--in fact, until quite +recently--the influx of capital was welcomed and encouraged. Concessions +were lavished on anyone ready to take them up, and, far from irksome +conditions being imposed, valuable privileges were granted to the +_concessionnaires_. Moreover, the national and provincial governments +were only too eager to get rid of such lines as they themselves owned, +and invariably worked at a loss, and to transfer them to European +concerns. That the railways were financed from motives of promiscuous +philanthropy is improbable, but that the English financiers were almost +alone in their confidence in the future of the country is not only true, +but it is a truth which the most respected and able Argentines fully +realise. There exists, however, at the present moment a very powerful +feeling of opposition to the "Empresas," as they are called--the +"concerns" that practically control the country--and (so say their +opponents) exploit it entirely for their own ends. Apart from the fact +that a railway, in order to pay, must humour its traffic, and would be +attempting suicide were it really guilty of the exorbitant overcharging +and mismanagement of which some lines are accused, there is little or no +cause for these complaints. In a country where a mortgage on land pays +8 per cent. interest, and where other investments are expected to give +a proportionate return, the 7 per cent. of a railway dividend is far +from being excessive, especially when it is remembered that locusts and +drought may at any time absorb practically the whole year's profits of +a whole system. + +The motive of this hostile spirit, or what may be behind it, is difficult +to discover. That jealousy of foreign--especially English--influence +exists in a certain section of the people is undoubted. But, considering +that the true Argentine population--supposing that such a thing exists +or could be defined--is very small compared with the foreign element, +and that of itself it is absolutely incapable of developing the country, +some other reason must exist to justify the position. But, discreditable +as such jealousy is to the people concerned, it is without doubt a very +powerful factor. + +Fortunately, these opinions are not shared by the Government, nor, +probably by the people generally, who, although always complaining +of high freights, delay in transport, and all the other grievances +for which every railway under the sun is blamed, seem to dread the +alternative of Government control. The official members of the +Government are on the whole considered to be sincere, industrious men, +with a genuine desire to do their best. But Government management +invariably means peculation, among subordinates especially, and the +introduction of petty politics into business. It is from this element +that the opposition springs. Concessions requested by capitalists, +permission for extensions required by existing concerns, although of +undoubted advantage to the country and approved by Government, are +blocked in Congress. The tone and quality of Congress may be judged +from the fact that the only measure of any importance passed during a +whole session was that authorising an increase in the salaries of the +deputies. For weeks on end no meeting can be held, be the measures to be +discussed ever so important, because, from carelessness or deliberate +intention, sufficient members do not appear to form a quorum. Several +deputies, indeed, never sit from the beginning of the session to the +end. Thus, even if there is no opposition to a railway bill, it often +happens that it is as effectually blocked by the sheer slackness of +individual congressmen. + +That the railways themselves are not blameless in every respect stands +to reason. And, although this is almost certainly not the origin of the +present obstruction to their demands, they would command a much greater +share of sympathy--after all, a considerable asset--if they would +realise their own faults. + +Having had, and still having, a practical monopoly in their own +districts, the various companies have adopted a somewhat despotic +attitude towards new and outside enterprise, and, sometimes a disregard +for the requirements of their customers, as well as for the true needs +of the country. Railway affairs centre in River Plate House, and +any attempt on the part of outsiders to establish themselves in the +Argentine is viewed with great suspicion by the financial ring that +rules there. Concessions put forward have been blocked times out of +number by the influence which the ring could exert in Congress. If by +any chance--and this has been more frequent of late--the concessions +have been secured in spite of its opposition, every obstacle is placed +in the way of raising the requisite capital in London--opposition which +the ring is in a peculiar position to make effective. Only recently a +very sound project was floated with the greatest difficulty, even the +debentures failing to realise more than 90 per cent., because one of +the existing lines considered the proposal a trespass on its especial +preserves. Moreover, there seems to be every reason to anticipate the +rapid failure of the new line owing to the rate war which the existing +one will undoubtedly declare. + +This apparent disregard of the needs or desires of their customers is, +perhaps, attributable partly to the unreasonable nature of the demand, +partly to an occasional pursuit of some pet theory of management, +but, in all probability, more largely to the division and conflict of +authority. The management is separated from its central board, not only +by the Atlantic, but by the local board sitting in Buenos Aires. And, +although on the home board there are men whose knowledge of the country +was intimate some years previously, their aspect of the working of +a railway naturally undergoes considerable modification upon their +transference from the executive to the directorate; while the local +board, who are often appointed merely to secure local support and +influence, are rather apt to exercise their power in a vexatious and +capricious manner--more to show their authority than to further the +interests of the railway. As regards the actual working of the lines, in +some cases complaints are made that too much confidence is placed in +the long-haul, long-train theory. There are only a few lines on which +there is any opportunity for or advantage in the very long train, the +agricultural districts centring round the various ports. Owing to the +lack of warehouse accommodation along the line, grain has often to be +loaded into the trains straight from the growers' carts, thus causing +endless delay when trains of immense length stand to be filled. It +often happens, too, if the harvest proves at all good, that, in spite +of Government orders, the rolling stock is quite inadequate for the +traffic, the result being that with the accumulation of work in the +docks, a crop is sometimes kept locally for a whole year before it +can be removed to a port. + +Considerable inconvenience is caused, and will continue to be caused +for some time, by the congestion at the port of Buenos Aires. Control +there has been exercised by half a dozen different boards with no +central authority. The wharfage and warehouse accommodation are quite +inadequate, even if the great savings possible in time and space were +realised. And, lastly, although there is already sufficient confusion +with a one gauge system, there is an immediate prospect of the +introduction of two other gauges. The existing lines there are 5 ft. +6 in. But preparations are already being made for the continuation of +the Central Córdoba (metre gauge) into the port, and possibly of the +Entre Rios (4 ft. 8½ in.) extension as well. + +The solution to the difficulty is at present very doubtful. Increased +accommodation to a limited extent is quite possible in Buenos Aires +itself, and with an immense outlay of capital an entirely new set of +docks might be constructed there--though this is highly improbable. The +more reasonable course would undoubtedly be to construct new ports or +develop existing ones elsewhere, a course that is already being adopted +by the Southern at Bahia Blanca, and the Entre Rios line at Ibicuy. +There is also a new project floated for the construction of a large +port in the Bay of Samborombon (also on the Southern system), but this +scheme does not meet with much approval in the country, while, for some +reason, the port of La Plata has never succeeded, in spite of every +encouragement. At some time a port will have to be constructed at Mar +del Plata, where the only rock foundation on the whole coast is to be +found. Mar del Plata is the Argentine Brighton, and any commercial +development there is certain of an unfavourable reception. But as sand +and mud are the only base from Santa Fé to Bahia Blanca--in some cases +there being not even firm sand--and as dredging is exceptionally +expensive, no other solution seems reasonable. On the Uruguay River, +and on the Eastern Bank of the Paraná, in the South of Entre Rios there +is deep water. But as this only affects the lines of that province and +of Corrientes it has no bearing on the general question of Argentine +transport. + +As a last word, it must be remembered that the present boom in +the country is extremely recent. Argentine has developed in an +extraordinarily rapid manner, and some confusion is excusable. That the +railway and the country will realise and overcome their difficulties +there can be little doubt. And in any case the natural wealth of the +country is so great that in the end it will force a way out, in spite +of obstacles. + +Statistics relating to railways will be found in Chapter VI. + + + + +CHAPTER III. + +INDUSTRIES AND THE LABOUR QUESTION. + + +The labour question in the Argentine Republic is one of great +difficulty. There is really no native labour, certainly none for +industrial purposes. The Gaucho,[1] now degenerated into the peon,[2] +is only available for stock-raising. Agriculture is carried on almost +entirely by colonists of various nationalities, and industries by +Italian immigrants only. There is one exception, the sugar industry +of the north. There conditions are so very different from those in the +centre and the south, that it must be treated as almost a separate +country. While the north-east--the Chaco district--is still in so +uncivilised a state that its possibilities are very hazy. The Quebracho +trade yields very large returns with Indian labour, but Indian labour +is an unknown quantity. Uncivilized Indians still cause considerable +trouble there, and opinions differ considerably as to the possibility +of employing them successfully for cotton growing and other new +enterprises. + + [1] The descendents of the original Spanish settlers, often showing + marked traces of Indian blood. + + [2] Peon is the name applied to all labourers. + +The more important question is that relating to labour for factories, +workshops, and railways in the central part of the Republic, and in the +towns themselves. That a country situated so far from the great centres +of production should continue to import nearly all its necessities as +well as luxuries seems incredible. Yet the tendency is certainly more in +the direction of increased importation than of home manufacture. There +is a tariff of exceptional severity on every conceivable article, but +even this fails to develop industries in the country. Breweries, flour +mills and repairing shops seem to be the only successful growths, with a +few isolated instances, such as canvas shoe factories and similar works. +Even the production of such essentially native goods as "ponchos"[3] has +lapsed in favour of German and Italian wares. While the manufacture of +matches--in the hands of a powerful monopoly, bolstered up by privileges +and an exorbitant duty--was so seriously jeopardised by a strike last +year, that the threat was made--whether seriously or not, cannot be +said--of closing down the works and importing immediately from England +and Sweden. (It is satisfactory to note in this connection that +an English firm promptly stepped forward and made an offer to the +Government that if a reduction was made in the duty, it would undertake +to place on the market, within little more than a month, some millions +of boxes of matches). + + [3] "Ponchos" are the peculiar rugs with a central slit to admit + the head when the "poncho" is used as a cloak. They are used + universally in the country. + +Even those industries, however, that flourish, do so in spite of their +labour. They are all, it will be observed, concerned with the production +of goods that are either expensive or difficult to transport, and only +the direst necessity could prevent their home manufacture. In the +course of last year there were two general strikes (in Buenos Aires +and Rosario) besides numerous small ones. Dock labourers seem to be +continually in partial ferment, and even the most generous treatment +does not prevent railway employees from stopping work occasionally. The +causes of this instability are fairly apparent, though the same cannot +be said of the remedy. + +For various reasons industrial labour is entirely supplied by Italian +immigrants, mostly Neapolitans. The other nationalities who come into +the country engage for the most part in agricultural work, either as +colonists, buying their land, or as tenant farmers on short leases. +Skilled English and other European labour is also employed in factories, +but only for the higher grades of work, and in positions of some +responsibility. Thus the available labour is recruited from the lower +class of immigrants, and from a race not remarkable for stability. + +In the second place, living in the capital is extremely dear, not least +being the price of house accommodation. Although an Italian can satisfy +his requirements at a much lower rate than an Englishman could his, +yet even he can scarcely make both ends meet, while the excess of +expenditure over receipts is particularly galling in the land of +promise. Recently, too, additional grievances have been introduced by +the wholesale eviction of tenants owing to the purchase by syndicates +of whole blocks of buildings, and the subsequent re-letting of them at +immensely increased prices. In the first six months of last year there +were more than eleven thousand petitions for evictions before the +justices. With a discontented and excitable working population, +therefore, as a field for their activities it is not surprising that +the agitators, of whom there is no lack, should be so successful. +Attempts are being made by various large concerns to supply reasonable +accommodation for their employees, and more than one railway has been +particularly liberal in this respect. But it was only a short time ago +that a strike of very serious dimensions was declared in the workshops +of one of the most generous, on the most ridiculous pretext. + +The great danger in all labour troubles in the Argentine lies in the +fact that they are apt to become general and paralyse trade. It is +usually impossible to secure "blacklegs," a circumstance which the +workmen fully realise. Moreover, owing to the peculiar economic +conditions of the country, a strike on the part of the workmen in one +industry means that all the workmen in that industry stop work; and, as +trade is usually in a state of congestion, the difficulties created are +enormous. A dock strike in Buenos Aires is doubly serious, because the +port is already overcrowded, and there is no alternative port suitable. +A match strike, with the present tariff, causes a match famine. A +railway strike is sure to break out only when the year's harvest must +be negotiated. And should any single strike show signs of missing fire, +in all probability the result is a sympathetic strike on the part of +all workmen, including cab-drivers and bakers. + +The problem before the Government is very serious, if, indeed, it is not +a question which it would be wise for the parties concerned to work out +for themselves. Considerable success is reported to have attended the +efforts of the Western Railway, who have instituted a conciliation board +for the mutual consideration of difficulties with their employees. But +unless by some means the cost of living is reduced, it is difficult to +see how satisfactory conclusions can be attained. If prices continue +to rise as, in all probability they will, a rise in wages will be +imperative. This, in the case of railways would mean an increase in +rates, as there are few who are earning more than a reasonable dividend, +while an increase in rates would cause great dissatisfaction to the +whole agrarian population; after all by far the most important in the +country. It is even doubtful whether cereals could stand any heavier +rates than they bear at present. + +The root of the labourer's dissatisfaction lies, as has been said, in +the high cost of living. Unless this can be lowered, there can be no +hope of a final settlement. And the only means of lowering it is a +reduction in the tariff and a greater mobility of trade in the +interior. + + + + +CHAPTER IV. + +FOREIGN CAPITAL AND PUBLIC DEBT. + + +It is not the intention to deal in this work with the market +fluctuations, the arrangements made between provincial banks and +their creditors, nor with any of the financial aspects which these +questions have recently assumed. Such a course would not only be out of +place, but would be of little interest or value, owing to the unstable +state in which the negotiations are at present. The object will be rather +to indicate the part that foreign capital has played in the development +of the country and that played by politics in finance. + +An important fact to realise is that the liberation of the country from +the Spanish colonial system is comparatively recent, and that a people +unfitted in every way for political independence was suddenly put in +possession of a country of quite exceptional richness but absolutely +undeveloped and almost unpopulated. Men with no political experience +nor education found the road open to responsible positions requiring +statesmanlike qualities in an unusually high degree--not only financial, +but diplomatic and administrative ability combined with absolute +integrity. It is sufficiently well known how far they came up to +the requirements. For it is only at the present day that political +morality has found a place in the national executive. In provincial +administration and in the ranks of the deputies it is doubtful whether +it will ever predominate. + +It is a favourite complaint of Argentines that their country is +regarded in Europe as a hot-bed of revolution. They are never weary of +complaining that their claim to be a civilized power is disregarded. In +the absence of a definition of civilization the question must be left +open. But as regards revolutions the European idea is substantially +correct. Argentines have undoubtedly not yet realised a sane conception +of government. + +If those in power fail to convince the country of any sincerity or +appreciation of their responsibilities, the people themselves do not +treat the authority of government with the respect that alone permits +the growth of those qualities of statesmanship whose absence is so very +obvious. + +One improvement, however, must be noted, an improvement of the very +greatest importance. Whereas in former years little respect was paid +to non-partisans, the people have now learnt that it is to everyone's +interest to confine political differences to the actual disputants--to +fight their battles in their own garden, and to leave neighbours at +peace. Capital, therefore, is tolerably safe, especially as the federal +executive is a body which, if not possessed in every branch of the +greatest intelligence or even honesty, is at least controlled by men +who realise their position and have sympathies and knowledge beyond the +limits of their country. + +The considerations just mentioned bear more especially on capital sunk +in land and its immediate connexions, or in industrial concerns. As +regards public debt, the question is more involved. The laxity of public +morality has here the disastrous tendency of making a party temporarily +in power regard the actions of its predecessors as invalid. The +temptation is certainly great. When a foreign loan has been contracted +in the name of a municipality or provincial government, at the expense +of the people at large, but is used purely for party or even private +ends, it is at least comprehensible that an opposing party should regard +the loan as an unwarrantable exploitation of the public, and should +think it justifiable to allow the creditors to suffer instead of their +own countrymen, who were no party to the transaction. The policy and +ethics of such a view are another matter. And it is, as usual, the +honest who suffer. For, if the succeeding party are possessed of higher +views in the sphere of political morality, owing to the necessity of +regarding their predecessors' really fraudulent contracts as binding on +themselves for fulfilment, the profit goes to the malefactors, while the +odium incurred in realising the money to cancel the obligation falls on +the unoffending upholders of honesty. + +The extraordinary feature that impresses itself on the mind when looking +through the history of Argentine loans is the readiness with which +London financiers responded to the invitations. No more remarkable case, +probably, could be found in the whole history of finance than that of +the Buenos Aires Provincial Bank, its absolutely reckless mismanagement +and of the inevitable collapse which followed--resulting, as everyone +knows, in the failure of Messrs. Baring. This catastrophe set back +Argentine progress several years, and it is only now that the recovery +is at all complete. + +But it can scarcely be emphasised too strongly that the recovery is +complete. Argentine national credit is as sound as that of any civilised +power. Indeed, the fact that the national Government undertook the +responsibility of so great a part of the debts of the provinces is in +itself sufficient indication of the Government's policy. With regard to +municipal loans, it must be admitted that as these are regarded nowhere +as other than a highly speculative investment, future irregularities +would fall on the heads of people who had full knowledge of their risks. +But the risks are extremely small compared with those which existed +formerly; and the national executive seems inclined to exert pressure on +recalcitrant bodies, compelling them to adhere to their agreements. In +a recent case, indeed, intervention was necessary, not in the interests +of the financiers, but in that of the municipality, the extraordinary +exactions of the French port-concessionnaires at Rosario, having had +very disastrous effects on that town's development. For once the +municipal authorities were not the only gainers and the people +themselves were the sufferers. + +Before presenting figures of Argentine loans in detail it may be of +interest to show the proportion which was taken up in London. Of the +total raised by the Republic from its emancipation in 1822 until 1904, +amounting to £152,326,460, Great Britain supplied nearly four-fifths, +namely, £125,082,710. This total is made up of the National, Provincial +and Municipal external debts, which amount severally to $540,770,156, +$202,067,716, $24,868,480 gold, or roughly £108,000,000, £40,000,000 +and £4,500,000 sterling, of which England provided approximately +six-sevenths, two-thirds and of the last, all. When it is remembered +that of the capital invested in the country commercially three-quarters +(or 250 out of 326 million pounds sterling) are also British, the +influence which this country has had on Argentine progress cannot be +over-estimated. + +It is a point, by the way, that a preference on colonial produce would +be a preference against these interests of ours in the Argentine as well +as against the 30,000 people of British extraction resident there, of +whom at least one-half must be engaged or interested in the rearing or +exporting of cattle. In grain they would be affected but little. + +In estimating the meaning of this tremendous debt it must be remembered +that much of it is repetition. Not only were many of the loans issued +for conversion of floating and other existent debt, but it will be +noticed that a considerable part of the national debt was contracted +to liquidate the various indebtedness of different provinces. + + + + +CHAPTER V. + +ARGENTINA FROM THE IMMIGRANT'S STANDPOINT. + + +It seems to be the ambition of every new country to secure immigration +at all costs, regardless of the prospects that really exist there, and +also of the true interests of the country. The result of this policy +at its best leads only to a boom, with its inevitable reaction. The +wiser plan of letting the country gradually develop itself, admitting +cheerfully the adventurous spirits who are ready to come without +invitation or advertisement rarely seems to commend itself to colonial +politicians. Argentina at one time seemed more than likely to compete +with Australia and Canada in this respect, trying to allure colonists +with impossible promises of free land and gigantic crops, and only +the untiring efforts of the Englishmen already established there have +prevented that country realising the inevitable consequence. The present +Argentine Government admit the unsuitable nature of the country for +impecunious Englishmen, and confine their attentions to attracting +Italians and other foreigners, for whom the climate and conditions of +labour are certainly more adapted. But even these are beginning to +discover that expectations and fulfilments do not always coincide. +The truth is that, as is heard from all parts of the world, special +knowledge or capital is indispensable in every new country, but that +with these the chances of success in life are considerably greater than +at home. To the Englishman, however, in the Argentine, there is the +additional difficulty of the language--a difficulty which were he +not an Englishman would be almost negligible, for Spanish is an easy +language of which to acquire a working command. + +It is the firm belief of every Englishman, apparently, that certain +skill in athletics of necessity qualifies him for cattle farming. +Although he is physically well enough suited to camp life, the whole +truth is apt to be a disillusionment. The market for athletic young men +is already glutted, and though many estancieros take on an additional +overseer or apprentice to please a friend, in many cases they do not in +the least appreciate bestowing the favour. It must not be supposed that +Englishmen are not wanted on estancias. On the contrary, even Argentines +usually prefer an English manager. The only difficulty is that the +supply of raw material exceeds the demand. The young man who goes out to +seek his fortune is usually one with no qualification but an agreeable +manner and a good physique, desirable enough assets, but not such as to +entitle the holder to an extravagant salary. The wisest plan, therefore, +that an immigrant of this sort can pursue is to go to an estancia as an +apprentice for a nominal salary of twenty or thirty pounds a year, on +a three or four year's contract. Work is very hard, though often the +actual conditions of life are extremely comfortable, but the education +required is thorough and qualifies for a position of majordomo at the +end of the contract. Many men who possess some capital, or expect to +possess it, also go through this training as it enables them to invest +their money wisely, and later to work it economically. + +There are many, however, who find the work and conditions of life +trying, especially on an inferior estancia, and take the first +opportunity offered to change their occupation. The usual change is +to a bank or a railway. Both are regarded as a last resource, because, +although the pay (anything from £100 a year) is considerably higher than +in camp life, expenses are considerably more so; while there is less +chance of promotion because the better positions naturally fall to men +with a special railway training who enter the service from home under +contract. For a really able man there are undoubtedly good prospects +on Argentine railways, and the difference in salary between that of an +employee there and that of one in a similar position at home more than +compensates for the increased cost of living. In Banks the salaries are +much the same as on railways to begin with, but chances of promotion are +said to be less, while the work does not give so many opportunities of +seeing the country, and to many is intrinsically less interesting. + +In business houses there is never a chance of employment, except, of +course, through personal influence. English clerks are employed +very little, and there are no positions corresponding to the large +book-keeping staffs of banks and railways, nor to the assistants, and +secretaries to chiefs of departments, the inspectors and superintendents +of the latter. + +For the Englishman it is very fortunate that the lethargic, and often +untrustworthy character of Latin races requires constant surveillance. +But for the same reason it is obviously impossible for employers to +choose their overseers at random, and a personal introduction is almost +indispensable. In giving this short sketch of the prospects open to the +English immigrant no mention has been made of the immigrant labourer or +artisan. The reason of this is that in this respect Argentine must be +regarded almost as a tropical country, where English labour is out of +the question. Italian and English labour cannot work together, not only +from incompatibility of temperament but because the Italian can work +for considerably less than the Englishman. In addition, the climate in +summer is far too hot for the latter. There are exceptions to be found, +notably in the case of butchers at the freezing works, and that of some +engine drivers, and engine-shop artificers. But, as the drivers are +compelled by law to speak and understand Spanish, they are not numerous. +In any case, there is absolutely no opening for a labourer or artisan, +unless he comes to the country to take up a definite vacancy that has +been offered him. + +Regarded, however, as a country for the Italian immigrant the prospects +are certainly better, although not so dazzling as he is led to believe +in his own country. Such popular phrases as "immense zones which merely +await the strong arm of the colonist for their development" fall, +unfortunately, rather short of the truth. The tendency is to lay all +land possible under alfalfa, only such as is incapable of growing it +being sold for agriculture. Large tracts, nevertheless, are being formed +into colonies by land development companies, and in the past have been +so divided by government, a system which gives good returns to the +farmer. The latter, however, is rather inclined to work his land to +death, often without rotation, and, though actual exhaustion is very +remote, the rest afforded by a year's fallow and leguminous crops is +rendered impossible for a variety of reasons. + +A mischievous result of the financial standing of many of the colonists +is their frequent lapse into the power of the local store-keeper. There +are no branch banks in the camp towns and often no grain dealer apart +from this accommodating tradesman. In return for very elastic credit, +based on crop expectations, he buys the whole yield at his own price, +and, as he has a monopoly of the retail trade as well, he secures a +large profit on both transactions. In his defence it must be admitted +that he runs a very great risk indeed in the credit which he is +compelled to give, and is justified to a great extent in recouping +himself when the opportunity occurs. But the undeveloped economic +system, and the encouragement of settlers without a sufficient backing +of capital, are much to be deplored. In recent years the agriculture of +a whole province threatened to come to an abrupt termination owing +to the complete inability of the colonists to buy or borrow from the +merchants seed for their year's sowing. It was only rescued by the +prompt and wise action of the local railway company who supplied the +grain, on the easiest of terms and without security. The result was, +although, of course, an immediate loss to the company, the salvation +of the province, and the railway's ultimate gain. + +Owing to the enterprise of various people there seems to be a +possibility that the colonist's conservative partiality to cereals +may be overcome. Not only have the possibilities of chicken-farming +been demonstrated, but the co-operative working of a large dairy and +ice-producing plant has already proved a success. The co-operative +movement may indeed open a field, especially in the South, for other +labour besides that of Latin origin. It is true that the Boer Colony has +not been an unqualified success. But the Welsh have thrived in Chubut, +and of the newly opened regions about Nahuel-Huapi residents speak +enthusiastically. Unfortunately there does not seem to be much land +available, and, hitherto, there have been no railway facilities. There +is a paper dealing with the Welsh Colony, published by the Foreign +Office in London. But, apart from the accounts of sporting and +scientific expeditions, there is little available literature. It is much +to be deplored, and in default of an independent work in English the +translation of existing works in other languages would be very welcome. + + + + +CHAPTER VI. + +ENGLISH TRADE. ITS POSITION AND PROSPECTS. + + +It is always difficult to entice commercial men into giving information +of any value regarding their affairs. The seeker after more material +and solid things than figures--after instances and facts rather than +theories--is very apt to be disappointed. The value of the opinions +gleaned was rather impaired when experience showed that success and +complacency, despondency and comparative failure, usually went together. +It is pleasant to be told not to bother about British Trade, that +"British trade is all right." But it is not entirely reassuring when +such lessons as can be derived from statistics and the opinions of less +successful men are largely opposed to this view. + +Some more definite information was, however, available, and from +conversation with people directly concerned with general trade, both +English and Argentines, it was possible to supplement to some extent +the statements, extremely valuable as they are, of our consuls in the +country, as well as the deductions from official statistics. With regard +to consular reports a word must be said. These are often abused by men +of position in trade, and, though their brevity is to be deplored, a +word of protest must be uttered against the inconsiderate and disdainful +criticism to which they are subjected. Moreover, one of the greatest +authorities on Argentine affairs, Dr. Francisco Moreno, an Argentine +delegate on Col. Holditch's arbitration expedition on the Chilian +Frontier, was emphatic in his approval of these reports, even going so +far as to say that he trusted their statements and figures in preference +to those of his own government. + +On every hand there were indications leading to two conclusions, namely +that British trade is losing, or has lost considerable ground, and that +the greater part of the blame is due to the producer or merchant at +home. A superficial glance at import statistics would seem to give the +lie direct to any such assertion. Such strong influences, however, are +at work, that it is only after a careful study of all the circumstances +that anything like a true estimate can be formed. + +Before, therefore, pronouncing judgment upon its present position and +its future, a short examination of the development of our trade viewed +in conjunction with the economic conditions of the country and with the +various interests in competition with ours, is necessary both to explain +how our conclusions were reached, and to assist in the formation of +a juster appreciation of our commercial relations with the country. + +The following statistics give in brief the course of trade in the +Argentine according to official returns for the years 1890, 1895, and +1900 to 1905 inclusive:-- + + +IMPORTS AND EXPORTS FROM AND TO DIFFERENT COUNTRIES. + + 1890 1895 1900 1901 1902 1903 1904 1905 + $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 + Gold Gold Gold Gold Gold Gold Gold Gold + Antilles: + Imports ... 86 19 43 106 373 571 505 + Exports 975 1,616 438 366 470 164 282 420 + Belgium: + Imports 10,986 7,441 8,430 8,688 5,484 5,448 9,069 8,727 + Exports 12,003 15,417 17,980 13,457 13,760 20,143 17,566 20,780 + Bolivia: + Imports 85 72 122 138 122 125 108 126 + Exports 296 591 578 541 600 450 392 539 + Brazil: + Imports 3,354 4,095 3,741 4,386 4,583 5,350 6,032 5,328 + Exports 8,442 8,096 6,185 9,702 8,368 8,545 10,727 13,039 + Chili: + Imports 51 41 124 111 213 200 469 669 + Exports 2,188 3,067 870 568 684 1,170 1,440 1,510 + France: + Imports 19,875 9,116 10,897 9,959 9,243 12,708 17,109 21,248 + Exports 26,683 20,337 19,007 28,637 29,587 34,294 30,596 37,594 + Germany: + Imports 12,301 11,162 16,635 16,724 13,229 17,009 24,926 29,083 + Exports 11,566 13,323 20,070 21,479 22,939 26,812 29,522 37,058 + Holland: + Imports 850 103 173 573 622 790 1,007 1,288 + Exports 160 92 3,906 1,753 2,834 4,546 3,500 3,761 + Italy: + Imports 8,663 10,363 14,924 14,736 12,265 14,702 19,127 20,284 + Exports 3,194 3,518 4,304 4,318 4,215 4,338 4,344 6,468 + Paraguay: + Imports 1,724 1,824 1,860 1,767 1,469 1,059 1,569 1,616 + Exports 336 100 161 216 213 173 216 330 + Portugal: + Imports 110 58 78 68 89 213 271 300 + Exports 456 138 369 7 113 101 88 23 + South Africa: + Imports ... ... ... ... 4 62 126 34 + Exports ... 8 3,240 2,891 8,285 9,170 4,941 5,524 + Spain: + Imports 4,302 2,575 3,691 3,912 3,166 3,574 4,797 5,726 + Exports 2,083 1,311 2,699 2,131 2,025 2,035 1,923 2,334 + United Kingdom: + Imports 57,816 39,524 38,682 36,460 36,995 44,826 64,517 68,391 + Exports 19,299 14,694 23,890 29,920 35,084 35,600 36,445 44,826 + United States: + Imports 9,301 6,686 13,438 15,533 13,303 16,684 24,473 28,920 + Exports 6,066 8,947 6,882 9,296 10,037 8,126 10,214 15,717 + Uruguay: + Imports 5,885 736 520 679 744 760 862 1,023 + Exports 5,506 3,290 2,302 3,710 3,673 4,188 5,020 6,705 + Other Countries: + Imports 6,932 1,207 141 175 1,393 7,314 12,265 11,870 + Exports 1,557 25,516 41,711 38,715 36,593 61,119 107,233 126,208 + TOTAL --------------------------------------------------------------- + IMPORTS 142,240 95,096 113,485 113,959 103,039 131,206 187,305 205,154 + EXPORTS 100,818 120,067 154,600 167,716 179,486 220,984 264,157 322,843 + + +While a similar table (calculated in Spanish dollars) gives the following +figures for the principal exporting countries in the year 1822:-- + + United Kingdom $5,730,952 + France 820,109 + Germany, Holland, Sweden and Denmark 552,187 + Gibraltar, Spain, and Sicily 848,363 + United States 1,368,277 + Brazil 1,418,768 + China 165,267 + Havana 248,625 + Chile and Peru 115,674 + ----------- + TOTAL $11,267,622 + + +The contrast between the two tables is sufficiently remarkable; but +before dealing with either, it is necessary to have clearly in mind the +growth and nature of demand. For this reason the immigration returns and +tables showing the development of the railway system are given at this +point:-- + + +ARRIVAL OF IMMIGRANTS IN THE REPUBLIC FROM 1857 TO 1905. + + Years. Number. + 1857-60 20,000 + 1861-70 159,570 + 1871-80 260,613 + 1881-90 846,568 + 1891-1900 648,326 + 1901-1905 536,030 + --------- + 2,461,107 + + Nationalities. + Italians 1,488,084 + Spaniards 507,853 + French 176,670 + British 37,537 + Austrians 42,983 + Germans 33,686 + Swiss 26,690 + Belgians 19,990 + Others 127,614 + --------- + 2,461,107 + + Arrivals in 1905. + Italians 88,950 + Spaniards 53,029 + French 3,475 + British 1,368 + Austrians 2,793 + Germans 1,836 + Swiss 576 + Belgians 263 + Other nationalities 24,827 + ------- + 177,117 + + +The development of Argentine Railways is shown in following table[4]:-- + + Extent of Capital Passengers Freight Receipts Expenditure + Lines in $1,000,000 No. in 1,000 $1,000 $1,000 + Years kilometres Gold thousands tons Gold Gold + + 1857 10 ·3 56 2 19 12 + 1865 240 5·3 747 71 563 438 + 1870 732 18·8 1,948 274 2,502 1,356 + 1875 1,956 40·9 2,597 660 5,178 3,009 + 1880 2,516 62·9 2,751 772 6,560 3,072 + 1885 4,502 121·7 5,587 3,050 14,298 8,616 + 1890 9,432 321·1 10,069 5,420 26,049 17,585 + 1895 14,116 485·3 14,573 9,650 26,394 13,846 + 1900 16,563 531·3 18,296 12,659 41,401 23,732 + 1901 16,907 538·3 19,689 13,988 43,866 24,128 + 1902 17,677 560·9 19,815 14,030 43,272 22,975 + 1903 18,404 573·0 21,025 17,024 53,569 27,766 + 1904 19,428 588·5 23,312 20,123 62,558 33,216 + 1905[5] 19,793 [6]626·3 26,634 22,283 71,341 39,155 + + [4] Direccion General de Vias de Communicacion. + + [5] Approximate figures. + + [6] £125,274,000 approximately. + + +The relative importance of the various lines with their nationalities is +as follows:-- + + + Length of line Special + 1904. (Kilometres) Engines Coaches Vans Waggons Waggons + _State-owned Railways:_-- + Andine (5ft. 6in.) 339 18 16 16 504 5 + Central Northern (Metre) 1,122 85 51 43 1,418 74 + North Argentine (Metre) 563 15 26 13 250 27 + ---------------------------------------- + TOTAL 2,024 118 93 72 2,172 106 + + Southern (5ft. 6ins.) 3,980 290 344 261 9,533 426 + Buenos Aires Western 1,197 129 136 148 3,711 -- + B. A. Rosario 1,997 146 188 154 4,982 111 + Central Argentine 1,785 162 208 109 5,199 76 + B. A. Pacific 1,261 100 80 60 2,523 15 + Great Western (5ft. 6ins.) 714 90 54 37 1,258 56 + Bahia Blanca and N.W. + (5ft. 6ins.) 385 20 8 8 286 3 + East Argent. (4ft. 8½ins.) 161 14 21 8 279 5 + N.E. Argent. 662 36 42 16 340 7 + Entre Rios 758 30 38 19 492 -- + Prov. Santa Fé (French) + (Metre) 1,392 81 112 47 1,852 48 + Centr. Córdoba (N.) 885 80 76 56 1,606 74 + " " (E.) 210 13 20 12 654 -- + Córdoba and Rosario 289 29 55 32 654 21 + N.W. Argentine 196 20 14 8 520 2 + Córdoba and N.W. 153 9 12 4 86 -- + Transandine 175 14 10 10 130 8 + Central Chubut 70 2 6 3 57 -- + ----------------------------------------- + TOTAL 16,270 1,265 1,424 998 34,162 852 + + +In "The Review of the River Plate" the growth of British-owned Railways +is given as follows:-- + + Kilometres. + 1864 25 + 1874 860 + 1884 1,748 + 1894 10,785 + 1904 15,315 + +For the total kilometrage of the year 1904 the same authority gives +18,412 kilometres, a considerable discrepancy from the official figures. +Of the two authorities the government statistics are generally regarded +as the less trustworthy. But whatever the true figures may be, the +proportion owned by British interests will not be lessened by the total +of the more optimistic estimate, which is based largely on unrealised +concessions. And in any case, the economic point to be emphasised is not +weakened, namely the overwhelming preponderance of British influence in +this direction. Moreover, not only has this influence been increasing +relatively to that of competitors, but, absolutely, the increase is +exceedingly great. + +We have, then, in this department of industry a market for goods of +proportions that quite exceed those of any other in the country, the +greatest impetus to its development being given by the admission +into the country of all railway material duty-free. In any estimate +therefore, of the true position of any country's trade, this privileged +demand must be considered. And in estimating future conditions, the +tendency noted in the chapter on railways must be borne in mind, viz., +the tendency to discourage the continuance of the quasi-monopoly of +one country. + +Turning next to the immigration returns, the predominating position +held by the Latin races, and, especially, of the Italian, is at once +apparent. Although in many cases the special requirements of these +people can only be satisfied by the goods produced in their own several +countries, the greater part of the demand for imported goods is for +clothing, and, in the case of the country portion, for agricultural +materials. In both these departments the market is open. On the other +hand, while the greatest attention seems to have been paid to this +market by foreign merchants, the wants of the inhabitants of British +and other Northern extraction living in the far South have not been +studied at all. In this context the following extract from a recent +consular report is of interest. Writing from Puerto Gallegos in +Patagonia the Acting Consular Agent declares:-- + +"German and French exporters are gradually securing the best part of the +trade in consequence of the greater attention shewn by them to the large +importing houses in Gallegos. It is said that the merchant prefers to +order British goods to suit the taste of their farmer clients but so +little attention is shewn to them by the British exporters that they +are obliged to place their orders on the Continent. Many British +firms refuse to attend to orders in Spanish, and their catalogues and +price-lists are almost invariably printed in English." + +From the same report comes a remark of the Vice-Consul at Bahia Blanca +emphasising the energy with which the Hamburg South American Company +fosters the coasting trade. The Pacific Steam Navigating boats pass to +and from the West Coast, but the local trade is scarcely touched by +them. Although a German line does not imply nothing but German trade, +the tendency must, of necessity, be in its favour. + +The question of the nature of demand cannot be over-emphasised. It is +owing to neglect of this that the greatest mistakes are made both in +practice and in argument. Up to 1880 the nation's demands were those of +any immature nation. Subsequently to that date the country began to boom +and the whole economic condition was altered. Whereas previous to that +date the market was for articles for private use, whether domestic, +agricultural, or personal, subsequent to the national awakening private +needs became insignificant compared with those of public bodies. Not +only was the construction of railways commenced in earnest but national +and municipal contracts were issued broadcast. Harbours, sewage and +water-works, lighting, tramways, and every other form of public +enterprise, were initiated from that time onward. But, whereas the +earlier works were largely executed by English firms, of recent +years foreign (in particular Belgian) contractors have secured the +concessions. The methods employed by the latter, however, have been such +as rather to disgust the country with its experiment. The case which +has been causing intense excitement is that of the Rosario Port-works. +The French _concessionnaires_ made a bad job there of a difficult +undertaking. That, however, was little compared with the terms which by +some means they managed to insert into their concession, terms by virtue +of which they were enabled to make the most extraordinary exactions from +everyone who entered the port, regardless of the fact that many of the +wharves were the property of other concerns. On the other hand, the +English firm that constructed the Rosario sewage system, and constructed +it with the greatest thoroughness, were treated to a series of vexatious +interferences culminating in a refusal on the part of the municipality +to pay for the work. + +Besides the above mentioned work, ports have been constructed at Bahia +Blanca, La Plata, Buenos Aires, San Nicolas, Santa Fé, Paraná (not yet +completed) and other places, so that some two hundred million sterling +have been invested in works of public utility in a country with a +population at the present time of about five million inhabitants. Apart +from the importance of this development of public enterprises as regards +the nature of imports, its importance is obviously no less in the matter +of their extent. Adding to the capital of public undertakings the +capital employed in trade, the total of commercially invested money was +estimated at the end of 1904 at 326 million sterling; but, if national +provincial and municipal loans are taken into account, the grand total +of foreign capital in the country probably exceeds £450,000,000. This +immense influx of capital naturally caused imports greatly to exceed +exports, but the excess is not perhaps so large as might have been +expected, owing to the high tariff which probably increased the import +of bullion. + +Recently, since the investments have begun to give returns, the balance +of trade has turned, and, whereas in 1890 the sale of exports (in +dollars gold) was to that of imports as 100·82 millions to 142·24, in +1905 the former had risen to 322·84 millions, and the latter only to +205·15. Even then it is hardly credible that exported interest should +have equalled, much less exceeded, the new capital invested, and the +alternative of gold shipments must be admitted. + +We have then a rising tendency in the price of commodities, or a +depreciation of money (quite irrespective, of course, of the depreciation +of paper). The theory of rising prices is, as is well known a favourite +in the States. But in this, as in almost every other case, the +application of an economic theory is rendered very nearly impossible +owing to conflicting influences. + +To return once more to the details of Argentine trade, we found that +the predominating demand had been that of the railways, and that of the +railways by far the greater part is British. + +Apart from inclinations of sentiment or personal partiality, it is only +natural that engines and other material should be imported from England, +as being of a type to which English engineers are accustomed. A very +large proportion of our trade comes under this heading, and, it must be +admitted, the market here is not free. Even so, however, the superiority +or greater suitability--whether in material, construction, or price--of +foreign work in some directions has ousted the British product. For +example, in steel rails England's quota went down one thousand tons in +1905, while that of the States went up fifty-three thousand. So, too, +in such goods as axes and small tools the latter hold the market. On the +other hand, American locomotives have not proved a success--the English +system of running not being that for which they are designed. + +English engineers seem to prefer a solid, well-finished engine, which +can stand accidents, and innumerable repairs. The Baldwin engine is +cheap, but apparently of indifferent finish, and is built on a rigid +frame. The slightest accident to this incapacitates the whole machine, +and, in any case, the locomotive is built for hard use over a short +period, with subsequent scrapping. Neither the traffic nor the capital +of Argentine railways justify such a course. The actual figures of +imports of locomotives for 1905 are--United Kingdom 91, U.S.A. 16, +Belgium 9, Germany 46--increases of 27, 8, 7, and 22 respectively. +English engines are the most expensive. The German engines are largely +those employed in construction. In railway material (not specified) +although England exported to the value of $384,342 gold the increase +over 1904 was $703,548 gold, yet America with an export of only +$470,527, shows an increase of $411,876. Thus even in the privileged +domain of the railway market, there are signs of very keen competition +appearing. This may not prove effective for some time, the connection +between the home contractors and the London board being intimate, and +there is a danger of its possibility being overlooked. + +Another important demand is that for tramway material. In this it is +satisfactory to see that there is a favourable tendency in favour +of English goods. Previously, no doubt, the greater knowledge and +experience in the States enabled them to supply cars and material more +readily than in England, and the possession by Germany of the Buenos +Aires electric works favoured its exportation of the latter. But +recently some Preston cars have been put on the road which give the +greatest satisfaction. The increase in electric traction in England +ought to furnish the experience necessary for the successful development +of this branch of trade. + +In Agricultural machinery the market is absolutely open, and where there +is any opportunity, English firms have undoubtedly succeeded. It is +unreasonable to expect that we should be able to compete with the States +in sowing, reaping, ploughing, and similar machinery, provided as +they are with an experimental field with conditions similar to those +prevalent in the Argentine. But in traction engines the Lincoln firms +outstrip all their competitors. Rushton, Proctor and Co., Clayton and +Shuttleworth, Ransomes, Sims and Jefferies, are names that may be seen +all over the country. The genuine solidity of construction in their +engines, combined with adaptability to the country's requirements, has +for once overcome the overwhelming attraction of cheapness. Considerable +success has also attended their threshing machines, in spite of their +comparatively greater expense and of various other factors in favour of +American machines. + +The case of Agricultural implements is curious. While in axes the +United States have increased their already large export, though under +the heading of spades, picks, &c., their export of 680 tons in 1905 is +8 tons greater than in 1904, the value is £1900 less, while the English +590 tons is 167.5 tons more than in the previous year with an increase +in value of £8080. + +In cotton goods there is again a natural monopoly--the preponderating +Italian influence among the working classes encouraging the trade with +that country in the special line of goods which appeals to them. + +But perhaps the most important factor in international trade is the +nationality of the importers. In 1823 nearly all the merchants in Buenos +Aires were Scotch, and the preponderance of British houses continued +until recent years. Then, however, for various reasons--the development, +perhaps, of the wool trade on the Continent and the allurements of +finance, owing to which many British merchants invested in land and +other enterprises, in preference to the less congenial uncertainties of +trade--a large number of foreign, especially German, houses appeared, +turning the current of trade more in the direction of that country. +Whatever the reasons may have been, at the present moment Germany +is firmly established in the country, and its trade is continually +increasing. It must be added, that although German firms have a natural +preference for dealing with their own country, they are always ready +to do business with English houses provided that the latter make it +profitable for them to do so. + +It will be convenient to deal here with the complaints made by importers +in the Argentine, of English exporters, and the faults that the latter +have to find with the conditions of trade in that country. + +Briefly, the chief complaint made of the English manufacturer and +merchant is lack of adaptability--the well-worn objection that appears +in every Consular report, and is repeated even by tradesmen in this +country. The ways in which he shows his stubbornness may seem trifling, +but their importance is sufficiently great in practice. Price-lists +published solely in English, with those measures and prices which are a +continual nightmare to the foreigner, get-up packing that do not quite +meet local taste, all these are apparently trivial, but they affect the +balance of trade nevertheless. + +In cutlery, English goods have been entirely ousted from the popular +market. The large British population in the country, however, as well as +the wealthier Argentines themselves, who as a rule are extremely partial +to English goods, from socks to agricultural machinery, still insist +on Sheffield blades, which in the best shops are often the only ones +procurable. But the popular demand is for a cheaper article, often +manufactured in the country. This the English manufacturer has +consistently refused to supply, his reasons being, firstly, that he does +not make it, and secondly, that if he did, it would ruin his reputation +for good work. The plan adopted abroad of not fixing the maker's name to +an inferior article would safeguard the reputation which the English +producer undoubtedly does possess. In this connection it is a strange +anomaly that the impression still holds good in England, and seems to +prevail even in other countries, that German goods are of inferior +quality. This erroneous idea does not, of course, apply to such things +as armour plates and machinery. But in the popular mind the impression +created by toys "made in Germany" has spread to all small articles +emanating from that country. If the work of any country deserves this +stigma it is that of America. The undeniable ingenuity and neatness +of American products is, unfortunately, very often combined with bad +workmanship. In Argentine, according to some authorities, disappointed +buyers of American goods are returning to more solid work. Undoubtedly +the field for cheap goods is favourable in that country, the moneyless +colonists being compelled to buy them irrespective of quality. Besides, +there is a delight, to which the Italian is peculiarly susceptible, in +always having something new. A bright and new thing pleases most people +more than a solid article many years old. And in many directions the +yearly improvements and inventions soon reduce the latter to a position +of economic inferiority. + +Turning to the exporters' complaints, there are two which must be +admitted reasonable. In the first place, the economic conditions of the +country as well as the inclinations of the people require exaggerated +credit. + +Nothing, apparently, will alter this, and the merchant who refuses to +take business on these terms must expect to lose it altogether. The +other is one that is capable of removal. The English merchant frequently +complains that he cannot come into touch with his ultimate customers. +The taxes levied on commercial travellers are exorbitant, each province +vying with the other in preventing their entrance. From this it follows +that few firms can afford to send representatives further afield than +Buenos Aires or Rosario, and practically all business is conducted +through the larger importing houses of the capital. This is an +absolutely prohibitive system that is bound to have the most disastrous +effects on the expansion of trade. The intention is no doubt protective. +But in a country that is naturally incapable of any industrial +development, the policy cannot be considered as anything but unwise. + +As regards the travellers sent out by English firms, they are often +inadequately equipped for the work they have to perform. Knowledge of +the language, coupled with knowledge of the article whose sale they have +come to promote, and an ability to quote credit terms offhand in terms +of dollars and kilos, are important. Too much reliance is often +placed on written matter which a busy merchant has no time to read. +A descriptive pamphlet or book is an extremely valuable adjunct to an +obvious price list and an intelligent traveller. But by itself it is of +little value. + +A further point, and one of some importance, is that Argentines expect +immediate delivery of orders. Recently a large English motor car firm +opened an agency in Buenos Aires. The cars were much admired, and as +they were well boomed at an opportune moment, a great many orders were +secured. Owing, however, to considerable delay in delivery, these were +withdrawn, and the orders were transferred to French firms. + +Finally, a word must be said of proprietary articles. In these no fault +can be found with British manufacturers. Soap, lime juice, whisky, +mustard, jam, and even soda water and ginger beer, are among the special +products that may be seen almost anywhere throughout the country, +and this branch of trade is capable of even greater development with +judicious advertising. In particular, jam is invariably liked by +Argentines of all classes, and were it pushed a very large consumption +might follow. At present there is only one firm of any note whose +products are seen in the shops. The same may be said of biscuits, +although both in this and in the former case, the high tariff (about +50% to 60% of the value) would be a great restriction. + + + + +CHAPTER VII. + +THE TARIFF. + + +Argentina is professedly a protectionist country. It is also professedly +Republican, with a philosophic ideal of the greatest good of the +greatest number. The two ideas, however, have not achieved a complete +harmony. This was perhaps inevitable. Curiously enough, the vital +industries of the country have not been favoured in any way by the +fiscal system, which has been used to foster exotics and economic +growths hardly suited to the conditions of the country. + +In the Argentine there can be no question of "Back to the Land"; there +has never been any departure. But until the present chief of the +Department of Commerce began his campaign for a rational tariff, there +seems to have been a tacit assumption that factories constituted wealth. +That the country should remain permanently agricultural was never +advised. It was assumed that it must manufacture, and on this assumption +the national policy was directed. As a matter of fact, there was +probably no reasoned determination at all. Some industries existed +originally before communication was established on the present great +scale with the rest of the world. As time went on these suffered from +outside competition, and protection was invoked and secured. Other +industries were then started speculatively and for them similar +protection was granted. If prevailing opinion is of any value, it was +even impossible for an industry to succeed except by political jobbery. +Even now the evil appears to be very far from removed, and the +difficulties experienced by the English Railway companies are partly +attributable to this cause. These have consistently refused to bribe, +and it may be said that almost without exception they have adhered +to this rule. The nearest approach to this form of persuasion is the +nomination of influential Argentines to the local board of the company, +and the retention of prominent lawyers for nominal services at a fixed +yearly fee. Except for this no attempt is made to secure support in +congress, and in all probability no payment has ever been made or +promised by an English company in return for particular support for +a definite proposal. The great privileges which the railways enjoy, +especially in the matter of tariff, were granted in pursuit of a +declared policy of encouragement to railway enterprise--a policy which +no one there has reason to regret, as without it the country would +never have emerged from its former lethargy. + +With the exception of railway material, which for the most part, comes +in duty free, all manufactured articles pay a very heavy duty indeed. +But, whereas in almost every other country of note, some portion at +least of the raw material is procurable locally, or at least from no +great distance, in the Argentine the most elementary of basic materials +have to be imported. With the exception of wool, grain, cattle, a +special quality of timber, and sugar, there are no raw materials at all +available for industrial purposes. There are no minerals; cotton is a +negligible quantity at present; and fuel is as expensive as labour. Coal +does not exist (at least to a workable extent, if at all); petroleum, +though reported in parts of the Cordillera, is non-existent for all +practical purposes; while wood is found in any quantity only in the +forests in the North, North East, in Entre Rios, and in parts of Córdoba +and San Luis. The expense of carrying this to the capital would be +prohibitive except by boat from the riverine forests. And, in any case, +the wood being slow-growing and intensely hard, it would be manifestly +uneconomical to use anything but the trimmings as firewood. + +We have, then, a country with a highly protective tariff compelled to +import by far the greater part of its fuel, which, though admitted +free, is necessarily burdened with freights prohibitive to economic +industrial development. The Argentine, indeed, may be said to be placed, +geographically, in the worst position possible for such a purpose. +Keeping, then, the question of fuel in mind, the possible advantage +(from the purely economic point of view) must be examined of reducing at +home to the state of finished commodities the raw materials mentioned +above. + +In every case of manufacture, the two obvious economic reasons are +either the ability to produce better or the ability to produce cheaper. +The former is out of the question in the Argentine, because there is no +hereditary or traditional skill, nor special climatic conditions as in +Manchester; the latter, for the same reason, can only be a question of +freight. Any article to be consumed at home, and produced mainly from +native raw material should, _prima facie_, be capable of production at +home for that consumption, granted an adequate supply of labour. But, +for export, general conditions being at best only equal to those in +the importing countries, the only circumstances which could render +home-manufacture profitable would be greater liability to deterioration +in transit in the raw material than in the finished article, or a great +saving in bulk or weight in the latter. + +Taking the raw materials, therefore, in the order given above, the wool +produced or procurable in Argentina is greatly in excess of the present +local requirements. What skill there is in the country for spinning +and weaving is insignificant for practical purposes, the articles +produced being either extremely crude, or quite exceptionally +fine, and consequently expensive. Both are the work of Indians, or +half-castes--who are rapidly becoming a smaller and smaller proportion +of the total population. Passing by as inconsiderable, therefore, the +advantage of home production on the score of special skill, there +remains the question of cheapness. For some goods, special lines of +purely local popularity, which European houses would not make for other +customers, there are points in favour of local production. But in +such things as socks and articles of general clothing, that command a +universal market (with differences only in design), it is found cheaper +to import. It must be added that there is comparatively little demand +for woollen goods at all in the Argentine itself. Though the tariff, +therefore, does not impose a great burden on the people, from its +protective aspect it is encouraging an unprofitable industry. + +The duties are as follows: On spun wool about 1½d. per lb., valued at +about 7d. per lb., on washed wool 1s. 7d. per lb., the customs valuation +being 7d.; on stockings and socks (all classes) about 50%, on woollen +cloth (pure) about 40%, and on wool and cotton mixed, over 30%. + +Passing over grain, the main manufactured product of which, flour, is +not imported at all, and cattle, which in the frozen meat trade and its +attendant industries form one of the main items of export, there are +left wood and sugar. Of the former, the country produces little for +constructional and industrial purposes, all the natural timber being +employed either for railway sleepers, fencing posts, or for tanning +extract. It is an extremely important business, but there could be no +question of importation, except for intermediate fencing bars (those not +planted in the ground) and for sleepers. Even so the only circumstances +which could render it possible are the inability of the home supply to +cope with the demand, and the consequent rise in price. Recently poplar +has been planted on the islands of the Tigre near the mouth of the +Paraná with great success. But the available space is limited there, +though it is quite possible that planting might be continued on +the Paraná and Uruguay rivers. The duty on imported soft woods is +comparatively small. + +The one article of home-production left, which was open to foreign +competition, is sugar. The erratic development of this industry in +conjunction with the tariff has been so eventful, and so instructive +from the economic point of view, that a rather lengthy review may be +pardoned. This is practically a paraphrase and condensation of the +extremely interesting, though, at times, somewhat exclamatory article +written by M. Ricardo Pillado, the head of the Division of Commerce +in the Argentine Ministry of Agriculture, 1906. Unfortunately, in +attempting to follow some of the author's calculations it has been found +quite impossible to verify his results or to see how he arrived at them. +In some cases the figures are so obviously impossible in the light of +the data that the only explanation seems to be a misprint. In order not +to sacrifice the continuity of his account, these figures have been +given as they stand. The fact that the article in question appears in a +collection, derived from various sources, and republished officially at +the Ministry of Agriculture, seemed to give additional justification for +its presentation here without emendation. + +Writing at end of 1903, when the Brussels Convention had just condemned +Bounties, and when the original heavy import duties and export drawbacks +were still in force, he makes this preface to a general discussion of +the whole working of the exaggerated protection of the Sugar Industry. + +"The fiscal protection of the Sugar industry, instituted in the year +1883, and maintained up to the present moment in all its intensity, +has been the source of the gravest evils to the Republic, not merely +through its immediate effect and its having admitted and secured the +maintenance of an economic system so detrimental to the country, but +also, in the sphere of credit, through the complications of which it +has been the indirect cause. Every effort, therefore, tending to destroy +to their very foundations the fallacies which have been the mainspring +and origin of its birth and continuance up to the present day ought to +be considered, in my opinion, as an act of patriotism and duty." + +M. Pillado is far from being a free-trader in the accepted English +sense. "The protection which reasonably may be and, I will even say, +ought to be afforded to national industries cannot," he goes on to +say, "be identified with the favours which were lavished on the +sugar industry." Although he is in favour of a moderate and strictly +protective Tariff, he cannot reconcile the prevailing system with any +economic theory whatever. + +The Sugar plantations and refineries are situated in the remote North +West of the country, and the latter were practically in the hands of +two powerful concerns. Owing to the expense of rail transport, under no +circumstances could the sugar be transported to the coast to compete on +equal terms with the imported ocean-borne article, and certainly not, +with the additional freight, in European markets. + +The initial error lay in the assumption that these Northern Districts +round Tucuman were especially adapted by climate and other conditions to +the cultivation of cane. No such natural privilege exists. The origin of +the industry, on the contrary, is to be found in that very distance from +a port which renders its present condition anomalous. Sugar-cultivation +was instituted solely with a view to the satisfaction of local +requirements, and the idea of competition with foreign produce in the +capital was probably never dreamed of. This view is the more probable +when it is remembered that Tucuman lies nearly a thousand miles +from Buenos Aires, while railway communication was not established +until 1888 or even later. + +At that time, however, protection was already in full force. Although +full communication was not established until 1892, and till then goods +had to be transported by cartage, or whatever means the state of the +roads (such as they were) permitted, so early as 1883 the duty was +raised from the existing rate of 25% _ad volorem_, to a specific tax of +5 cents per kilo, at a time when there was only one currency. The impost +being irrespective of quality, the actual burdens resulted as follows: +On refined Sugar valued by the customs at 19 c. the kilo, 26½%; on white +or granulated with a valuation of 14 c., 35¾%, on raw of 11½ c. per +kilo, 43½%. It is obvious says the writer, that the greatest burden fell +on the lower grades, the only ones which the local refineries were in a +position to produce and to offer in competition with imported sugars. + +The year 1885 marked the next stage in the development. Owing to +facilities of transport being absent, Tucuman was in no better position +than before, while the issue in the same year of the decree authorising +a paper currency with the consequent premium upon gold, resulted in a +natural increase in the restrictions on importation. The increase in the +duty was nominally from 5 to 7 c. per kilo irrespective of quality. But +the actual increase resulted in a total of 90% on refined sugar and 108% +on the lower grades. + +The third increase took place three years later, in 1888, when the +import charge was raised to 9 c. gold per kilo on refined sugar, other +qualities being taxed at the old figure. On M. Pillado's estimate this +meant a difference of 268% between the cost of that sugar in bond and +its price to the importer.[7] + + [7] The percentage seems to work out at 219, while the premium + on gold in that year (1888), as given in another official + publication of 1906, was in reality 150 roughly, which would + mean 184%. But the absence of reliable data makes an amateur + result untrustworthy. + +The foregoing is a brief account of the course of taxation introduced +for purposes of protection as described by M. Pillado. At this point he +takes occasion to moralise on the iniquity of the system, and exclaims +that it is a matter of congratulation that the promoters of the industry +did not think fit to produce even further from the great centres, +somewhere on the borders of Bolivia. In emphasising these existing +burdens, however, the writer is merely making a dramatic pause +preparatory to enlarging on the further excess in the institution of +bounties on export. + +The immediate result of this tariff was naturally an immense rise in +the price of all sugar, and subsequently the practical exclusion of the +imported article. The figures cited in the work speak for themselves. In +1884 the total imports of sugar of all classes were 35,000 tons. In 1902 +they had fallen to 155 tons. While the next year saw an importation of +some hundred tons of refined sugar, the other grades were represented by +a total of about 300 lbs. + +We now come to the real interest of the question--the effect namely +which this policy had upon the industry itself and the devices which +the latter adopted to regulate prices. + +In the first instance an unparalleled boom took place. In 1884 the +production was 75,000 tons. In 1895 it was 109,000. In the following +year the sum of 134,417 tons was reached--a production quite in excess +of the country's requirements. The result was that in the words of +M. Pillado, "the refiners began to cry to heaven and to earth for any +solution whatever to rescue them from the asphyxiation which threatened +to overwhelm at one and the same time themselves and their system." + +For the planters, however, Tucuman had become a veritable Eldorado. Two +years sufficed to give a net return four times as great as the capital +invested. As a natural consequence it followed that labour and capital +flowed into the Sugar districts, creating an unprecedented boom and +denuding the other agricultural industries not only of the province +but of the rest of the republic as well of their very necessities of +existence. The effect was felt, apparently even in the capital, so +that "lawyers deserted their profession, workmen their tools, to throw +themselves with a regular fever into an occupation so full of promise." +Works sprang up as if by magic. Palaces were constructed to house the +staffs. Capital was lavished on the industry by individuals and banking +houses alike. No one, in short, took the slightest pains to investigate +the stability of the trade, and investments were made with complete +recklessness. + +While fortunes were being created in the cultivation of sugar cane, +orchards, orange-groves, pasturage, arable land--everything else, in +short--were being either transformed or neglected, and the public +generally was compelled to pay an exorbitant price for its sugar. The +moment had, therefore, arrived for a reduction in the import duties, +and in the price of the article. That, however, was not the view of the +interested parties. "If," they said, "by any misfortune this year's +harvest should prove so good as the last" a worse evil would befall. +Considering that private mortgages amounted to some five million +dollars and that the total indebtedness of the industry, in spite of +its abnormal prosperity, was no less than twenty million, the gravity of +the situation was not exaggerated. A bad harvest would be insufficient +to satisfy the claims of creditors. A good harvest would cause a +tremendous fall in prices and consequent disaster. + +It is not surprising that there was formed in 1895 the "Union +Azucavera," or Sugar Trust, with the avowed object of taking over +the entire production of all the refineries and determining prices +for home consumption and export. + +Unfortunately, however, for the success of the venture, some concerns +were not in the precarious state to which the majority had been reduced. +By dint of better management and through other causes they still +succeeded in maintaining substantial returns. These refused to enter +the Trust--or Kartel more strictly--and the result was a more or less +complete failure. + +Two combines were instituted, nevertheless, the above mentioned +"Union" (in a modified form, no doubt) and a body known as the "Centro +Azucarevo." These concerns devoted themselves with energy to the +solution of the problem of the surplus, and, as was to be expected, the +easiest seemed to be that supplied by political means, the president +of the "Union" being also president of the Chamber of Deputies. So +successful were their efforts that in 1897 a bounty of 12 c. per kilo +was sanctioned, raised for the next year to 16 c. To pay for this bounty +an Inland Revenue tax of six cents paper per kilo was declared on all +sugar home or imported. As in countries nearer home, the bounty system +was an attempt, a costly attempt, to market a commodity which in normal +circumstances was absolutely incapable of meeting its competitors. +Argentine sugar under the most favourable conditions could not, and +never was expected to, compete in the open market with that of other +countries. In the circumstances it must be admitted that the whole +scheme was merely an organised exploitation of the public in the +interests of a weak industry and certain speculative financiers. "What +public interests," exclaims Mr. Pillado, "what benefit for the community +could be cited to warrant a contribution from the country at large of +$40,000,000 in five years as a gift to the exporters of sugar?" + +Of the $39,850,000 levied, $25,250,000 were given as a free gift to the +exporters, only $14,600,000 finding their way into the exchequer. + + + + +Statistical Appendix. + + +IMPORTS, UNDER PRINCIPAL HEADS--VALUE IN $1000 GOLD. + + 1890. 1895. 1900. 1905. + Live-stock 400 611 364 1,307 + Food stuffs + Animal foods } 984 1,755 2,242 + Vegetable foods and fruits } 539 633 960 + Spices and condiments } 1,053 590 866 + Legumes and cereals } 1,607 1,701 2,556 + Substances for infusions and } 16,411 + hot beverages } 5,801 5,335 6,093 + Flour, macaroni, fancy breads, } + fecula } 428 436 820 + Tobacco and applications 2,554 2,293 3,147 4,455 + Drinks--Wines } 7,304 5,637 6,596 + Spirits and liquors } 12,990 1,301 1,284 2,159 + Sundries } 211 356 411 + Textiles, raw and manufactured + Silk } 1,254 2,485 2,602 + Wool } 7,650 7,141 10,967 + Cotton } 30,024 20,309 19,536 27,066 + Sundries } 8,238 8,433 5,582 + Oils--Vegetable, mineral, etc. -- 3,193 4,194 5,556 + Chemical, medicinal, and pharmaceutical + substances and products } 3,875 2,429 3,760 6,275 + Paints and dyes -- 789 865 1,441 + Timber: In bulk } 3,295 5,500 11,799 + Wrought } 7,399 739 1,540 2,368 + Paper and applications + Paper and pasteboard } 1,335 1,924 2,272 + Applications } 3,628 678 1,001 1,861 + Leather and applications 1,704 641 1,244 1,796 + Iron and applications + Raw material } 5,696 9,088 14,814 + Machinery and agricultural } 48,109 + implements } 1,202 1,861 -- + Iron and steel manufactures } 4,701 8,104 11,357 + Agriculture -- -- -- 16,532 + Locomotion and Conveyances -- -- -- 23,362 + Other metals + Unwrought -- 594 1,262 1,896 + Manufactured -- 846 2,080 3,998 + Stone, clay, glass + Raw material } 6,375 7,120 14,355 + Manufactured } 10,385 1,102 1,772 3,111 + Electrical supplies -- -- -- 2,034 + Sundry articles and manufactures 4,955 1,881 3,321 5,428 + ------- ------ ------- ------ + Totals 142,402 95,096 113,485 205,154 + + +EXPORTS, UNDER PRINCIPAL HEADS--VALUE IN $1000 GOLD. + + 1890. 1895. 1900. 1905. + Live-stock products } 74,620 71,253 141,042 + Live-stock } 9,052 5,942 7,189 + Meat, hides, wool, etc. } 61,306 60,352 61,084 122,026 + Manufactured animal products } 4,367 3,568 10,148 + By-products } 857 659 1,642 + + Agricultural products } 41,448 77,426 170,235 + Raw material } 39,085 73,045 161,188 + Manufactured products } 34,590 1,960 2,952 5,584 + By-products } 402 1,428 3,462 + + Woodland products 1,413 2,161 3,508 7,125 + Products of the chase 346 272 990 790 + Mineral products 673 338 262 261 + Other products and sundries 2,488 1,316 1,158 3,388 + ------- ------- ------- ------- + Totals 100,818 120,067 154,600 322,843 + + +EXPORTS OF FROZEN MEAT AND JERKED BEEF. + + Other frozen and + Preserved Meat + JERKED BEEF. FROZEN BEEF. FROZEN MUTTON. and Tongues. + Value Value Value Value + Years. Tons. $1000 Tons. $1000 Tons. $1000 Tons. $1000 + gold. gold. gold. gold. + 1896 45,907 3,217 2,997 119 45,105 1,804 3,288 356 + 1897 36,238 2,466 4,241 169 50,894 2,035 2,414 255 + 1898 22,242 2,116 5,867 234 50,833 2,393 3,154 313 + 1899 19,164 2,038 9,079 950 56,627 2,265 3,322 334 + 1900 16,449 1,979 24,590 2,458 56,412 4,512 3,175 415 + 1901 24,296 2,879 44,904 4,490 63,013 5,041 3,047 391 + 1902 22,304 2,647 70,018 7,001 80,073 6,405 4,729 496 + 1903 12,991 1,542 85,520 8,151 78,149 6,251 7,354 720 + 1904 11,726 1,391 97,744 9,774 88,816 7,089 7,249 704 + 1905 25,288 3,738 152,857 15,285 78,351 6,268 8,488 760 + + +EXPORTS OF CATTLE, SKINS, AND WOOL. + + CATTLE. SHEEPSKINS. + Value 1000 Value + Years. 1000's. $1000 gold. Tons. $1000 gold. + 1896 382 6,543 36 4,061 + 1897 238 5,018 37 4,094 + 1898 359 7,690 42 6,194 + 1899 312 6,824 41 9,308 + 1900 150 3,678 37 7,472 + 1901 119 1,980 41 7,339 + 1902 118 2,848 41 8,487 + 1903 181 4,437 41 10,132 + 1904 129 2,852 37 8,676 + 1905 262 5,160 30 9,483 + + SALTED CATTLE DRY CATTLE + WOOL. HIDES. HIDES. + 1000 Value 1000 Value 1000 Value + Years. tons. $1000 gold. tons. $1000 gold. tons. $1000 gold. + 1896 187 33,516 29 4,598 21 6,600 + 1897 205 37,450 27 4,605 29 8,596 + 1898 221 45,534 29 5,171 23 6,887 + 1899 237 71,283 28 5,334 23 8,001 + 1900 101 27,991 26 5,285 24 8,159 + 1901 228 44,666 28 5,281 26 8,848 + 1902 197 45,810 35 6,384 26 8,822 + 1903 192 50,424 28 5,360 23 7,787 + 1904 168 48,355 29 5,267 22 8,256 + 1905 191 64,312 49 9,147 24 9,929 + + +EXPORTS OF WHEAT, MAIZE, AND LINSEED. + + WHEAT. MAIZE. LINSEED. + 1000 Value 1000 Value 1000 Value + Years. tons. $1000 gold. tons. $1000 gold. tons. $1000 gold. + 1896 523 12,830 1,570 15,594 229 6,856 + 1897 101 3,470 374 5,478 162 4,996 + 1898 645 22,368 717 9,274 158 5,420 + 1899 1,713 38,078 1,116 13,042 217 7,402 + 1900 1,929 48,627 713 11,933 223 10,674 + 1901 904 26,240 1,112 18,887 338 16,513 + 1902 644 18,584 1,192 22,994 340 17,840 + 1903 1,681 41,323 2,104 33,147 593 21,239 + 1904 2,303 66,947 2,469 44,391 880 28,359 + 1905 2,868 85,883 2,222 46,537 654 26,233 + + +THE DEVELOPMENT OF AGRICULTURAL INDUSTRY 1895-1905. + +CULTIVATED AREA IN THOUSAND HECTARES.[8] + + Other + Years. Wheat. Linseed. Maize. Hay. cultivations. Total. + 1895 2,049 387 1,244 713 497 4,892 + 1896 2,500 360 1,400 800 510 5,570 + 1897 2,600 350 1,000 900 522 5,372 + 1898 3,200 332 850 1,067 533 5,983 + 1899 3,250 355 1,009 1,268 545 6,427 + 1900 3,379 607 1,255 1,511 557 7,311 + 1901 3,296 782 1,405 1,631 567 7,683 + 1902 3,695 1,307 1,801 1,730 580 9,114 + 1903 4,320 1,487 2,100 2,172 606 10,685 + 1904 4,903 1,082 2,287 2,503 648 11,424 + 1905 5,675 1,022 2,717 2,983 682 13,081 + + [8] One hectare = 2·47114 acres. + + +THE CULTIVATED AREA IN THE YEARS 1895-1905 COMPARED. + + Census, Agricultural + 1895. Statistic, 1905. Increase. + Products. 1000 hectares. 1000 hectares. % + Wheat 2,049 5,675 176·9 + Linseed 387 1,022 164·0 + Maize 1,244 2,717 118·4 + Barley 54 58 7·7 + Hay 713 2,983 318·4 + Tobacco 15 19 22·7 + Sugar cane 61 65 7·3 + Vineyards 33 53 59·0 + Cotton 1 4 397·4 + Pea nut 13 29 119·0 + Potatoes 21 40 91·0 + Beans 20 24 18·3 + Vegetables } 39 } + Tapioca } 48 5 } 1·8 + Spurge } 3 } + ---- ---- + Rice } 3 } + Oats } 51 } + Common rye } 2 } + Canary-seed} 156 21 } 57·4 + Coffee } 0 } + Forests } 166 } + Fruits 71 87 21·9 + Sundries -- 3 -- + ----- ------ ----- + Total 4,892 13,081 167·4 + + + + +Index + + + A + + Agricultural implements: + Importation of English, 36 + United States, 36 + + Agricultural machinery: + English importation of, 36 + United States importation of, 36 + + Agriculture, Effects of undeveloped economic system on, 23, 24 + + 'Alfalfa,' Cultivation of, 2 + + Antilles, Trade with, 27 + + Axes and small tools, U.S. importation of, 34 + + + B + + Bahia Blanca, 33 + + Bahia Blanca, Docks at, 10 + + Banks, Employment in, 22 + + Belgium, Trade with, 27 + + Boer colony, 24 + + Bogus companies, 4 + + Bolivia, Trade with, 27 + + British houses, Decrease in the number of, 37 + + Breweries, 13 + + Buenos Aires, 1, 10, 33 + Congestion of port of, 9 + Province of, 4 + + Business Houses, Employment in, 22 + + Brazil, Trade with, 27, 28 + + British and Northern immigrants: their wants not studied, 31 + + British exporters, Slackness of, 32 + + + C + + Canals, 4 + + Capital, Influx of foreign, 33 + + Cereals, growth of, 2 + + Chaco district, 12 + + Chaco, The, 3 + + Chicken farming, 24 + + Chili, Trade with, 27 + + China, Trade with, 28 + + Chubut, Welsh colony in, 24 + + 'Colonists,' 2 + + Concentration of Trade in Buenos Aires, 1 + + Congress, Tone of, 7 + + Consular reports, Moreno, Dr. Francisco on, 25, 26 + + Córdoba, Province of, 3 + + Corrientes, 3 + + Cotton goods, Italian importation of, 36 + + Cotton growing, 3 + + Credit, exaggerated, 38 + + Credit, Soundness of National, 18 + + Cultivated area in Argentina, Amount of, 56 + + Cutlery, English loss of market for, 37 + + + D + + Drainage system, 4 + + + E + + 'Empresas,' The, 6 + + Englishmen, Prospects for, 20, 21, 22 + + Entre Rios, 3 + + Estancias, 2, 3 + + Estancias, employment on, 21 + + Estancieros, 2 + + Exports, Value of, 54, 55 + + + F + + Flour mills, 12 + + Foreign capital, Important part played by, 16 + + Foreign influences, Jealousy of, 7 + + France, Trade with, 27, 28 + + Fruit cultivation, 3 + + Fuel, Scarcity of, 42, 43 + + + G + + Gaucho, The, 12 + + Gauchos, 2 + + Gauges, Diversity of, on Argentine railways, 10 + + German houses, Increase in the number of, 37 + + Germany, Trade with, 27 + + Gold in the Argentine, Scarcity of, 4 + + Government management, character of, 7 + + Government, want of stability of, 17 + + + H + + Hard-woods, growth of, 3, 42, 44 + + Havana, Trade with, 28 + + Holland, Trade with, 27 + + Housing-accommodation, 14 + + + I + + Immediate delivery, Expectation of, 39 + + Immigrants, Attempts to attract, 20 + + Immigrants, Nationalities of, 28 + + Immigration of agriculturalists with capital needed, 2 + + Immigration, Preponderance of Latin races, 31 + + Importation, Tendency in the direction of increased, 12 + + Imports, Value of, 53 + + Inadequacy of rolling stock, 9 + + Interests, Rates of, 6 + + Inundations of the Argentine, 4 + + Italian immigrants, attempts to attract, 20 + Prospects for, 23 + Their employment in industries, 12, 13 + + Italy, Trade with, 27 + + + J + + Jobbery, Political, its necessity for success of any enterprise, 41, 42 + + + L + + Literature, Scarcity of, on the Argentine, 24 + + La Plata, 33 + + Loans, Argentine, easily raised, 18 + Their distribution, 19 + Their size, 19 + + Locusts, 3 + + + M + + Mar del Plata, 10 + + Matches, Manufacture of, a monopoly, 13, 15 + + Monopolies, Railway, Effect of, 8, 9 + + Morality, Public, low standard of, 16 + + Municipal loans, a speculative investment, 18 + + + N + + Non-partisans unmolested, 17 + + + P + + Paraná, 33 + + Paraguay, Trade with, 27 + + Paraná, River, 4 + + Peon, The, 12 + + Piedmontese and Basque 'colonists,' 2 + + Pillado, M., his disagreement with present economic policy, 46 + his estimate of amount of tax on sugar, 47 + of its effects on the sugar industry, 48, 49, 50 + + 'Ponchos,' Importation of, 13 + + Ports, Construction of, 33 + + Portugal, Trade with, 27 + + Precarious nature of business in the Argentine, Effect of, 1 + + Preference on colonial produce as affecting the Argentine, 19 + + Prices, Inflation of, in the Argentine, 1 + + Property, Division of, 3 + + Proprietary articles, British trade in, 39 + + Protective tariff, Origin of, 41 + + Public debt, Laxity of morality as regards, 17 + Its causes, 18 + + Public works, Demands of, 32 + Mistakes in connexion with, 33 + + + Q + + Quebracho trade, employment of Indian labour in the, 12 + + + R + + Railways, Dividends of, 6 + + Railways, Employment on, -- + + Railways, Growth of, 29 + Relative importance of, 30 + + Railways, Growth of British owned, 30, 31 + + Railway material, Importation of English, 34, 35 + United States, 34, 35 + + Railway system, 4 + + Raw material, Argentine naturally exclusively a producer of, 7 + + Raw materials, Scarcity of manufactures, 42 + + Rents, Rise of, in Buenos Aires, 1 + + Rivers, Absence of navigable, 4 + + + S + + Samborombon, Bay of, project of new port in, 10 + + San Nicolas, 33 + + Santa Fé, 33 + + Shoe-factories, canvas, 13 + + South Africa, Trade with, 27 + + Spain, Trade with, 27 + + Store-keepers, Power of the, 23 + + Strikes, 13, 14, 15 + Cause of frequency of, 15 + + Sugar industry, The, 3 + + Sugar, manufacture of, 45, 46, 47 + + Sugar Trust, The, 49, 50 + + + T + + Tariff, Effect of high protective, 3, 12 + + Timber, Production of, 44 + + Traction engines, Supremacy of Lincoln firms in, 36 + + Trade, British, losing of ground, 26 + + Trade, Difficulty of obtaining information about British, 25 + + Tramway material, Importation of English, 35 + United States, 35 + + Travellers, Exclusion of, 38, 39 + + Travellers, Inadequate equipment of English, 39 + + Tucuman, Centre of sugar manufacture, 46 + + + U + + Under-population of the Argentine, 2 + + United Kingdom, Trade with, 27, 28 + + United States, Trade with, 27, 28 + + Uruguay, River, 4, 10 + + Uruguay, Trade with, 27 + + + W + + Wealth, Natural, of the country, 11 + + Welsh Colony, 24 + + Wool manufacture, 43, 44 + + + * * * * * + + + Transcriber's Note: The following amendments were made to the text: + + Page Original Word(s) Amendment + ---- ---------------- --------- + 2 the the the + 4 Parana Paraná + 10 Parana Paraná + 23 accomodating accommodating + 23 monoply monopoly + 26 1896 1895 + 29 Commuuicacion Communicacion + 31 emphasiased emphasised + 33 Santo Santa + 34 that the that of the + 36 monoply monopoly + 41 industuries industries + 42 Cordoba Córdoba + 49 mortages mortgages + 49 sitnation situation + 60 Cordoba Córdoba + 62 Parana Paraná + 63 Santo Santa + + + + + +End of Project Gutenberg's The Argentine as a Market, by N. 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L. Watson + +This eBook is for the use of anyone anywhere at no cost and with +almost no restrictions whatsoever. You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: The Argentine as a Market + +Author: N. L. Watson + +Release Date: May 16, 2012 [EBook #39715] + +Language: English + +Character set encoding: UTF-8 + +*** START OF THIS PROJECT GUTENBERG EBOOK THE ARGENTINE AS A MARKET *** + + + + +Produced by Adrian Mastronardi, René Anderson Benitz, and +the Online Distributed Proofreading Team at +http://www.pgdp.net (This file was produced from images +generously made available by The Internet Archive/American +Libraries.) + + + + + + +</pre> + + +<div class="tn"> +<p><span class="smcap u">Transcriber’s Note</span>: +Obvious typos have been amended. Variations in spelling in the original +text have been retained, except where usage frequency was used to +determine the common spelling. These amendments are +<a href="#corrections" title=" Go to list. ">listed</a> at the end of the text. +Minor printer errors have been amended without note. Missing page numbers +are due to the removal of blank pages.</p> +</div> + +<p class="center"><br />PUBLICATIONS OF THE UNIVERSITY OF MANCHESTER<br /><br /></p> + +<p class="center">ECONOMIC SERIES—No. IX.</p> + +<p class="center">G<small>ARTSIDE</small> R<small>EPORTS ON</small> I<small>NDUSTRY AND</small> C<small>OMMERCE</small>. No. 6.<br /><br /></p> + +<p class="center lgfont"><i>The Argentine as a Market</i><br /><br /></p> + +<p class="center smfont">S<small>HERRATT</small> & H<small>UGHES</small><br /> +Publishers to the Victoria University of Manchester<br /> +Manchester: 34 Cross Street<br /> +London: 60 Chandos Street, W.C.<br /><br /></p> + +<!--[Blank Page]--> + +<div class="figcenter" style="width: 322px;"> +<a href="images/graph_lg.png"> +<img src="images/graph_sm.png" width="322" height="500" alt="(graph of +imports, exports, and population)" title=" Click to enlarge. " /></a> +<br /><br /></div> + +<h1>The Argentine as a Market<br /><br /><br /> +<span class="subhdg">A  REPORT</span><br /> +<span class="small"><i>To the Electors to the Gartside Scholarships on the Results of +a Tour in the Argentine in 1906-7</i></span><br /><br /> +<span class="tiny">BY</span><br /> +<span class="author">N. L. WATSON, B.A.</span><br /> +<span class="small"><i>Gartside Scholar</i></span></h1> + +<p class="center"><b>MANCHESTER<br /> +A<small>T THE</small> U<small>NIVERSITY</small> P<small>RESS</small><br /> +1908</b><br /><br /><br /></p> + +<p class="center smfont">U<small>NIVERSITY OF</small> M<small>ANCHESTER</small> P<small>UBLICATIONS</small> +<br />No. XXXIII.<br /><br /><br /></p> + +<hr class="hr45" /> +<p class="center">THE GARTSIDE REPORTS.</p> + +<p><span class="smcap">The</span> Gartside Reports are the reports made by the +Gartside Scholars at the University of Manchester. The +Gartside Scholarships were established in 1902 for a +limited period, by John Henry Gartside, Esq., of +Manchester. They are tenable for two years and about +three are awarded each year. They are open to males +of British nationality who at the date of the election +shall be over the age of eighteen years and under the age +of twenty-three years.</p> + +<p>Every scholar must enter the University of Manchester +for one Session for a course of study approved by the +electors. The remainder of the time covered by the +Scholarship must be devoted to the examination of +subjects bearing upon Commerce or Industry in Germany +or Switzerland, or in the United States of America, or +partly in one of the above-mentioned countries and partly +in others, but the electors may on special grounds allow +part of this period of the tenure of the Scholarship to be +spent in study and travel in some other country or +countries. It is intended that each scholar shall select +some industry, or part of an industry, or some business, +for examination, and investigate this comparatively in +the United Kingdom and abroad. The first year’s work +at the University of Manchester is designed to prepare +the student for this investigation, and it partly takes the +form of directed study, from publications and by direct +investigation, of English conditions with regard to the +industrial or commercial subjects upon which research +will be made abroad in the second year of the scholarship. +Finally, each scholar must present a report, which will +as a rule be published.</p> + +<p>The value of a Scholarship is about £80 a year for the +time spent in England, £150 a year for time spent on +the Continent of Europe, and about £250 a year for +time spent in America.</p> + +<hr class="hr45" /> +<p class="center">EDITOR’S NOTE.</p> + +<p><span class="smcap">Mr. N. L. Watson</span>’s sudden departure to fill a commercial +position in the East has prevented him from +seeing this Report through the press himself.</p> + +<hr class="hr65" /> + +<div class="center"> +<table id="toc" cellspacing="0" summary="Table of Contents"> +<caption class="lgfont">TABLE OF CONTENTS.</caption> +<tr> + <td colspan="4" class="col4 smfont">PAGE.</td> +</tr> +<tr> + <td class="col1">Chapter</td> + <td class="col2">I.</td> + <td class="col3"><a href="#CHAPTER_I">The Economic Basis of the Argentine</a></td> + <td class="col4">1</td> +</tr> +<tr> + <td class="col1">"</td> + <td class="col2">II.</td> + <td class="col3"><a href="#CHAPTER_II">The Railways</a></td> + <td class="col4">6</td> +</tr> +<tr> + <td class="col1">"</td> + <td class="col2">III.</td> + <td class="col3"><a href="#CHAPTER_III">Industries and the Labour Question</a></td> + <td class="col4">12</td> +</tr> +<tr> + <td class="col1">"</td> + <td class="col2">IV.</td> + <td class="col3"><a href="#CHAPTER_IV">Foreign Capital and Public Debt</a></td> + <td class="col4">16</td> +</tr> +<tr> + <td class="col1">"</td> + <td class="col2">V.</td> + <td class="col3"><a href="#CHAPTER_V">Argentina from the Immigrant’s Standpoint</a></td> + <td class="col4">20</td> +</tr> +<tr> + <td class="col1">"</td> + <td class="col2">VI.</td> + <td class="col3"><a href="#CHAPTER_VI">English Trade. Its Position and Prospects</a></td> + <td class="col4">25</td> +</tr> +<tr> + <td class="col1">"</td> + <td class="col2">VII.</td> + <td class="col3"><a href="#CHAPTER_VII">The Tariff</a></td> + <td class="col4">41</td> +</tr> +<tr> + <td colspan="3" class="col3"><a href="#Statistical_Appendix">Statistical Appendix</a></td> + <td class="col4">53</td> +</tr> +</table> +</div> + +<!--[Blank Page]--> +<hr class="hr65" /> + +<h2><span class='pagenum'><a name="Page_1" id="Page_1">- 1 -</a></span> +<a name="CHAPTER_I" id="CHAPTER_I">CHAPTER I.</a><br /><br /> +<span class="ltrspc">THE ECONOMIC BASIS OF THE ARGENTINE.</span></h2> + +<p><span class="smcap">The</span> first thing that strikes the new arrival in the +Argentine, and the last thing that he is likely to forget +when he leaves the country, is the extraordinary inflation +of prices. With the exception of meat, and perhaps +bread, there is no article of common consumption which +does not cost considerably more than in England, every +allowance being made for freight and tariff charges. +The reason for this excess is doubtless to be found in the +concentration of trade in the capital. All imports, for +reasons that will be dealt with later, pass through the +hands of the large houses in Buenos Aires, who act as +sole agents for the whole of the Republic north of the +Rio Negro. [While, owing to the precarious nature of +all business, dependent entirely on the grain and cattle +yield, much higher prices are charged in fat years than +would be justified if these times of prosperity were +regarded as permanent.] Because of this concentration +of business in the capital, and in the centre of the town +in particular, rents have risen to an immense extent, +greatly increasing all establishment charges, and in turn +the price of commodities sold—a cause which acts again +of course in retail trade and neutralises the freight charges +to outlying districts. But the essential fact in Argentine +Economics, and one which seems more than obvious, +but apparently escapes the comprehension of Argentine +legislators, is that the country is naturally, and must +remain for some considerable time, a producer of raw +material exclusively. The country is still considerably<span class='pagenum'><a name="Page_2" id="Page_2">- 2 -</a></span> +under-populated for the development of its natural +resources, while only a small portion of the settled area +is yet producing even half the yield of which it is +immediately capable. Immigration of a certain class—capable +agriculturalists with some capital—is still +required. But with a strange perversity politicians have +persistently advocated a high protective tariff for the +purpose of fostering industrial development. The result +has been that certain industries have cropped up under +this system, which are quite incapable of independent +existence, and, while satisfying neither the employers +nor their men, constitute a very heavy drain on the +national purse. The chief objection, however, to the +policy is that it invites a class of immigrant who is really +not required in the country and who has taken to settling +in the capital instead of scattering into the camp.</p> + +<p>The immigrant required is the “colonist,” to whom +the country is already beginning to owe much of its +prosperity. There are two distinct types of colonist—the +one who buys his land on a permanent colony, and +builds a decent house, and the temporary tenant whose +economic principle is to break the soil of new land, and +moves to a new district at the end of his term. The +latter owes his origin to the cultivation of “alfalfa,” <a name="thethe" id="thethe"></a>the +wonderful clove-like plant that will grow on sand, +and requires no rain, but thrives on the surface water +which abounds in the country’s flat, low-lying plains. +Alfalfa will not grow in hard unbroken ground, and +where the land is such, cereal cultivation is necessary for +three years to reduce it to a fit condition. This work +requires labour which is not available among the +gauchos, the horsemen who act as hands on the estancias, +and the estanciero himself probably does not possess the +knowledge requisite for the cultivation of grain. A +contract is therefore made with colonists, usually +Piedmontese or Basques, to break the soil and grow +cereals for three, or more usually five, years, either at a<span class='pagenum'><a name="Page_3" id="Page_3">- 3 -</a></span> +fixed rent or for a percentage of the crop, the stipulation +being that with the last year’s seed alfalfa is sown as +well. When the last crop has been cut, the latter grows +through the stubble. The growth of this plant is such +that as alfalfa is more cultivated, the stock-bearing +capacities of the country will easily be trebled.</p> + +<p>The main supports of the country are, therefore, cereals +and cattle, the latter being undoubtedly the more +profitable investment, but requiring a much larger +capital. By Argentine, as by French, law property at +death is compulsorily divided, and this tends to split up +the now immense tracts of land occupied by individuals. +Whatever the social advantages of such a system may +be, it is not conducive to the most economic working, +nor yet to the breeding of the finest strains of stock, for +which a large capital is required. A form of evasion, +however, has been found in the formation of limited +liability companies, often private, to run big estancias. +These have everything to recommend them from the +economic point of view. A capable manager is put in +charge of the work on the spot, and, as capital is usually +forthcoming, the estancias are run in such a way as to +yield the greatest possible return. They are usually +well-maintained, up-to-date in management and fittings, +and supplied with good home-bred strains.</p> + +<p>There are, however, other natural sources of wealth in +the Argentine; notably, the forests of hard-woods (of the +acacia order) which abound in the Chaco, in Corrientes +and Entre Rios, and are also found in the province of +Córdoba and elsewhere; the sugar industry in the north-west +(of which more will be said under “<a href="#sugar">The Tariffs</a>”); +the hitherto undeveloped fruit cultivation in all parts of +the country (this in the sub-tropical and central provinces +would be especially liable to suffer from the depredations +of locusts); perhaps, too, cotton growing in the Chaco, +where, however, the supply of labour is much questioned, +and some pests peculiar to the cotton-bole are reported<span class='pagenum'><a name="Page_4" id="Page_4">- 4 -</a></span> +as existing; and, lastly, the minerals, as yet wholly +undeveloped. Although these are undoubtedly much +more scarce than in Bolivia and Chile, the absence of an +impartial geological survey has rendered the flotation of +bogus companies easy, and practically prevented any +genuine development, in spite of their greater accessibility +than in the former country. The recent boom and +collapse in gold ventures was the result of stock exchange +transactions, probably fraudulent, as, with the exception +of the sea-bed to the very south of the country (where +it cannot be recovered), gold is probably one of the few +minerals which does not exist to a workable extent.</p> + +<p>A curious feature in the Argentine is the absence of +navigable rivers. With the exception of the treacherous +<a name="Parana" id="Parana"></a>Paraná and the Uruguay, enclosing the provinces of +Entre Rios and Corrientes, there is not a single waterway, +natural or artificial. The result of this has been an +enormous network of railways spreading over the central +provinces with isolated offshoots north and west. The +consequent great influx of capital would naturally have +encouraged a large import trade; but the prohibitive tariff +has succeeded in retaining the money in the country, +while the revenue derived has, almost without exception, +been uneconomically employed. The result is that, apart +from an occasional monopoly that has succeeded, the +only large gainers from this policy have been the town +property holders.</p> + +<p>A large part, however, of the province of Buenos Aires +is liable to periodic inundation, and, to obviate this, an +extensive system of drainage has been planned, a work of +great difficulty owing to the small difference of altitude +between the land and the sea. Some canals, however, +are in course of construction of which advantage might +possibly be taken, if they were made of sufficient depth, +for local transport. If this were done, a large and +important part of the country would be provided with a +cheaper alternative to the railway. In a volume<span class='pagenum'><a name="Page_5" id="Page_5">- 5 -</a></span> +descriptive of the Republic (published, in English, by +the Department of Agriculture) this possibility is foreshadowed, +stress being laid on the slight fall from the +Andes to the coast, and a scheme, chimerical on the face +of it, of a system of trans-continental canals is vaguely +outlined. But, being so wildly improbable, it seems to +have no existence, even problematical, outside the pages +of that advertisement.</p> + +<h2><span class='pagenum'><a name="Page_6" id="Page_6">- 6 -</a></span> +<a name="CHAPTER_II" id="CHAPTER_II">CHAPTER II.</a><br /><br /> +<span class="ltrspc">THE RAILWAYS.</span></h2> + +<p><span class="smcap">The</span> prosperity of the Argentine Republic would +undoubtedly have been impossible without the enormous +investments made by British financial houses in its +railway development. For many years—in fact, until +quite recently—the influx of capital was welcomed and +encouraged. Concessions were lavished on anyone +ready to take them up, and, far from irksome conditions +being imposed, valuable privileges were granted +to the <i>concessionnaires</i>. Moreover, the national and +provincial governments were only too eager to get rid +of such lines as they themselves owned, and invariably +worked at a loss, and to transfer them to European +concerns. That the railways were financed from motives +of promiscuous philanthropy is improbable, but that the +English financiers were almost alone in their confidence +in the future of the country is not only true, but it is a +truth which the most respected and able Argentines fully +realise. There exists, however, at the present moment +a very powerful feeling of opposition to the “Empresas,” +as they are called—the “concerns” that practically +control the country—and (so say their opponents) exploit +it entirely for their own ends. Apart from the fact that +a railway, in order to pay, must humour its traffic, and +would be attempting suicide were it really guilty of the +exorbitant overcharging and mismanagement of which +some lines are accused, there is little or no cause for +these complaints. In a country where a mortgage on +land pays 8 per cent. interest, and where other investments +are expected to give a proportionate return, the +7 per cent. of a railway dividend is far from being<span class='pagenum'><a name="Page_7" id="Page_7">- 7 -</a></span> +excessive, especially when it is remembered that locusts +and drought may at any time absorb practically the +whole year’s profits of a whole system.</p> + +<p>The motive of this hostile spirit, or what may be +behind it, is difficult to discover. That jealousy of +foreign—especially English—influence exists in a certain +section of the people is undoubted. But, considering +that the true Argentine population—supposing that such +a thing exists or could be defined—is very small compared +with the foreign element, and that of itself it is absolutely +incapable of developing the country, some other reason +must exist to justify the position. But, discreditable as +such jealousy is to the people concerned, it is without +doubt a very powerful factor.</p> + +<p>Fortunately, these opinions are not shared by the +Government, nor, probably by the people generally, +who, although always complaining of high freights, +delay in transport, and all the other grievances for which +every railway under the sun is blamed, seem to dread +the alternative of Government control. The official +members of the Government are on the whole considered +to be sincere, industrious men, with a genuine desire to +do their best. But Government management invariably +means peculation, among subordinates especially, and +the introduction of petty politics into business. It is from +this element that the opposition springs. Concessions +requested by capitalists, permission for extensions +required by existing concerns, although of undoubted +advantage to the country and approved by Government, +are blocked in Congress. The tone and quality of +Congress may be judged from the fact that the only +measure of any importance passed during a whole +session was that authorising an increase in the salaries +of the deputies. For weeks on end no meeting can be +held, be the measures to be discussed ever so important, +because, from carelessness or deliberate intention, +sufficient members do not appear to form a quorum.<span class='pagenum'><a name="Page_8" id="Page_8">- 8 -</a></span> +Several deputies, indeed, never sit from the beginning +of the session to the end. Thus, even if there is no +opposition to a railway bill, it often happens that it is +as effectually blocked by the sheer slackness of individual +congressmen.</p> + +<p>That the railways themselves are not blameless in +every respect stands to reason. And, although this is +almost certainly not the origin of the present obstruction +to their demands, they would command a much greater +share of sympathy—after all, a considerable asset—if +they would realise their own faults.</p> + +<p>Having had, and still having, a practical monopoly +in their own districts, the various companies have adopted +a somewhat despotic attitude towards new and outside +enterprise, and, sometimes a disregard for the requirements +of their customers, as well as for the true needs of +the country. Railway affairs centre in River Plate +House, and any attempt on the part of outsiders to +establish themselves in the Argentine is viewed with +great suspicion by the financial ring that rules there. +Concessions put forward have been blocked times out of +number by the influence which the ring could exert in +Congress. If by any chance—and this has been more +frequent of late—the concessions have been secured in +spite of its opposition, every obstacle is placed in the +way of raising the requisite capital in London—opposition +which the ring is in a peculiar position to +make effective. Only recently a very sound project was +floated with the greatest difficulty, even the debentures +failing to realise more than 90 per cent., because one of +the existing lines considered the proposal a trespass on +its especial preserves. Moreover, there seems to be +every reason to anticipate the rapid failure of the new +line owing to the rate war which the existing one will +undoubtedly declare.</p> + +<p>This apparent disregard of the needs or desires of their<span class='pagenum'><a name="Page_9" id="Page_9">- 9 -</a></span> +customers is, perhaps, attributable partly to the unreasonable +nature of the demand, partly to an occasional +pursuit of some pet theory of management, but, in all +probability, more largely to the division and conflict of +authority. The management is separated from its +central board, not only by the Atlantic, but by the local +board sitting in Buenos Aires. And, although on the +home board there are men whose knowledge of the +country was intimate some years previously, their aspect +of the working of a railway naturally undergoes considerable +modification upon their transference from the +executive to the directorate; while the local board, who +are often appointed merely to secure local support and +influence, are rather apt to exercise their power in a +vexatious and capricious manner—more to show their +authority than to further the interests of the railway. +As regards the actual working of the lines, in some cases +complaints are made that too much confidence is placed +in the long-haul, long-train theory. There are only a +few lines on which there is any opportunity for or +advantage in the very long train, the agricultural districts +centring round the various ports. Owing to the lack of +warehouse accommodation along the line, grain has often +to be loaded into the trains straight from the growers’ +carts, thus causing endless delay when trains of immense +length stand to be filled. It often happens, too, if the +harvest proves at all good, that, in spite of Government +orders, the rolling stock is quite inadequate for the traffic, +the result being that with the accumulation of work in +the docks, a crop is sometimes kept locally for a whole +year before it can be removed to a port.</p> + +<p>Considerable inconvenience is caused, and will +continue to be caused for some time, by the congestion +at the port of Buenos Aires. Control there has been +exercised by half a dozen different boards with no central +authority. The wharfage and warehouse accommodation +are quite inadequate, even if the great savings possible<span class='pagenum'><a name="Page_10" id="Page_10">- 10 -</a></span> +in time and space were realised. And, lastly, although +there is already sufficient confusion with a one gauge +system, there is an immediate prospect of the introduction +of two other gauges. The existing lines there are +5 ft. 6 in. But preparations are already being made for +the continuation of the Central Córdoba (metre gauge) +into the port, and possibly of the Entre Rios (4 ft. 8½ in.) +extension as well.</p> + +<p>The solution to the difficulty is at present very doubtful. +Increased accommodation to a limited extent is quite +possible in Buenos Aires itself, and with an immense +outlay of capital an entirely new set of docks might be +constructed there—though this is highly improbable. +The more reasonable course would undoubtedly be to +construct new ports or develop existing ones elsewhere, +a course that is already being adopted by the Southern +at Bahia Blanca, and the Entre Rios line at Ibicuy. +There is also a new project floated for the construction +of a large port in the Bay of Samborombon (also on the +Southern system), but this scheme does not meet with +much approval in the country, while, for some reason, +the port of La Plata has never succeeded, in spite of +every encouragement. At some time a port will have to +be constructed at Mar del Plata, where the only rock +foundation on the whole coast is to be found. Mar del +Plata is the Argentine Brighton, and any commercial +development there is certain of an unfavourable reception. +But as sand and mud are the only base from Santa Fé to +Bahia Blanca—in some cases there being not even firm +sand—and as dredging is exceptionally expensive, no +other solution seems reasonable. On the Uruguay +River, and on the Eastern Bank of the <a name="Parana2" id="Parana2"></a>Paraná, in +the South of Entre Rios there is deep water. But as this +only affects the lines of that province and of Corrientes +it has no bearing on the general question of Argentine +transport.</p> + +<p>As a last word, it must be remembered that the present<span class='pagenum'><a name="Page_11" id="Page_11">- 11 -</a></span> +boom in the country is extremely recent. Argentine has +developed in an extraordinarily rapid manner, and some +confusion is excusable. That the railway and the +country will realise and overcome their difficulties there +can be little doubt. And in any case the natural wealth +of the country is so great that in the end it will force a +way out, in spite of obstacles.</p> + +<p><a href="#Railways">Statistics relating to railways</a> will be found in Chapter VI.</p> + +<h2><span class='pagenum'><a name="Page_12" id="Page_12">- 12 -</a></span> +<a name="CHAPTER_III" id="CHAPTER_III">CHAPTER III.</a><br /><br /> +<span class="ltrspc">INDUSTRIES AND THE LABOUR QUESTION.</span></h2> + +<p><span class="smcap">The</span> labour question in the Argentine Republic is one of +great difficulty. There is really no native labour, +certainly none for industrial purposes. The Gaucho,<a name="FNanchor_1_1" id="FNanchor_1_1" +href="#Footnote_1_1" class="fnanchor">1</a> +now degenerated into the peon,<a name="FNanchor_2_2" id="FNanchor_2_2" +href="#Footnote_2_2" class="fnanchor">2</a> is only available for +stock-raising. Agriculture is carried on almost entirely +by colonists of various nationalities, and industries by +Italian immigrants only. There is one exception, the +sugar industry of the north. There conditions are so +very different from those in the centre and the south, +that it must be treated as almost a separate country. +While the north-east—the Chaco district—is still in so +uncivilised a state that its possibilities are very hazy. +The Quebracho trade yields very large returns with +Indian labour, but Indian labour is an unknown +quantity. Uncivilized Indians still cause considerable +trouble there, and opinions differ considerably as to the +possibility of employing them successfully for cotton +growing and other new enterprises.</p> + +<div class="footnote"><p><a name="Footnote_1_1" id="Footnote_1_1" +href="#FNanchor_1_1">1.</a> The descendents +of the original Spanish settlers, often showing +marked traces of Indian blood.</p> + +<p><a name="Footnote_2_2" id="Footnote_2_2" href="#FNanchor_2_2"> +2.</a> Peon is the name applied to all labourers.</p> +</div> + +<p>The more important question is that relating to labour +for factories, workshops, and railways in the central part +of the Republic, and in the towns themselves. That a +country situated so far from the great centres of production +should continue to import nearly all its necessities +as well as luxuries seems incredible. Yet the tendency +is certainly more in the direction of increased importation +than of home manufacture. There is a tariff of exceptional<span class='pagenum'><a name="Page_13" id="Page_13">- 13 -</a></span> +severity on every conceivable article, but even this fails to +develop industries in the country. Breweries, flour mills +and repairing shops seem to be the only successful +growths, with a few isolated instances, such as canvas +shoe factories and similar works. Even the production +of such essentially native goods as “ponchos”<a name="FNanchor_3_3" id="FNanchor_3_3" +href="#Footnote_3_3" class="fnanchor">3</a> has +lapsed in favour of German and Italian wares. While +the manufacture of matches—in the hands of a powerful +monopoly, bolstered up by privileges and an exorbitant +duty—was so seriously jeopardised by a strike last year, +that the threat was made—whether seriously or not, +cannot be said—of closing down the works and importing +immediately from England and Sweden. (It is satisfactory +to note in this connection that an English firm +promptly stepped forward and made an offer to the +Government that if a reduction was made in the duty, it +would undertake to place on the market, within little +more than a month, some millions of boxes of matches).</p><!--punc'n as original--> + +<div class="footnote"><p><a name="Footnote_3_3" id="Footnote_3_3" href="#FNanchor_3_3"> +3.</a> “Ponchos” are the peculiar rugs with a central slit to admit the +head when the “poncho” is used as a cloak. They are used universally +in the country.</p> +</div> + +<p>Even those industries, however, that flourish, do so in +spite of their labour. They are all, it will be observed, +concerned with the production of goods that are either +expensive or difficult to transport, and only the direst +necessity could prevent their home manufacture. +In the course of last year there were two general strikes +(in Buenos Aires and Rosario) besides numerous small +ones. Dock labourers seem to be continually in partial +ferment, and even the most generous treatment does +not prevent railway employees from stopping work +occasionally. The causes of this instability are fairly +apparent, though the same cannot be said of the remedy.</p> + +<p>For various reasons industrial labour is entirely +supplied by Italian immigrants, mostly Neapolitans. +The other nationalities who come into the country engage +for the most part in agricultural work, either as colonists,<span class='pagenum'><a name="Page_14" id="Page_14">- 14 -</a></span> +buying their land, or as tenant farmers on short leases. +Skilled English and other European labour is also +employed in factories, but only for the higher grades of +work, and in positions of some responsibility. Thus +the available labour is recruited from the lower class of +immigrants, and from a race not remarkable for stability.</p> + +<p>In the second place, living in the capital is extremely +dear, not least being the price of house accommodation. +Although an Italian can satisfy his requirements at a +much lower rate than an Englishman could his, yet even +he can scarcely make both ends meet, while the excess +of expenditure over receipts is particularly galling in the +land of promise. Recently, too, additional grievances +have been introduced by the wholesale eviction of tenants +owing to the purchase by syndicates of whole blocks of +buildings, and the subsequent re-letting of them at +immensely increased prices. In the first six months of +last year there were more than eleven thousand petitions +for evictions before the justices. With a discontented +and excitable working population, therefore, as a field +for their activities it is not surprising that the agitators, +of whom there is no lack, should be so successful. +Attempts are being made by various large concerns to +supply reasonable accommodation for their employees, +and more than one railway has been particularly liberal +in this respect. But it was only a short time ago that a +strike of very serious dimensions was declared in the +workshops of one of the most generous, on the most +ridiculous pretext.</p> + +<p>The great danger in all labour troubles in the +Argentine lies in the fact that they are apt to become +general and paralyse trade. It is usually impossible to +secure “blacklegs,” a circumstance which the workmen +fully realise. Moreover, owing to the peculiar economic +conditions of the country, a strike on the part of the +workmen in one industry means that all the workmen +in that industry stop work; and, as trade is usually in a<span class='pagenum'><a name="Page_15" id="Page_15">- 15 -</a></span> +state of congestion, the difficulties created are enormous. +A dock strike in Buenos Aires is doubly serious, because +the port is already overcrowded, and there is no +alternative port suitable. A match strike, with the +present tariff, causes a match famine. A railway strike +is sure to break out only when the year’s harvest must +be negotiated. And should any single strike show signs +of missing fire, in all probability the result is a +sympathetic strike on the part of all workmen, including +cab-drivers and bakers.</p> + +<p>The problem before the Government is very serious, +if, indeed, it is not a question which it would be wise +for the parties concerned to work out for themselves. +Considerable success is reported to have attended the +efforts of the Western Railway, who have instituted a +conciliation board for the mutual consideration of +difficulties with their employees. But unless by some +means the cost of living is reduced, it is difficult to +see how satisfactory conclusions can be attained. If +prices continue to rise as, in all probability they will, a +rise in wages will be imperative. This, in the case of +railways would mean an increase in rates, as there are +few who are earning more than a reasonable dividend, +while an increase in rates would cause great dissatisfaction +to the whole agrarian population; after all by far the +most important in the country. It is even doubtful +whether cereals could stand any heavier rates than they +bear at present.</p> + +<p>The root of the labourer’s dissatisfaction lies, as has +been said, in the high cost of living. Unless this can be +lowered, there can be no hope of a final settlement. And +the only means of lowering it is a reduction in the tariff +and a greater mobility of trade in the interior.</p> + +<h2><span class='pagenum'><a name="Page_16" id="Page_16">- 16 -</a></span> +<a name="CHAPTER_IV" id="CHAPTER_IV">CHAPTER IV.</a><br /><br /> +<span class="ltrspc">FOREIGN CAPITAL AND PUBLIC DEBT.</span></h2> + +<p><span class="smcap">It</span> is not the intention to deal in this work with the +market fluctuations, the arrangements made between +provincial banks and their creditors, nor with any of the +financial aspects which these questions have recently +assumed. Such a course would not only be out of place, +but would be of little interest or value, owing to the +unstable state in which the negotiations are at present. +The object will be rather to indicate the part that foreign +capital has played in the development of the country and +that played by politics in finance.</p> + +<p>An important fact to realise is that the liberation of the +country from the Spanish colonial system is comparatively +recent, and that a people unfitted in every way for +political independence was suddenly put in possession of +a country of quite exceptional richness but absolutely +undeveloped and almost unpopulated. Men with no +political experience nor education found the road open +to responsible positions requiring statesmanlike qualities +in an unusually high degree—not only financial, but +diplomatic and administrative ability combined with +absolute integrity. It is sufficiently well known how far +they came up to the requirements. For it is only at the +present day that political morality has found a place in +the national executive. In provincial administration and +in the ranks of the deputies it is doubtful whether it will +ever predominate.</p> + +<p>It is a favourite complaint of Argentines that their +country is regarded in Europe as a hot-bed of revolution. +They are never weary of complaining that their claim to<span class='pagenum'><a name="Page_17" id="Page_17">- 17 -</a></span> +be a civilized power is disregarded. In the absence of a +definition of civilization the question must be left open. +But as regards revolutions the European idea is +substantially correct. Argentines have undoubtedly not +yet realised a sane conception of government.</p> + +<p>If those in power fail to convince the country of any +sincerity or appreciation of their responsibilities, the +people themselves do not treat the authority of government +with the respect that alone permits the growth of +those qualities of statesmanship whose absence is so very +obvious.</p> + +<p>One improvement, however, must be noted, an +improvement of the very greatest importance. Whereas +in former years little respect was paid to non-partisans, +the people have now learnt that it is to everyone’s +interest to confine political differences to the actual +disputants—to fight their battles in their own garden, +and to leave neighbours at peace. Capital, therefore, is +tolerably safe, especially as the federal executive is a +body which, if not possessed in every branch of the +greatest intelligence or even honesty, is at least controlled +by men who realise their position and have sympathies +and knowledge beyond the limits of their country.</p> + +<p>The considerations just mentioned bear more especially +on capital sunk in land and its immediate connexions, or +in industrial concerns. As regards public debt, the +question is more involved. The laxity of public morality +has here the disastrous tendency of making a party +temporarily in power regard the actions of its predecessors +as invalid. The temptation is certainly great. When a +foreign loan has been contracted in the name of a +municipality or provincial government, at the expense of +the people at large, but is used purely for party or even +private ends, it is at least comprehensible that an +opposing party should regard the loan as an unwarrantable +exploitation of the public, and should think it +justifiable to allow the creditors to suffer instead of their<span class='pagenum'><a name="Page_18" id="Page_18">- 18 -</a></span> +own countrymen, who were no party to the transaction. +The policy and ethics of such a view are another matter. +And it is, as usual, the honest who suffer. For, if the +succeeding party are possessed of higher views in the sphere +of political morality, owing to the necessity of regarding +their predecessors’ really fraudulent contracts as binding +on themselves for fulfilment, the profit goes to the malefactors, +while the odium incurred in realising the money +to cancel the obligation falls on the unoffending upholders +of honesty.</p> + +<p>The extraordinary feature that impresses itself on the +mind when looking through the history of Argentine +loans is the readiness with which London financiers +responded to the invitations. No more remarkable case, +probably, could be found in the whole history of finance +than that of the Buenos Aires Provincial Bank, its +absolutely reckless mismanagement and of the inevitable +collapse which followed—resulting, as everyone knows, +in the failure of Messrs. Baring. This catastrophe set +back Argentine progress several years, and it is only now +that the recovery is at all complete.</p> + +<p>But it can scarcely be emphasised too strongly that +the recovery is complete. Argentine national credit is as +sound as that of any civilised power. Indeed, the fact +that the national Government undertook the responsibility +of so great a part of the debts of the provinces is in +itself sufficient indication of the Government’s policy. +With regard to municipal loans, it must be admitted that +as these are regarded nowhere as other than a highly +speculative investment, future irregularities would fall +on the heads of people who had full knowledge of their +risks. But the risks are extremely small compared with +those which existed formerly; and the national executive +seems inclined to exert pressure on recalcitrant bodies, +compelling them to adhere to their agreements. In a +recent case, indeed, intervention was necessary, not in +the interests of the financiers, but in that of the<span class='pagenum'><a name="Page_19" id="Page_19">- 19 -</a></span> +municipality, the extraordinary exactions of the French +port-concessionnaires at Rosario, having had very +disastrous effects on that town’s development. For once +the municipal authorities were not the only gainers and +the people themselves were the sufferers.</p> + +<p>Before presenting figures of Argentine loans in detail +it may be of interest to show the proportion which was +taken up in London. Of the total raised by the Republic +from its emancipation in 1822 until 1904, amounting to +£152,326,460, Great Britain supplied nearly four-fifths, +namely, £125,082,710. This total is made up of the +National, Provincial and Municipal external debts, which +amount severally to $540,770,156, $202,067,716, +$24,868,480 gold, or roughly £108,000,000, £40,000,000 +and £4,500,000 sterling, of which England provided +approximately six-sevenths, two-thirds and of the last, +all. When it is remembered that of the capital invested +in the country commercially three-quarters (or 250 out of +326 million pounds sterling) are also British, the +influence which this country has had on Argentine +progress cannot be over-estimated.</p> + +<p>It is a point, by the way, that a preference on colonial +produce would be a preference against these interests of +ours in the Argentine as well as against the 30,000 +people of British extraction resident there, of whom at +least one-half must be engaged or interested in the +rearing or exporting of cattle. In grain they would be +affected but little.</p> + +<p>In estimating the meaning of this tremendous debt it +must be remembered that much of it is repetition. Not +only were many of the loans issued for conversion of +floating and other existent debt, but it will be noticed +that a considerable part of the national debt was +contracted to liquidate the various indebtedness of +different provinces.</p> + +<h2><span class='pagenum'><a name="Page_20" id="Page_20">- 20 -</a></span> +<a name="CHAPTER_V" id="CHAPTER_V">CHAPTER V.</a><br /><br /> +<span class="ltrspc">ARGENTINA FROM THE IMMIGRANT’S STANDPOINT.</span></h2> + +<p><span class="smcap">It</span> seems to be the ambition of every new country to +secure immigration at all costs, regardless of the +prospects that really exist there, and also of the true +interests of the country. The result of this policy at its +best leads only to a boom, with its inevitable reaction. +The wiser plan of letting the country gradually develop +itself, admitting cheerfully the adventurous spirits who +are ready to come without invitation or advertisement +rarely seems to commend itself to colonial politicians. +Argentina at one time seemed more than likely to +compete with Australia and Canada in this respect, +trying to allure colonists with impossible promises of free +land and gigantic crops, and only the untiring efforts +of the Englishmen already established there have +prevented that country realising the inevitable consequence. +The present Argentine Government admit the +unsuitable nature of the country for impecunious +Englishmen, and confine their attentions to attracting +Italians and other foreigners, for whom the climate and +conditions of labour are certainly more adapted. But +even these are beginning to discover that expectations +and fulfilments do not always coincide. The truth is +that, as is heard from all parts of the world, special +knowledge or capital is indispensable in every new +country, but that with these the chances of success in life +are considerably greater than at home. To the Englishman, +however, in the Argentine, there is the additional +difficulty of the language—a difficulty which were he not<span class='pagenum'><a name="Page_21" id="Page_21">- 21 -</a></span> +an Englishman would be almost negligible, for Spanish +is an easy language of which to acquire a working +command.</p> + +<p>It is the firm belief of every Englishman, apparently, +that certain skill in athletics of necessity qualifies him for +cattle farming. Although he is physically well enough +suited to camp life, the whole truth is apt to be a +disillusionment. The market for athletic young men is +already glutted, and though many estancieros take on an +additional overseer or apprentice to please a friend, in +many cases they do not in the least appreciate bestowing +the favour. It must not be supposed that Englishmen +are not wanted on estancias. On the contrary, even +Argentines usually prefer an English manager. The +only difficulty is that the supply of raw material exceeds +the demand. The young man who goes out to seek his +fortune is usually one with no qualification but an agreeable +manner and a good physique, desirable enough +assets, but not such as to entitle the holder to an extravagant +salary. The wisest plan, therefore, that an +immigrant of this sort can pursue is to go to an estancia +as an apprentice for a nominal salary of twenty or thirty +pounds a year, on a three or four year’s<!--as original--> contract. Work +is very hard, though often the actual conditions of life +are extremely comfortable, but the education required is +thorough and qualifies for a position of majordomo at +the end of the contract. Many men who possess some +capital, or expect to possess it, also go through this +training as it enables them to invest their money wisely, +and later to work it economically.</p> + +<p>There are many, however, who find the work and +conditions of life trying, especially on an inferior estancia, +and take the first opportunity offered to change their +occupation. The usual change is to a bank or a railway. +Both are regarded as a last resource, because, although +the pay (anything from £100 a year) is considerably +higher than in camp life, expenses are considerably more<span class='pagenum'><a name="Page_22" id="Page_22">- 22 -</a></span> +so; while there is less chance of promotion because the +better positions naturally fall to men with a special railway +training who enter the service from home under contract. +For a really able man there are undoubtedly good +prospects on Argentine railways, and the difference in +salary between that of an employee there and that of one +in a similar position at home more than compensates for +the increased cost of living. In Banks the salaries are +much the same as on railways to begin with, but chances +of promotion are said to be less, while the work does not +give so many opportunities of seeing the country, and +to many is intrinsically less interesting.</p> + +<p>In business houses there is never a chance of employment, +except, of course, through personal influence. +English clerks are employed very little, and there are no +positions corresponding to the large book-keeping staffs +of banks and railways, nor to the assistants, and +secretaries to chiefs of departments, the inspectors and +superintendents of the latter.</p> + +<p>For the Englishman it is very fortunate that the +lethargic, and often untrustworthy character of Latin +races requires constant surveillance. But for the same +reason it is obviously impossible for employers to choose +their overseers at random, and a personal introduction +is almost indispensable. In giving this short sketch of +the prospects open to the English immigrant no mention +has been made of the immigrant labourer or artisan. +The reason of this is that in this respect Argentine must +be regarded almost as a tropical country, where English +labour is out of the question. Italian and English +labour cannot work together, not only from incompatibility +of temperament but because the Italian can work +for considerably less than the Englishman. In addition, +the climate in summer is far too hot for the latter. There +are exceptions to be found, notably in the case of butchers +at the freezing works, and that of some engine drivers, +and engine-shop artificers. But, as the drivers are<span class='pagenum'><a name="Page_23" id="Page_23">- 23 -</a></span> +compelled by law to speak and understand Spanish, they +are not numerous. In any case, there is absolutely no +opening for a labourer or artisan, unless he comes to the +country to take up a definite vacancy that has been +offered him.</p> + +<p>Regarded, however, as a country for the Italian +immigrant the prospects are certainly better, although +not so dazzling as he is led to believe in his own country. +Such popular phrases as “immense zones which merely +await the strong arm of the colonist for their development” +fall, unfortunately, rather short of the truth. +The tendency is to lay all land possible under alfalfa, +only such as is incapable of growing it being sold for +agriculture. Large tracts, nevertheless, are being formed +into colonies by land development companies, and in the +past have been so divided by government, a system +which gives good returns to the farmer. The latter, +however, is rather inclined to work his land to death, +often without rotation, and, though actual exhaustion +is very remote, the rest afforded by a year’s fallow and +leguminous crops is rendered impossible for a variety of +reasons.</p> + +<p>A mischievous result of the financial standing of many +of the colonists is their frequent lapse into the power of +the local store-keeper. There are no branch banks in the +camp towns and often no grain dealer apart from this +<a name="accommodating" id="accommodating"></a>accommodating tradesman. In return for very elastic +credit, based on crop expectations, he buys the whole +yield at his own price, and, as he has a <a name="monopoly" id="monopoly"></a>monopoly of the +retail trade as well, he secures a large profit on both +transactions. In his defence it must be admitted that he +runs a very great risk indeed in the credit which he is +compelled to give, and is justified to a great extent in +recouping himself when the opportunity occurs. But +the undeveloped economic system, and the encouragement +of settlers without a sufficient backing of capital, +are much to be deplored. In recent years the agriculture<span class='pagenum'><a name="Page_24" id="Page_24">- 24 -</a></span> +of a whole province threatened to come to an abrupt +termination owing to the complete inability of the +colonists to buy or borrow from the merchants seed for +their year’s sowing. It was only rescued by the prompt +and wise action of the local railway company who +supplied the grain, on the easiest of terms and without +security. The result was, although, of course, an +immediate loss to the company, the salvation of the +province, and the railway’s ultimate gain.</p> + +<p>Owing to the enterprise of various people there seems +to be a possibility that the colonist’s conservative +partiality to cereals may be overcome. Not only have +the possibilities of chicken-farming been demonstrated, +but the co-operative working of a large dairy and ice-producing +plant has already proved a success. The +co-operative movement may indeed open a field, especially +in the South, for other labour besides that of Latin +origin. It is true that the Boer Colony has not been an +unqualified success. But the Welsh have thrived in +Chubut, and of the newly opened regions about Nahuel-Huapi +residents speak enthusiastically. Unfortunately +there does not seem to be much land available, and, +hitherto, there have been no railway facilities. There +is a paper dealing with the Welsh Colony, published +by the Foreign Office in London. But, apart from the +accounts of sporting and scientific expeditions, there is +little available literature. It is much to be deplored, +and in default of an independent work in English the +translation of existing works in other languages would +be very welcome.</p> + +<h2><span class='pagenum'><a name="Page_25" id="Page_25">- 25 -</a></span> +<a name="CHAPTER_VI" id="CHAPTER_VI">CHAPTER VI.</a><br /><br /> +<span class="ltrspc">ENGLISH TRADE. ITS POSITION AND PROSPECTS.</span></h2> + +<p><span class="smcap">It</span> is always difficult to entice commercial men into +giving information of any value regarding their affairs. +The seeker after more material and solid things than +figures—after instances and facts rather than theories—is +very apt to be disappointed. The value of the +opinions gleaned was rather impaired when experience +showed that success and complacency, despondency and +comparative failure, usually went together. It is pleasant +to be told not to bother about British Trade, that +“British trade is all right.” But it is not entirely +reassuring when such lessons as can be derived from +statistics and the opinions of less successful men are +largely opposed to this view.</p> + +<p>Some more definite information was, however, available, +and from conversation with people directly +concerned with general trade, both English and +Argentines, it was possible to supplement to some +extent the statements, extremely valuable as they are, +of our consuls in the country, as well as the deductions +from official statistics. With regard to consular reports +a word must be said. These are often abused by men +of position in trade, and, though their brevity is to be +deplored, a word of protest must be uttered against the +inconsiderate and disdainful criticism to which they are +subjected. Moreover, one of the greatest authorities on +Argentine affairs, Dr. Francisco Moreno, an Argentine +delegate on Col. Holditch’s arbitration expedition on<span class='pagenum'><a name="Page_26" id="Page_26">- 26 -</a></span> +the Chilian Frontier, was emphatic in his approval of +these reports, even going so far as to say that he trusted +their statements and figures in preference to those of his +own government.</p> + +<p>On every hand there were indications leading to two +conclusions, namely that British trade is losing, or has +lost considerable ground, and that the greater part of +the blame is due to the producer or merchant at home. +A superficial glance at import statistics would seem to +give the lie direct to any such assertion. Such strong +influences, however, are at work, that it is only after a +careful study of all the circumstances that anything like +a true estimate can be formed.</p> + +<p>Before, therefore, pronouncing judgment upon its +present position and its future, a short examination of the +development of our trade viewed in conjunction with +the economic conditions of the country and with the +various interests in competition with ours, is necessary +both to explain how our conclusions were reached, +and to assist in the formation of a juster appreciation +of our commercial relations with the country.</p> + +<p>The following statistics give in brief the course of +trade in the Argentine according to official returns for +the years 1890, <a name="Y1895" id="Y1895"></a>1895, and 1900 to 1905 inclusive:—</p> + +<p><span class='pagenum'><a name="Page_27" id="Page_27">- 27 -</a></span></p> + +<div class="center"> +<table width="90%" cellspacing="0" summary="Imports and Exports from and to Different Countries."> +<caption>I<small>MPORTS AND</small> E<small>XPORTS FROM AND TO</small> D<small>IFFERENT</small> C<small>OUNTRIES</small>.</caption> +<tr> + <th> </th> + <th class="right">1890</th> + <th class="right">1895</th> + <th class="right">1900</th> + <th class="right">1901</th> + <th class="right">1902</th> + <th class="right">1903</th> + <th class="right">1904</th> + <th class="right">1905</th> +</tr> +<tr> + <th> </th> + <th class="right">$1000 Gold</th> + <th class="right">$1000 Gold</th> + <th class="right">$1000 Gold</th> + <th class="right">$1000 Gold</th> + <th class="right">$1000 Gold</th> + <th class="right">$1000 Gold</th> + <th class="right">$1000 Gold</th> + <th class="right">$1000 Gold</th> +</tr> +<tr> + <td colspan="9" class="left">Antilles:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>...</td> + <td>86</td> + <td>19</td> + <td>43</td> + <td>106</td> + <td>373</td> + <td>571</td> + <td>505</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>975</td> + <td>1,616</td> + <td>438</td> + <td>366</td> + <td>470</td> + <td>164</td> + <td>282</td> + <td>420</td> +</tr> +<tr> + <td colspan="9" class="left">Belgium:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>10,986</td> + <td>7,441</td> + <td>8,430</td> + <td>8,688</td> + <td>5,484</td> + <td>5,448</td> + <td>9,069</td> + <td>8,727</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>12,003</td> + <td>15,417</td> + <td>17,980</td> + <td>13,457</td> + <td>13,760</td> + <td>20,143</td> + <td>17,566</td> + <td>20,780</td> +</tr> +<tr> + <td colspan="9" class="left">Bolivia:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>85</td> + <td>72</td> + <td>122</td> + <td>138</td> + <td>122</td> + <td>125</td> + <td>108</td> + <td>126</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>296</td> + <td>591</td> + <td>578</td> + <td>541</td> + <td>600</td> + <td>450</td> + <td>392</td> + <td>539</td> +</tr> +<tr> + <td colspan="9" class="left">Brazil:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>3,354</td> + <td>4,095</td> + <td>3,741</td> + <td>4,386</td> + <td>4,583</td> + <td>5,350</td> + <td>6,032</td> + <td>5,328</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>8,442</td> + <td>8,096</td> + <td>6,185</td> + <td>9,702</td> + <td>8,368</td> + <td>8,545</td> + <td>10,727</td> + <td>13,039</td> +</tr> +<tr> + <td colspan="9" class="left">Chili:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>51</td> + <td>41</td> + <td>124</td> + <td>111</td> + <td>213</td> + <td>200</td> + <td>469</td> + <td>669</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>2,188</td> + <td>3,067</td> + <td>870</td> + <td>568</td> + <td>684</td> + <td>1,170</td> + <td>1,440</td> + <td>1,510</td> +</tr> +<tr> + <td colspan="9" class="left">France:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>19,875</td> + <td>9,116</td> + <td>10,897</td> + <td>9,959</td> + <td>9,243</td> + <td>12,708</td> + <td>17,109</td> + <td>21,248</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>26,683</td> + <td>20,337</td> + <td>19,007</td> + <td>28,637</td> + <td>29,587</td> + <td>34,294</td> + <td>30,596</td> + <td>37,594</td> +</tr> +<tr> + <td colspan="9" class="left">Germany:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>12,301</td> + <td>11,162</td> + <td>16,635</td> + <td>16,724</td> + <td>13,229</td> + <td>17,009</td> + <td>24,926</td> + <td>29,083</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>11,566</td> + <td>13,323</td> + <td>20,070</td> + <td>21,479</td> + <td>22,939</td> + <td>26,812</td> + <td>29,522</td> + <td>37,058</td> +</tr> +<tr> + <td colspan="9" class="left">Holland:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>850</td> + <td>103</td> + <td>173</td> + <td>573</td> + <td>622</td> + <td>790</td> + <td>1,007</td> + <td>1,288</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>160</td> + <td>92</td> + <td>3,906</td> + <td>1,753</td> + <td>2,834</td> + <td>4,546</td> + <td>3,500</td> + <td>3,761</td> +</tr> +<tr> + <td colspan="9" class="left">Italy:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>8,663</td> + <td>10,363</td> + <td>14,924</td> + <td>14,736</td> + <td>12,265</td> + <td>14,702</td> + <td>19,127</td> + <td>20,284</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>3,194</td> + <td>3,518</td> + <td>4,304</td> + <td>4,318</td> + <td>4,215</td> + <td>4,338</td> + <td>4,344</td> + <td>6,468</td> +</tr> +<tr> + <td colspan="9" class="left">Paraguay:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>1,724</td> + <td>1,824</td> + <td>1,860</td> + <td>1,767</td> + <td>1,469</td> + <td>1,059</td> + <td>1,569</td> + <td>1,616</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>336</td> + <td>100</td> + <td>161</td> + <td>216</td> + <td>213</td> + <td>173</td> + <td>216</td> + <td>330</td> +</tr> +<tr> + <td colspan="9" class="left">Portugal:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>110</td> + <td>58</td> + <td>78</td> + <td>68</td> + <td>89</td> + <td>213</td> + <td>271</td> + <td>300</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>456</td> + <td>138</td> + <td>369</td> + <td>7</td> + <td>113</td> + <td>101</td> + <td>88</td> + <td>23</td> +</tr> +<tr> + <td colspan="9" class="left">South Africa:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>...</td> + <td>...</td> + <td>...</td> + <td>...</td> + <td>4</td> + <td>62</td> + <td>126</td> + <td>34</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>...</td> + <td>8</td> + <td>3,240</td> + <td>2,891</td> + <td>8,285</td> + <td>9,170</td> + <td>4,941</td> + <td>5,524</td> +</tr> +<tr> + <td colspan="9" class="left">Spain:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>4,302</td> + <td>2,575</td> + <td>3,691</td> + <td>3,912</td> + <td>3,166</td> + <td>3,574</td> + <td>4,797</td> + <td>5,726</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>2,083</td> + <td>1,311</td> + <td>2,699</td> + <td>2,131</td> + <td>2,025</td> + <td>2,035</td> + <td>1,923</td> + <td>2,334</td> +</tr> +<tr> + <td colspan="9" class="left">United Kingdom:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>57,816</td> + <td>39,524</td> + <td>38,682</td> + <td>36,460</td> + <td>36,995</td> + <td>44,826</td> + <td>64,517</td> + <td>68,391</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>19,299</td> + <td>14,694</td> + <td>23,890</td> + <td>29,920</td> + <td>35,084</td> + <td>35,600</td> + <td>36,445</td> + <td>44,826</td> +</tr> +<tr> + <td colspan="9" class="left">United States:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>9,301</td> + <td>6,686</td> + <td>13,438</td> + <td>15,533</td> + <td>13,303</td> + <td>16,684</td> + <td>24,473</td> + <td>28,920</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>6,066</td> + <td>8,947</td> + <td>6,882</td> + <td>9,296</td> + <td>10,037</td> + <td>8,126</td> + <td>10,214</td> + <td>15,717</td> +</tr> +<tr> + <td colspan="9" class="left">Uruguay:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>5,885</td> + <td>736</td> + <td>520</td> + <td>679</td> + <td>744</td> + <td>760</td> + <td>862</td> + <td>1,023</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>5,506</td> + <td>3,290</td> + <td>2,302</td> + <td>3,710</td> + <td>3,673</td> + <td>4,188</td> + <td>5,020</td> + <td>6,705</td> +</tr> +<tr> + <td colspan="9" class="left">Other Countries:</td> +</tr> +<tr> + <td class="left"> Imports</td> + <td>6,932</td> + <td>1,207</td> + <td>141</td> + <td>175</td> + <td>1,393</td> + <td>7,314</td> + <td>12,265</td> + <td>11,870</td> +</tr> +<tr> + <td class="left"> Exports</td> + <td>1,557</td> + <td>25,516</td> + <td>41,711</td> + <td>38,715</td> + <td>36,593</td> + <td>61,119</td> + <td>107,233</td> + <td>126,208</td> +</tr> +<tr> + <td class="left">T<small>OTAL</small></td> + <td class="bb"> </td> + <td class="bb"> </td> + <td class="bb"> </td> + <td class="bb"> </td> + <td class="bb"> </td> + <td class="bb"> </td> + <td class="bb"> </td> + <td class="bb"> </td> +</tr> +<tr> + <td class="left"> I<small>MPORTS</small></td> + <td>142,240</td> + <td>95,096</td> + <td>113,485</td> + <td>113,959</td> + <td>103,039</td> + <td>131,206</td> + <td>187,305</td> + <td>205,154</td> +</tr> +<tr> + <td class="left"> E<small>XPORTS</small></td> + <td>100,818</td> + <td>120,067</td> + <td>154,600</td> + <td>167,716</td> + <td>179,486</td> + <td>220,984</td> + <td>264,157</td> + <td>322,843</td> +</tr> +</table><br /> +</div> + +<p><span class='pagenum'><a name="Page_28" id="Page_28">- 28 -</a></span></p> + +<p>While a similar table (calculated in Spanish dollars) +gives the following figures for the principal exporting +countries in the year 1822:—</p> + +<div class="center"> +<table class="normal" cellspacing="0" summary="Principal exporting +countries in 1822 calculated in Spanish dollars."> +<tr> + <td class="left">United Kingdom</td> + <td>$5,730,952</td> +</tr> +<tr> + <td class="left">France</td> + <td>820,109</td> +</tr> +<tr> + <td class="left">Germany, Holland, Sweden, and Denmark</td> + <td>552,187</td> +</tr> +<tr> + <td class="left">Gibraltar, Spain, and Sicily</td> + <td>848,363</td> +</tr> +<tr> + <td class="left">United States</td> + <td>1,368,277</td> +</tr> +<tr> + <td class="left">Brazil</td> + <td>1,418,768</td> +</tr> +<tr> + <td class="left">China</td> + <td>165,267</td> +</tr> +<tr> + <td class="left">Havana</td> + <td>248,625</td> +</tr> +<tr> + <td class="left">Chile and Peru</td> + <td>115,674</td> +</tr> +<tr> + <td class="right">T<small>OTAL</small>  </td> + <td class="bt">$11,267,622</td> +</tr> +</table><br /> +</div> + +<p>The contrast between the two tables is sufficiently +remarkable; but before dealing with either, it is necessary +to have clearly in mind the growth and nature of +demand. For this reason the immigration returns +and tables showing the development of the railway +system are given at this point:—</p> + +<div class="center"> +<table class="xpadlr" cellspacing="0" summary="Arrival +of Immigrants in the Republic from 1857 to 1905."> +<caption>A<small>RRIVAL OF</small> I<small>MMIGRANTS IN THE</small> R<small>EPUBLIC +FROM</small> 1857 <small>TO</small> 1905.</caption> +<tr> + <th>Years.</th> + <th>Number.</th> + <th> </th> + <th colspan="2">Nationalities.</th> + <th> </th> + <th colspan="2">Arrivals in 1905.</th> +</tr> +<tr> + <td class="left">1857-60</td> + <td>20,000</td> + <td> </td> + <td class="left">Italians</td> + <td>1,488,084</td> + <td> </td> + <td class="left">Italians</td> + <td>88,950</td> +</tr> +<tr> + <td class="left">1861-70</td> + <td>159,570</td> + <td> </td> + <td class="left">Spaniards</td> + <td>507,853</td> + <td> </td> + <td class="left">Spaniards</td> + <td>53,029</td> +</tr> +<tr> + <td class="left">1871-80</td> + <td>260,613</td> + <td> </td> + <td class="left">French</td> + <td>176,670</td> + <td> </td> + <td class="left">French</td> + <td>3,475</td> +</tr> +<tr> + <td class="left">1881-90</td> + <td>846,568</td> + <td> </td> + <td class="left">British</td> + <td>37,537</td> + <td> </td> + <td class="left">British</td> + <td>1,368</td> +</tr> +<tr> + <td class="left">1891-1900</td> + <td>648,326</td> + <td> </td> + <td class="left">Austrians</td> + <td>42,983</td> + <td> </td> + <td class="left">Austrians</td> + <td>2,793</td> +</tr> +<tr> + <td class="left">1901-1905</td> + <td>536,030</td> + <td> </td> + <td class="left">Germans</td> + <td>33,686</td> + <td> </td> + <td class="left">Germans</td> + <td>1,836</td> +</tr> +<tr> + <td colspan="3"> </td> + <td class="left">Swiss</td> + <td>26,690</td> + <td> </td> + <td class="left">Swiss</td> + <td>576</td> +</tr> +<tr> + <td colspan="3"> </td> + <td class="left">Belgians</td> + <td>19,990</td> + <td> </td> + <td class="left">Belgians</td> + <td>263</td> +</tr> +<tr> + <td colspan="3"> </td> + <td class="left">Others</td> + <td>127,614</td> + <td> </td> + <td class="left">Other nationalities</td> + <td>24,827</td> +</tr> +<tr> + <td> </td> + <td class="bt">2,461,107</td> + <td colspan="2"> </td> + <td class="bt">2,461,107</td> + <td colspan="2"> </td> + <td class="bt">177,117</td> +</tr> +</table><br /> +</div> + +<p><span class='pagenum'><a name="Page_29" id="Page_29">- 29 -</a></span></p> + +<p>The development of Argentine <a name="Railways" id="Railways"></a>Railways is shown in +following table<a name="FNanchor_4_4" id="FNanchor_4_4" href="#Footnote_4_4" class="fnanchor">4</a>:—</p> + +<div class="center"><br /> +<table class="xpadr" cellspacing="0" summary="Development of Argentine Railways."> +<tr> + <th>Years</th> + <th>Extent of<br />Lines in<br />kilometres</th> + <th>Capital<br />$1,000,000<br />Gold</th> + <th>Passengers<br />No. in<br />thousands</th> + <th>Freight<br />1,000 tons</th> + <th>Receipts<br />$1,000 Gold</th> + <th>Expenditure<br />$1,000 Gold</th> +</tr> +<tr> + <td>1857</td> + <td>10</td> + <td>·3</td> + <td>56</td> + <td>2</td> + <td>19</td> + <td>12</td> +</tr> +<tr> + <td>1865</td> + <td>240</td> + <td>5·3</td> + <td>747</td> + <td>71</td> + <td>563</td> + <td>438</td> +</tr> +<tr> + <td>1870</td> + <td>732</td> + <td>18·8</td> + <td>1,948</td> + <td>274</td> + <td>2,502</td> + <td>1,356</td> +</tr> +<tr> + <td>1875</td> + <td>1,956</td> + <td>40·9</td> + <td>2,597</td> + <td>660</td> + <td>5,178</td> + <td>3,009</td> +</tr> +<tr> + <td>1880</td> + <td>2,516</td> + <td>62·9</td> + <td>2,751</td> + <td>772</td> + <td>6,560</td> + <td>3,072</td> +</tr> +<tr> + <td>1885</td> + <td>4,502</td> + <td>121·7</td> + <td>5,587</td> + <td>3,050</td> + <td>14,298</td> + <td>8,616</td> +</tr> +<tr> + <td>1890</td> + <td>9,432</td> + <td>321·1</td> + <td>10,069</td> + <td>5,420</td> + <td>26,049</td> + <td>17,585</td> +</tr> +<tr> + <td>1895</td> + <td>14,116</td> + <td>485·3</td> + <td>14,573</td> + <td>9,650</td> + <td>26,394</td> + <td>13,846</td> +</tr> +<tr> + <td>1900</td> + <td>16,563</td> + <td>531·3</td> + <td>18,296</td> + <td>12,659</td> + <td>41,401</td> + <td>23,732</td> +</tr> +<tr> + <td>1901</td> + <td>16,907</td> + <td>538·3</td> + <td>19,689</td> + <td>13,988</td> + <td>43,866</td> + <td>24,128</td> +</tr> +<tr> + <td>1902</td> + <td>17,677</td> + <td>560·9</td> + <td>19,815</td> + <td>14,030</td> + <td>43,272</td> + <td>22,975</td> +</tr> +<tr> + <td>1903</td> + <td>18,404</td> + <td>573·0</td> + <td>21,025</td> + <td>17,024</td> + <td>53,569</td> + <td>27,766</td> +</tr> +<tr> + <td>1904</td> + <td>19,428</td> + <td>588·5</td> + <td>23,312</td> + <td>20,123</td> + <td>62,558</td> + <td>33,216</td> +</tr> +<tr> + <td class="fn">1905<a name="FNanchor_5_5" id="FNanchor_5_5" href="#Footnote_5_5" class="fnanchor">5</a></td> + <td>19,793</td> + <td><a name="FNanchor_6_6" id="FNanchor_6_6" href="#Footnote_6_6" class="fnanchor">6</a>626·3</td> + <td>26,634</td> + <td>22,283</td> + <td>71,341</td> + <td>39,155</td> +</tr> +</table> +</div> + +<div class="footnote"> +<p><a name="Footnote_4_4" id="Footnote_4_4" href="#FNanchor_4_4">4.</a> Direccion General de Vias de <a name="Communicacion" id="Communicacion"></a>Communicacion.</p> + +<p><a name="Footnote_5_5" id="Footnote_5_5"></a><a href="#FNanchor_5_5">5.</a> Approximate figures.</p> + +<p><a name="Footnote_6_6" id="Footnote_6_6"></a><a href="#FNanchor_6_6">6.</a> £125,274,000 approximately.</p> +</div> + +<p><span class='pagenum'><a name="Page_30" id="Page_30">- 30 -</a></span></p> + +<p>The relative importance of the various lines with their +nationalities is as follows:—</p> + +<div class="center"><br /> +<table class="xpadr" cellspacing="0" summary="Relative importance +of the various lines with their nationalities."> +<tr> + <th>1904.</th> + <th>Length<br />of line<br />(Kilometres)</th> + <th>Engines</th> + <th>Coaches</th> + <th>Vans</th> + <th>Waggons</th> + <th>Special<br />Waggons</th> +</tr> +<tr> + <td colspan="7" class="left"><i>State-owned Railways:</i>—</td> +</tr> +<tr> + <td class="left">Andine (5ft. 6in.)</td> + <td>339</td> + <td>18</td> + <td>16</td> + <td>16</td> + <td>504</td> + <td>5</td> +</tr> +<tr> + <td class="left">Central Northern (Metre)</td> + <td>1,122</td> + <td>85</td> + <td>51</td> + <td>43</td> + <td>1,418</td> + <td>74</td> +</tr> +<tr> + <td class="left">North Argentine (Metre)</td> + <td>563</td> + <td>15</td> + <td>26</td> + <td>13</td> + <td>250</td> + <td>27</td> +</tr> +<tr> + <td class="center">T<small>OTAL</small></td> + <td class="bt">2,024</td> + <td class="bt">118</td> + <td class="bt">93</td> + <td class="bt">72</td> + <td class="bt">2,172</td> + <td class="bt">106</td> +</tr> +<tr> + <td colspan="7"> </td> +</tr> +<tr> + <td class="left">Southern (5ft. 6ins.)</td> + <td>3,980</td> + <td>290</td> + <td>344</td> + <td>261</td> + <td>9,533</td> + <td>426</td> +</tr> +<tr> + <td class="left">Buenos Aires Western</td> + <td>1,197</td> + <td>129</td> + <td>136</td> + <td>148</td> + <td>3,711</td> + <td>—</td> +</tr> +<tr> + <td class="left">B. A. Rosario</td> + <td>1,997</td> + <td>146</td> + <td>188</td> + <td>154</td> + <td>4,982</td> + <td>111</td> +</tr> +<tr> + <td class="left">Central Argentine</td> + <td>1,785</td> + <td>162</td> + <td>208</td> + <td>109</td> + <td>5,199</td> + <td>76</td> +</tr> +<tr> + <td class="left">B. A. Pacific</td> + <td>1,261</td> + <td>100</td> + <td>80</td> + <td>60</td> + <td>2,523</td> + <td>15</td> +</tr> +<tr> + <td class="left">Great Western (5ft. 6ins.)</td> + <td>714</td> + <td>90</td> + <td>54</td> + <td>37</td> + <td>1,258</td> + <td>56</td> +</tr> +<tr> + <td class="left">Bahia Blanca and N.W. (5ft. 6ins.)</td> + <td>385</td> + <td>20</td> + <td>8</td> + <td>8</td> + <td>286</td> + <td>3</td> +</tr> +<tr> + <td class="left">East Argent. (4ft. 8½ins.)</td> + <td>161</td> + <td>14</td> + <td>21</td> + <td>8</td> + <td>279</td> + <td>5</td> +</tr> +<tr> + <td class="left">N.E. Argent.</td> + <td>662</td> + <td>36</td> + <td>42</td> + <td>16</td> + <td>340</td> + <td>7</td> +</tr> +<tr> + <td class="left">Entre Rios</td> + <td>758</td> + <td>30</td> + <td>38</td> + <td>19</td> + <td>492</td> + <td>—</td> +</tr> +<tr> + <td class="left">Prov. Santa Fé (French) (Metre)</td> + <td>1,392</td> + <td>81</td> + <td>112</td> + <td>47</td> + <td>1,852</td> + <td>48</td> +</tr> +<tr> + <td class="left">Centr. Córdoba (N.)</td> + <td>885</td> + <td>80</td> + <td>76</td> + <td>56</td> + <td>1,606</td> + <td>74</td> +</tr> +<tr> + <td class="left"> "   "  (E.)</td> + <td>210</td> + <td>13</td> + <td>20</td> + <td>12</td> + <td>654</td> + <td>—</td> +</tr> +<tr> + <td class="left">Córdoba and Rosario</td> + <td>289</td> + <td>29</td> + <td>55</td> + <td>32</td> + <td>654</td> + <td>21</td> +</tr> +<tr> + <td class="left">N.W. Argentine</td> + <td>196</td> + <td>20</td> + <td>14</td> + <td>8</td> + <td>520</td> + <td>2</td> +</tr> +<tr> + <td class="left">Córdoba and N.W.</td> + <td>153</td> + <td>9</td> + <td>12</td> + <td>4</td> + <td>86</td> + <td>—</td> +</tr> +<tr> + <td class="left">Transandine</td> + <td>175</td> + <td>14</td> + <td>10</td> + <td>10</td> + <td>130</td> + <td>8</td> +</tr> +<tr> + <td class="left">Central Chubut</td> + <td>70</td> + <td>2</td> + <td>6</td> + <td>3</td> + <td>57</td> + <td>—</td> +</tr> +<tr> + <td class="center">T<small>OTAL</small></td> + <td class="bt">16,270</td> + <td class="bt">1,265</td> + <td class="bt">1,424</td> + <td class="bt">998</td> + <td class="bt">34,162</td> + <td class="bt">852</td> +</tr> +</table><br /> +</div> + +<p>In “The Review of the River Plate” the growth +of British-owned Railways is given as follows:—</p> + +<div class="center"> +<table class="normal" width="25%" cellspacing="0" summary="Growth +of British-owned Railways."> +<tr> + <th colspan="2" class="right">Kilometres.</th> +</tr> +<tr> + <td class="left">1864</td> + <td>25  </td> +</tr> +<tr> + <td class="left">1874</td> + <td>860  </td> +</tr> +<tr> + <td class="left">1884</td> + <td>1,748  </td> +</tr> +<tr> + <td class="left">1894</td> + <td>10,785  </td> +</tr> +<tr> + <td class="left">1904</td> + <td>15,315  </td> +</tr> +</table> +</div> + +<p><span class='pagenum'><a name="Page_31" id="Page_31">- 31 -</a></span></p> + +<p>For the total kilometrage of the year 1904 the same +authority gives 18,412 kilometres, a considerable +discrepancy from the official figures. Of the two +authorities the government statistics are generally +regarded as the less trustworthy. But whatever the +true figures may be, the proportion owned by British +interests will not be lessened by the total of the more +optimistic estimate, which is based largely on unrealised +concessions. And in any case, the economic point to be +<a name="emphasised" id="emphasised"></a>emphasised is not weakened, namely the overwhelming +preponderance of British influence in this direction. +Moreover, not only has this influence been increasing +relatively to that of competitors, but, absolutely, the +increase is exceedingly great.</p> + +<p>We have, then, in this department of industry a +market for goods of proportions that quite exceed those +of any other in the country, the greatest impetus to its +development being given by the admission into the +country of all railway material duty-free. In any +estimate therefore, of the true position of any country’s +trade, this privileged demand must be considered. And +in estimating future conditions, the tendency noted in +the chapter on railways must be borne in mind, viz., the +tendency to discourage the continuance of the quasi-monopoly +of one country.</p> + +<p>Turning next to the immigration returns, the predominating +position held by the Latin races, and, especially, +of the Italian, is at once apparent. Although in many +cases the special requirements of these people can only +be satisfied by the goods produced in their own several +countries, the greater part of the demand for imported +goods is for clothing, and, in the case of the country +portion, for agricultural materials. In both these departments +the market is open. On the other hand, while +the greatest attention seems to have been paid to this +market by foreign merchants, the wants of the inhabitants +of British and other Northern extraction living in the far<span class='pagenum'><a name="Page_32" id="Page_32">- 32 -</a></span> +South have not been studied at all. In this context the +following extract from a recent consular report is of +interest. Writing from Puerto Gallegos in Patagonia +the Acting Consular Agent declares:—</p> + +<p>“German and French exporters are gradually securing +the best part of the trade in consequence of the greater +attention shewn by them to the large importing houses in +Gallegos. It is said that the merchant prefers to order +British goods to suit the taste of their farmer clients but +so little attention is shewn to them by the British +exporters that they are obliged to place their orders on +the Continent. Many British firms refuse to attend to +orders in Spanish, and their catalogues and price-lists +are almost invariably printed in English.”</p> + +<p>From the same report comes a remark of the Vice-Consul +at Bahia Blanca emphasising the energy with +which the Hamburg South American Company fosters +the coasting trade. The Pacific Steam Navigating boats +pass to and from the West Coast, but the local trade is +scarcely touched by them. Although a German line +does not imply nothing but German trade, the tendency +must, of necessity, be in its favour.</p> + +<p>The question of the nature of demand cannot be over-emphasised. +It is owing to neglect of this that the +greatest mistakes are made both in practice and in argument. +Up to 1880 the nation’s demands were those of +any immature nation. Subsequently to that date the +country began to boom and the whole economic condition +was altered. Whereas previous to that date the market +was for articles for private use, whether domestic, +agricultural, or personal, subsequent to the national +awakening private needs became insignificant compared +with those of public bodies. Not only was the construction +of railways commenced in earnest but national and +municipal contracts were issued broadcast. Harbours, +sewage and water-works, lighting, tramways, and every +other form of public enterprise, were initiated from that<span class='pagenum'><a name="Page_33" id="Page_33">- 33 -</a></span> +time onward. But, whereas the earlier works were +largely executed by English firms, of recent years foreign +(in particular Belgian) contractors have secured the concessions. +The methods employed by the latter, however, +have been such as rather to disgust the country with its +experiment. The case which has been causing intense +excitement is that of the Rosario Port-works. The +French <i>concessionnaires</i> made a bad job there of a +difficult undertaking. That, however, was little compared +with the terms which by some means they +managed to insert into their concession, terms by virtue +of which they were enabled to make the most extraordinary +exactions from everyone who entered the port, +regardless of the fact that many of the wharves were the +property of other concerns. On the other hand, the +English firm that constructed the Rosario sewage system, +and constructed it with the greatest thoroughness, were +treated to a series of vexatious interferences culminating +in a refusal on the part of the municipality to pay for +the work.</p> + +<p>Besides the above mentioned work, ports have been +constructed at Bahia Blanca, La Plata, Buenos Aires, +San Nicolas, <a name="Santa" id="Santa"></a>Santa Fé, Paraná (not yet completed) and +other places, so that some two hundred million sterling +have been invested in works of public utility in a country +with a population at the present time of about five +million inhabitants. Apart from the importance of this +development of public enterprises as regards the nature +of imports, its importance is obviously no less in the +matter of their extent. Adding to the capital of public +undertakings the capital employed in trade, the total of +commercially invested money was estimated at the end +of 1904 at 326 million sterling; but, if national provincial +and municipal loans are taken into account, the grand +total of foreign capital in the country probably exceeds +£450,000,000. This immense influx of capital naturally +caused imports greatly to exceed exports, but the excess<span class='pagenum'><a name="Page_34" id="Page_34">- 34 -</a></span> +is not perhaps so large as might have been expected, +owing to the high tariff which probably increased the +import of bullion.</p> + +<p>Recently, since the investments have begun to give +returns, the balance of trade has turned, and, whereas +in 1890 the sale of exports (in dollars gold) was to that +of imports as 100·82 millions to 142·24, in 1905 the former +had risen to 322·84 millions, and the latter only to 205·15. +Even then it is hardly credible that exported interest +should have equalled, much less exceeded, the new +capital invested, and the alternative of gold shipments +must be admitted.</p> + +<p>We have then a rising tendency in the price of commodities, +or a depreciation of money (quite irrespective, +of course, of the depreciation of paper). The theory of +rising prices is, as is well known a favourite in the +States. But in this, as in almost every other case, the +application of an economic theory is rendered very nearly +impossible owing to conflicting influences.</p> + +<p>To return once more to the details of Argentine trade, +we found that the predominating demand had been that +of the railways, and that of the railways by far the +greater part is British.</p> + +<p>Apart from inclinations of sentiment or personal +partiality, it is only natural that engines and other +material should be imported from England, as being of +a type to which English engineers are accustomed. A +very large proportion of our trade comes under this +heading, and, it must be admitted, the market here is +not free. Even so, however, the superiority or greater +suitability—whether in material, construction, or price—of +foreign work in some directions has ousted the British +product. For example, in steel rails England’s quota +went down one thousand tons in 1905, while <a name="thatofthe" id="thatofthe"></a>that of the +States went up fifty-three thousand. So, too, in such +goods as axes and small tools the latter hold the market. +On the other hand, American locomotives have not<span class='pagenum'><a name="Page_35" id="Page_35">- 35 -</a></span> +proved a success—the English system of running not +being that for which they are designed.</p> + +<p>English engineers seem to prefer a solid, well-finished +engine, which can stand accidents, and innumerable +repairs. The Baldwin engine is cheap, but apparently +of indifferent finish, and is built on a rigid frame. The +slightest accident to this incapacitates the whole machine, +and, in any case, the locomotive is built for hard use +over a short period, with subsequent scrapping. Neither +the traffic nor the capital of Argentine railways justify +such a course. The actual figures of imports of +locomotives for 1905 are—United Kingdom 91, U.S.A. +16, Belgium 9, Germany 46—increases of 27, 8, 7, and +22 respectively. English engines are the most +expensive. The German engines are largely those +employed in construction. In railway material (not +specified) although England exported to the value +of $384,342 gold the increase over 1904 was $703,548 +gold, yet America with an export of only $470,527, shows +an increase of $411,876. Thus even in the privileged +domain of the railway market, there are signs of very +keen competition appearing. This may not prove +effective for some time, the connection between the home +contractors and the London board being intimate, and +there is a danger of its possibility being overlooked.</p> + +<p>Another important demand is that for tramway +material. In this it is satisfactory to see that there is a +favourable tendency in favour of English goods. Previously, +no doubt, the greater knowledge and experience +in the States enabled them to supply cars and material +more readily than in England, and the possession by +Germany of the Buenos Aires electric works favoured +its exportation of the latter. But recently some Preston +cars have been put on the road which give the greatest +satisfaction. The increase in electric traction in England +ought to furnish the experience necessary for the successful +development of this branch of trade.</p> + +<p><span class='pagenum'><a name="Page_36" id="Page_36">- 36 -</a></span> +In Agricultural machinery the market is absolutely +open, and where there is any opportunity, English firms +have undoubtedly succeeded. It is unreasonable to +expect that we should be able to compete with the States +in sowing, reaping, ploughing, and similar machinery, +provided as they are with an experimental field with +conditions similar to those prevalent in the Argentine. +But in traction engines the Lincoln firms outstrip all +their competitors. Rushton, Proctor and Co., Clayton +and Shuttleworth, Ransomes, Sims and Jefferies, are +names that may be seen all over the country. The +genuine solidity of construction in their engines, combined +with adaptability to the country’s requirements, +has for once overcome the overwhelming attraction of +cheapness. Considerable success has also attended their +threshing machines, in spite of their comparatively +greater expense and of various other factors in favour +of American machines.</p> + +<p>The case of Agricultural implements is curious. While +in axes the United States have increased their already +large export, though under the heading of spades, picks, +&c., their export of 680 tons in 1905 is 8 tons greater than +in 1904, the value is £1900 less, while the English 590 +tons is 167.5 tons more than in the previous year with an +increase in value of £8080.</p> + +<p>In cotton goods there is again a natural <a name="monopoly2" id="monopoly2"></a>monopoly—the +preponderating Italian influence among the working +classes encouraging the trade with that country in the +special line of goods which appeals to them.</p> + +<p>But perhaps the most important factor in international +trade is the nationality of the importers. In 1823 nearly +all the merchants in Buenos Aires were Scotch, and the +preponderance of British houses continued until recent +years. Then, however, for various reasons—the +development, perhaps, of the wool trade on the +Continent and the allurements of finance, owing to which +many British merchants invested in land and other<span class='pagenum'><a name="Page_37" id="Page_37">- 37 -</a></span> +enterprises, in preference to the less congenial uncertainties +of trade—a large number of foreign, especially +German, houses appeared, turning the current of trade +more in the direction of that country. Whatever the +reasons may have been, at the present moment Germany +is firmly established in the country, and its trade is +continually increasing. It must be added, that although +German firms have a natural preference for dealing with +their own country, they are always ready to do business +with English houses provided that the latter make it +profitable for them to do so.</p> + +<p>It will be convenient to deal here with the +complaints made by importers in the Argentine, of +English exporters, and the faults that the latter have to +find with the conditions of trade in that country.</p> + +<p>Briefly, the chief complaint made of the English +manufacturer and merchant is lack of adaptability—the +well-worn objection that appears in every Consular +report, and is repeated even by tradesmen in this +country. The ways in which he shows his stubbornness +may seem trifling, but their importance is sufficiently +great in practice. Price-lists published solely in +English, with those measures and prices which are a +continual nightmare to the foreigner, get-up packing +that do not quite meet local taste, all these are apparently +trivial, but they affect the balance of trade nevertheless.</p> + +<p>In cutlery, English goods have been entirely ousted +from the popular market. The large British population in +the country, however, as well as the wealthier Argentines +themselves, who as a rule are extremely partial to English +goods, from socks to agricultural machinery, still insist +on Sheffield blades, which in the best shops are often the +only ones procurable. But the popular demand is for a +cheaper article, often manufactured in the country. This +the English manufacturer has consistently refused to +supply, his reasons being, firstly, that he does not make +it, and secondly, that if he did, it would ruin his reputation<span class='pagenum'><a name="Page_38" id="Page_38">- 38 -</a></span> +for good work. The plan adopted abroad of not +fixing the maker’s name to an inferior article would +safeguard the reputation which the English producer +undoubtedly does possess. In this connection it is +a strange anomaly that the impression still holds +good in England, and seems to prevail even in other +countries, that German goods are of inferior quality. +This erroneous idea does not, of course, apply +to such things as armour plates and machinery. But +in the popular mind the impression created by toys +“made in Germany” has spread to all small articles +emanating from that country. If the work of any country +deserves this stigma it is that of America. The undeniable +ingenuity and neatness of American products is, +unfortunately, very often combined with bad workmanship. +In Argentine, according to some authorities, +disappointed buyers of American goods are returning to +more solid work. Undoubtedly the field for cheap goods +is favourable in that country, the moneyless colonists +being compelled to buy them irrespective of quality. +Besides, there is a delight, to which the Italian is peculiarly +susceptible, in always having something new. A bright +and new thing pleases most people more than a solid +article many years old. And in many directions the +yearly improvements and inventions soon reduce the +latter to a position of economic inferiority.</p> + +<p>Turning to the exporters’ complaints, there are two +which must be admitted reasonable. In the first place, +the economic conditions of the country as well as the +inclinations of the people require exaggerated credit.</p> + +<p>Nothing, apparently, will alter this, and the merchant +who refuses to take business on these terms must +expect to lose it altogether. The other is one that is +capable of removal. The English merchant frequently +complains that he cannot come into touch with his +ultimate customers. The taxes levied on commercial<span class='pagenum'><a name="Page_39" id="Page_39">- 39 -</a></span> +travellers are exorbitant, each province vying with the +other in preventing their entrance. From this it follows +that few firms can afford to send representatives further +afield than Buenos Aires or Rosario, and practically all +business is conducted through the larger importing +houses of the capital. This is an absolutely prohibitive +system that is bound to have the most disastrous effects +on the expansion of trade. The intention is no doubt +protective. But in a country that is naturally incapable +of any industrial development, the policy cannot be +considered as anything but unwise.</p> + +<p>As regards the travellers sent out by English firms, +they are often inadequately equipped for the work they +have to perform. Knowledge of the language, coupled +with knowledge of the article whose sale they have come +to promote, and an ability to quote credit terms offhand +in terms of dollars and kilos, are important. Too much +reliance is often placed on written matter which a +busy merchant has no time to read. A descriptive +pamphlet or book is an extremely valuable adjunct to an +obvious price list and an intelligent traveller. But by +itself it is of little value.</p> + +<p>A further point, and one of some importance, is that +Argentines expect immediate delivery of orders. +Recently a large English motor car firm opened an +agency in Buenos Aires. The cars were much admired, +and as they were well boomed at an opportune moment, +a great many orders were secured. Owing, however, to +considerable delay in delivery, these were withdrawn, +and the orders were transferred to French firms.</p> + +<p>Finally, a word must be said of proprietary articles. +In these no fault can be found with British manufacturers. +Soap, lime juice, whisky, mustard, jam, and even soda +water and ginger beer, are among the special products +that may be seen almost anywhere throughout the +country, and this branch of trade is capable of even<span class='pagenum'><a name="Page_40" id="Page_40">- 40 -</a></span> +greater development with judicious advertising. In +particular, jam is invariably liked by Argentines of all +classes, and were it pushed a very large consumption +might follow. At present there is only one firm of any +note whose products are seen in the shops. The same +may be said of biscuits, although both in this and in the +former case, the high tariff (about 50% to 60% of the +value) would be a great restriction.</p> + +<h2><span class='pagenum'><a name="Page_41" id="Page_41">- 41 -</a></span> +<a name="CHAPTER_VII" id="CHAPTER_VII">CHAPTER VII.</a><br /><br /> +<span class="ltrspc">THE TARIFF.</span></h2> + +<p><span class="smcap">Argentina</span> is professedly a protectionist country. It is +also professedly Republican, with a philosophic ideal of +the greatest good of the greatest number. The two +ideas, however, have not achieved a complete harmony. +This was perhaps inevitable. Curiously enough, the +vital <a name="industries" id="industries"></a>industries of the country have not been favoured +in any way by the fiscal system, which has been used to +foster exotics and economic growths hardly suited to the +conditions of the country.</p> + +<p>In the Argentine there can be no question of “Back +to the Land”; there has never been any departure. But +until the present chief of the Department of Commerce +began his campaign for a rational tariff, there seems to +have been a tacit assumption that factories constituted +wealth. That the country should remain permanently +agricultural was never advised. It was assumed that it +must manufacture, and on this assumption the national +policy was directed. As a matter of fact, there was +probably no reasoned determination at all. Some +industries existed originally before communication was +established on the present great scale with the rest of +the world. As time went on these suffered from outside +competition, and protection was invoked and secured. +Other industries were then started speculatively +and for them similar protection was granted. If +prevailing opinion is of any value, it was even +impossible for an industry to succeed except by +political jobbery. Even now the evil appears to be very +far from removed, and the difficulties experienced by the<span class='pagenum'><a name="Page_42" id="Page_42">- 42 -</a></span> +English Railway companies are partly attributable to +this cause. These have consistently refused to bribe, +and it may be said that almost without exception they +have adhered to this rule. The nearest approach to this +form of persuasion is the nomination of influential +Argentines to the local board of the company, and the +retention of prominent lawyers for nominal services at a +fixed yearly fee. Except for this no attempt is made to +secure support in congress, and in all probability no +payment has ever been made or promised by an English +company in return for particular support for a definite +proposal. The great privileges which the railways enjoy, +especially in the matter of tariff, were granted in pursuit +of a declared policy of encouragement to railway enterprise—a +policy which no one there has reason to regret, +as without it the country would never have emerged from +its former lethargy.</p> + +<p>With the exception of railway material, which for the +most part, comes in duty free, all manufactured articles +pay a very heavy duty indeed. But, whereas in almost +every other country of note, some portion at least of the +raw material is procurable locally, or at least from no great +distance, in the Argentine the most elementary of basic +materials have to be imported. With the exception of +wool, grain, cattle, a special quality of timber, and sugar, +there are no raw materials at all available for industrial +purposes. There are no minerals; cotton is a negligible +quantity at present; and fuel is as expensive as labour. +Coal does not exist (at least to a workable extent, if at +all); petroleum, though reported in parts of the +Cordillera, is non-existent for all practical purposes; +while wood is found in any quantity only in the forests +in the North, North East, in Entre Rios, and in parts of +<a name="Cordoba" id="Cordoba"></a>Córdoba and San Luis. The expense of carrying this +to the capital would be prohibitive except by boat from +the riverine forests. And, in any case, the wood being +slow-growing and intensely hard, it would be manifestly<span class='pagenum'><a name="Page_43" id="Page_43">- 43 -</a></span> +uneconomical to use anything but the trimmings as +firewood.</p> + +<p>We have, then, a country with a highly protective +tariff compelled to import by far the greater part of its +fuel, which, though admitted free, is necessarily +burdened with freights prohibitive to economic industrial +development. The Argentine, indeed, may be said to +be placed, geographically, in the worst position possible +for such a purpose. Keeping, then, the question of fuel +in mind, the possible advantage (from the purely +economic point of view) must be examined of reducing +at home to the state of finished commodities the raw +materials mentioned above.</p> + +<p>In every case of manufacture, the two obvious economic +reasons are either the ability to produce better or the +ability to produce cheaper. The former is out of the +question in the Argentine, because there is no hereditary +or traditional skill, nor special climatic conditions as in +Manchester; the latter, for the same reason, can only +be a question of freight. Any article to be consumed +at home, and produced mainly from native raw material +should, <i>prima facie</i>, be capable of production at home +for that consumption, granted an adequate supply of +labour. But, for export, general conditions being at +best only equal to those in the importing countries, the +only circumstances which could render home-manufacture +profitable would be greater liability to deterioration in +transit in the raw material than in the finished article, +or a great saving in bulk or weight in the latter.</p> + +<p>Taking the raw materials, therefore, in the order given +above, the wool produced or procurable in Argentina is +greatly in excess of the present local requirements. +What skill there is in the country for spinning and +weaving is insignificant for practical purposes, the +articles produced being either extremely crude, or quite +exceptionally fine, and consequently expensive. Both +are the work of Indians, or half-castes—who are rapidly<span class='pagenum'><a name="Page_44" id="Page_44">- 44 -</a></span> +becoming a smaller and smaller proportion of the total +population. Passing by as inconsiderable, therefore, +the advantage of home production on the score of special +skill, there remains the question of cheapness. For +some goods, special lines of purely local popularity, +which European houses would not make for other +customers, there are points in favour of local production. +But in such things as socks and articles of general +clothing, that command a universal market (with +differences only in design), it is found cheaper to +import. It must be added that there is comparatively +little demand for woollen goods at all in the Argentine +itself. Though the tariff, therefore, does not impose a +great burden on the people, from its protective aspect it +is encouraging an unprofitable industry.</p> + +<p>The duties are as follows: On spun wool about 1½d. +per lb., valued at about 7d. per lb., on washed wool +1s. 7d. per lb., the customs valuation being 7d.; on +stockings and socks (all classes) about 50%, on woollen +cloth (pure) about 40%, and on wool and cotton mixed, +over 30%.</p> + +<p>Passing over grain, the main manufactured product +of which, flour, is not imported at all, and cattle, which +in the frozen meat trade and its attendant industries +form one of the main items of export, there are left wood +and sugar. Of the former, the country produces little +for constructional and industrial purposes, all the natural +timber being employed either for railway sleepers, fencing +posts, or for tanning extract. It is an extremely +important business, but there could be no question of +importation, except for intermediate fencing bars (those +not planted in the ground) and for sleepers. Even so +the only circumstances which could render it possible +are the inability of the home supply to cope with the +demand, and the consequent rise in price. Recently +poplar has been planted on the islands of the Tigre near +the mouth of the Paraná with great success. But the<span class='pagenum'><a name="Page_45" id="Page_45">- 45 -</a></span> +available space is limited there, though it is quite possible +that planting might be continued on the Paraná and +Uruguay rivers. The duty on imported soft woods is +comparatively small.</p> + +<p><a name="sugar" id="sugar"></a>The one article of home-production left, which was +open to foreign competition, is sugar. The erratic +development of this industry in conjunction with the +tariff has been so eventful, and so instructive from the +economic point of view, that a rather lengthy review may +be pardoned. This is practically a paraphrase and +condensation of the extremely interesting, though, at +times, somewhat exclamatory article written by M. +Ricardo Pillado, the head of the Division of Commerce +in the Argentine Ministry of Agriculture, 1906. Unfortunately, +in attempting to follow some of the author’s +calculations it has been found quite impossible to verify +his results or to see how he arrived at them. In some +cases the figures are so obviously impossible in the light +of the data that the only explanation seems to be a +misprint. In order not to sacrifice the continuity of his +account, these figures have been given as they stand. +The fact that the article in question appears in a +collection, derived from various sources, and republished +officially at the Ministry of Agriculture, seemed to give +additional justification for its presentation here without +emendation.</p> + +<p>Writing at end of 1903, when the Brussels Convention +had just condemned Bounties, and when the original +heavy import duties and export drawbacks were still in +force, he makes this preface to a general discussion of +the whole working of the exaggerated protection of the +Sugar Industry.</p> + +<p>“The fiscal protection of the Sugar industry, instituted +in the year 1883, and maintained up to the present +moment in all its intensity, has been the source of the +gravest evils to the Republic, not merely through its +immediate effect and its having admitted and secured<span class='pagenum'><a name="Page_46" id="Page_46">- 46 -</a></span> +the maintainance<!--original spelling--> of an economic system so detrimental +to the country, but also, in the sphere of credit, through +the complications of which it has been the indirect cause. +Every effort, therefore, tending to destroy to their very +foundations the fallacies which have been the mainspring +and origin of its birth and continuance up to the present +day ought to be considered, in my opinion, as an act of +patriotism and duty.”</p> + +<p>M. Pillado is far from being a free-trader in the +accepted English sense. “The protection which +reasonably may be and, I will even say, ought to be +afforded to national industries cannot,” he goes on to +say, “be identified with the favours which were lavished +on the sugar industry.” Although he is in favour of a +moderate and strictly protective Tariff, he cannot reconcile +the prevailing system with any economic theory +whatever.</p> + +<p>The Sugar plantations and refineries are situated in +the remote North West of the country, and the latter +were practically in the hands of two powerful concerns. +Owing to the expense of rail transport, under no circumstances +could the sugar be transported to the coast to +compete on equal terms with the imported ocean-borne +article, and certainly not, with the additional freight, in +European markets.</p> + +<p>The initial error lay in the assumption that these +Northern Districts round Tucuman were especially +adapted by climate and other conditions to the cultivation +of cane. No such natural privilege exists. The origin +of the industry, on the contrary, is to be found in that +very distance from a port which renders its present +condition anomalous. Sugar-cultivation was instituted +solely with a view to the satisfaction of local requirements, +and the idea of competition with foreign produce in the +capital was probably never dreamed of. This view is +the more probable when it is remembered that Tucuman +lies nearly a thousand miles from Buenos Aires, while<span class='pagenum'><a name="Page_47" id="Page_47">- 47 -</a></span> +railway communication was not established until 1888 +or even later.</p> + +<p>At that time, however, protection was already in full +force. Although full communication was not established +until 1892, and till then goods had to be transported by +cartage, or whatever means the state of the roads (such +as they were) permitted, so early as 1883 the duty was +raised from the existing rate of 25% <i>ad volorem</i>, to a +specific tax of 5 cents per kilo, at a time when there was +only one currency. The impost being irrespective of +quality, the actual burdens resulted as follows: On +refined Sugar valued by the customs at 19 c. the kilo, +26½%; on white or granulated with a valuation of 14 c., +35¾%, on raw of 11½ c. per kilo, 43½%. It is obvious +says the writer, that the greatest burden fell on the lower +grades, the only ones which the local refineries were in +a position to produce and to offer in competition with +imported sugars.</p> + +<p>The year 1885 marked the next stage in the development. +Owing to facilities of transport being absent, +Tucuman was in no better position than before, while +the issue in the same year of the decree authorising a +paper currency with the consequent premium upon gold, +resulted in a natural increase in the restrictions on +importation. The increase in the duty was nominally +from 5 to 7 c. per kilo irrespective of quality. But the +actual increase resulted in a total of 90% on refined sugar +and 108% on the lower grades.</p> + +<p>The third increase took place three years later, in 1888, +when the import charge was raised to 9 c. gold per kilo +on refined sugar, other qualities being taxed at the old +figure. On M. Pillado’s estimate this meant a difference +of 268% between the cost of that sugar in bond and its +price to the importer.<a name="FNanchor_7_7" id="FNanchor_7_7" +href="#Footnote_7_7" class="fnanchor">7</a></p> + +<div class="footnote"><p><a name="Footnote_7_7" id="Footnote_7_7" +href="#FNanchor_7_7">7.</a> The +percentage seems to work out at 219, while the premium on +gold in that year (1888), as given in another official publication of 1906, +was in reality 150 roughly, which would mean 184%. But the absence +of reliable data makes an amateur result untrustworthy.</p> +</div> + +<p><span class='pagenum'><a name="Page_48" id="Page_48">- 48 -</a></span> +The foregoing is a brief account of the course of +taxation introduced for purposes of protection as +described by M. Pillado. At this point he takes occasion +to moralise on the iniquity of the system, and exclaims +that it is a matter of congratulation that the promoters of +the industry did not think fit to produce even further +from the great centres, somewhere on the borders of +Bolivia. In emphasising these existing burdens, however, +the writer is merely making a dramatic pause +preparatory to enlarging on the further excess in the +institution of bounties on export.</p> + +<p>The immediate result of this tariff was naturally an +immense rise in the price of all sugar, and subsequently +the practical exclusion of the imported article. The +figures cited in the work speak for themselves. In 1884 +the total imports of sugar of all classes were 35,000 tons. +In 1902 they had fallen to 155 tons. While the next year +saw an importation of some hundred tons of refined +sugar, the other grades were represented by a total of +about 300 lbs.</p> + +<p>We now come to the real interest of the question—the +effect namely which this policy had upon the industry +itself and the devices which the latter adopted to regulate +prices.</p> + +<p>In the first instance an unparalleled boom took place. +In 1884 the production was 75,000 tons. In 1895 it was +109,000. In the following year the sum of 134,417 +tons was reached—a production quite in excess of the +country’s requirements. The result was that in the +words of M. Pillado, “the refiners began to cry to +heaven and to earth for any solution whatever to rescue +them from the asphyxiation which threatened to overwhelm +at one and the same time themselves and their +system.”</p> + +<p>For the planters, however, Tucuman had become a +veritable Eldorado. Two years sufficed to give a net +return four times as great as the capital invested. As a<span class='pagenum'><a name="Page_49" id="Page_49">- 49 -</a></span> +natural consequence it followed that labour and capital +flowed into the Sugar districts, creating an unprecedented +boom and denuding the other agricultural industries +not only of the province but of the rest of the republic as +well of their very necessities of existence. The effect +was felt, apparently even in the capital, so that “lawyers +deserted their profession, workmen their tools, to throw +themselves with a regular fever into an occupation so +full of promise.” Works sprang up as if by magic. +Palaces were constructed to house the staffs. Capital +was lavished on the industry by individuals and banking +houses alike. No one, in short, took the slightest pains +to investigate the stability of the trade, and investments +were made with complete recklessness.</p> + +<p>While fortunes were being created in the cultivation of +sugar cane, orchards, orange-groves, pasturage, arable +land—everything else, in short—were being either transformed +or neglected, and the public generally was +compelled to pay an exorbitant price for its sugar. The +moment had, therefore, arrived for a reduction in +the import duties, and in the price of the article. +That, however, was not the view of the interested parties. +“If,” they said, “by any misfortune this year’s harvest +should prove so good as the last” a worse evil would +befall. Considering that private <a name="mortgages" id="mortgages"></a>mortgages amounted +to some five million dollars and that the total indebtedness +of the industry, in spite of its abnormal prosperity, +was no less than twenty million, the gravity of the +<a name="situation" id="situation"></a>situation was not exaggerated. A bad harvest would +be insufficient to satisfy the claims of creditors. A good +harvest would cause a tremendous fall in prices and +consequent disaster.</p> + +<p>It is not surprising that there was formed in 1895 the +“Union Azucavera,” or Sugar Trust, with the avowed +object of taking over the entire production of all the +refineries and determining prices for home consumption +and export.</p> + +<p><span class='pagenum'><a name="Page_50" id="Page_50">- 50 -</a></span> +Unfortunately, however, for the success of the venture, +some concerns were not in the precarious state to which +the majority had been reduced. By dint of better +management and through other causes they still +succeeded in maintaining substantial returns. These +refused to enter the Trust—or Kartel more strictly—and +the result was a more or less complete failure.</p> + +<p>Two combines were instituted, nevertheless, the above +mentioned “Union” (in a modified form, no doubt) +and a body known as the “Centro Azucarevo.” These +concerns devoted themselves with energy to the solution +of the problem of the surplus, and, as was to be expected, +the easiest seemed to be that supplied by political means, +the president of the “Union” being also president of +the Chamber of Deputies. So successful were their +efforts that in 1897 a bounty of 12 c. per kilo was +sanctioned, raised for the next year to 16 c. To pay for +this bounty an Inland Revenue tax of six cents paper per +kilo was declared on all sugar home or imported. As in +countries nearer home, the bounty system was an attempt, +a costly attempt, to market a commodity which in +normal circumstances was absolutely incapable of +meeting its competitors. Argentine sugar under the +most favourable conditions could not, and never was +expected to, compete in the open market with that of +other countries. In the circumstances it must be +admitted that the whole scheme was merely an organised +exploitation of the public in the interests of a weak +industry and certain speculative financiers. “What +public interests,” exclaims Mr. Pillado, “what benefit +for the community could be cited to warrant a contribution +from the country at large of $40,000,000 in five years as +a gift to the exporters of sugar?”</p> + +<p>Of the $39,850,000 levied, $25,250,000 were given as a +free gift to the exporters, only $14,600,000 finding their +way into the exchequer.</p> + +<h2><span class='pagenum'><a name="Page_51" id="Page_51">- 51 -</a></span> +<a name="Statistical_Appendix" id="Statistical_Appendix">Statistical Appendix.</a></h2> + +<!--<span class='pagenum'><a name="Page_52" id="Page_52">- 52 -</a></span> +[Blank Page]--> + +<p><span class='pagenum'><a name="Page_53" id="Page_53">- 53 -</a></span></p> + +<div class="center"><br /> +<table cellspacing="0" summary="IMPORTS, +under principal headings--Value in $1000 Gold."> +<caption><b>IMPORTS, under principal heads—Value in $1000 Gold.</b></caption> +<tr> + <th colspan="3"> </th> + <th class="right"><b>1890.</b></th> + <th class="right"><b>1895.</b></th> + <th class="right"><b>1900.</b></th> + <th class="right"><b>1905.</b></th> +</tr> +<tr> + <td colspan="2" class="left">Live-stock</td> + <td> </td> + <td>400</td> + <td>611</td> + <td>364</td> + <td>1,307</td> +</tr> +<tr> + <td colspan="7" class="left">Food stuffs</td> +</tr> +<tr> + <td colspan="2" class="left indent">Animal foods</td> + <td class="bt"> </td> + <td rowspan="6" class="mid bl"><span class="floatlf">=</span>16,411</td> + <td>984</td> + <td>1,755</td> + <td>2,242</td> +</tr> +<tr> + <td colspan="2" class="left indent">Vegetable foods and fruits</td> + <td> </td> + <td>539</td> + <td>633</td> + <td>960</td> +</tr> +<tr> + <td colspan="2" class="left indent">Spices and condiments</td> + <td> </td> + <td>1,053</td> + <td>590</td> + <td>866</td> +</tr> +<tr> + <td colspan="2" class="left indent">Legumes and cereals</td> + <td> </td> + <td>1,607</td> + <td>1,701</td> + <td>2,556</td> +</tr> +<tr> + <td colspan="2" class="left indent">Substances for infusions and hot beverages</td> + <td> </td> + <td>5,801</td> + <td>5,335</td> + <td>6,093</td> +</tr> +<tr> + <td colspan="2" class="left indent">Flour, macaroni, fancy breads, fecula</td> + <td class="bb"> </td> + <td>428</td> + <td>436</td> + <td>820</td> +</tr> +<tr> + <td colspan="2" class="left">Tobacco and applications</td> + <td colspan="2">2,554</td> + <td>2,293</td> + <td>3,147</td> + <td>4,455</td> +</tr> +<tr> + <td class="left">Drinks—</td> + <td class="left">Wines</td> + <td class="bt"> </td> + <td rowspan="3" class="mid bl"><span class="floatlf">=</span>12,990</td> + <td>7,304</td> + <td>5,637</td> + <td>6,596</td> +</tr> +<tr> + <td> </td> + <td class="left">Spirits and liquors</td> + <td> </td> + <td>1,301</td> + <td>1,284</td> + <td>2,159</td> +</tr> +<tr> + <td> </td> + <td class="left">Sundries</td> + <td class="bb"> </td> + <td>211</td> + <td>356</td> + <td>411</td> +</tr> +<tr> + <td colspan="7" class="left">Textiles, raw and manufactured</td> +</tr> +<tr> + <td> </td> + <td class="left">Silk</td> + <td class="bt"> </td> + <td rowspan="4" class="mid bl"><span class="floatlf">=</span>30,024</td> + <td>1,254</td> + <td>2,485</td> + <td>2,602</td> +</tr> +<tr> + <td> </td> + <td class="left">Wool</td> + <td> </td> + <td>7,650</td> + <td>7,141</td> + <td>10,967</td> +</tr> +<tr> + <td> </td> + <td class="left">Cotton</td> + <td> </td> + <td>20,309</td> + <td>19,536</td> + <td>27,066</td> +</tr> +<tr> + <td> </td> + <td class="left">Sundries</td> + <td class="bb"> </td> + <td>8,238</td> + <td>8,433</td> + <td>5,582</td> +</tr> +<tr> + <td colspan="2" class="left">Oils—Vegetable, mineral, etc.</td> + <td> </td> + <td class="center">—</td> + <td>3,193</td> + <td>4,194</td> + <td>5,556</td> +</tr> +<tr> + <td colspan="2" class="left">Chemical, medicinal, and pharmaceutical substances and products</td> + <td> </td> + <td>3,875</td> + <td>2,429</td> + <td>3,760</td> + <td>6,275</td> +</tr> +<tr> + <td colspan="2" class="left">Paints and dyes</td> + <td> </td> + <td class="center">—</td> + <td>789</td> + <td>865</td> + <td>1,441</td> +</tr> +<tr> + <td class="left">Timber:</td> + <td class="left">In bulk</td> + <td class="bt"> </td> + <td rowspan="2" class="mid bl"><span class="floatlf">=</span>7,399</td> + <td>3,295</td> + <td>5,500</td> + <td>11,799</td> +</tr> +<tr> + <td> </td> + <td class="left">Wrought</td> + <td class="bb"> </td> + <td>739</td> + <td>1,540</td> + <td>2,368</td> +</tr> +<tr> + <td colspan="7" class="left">Paper and applications</td> +</tr> +<tr> + <td> </td> + <td class="left">Paper and pasteboard</td> + <td class="bt"> </td> + <td rowspan="2" class="mid bl"><span class="floatlf">=</span>3,628</td> + <td>1,335</td> + <td>1,924</td> + <td>2,272</td> +</tr> +<tr> + <td> </td> + <td class="left">Applications</td> + <td class="bb"> </td> + <td>678</td> + <td>1,001</td> + <td>1,861</td> +</tr> +<tr> + <td colspan="2" class="left">Leather and applications</td> + <td colspan="2">1,704</td> + <td>641</td> + <td>1,244</td> + <td>1,796</td> +</tr> +<tr> + <td colspan="7" class="left">Iron and applications</td> +</tr> +<tr> + <td colspan="2" class="left indent">Raw material</td> + <td class="bt"> </td> + <td rowspan="3" class="mid bl"><span class="floatlf">=</span>48,109</td> + <td>5,696</td> + <td>9,088</td> + <td>14,814</td> +</tr> +<tr> + <td colspan="2" class="left indent">Machinery and agricultural implements</td> + <td> </td> + <td>1,202</td> + <td>1,861</td> + <td class="center">—</td> +</tr> +<tr> + <td colspan="2" class="left indent">Iron and steel manufactures</td> + <td class="bb"> </td> + <td>4,701</td> + <td>8,104</td> + <td>11,357</td> +</tr> +<tr> + <td colspan="2" class="left">Agriculture</td> + <td> </td> + <td class="center">—</td> + <td class="center">—</td> + <td class="center">—</td> + <td>16,532</td> +</tr> +<tr> + <td colspan="2" class="left">Locomotion and Conveyances</td> + <td> </td> + <td class="center">—</td> + <td class="center">—</td> + <td class="center">—</td> + <td>23,362</td> +</tr> +<tr> + <td colspan="7" class="left">Other metals</td> +</tr> +<tr> + <td> </td> + <td class="left">Unwrought</td> + <td> </td> + <td class="center">—</td> + <td>594</td> + <td>1,262</td> + <td>1,896</td> +</tr> +<tr> + <td> </td> + <td class="left">Manufactured</td> + <td> </td> + <td class="center">—</td> + <td>846</td> + <td>2,080</td> + <td>3,998</td> +</tr> +<tr> + <td colspan="7" class="left">Stone, clay, glass</td> +</tr> +<tr> + <td> </td> + <td class="left">Raw material</td> + <td class="bt"> </td> + <td rowspan="2" class="mid bl"><span class="floatlf">=</span>10,385</td> + <td>6,375</td> + <td>7,120</td> + <td>14,355</td> +</tr> +<tr> + <td> </td> + <td class="left">Manufactured</td> + <td class="bb"> </td> + <td>1,102</td> + <td>1,772</td> + <td>3,111</td> +</tr> +<tr> + <td colspan="2" class="left">Electrical supplies</td> + <td> </td> + <td class="center">—</td> + <td class="center">—</td> + <td class="center">—</td> + <td>2,034</td> +</tr> +<tr> + <td colspan="2" class="left">Sundry articles and manufactures</td> + <td> </td> + <td>4,955</td> + <td>1,881</td> + <td>3,321</td> + <td>5,428</td> +</tr> +<tr> + <td colspan="3" class="center">Totals</td> + <td class="bt">142,402</td> + <td class="bt">95,096</td> + <td class="bt">113,485</td> + <td class="bt">205,154</td> +</tr> +</table><br /> +</div> + +<p><span class='pagenum'><a name="Page_54" id="Page_54">- 54 -</a></span></p> + +<div class="center"><br /> +<table cellspacing="0" summary="EXPORTS, +under principal headings--Value in $1000 Gold."> +<caption><b>EXPORTS, under principal heads—Value in $1000 Gold.</b></caption> +<tr><th colspan="2"> </th> + <th class="right"><b>1890.</b></th> + <th class="right"><b>1895.</b></th> + <th class="right"><b>1900.</b></th> + <th class="right"><b>1905.</b></th> +</tr> +<tr><td class="left">Live-stock products</td> + <td class="bt"> </td> + <td rowspan="5" class="mid bl"><span class="floatlf">=</span>61,306</td> + <td>74,620</td> + <td>71,253</td> + <td>141,042</td> +</tr> +<tr><td class="left indent">Live-stock</td> + <td> </td> + <td>9,052</td> + <td>5,942</td> + <td>7,189</td> +</tr> +<tr><td class="left indent">Meat, hides, wool, etc.</td> + <td> </td> + <td>60,352</td> + <td>61,084</td> + <td>122,026</td> +</tr> +<tr><td class="left indent">Manufactured animal products</td> + <td> </td> + <td>4,367</td> + <td>3,568</td> + <td>10,148</td> +</tr> +<tr><td class="left indent">By-products</td> + <td class="bb"> </td> + <td>857</td> + <td>659</td> + <td>1,642</td> +</tr> +<tr><td class="left">Agricultural products</td> + <td class="bt"> </td> + <td rowspan="4" class="mid bl"><span class="floatlf">=</span>34,590</td> + <td>41,448</td> + <td>77,426</td> + <td>170,235</td> +</tr> +<tr><td class="left indent">Raw material</td> + <td> </td> + <td>39,085</td> + <td>73,045</td> + <td>161,188</td> +</tr> +<tr><td class="left indent">Manufactured products</td> + <td> </td> + <td>1,960</td> + <td>2,952</td> + <td>5,584</td> +</tr> +<tr><td class="left indent">By-products</td> + <td class="bb"> </td> + <td>402</td> + <td>1,428</td> + <td>3,462</td> +</tr> +<tr><td class="left">Woodland products</td> + <td> </td> + <td>1,413</td> + <td>2,161</td> + <td>3,508</td> + <td>7,125</td> +</tr> +<tr><td class="left">Products of the chase</td> + <td> </td> + <td>346</td> + <td>272</td> + <td>990</td> + <td>790</td> +</tr> +<tr><td class="left">Mineral products</td> + <td> </td> + <td>673</td> + <td>338</td> + <td>262</td> + <td>261</td> +</tr> +<tr><td class="left">Other products and sundries</td> + <td> </td> + <td>2,488</td> + <td>1,316</td> + <td>1,158</td> + <td>3,388</td> +</tr> +<tr><td class="center">Totals</td> + <td> </td> + <td class="bt">100,818</td> + <td class="bt">120,067</td> + <td class="bt">154,600</td> + <td class="bt">322,843</td> +</tr> +</table><br /> +</div> + +<div class="center"><br /> +<table cellspacing="0" summary="Exports of Frozen Meat and Jerked Beef."> +<caption>EXPORTS OF FROZEN MEAT AND JERKED BEEF.</caption> +<tr> + <th> </th> + <th colspan="2">J<small>ERKED</small> B<small>EEF</small>.</th> + <th colspan="2">F<small>ROZEN</small> B<small>EEF</small>.</th> + <th colspan="2">F<small>ROZEN</small> M<small>UTTON</small>.</th> + <th colspan="2">Other frozen and<br />Preserved Meat<br />and Tongues.</th> +</tr> +<tr> + <th>Years.</th> + <th class="right">Tons.</th> + <th>Value<br />$1000 gold.</th> + <th class="right">Tons.</th> + <th>Value<br />$1000 gold.</th> + <th class="right">Tons.</th> + <th>Value<br />$1000 gold.</th> + <th class="right">Tons.</th> + <th>Value<br />$1000 gold.</th> +</tr> +<tr> + <td class="center">1896</td> + <td>45,907</td> + <td class="xpad">3,217</td> + <td>2,997</td> + <td class="xpad">119</td> + <td>45,105</td> + <td class="xpad">1,804</td> + <td>3,288</td> + <td class="xpad">356</td> +</tr> +<tr> + <td class="center">1897</td> + <td>36,238</td> + <td class="xpad">2,466</td> + <td>4,241</td> + <td class="xpad">169</td> + <td>50,894</td> + <td class="xpad">2,035</td> + <td>2,414</td> + <td class="xpad">255</td> +</tr> +<tr> + <td class="center">1898</td> + <td>22,242</td> + <td class="xpad">2,116</td> + <td>5,867</td> + <td class="xpad">234</td> + <td>50,833</td> + <td class="xpad">2,393</td> + <td>3,154</td> + <td class="xpad">313</td> +</tr> +<tr> + <td class="center">1899</td> + <td>19,164</td> + <td class="xpad">2,038</td> + <td>9,079</td> + <td class="xpad">950</td> + <td>56,627</td> + <td class="xpad">2,265</td> + <td>3,322</td> + <td class="xpad">334</td> +</tr> +<tr> + <td class="center">1900</td> + <td>16,449</td> + <td class="xpad">1,979</td> + <td>24,590</td> + <td class="xpad">2,458</td> + <td>56,412</td> + <td class="xpad">4,512</td> + <td>3,175</td> + <td class="xpad">415</td> +</tr> +<tr> + <td class="center">1901</td> + <td>24,296</td> + <td class="xpad">2,879</td> + <td>44,904</td> + <td class="xpad">4,490</td> + <td>63,013</td> + <td class="xpad">5,041</td> + <td>3,047</td> + <td class="xpad">391</td> +</tr> +<tr> + <td class="center">1902</td> + <td>22,304</td> + <td class="xpad">2,647</td> + <td>70,018</td> + <td class="xpad">7,001</td> + <td>80,073</td> + <td class="xpad">6,405</td> + <td>4,729</td> + <td class="xpad">496</td> +</tr> +<tr> + <td class="center">1903</td> + <td>12,991</td> + <td class="xpad">1,542</td> + <td>85,520</td> + <td class="xpad">8,151</td> + <td>78,149</td> + <td class="xpad">6,251</td> + <td>7,354</td> + <td class="xpad">720</td> +</tr> +<tr> + <td class="center">1904</td> + <td>11,726</td> + <td class="xpad">1,391</td> + <td>97,744</td> + <td class="xpad">9,774</td> + <td>88,816</td> + <td class="xpad">7,089</td> + <td>7,249</td> + <td class="xpad">704</td> +</tr> +<tr> + <td class="center">1905</td> + <td>25,288</td> + <td class="xpad">3,738</td> + <td>152,857</td> + <td class="xpad">15,285</td> + <td>78,351</td> + <td class="xpad">6,268</td> + <td>8,488</td> + <td class="xpad">760</td> +</tr> +</table><br /> +</div> + +<p><span class='pagenum'><a name="Page_55" id="Page_55">- 55 -</a></span></p> + +<div class="center"> +<table cellspacing="0" summary="Exports of Cattle, Skins, and Wool."> +<caption>EXPORTS OF CATTLE, SKINS, AND WOOL.</caption> +<tr> + <th> </th> + <th colspan="2">C<small>ATTLE</small>.</th> + <th colspan="2">S<small>HEEPSKINS</small>.</th></tr> +<tr> + <th>Years.</th> + <th>1000’s.</th> + <th>Value<br />$1000 gold.</th> + <th>1000<br />Tons.</th> + <th>Value<br />$1000 gold.</th></tr> +<tr> + <td class="center">1896</td> + <td class="center">382</td> + <td class="xpad">6,543</td> + <td class="center">36</td> + <td class="xpad">4,061</td> +</tr> +<tr> + <td class="center">1897</td> + <td class="center">238</td> + <td class="xpad">5,018</td> + <td class="center">37</td> + <td class="xpad">4,094</td> +</tr> +<tr> + <td class="center">1898</td> + <td class="center">359</td> + <td class="xpad">7,690</td> + <td class="center">42</td> + <td class="xpad">6,194</td> +</tr> +<tr> + <td class="center">1899</td> + <td class="center">312</td> + <td class="xpad">6,824</td> + <td class="center">41</td> + <td class="xpad">9,308</td> +</tr> +<tr> + <td class="center">1900</td> + <td class="center">150</td> + <td class="xpad">3,678</td> + <td class="center">37</td> + <td class="xpad">7,472</td> +</tr> +<tr> + <td class="center">1901</td> + <td class="center">119</td> + <td class="xpad">1,980</td> + <td class="center">41</td> + <td class="xpad">7,339</td> +</tr> +<tr> + <td class="center">1902</td> + <td class="center">118</td> + <td class="xpad">2,848</td> + <td class="center">41</td> + <td class="xpad">8,487</td> +</tr> +<tr> + <td class="center">1903</td> + <td class="center">181</td> + <td class="xpad">4,437</td> + <td class="center">41</td> + <td class="xpad">10,132</td> +</tr> +<tr> + <td class="center">1904</td> + <td class="center">129</td> + <td class="xpad">2,852</td> + <td class="center">37</td> + <td class="xpad">8,676</td> +</tr> +<tr> + <td class="center">1905</td> + <td class="center">262</td> + <td class="xpad">5,160</td> + <td class="center">30</td> + <td class="xpad">9,483</td> +</tr> +</table><br /> +</div> + +<div class="center"><br /> +<table cellspacing="0" summary="Exports of Cattle, Skins, and Wool."> +<tr> + <th></th> + <th colspan="2">W<small>OOL</small>.</th> + <th colspan="2">S<small>ALTED</small> C<small>ATTLE</small><br />H<small>IDES</small>.</th> + <th colspan="2">D<small>RY</small> C<small>ATTLE</small><br />H<small>IDES</small>.</th> +</tr> +<tr> + <th>Years.</th> + <th>1000<br />tons.</th> + <th>Value<br />$1000 gold.</th> + <th>1000<br />tons.</th> + <th>Value<br />$1000 gold.</th> + <th>1000<br />tons.</th> + <th>Value<br />$1000 gold.</th> +</tr> +<tr> + <td class="center">1896</td> + <td class="center">187</td> + <td class="xpad">33,516</td> + <td class="center">29</td> + <td class="xpad">4,598</td> + <td class="center">21</td> + <td class="xpad">6,600</td> +</tr> +<tr> + <td class="center">1897</td> + <td class="center">205</td> + <td class="xpad">37,450</td> + <td class="center">27</td> + <td class="xpad">4,605</td> + <td class="center">29</td> + <td class="xpad">8,596</td> +</tr> +<tr> + <td class="center">1898</td> + <td class="center">221</td> + <td class="xpad">45,534</td> + <td class="center">29</td> + <td class="xpad">5,171</td> + <td class="center">23</td> + <td class="xpad">6,887</td> +</tr> +<tr> + <td class="center">1899</td> + <td class="center">237</td> + <td class="xpad">71,283</td> + <td class="center">28</td> + <td class="xpad">5,334</td> + <td class="center">23</td> + <td class="xpad">8,001</td> +</tr> +<tr> + <td class="center">1900</td> + <td class="center">101</td> + <td class="xpad">27,991</td> + <td class="center">26</td> + <td class="xpad">5,285</td> + <td class="center">24</td> + <td class="xpad">8,159</td> +</tr> +<tr> + <td class="center">1901</td> + <td class="center">228</td> + <td class="xpad">44,666</td> + <td class="center">28</td> + <td class="xpad">5,281</td> + <td class="center">26</td> + <td class="xpad">8,848</td> +</tr> +<tr> + <td class="center">1902</td> + <td class="center">197</td> + <td class="xpad">45,810</td> + <td class="center">35</td> + <td class="xpad">6,384</td> + <td class="center">26</td> + <td class="xpad">8,822</td> +</tr> +<tr> + <td class="center">1903</td> + <td class="center">192</td> + <td class="xpad">50,424</td> + <td class="center">28</td> + <td class="xpad">5,360</td> + <td class="center">23</td> + <td class="xpad">7,787</td> +</tr> +<tr> + <td class="center">1904</td> + <td class="center">168</td> + <td class="xpad">48,355</td> + <td class="center">29</td> + <td class="xpad">5,267</td> + <td class="center">22</td> + <td class="xpad">8,256</td> +</tr> +<tr> + <td class="center">1905</td> + <td class="center">191</td> + <td class="xpad">64,312</td> + <td class="center">49</td> + <td class="xpad">9,147</td> + <td class="center">24</td> + <td class="xpad">9,929</td> +</tr> +</table><br /> +</div> + +<div class="center"><br /> +<table cellspacing="0" summary="Exports of Wheat, Maize, and Linseed."> +<caption>EXPORTS OF WHEAT, MAIZE, AND LINSEED.</caption> +<tr> + <th> </th> + <th colspan="2">W<small>HEAT</small>.</th> + <th colspan="2">M<small>AIZE</small>.</th> + <th colspan="2">L<small>INSEED</small>.</th> +</tr> +<tr> + <th>Years.</th> + <th class="right">1000<br />tons.</th> + <th>Value<br />$1000 gold.</th> + <th class="right">1000<br />tons.</th> + <th>Value<br />$1000 gold.</th> + <th class="right">1000<br />tons.</th> + <th>Value<br />$1000 gold.</th> +</tr> +<tr> + <td class="center">1896</td> + <td>523</td> + <td class="xpad">12,830</td> + <td>1,570</td> + <td class="xpad">15,594</td> + <td>229</td> + <td class="xpad">6,856</td> +</tr> +<tr> + <td class="center">1897</td> + <td>101</td> + <td class="xpad">3,470</td> + <td>374</td> + <td class="xpad">5,478</td> + <td>162</td> + <td class="xpad">4,996</td> +</tr> +<tr> + <td class="center">1898</td> + <td>645</td> + <td class="xpad">22,368</td> + <td>717</td> + <td class="xpad">9,274</td> + <td>158</td> + <td class="xpad">5,420</td> +</tr> +<tr> + <td class="center">1899</td> + <td>1,713</td> + <td class="xpad">38,078</td> + <td>1,116</td> + <td class="xpad">13,042</td> + <td>217</td> + <td class="xpad">7,402</td> +</tr> +<tr> + <td class="center">1900</td> + <td>1,929</td> + <td class="xpad">48,627</td> + <td>713</td> + <td class="xpad">11,933</td> + <td>223</td> + <td class="xpad">10,674</td> +</tr> +<tr> + <td class="center">1901</td> + <td>904</td> + <td class="xpad">26,240</td> + <td>1,112</td> + <td class="xpad">18,887</td> + <td>338</td> + <td class="xpad">16,513</td> +</tr> +<tr> + <td class="center">1902</td> + <td>644</td> + <td class="xpad">18,584</td> + <td>1,192</td> + <td class="xpad">22,994</td> + <td>340</td> + <td class="xpad">17,840</td> +</tr> +<tr> + <td class="center">1903</td> + <td>1,681</td> + <td class="xpad">41,323</td> + <td>2,104</td> + <td class="xpad">33,147</td> + <td>593</td> + <td class="xpad">21,239</td> +</tr> +<tr> + <td class="center">1904</td> + <td>2,303</td> + <td class="xpad">66,947</td> + <td>2,469</td> + <td class="xpad">44,391</td> + <td>880</td> + <td class="xpad">28,359</td> +</tr> +<tr> + <td class="center">1905</td> + <td>2,868</td> + <td class="xpad">85,883</td> + <td>2,222</td> + <td class="xpad">46,537</td> + <td>654</td> + <td class="xpad">26,233</td> +</tr> +</table><br /> +</div> + +<p><span class='pagenum'><a name="Page_56" id="Page_56">- 56 -</a></span></p> + +<div class="center"><br /> +<table class="xpadlr" cellspacing="0" summary="The Development of Agricultural Industry 1895-1905."> +<caption>THE DEVELOPMENT OF AGRICULTURAL INDUSTRY 1895-1905.</caption> +<tr> + <th colspan="7">C<small>ULTIVATED</small> A<small>REA IN</small> T<small>HOUSAND</small> H<small>ECTARES</small>.<a name="FNanchor_8_8" id="FNanchor_8_8" href="#Footnote_8_8" class="fnanchor">8</a></th> +</tr> +<tr> + <th>Years.</th> + <th>Wheat.</th> + <th>Linseed.</th> + <th>Maize.</th> + <th>Hay.</th> + <th>Other<br />cultivations.</th> + <th>Total.</th> +</tr> +<tr> + <td class="center">1895</td> + <td>2,049</td> + <td class="xpad">387</td> + <td>1,244</td> + <td>713</td> + <td class="center">497</td> + <td>4,892</td> +</tr> +<tr> + <td class="center">1896</td> + <td>2,500</td> + <td class="xpad">360</td> + <td>1,400</td> + <td>800</td> + <td class="center">510</td> + <td>5,570</td> +</tr> +<tr> + <td class="center">1897</td> + <td>2,600</td> + <td class="xpad">350</td> + <td>1,000</td> + <td>900</td> + <td class="center">522</td> + <td>5,372</td> +</tr> +<tr> + <td class="center">1898</td> + <td>3,200</td> + <td class="xpad">332</td> + <td>850</td> + <td>1,067</td> + <td class="center">533</td> + <td>5,983</td> +</tr> +<tr> + <td class="center">1899</td> + <td>3,250</td> + <td class="xpad">355</td> + <td>1,009</td> + <td>1,268</td> + <td class="center">545</td> + <td>6,427</td> +</tr> +<tr> + <td class="center">1900</td> + <td>3,379</td> + <td class="xpad">607</td> + <td>1,255</td> + <td>1,511</td> + <td class="center">557</td> + <td>7,311</td> +</tr> +<tr> + <td class="center">1901</td> + <td>3,296</td> + <td class="xpad">782</td> + <td>1,405</td> + <td>1,631</td> + <td class="center">567</td> + <td>7,683</td> +</tr> +<tr> + <td class="center">1902</td> + <td>3,695</td> + <td class="xpad">1,307</td> + <td>1,801</td> + <td>1,730</td> + <td class="center">580</td> + <td>9,114</td> +</tr> +<tr> + <td class="center">1903</td> + <td>4,320</td> + <td class="xpad">1,487</td> + <td>2,100</td> + <td>2,172</td> + <td class="center">606</td> + <td>10,685</td> +</tr> +<tr> + <td class="center">1904</td> + <td>4,903</td> + <td class="xpad">1,082</td> + <td>2,287</td> + <td>2,503</td> + <td class="center">648</td> + <td>11,424</td> +</tr> +<tr> + <td class="center">1905</td> + <td>5,675</td> + <td class="xpad">1,022</td> + <td>2,717</td> + <td>2,983</td> + <td class="center">682</td> + <td>13,081</td> +</tr> +</table><br /> +</div> + +<div class="footnote"> +<p><a name="Footnote_8_8" id="Footnote_8_8" href="#FNanchor_8_8"> +8.</a> One hectare = 2·47114 acres.</p> +</div> + +<div class="center"><br /> +<table cellspacing="0" summary="The Cultivated Area in the Years 1895-1905 Compared."> +<caption>THE CULTIVATED AREA IN THE YEARS 1895-1905 COMPARED.</caption> +<tr> + <th colspan="2">Products.</th> + <th class="less">Census,<br />1895.<br />1000 hectares.</th> + <th class="less">Agricultural<br />Statistic, 1905.<br />1000 hectares.</th> + <td> </td> + <th>Increase.<br />%</th> +</tr> + +<tr> + <td class="left">Wheat</td> + <td> </td> + <td class="xpad">2,049</td> + <td class="xpad">5,675</td> + <td> </td> + <td class="xpad">176·9</td> +</tr> +<tr> + <td class="left">Linseed</td> + <td> </td> + <td class="xpad">387</td> + <td class="xpad">1,022</td> + <td> </td> + <td class="xpad">164·0</td> +</tr> +<tr> + <td class="left">Maize</td> + <td> </td> + <td class="xpad">1,244</td> + <td class="xpad">2,717</td> + <td> </td> + <td class="xpad">118·4</td> +</tr> +<tr> + <td class="left">Barley</td> + <td> </td> + <td class="xpad">54</td> + <td class="xpad">58</td> + <td> </td> + <td class="xpad">7·7</td> +</tr> +<tr> + <td class="left">Hay</td> + <td> </td> + <td class="xpad">713</td> + <td class="xpad">2,983</td> + <td> </td> + <td class="xpad">318·4</td> +</tr> +<tr> + <td class="left">Tobacco</td> + <td> </td> + <td class="xpad">15</td> + <td class="xpad">19</td> + <td> </td> + <td class="xpad">22·7</td> +</tr> +<tr> + <td class="left">Sugar cane</td> + <td> </td> + <td class="xpad">61</td> + <td class="xpad">65</td> + <td> </td> + <td class="xpad">7·3</td> +</tr> +<tr> + <td class="left">Vineyards</td> + <td> </td> + <td class="xpad">33</td> + <td class="xpad">53</td> + <td> </td> + <td class="xpad">59·0</td> +</tr> +<tr> + <td class="left">Cotton</td> + <td> </td> + <td class="xpad">1</td> + <td class="xpad">4</td> + <td> </td> + <td class="xpad">397·4</td> +</tr> +<tr> + <td class="left">Pea nut</td> + <td> </td> + <td class="xpad">13</td> + <td class="xpad">29</td> + <td> </td> + <td class="xpad">119·0</td> +</tr> +<tr> + <td class="left">Potatoes</td> + <td> </td> + <td class="xpad">21</td> + <td class="xpad">40</td> + <td> </td> + <td class="xpad">91·0</td> +</tr> +<tr> + <td class="left">Beans</td> + <td> </td> + <td class="xpad">20</td> + <td class="xpad">24</td> + <td> </td> + <td class="xpad">18·3</td> +</tr> +<tr> + <td class="left">Vegetables</td> + <td class="bt"> </td> + <td rowspan="3" class="mid bl xpad"><span class="floatlf">=</span>48</td> + <td class="xpad">39</td> + <td class="bt"> </td> + <td rowspan="3" class="mid bl xpad"><span class="floatlf">=</span>1·8</td> +</tr> +<tr> + <td class="left">Tapioca</td> + <td> </td> + <td class="xpad">5</td> + <td> </td> +</tr> +<tr> + <td class="left">Spurge</td> + <td class="bb"> </td> + <td class="xpad">3</td> + <td class="bb"> </td> +</tr> +<tr> + <td class="left">Rice</td> + <td class="bt"> </td> + <td rowspan="6" class="mid bl xpad"><span class="floatlf">=</span>156</td> + <td class="xpad">3</td> + <td class="bt"> </td> + <td rowspan="6" class="mid bl xpad"><span class="floatlf">=</span>57·4</td> +</tr> +<tr> + <td class="left">Oats</td> + <td> </td> + <td class="xpad">51</td> + <td> </td> +</tr> +<tr> + <td class="left">Common rye</td> + <td> </td> + <td class="xpad">2</td> + <td> </td> +</tr> +<tr> + <td class="left">Canary-seed</td> + <td> </td> + <td class="xpad">21</td> + <td> </td> +</tr> +<tr> + <td class="left">Coffee</td> + <td> </td> + <td class="xpad">0</td> + <td> </td> +</tr> +<tr> + <td class="left">Forests</td> + <td class="bb"> </td> + <td class="xpad">166</td> + <td class="bb"> </td> +</tr> +<tr> + <td class="left">Fruits</td> + <td> </td> + <td class="xpad">71</td> + <td class="xpad">87</td> + <td> </td> + <td class="xpad">21·9</td> +</tr> +<tr> + <td class="left">Sundries</td> + <td> </td> + <td class="xpad">—</td> + <td class="xpad">3</td> + <td> </td> + <td class="xpad">—</td> +</tr> +<tr> + <td colspan="2" class="center">Total</td> + <td class="bt xpad">4,892</td> + <td class="bt xpad">13,081</td> + <td class="bt"> </td> + <td class="bt xpad">167·4</td> +</tr> +</table><br /> +</div> + +<hr class="hr65" /> + +<!--<span class='pagenum'><a name="Page_57" id="Page_57">- 57 -</a></span> +Index +<span class='pagenum'><a name="Page_58" id="Page_58">- 58 -</a></span> +[Blank Page]--> + +<h2><span class='pagenum'><a name="Page_59" id="Page_59">- 59 -</a></span> +<a name="INDEX" id="INDEX"></a>Index</h2> +<div class="index"> +<p class="center"><b>A</b></p> + +<dl> + <dt>Agricultural implements:</dt> + <dd>Importation of English, <a href="#Page_36">36</a></dd> + <dd>United States, <a href="#Page_36">36</a></dd> + <dt>Agricultural machinery:</dt> + <dd>English importation of, <a href="#Page_36">36</a></dd> + <dd>United States importation of, <a href="#Page_36">36</a></dd> + <dt>Agriculture, Effects of undeveloped economic system on, <a href="#Page_23">23</a>, <a href="#Page_24">24</a></dt> + <dt>‘Alfalfa,’ Cultivation of, <a href="#Page_2">2</a></dt> + <dt>Antilles, Trade with, <a href="#Page_27">27</a></dt> + <dt>Axes and small tools, U.S. importation of, <a href="#Page_34">34</a></dt> +</dl> + +<p class="center"><b>B</b></p> + +<dl> + <dt>Bahia Blanca, <a href="#Page_33">33</a></dt> + <dt>Bahia Blanca, Docks at, <a href="#Page_10">10</a></dt> + <dt>Banks, Employment in, <a href="#Page_22">22</a></dt> + <dt>Belgium, Trade with, <a href="#Page_27">27</a></dt> + <dt>Boer colony, <a href="#Page_24">24</a></dt> + <dt>Bogus companies, <a href="#Page_4">4</a></dt> + <dt>Bolivia, Trade with, <a href="#Page_27">27</a></dt> + <dt>British houses, Decrease in the number of, <a href="#Page_37">37</a></dt> + <dt>Breweries, <a href="#Page_13">13</a></dt> + <dt>Buenos Aires, <a href="#Page_1">1</a>, <a href="#Page_10">10</a>, <a href="#Page_33">33</a></dt> + <dd>Congestion of port of, <a href="#Page_9">9</a></dd> + <dd>Province of, <a href="#Page_4">4</a></dd> + <dt>Business Houses, Employment in, <a href="#Page_22">22</a></dt> + <dt>Brazil, Trade with, <a href="#Page_27">27</a>, <a href="#Page_28">28</a></dt> + <dt>British and Northern immigrants: their wants not studied, <a href="#Page_31">31</a></dt> + <dt>British exporters, Slackness of, <a href="#Page_32">32</a></dt> +</dl> + +<p class="center"><b>C</b></p> + +<dl> + <dt>Canals, <a href="#Page_4">4</a></dt> + <dt>Capital, Influx of foreign, <a href="#Page_33">33</a></dt> + <dt>Cereals, growth of, <a href="#Page_2">2</a></dt> + <dt>Chaco district, <a href="#Page_12">12</a></dt> + <dt>Chaco, The, <a href="#Page_3">3</a></dt> + <dt>Chicken farming, <a href="#Page_24">24</a><span class='pagenum'><a name="Page_60" id="Page_60">- 60 -</a></span></dt> + <dt>Chili, Trade with, <a href="#Page_27">27</a></dt> + <dt>China, Trade with, <a href="#Page_28">28</a></dt> + <dt>Chubut, Welsh colony in, <a href="#Page_24">24</a></dt> + <dt>‘Colonists,’ <a href="#Page_2">2</a></dt> + <dt>Concentration of Trade in Buenos Aires, <a href="#Page_1">1</a></dt> + <dt>Congress, Tone of, <a href="#Page_7">7</a></dt> + <dt>Consular reports, Moreno, Dr. Francisco on, <a href="#Page_25">25</a>, <a href="#Page_26">26</a></dt> + <dt><a name="Cordoba2" id="Cordoba2"></a>Córdoba, Province of, <a href="#Page_3">3</a></dt> + <dt>Corrientes, <a href="#Page_3">3</a></dt> + <dt>Cotton goods, Italian importation of, <a href="#Page_36">36</a></dt> + <dt>Cotton growing, <a href="#Page_3">3</a></dt> + <dt>Credit, exaggerated, <a href="#Page_38">38</a></dt> + <dt>Credit, Soundness of National, <a href="#Page_18">18</a></dt> + <dt>Cultivated area in Argentina, Amount of, <a href="#Page_56">56</a></dt> + <dt>Cutlery, English loss of market for, <a href="#Page_37">37</a></dt> +</dl> + +<p class="center"><b>D</b></p> + +<dl> + <dt>Drainage system, <a href="#Page_4">4</a></dt> +</dl> + +<p class="center"><b>E</b></p> + +<dl> + <dt>‘Empresas,’ The, <a href="#Page_6">6</a></dt> + <dt>Englishmen, Prospects for, <a href="#Page_20">20</a>, <a href="#Page_21">21</a>, <a href="#Page_22">22</a></dt> + <dt>Entre Rios, <a href="#Page_3">3</a></dt> + <dt>Estancias, <a href="#Page_2">2</a>, <a href="#Page_3">3</a></dt> + <dt>Estancias, employment on, <a href="#Page_21">21</a></dt> + <dt>Estancieros, <a href="#Page_2">2</a></dt> + <dt>Exports, Value of, <a href="#Page_54">54</a>, <a href="#Page_55">55</a></dt> +</dl> + +<p class="center"><b>F</b></p> + +<dl> + <dt>Flour mills, <a href="#Page_12">12</a></dt> + <dt>Foreign capital, Important part played by, <a href="#Page_16">16</a></dt> + <dt>Foreign influences, Jealousy of, <a href="#Page_7">7</a></dt> + <dt>France, Trade with, <a href="#Page_27">27</a>, <a href="#Page_28">28</a></dt> + <dt>Fruit cultivation, <a href="#Page_3">3</a></dt> + <dt>Fuel, Scarcity of, <a href="#Page_42">42</a>, <a href="#Page_43">43</a></dt> +</dl> + +<p class="center"><b>G</b></p> + +<dl> + <dt>Gaucho, The, <a href="#Page_12">12</a></dt> + <dt>Gauchos, <a href="#Page_2">2</a></dt> + <dt>Gauges, Diversity of, on Argentine railways, <a href="#Page_10">10</a></dt> + <dt>German houses, Increase in the number of, <a href="#Page_37">37</a></dt> + <dt>Germany, Trade with, <a href="#Page_27">27</a></dt> + <dt>Gold in the Argentine, Scarcity of, <a href="#Page_4">4</a></dt> + <dt>Government management, character of, <a href="#Page_7">7</a></dt> + <dt>Government, want of stability of, <a href="#Page_17">17</a></dt> +</dl> + +<span class='pagenum'><a name="Page_61" id="Page_61">- 61 -</a></span> + +<p class="center"><b>H</b></p> + +<dl> + <dt>Hard-woods, growth of, <a href="#Page_3">3</a>, <a href="#Page_42">42</a>, <a href="#Page_44">44</a></dt> + <dt>Havana, Trade with, <a href="#Page_28">28</a></dt> + <dt>Holland, Trade with, <a href="#Page_27">27</a></dt> + <dt>Housing-accommodation, <a href="#Page_14">14</a></dt> +</dl> + +<p class="center"><b>I</b></p> + +<dl> + <dt>Immediate delivery, Expectation of, <a href="#Page_39">39</a></dt> + <dt>Immigrants, Attempts to attract, <a href="#Page_20">20</a></dt> + <dt>Immigrants, Nationalities of, <a href="#Page_28">28</a></dt> + <dt>Immigration of agriculturalists with capital needed, <a href="#Page_2">2</a></dt> + <dt>Immigration, Preponderance of Latin races, <a href="#Page_31">31</a></dt> + <dt>Importation, Tendency in the direction of increased, <a href="#Page_12">12</a></dt> + <dt>Imports, Value of, <a href="#Page_53">53</a></dt> + <dt>Inadequacy of rolling stock, <a href="#Page_9">9</a></dt> + <dt>Interests, Rates of, <a href="#Page_6">6</a></dt> + <dt>Inundations of the Argentine, <a href="#Page_4">4</a></dt> + <dt>Italian immigrants, attempts to attract, <a href="#Page_20">20</a></dt> + <dd>Prospects for, <a href="#Page_23">23</a></dd> + <dd>Their employment in industries, <a href="#Page_12">12</a>, <a href="#Page_13">13</a></dd> + <dt>Italy, Trade with, <a href="#Page_27">27</a></dt> +</dl> + +<p class="center"><b>J</b></p> + +<dl> + <dt>Jobbery, Political, its necessity for success of any enterprise, <a href="#Page_41">41</a>, <a href="#Page_42">42</a></dt> +</dl> + +<p class="center"><b>L</b></p> + +<dl> + <dt>Literature, Scarcity of, on the Argentine, <a href="#Page_24">24</a></dt> + <dt>La Plata, <a href="#Page_33">33</a></dt> + <dt>Loans, Argentine, easily raised, <a href="#Page_18">18</a></dt> + <dd>Their distribution, <a href="#Page_19">19</a></dd> + <dd>Their size, <a href="#Page_19">19</a></dd> + <dt>Locusts, <a href="#Page_3">3</a></dt> +</dl> + +<p class="center"><b>M</b></p> + +<dl> + <dt>Mar del Plata, <a href="#Page_10">10</a></dt> + <dt>Matches, Manufacture of, a monopoly, <a href="#Page_13">13</a>, <a href="#Page_15">15</a></dt> + <dt>Monopolies, Railway, Effect of, <a href="#Page_8">8</a>, <a href="#Page_9">9</a></dt> + <dt>Morality, Public, low standard of, <a href="#Page_16">16</a></dt> + <dt>Municipal loans, a speculative investment, <a href="#Page_18">18</a></dt> +</dl> + +<p class="center"><b>N</b></p> + +<dl> + <dt>Non-partisans unmolested, <a href="#Page_17">17</a><span class='pagenum'><a name="Page_62" id="Page_62">- 62 -</a></span></dt> +</dl> + +<p class="center"><b>P</b></p> + +<dl> + <dt>Paraná, <a href="#Page_33">33</a></dt> + <dt>Paraguay, Trade with, <a href="#Page_27">27</a></dt> + <dt><a name="Parana3" id="Parana3"></a>Paraná, River, <a href="#Page_4">4</a></dt> + <dt>Peon, The, <a href="#Page_12">12</a></dt> + <dt>Piedmontese and Basque ‘colonists,’ <a href="#Page_2">2</a></dt> + <dt>Pillado, M., his disagreement with present economic policy, <a href="#Page_46">46</a></dt> + <dd>his estimate of amount of tax on sugar, <a href="#Page_47">47</a></dd> + <dd>of its effects on the sugar industry, <a href="#Page_48">48</a>, <a href="#Page_49">49</a>, <a href="#Page_50">50</a></dd> + <dt>‘Ponchos,’ Importation of, <a href="#Page_13">13</a></dt> + <dt>Ports, Construction of, <a href="#Page_33">33</a></dt> + <dt>Portugal, Trade with, <a href="#Page_27">27</a></dt> + <dt>Precarious nature of business in the Argentine, Effect of, <a href="#Page_1">1</a></dt> + <dt>Preference on colonial produce as affecting the Argentine, <a href="#Page_19">19</a></dt> + <dt>Prices, Inflation of, in the Argentine, <a href="#Page_1">1</a></dt> + <dt>Property, Division of, <a href="#Page_3">3</a></dt> + <dt>Proprietary articles, British trade in, <a href="#Page_39">39</a></dt> + <dt>Protective tariff, Origin of, <a href="#Page_41">41</a></dt> + <dt>Public debt, Laxity of morality as regards, <a href="#Page_17">17</a></dt> + <dd>Its causes, <a href="#Page_18">18</a></dd> + <dt>Public works, Demands of, <a href="#Page_32">32</a></dt> + <dd>Mistakes in connexion with, <a href="#Page_33">33</a></dd> +</dl> + +<p class="center"><b>Q</b></p> + +<dl> + <dt>Quebracho trade, employment of Indian labour in the, <a href="#Page_12">12</a></dt> +</dl> + +<p class="center"><b>R</b></p> + +<dl> + <dt>Railways, Dividends of, <a href="#Page_6">6</a></dt> + <dt>Railways, Employment on, —</dt><!--no page number given--> + <dt>Railways, Growth of, <a href="#Page_29">29</a></dt> + <dd>Relative importance of, <a href="#Page_30">30</a></dd> + <dt>Railways, Growth of British owned, <a href="#Page_30">30</a>, <a href="#Page_31">31</a></dt> + <dt>Railway material, Importation of English, <a href="#Page_34">34</a>, <a href="#Page_35">35</a></dt> + <dd>United States, <a href="#Page_34">34</a>, <a href="#Page_35">35</a></dd> + <dt>Railway system, <a href="#Page_4">4</a></dt> + <dt>Raw material, Argentine naturally exclusively a producer of, <a href="#Page_7">7</a></dt> + <dt>Raw materials, Scarcity of manufactures, <a href="#Page_42">42</a></dt> + <dt>Rents, Rise of, in Buenos Aires, <a href="#Page_1">1</a></dt> + <dt>Rivers, Absence of navigable, <a href="#Page_4">4</a><span class='pagenum'><a name="Page_63" id="Page_63">- 63 -</a></span></dt> +</dl> + +<p class="center"><b>S</b></p> + +<dl> + <dt>Samborombon, Bay of, project of new port in, <a href="#Page_10">10</a></dt> + <dt>San Nicolas, <a href="#Page_33">33</a></dt> + <dt><a name="Santa2" id="Santa2"></a>Santa Fé, <a href="#Page_33">33</a></dt> + <dt>Shoe-factories, canvas, <a href="#Page_13">13</a></dt> + <dt>South Africa, Trade with, <a href="#Page_27">27</a></dt> + <dt>Spain, Trade with, <a href="#Page_27">27</a></dt> + <dt>Store-keepers, Power of the, <a href="#Page_23">23</a></dt> + <dt>Strikes, <a href="#Page_13">13</a>, <a href="#Page_14">14</a>, <a href="#Page_15">15</a></dt> + <dd>Cause of frequency of, <a href="#Page_15">15</a></dd> + <dt>Sugar industry, The, <a href="#Page_3">3</a></dt> + <dt>Sugar, manufacture of, <a href="#Page_45">45</a>, <a href="#Page_46">46</a>, <a href="#Page_47">47</a></dt> + <dt>Sugar Trust, The, <a href="#Page_49">49</a>, <a href="#Page_50">50</a></dt> +</dl> + +<p class="center"><b>T</b></p> + +<dl> + <dt>Tariff, Effect of high protective, <a href="#Page_3">3</a>, <a href="#Page_12">12</a></dt> + <dt>Timber, Production of, <a href="#Page_44">44</a></dt> + <dt>Traction engines, Supremacy of Lincoln firms in, <a href="#Page_36">36</a></dt> + <dt>Trade, British, losing of ground, <a href="#Page_26">26</a></dt> + <dt>Trade, Difficulty of obtaining information about British, <a href="#Page_25">25</a></dt> + <dt>Tramway material, Importation of English, <a href="#Page_35">35</a></dt> + <dd>United States, <a href="#Page_35">35</a></dd> + <dt>Travellers, Exclusion of, <a href="#Page_38">38</a>, <a href="#Page_39">39</a></dt> + <dt>Travellers, Inadequate equipment of English, <a href="#Page_39">39</a></dt> + <dt>Tucuman, Centre of sugar manufacture, <a href="#Page_46">46</a></dt> +</dl> + +<p class="center"><b>U</b></p> + +<dl> + <dt>Under-population of the Argentine, <a href="#Page_2">2</a></dt> + <dt>United Kingdom, Trade with, <a href="#Page_27">27</a>, <a href="#Page_28">28</a></dt> + <dt>United States, Trade with, <a href="#Page_27">27</a>, <a href="#Page_28">28</a></dt> + <dt>Uruguay, River, <a href="#Page_4">4</a>, <a href="#Page_10">10</a></dt> + <dt>Uruguay, Trade with, <a href="#Page_27">27</a></dt> +</dl> + +<p class="center"><b>W</b></p> + +<dl> + <dt>Wealth, Natural, of the country, <a href="#Page_11">11</a></dt> + <dt>Welsh Colony, <a href="#Page_24">24</a></dt> + <dt>Wool manufacture, <a href="#Page_43">43</a>, <a href="#Page_44">44</a></dt> +</dl> +</div> + +<div class="center"><a name="corrections" id="corrections"> </a> +<table id="corrs" summary="Corrections"> +<caption><span class="smcap">Transcriber’s Note</span>: The following amendments were made to the text:</caption> +<tr> + <th>Page</th> + <th>Original Word(s)</th> + <th>Amendment</th> +</tr> +<tr> + <td>2</td> + <td>the the</td> + <td><a href="#thethe" title=" Go to line in text. ">the</a></td> +</tr> +<tr> + <td>4</td> + <td>Parana</td> + <td><a href="#Parana" title=" Go to line in text. ">Paraná</a></td> +</tr> +<tr> + <td>10</td> + <td>Parana</td> + <td><a href="#Parana2" title=" Go to line in text. ">Paraná</a></td> +</tr> +<tr> + <td>23</td> + <td>accomodating</td> + <td><a href="#accommodating" title=" Go to line in text. ">accommodating</a></td> +</tr> +<tr> + <td>23</td> + <td>monoply</td> + <td><a href="#monopoly" title=" Go to line in text. ">monopoly</a></td> +</tr> +<tr> + <td>26</td> + <td>1896</td> + <td><a href="#Y1895" title=" Go to line in text. ">1895</a></td> +</tr> +<tr> + <td>29</td> + <td>Commuuicacion</td> + <td><a href="#Communicacion" title=" Go to line in text. ">Communicacion</a></td> +</tr> +<tr> + <td>31</td> + <td>emphasiased</td> + <td><a href="#emphasised" title=" Go to line in text. ">emphasised</a></td> +</tr> +<tr> + <td>33</td> + <td>Santo</td> + <td><a href="#Santa" title=" Go to line in text. ">Santa</a></td> +</tr> +<tr> + <td>34</td> + <td>that the</td> + <td><a href="#thatofthe" title=" Go to line in text. ">that of the</a></td> +</tr> +<tr> + <td>36</td> + <td>monoply</td> + <td><a href="#monopoly2" title=" Go to line in text. ">monopoly</a></td> +</tr> +<tr> + <td>41</td> + <td>industuries</td> + <td><a href="#industries" title=" Go to line in text. ">industries</a></td> +</tr> +<tr> + <td>42</td> + <td>Cordoba</td> + <td><a href="#Cordoba" title=" Go to line in text. ">Córdoba</a></td> +</tr> +<tr> + <td>49</td> + <td>mortages</td> + <td><a href="#mortgages" title=" Go to line in text. ">mortgages</a></td> +</tr> +<tr> + <td>49</td> + <td>sitnation</td> + <td><a href="#situation" title=" Go to line in text. ">situation</a></td> +</tr> +<tr> + <td>60</td> + <td>Cordoba</td> + <td><a href="#Cordoba2" title=" Go to line in text. ">Córdoba</a></td> +</tr> +<tr> + <td>62</td> + <td>Parana</td> + <td><a href="#Parana3" title=" Go to line in text. ">Paraná</a></td> +</tr> +<tr> + <td>63</td> + <td>Santo</td> + <td><a href="#Santa2" title=" Go to line in text. ">Santa</a></td> +</tr> +</table> +</div> + + + + + + + +<pre> + + + + + +End of Project Gutenberg's The Argentine as a Market, by N. L. 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L. Watson + +This eBook is for the use of anyone anywhere at no cost and with +almost no restrictions whatsoever. You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: The Argentine as a Market + +Author: N. L. Watson + +Release Date: May 16, 2012 [EBook #39715] + +Language: English + +Character set encoding: ASCII + +*** START OF THIS PROJECT GUTENBERG EBOOK THE ARGENTINE AS A MARKET *** + + + + +Produced by Adrian Mastronardi, René Anderson Benitz, and +the Online Distributed Proofreading Team at +http://www.pgdp.net (This file was produced from images +generously made available by The Internet Archive/American +Libraries.) + + + + + + + Transcriber's Note: Obvious typos have been amended. Variations in + spelling in the original text have been retained, except where usage + frequency was used to determine the common spelling. These amendments + are listed at the end of the text. Minor printer errors have been + amended without note. + + * * * * * + + +PUBLICATIONS OF THE UNIVERSITY OF MANCHESTER + + +ECONOMIC SERIES--No. IX. + +GARTSIDE REPORTS ON INDUSTRY AND COMMERCE. NO. 6 + + + + +_The Argentine as a Market_ + + + + +SHERRATT & HUGHES +Publishers to the Victoria University of Manchester +Manchester: 34 Cross Street +London: 60 Chandos Street, W.C. + + +[Illustration: (graph of imports, exports, and population)] + + + + +The Argentine as a Market + + +A REPORT + +_To the Electors to the Gartside Scholarships on the Results of +a Tour in the Argentine in 1906-7_ + + +BY + +N. L. WATSON, B.A. + +_Gartside Scholar_ + + + + +MANCHESTER +AT THE UNIVERSITY PRESS +1908 + + +UNIVERSITY OF MANCHESTER PUBLICATIONS +No. XXXIII. + + + + +THE GARTSIDE REPORTS. + + +The Gartside Reports are the reports made by the Gartside Scholars at +the University of Manchester. The Gartside Scholarships were established +in 1902 for a limited period, by John Henry Gartside, Esq., of +Manchester. They are tenable for two years and about three are awarded +each year. They are open to males of British nationality who at the date +of the election shall be over the age of eighteen years and under the +age of twenty-three years. + +Every scholar must enter the University of Manchester for one Session +for a course of study approved by the electors. The remainder of the +time covered by the Scholarship must be devoted to the examination of +subjects bearing upon Commerce or Industry in Germany or Switzerland, or +in the United States of America, or partly in one of the above-mentioned +countries and partly in others, but the electors may on special grounds +allow part of this period of the tenure of the Scholarship to be spent +in study and travel in some other country or countries. It is intended +that each scholar shall select some industry, or part of an industry, or +some business, for examination, and investigate this comparatively in +the United Kingdom and abroad. The first year's work at the University +of Manchester is designed to prepare the student for this investigation, +and it partly takes the form of directed study, from publications and by +direct investigation, of English conditions with regard to the +industrial or commercial subjects upon which research will be made +abroad in the second year of the scholarship. Finally, each scholar must +present a report, which will as a rule be published. + +The value of a Scholarship is about L80 a year for the time spent in +England, L150 a year for time spent on the Continent of Europe, and +about L250 a year for time spent in America. + + +EDITOR'S NOTE. + +MR. N. L. WATSON's sudden departure to fill a commercial position in the +East has prevented him from seeing this Report through the press +himself. + + + + +TABLE OF CONTENTS. + + + PAGE. + + Chapter I. The Economic Basis of the Argentine 1 + + " II. The Railways 6 + + " III. Industries and the Labour Question 12 + + " IV. Foreign Capital and Public Debt 16 + + " V. Argentina from the Immigrant's + Standpoint 20 + + " VI. English Trade. Its Position and + Prospects 25 + + " VII. The Tariff 41 + + Statistical Appendix 53 + + + + +CHAPTER I. + +THE ECONOMIC BASIS OF THE ARGENTINE. + + +The first thing that strikes the new arrival in the Argentine, and the +last thing that he is likely to forget when he leaves the country, is +the extraordinary inflation of prices. With the exception of meat, and +perhaps bread, there is no article of common consumption which does not +cost considerably more than in England, every allowance being made for +freight and tariff charges. The reason for this excess is doubtless to +be found in the concentration of trade in the capital. All imports, for +reasons that will be dealt with later, pass through the hands of the +large houses in Buenos Aires, who act as sole agents for the whole of +the Republic north of the Rio Negro. [While, owing to the precarious +nature of all business, dependent entirely on the grain and cattle +yield, much higher prices are charged in fat years than would be +justified if these times of prosperity were regarded as permanent.] +Because of this concentration of business in the capital, and in the +centre of the town in particular, rents have risen to an immense extent, +greatly increasing all establishment charges, and in turn the price of +commodities sold--a cause which acts again of course in retail trade and +neutralises the freight charges to outlying districts. But the essential +fact in Argentine Economics, and one which seems more than obvious, but +apparently escapes the comprehension of Argentine legislators, is that +the country is naturally, and must remain for some considerable time, a +producer of raw material exclusively. The country is still considerably +under-populated for the development of its natural resources, while +only a small portion of the settled area is yet producing even half +the yield of which it is immediately capable. Immigration of a certain +class--capable agriculturalists with some capital--is still required. +But with a strange perversity politicians have persistently advocated +a high protective tariff for the purpose of fostering industrial +development. The result has been that certain industries have cropped up +under this system, which are quite incapable of independent existence, +and, while satisfying neither the employers nor their men, constitute a +very heavy drain on the national purse. The chief objection, however, +to the policy is that it invites a class of immigrant who is really not +required in the country and who has taken to settling in the capital +instead of scattering into the camp. + +The immigrant required is the "colonist," to whom the country is already +beginning to owe much of its prosperity. There are two distinct types of +colonist--the one who buys his land on a permanent colony, and builds a +decent house, and the temporary tenant whose economic principle is to +break the soil of new land, and moves to a new district at the end of +his term. The latter owes his origin to the cultivation of "alfalfa," +the wonderful clove-like plant that will grow on sand, and requires no +rain, but thrives on the surface water which abounds in the country's +flat, low-lying plains. Alfalfa will not grow in hard unbroken ground, +and where the land is such, cereal cultivation is necessary for three +years to reduce it to a fit condition. This work requires labour which +is not available among the gauchos, the horsemen who act as hands on +the estancias, and the estanciero himself probably does not possess +the knowledge requisite for the cultivation of grain. A contract is +therefore made with colonists, usually Piedmontese or Basques, to break +the soil and grow cereals for three, or more usually five, years, either +at a fixed rent or for a percentage of the crop, the stipulation being +that with the last year's seed alfalfa is sown as well. When the last +crop has been cut, the latter grows through the stubble. The growth of +this plant is such that as alfalfa is more cultivated, the stock-bearing +capacities of the country will easily be trebled. + +The main supports of the country are, therefore, cereals and cattle, the +latter being undoubtedly the more profitable investment, but requiring a +much larger capital. By Argentine, as by French, law property at death +is compulsorily divided, and this tends to split up the now immense +tracts of land occupied by individuals. Whatever the social advantages +of such a system may be, it is not conducive to the most economic +working, nor yet to the breeding of the finest strains of stock, for +which a large capital is required. A form of evasion, however, has been +found in the formation of limited liability companies, often private, +to run big estancias. These have everything to recommend them from the +economic point of view. A capable manager is put in charge of the work +on the spot, and, as capital is usually forthcoming, the estancias are +run in such a way as to yield the greatest possible return. They are +usually well-maintained, up-to-date in management and fittings, and +supplied with good home-bred strains. + +There are, however, other natural sources of wealth in the Argentine; +notably, the forests of hard-woods (of the acacia order) which abound +in the Chaco, in Corrientes and Entre Rios, and are also found in the +province of Cordoba and elsewhere; the sugar industry in the north-west +(of which more will be said under "The Tariffs"); the hitherto +undeveloped fruit cultivation in all parts of the country (this in +the sub-tropical and central provinces would be especially liable to +suffer from the depredations of locusts); perhaps, too, cotton growing +in the Chaco, where, however, the supply of labour is much questioned, +and some pests peculiar to the cotton-bole are reported as existing; +and, lastly, the minerals, as yet wholly undeveloped. Although these +are undoubtedly much more scarce than in Bolivia and Chile, the absence +of an impartial geological survey has rendered the flotation of bogus +companies easy, and practically prevented any genuine development, in +spite of their greater accessibility than in the former country. The +recent boom and collapse in gold ventures was the result of stock +exchange transactions, probably fraudulent, as, with the exception +of the sea-bed to the very south of the country (where it cannot be +recovered), gold is probably one of the few minerals which does not +exist to a workable extent. + +A curious feature in the Argentine is the absence of navigable rivers. +With the exception of the treacherous Parana and the Uruguay, enclosing +the provinces of Entre Rios and Corrientes, there is not a single +waterway, natural or artificial. The result of this has been an enormous +network of railways spreading over the central provinces with isolated +offshoots north and west. The consequent great influx of capital would +naturally have encouraged a large import trade; but the prohibitive +tariff has succeeded in retaining the money in the country, while the +revenue derived has, almost without exception, been uneconomically +employed. The result is that, apart from an occasional monopoly that has +succeeded, the only large gainers from this policy have been the town +property holders. + +A large part, however, of the province of Buenos Aires is liable to +periodic inundation, and, to obviate this, an extensive system of +drainage has been planned, a work of great difficulty owing to the +small difference of altitude between the land and the sea. Some canals, +however, are in course of construction of which advantage might possibly +be taken, if they were made of sufficient depth, for local transport. +If this were done, a large and important part of the country would +be provided with a cheaper alternative to the railway. In a volume +descriptive of the Republic (published, in English, by the Department +of Agriculture) this possibility is foreshadowed, stress being laid on +the slight fall from the Andes to the coast, and a scheme, chimerical +on the face of it, of a system of trans-continental canals is vaguely +outlined. But, being so wildly improbable, it seems to have no existence, +even problematical, outside the pages of that advertisement. + + + + +CHAPTER II. + +THE RAILWAYS. + + +The prosperity of the Argentine Republic would undoubtedly have been +impossible without the enormous investments made by British financial +houses in its railway development. For many years--in fact, until quite +recently--the influx of capital was welcomed and encouraged. Concessions +were lavished on anyone ready to take them up, and, far from irksome +conditions being imposed, valuable privileges were granted to the +_concessionnaires_. Moreover, the national and provincial governments +were only too eager to get rid of such lines as they themselves owned, +and invariably worked at a loss, and to transfer them to European +concerns. That the railways were financed from motives of promiscuous +philanthropy is improbable, but that the English financiers were almost +alone in their confidence in the future of the country is not only true, +but it is a truth which the most respected and able Argentines fully +realise. There exists, however, at the present moment a very powerful +feeling of opposition to the "Empresas," as they are called--the +"concerns" that practically control the country--and (so say their +opponents) exploit it entirely for their own ends. Apart from the fact +that a railway, in order to pay, must humour its traffic, and would be +attempting suicide were it really guilty of the exorbitant overcharging +and mismanagement of which some lines are accused, there is little or no +cause for these complaints. In a country where a mortgage on land pays +8 per cent. interest, and where other investments are expected to give +a proportionate return, the 7 per cent. of a railway dividend is far +from being excessive, especially when it is remembered that locusts and +drought may at any time absorb practically the whole year's profits of +a whole system. + +The motive of this hostile spirit, or what may be behind it, is difficult +to discover. That jealousy of foreign--especially English--influence +exists in a certain section of the people is undoubted. But, considering +that the true Argentine population--supposing that such a thing exists +or could be defined--is very small compared with the foreign element, +and that of itself it is absolutely incapable of developing the country, +some other reason must exist to justify the position. But, discreditable +as such jealousy is to the people concerned, it is without doubt a very +powerful factor. + +Fortunately, these opinions are not shared by the Government, nor, +probably by the people generally, who, although always complaining +of high freights, delay in transport, and all the other grievances +for which every railway under the sun is blamed, seem to dread the +alternative of Government control. The official members of the +Government are on the whole considered to be sincere, industrious men, +with a genuine desire to do their best. But Government management +invariably means peculation, among subordinates especially, and the +introduction of petty politics into business. It is from this element +that the opposition springs. Concessions requested by capitalists, +permission for extensions required by existing concerns, although of +undoubted advantage to the country and approved by Government, are +blocked in Congress. The tone and quality of Congress may be judged +from the fact that the only measure of any importance passed during a +whole session was that authorising an increase in the salaries of the +deputies. For weeks on end no meeting can be held, be the measures to be +discussed ever so important, because, from carelessness or deliberate +intention, sufficient members do not appear to form a quorum. Several +deputies, indeed, never sit from the beginning of the session to the +end. Thus, even if there is no opposition to a railway bill, it often +happens that it is as effectually blocked by the sheer slackness of +individual congressmen. + +That the railways themselves are not blameless in every respect stands +to reason. And, although this is almost certainly not the origin of the +present obstruction to their demands, they would command a much greater +share of sympathy--after all, a considerable asset--if they would +realise their own faults. + +Having had, and still having, a practical monopoly in their own +districts, the various companies have adopted a somewhat despotic +attitude towards new and outside enterprise, and, sometimes a disregard +for the requirements of their customers, as well as for the true needs +of the country. Railway affairs centre in River Plate House, and +any attempt on the part of outsiders to establish themselves in the +Argentine is viewed with great suspicion by the financial ring that +rules there. Concessions put forward have been blocked times out of +number by the influence which the ring could exert in Congress. If by +any chance--and this has been more frequent of late--the concessions +have been secured in spite of its opposition, every obstacle is placed +in the way of raising the requisite capital in London--opposition which +the ring is in a peculiar position to make effective. Only recently a +very sound project was floated with the greatest difficulty, even the +debentures failing to realise more than 90 per cent., because one of +the existing lines considered the proposal a trespass on its especial +preserves. Moreover, there seems to be every reason to anticipate the +rapid failure of the new line owing to the rate war which the existing +one will undoubtedly declare. + +This apparent disregard of the needs or desires of their customers is, +perhaps, attributable partly to the unreasonable nature of the demand, +partly to an occasional pursuit of some pet theory of management, +but, in all probability, more largely to the division and conflict of +authority. The management is separated from its central board, not only +by the Atlantic, but by the local board sitting in Buenos Aires. And, +although on the home board there are men whose knowledge of the country +was intimate some years previously, their aspect of the working of +a railway naturally undergoes considerable modification upon their +transference from the executive to the directorate; while the local +board, who are often appointed merely to secure local support and +influence, are rather apt to exercise their power in a vexatious and +capricious manner--more to show their authority than to further the +interests of the railway. As regards the actual working of the lines, in +some cases complaints are made that too much confidence is placed in +the long-haul, long-train theory. There are only a few lines on which +there is any opportunity for or advantage in the very long train, the +agricultural districts centring round the various ports. Owing to the +lack of warehouse accommodation along the line, grain has often to be +loaded into the trains straight from the growers' carts, thus causing +endless delay when trains of immense length stand to be filled. It +often happens, too, if the harvest proves at all good, that, in spite +of Government orders, the rolling stock is quite inadequate for the +traffic, the result being that with the accumulation of work in the +docks, a crop is sometimes kept locally for a whole year before it +can be removed to a port. + +Considerable inconvenience is caused, and will continue to be caused +for some time, by the congestion at the port of Buenos Aires. Control +there has been exercised by half a dozen different boards with no +central authority. The wharfage and warehouse accommodation are quite +inadequate, even if the great savings possible in time and space were +realised. And, lastly, although there is already sufficient confusion +with a one gauge system, there is an immediate prospect of the +introduction of two other gauges. The existing lines there are 5 ft. +6 in. But preparations are already being made for the continuation of +the Central Cordoba (metre gauge) into the port, and possibly of the +Entre Rios (4 ft. 81/2 in.) extension as well. + +The solution to the difficulty is at present very doubtful. Increased +accommodation to a limited extent is quite possible in Buenos Aires +itself, and with an immense outlay of capital an entirely new set of +docks might be constructed there--though this is highly improbable. The +more reasonable course would undoubtedly be to construct new ports or +develop existing ones elsewhere, a course that is already being adopted +by the Southern at Bahia Blanca, and the Entre Rios line at Ibicuy. +There is also a new project floated for the construction of a large +port in the Bay of Samborombon (also on the Southern system), but this +scheme does not meet with much approval in the country, while, for some +reason, the port of La Plata has never succeeded, in spite of every +encouragement. At some time a port will have to be constructed at Mar +del Plata, where the only rock foundation on the whole coast is to be +found. Mar del Plata is the Argentine Brighton, and any commercial +development there is certain of an unfavourable reception. But as sand +and mud are the only base from Santa Fe to Bahia Blanca--in some cases +there being not even firm sand--and as dredging is exceptionally +expensive, no other solution seems reasonable. On the Uruguay River, +and on the Eastern Bank of the Parana, in the South of Entre Rios there +is deep water. But as this only affects the lines of that province and +of Corrientes it has no bearing on the general question of Argentine +transport. + +As a last word, it must be remembered that the present boom in +the country is extremely recent. Argentine has developed in an +extraordinarily rapid manner, and some confusion is excusable. That the +railway and the country will realise and overcome their difficulties +there can be little doubt. And in any case the natural wealth of the +country is so great that in the end it will force a way out, in spite +of obstacles. + +Statistics relating to railways will be found in Chapter VI. + + + + +CHAPTER III. + +INDUSTRIES AND THE LABOUR QUESTION. + + +The labour question in the Argentine Republic is one of great +difficulty. There is really no native labour, certainly none for +industrial purposes. The Gaucho,[1] now degenerated into the peon,[2] +is only available for stock-raising. Agriculture is carried on almost +entirely by colonists of various nationalities, and industries by +Italian immigrants only. There is one exception, the sugar industry +of the north. There conditions are so very different from those in the +centre and the south, that it must be treated as almost a separate +country. While the north-east--the Chaco district--is still in so +uncivilised a state that its possibilities are very hazy. The Quebracho +trade yields very large returns with Indian labour, but Indian labour +is an unknown quantity. Uncivilized Indians still cause considerable +trouble there, and opinions differ considerably as to the possibility +of employing them successfully for cotton growing and other new +enterprises. + + [1] The descendents of the original Spanish settlers, often showing + marked traces of Indian blood. + + [2] Peon is the name applied to all labourers. + +The more important question is that relating to labour for factories, +workshops, and railways in the central part of the Republic, and in the +towns themselves. That a country situated so far from the great centres +of production should continue to import nearly all its necessities as +well as luxuries seems incredible. Yet the tendency is certainly more in +the direction of increased importation than of home manufacture. There +is a tariff of exceptional severity on every conceivable article, but +even this fails to develop industries in the country. Breweries, flour +mills and repairing shops seem to be the only successful growths, with a +few isolated instances, such as canvas shoe factories and similar works. +Even the production of such essentially native goods as "ponchos"[3] has +lapsed in favour of German and Italian wares. While the manufacture of +matches--in the hands of a powerful monopoly, bolstered up by privileges +and an exorbitant duty--was so seriously jeopardised by a strike last +year, that the threat was made--whether seriously or not, cannot be +said--of closing down the works and importing immediately from England +and Sweden. (It is satisfactory to note in this connection that +an English firm promptly stepped forward and made an offer to the +Government that if a reduction was made in the duty, it would undertake +to place on the market, within little more than a month, some millions +of boxes of matches). + + [3] "Ponchos" are the peculiar rugs with a central slit to admit + the head when the "poncho" is used as a cloak. They are used + universally in the country. + +Even those industries, however, that flourish, do so in spite of their +labour. They are all, it will be observed, concerned with the production +of goods that are either expensive or difficult to transport, and only +the direst necessity could prevent their home manufacture. In the +course of last year there were two general strikes (in Buenos Aires +and Rosario) besides numerous small ones. Dock labourers seem to be +continually in partial ferment, and even the most generous treatment +does not prevent railway employees from stopping work occasionally. The +causes of this instability are fairly apparent, though the same cannot +be said of the remedy. + +For various reasons industrial labour is entirely supplied by Italian +immigrants, mostly Neapolitans. The other nationalities who come into +the country engage for the most part in agricultural work, either as +colonists, buying their land, or as tenant farmers on short leases. +Skilled English and other European labour is also employed in factories, +but only for the higher grades of work, and in positions of some +responsibility. Thus the available labour is recruited from the lower +class of immigrants, and from a race not remarkable for stability. + +In the second place, living in the capital is extremely dear, not least +being the price of house accommodation. Although an Italian can satisfy +his requirements at a much lower rate than an Englishman could his, +yet even he can scarcely make both ends meet, while the excess of +expenditure over receipts is particularly galling in the land of +promise. Recently, too, additional grievances have been introduced by +the wholesale eviction of tenants owing to the purchase by syndicates +of whole blocks of buildings, and the subsequent re-letting of them at +immensely increased prices. In the first six months of last year there +were more than eleven thousand petitions for evictions before the +justices. With a discontented and excitable working population, +therefore, as a field for their activities it is not surprising that +the agitators, of whom there is no lack, should be so successful. +Attempts are being made by various large concerns to supply reasonable +accommodation for their employees, and more than one railway has been +particularly liberal in this respect. But it was only a short time ago +that a strike of very serious dimensions was declared in the workshops +of one of the most generous, on the most ridiculous pretext. + +The great danger in all labour troubles in the Argentine lies in the +fact that they are apt to become general and paralyse trade. It is +usually impossible to secure "blacklegs," a circumstance which the +workmen fully realise. Moreover, owing to the peculiar economic +conditions of the country, a strike on the part of the workmen in one +industry means that all the workmen in that industry stop work; and, as +trade is usually in a state of congestion, the difficulties created are +enormous. A dock strike in Buenos Aires is doubly serious, because the +port is already overcrowded, and there is no alternative port suitable. +A match strike, with the present tariff, causes a match famine. A +railway strike is sure to break out only when the year's harvest must +be negotiated. And should any single strike show signs of missing fire, +in all probability the result is a sympathetic strike on the part of +all workmen, including cab-drivers and bakers. + +The problem before the Government is very serious, if, indeed, it is not +a question which it would be wise for the parties concerned to work out +for themselves. Considerable success is reported to have attended the +efforts of the Western Railway, who have instituted a conciliation board +for the mutual consideration of difficulties with their employees. But +unless by some means the cost of living is reduced, it is difficult to +see how satisfactory conclusions can be attained. If prices continue +to rise as, in all probability they will, a rise in wages will be +imperative. This, in the case of railways would mean an increase in +rates, as there are few who are earning more than a reasonable dividend, +while an increase in rates would cause great dissatisfaction to the +whole agrarian population; after all by far the most important in the +country. It is even doubtful whether cereals could stand any heavier +rates than they bear at present. + +The root of the labourer's dissatisfaction lies, as has been said, in +the high cost of living. Unless this can be lowered, there can be no +hope of a final settlement. And the only means of lowering it is a +reduction in the tariff and a greater mobility of trade in the +interior. + + + + +CHAPTER IV. + +FOREIGN CAPITAL AND PUBLIC DEBT. + + +It is not the intention to deal in this work with the market +fluctuations, the arrangements made between provincial banks and +their creditors, nor with any of the financial aspects which these +questions have recently assumed. Such a course would not only be out of +place, but would be of little interest or value, owing to the unstable +state in which the negotiations are at present. The object will be rather +to indicate the part that foreign capital has played in the development +of the country and that played by politics in finance. + +An important fact to realise is that the liberation of the country from +the Spanish colonial system is comparatively recent, and that a people +unfitted in every way for political independence was suddenly put in +possession of a country of quite exceptional richness but absolutely +undeveloped and almost unpopulated. Men with no political experience +nor education found the road open to responsible positions requiring +statesmanlike qualities in an unusually high degree--not only financial, +but diplomatic and administrative ability combined with absolute +integrity. It is sufficiently well known how far they came up to +the requirements. For it is only at the present day that political +morality has found a place in the national executive. In provincial +administration and in the ranks of the deputies it is doubtful whether +it will ever predominate. + +It is a favourite complaint of Argentines that their country is +regarded in Europe as a hot-bed of revolution. They are never weary of +complaining that their claim to be a civilized power is disregarded. In +the absence of a definition of civilization the question must be left +open. But as regards revolutions the European idea is substantially +correct. Argentines have undoubtedly not yet realised a sane conception +of government. + +If those in power fail to convince the country of any sincerity or +appreciation of their responsibilities, the people themselves do not +treat the authority of government with the respect that alone permits +the growth of those qualities of statesmanship whose absence is so very +obvious. + +One improvement, however, must be noted, an improvement of the very +greatest importance. Whereas in former years little respect was paid +to non-partisans, the people have now learnt that it is to everyone's +interest to confine political differences to the actual disputants--to +fight their battles in their own garden, and to leave neighbours at +peace. Capital, therefore, is tolerably safe, especially as the federal +executive is a body which, if not possessed in every branch of the +greatest intelligence or even honesty, is at least controlled by men +who realise their position and have sympathies and knowledge beyond the +limits of their country. + +The considerations just mentioned bear more especially on capital sunk +in land and its immediate connexions, or in industrial concerns. As +regards public debt, the question is more involved. The laxity of public +morality has here the disastrous tendency of making a party temporarily +in power regard the actions of its predecessors as invalid. The +temptation is certainly great. When a foreign loan has been contracted +in the name of a municipality or provincial government, at the expense +of the people at large, but is used purely for party or even private +ends, it is at least comprehensible that an opposing party should regard +the loan as an unwarrantable exploitation of the public, and should +think it justifiable to allow the creditors to suffer instead of their +own countrymen, who were no party to the transaction. The policy and +ethics of such a view are another matter. And it is, as usual, the +honest who suffer. For, if the succeeding party are possessed of higher +views in the sphere of political morality, owing to the necessity of +regarding their predecessors' really fraudulent contracts as binding on +themselves for fulfilment, the profit goes to the malefactors, while the +odium incurred in realising the money to cancel the obligation falls on +the unoffending upholders of honesty. + +The extraordinary feature that impresses itself on the mind when looking +through the history of Argentine loans is the readiness with which +London financiers responded to the invitations. No more remarkable case, +probably, could be found in the whole history of finance than that of +the Buenos Aires Provincial Bank, its absolutely reckless mismanagement +and of the inevitable collapse which followed--resulting, as everyone +knows, in the failure of Messrs. Baring. This catastrophe set back +Argentine progress several years, and it is only now that the recovery +is at all complete. + +But it can scarcely be emphasised too strongly that the recovery is +complete. Argentine national credit is as sound as that of any civilised +power. Indeed, the fact that the national Government undertook the +responsibility of so great a part of the debts of the provinces is in +itself sufficient indication of the Government's policy. With regard to +municipal loans, it must be admitted that as these are regarded nowhere +as other than a highly speculative investment, future irregularities +would fall on the heads of people who had full knowledge of their risks. +But the risks are extremely small compared with those which existed +formerly; and the national executive seems inclined to exert pressure on +recalcitrant bodies, compelling them to adhere to their agreements. In +a recent case, indeed, intervention was necessary, not in the interests +of the financiers, but in that of the municipality, the extraordinary +exactions of the French port-concessionnaires at Rosario, having had +very disastrous effects on that town's development. For once the +municipal authorities were not the only gainers and the people +themselves were the sufferers. + +Before presenting figures of Argentine loans in detail it may be of +interest to show the proportion which was taken up in London. Of the +total raised by the Republic from its emancipation in 1822 until 1904, +amounting to L152,326,460, Great Britain supplied nearly four-fifths, +namely, L125,082,710. This total is made up of the National, Provincial +and Municipal external debts, which amount severally to $540,770,156, +$202,067,716, $24,868,480 gold, or roughly L108,000,000, L40,000,000 +and L4,500,000 sterling, of which England provided approximately +six-sevenths, two-thirds and of the last, all. When it is remembered +that of the capital invested in the country commercially three-quarters +(or 250 out of 326 million pounds sterling) are also British, the +influence which this country has had on Argentine progress cannot be +over-estimated. + +It is a point, by the way, that a preference on colonial produce would +be a preference against these interests of ours in the Argentine as well +as against the 30,000 people of British extraction resident there, of +whom at least one-half must be engaged or interested in the rearing or +exporting of cattle. In grain they would be affected but little. + +In estimating the meaning of this tremendous debt it must be remembered +that much of it is repetition. Not only were many of the loans issued +for conversion of floating and other existent debt, but it will be +noticed that a considerable part of the national debt was contracted +to liquidate the various indebtedness of different provinces. + + + + +CHAPTER V. + +ARGENTINA FROM THE IMMIGRANT'S STANDPOINT. + + +It seems to be the ambition of every new country to secure immigration +at all costs, regardless of the prospects that really exist there, and +also of the true interests of the country. The result of this policy +at its best leads only to a boom, with its inevitable reaction. The +wiser plan of letting the country gradually develop itself, admitting +cheerfully the adventurous spirits who are ready to come without +invitation or advertisement rarely seems to commend itself to colonial +politicians. Argentina at one time seemed more than likely to compete +with Australia and Canada in this respect, trying to allure colonists +with impossible promises of free land and gigantic crops, and only +the untiring efforts of the Englishmen already established there have +prevented that country realising the inevitable consequence. The present +Argentine Government admit the unsuitable nature of the country for +impecunious Englishmen, and confine their attentions to attracting +Italians and other foreigners, for whom the climate and conditions of +labour are certainly more adapted. But even these are beginning to +discover that expectations and fulfilments do not always coincide. +The truth is that, as is heard from all parts of the world, special +knowledge or capital is indispensable in every new country, but that +with these the chances of success in life are considerably greater than +at home. To the Englishman, however, in the Argentine, there is the +additional difficulty of the language--a difficulty which were he +not an Englishman would be almost negligible, for Spanish is an easy +language of which to acquire a working command. + +It is the firm belief of every Englishman, apparently, that certain +skill in athletics of necessity qualifies him for cattle farming. +Although he is physically well enough suited to camp life, the whole +truth is apt to be a disillusionment. The market for athletic young men +is already glutted, and though many estancieros take on an additional +overseer or apprentice to please a friend, in many cases they do not in +the least appreciate bestowing the favour. It must not be supposed that +Englishmen are not wanted on estancias. On the contrary, even Argentines +usually prefer an English manager. The only difficulty is that the +supply of raw material exceeds the demand. The young man who goes out to +seek his fortune is usually one with no qualification but an agreeable +manner and a good physique, desirable enough assets, but not such as to +entitle the holder to an extravagant salary. The wisest plan, therefore, +that an immigrant of this sort can pursue is to go to an estancia as an +apprentice for a nominal salary of twenty or thirty pounds a year, on +a three or four year's contract. Work is very hard, though often the +actual conditions of life are extremely comfortable, but the education +required is thorough and qualifies for a position of majordomo at the +end of the contract. Many men who possess some capital, or expect to +possess it, also go through this training as it enables them to invest +their money wisely, and later to work it economically. + +There are many, however, who find the work and conditions of life +trying, especially on an inferior estancia, and take the first +opportunity offered to change their occupation. The usual change is +to a bank or a railway. Both are regarded as a last resource, because, +although the pay (anything from L100 a year) is considerably higher than +in camp life, expenses are considerably more so; while there is less +chance of promotion because the better positions naturally fall to men +with a special railway training who enter the service from home under +contract. For a really able man there are undoubtedly good prospects +on Argentine railways, and the difference in salary between that of an +employee there and that of one in a similar position at home more than +compensates for the increased cost of living. In Banks the salaries are +much the same as on railways to begin with, but chances of promotion are +said to be less, while the work does not give so many opportunities of +seeing the country, and to many is intrinsically less interesting. + +In business houses there is never a chance of employment, except, of +course, through personal influence. English clerks are employed +very little, and there are no positions corresponding to the large +book-keeping staffs of banks and railways, nor to the assistants, and +secretaries to chiefs of departments, the inspectors and superintendents +of the latter. + +For the Englishman it is very fortunate that the lethargic, and often +untrustworthy character of Latin races requires constant surveillance. +But for the same reason it is obviously impossible for employers to +choose their overseers at random, and a personal introduction is almost +indispensable. In giving this short sketch of the prospects open to the +English immigrant no mention has been made of the immigrant labourer or +artisan. The reason of this is that in this respect Argentine must be +regarded almost as a tropical country, where English labour is out of +the question. Italian and English labour cannot work together, not only +from incompatibility of temperament but because the Italian can work +for considerably less than the Englishman. In addition, the climate in +summer is far too hot for the latter. There are exceptions to be found, +notably in the case of butchers at the freezing works, and that of some +engine drivers, and engine-shop artificers. But, as the drivers are +compelled by law to speak and understand Spanish, they are not numerous. +In any case, there is absolutely no opening for a labourer or artisan, +unless he comes to the country to take up a definite vacancy that has +been offered him. + +Regarded, however, as a country for the Italian immigrant the prospects +are certainly better, although not so dazzling as he is led to believe +in his own country. Such popular phrases as "immense zones which merely +await the strong arm of the colonist for their development" fall, +unfortunately, rather short of the truth. The tendency is to lay all +land possible under alfalfa, only such as is incapable of growing it +being sold for agriculture. Large tracts, nevertheless, are being formed +into colonies by land development companies, and in the past have been +so divided by government, a system which gives good returns to the +farmer. The latter, however, is rather inclined to work his land to +death, often without rotation, and, though actual exhaustion is very +remote, the rest afforded by a year's fallow and leguminous crops is +rendered impossible for a variety of reasons. + +A mischievous result of the financial standing of many of the colonists +is their frequent lapse into the power of the local store-keeper. There +are no branch banks in the camp towns and often no grain dealer apart +from this accommodating tradesman. In return for very elastic credit, +based on crop expectations, he buys the whole yield at his own price, +and, as he has a monopoly of the retail trade as well, he secures a +large profit on both transactions. In his defence it must be admitted +that he runs a very great risk indeed in the credit which he is +compelled to give, and is justified to a great extent in recouping +himself when the opportunity occurs. But the undeveloped economic +system, and the encouragement of settlers without a sufficient backing +of capital, are much to be deplored. In recent years the agriculture of +a whole province threatened to come to an abrupt termination owing +to the complete inability of the colonists to buy or borrow from the +merchants seed for their year's sowing. It was only rescued by the +prompt and wise action of the local railway company who supplied the +grain, on the easiest of terms and without security. The result was, +although, of course, an immediate loss to the company, the salvation +of the province, and the railway's ultimate gain. + +Owing to the enterprise of various people there seems to be a +possibility that the colonist's conservative partiality to cereals +may be overcome. Not only have the possibilities of chicken-farming +been demonstrated, but the co-operative working of a large dairy and +ice-producing plant has already proved a success. The co-operative +movement may indeed open a field, especially in the South, for other +labour besides that of Latin origin. It is true that the Boer Colony has +not been an unqualified success. But the Welsh have thrived in Chubut, +and of the newly opened regions about Nahuel-Huapi residents speak +enthusiastically. Unfortunately there does not seem to be much land +available, and, hitherto, there have been no railway facilities. There +is a paper dealing with the Welsh Colony, published by the Foreign +Office in London. But, apart from the accounts of sporting and +scientific expeditions, there is little available literature. It is much +to be deplored, and in default of an independent work in English the +translation of existing works in other languages would be very welcome. + + + + +CHAPTER VI. + +ENGLISH TRADE. ITS POSITION AND PROSPECTS. + + +It is always difficult to entice commercial men into giving information +of any value regarding their affairs. The seeker after more material +and solid things than figures--after instances and facts rather than +theories--is very apt to be disappointed. The value of the opinions +gleaned was rather impaired when experience showed that success and +complacency, despondency and comparative failure, usually went together. +It is pleasant to be told not to bother about British Trade, that +"British trade is all right." But it is not entirely reassuring when +such lessons as can be derived from statistics and the opinions of less +successful men are largely opposed to this view. + +Some more definite information was, however, available, and from +conversation with people directly concerned with general trade, both +English and Argentines, it was possible to supplement to some extent +the statements, extremely valuable as they are, of our consuls in the +country, as well as the deductions from official statistics. With regard +to consular reports a word must be said. These are often abused by men +of position in trade, and, though their brevity is to be deplored, a +word of protest must be uttered against the inconsiderate and disdainful +criticism to which they are subjected. Moreover, one of the greatest +authorities on Argentine affairs, Dr. Francisco Moreno, an Argentine +delegate on Col. Holditch's arbitration expedition on the Chilian +Frontier, was emphatic in his approval of these reports, even going so +far as to say that he trusted their statements and figures in preference +to those of his own government. + +On every hand there were indications leading to two conclusions, namely +that British trade is losing, or has lost considerable ground, and that +the greater part of the blame is due to the producer or merchant at +home. A superficial glance at import statistics would seem to give the +lie direct to any such assertion. Such strong influences, however, are +at work, that it is only after a careful study of all the circumstances +that anything like a true estimate can be formed. + +Before, therefore, pronouncing judgment upon its present position and +its future, a short examination of the development of our trade viewed +in conjunction with the economic conditions of the country and with the +various interests in competition with ours, is necessary both to explain +how our conclusions were reached, and to assist in the formation of +a juster appreciation of our commercial relations with the country. + +The following statistics give in brief the course of trade in the +Argentine according to official returns for the years 1890, 1895, and +1900 to 1905 inclusive:-- + + +IMPORTS AND EXPORTS FROM AND TO DIFFERENT COUNTRIES. + + 1890 1895 1900 1901 1902 1903 1904 1905 + $1000 $1000 $1000 $1000 $1000 $1000 $1000 $1000 + Gold Gold Gold Gold Gold Gold Gold Gold + Antilles: + Imports ... 86 19 43 106 373 571 505 + Exports 975 1,616 438 366 470 164 282 420 + Belgium: + Imports 10,986 7,441 8,430 8,688 5,484 5,448 9,069 8,727 + Exports 12,003 15,417 17,980 13,457 13,760 20,143 17,566 20,780 + Bolivia: + Imports 85 72 122 138 122 125 108 126 + Exports 296 591 578 541 600 450 392 539 + Brazil: + Imports 3,354 4,095 3,741 4,386 4,583 5,350 6,032 5,328 + Exports 8,442 8,096 6,185 9,702 8,368 8,545 10,727 13,039 + Chili: + Imports 51 41 124 111 213 200 469 669 + Exports 2,188 3,067 870 568 684 1,170 1,440 1,510 + France: + Imports 19,875 9,116 10,897 9,959 9,243 12,708 17,109 21,248 + Exports 26,683 20,337 19,007 28,637 29,587 34,294 30,596 37,594 + Germany: + Imports 12,301 11,162 16,635 16,724 13,229 17,009 24,926 29,083 + Exports 11,566 13,323 20,070 21,479 22,939 26,812 29,522 37,058 + Holland: + Imports 850 103 173 573 622 790 1,007 1,288 + Exports 160 92 3,906 1,753 2,834 4,546 3,500 3,761 + Italy: + Imports 8,663 10,363 14,924 14,736 12,265 14,702 19,127 20,284 + Exports 3,194 3,518 4,304 4,318 4,215 4,338 4,344 6,468 + Paraguay: + Imports 1,724 1,824 1,860 1,767 1,469 1,059 1,569 1,616 + Exports 336 100 161 216 213 173 216 330 + Portugal: + Imports 110 58 78 68 89 213 271 300 + Exports 456 138 369 7 113 101 88 23 + South Africa: + Imports ... ... ... ... 4 62 126 34 + Exports ... 8 3,240 2,891 8,285 9,170 4,941 5,524 + Spain: + Imports 4,302 2,575 3,691 3,912 3,166 3,574 4,797 5,726 + Exports 2,083 1,311 2,699 2,131 2,025 2,035 1,923 2,334 + United Kingdom: + Imports 57,816 39,524 38,682 36,460 36,995 44,826 64,517 68,391 + Exports 19,299 14,694 23,890 29,920 35,084 35,600 36,445 44,826 + United States: + Imports 9,301 6,686 13,438 15,533 13,303 16,684 24,473 28,920 + Exports 6,066 8,947 6,882 9,296 10,037 8,126 10,214 15,717 + Uruguay: + Imports 5,885 736 520 679 744 760 862 1,023 + Exports 5,506 3,290 2,302 3,710 3,673 4,188 5,020 6,705 + Other Countries: + Imports 6,932 1,207 141 175 1,393 7,314 12,265 11,870 + Exports 1,557 25,516 41,711 38,715 36,593 61,119 107,233 126,208 + TOTAL --------------------------------------------------------------- + IMPORTS 142,240 95,096 113,485 113,959 103,039 131,206 187,305 205,154 + EXPORTS 100,818 120,067 154,600 167,716 179,486 220,984 264,157 322,843 + + +While a similar table (calculated in Spanish dollars) gives the following +figures for the principal exporting countries in the year 1822:-- + + United Kingdom $5,730,952 + France 820,109 + Germany, Holland, Sweden and Denmark 552,187 + Gibraltar, Spain, and Sicily 848,363 + United States 1,368,277 + Brazil 1,418,768 + China 165,267 + Havana 248,625 + Chile and Peru 115,674 + ----------- + TOTAL $11,267,622 + + +The contrast between the two tables is sufficiently remarkable; but +before dealing with either, it is necessary to have clearly in mind the +growth and nature of demand. For this reason the immigration returns and +tables showing the development of the railway system are given at this +point:-- + + +ARRIVAL OF IMMIGRANTS IN THE REPUBLIC FROM 1857 TO 1905. + + Years. Number. + 1857-60 20,000 + 1861-70 159,570 + 1871-80 260,613 + 1881-90 846,568 + 1891-1900 648,326 + 1901-1905 536,030 + --------- + 2,461,107 + + Nationalities. + Italians 1,488,084 + Spaniards 507,853 + French 176,670 + British 37,537 + Austrians 42,983 + Germans 33,686 + Swiss 26,690 + Belgians 19,990 + Others 127,614 + --------- + 2,461,107 + + Arrivals in 1905. + Italians 88,950 + Spaniards 53,029 + French 3,475 + British 1,368 + Austrians 2,793 + Germans 1,836 + Swiss 576 + Belgians 263 + Other nationalities 24,827 + ------- + 177,117 + + +The development of Argentine Railways is shown in following table[4]:-- + + Extent of Capital Passengers Freight Receipts Expenditure + Lines in $1,000,000 No. in 1,000 $1,000 $1,000 + Years kilometres Gold thousands tons Gold Gold + + 1857 10 .3 56 2 19 12 + 1865 240 5.3 747 71 563 438 + 1870 732 18.8 1,948 274 2,502 1,356 + 1875 1,956 40.9 2,597 660 5,178 3,009 + 1880 2,516 62.9 2,751 772 6,560 3,072 + 1885 4,502 121.7 5,587 3,050 14,298 8,616 + 1890 9,432 321.1 10,069 5,420 26,049 17,585 + 1895 14,116 485.3 14,573 9,650 26,394 13,846 + 1900 16,563 531.3 18,296 12,659 41,401 23,732 + 1901 16,907 538.3 19,689 13,988 43,866 24,128 + 1902 17,677 560.9 19,815 14,030 43,272 22,975 + 1903 18,404 573.0 21,025 17,024 53,569 27,766 + 1904 19,428 588.5 23,312 20,123 62,558 33,216 + 1905[5] 19,793 [6]626.3 26,634 22,283 71,341 39,155 + + [4] Direccion General de Vias de Communicacion. + + [5] Approximate figures. + + [6] L125,274,000 approximately. + + +The relative importance of the various lines with their nationalities is +as follows:-- + + + Length of line Special + 1904. (Kilometres) Engines Coaches Vans Waggons Waggons + _State-owned Railways:_-- + Andine (5ft. 6in.) 339 18 16 16 504 5 + Central Northern (Metre) 1,122 85 51 43 1,418 74 + North Argentine (Metre) 563 15 26 13 250 27 + ---------------------------------------- + TOTAL 2,024 118 93 72 2,172 106 + + Southern (5ft. 6ins.) 3,980 290 344 261 9,533 426 + Buenos Aires Western 1,197 129 136 148 3,711 -- + B. A. Rosario 1,997 146 188 154 4,982 111 + Central Argentine 1,785 162 208 109 5,199 76 + B. A. Pacific 1,261 100 80 60 2,523 15 + Great Western (5ft. 6ins.) 714 90 54 37 1,258 56 + Bahia Blanca and N.W. + (5ft. 6ins.) 385 20 8 8 286 3 + East Argent. (4ft. 81/2ins.) 161 14 21 8 279 5 + N.E. Argent. 662 36 42 16 340 7 + Entre Rios 758 30 38 19 492 -- + Prov. Santa Fe (French) + (Metre) 1,392 81 112 47 1,852 48 + Centr. Cordoba (N.) 885 80 76 56 1,606 74 + " " (E.) 210 13 20 12 654 -- + Cordoba and Rosario 289 29 55 32 654 21 + N.W. Argentine 196 20 14 8 520 2 + Cordoba and N.W. 153 9 12 4 86 -- + Transandine 175 14 10 10 130 8 + Central Chubut 70 2 6 3 57 -- + ----------------------------------------- + TOTAL 16,270 1,265 1,424 998 34,162 852 + + +In "The Review of the River Plate" the growth of British-owned Railways +is given as follows:-- + + Kilometres. + 1864 25 + 1874 860 + 1884 1,748 + 1894 10,785 + 1904 15,315 + +For the total kilometrage of the year 1904 the same authority gives +18,412 kilometres, a considerable discrepancy from the official figures. +Of the two authorities the government statistics are generally regarded +as the less trustworthy. But whatever the true figures may be, the +proportion owned by British interests will not be lessened by the total +of the more optimistic estimate, which is based largely on unrealised +concessions. And in any case, the economic point to be emphasised is not +weakened, namely the overwhelming preponderance of British influence in +this direction. Moreover, not only has this influence been increasing +relatively to that of competitors, but, absolutely, the increase is +exceedingly great. + +We have, then, in this department of industry a market for goods of +proportions that quite exceed those of any other in the country, the +greatest impetus to its development being given by the admission +into the country of all railway material duty-free. In any estimate +therefore, of the true position of any country's trade, this privileged +demand must be considered. And in estimating future conditions, the +tendency noted in the chapter on railways must be borne in mind, viz., +the tendency to discourage the continuance of the quasi-monopoly of +one country. + +Turning next to the immigration returns, the predominating position +held by the Latin races, and, especially, of the Italian, is at once +apparent. Although in many cases the special requirements of these +people can only be satisfied by the goods produced in their own several +countries, the greater part of the demand for imported goods is for +clothing, and, in the case of the country portion, for agricultural +materials. In both these departments the market is open. On the other +hand, while the greatest attention seems to have been paid to this +market by foreign merchants, the wants of the inhabitants of British +and other Northern extraction living in the far South have not been +studied at all. In this context the following extract from a recent +consular report is of interest. Writing from Puerto Gallegos in +Patagonia the Acting Consular Agent declares:-- + +"German and French exporters are gradually securing the best part of the +trade in consequence of the greater attention shewn by them to the large +importing houses in Gallegos. It is said that the merchant prefers to +order British goods to suit the taste of their farmer clients but so +little attention is shewn to them by the British exporters that they +are obliged to place their orders on the Continent. Many British +firms refuse to attend to orders in Spanish, and their catalogues and +price-lists are almost invariably printed in English." + +From the same report comes a remark of the Vice-Consul at Bahia Blanca +emphasising the energy with which the Hamburg South American Company +fosters the coasting trade. The Pacific Steam Navigating boats pass to +and from the West Coast, but the local trade is scarcely touched by +them. Although a German line does not imply nothing but German trade, +the tendency must, of necessity, be in its favour. + +The question of the nature of demand cannot be over-emphasised. It is +owing to neglect of this that the greatest mistakes are made both in +practice and in argument. Up to 1880 the nation's demands were those of +any immature nation. Subsequently to that date the country began to boom +and the whole economic condition was altered. Whereas previous to that +date the market was for articles for private use, whether domestic, +agricultural, or personal, subsequent to the national awakening private +needs became insignificant compared with those of public bodies. Not +only was the construction of railways commenced in earnest but national +and municipal contracts were issued broadcast. Harbours, sewage and +water-works, lighting, tramways, and every other form of public +enterprise, were initiated from that time onward. But, whereas the +earlier works were largely executed by English firms, of recent +years foreign (in particular Belgian) contractors have secured the +concessions. The methods employed by the latter, however, have been such +as rather to disgust the country with its experiment. The case which +has been causing intense excitement is that of the Rosario Port-works. +The French _concessionnaires_ made a bad job there of a difficult +undertaking. That, however, was little compared with the terms which by +some means they managed to insert into their concession, terms by virtue +of which they were enabled to make the most extraordinary exactions from +everyone who entered the port, regardless of the fact that many of the +wharves were the property of other concerns. On the other hand, the +English firm that constructed the Rosario sewage system, and constructed +it with the greatest thoroughness, were treated to a series of vexatious +interferences culminating in a refusal on the part of the municipality +to pay for the work. + +Besides the above mentioned work, ports have been constructed at Bahia +Blanca, La Plata, Buenos Aires, San Nicolas, Santa Fe, Parana (not yet +completed) and other places, so that some two hundred million sterling +have been invested in works of public utility in a country with a +population at the present time of about five million inhabitants. Apart +from the importance of this development of public enterprises as regards +the nature of imports, its importance is obviously no less in the matter +of their extent. Adding to the capital of public undertakings the +capital employed in trade, the total of commercially invested money was +estimated at the end of 1904 at 326 million sterling; but, if national +provincial and municipal loans are taken into account, the grand total +of foreign capital in the country probably exceeds L450,000,000. This +immense influx of capital naturally caused imports greatly to exceed +exports, but the excess is not perhaps so large as might have been +expected, owing to the high tariff which probably increased the import +of bullion. + +Recently, since the investments have begun to give returns, the balance +of trade has turned, and, whereas in 1890 the sale of exports (in +dollars gold) was to that of imports as 100.82 millions to 142.24, in +1905 the former had risen to 322.84 millions, and the latter only to +205.15. Even then it is hardly credible that exported interest should +have equalled, much less exceeded, the new capital invested, and the +alternative of gold shipments must be admitted. + +We have then a rising tendency in the price of commodities, or a +depreciation of money (quite irrespective, of course, of the depreciation +of paper). The theory of rising prices is, as is well known a favourite +in the States. But in this, as in almost every other case, the +application of an economic theory is rendered very nearly impossible +owing to conflicting influences. + +To return once more to the details of Argentine trade, we found that +the predominating demand had been that of the railways, and that of the +railways by far the greater part is British. + +Apart from inclinations of sentiment or personal partiality, it is only +natural that engines and other material should be imported from England, +as being of a type to which English engineers are accustomed. A very +large proportion of our trade comes under this heading, and, it must be +admitted, the market here is not free. Even so, however, the superiority +or greater suitability--whether in material, construction, or price--of +foreign work in some directions has ousted the British product. For +example, in steel rails England's quota went down one thousand tons in +1905, while that of the States went up fifty-three thousand. So, too, +in such goods as axes and small tools the latter hold the market. On the +other hand, American locomotives have not proved a success--the English +system of running not being that for which they are designed. + +English engineers seem to prefer a solid, well-finished engine, which +can stand accidents, and innumerable repairs. The Baldwin engine is +cheap, but apparently of indifferent finish, and is built on a rigid +frame. The slightest accident to this incapacitates the whole machine, +and, in any case, the locomotive is built for hard use over a short +period, with subsequent scrapping. Neither the traffic nor the capital +of Argentine railways justify such a course. The actual figures of +imports of locomotives for 1905 are--United Kingdom 91, U.S.A. 16, +Belgium 9, Germany 46--increases of 27, 8, 7, and 22 respectively. +English engines are the most expensive. The German engines are largely +those employed in construction. In railway material (not specified) +although England exported to the value of $384,342 gold the increase +over 1904 was $703,548 gold, yet America with an export of only +$470,527, shows an increase of $411,876. Thus even in the privileged +domain of the railway market, there are signs of very keen competition +appearing. This may not prove effective for some time, the connection +between the home contractors and the London board being intimate, and +there is a danger of its possibility being overlooked. + +Another important demand is that for tramway material. In this it is +satisfactory to see that there is a favourable tendency in favour +of English goods. Previously, no doubt, the greater knowledge and +experience in the States enabled them to supply cars and material more +readily than in England, and the possession by Germany of the Buenos +Aires electric works favoured its exportation of the latter. But +recently some Preston cars have been put on the road which give the +greatest satisfaction. The increase in electric traction in England +ought to furnish the experience necessary for the successful development +of this branch of trade. + +In Agricultural machinery the market is absolutely open, and where there +is any opportunity, English firms have undoubtedly succeeded. It is +unreasonable to expect that we should be able to compete with the States +in sowing, reaping, ploughing, and similar machinery, provided as +they are with an experimental field with conditions similar to those +prevalent in the Argentine. But in traction engines the Lincoln firms +outstrip all their competitors. Rushton, Proctor and Co., Clayton and +Shuttleworth, Ransomes, Sims and Jefferies, are names that may be seen +all over the country. The genuine solidity of construction in their +engines, combined with adaptability to the country's requirements, has +for once overcome the overwhelming attraction of cheapness. Considerable +success has also attended their threshing machines, in spite of their +comparatively greater expense and of various other factors in favour of +American machines. + +The case of Agricultural implements is curious. While in axes the +United States have increased their already large export, though under +the heading of spades, picks, &c., their export of 680 tons in 1905 is +8 tons greater than in 1904, the value is L1900 less, while the English +590 tons is 167.5 tons more than in the previous year with an increase +in value of L8080. + +In cotton goods there is again a natural monopoly--the preponderating +Italian influence among the working classes encouraging the trade with +that country in the special line of goods which appeals to them. + +But perhaps the most important factor in international trade is the +nationality of the importers. In 1823 nearly all the merchants in Buenos +Aires were Scotch, and the preponderance of British houses continued +until recent years. Then, however, for various reasons--the development, +perhaps, of the wool trade on the Continent and the allurements of +finance, owing to which many British merchants invested in land and +other enterprises, in preference to the less congenial uncertainties of +trade--a large number of foreign, especially German, houses appeared, +turning the current of trade more in the direction of that country. +Whatever the reasons may have been, at the present moment Germany +is firmly established in the country, and its trade is continually +increasing. It must be added, that although German firms have a natural +preference for dealing with their own country, they are always ready +to do business with English houses provided that the latter make it +profitable for them to do so. + +It will be convenient to deal here with the complaints made by importers +in the Argentine, of English exporters, and the faults that the latter +have to find with the conditions of trade in that country. + +Briefly, the chief complaint made of the English manufacturer and +merchant is lack of adaptability--the well-worn objection that appears +in every Consular report, and is repeated even by tradesmen in this +country. The ways in which he shows his stubbornness may seem trifling, +but their importance is sufficiently great in practice. Price-lists +published solely in English, with those measures and prices which are a +continual nightmare to the foreigner, get-up packing that do not quite +meet local taste, all these are apparently trivial, but they affect the +balance of trade nevertheless. + +In cutlery, English goods have been entirely ousted from the popular +market. The large British population in the country, however, as well as +the wealthier Argentines themselves, who as a rule are extremely partial +to English goods, from socks to agricultural machinery, still insist +on Sheffield blades, which in the best shops are often the only ones +procurable. But the popular demand is for a cheaper article, often +manufactured in the country. This the English manufacturer has +consistently refused to supply, his reasons being, firstly, that he does +not make it, and secondly, that if he did, it would ruin his reputation +for good work. The plan adopted abroad of not fixing the maker's name to +an inferior article would safeguard the reputation which the English +producer undoubtedly does possess. In this connection it is a strange +anomaly that the impression still holds good in England, and seems to +prevail even in other countries, that German goods are of inferior +quality. This erroneous idea does not, of course, apply to such things +as armour plates and machinery. But in the popular mind the impression +created by toys "made in Germany" has spread to all small articles +emanating from that country. If the work of any country deserves this +stigma it is that of America. The undeniable ingenuity and neatness +of American products is, unfortunately, very often combined with bad +workmanship. In Argentine, according to some authorities, disappointed +buyers of American goods are returning to more solid work. Undoubtedly +the field for cheap goods is favourable in that country, the moneyless +colonists being compelled to buy them irrespective of quality. Besides, +there is a delight, to which the Italian is peculiarly susceptible, in +always having something new. A bright and new thing pleases most people +more than a solid article many years old. And in many directions the +yearly improvements and inventions soon reduce the latter to a position +of economic inferiority. + +Turning to the exporters' complaints, there are two which must be +admitted reasonable. In the first place, the economic conditions of the +country as well as the inclinations of the people require exaggerated +credit. + +Nothing, apparently, will alter this, and the merchant who refuses to +take business on these terms must expect to lose it altogether. The +other is one that is capable of removal. The English merchant frequently +complains that he cannot come into touch with his ultimate customers. +The taxes levied on commercial travellers are exorbitant, each province +vying with the other in preventing their entrance. From this it follows +that few firms can afford to send representatives further afield than +Buenos Aires or Rosario, and practically all business is conducted +through the larger importing houses of the capital. This is an +absolutely prohibitive system that is bound to have the most disastrous +effects on the expansion of trade. The intention is no doubt protective. +But in a country that is naturally incapable of any industrial +development, the policy cannot be considered as anything but unwise. + +As regards the travellers sent out by English firms, they are often +inadequately equipped for the work they have to perform. Knowledge of +the language, coupled with knowledge of the article whose sale they have +come to promote, and an ability to quote credit terms offhand in terms +of dollars and kilos, are important. Too much reliance is often +placed on written matter which a busy merchant has no time to read. +A descriptive pamphlet or book is an extremely valuable adjunct to an +obvious price list and an intelligent traveller. But by itself it is of +little value. + +A further point, and one of some importance, is that Argentines expect +immediate delivery of orders. Recently a large English motor car firm +opened an agency in Buenos Aires. The cars were much admired, and as +they were well boomed at an opportune moment, a great many orders were +secured. Owing, however, to considerable delay in delivery, these were +withdrawn, and the orders were transferred to French firms. + +Finally, a word must be said of proprietary articles. In these no fault +can be found with British manufacturers. Soap, lime juice, whisky, +mustard, jam, and even soda water and ginger beer, are among the special +products that may be seen almost anywhere throughout the country, +and this branch of trade is capable of even greater development with +judicious advertising. In particular, jam is invariably liked by +Argentines of all classes, and were it pushed a very large consumption +might follow. At present there is only one firm of any note whose +products are seen in the shops. The same may be said of biscuits, +although both in this and in the former case, the high tariff (about +50% to 60% of the value) would be a great restriction. + + + + +CHAPTER VII. + +THE TARIFF. + + +Argentina is professedly a protectionist country. It is also professedly +Republican, with a philosophic ideal of the greatest good of the +greatest number. The two ideas, however, have not achieved a complete +harmony. This was perhaps inevitable. Curiously enough, the vital +industries of the country have not been favoured in any way by the +fiscal system, which has been used to foster exotics and economic +growths hardly suited to the conditions of the country. + +In the Argentine there can be no question of "Back to the Land"; there +has never been any departure. But until the present chief of the +Department of Commerce began his campaign for a rational tariff, there +seems to have been a tacit assumption that factories constituted wealth. +That the country should remain permanently agricultural was never +advised. It was assumed that it must manufacture, and on this assumption +the national policy was directed. As a matter of fact, there was +probably no reasoned determination at all. Some industries existed +originally before communication was established on the present great +scale with the rest of the world. As time went on these suffered from +outside competition, and protection was invoked and secured. Other +industries were then started speculatively and for them similar +protection was granted. If prevailing opinion is of any value, it was +even impossible for an industry to succeed except by political jobbery. +Even now the evil appears to be very far from removed, and the +difficulties experienced by the English Railway companies are partly +attributable to this cause. These have consistently refused to bribe, +and it may be said that almost without exception they have adhered +to this rule. The nearest approach to this form of persuasion is the +nomination of influential Argentines to the local board of the company, +and the retention of prominent lawyers for nominal services at a fixed +yearly fee. Except for this no attempt is made to secure support in +congress, and in all probability no payment has ever been made or +promised by an English company in return for particular support for +a definite proposal. The great privileges which the railways enjoy, +especially in the matter of tariff, were granted in pursuit of a +declared policy of encouragement to railway enterprise--a policy which +no one there has reason to regret, as without it the country would +never have emerged from its former lethargy. + +With the exception of railway material, which for the most part, comes +in duty free, all manufactured articles pay a very heavy duty indeed. +But, whereas in almost every other country of note, some portion at +least of the raw material is procurable locally, or at least from no +great distance, in the Argentine the most elementary of basic materials +have to be imported. With the exception of wool, grain, cattle, a +special quality of timber, and sugar, there are no raw materials at all +available for industrial purposes. There are no minerals; cotton is a +negligible quantity at present; and fuel is as expensive as labour. Coal +does not exist (at least to a workable extent, if at all); petroleum, +though reported in parts of the Cordillera, is non-existent for all +practical purposes; while wood is found in any quantity only in the +forests in the North, North East, in Entre Rios, and in parts of Cordoba +and San Luis. The expense of carrying this to the capital would be +prohibitive except by boat from the riverine forests. And, in any case, +the wood being slow-growing and intensely hard, it would be manifestly +uneconomical to use anything but the trimmings as firewood. + +We have, then, a country with a highly protective tariff compelled to +import by far the greater part of its fuel, which, though admitted +free, is necessarily burdened with freights prohibitive to economic +industrial development. The Argentine, indeed, may be said to be placed, +geographically, in the worst position possible for such a purpose. +Keeping, then, the question of fuel in mind, the possible advantage +(from the purely economic point of view) must be examined of reducing at +home to the state of finished commodities the raw materials mentioned +above. + +In every case of manufacture, the two obvious economic reasons are +either the ability to produce better or the ability to produce cheaper. +The former is out of the question in the Argentine, because there is no +hereditary or traditional skill, nor special climatic conditions as in +Manchester; the latter, for the same reason, can only be a question of +freight. Any article to be consumed at home, and produced mainly from +native raw material should, _prima facie_, be capable of production at +home for that consumption, granted an adequate supply of labour. But, +for export, general conditions being at best only equal to those in +the importing countries, the only circumstances which could render +home-manufacture profitable would be greater liability to deterioration +in transit in the raw material than in the finished article, or a great +saving in bulk or weight in the latter. + +Taking the raw materials, therefore, in the order given above, the wool +produced or procurable in Argentina is greatly in excess of the present +local requirements. What skill there is in the country for spinning +and weaving is insignificant for practical purposes, the articles +produced being either extremely crude, or quite exceptionally +fine, and consequently expensive. Both are the work of Indians, or +half-castes--who are rapidly becoming a smaller and smaller proportion +of the total population. Passing by as inconsiderable, therefore, the +advantage of home production on the score of special skill, there +remains the question of cheapness. For some goods, special lines of +purely local popularity, which European houses would not make for other +customers, there are points in favour of local production. But in +such things as socks and articles of general clothing, that command a +universal market (with differences only in design), it is found cheaper +to import. It must be added that there is comparatively little demand +for woollen goods at all in the Argentine itself. Though the tariff, +therefore, does not impose a great burden on the people, from its +protective aspect it is encouraging an unprofitable industry. + +The duties are as follows: On spun wool about 11/2d. per lb., valued at +about 7d. per lb., on washed wool 1s. 7d. per lb., the customs valuation +being 7d.; on stockings and socks (all classes) about 50%, on woollen +cloth (pure) about 40%, and on wool and cotton mixed, over 30%. + +Passing over grain, the main manufactured product of which, flour, is +not imported at all, and cattle, which in the frozen meat trade and its +attendant industries form one of the main items of export, there are +left wood and sugar. Of the former, the country produces little for +constructional and industrial purposes, all the natural timber being +employed either for railway sleepers, fencing posts, or for tanning +extract. It is an extremely important business, but there could be no +question of importation, except for intermediate fencing bars (those not +planted in the ground) and for sleepers. Even so the only circumstances +which could render it possible are the inability of the home supply to +cope with the demand, and the consequent rise in price. Recently poplar +has been planted on the islands of the Tigre near the mouth of the +Parana with great success. But the available space is limited there, +though it is quite possible that planting might be continued on +the Parana and Uruguay rivers. The duty on imported soft woods is +comparatively small. + +The one article of home-production left, which was open to foreign +competition, is sugar. The erratic development of this industry in +conjunction with the tariff has been so eventful, and so instructive +from the economic point of view, that a rather lengthy review may be +pardoned. This is practically a paraphrase and condensation of the +extremely interesting, though, at times, somewhat exclamatory article +written by M. Ricardo Pillado, the head of the Division of Commerce +in the Argentine Ministry of Agriculture, 1906. Unfortunately, in +attempting to follow some of the author's calculations it has been found +quite impossible to verify his results or to see how he arrived at them. +In some cases the figures are so obviously impossible in the light of +the data that the only explanation seems to be a misprint. In order not +to sacrifice the continuity of his account, these figures have been +given as they stand. The fact that the article in question appears in a +collection, derived from various sources, and republished officially at +the Ministry of Agriculture, seemed to give additional justification for +its presentation here without emendation. + +Writing at end of 1903, when the Brussels Convention had just condemned +Bounties, and when the original heavy import duties and export drawbacks +were still in force, he makes this preface to a general discussion of +the whole working of the exaggerated protection of the Sugar Industry. + +"The fiscal protection of the Sugar industry, instituted in the year +1883, and maintained up to the present moment in all its intensity, +has been the source of the gravest evils to the Republic, not merely +through its immediate effect and its having admitted and secured the +maintenance of an economic system so detrimental to the country, but +also, in the sphere of credit, through the complications of which it +has been the indirect cause. Every effort, therefore, tending to destroy +to their very foundations the fallacies which have been the mainspring +and origin of its birth and continuance up to the present day ought to +be considered, in my opinion, as an act of patriotism and duty." + +M. Pillado is far from being a free-trader in the accepted English +sense. "The protection which reasonably may be and, I will even say, +ought to be afforded to national industries cannot," he goes on to +say, "be identified with the favours which were lavished on the +sugar industry." Although he is in favour of a moderate and strictly +protective Tariff, he cannot reconcile the prevailing system with any +economic theory whatever. + +The Sugar plantations and refineries are situated in the remote North +West of the country, and the latter were practically in the hands of +two powerful concerns. Owing to the expense of rail transport, under no +circumstances could the sugar be transported to the coast to compete on +equal terms with the imported ocean-borne article, and certainly not, +with the additional freight, in European markets. + +The initial error lay in the assumption that these Northern Districts +round Tucuman were especially adapted by climate and other conditions to +the cultivation of cane. No such natural privilege exists. The origin of +the industry, on the contrary, is to be found in that very distance from +a port which renders its present condition anomalous. Sugar-cultivation +was instituted solely with a view to the satisfaction of local +requirements, and the idea of competition with foreign produce in the +capital was probably never dreamed of. This view is the more probable +when it is remembered that Tucuman lies nearly a thousand miles +from Buenos Aires, while railway communication was not established +until 1888 or even later. + +At that time, however, protection was already in full force. Although +full communication was not established until 1892, and till then goods +had to be transported by cartage, or whatever means the state of the +roads (such as they were) permitted, so early as 1883 the duty was +raised from the existing rate of 25% _ad volorem_, to a specific tax of +5 cents per kilo, at a time when there was only one currency. The impost +being irrespective of quality, the actual burdens resulted as follows: +On refined Sugar valued by the customs at 19 c. the kilo, 261/2%; on white +or granulated with a valuation of 14 c., 353/4%, on raw of 111/2 c. per +kilo, 431/2%. It is obvious says the writer, that the greatest burden fell +on the lower grades, the only ones which the local refineries were in a +position to produce and to offer in competition with imported sugars. + +The year 1885 marked the next stage in the development. Owing to +facilities of transport being absent, Tucuman was in no better position +than before, while the issue in the same year of the decree authorising +a paper currency with the consequent premium upon gold, resulted in a +natural increase in the restrictions on importation. The increase in the +duty was nominally from 5 to 7 c. per kilo irrespective of quality. But +the actual increase resulted in a total of 90% on refined sugar and 108% +on the lower grades. + +The third increase took place three years later, in 1888, when the +import charge was raised to 9 c. gold per kilo on refined sugar, other +qualities being taxed at the old figure. On M. Pillado's estimate this +meant a difference of 268% between the cost of that sugar in bond and +its price to the importer.[7] + + [7] The percentage seems to work out at 219, while the premium + on gold in that year (1888), as given in another official + publication of 1906, was in reality 150 roughly, which would + mean 184%. But the absence of reliable data makes an amateur + result untrustworthy. + +The foregoing is a brief account of the course of taxation introduced +for purposes of protection as described by M. Pillado. At this point he +takes occasion to moralise on the iniquity of the system, and exclaims +that it is a matter of congratulation that the promoters of the industry +did not think fit to produce even further from the great centres, +somewhere on the borders of Bolivia. In emphasising these existing +burdens, however, the writer is merely making a dramatic pause +preparatory to enlarging on the further excess in the institution of +bounties on export. + +The immediate result of this tariff was naturally an immense rise in +the price of all sugar, and subsequently the practical exclusion of the +imported article. The figures cited in the work speak for themselves. In +1884 the total imports of sugar of all classes were 35,000 tons. In 1902 +they had fallen to 155 tons. While the next year saw an importation of +some hundred tons of refined sugar, the other grades were represented by +a total of about 300 lbs. + +We now come to the real interest of the question--the effect namely +which this policy had upon the industry itself and the devices which +the latter adopted to regulate prices. + +In the first instance an unparalleled boom took place. In 1884 the +production was 75,000 tons. In 1895 it was 109,000. In the following +year the sum of 134,417 tons was reached--a production quite in excess +of the country's requirements. The result was that in the words of +M. Pillado, "the refiners began to cry to heaven and to earth for any +solution whatever to rescue them from the asphyxiation which threatened +to overwhelm at one and the same time themselves and their system." + +For the planters, however, Tucuman had become a veritable Eldorado. Two +years sufficed to give a net return four times as great as the capital +invested. As a natural consequence it followed that labour and capital +flowed into the Sugar districts, creating an unprecedented boom and +denuding the other agricultural industries not only of the province +but of the rest of the republic as well of their very necessities of +existence. The effect was felt, apparently even in the capital, so +that "lawyers deserted their profession, workmen their tools, to throw +themselves with a regular fever into an occupation so full of promise." +Works sprang up as if by magic. Palaces were constructed to house the +staffs. Capital was lavished on the industry by individuals and banking +houses alike. No one, in short, took the slightest pains to investigate +the stability of the trade, and investments were made with complete +recklessness. + +While fortunes were being created in the cultivation of sugar cane, +orchards, orange-groves, pasturage, arable land--everything else, in +short--were being either transformed or neglected, and the public +generally was compelled to pay an exorbitant price for its sugar. The +moment had, therefore, arrived for a reduction in the import duties, +and in the price of the article. That, however, was not the view of the +interested parties. "If," they said, "by any misfortune this year's +harvest should prove so good as the last" a worse evil would befall. +Considering that private mortgages amounted to some five million +dollars and that the total indebtedness of the industry, in spite of +its abnormal prosperity, was no less than twenty million, the gravity of +the situation was not exaggerated. A bad harvest would be insufficient +to satisfy the claims of creditors. A good harvest would cause a +tremendous fall in prices and consequent disaster. + +It is not surprising that there was formed in 1895 the "Union +Azucavera," or Sugar Trust, with the avowed object of taking over +the entire production of all the refineries and determining prices +for home consumption and export. + +Unfortunately, however, for the success of the venture, some concerns +were not in the precarious state to which the majority had been reduced. +By dint of better management and through other causes they still +succeeded in maintaining substantial returns. These refused to enter +the Trust--or Kartel more strictly--and the result was a more or less +complete failure. + +Two combines were instituted, nevertheless, the above mentioned +"Union" (in a modified form, no doubt) and a body known as the "Centro +Azucarevo." These concerns devoted themselves with energy to the +solution of the problem of the surplus, and, as was to be expected, the +easiest seemed to be that supplied by political means, the president +of the "Union" being also president of the Chamber of Deputies. So +successful were their efforts that in 1897 a bounty of 12 c. per kilo +was sanctioned, raised for the next year to 16 c. To pay for this bounty +an Inland Revenue tax of six cents paper per kilo was declared on all +sugar home or imported. As in countries nearer home, the bounty system +was an attempt, a costly attempt, to market a commodity which in normal +circumstances was absolutely incapable of meeting its competitors. +Argentine sugar under the most favourable conditions could not, and +never was expected to, compete in the open market with that of other +countries. In the circumstances it must be admitted that the whole +scheme was merely an organised exploitation of the public in the +interests of a weak industry and certain speculative financiers. "What +public interests," exclaims Mr. Pillado, "what benefit for the community +could be cited to warrant a contribution from the country at large of +$40,000,000 in five years as a gift to the exporters of sugar?" + +Of the $39,850,000 levied, $25,250,000 were given as a free gift to the +exporters, only $14,600,000 finding their way into the exchequer. + + + + +Statistical Appendix. + + +IMPORTS, UNDER PRINCIPAL HEADS--VALUE IN $1000 GOLD. + + 1890. 1895. 1900. 1905. + Live-stock 400 611 364 1,307 + Food stuffs + Animal foods } 984 1,755 2,242 + Vegetable foods and fruits } 539 633 960 + Spices and condiments } 1,053 590 866 + Legumes and cereals } 1,607 1,701 2,556 + Substances for infusions and } 16,411 + hot beverages } 5,801 5,335 6,093 + Flour, macaroni, fancy breads, } + fecula } 428 436 820 + Tobacco and applications 2,554 2,293 3,147 4,455 + Drinks--Wines } 7,304 5,637 6,596 + Spirits and liquors } 12,990 1,301 1,284 2,159 + Sundries } 211 356 411 + Textiles, raw and manufactured + Silk } 1,254 2,485 2,602 + Wool } 7,650 7,141 10,967 + Cotton } 30,024 20,309 19,536 27,066 + Sundries } 8,238 8,433 5,582 + Oils--Vegetable, mineral, etc. -- 3,193 4,194 5,556 + Chemical, medicinal, and pharmaceutical + substances and products } 3,875 2,429 3,760 6,275 + Paints and dyes -- 789 865 1,441 + Timber: In bulk } 3,295 5,500 11,799 + Wrought } 7,399 739 1,540 2,368 + Paper and applications + Paper and pasteboard } 1,335 1,924 2,272 + Applications } 3,628 678 1,001 1,861 + Leather and applications 1,704 641 1,244 1,796 + Iron and applications + Raw material } 5,696 9,088 14,814 + Machinery and agricultural } 48,109 + implements } 1,202 1,861 -- + Iron and steel manufactures } 4,701 8,104 11,357 + Agriculture -- -- -- 16,532 + Locomotion and Conveyances -- -- -- 23,362 + Other metals + Unwrought -- 594 1,262 1,896 + Manufactured -- 846 2,080 3,998 + Stone, clay, glass + Raw material } 6,375 7,120 14,355 + Manufactured } 10,385 1,102 1,772 3,111 + Electrical supplies -- -- -- 2,034 + Sundry articles and manufactures 4,955 1,881 3,321 5,428 + ------- ------ ------- ------ + Totals 142,402 95,096 113,485 205,154 + + +EXPORTS, UNDER PRINCIPAL HEADS--VALUE IN $1000 GOLD. + + 1890. 1895. 1900. 1905. + Live-stock products } 74,620 71,253 141,042 + Live-stock } 9,052 5,942 7,189 + Meat, hides, wool, etc. } 61,306 60,352 61,084 122,026 + Manufactured animal products } 4,367 3,568 10,148 + By-products } 857 659 1,642 + + Agricultural products } 41,448 77,426 170,235 + Raw material } 39,085 73,045 161,188 + Manufactured products } 34,590 1,960 2,952 5,584 + By-products } 402 1,428 3,462 + + Woodland products 1,413 2,161 3,508 7,125 + Products of the chase 346 272 990 790 + Mineral products 673 338 262 261 + Other products and sundries 2,488 1,316 1,158 3,388 + ------- ------- ------- ------- + Totals 100,818 120,067 154,600 322,843 + + +EXPORTS OF FROZEN MEAT AND JERKED BEEF. + + Other frozen and + Preserved Meat + JERKED BEEF. FROZEN BEEF. FROZEN MUTTON. and Tongues. + Value Value Value Value + Years. Tons. $1000 Tons. $1000 Tons. $1000 Tons. $1000 + gold. gold. gold. gold. + 1896 45,907 3,217 2,997 119 45,105 1,804 3,288 356 + 1897 36,238 2,466 4,241 169 50,894 2,035 2,414 255 + 1898 22,242 2,116 5,867 234 50,833 2,393 3,154 313 + 1899 19,164 2,038 9,079 950 56,627 2,265 3,322 334 + 1900 16,449 1,979 24,590 2,458 56,412 4,512 3,175 415 + 1901 24,296 2,879 44,904 4,490 63,013 5,041 3,047 391 + 1902 22,304 2,647 70,018 7,001 80,073 6,405 4,729 496 + 1903 12,991 1,542 85,520 8,151 78,149 6,251 7,354 720 + 1904 11,726 1,391 97,744 9,774 88,816 7,089 7,249 704 + 1905 25,288 3,738 152,857 15,285 78,351 6,268 8,488 760 + + +EXPORTS OF CATTLE, SKINS, AND WOOL. + + CATTLE. SHEEPSKINS. + Value 1000 Value + Years. 1000's. $1000 gold. Tons. $1000 gold. + 1896 382 6,543 36 4,061 + 1897 238 5,018 37 4,094 + 1898 359 7,690 42 6,194 + 1899 312 6,824 41 9,308 + 1900 150 3,678 37 7,472 + 1901 119 1,980 41 7,339 + 1902 118 2,848 41 8,487 + 1903 181 4,437 41 10,132 + 1904 129 2,852 37 8,676 + 1905 262 5,160 30 9,483 + + SALTED CATTLE DRY CATTLE + WOOL. HIDES. HIDES. + 1000 Value 1000 Value 1000 Value + Years. tons. $1000 gold. tons. $1000 gold. tons. $1000 gold. + 1896 187 33,516 29 4,598 21 6,600 + 1897 205 37,450 27 4,605 29 8,596 + 1898 221 45,534 29 5,171 23 6,887 + 1899 237 71,283 28 5,334 23 8,001 + 1900 101 27,991 26 5,285 24 8,159 + 1901 228 44,666 28 5,281 26 8,848 + 1902 197 45,810 35 6,384 26 8,822 + 1903 192 50,424 28 5,360 23 7,787 + 1904 168 48,355 29 5,267 22 8,256 + 1905 191 64,312 49 9,147 24 9,929 + + +EXPORTS OF WHEAT, MAIZE, AND LINSEED. + + WHEAT. MAIZE. LINSEED. + 1000 Value 1000 Value 1000 Value + Years. tons. $1000 gold. tons. $1000 gold. tons. $1000 gold. + 1896 523 12,830 1,570 15,594 229 6,856 + 1897 101 3,470 374 5,478 162 4,996 + 1898 645 22,368 717 9,274 158 5,420 + 1899 1,713 38,078 1,116 13,042 217 7,402 + 1900 1,929 48,627 713 11,933 223 10,674 + 1901 904 26,240 1,112 18,887 338 16,513 + 1902 644 18,584 1,192 22,994 340 17,840 + 1903 1,681 41,323 2,104 33,147 593 21,239 + 1904 2,303 66,947 2,469 44,391 880 28,359 + 1905 2,868 85,883 2,222 46,537 654 26,233 + + +THE DEVELOPMENT OF AGRICULTURAL INDUSTRY 1895-1905. + +CULTIVATED AREA IN THOUSAND HECTARES.[8] + + Other + Years. Wheat. Linseed. Maize. Hay. cultivations. Total. + 1895 2,049 387 1,244 713 497 4,892 + 1896 2,500 360 1,400 800 510 5,570 + 1897 2,600 350 1,000 900 522 5,372 + 1898 3,200 332 850 1,067 533 5,983 + 1899 3,250 355 1,009 1,268 545 6,427 + 1900 3,379 607 1,255 1,511 557 7,311 + 1901 3,296 782 1,405 1,631 567 7,683 + 1902 3,695 1,307 1,801 1,730 580 9,114 + 1903 4,320 1,487 2,100 2,172 606 10,685 + 1904 4,903 1,082 2,287 2,503 648 11,424 + 1905 5,675 1,022 2,717 2,983 682 13,081 + + [8] One hectare = 2.47114 acres. + + +THE CULTIVATED AREA IN THE YEARS 1895-1905 COMPARED. + + Census, Agricultural + 1895. Statistic, 1905. Increase. + Products. 1000 hectares. 1000 hectares. % + Wheat 2,049 5,675 176.9 + Linseed 387 1,022 164.0 + Maize 1,244 2,717 118.4 + Barley 54 58 7.7 + Hay 713 2,983 318.4 + Tobacco 15 19 22.7 + Sugar cane 61 65 7.3 + Vineyards 33 53 59.0 + Cotton 1 4 397.4 + Pea nut 13 29 119.0 + Potatoes 21 40 91.0 + Beans 20 24 18.3 + Vegetables } 39 } + Tapioca } 48 5 } 1.8 + Spurge } 3 } + ---- ---- + Rice } 3 } + Oats } 51 } + Common rye } 2 } + Canary-seed} 156 21 } 57.4 + Coffee } 0 } + Forests } 166 } + Fruits 71 87 21.9 + Sundries -- 3 -- + ----- ------ ----- + Total 4,892 13,081 167.4 + + + + +Index + + + A + + Agricultural implements: + Importation of English, 36 + United States, 36 + + Agricultural machinery: + English importation of, 36 + United States importation of, 36 + + Agriculture, Effects of undeveloped economic system on, 23, 24 + + 'Alfalfa,' Cultivation of, 2 + + Antilles, Trade with, 27 + + Axes and small tools, U.S. importation of, 34 + + + B + + Bahia Blanca, 33 + + Bahia Blanca, Docks at, 10 + + Banks, Employment in, 22 + + Belgium, Trade with, 27 + + Boer colony, 24 + + Bogus companies, 4 + + Bolivia, Trade with, 27 + + British houses, Decrease in the number of, 37 + + Breweries, 13 + + Buenos Aires, 1, 10, 33 + Congestion of port of, 9 + Province of, 4 + + Business Houses, Employment in, 22 + + Brazil, Trade with, 27, 28 + + British and Northern immigrants: their wants not studied, 31 + + British exporters, Slackness of, 32 + + + C + + Canals, 4 + + Capital, Influx of foreign, 33 + + Cereals, growth of, 2 + + Chaco district, 12 + + Chaco, The, 3 + + Chicken farming, 24 + + Chili, Trade with, 27 + + China, Trade with, 28 + + Chubut, Welsh colony in, 24 + + 'Colonists,' 2 + + Concentration of Trade in Buenos Aires, 1 + + Congress, Tone of, 7 + + Consular reports, Moreno, Dr. Francisco on, 25, 26 + + Cordoba, Province of, 3 + + Corrientes, 3 + + Cotton goods, Italian importation of, 36 + + Cotton growing, 3 + + Credit, exaggerated, 38 + + Credit, Soundness of National, 18 + + Cultivated area in Argentina, Amount of, 56 + + Cutlery, English loss of market for, 37 + + + D + + Drainage system, 4 + + + E + + 'Empresas,' The, 6 + + Englishmen, Prospects for, 20, 21, 22 + + Entre Rios, 3 + + Estancias, 2, 3 + + Estancias, employment on, 21 + + Estancieros, 2 + + Exports, Value of, 54, 55 + + + F + + Flour mills, 12 + + Foreign capital, Important part played by, 16 + + Foreign influences, Jealousy of, 7 + + France, Trade with, 27, 28 + + Fruit cultivation, 3 + + Fuel, Scarcity of, 42, 43 + + + G + + Gaucho, The, 12 + + Gauchos, 2 + + Gauges, Diversity of, on Argentine railways, 10 + + German houses, Increase in the number of, 37 + + Germany, Trade with, 27 + + Gold in the Argentine, Scarcity of, 4 + + Government management, character of, 7 + + Government, want of stability of, 17 + + + H + + Hard-woods, growth of, 3, 42, 44 + + Havana, Trade with, 28 + + Holland, Trade with, 27 + + Housing-accommodation, 14 + + + I + + Immediate delivery, Expectation of, 39 + + Immigrants, Attempts to attract, 20 + + Immigrants, Nationalities of, 28 + + Immigration of agriculturalists with capital needed, 2 + + Immigration, Preponderance of Latin races, 31 + + Importation, Tendency in the direction of increased, 12 + + Imports, Value of, 53 + + Inadequacy of rolling stock, 9 + + Interests, Rates of, 6 + + Inundations of the Argentine, 4 + + Italian immigrants, attempts to attract, 20 + Prospects for, 23 + Their employment in industries, 12, 13 + + Italy, Trade with, 27 + + + J + + Jobbery, Political, its necessity for success of any enterprise, 41, 42 + + + L + + Literature, Scarcity of, on the Argentine, 24 + + La Plata, 33 + + Loans, Argentine, easily raised, 18 + Their distribution, 19 + Their size, 19 + + Locusts, 3 + + + M + + Mar del Plata, 10 + + Matches, Manufacture of, a monopoly, 13, 15 + + Monopolies, Railway, Effect of, 8, 9 + + Morality, Public, low standard of, 16 + + Municipal loans, a speculative investment, 18 + + + N + + Non-partisans unmolested, 17 + + + P + + Parana, 33 + + Paraguay, Trade with, 27 + + Parana, River, 4 + + Peon, The, 12 + + Piedmontese and Basque 'colonists,' 2 + + Pillado, M., his disagreement with present economic policy, 46 + his estimate of amount of tax on sugar, 47 + of its effects on the sugar industry, 48, 49, 50 + + 'Ponchos,' Importation of, 13 + + Ports, Construction of, 33 + + Portugal, Trade with, 27 + + Precarious nature of business in the Argentine, Effect of, 1 + + Preference on colonial produce as affecting the Argentine, 19 + + Prices, Inflation of, in the Argentine, 1 + + Property, Division of, 3 + + Proprietary articles, British trade in, 39 + + Protective tariff, Origin of, 41 + + Public debt, Laxity of morality as regards, 17 + Its causes, 18 + + Public works, Demands of, 32 + Mistakes in connexion with, 33 + + + Q + + Quebracho trade, employment of Indian labour in the, 12 + + + R + + Railways, Dividends of, 6 + + Railways, Employment on, -- + + Railways, Growth of, 29 + Relative importance of, 30 + + Railways, Growth of British owned, 30, 31 + + Railway material, Importation of English, 34, 35 + United States, 34, 35 + + Railway system, 4 + + Raw material, Argentine naturally exclusively a producer of, 7 + + Raw materials, Scarcity of manufactures, 42 + + Rents, Rise of, in Buenos Aires, 1 + + Rivers, Absence of navigable, 4 + + + S + + Samborombon, Bay of, project of new port in, 10 + + San Nicolas, 33 + + Santa Fe, 33 + + Shoe-factories, canvas, 13 + + South Africa, Trade with, 27 + + Spain, Trade with, 27 + + Store-keepers, Power of the, 23 + + Strikes, 13, 14, 15 + Cause of frequency of, 15 + + Sugar industry, The, 3 + + Sugar, manufacture of, 45, 46, 47 + + Sugar Trust, The, 49, 50 + + + T + + Tariff, Effect of high protective, 3, 12 + + Timber, Production of, 44 + + Traction engines, Supremacy of Lincoln firms in, 36 + + Trade, British, losing of ground, 26 + + Trade, Difficulty of obtaining information about British, 25 + + Tramway material, Importation of English, 35 + United States, 35 + + Travellers, Exclusion of, 38, 39 + + Travellers, Inadequate equipment of English, 39 + + Tucuman, Centre of sugar manufacture, 46 + + + U + + Under-population of the Argentine, 2 + + United Kingdom, Trade with, 27, 28 + + United States, Trade with, 27, 28 + + Uruguay, River, 4, 10 + + Uruguay, Trade with, 27 + + + W + + Wealth, Natural, of the country, 11 + + Welsh Colony, 24 + + Wool manufacture, 43, 44 + + + * * * * * + + + Transcriber's Note: The following amendments were made to the text: + + Page Original Word(s) Amendment + ---- ---------------- --------- + 2 the the the + 4 Parana Parana + 10 Parana Parana + 23 accomodating accommodating + 23 monoply monopoly + 26 1896 1895 + 29 Commuuicacion Communicacion + 31 emphasiased emphasised + 33 Santo Santa + 34 that the that of the + 36 monoply monopoly + 41 industuries industries + 42 Cordoba Cordoba + 49 mortages mortgages + 49 sitnation situation + 60 Cordoba Cordoba + 62 Parana Parana + 63 Santo Santa + + + + + +End of Project Gutenberg's The Argentine as a Market, by N. 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