The Amazing Argentine Part 15

The Argentine has already made shots at industry building. Tangible signs of an industrial future were visible on many occasions during my tour. Tall and smoking chimneys and busy factories for tinned meats, clothing, and boots were evidences of the start already made. Before, however, an advance can go towards full development there must be a more definite scheme of working, and a clearer apprehension of the end in view. There are, for example, greater possibilities for brewing and distilling. A recent census showed that these two activities engaged about 160 factories. Sugar, too, has proved for itself that when worked on proper lines it is a most profitable industry. Sugar-canes, formerly exported for others to refine, are now refined in the country, where the product finds a ready market.

It would be well-nigh hopeless for Argentina to attempt the introduction of industries to compete in her own market with well-established foreign industries of the same kind without the aid of tariff protection. This might mean a temporary loss in revenue by checking imports; but compensation would come through the success of the home industry. At the present time Argentina exports in raw wool over 10,000,000 worth annually. She imports woollen goods worth nearly 3,000,000. Her imports are increasing and her export of raw material decreasing. In ten years the latter fell considerably in actual bulk, through the rush to make quicker money from meat. Meanwhile, the question arises as to why Argentina should not prepare and manufacture woollen goods for home needs? The existing market is a large one. Textile industries already exist. They are few, but the fact that the number of establishments has increased is a clear proof that textile industries can be profitable.

The opportunities here presented for the investment of capital are invaluable. There is room for new and increasing enterprises in a growing country with many years of growth before it.

It is essential to all industrial expansion that a country's credit should be good and its currency stable. Argentina is well off in this respect. Contrasted with some other American republics, in which revolution, revolt, and financial distress are painfully frequent, Argentina is a political and financial paradise. This stability, if not in itself an inducement to the investment of capital, is at any rate a guarantee that capital may be invested with safety. And in these days safety itself is a big inducement. Paper dollars form the everyday currency of the country. Careful provision has been made to establish the paper in circulation on a definite gold basis. Since the Caja de Conversion, the Government inst.i.tution for the issue, exchange, and conversion of the paper currency, was established in 1899, the paper dollar has always been worth $.44 gold (between 1s. 8d. and 1s. 9d.).

Certain specified resources are appropriated for the formation of a conversion fund, which guarantees the paper currency.

During the latter part of 1913 there was a considerable shipment of English sovereigns to the Republic. Under the Pellegrini Law pa.s.sed in 1902 the Caja de Conversion must hold in gold an equivalent to the paper money in circulation. Indeed, the National Conversion Office, the National Bank of Argentina, the London and River Plate Bank and other banks had in June, 1913, an acc.u.mulation of gold amounting to 67,188,039. The gold in the Caja de Conversion began with the insignificant sum of 568 on December 31st, 1902; in 1904 it was just over 10,000,000; the next year it was up to over 18,000,000, and on June 30th, 1913, it was 53,306,866.

Argentina has a number of well-established banks, affording many facilities for the development of trade and industrial enterprise. One of the princ.i.p.al, the Banco Hipotecario Nacional, makes a feature of special loans for building and land improvements. Its loans are made on the mortgages of property by the issue of bearer bonds in lieu of cash to persons mortgaging properties to the bank. It need not be feared, therefore, that industrial enterprises of reasonable prospects will starve for the want of financial credit during the difficult years of inauguration. On the contrary, there is a good supply of money waiting fresh outlets. Bankers realise that it is to their own as well as to the country's advantage to have a wide field of financial operations. They have the money if others have the enterprise and the initiative.

The point has now been reached at which manufactories might well be harnessed to agriculture not only for the fuller working of Argentina's resources, but for remedying some of the social difficulties that have arisen through her relying too much upon one source of wealth.

CHAPTER XXII

THE NORTH-EAST COUNTRY

Although travellers in the Republic usually visit Rosario, it is seldom they devote much time to studying the full capabilities of the province of Santa Fe, of which Rosario is the chief town. Yet Santa Fe and Corrientes to the north, and Entre Rios to the east, deserve much more than pa.s.sing recognition.

Though in the north of Santa Fe, towards the region of the Chaco, there are thick forests, the southern part is treeless, except for the ombu, and is a plain with rich pasturage and soil. Along the side of the province runs the Parana River, which can be ascended by flat-bottomed stern wheel vessels for many hundreds of miles; and from ports like those of Santa Fe and Villa Const.i.tucion much agricultural produce in maize, wheat, linseed, and barley are dispatched. The sugar industry is gradually creeping into Santa Fe province. Nearly fifty flour mills have been erected, and there are also sawmills, meat preserving factories, and works for quebracho extracts. Though railways are penetrating in all directions through the province, having at the present time 3,000 miles of lines, the River Parana is, and long will be, the chief highway, because circ.u.mstances in the old times led to the princ.i.p.al towns being constructed on its banks, and because some of its tributaries are also navigable for a considerable distance.

The Parana River stretches away north into Corrientes. There are places with tremendous areas of well-watered pastures; but the farther north one journeys the more the country becomes swampy and covered with heavy forest. The vegetation is tropical, and parrots with gay plumage disturb the silence of the woods with their shrieks.

It is here that the forest Indians are to be found, particularly the Tobas and the Matacos. Formerly the tribes kept to their own territory; but with the coming of the white man, and particularly the importation of Russians, Poles, and Scandinavians to work in the lumber camps, this custom has gradually been broken down. The Indians resent the presence of the intruders, and there is many a black story of ma.s.sacre. The forest Indians cannot be induced to work in the hewing of timber, but missionaries are doing a great deal in persuading them to take to farming and raising crops of maize or bananas.

The Indians near the towns on the Parana River are taking to wearing European clothes. In the time of the sugar harvest in the west they will work for a month or so, but on their tramp back of several hundred miles they frequently fall out with one another, and there is fierce fighting and murdering of which the outer world never hears. Far in the forests, up to the present but little penetrated, the Indians are found in their original state, naked save for a loin cloth, producing fire by the rubbing of sticks, still utilising bows and arrows in warfare, and following the practice when an enemy has been slain of cutting off his head and using the skull as a drinking bowl.

[Ill.u.s.tration: THE LONGEST GIRDER BRIDGE IN THE REPUBLIC, NEAR SANTA Fe.]

All this may seem to suggest that Corrientes is a somewhat forbidding province, especially as much of its territory is marshy. For instance, Lake Ibera and its marshes covers an area of something like 15,000 square miles. The vegetation is dense, the climate is bad, and there is little to attract man unless he be a sportsman. But so vast is the province that there are wide areas which are very productive, because the province is well provided with rivers and streams.

There are in the province about 5,000,000 head of cattle, over 3,000,000 sheep, and about 600,000 horses. Besides cattle, there are the timber trade and the sugar industry, also tobacco growing, to be counted amongst its sources of revenue.

It was only in 1908 that the province of Entre Rios entered the Republic. As will be gathered from its name, the province lies "between rivers," the Parana and Uruguay, both of which are navigable for many hundreds of miles. There are many smaller rivers which, although not much good for traffic, are most useful in watering the country. Entre Rios has as fertile a soil as will be found in any part of the Republic.

The country is more picturesque than can be said of Argentina as a whole, and with its many farms it is often reminiscent of England. In the north there are extensive forests; indeed, one-fifth of the province is covered with valuable timber. Agricultural products and live stock are, as elsewhere, the chief source of prosperity.

In the more pleasant undulating parts of the province there are many prosperous _estancias_, often in the possession of Englishmen. Here, more than in any other place in the Republic, are to be found small freeholds owned by Austrian, Poles, Russians, and Scandinavians. The Spanish and Italian Argentines seem to have left most of this area to north Europeans, who in many cases retain the costumes of the countries from which they emigrated. Formerly Entre Rios had a bad name because of the stories of the way in which the old settlers shot every Indian on sight. That, however, is a page now far back in the history of the land.

Until comparatively recent times the only communication with the outer world was by means of the rivers. Now, as mentioned, Entre Rios has a fine railway system. The capital of the province, Parana, is a happy-looking, clean town, with exquisite gardens and, of course, the usual theatre and band.

Most of the meat extract supplied to the world by the Liebig and Bovril companies comes from Entre Rios. Both these companies own great _estancias_ to breed cattle for the purposes of their business. Liebigs, which afterwards changed its name to Lemco, practically built the town of Fray Bentos, where there were schools, public halls, and, altogether, a model settlement. Subsequently, however, the works were removed to Colon. The Lemco company own eighteen great estates, covering 1,750,000 acres with nearly 400,000 head of cattle. The area of their estates is nearly equal to that of Kent and Surrey.

It was as far back as 1850, long before the frozen and chilled meat trade came into existence, that Baron Liebig saw the possibilities, instead of killing cattle merely for hides and tallow, of boiling down the meat for extract. The first exportation of 80 lbs. was in 1865, and it was sent to Germany.

The Bovril company, in Entre Rios and the adjoining province of Santa Fe, have nearly half a million acres of freehold and a quarter of a million acres of leasehold land. On their estates they have about 150,000 cattle. Most of the cattle are of the Durham breed. Between 80,000 and 100,000 animals are slaughtered annually, princ.i.p.ally at Santa Elena; and whilst the meat is sent to England to be converted into meat extract, the hides and tallow are dispatched to Buenos Aires, where they are sold.

Altogether there are about a quarter of a million beasts slaughtered in Entre Rios each year. As in other parts of Argentina, all the slaughter-houses are under Government inspection; indeed, every carcase is subjected to examination before it is pa.s.sed. Entre Rios is still a long way from the end of its journey as a meat producing country.

CHAPTER XXIII

PROSPECTS AND PROBLEMS

Argentina is a land without ideals. Religion is at a discount, and as yet nothing worthy of the world's note has been produced in art or literature. There is no national conscience. It is a country for money-making, and, although I may have been unfortunate in the men I met, I encountered few Argentines who had thought beyond money.

The Argentines are a people numbering seven millions--drawn from the st.u.r.dier sections of the Latin race, reinforced by adventurous spirits from other races, and backed by the finance of London--and their ambitions are large. Argentina is a country to count in the new regions devoted to providing the food of the world; and the end of its possibilities is many generations away.

The travelled Argentine is conscious of the shortcomings of his countrymen when engaged in the battle of commerce with men of other nations. So he sees the need of a helping and guiding hand from other folk, particularly British. Gradually, however, other countries are getting their fingers into the pie: Germany and France. The United States is making a big endeavour, but, though the North Americans lack nothing in energy, they have completely failed to win the confidence of the Argentines.

Yet the educated Argentine feels, as foreigners are quick to notice, that the amalgam of races, with the Italian leavening the whole, is creating a new people. The Argentine lad is quick-witted and adaptable, and he is alert to learn the ways of the foreigner. So, though it is true enough that you find Englishmen at the head of many of the great concerns, the Argentine is pushing his way in and sometimes beating the foreigner at his own game.

The new spirit is revealed in the way the young Argentine is taking to sport besides horse-racing: rowing, tennis, and particularly football.

As every child born in the Republic is by law an Argentine, it is subject for notice that many young English fellows native born are more Argentine than those of Spanish and Italian parentage. It is inevitable that, proportionately, the strictly Spanish population will decrease.

But the Spanish language remains. It has a hold in the Western continent from Mexico to Patagonia.

Notwithstanding all that has been accomplished, one has only to look at a map to realise this region is to be the home for the overflow of Latin Europe, and that the scope of commerce at present is slight compared with its probable dimensions within a few years. Having some acquaintance with the great business countries of the world, I say unreservedly that if I had a son, and intended to put him into commerce in the hope of his making a fortune quickly, I would have him taught Spanish and send him to South America.

However, there is a slowly acc.u.mulating public opinion that Argentina can do without the foreigner, that the hour is coming when she should no longer be exploited in order that large dividends be paid to investors who live on the other side of the Atlantic. There is a sort of sub-conscious feeling that it is the genius of the Argentines themselves which accounts for the sunshine, the rich soils, the general productivity. Evidence of that state of mind can be found in other countries besides Argentina. Yet, though it is apparent to the most casual observer of the world's conditions that Argentina must wax in strength and become increasingly independent, it is clear that were she to attempt to stand, far less run, alone she would come a tremendous cropper.

The pride of the Argentine has to be reckoned upon. The nation recalls its decrepit past; it sees the abundant blossom of the present; it eyes are large when viewing the future. It declines to confound its destiny with any other South American Republic. For its northern neighbour Brazil, Portuguese and negro in population, it has a scorn which raises a smile on the lips of the outsider.

It resents the patronage of the United States. When the States preaches the Monroe Doctrine, and announces it will not allow any European Power to acquire fresh territory on the American continent, Argentina says: "It is very kind of you, but we do not require your help; we are quite capable of looking after ourselves."

Behind this is the belief that the Monroe Doctrine is but a design to permit the United States to become the ruling factor in American higher politics, if not to extend her sphere of authority the entire length of the continent. The manner in which the United States got possession of territory in Central America in order to construct the Panama Ca.n.a.l rankles in the minds of Argentines, as it does in the minds of most other South Americans. Bitter though the feeling is between rival South American States, they are at one in their resentment of United States patronage.

Occasionally, United States Ministers of high position travel south, and beat the pan-American drum. They are received politely, but there is chilliness in the courtesy. In blunt truth these Republics--be they right or be they wrong in surmise--do not trust the United States. I think I am well within the facts when I state that there is an agreement between Argentina, Brazil, and Chile--known as the A.B.C.

combination--to take common action if there is any step south of the Panama isthmus savouring of aggression on the part of the United States.

Both in Argentina and Brazil, when I conversed with public men, I was given clearly to understand how deep-seated is this dislike of the United States. There is annoyance at the manner in which President Woodrow Wilson has lectured the Latin Republics of America for granting concessions to European syndicates for the development of their countries. President Wilson laid it down that the growth of foreign interests in these Republics was unwholesome, because they were sure to influence the political life; therefore, he said, it was the duty of the United States to a.s.sist in emanc.i.p.ating them from such subordination.

This was a considerable extension of the Monroe Doctrine. The much-preached creed that the United States will not tolerate any other Power acquiring territory in the Western hemisphere had been expanded to mean that the United States is going to use its influence to free the Latin Republics from being under obligation to European countries which have given their millions of gold towards making those Republics commercially prosperous which, so far as financial a.s.sistance from the United States counts, would have remained practically undeveloped. At the latter end of 1913 Mr. Page, United States Amba.s.sador to Great Britain, stated at a public dinner that President Wilson was determined to a.s.sert the principle that no sort of European financial or industrial control could, with the consent of the United States, be got over the weak nations of America so far as this control affected political influence.

What European countries think about this att.i.tude of the United States in practically warning off European financiers if the investments or concessions have an influence over politics--which, of course, they must have in all trading countries--it is not for me to discuss here. But this over-lordship, this placing of the Latin Republics in a position of tutelage to the great Republic of the north, is denounced and repudiated by every Latin American public man.

I quite agree that it would be better for countries like Argentina and Brazil if they were not so dependent on the foreign capitalist. That is a view held by probably the majority of South Americans themselves. But they are not going to accept dictation from the United States, especially as they know that United States financiers and syndicates are not only endeavouring to control the meat trade of Argentina, but within the last year or so have been engaged in gigantic negotiations to secure ultimately a controlling voice in many of the most important railway concerns.

In the Brazilian Chamber of Deputies in December of 1913, Senor Pedro Moacyr questioned whether, even should the United States spare Brazil the fate meted out to Colombia, in regard to setting up the baby Republic of Panama so that the North Americans could construct the Panama Ca.n.a.l, Brazil would accept the tutelage over Latin America which President Wilson, improving on the imperialism of Mr. Roosevelt himself, and yet further accentuating the disquieting deviations of the Monroe Doctrine, had proclaimed? What it came to was, said Senor Moacyr, "that the Latin Republics are no longer to have the right to grant to foreigners such concessions and privileges as it may suit them to grant, and, under pretext of preserving them from a problematical European imperialism, the United States will subject them to its own domination and control. What, in this case, becomes of the integrity and sovereignty of Latin America for which the great Republic displays so much solicitude? More and more the Monroe Doctrine, new style, displays this manifest tendency: America for the United States.... Will the great Latin Republics be willing to submit to this American control, and subordinate their foreign policy and their economic orientation to the views and interests of Washington? We do not believe it."

It is only right that United States financiers should receive privileges the same as are accorded to the financiers of other countries; but such a p.r.o.nouncement as that of President Wilson only intensifies the distrust of South Americans, so that when looking beyond their own frontiers for money they are more disposed to direct their gaze across the Atlantic than to the people of the United States. What may be taken as quite certain is that the big Latin Republics have sufficient confidence in themselves to refuse to accept any lectures from North Americans.

Coming late into the field the United States is now making strenuous endeavours to increase its trade with Argentina. Operations in regard to railways, and creating a meat monopoly in the hands of Chicago firms, provide the most striking proof. In regard to the creation of a meat trust, there is now a Bill before the Argentine Parliament providing that any contract relating to commerce or transport affecting the price to the consumer of articles of prime necessity is illegal. Those who form the trust can, under this measure, be punished for misdemeanour, and directors of companies or a.s.sociations will be held personally responsible, and on repet.i.tion of the offence their companies or a.s.sociations dissolved and effects confiscated.