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k i The first variety, that of the " lecherones," gives a yield
li I: 17^ to 22 lbs. of gum per annum ; there are forest lauds
B ii»ntaiuing as many as 50,000 plants to the square league —
ii! ^7er 5000 to the square mile — while the poorest districts
k reduce 2000 to the league. Considering the present high
|t Hces of rubber, we may obtain some idea of the great
j jealth of this region. The method of exploitation is easy

iid simple ; the country is indubitably healthy, and with

jbourers paid at the rate of 3s. 7d. to ISs. 9d. a day a
"' onaiderable profit would remain.
1^ 1 To-day men of initiative are busily seeking to exploit



202 THE ARGENTINE IN THE 20th CENTURY

this new source of forestal wealth, which ought in tim
to become another centre of attraction to men and t<
capital.

Arboriculture. — There is another kind of culture which i*
destined in the future, although at present it has only th;
smallest importance, to become an industry of considerabi
moment ; the culture, namely, of orchard trees, of which w
must mention the rapid progress. Given the immense area c
Argentine territory, endowed with the most varied climatei
from the snows of Tierra del Fuego to the semi-tropical hea
of Corrientes and Jujuy ; from the temperate warmth of tb:
coast to the more relaxing temperatures of the mountaic
of Cdrdoba or the Andean frontier, and containing Ian
at all altitudes above the level of the sea, it is not to I
wondered at that all the fruit-bearing trees of the worl
can live and flourish in the Republic.

In the northern region, and especially in Corrientfe
Tucuman, Salta, La Rioja, Catamarca, Jujuy, Formos.
Chaeo, and Mision^s, there are to-day groves of orange
mandarins, lemons and limes of various kinds, figs, an
pomegranates. At Tucuman and Salta " chirimoyos " an'
" paltas " are cultivated. Almonds, olives, Barbary fig
ananas or bread-fruit, bananas and " guayabos " may al'
be grown in this region; but unhappily the fruit-growic
industry is at a standstill, on account of the lack of laboi
which is so great a difficulty in all departments of tl
industrial and economic life of the Argentine.

In the central region we also find the mandarin (
tangerine (in the north of Entre Rios and Santa Fe), lemoi
(in Entre Rios, Santa F6, and Buenos Ayres), the grape- vin
especially in Mendoza and San Juan, and also in La Rioj
Salta, Catamarca, Cdrdoba, Santa F^, Entre Rios, ar
Buenos Ayres. Peaches, prunes, apricots, cherries, apph
pears, quinces, medlars, and figs are grown in all the
districts, and chiefly in the Province of Buenos Ayres, ar
the islands of the delta of the Parana, In the same regi(
we also find almonds, walnuts, hazel-nuts, and chestnu'
but grown on a small scale only. There is a fair producti(
of lemons ; and the olive grows well under favourafc
conditions.



AGRICULTURAL INDUSTRIES 203

In the southern region there is no fruit grown, except on
a!:ew estates in the Rio Negro and in the valley of Chubut.
\.t peaches, apricots, prunes, cherries, apples, and pears will
f urish in certain localities ; while walnuts, filberts and
cestnuts might be grown on an enormous scale on the
i'jidean slopes, where the rains are more frequent and the
a;nosphere more humid.

Up to the present time, on account of the large profits
mde by those engaged in agriculture and stock-raising, and
aove all on account of the insufficiency of the population,
yiich is the prime cause of which we have already
soken, the industry of fruit-farming has been practically
isiored, and what little has been undertaken has followed
n definite plan, such as the careful selection of stocks
aid slips and saplings, the preparation of the soil, and
te efficient protection of the trees. But in spite of all,
\,ry satisfactory results have been obtained, which have
rvealed the fertility of the soil and the excellence of the
cmate.

, But quite lately we have seen a remarkable development
i]|this branch of agriculture, which seems to promise a fruit-
gowing industry comparable to that of other and more
avanced countries than the Argentine. To-day, according
t Girola,* more care is expended upon the planting and
Ciltivation of the trees, as the growers have acquired
tp conviction that it is better to. produce quality rather
tin quantity, and that fruit - growing demands, like
clier departments of agriculture, the careful selection of
virieties at the time of planting ; as well as incessant
improvement by means of careful grafting, and the
aiplication of special procedures to the elimination of
r,xious insects, and the prevention of parasitic or other
liladies.

1 This being the case, it follows that the fruit-farmer is
^;adually acquiring rational methods, which will soon attest
tj their beneficent influence by transforming the old orchard-
j^ntations, which were with reason described as forests of

[*See the chapter Arbres Fruitters in the fnvttipation ayricole, by 0. P.
Cfola, reproduced in the Annates de la Sociiti Rurule Argentine for J anuarj-
Ifaruary 1905.



204 THE ARGENTINE IN THE 20th CENTURY

fruit-trees, into gardens of carefully cultivated planti
yielding crops very greatly improved in the matter c
quality and the beauty of the fruit. On the other ham
the sellers of fruit-trees have at the same time been learnin
more as to the qualities of different varieties, and how bes
to select them, in order to place on the market those whic
will secure the largest profits to the grower, and to propagat
the most popular species.

The cultivation of fruit-trees is far from occupying ii
proper rank among Argentine industries. It is distribute
in an irregular fashion ; some kinds of fruit-trees abound i
certain districts and are rare or unknown in others ; and
is impossible for growers in the latter districts to obtai
them at profitable rates, on account of the difficulty ar
scanty means of transport.

As for the fruit trade, it has hitherto been very limite
and confined almost exclusively to the sale of fresh fru
as with the exception of the factory of the " Tiger Packii
Company " and a few others, which prepare canned peachy
etc., in syrup, all growers of fruit for public consumpti(
offer it for sale only in the fresh state.

Yet amid the feverish activity which characterises t
present situation in the Argentine, the fruit trade receives
greater impulse each year ; not only in the matter of hoi
consumption, which has been popularised by the aid of su;.
companies as the " Co-operative Fruticola," which endeavoii
to supply the consumer with articles of the first quality .
reasonable prices, but also in the matter of export to lar;
foreign cities. The export of fresh fruit should soon form i
important branch of commerce in the Argentine, as it d(i
already in the United States and in other countries.

In the matter of a fresh-fruit trade with foreign countr.)
the Argentine is particularly favoured by circumstances; ir
on account of her geographical position she is able to prct
by the inversion of the seasons with regard to Europe ; tl b
is, by placing summer fruits on the European markets i
the middle of the northern winter. Another advant?J
which the Argentine will enjoy on these markets is 13
fact that she has to reckon with no formidable competito ;
for those countries that might dispute her place, such s



AGRICrLTURAL INDUSTRIES 205

j

'' [South Africa, which is situated in Diuch the sanu' latitude,
*■ pr Chili, which grows a variety of good fruit, have not the
l* Lbundaut fertility of the Republic ; or if they run her close
''■' [n this respect, as is the case with Chili, they are separated
' lirom Europe by a greater distance, which considerably
" ncreases the price of transport.*
f! Profiting by the admirable physical advantages of the

pountry, once this trade has obtained the indispensable
k lissistance of rapid and convenient steamers, with special
i!i; tiolds or refrigerating chambers for the storage of large
^'- |uantities of fresh fruit, we are certain that it will not have
Ji Jong to wait for profitable results.

i I Several years ago one of the authors of this book sent
tji [o Messrs Garcia, Jacobs & Company, of London, as a com-

'nercial sample, a batch of peaches preserved by chilling,
li ind according to the testimony of these merchants the
hii Reaches of Buenos Ay res may well be the subject of a
'ad (uccessful business, provided that fruit of the superior
pesi varieties be produced. Entering into detail, Messrs Garcia
^ jj Jacobs added that the best qualities sent had sold

atisfactorily ; they ended by stating that consignments
w teaching London in the months of March, April, and May
m mould yield considerable profits.

ik I After this experiment many others were made by various
oii ersons, until finally, thinking the moment had come for
\m ptablishing the fruit trade on a solid and lasting basis, the
aalii; poyal Mail Steam Navigation Company determined to tit
to'i heir steamers with special " chilled " chambers or holds for
k be transport of fresh fruit.
jiti j The first consignments have not been completely sutis-

ftctory, as in this trade, which is now being undertaken on
toil I very large scale, every one has a great deal to learn ; from
ttces: jie producer, who plants the varieties of fruits which he
tflji iiinks most suitable for export, the farm labourer, who
,pe;; kthers the fruit, and the man who packs it in special cases,
gl$ [own to the steamship company, which has to confide the
^yju kre of the refrigerating plant and the holds to a com-
{jis ptent technician, whose duty it is to maintain a constant

OpBW ♦ And also of refrigeration ; tho fruit bcinjj " chilled, " that Ib, kept slightly
jOlli ^OTe freezing point. — [Thanh. J



206 THE ARGENTINE IN THE 20th CENTURY

temperature, appropriate to each species of fruit. But even
under these still imperfect conditions the progress achieved
has been very remarkable, and justifies our assertion that a
large export trade in fresh fruit is perfectly practicable.

The exhibitions of fruit which the Government of the
Republic organises annually, with much practical good sense,
have greatly helped to attract attention to the fruit-growing
industry, and at the same time to stimulate competition;
and improvement. These exhibitions have been a veritable
revelation to everybody, for very few people suspected that
the Argentine produced so great a variety of the best species,
of fruit-bearing trees ; or that she could rival other countries
in the matter of production.

The fresh-fruit trade is not, in the Argentine, as it is iri

the United States, favoured by the existence of refrigerato:;

cars, placed at the disposal of the producers by the railwa;;

companies, and capable of transporting enormous quantitie

of fruit from one end of the country to the other. But thi

innovation, like so many others demanded by industry an.

commerce, will come in time, when the population hs

increased, and new markets will be permanently opened i

the producer. At the present time such fruits as ai

intended for home consumption, like those selected f(

exportation, have not far to travel before reaching the

destination, as they are usually grown near Buenos Ayre

particularly the peach, which is the fruit most m demand (^

account of its superior quality. i

Although the entire Argentine territory lends its.

admirably to the production of fruit, there are particu

districts which by nature are especially fitted for t

plantation of fruit-trees. Among such districts we may c;

the islands which form the delta of the Parana, which jh

covered with an extremely rich soil and magnificent growt .

and are irrigated during certain seasons of the year by U

waters of the river, which deposit on them a richly nutriti^

silt, like that which the famous waters of the Nile leij

upon its Egyptian banks. There flourish a great varietj

fruit-trees, from peach and apricot, pear and apple, fig il

quince, down to the "diospiro kaki," and many other specs.

Another region which has commenced to attract attenin



AGRICULTURAL INDUSTRIES 207

I i, •

by reason of its magnificent fruits is that of the Rio
Colorado ; it will one day be as famous for its peaches and
apricots as California is to-day. At a short distance from
Buenos Ayres is another favoured district, producing in
especial magnificent peaches ; it is that of the village of
Dolores, in the Province of Buenos Ayres, whose exquisite
truits figure on the best tables of London and other European
capitals.

I As we see from these data, fruit-farming is making rapid
progress in the Argentine : it may succeed in time in
capturing not only the home markets, but also the most
important foreign markets.

As for the preparation of fresh fruit in syrup, as well
b.s the manufacture of dried fruits, both of them industries
well developed in the United States, they still exist in the
Argentine only in a rudimentary condition ; but in view of
ihe rapid progress achieved each year in the Argentine, in
this as in other industries, we may hope that they will soon
develop and establish themselves securely.



PART III

THE ARGENTINE FROM THE COMMERCIAL
AND INDUSTRIAL POINT OF VIEW



It



CHAPTER I

FOREIGN TRADE

Th» important part played by tho foreign trade of the Argentine — Table of
imports and exports during recent years — Explanation of their r«spectiv«
movements — Favourable condition of tho commercial balance.

Method of ascertaining the statistics of exports and imports — Errori in
evaluation — Notes on the import duties on various articles — Variations of
the customs duties — Export duties ; their transitory character — Th«
trade in bullion.

Imposts — Their classification according to their countries of origin — Value
of imports from each country, with indications of the principal articles im-
ported — The Argentine dependent upon other countries for a large number
of manufactured articles — Concentration of imports at Buenos Ayres.

Exports — Their classification according to origin — Value of exports from
each district, with indications of tho chief articles exported — Decadence
of the French trade with the Argentine and its causes.

Tabolation, according to importance of the principal products exported by
the Argentine — Remarkable increase in agricultural and pastoral ex-
ports — Search for new outlets.

Eventual denunciation of commercial treaties — Projected new treaty with
Franco — Causes of the superiority of English, German, and North
American trade in the Argentine over French trade.

"Dumping" in the Argentine — A new client for the Argentine — Japan —
Elements which make for the development of commercial activity in the
Argentine.

The commercial balance — Results of the commercial balance — Its prime im-
portance in respect of tho prosperity of the country — It is this balance
which compensates the issue of capital for the benefit of the foreign debt.

THE whole activity of the Argentine Republic is reflected
in the statistics of its external commerce, which gives
the true measure of its prosperity. All the vital forces of the
country, its river traffic-ways, its railways, its ports, its
business centres, all aid in the development of the commercial
movement, which lives only by means of international
exchange. We have thus reached one of the mot-t important



212 THE ARGENTINE IN THE 20th CENTURY

poiuts of our study : that from which we can best judge the
place held by the Argentine among the great markets of the
world.

Considered under its general aspect Argentine commerce
maj'' be summed up as follows : the exportation of raw
materials and the importation of manufactured articles. We
mention exportation first by design ; for it is the exports, as
we have already pointed out, that regulate the purchasing
power of the country. There are no reserves in the Argentiue
which permit the country to preserve its power of purchase
much in excess of the movement of capital produced by the
sale of the harvest.

This situation cannot be clearly expressed in figures ; for
we can prove that as late as 1891 the sum of imports was
greatly in excess of that of exports. In normal periods one
must, in fact, take into account a new factor; namely
external credit, which allows the Argentine to increase bei
power of purchase above her actual resources. When, on the
contrary, a crisis arises, the imports rapidly follow the move-
ment of the exports, the country no longer being able tc
depend upon credit nor to cover by loans its unfavourabk
commercial balance.

We give below, taken from the publications of M. Latzina
the statistics of foreign trade since 1861, which is the firs
year included in the oSicial statistics.

The foreign trade of the Argentine has passed througl
two distinct phases; from 1861 to 1890 the import
were usually larger than the exports ; while since 189
the exports, except in 1893, have been considerably th'
larger.

It is curious to note that this reversal took place after th
year 1890 ; that is, after the financial crisis which so violent!;
shook the country, and deprived it of that external credi
which had hitherto balanced the insufficiency of exportation
In 1891 the imports fell to £13,441,400, from £28,448,001
or a fall of more than 50 per cent, from one year to th
next. Thenceforward the imports progressively increased t
£37,400,000 in 1904 , varying by a few millions each yea
while the exports reached their present high state (
development through the progress achieved by agricultur



FOREIGN TRADE



864



869



873
674
376
?76
J77
378
379
?80
881
1, or, 882
le Di!; 383
■ M 884
'* 385

mm. 886

B87



889



896
897



905
906
907

iclji 908











Lomnierci»l


Population.


Imports.


Kxports.




Balance.


1.375,481


£4,488,224


£2,864,518


_


£1,623,706


1,424,740


4.627,742


3,830,268


-


797,474


1,477,042


5,473,939


4,317,689


-


1,156,250


1,530,954


4,628,648


4,473,462


-


156,186


1,387,101


6.056,661


5,225,288


-


831,573


1,645.430


7.480,097


5,348,154


-


2,131,943


1,706,159


7,7.58.439


6,639,223


-


1,119,216


1.769,379


8.480,508


5,041,942


-


2,538,566


1,836,490


8,239,140


6.489,637


-


1,749,303


1,882,615


9,824,922


6.044,617


-


3,780,305


1,936.569


9,135,821


5,390,300


-


3,736,461


1,989,880


12,317,150


9,453,593


-


2,803,563


2,045.028


14,686,807


9,470,658




5,207,149


2,102,284


11,. 56.5,309


8.008,307


-


2,657,002


2,161,639


11,524,896


10,401,822


-


1,123,073


2,223,189


7,214,004


0,618,142


+


2,404,1.38


2.287,005


8,088,684


8,053,988


+


865,304


2,3.53,194


8,751,825


7,504.754


-


1,247,071


2,421,827


9,272,718


9,871,511


+


598,793


2,492,866


9,107,176


11,676,157


+


2,564,981


2,565,040


11,141,185


11,587,654


+


446,469


2,639,573


12,249,209


12,077,788


-


171,421


2,716,836


16,047,105


12. 641,. 595


-


4,045,570


2,797,042


18,811,229


13,605,067


-


5,2^5,261


2,880,111


18,444,304


16,775,820


-


1,668,574


2,966,260


19,081,749


13,966,068


-


5,114,781


3,056,835


23,470,425


16,884,164


-


6.586,061


.3,158,914


25,682,422


20,022,380


-


5,660,041


3,265,577


32,913,976


18,029,071


-


14,884,960


3,377,780


28,448,162


20,163,798


-


8,284,364


.3,490,417


13,/41,5.56


20,643,800


+


7,202,244


3.607,103


18,^.232


22,674,067


+


4,377,830


3,729,105


19,244,725


18,818,032


-


426.694


3,856,728


18,5.57,725


20,337,597


+


1,779,872


3,984,911


19,019,287


24,013,560


+


4,094,270


4,084,183


22,432,718


23,376,403


+


927,685


4,186,267


10,657,780


20,233,850


+


576,070


4,291,575


21,485,780


26,705,801


+


5,280,111


4,400,226


23,-370,134


36,083,506


+


13,611,152


4,512,342


22,607,'>14


30,920,082


+


8,223,068


4,625,150


22,791,040


33,543,220


+


10,751,271


4,741,780


20,007,851


.35,807,345


+


15,289,494


4,860,324


26,241,320


44,106,905


+


17,955,585


4,981,832


37,461,104


52,831,505


+


15,370,311


5,214,074


41,030,884


64,508,768


+


23,537,884


5,377,639


.53,904,104


58,4.50,766


+


4,456.662"


5,546,106


57,172,136


50,240,874


+


2,068,738


5,712,489


54,594,547


73,201,068


+


18,706,521



ToTAi.8 .. £887.142,003 £904.278,951 +£77,130.010



214 THE ARGENTINE IN THE 20th CENTURY



k

iistisni



For the explanation of these data, we must remember that
during the last twelve years the population has increased
only by about one million inhabitants, and that in consequence
the power of consumption of the Argentine could only become
modified to a certain extent. If we except certain periods of
exceptional importations, referring, for instance, to the entry
in bulk of large amounts of raw material for the construction
of new railways, we see that the imports, as compared to the
bulk of the population, represent from £5, 5s. to £7, 18s. 7d. jliiis
per head, while the same figure for exports is £7, 10s. 7d. to m% T
£10, 12s. Od., according to the condition of agriculture. J|j«Mji

If we now examine the recent results of foreign trade, we
find the situation summed up by the following figures for fli|Diis
1908, as compared with 1907, 1906, and 1905 :— | Ik

Imvei
im





1908


1907


1906


1905


Exports...


... £73,201,068


£59,240,874


£58,450,766


£64,568,768


Imports . . .


... 54,594,547


57,172,136


53,994,104


41,030,884



Excess of Exports £18,606,521 £2,068,738 £4,456,662 £23,537,884

The commercial balance in 1908 was thus £18,606,521 in
favour of the exports, as against £2,068,738 in 1907,
£4,456,662 in 1906, which latter sum was £19,081,222
less than in 1905.

There is every reason to believe that the exports for 1909 i
will prove to have been fully as large as the year before, for
the recovery of the wool market and the enormous maize
harvest will have compensated certain deficits in the matter ^i
of corn and cattle, which suffered in the preceding year from
frost or drought.

As for the harvest of the current year, it is wiser not to
say too much at present, as the lack of rain has deranged the
sowing season.

Before commenting in any way upon the figures relating
to foreign trade, we must make one remark in respect of the
method followed in making out our balance-sheets, etc. In
the case of imports, the valuation of the customs is taken,
and in the case of exports their current market price in gold. ; jj^



But this procedure has the demerit of yielding results which
are not in strict correspondence with reality ; the most we
can say is that they enable us to make a strict comparison of
one year with another.



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FOREIGN TRADE 215

The valuations according to the customs are from 20
to 30 per cent, above the true values in the case of the
majority of articles, and are sometimes merely fantastic.

To gain some idea of the disturbing factor which arises from
the calculation of imports upon the basis of customs estimates,
which estimates are the basis of the figures of the National
Statistics, we need only take the figures relating to coffee
as an example. In 1899 it was valued at 30 centavos in gold ;
in 1900, at 20 ; and in 1902, at 12 centavos (7'2d., 4-8d., and
2d.). This decrease of over 5d. in three years only enables
one to judge of the instability of this rate of valuation.

Here are some examples of the tariff" paid by certain
imports into the Argentine.

The 50 per cent, tariff" strikes principally at the importation
of woven stuff's, carriages, harness, furniture, perfumery, ready-
made under-clothing, boots and shoes, hats, and similar articles
not burdened by specific tariffs, for there is a host of articles
which pays the entrance duty in this way. In practice this
ad valorem tariff of 50 per cent, frequently becomes a tariff
of 100 per cent, or more, on account of the arbitrary nature
of the customs valuations.

The 45 per cent, tariff" aff'ects stockings, socks, etc.,
exclusively.

The 40 per cent, tariflf affects bales of unbleached linen, all
kinds of cotton cloth and calicoes, dressed leather, articles of
lace made of pure silk or silk mixtures, or of thread ; woollen



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