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diff --git a/39715.txt b/39715.txt new file mode 100644 index 0000000..14e3aa6 --- /dev/null +++ b/39715.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: 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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