Brazil and the River Plate in 1868

During the unfruitful dominion of Spain and Portugal, commerce with South America was limited to the exchange of commodities between the mother countries and the populations planted in the New World revealed to Europe by the daring genius of the great Genoese navigator and those bold spirits who after him traversed and explored strange oceans and seas unknown. The Courts of Madrid and Lisbon adopted the most stringent measures for the preservation of their monopoly and to prevent commercial intercourse with their colonies by the subjects of foreign States. So successful were the means taken to this end that very little was known with certainty in England concerning those immense regions until after the War of Independence freed them from the yoke under which they had so long groaned. I need not in this place indicate all the causes that led to this great revolution, but there can be no doubt the example of our own American colonists and the principles disseminated by the French Revolution exercised a potential influence in stirring the South American communities to liberate themselves from the oppressive restrictions with which they were fettered.

The marauding exploits of Admiral Drake, and the rich prizes captured on the Spanish main, had given our countrymen some notion of the incalculable wealth of Chili and Peru, the Brazils, and the Rio de la Plata; and their erection into separate and Sovereign States was hailed as the advent of a new and prosperous era for the commerce of both hemispheres. With a liberality and promptitude which will always be remembered by the various South American nations, the capitalists of Britain responded to their demands for pecuniary aid, and loans were freely subscribed to enable the enfranchised peoples to establish popular self-government upon solid bases. It may be said that this still remains to be accomplished, and the frequently recurrent revolutions in Bolivia and Peru, and in some others of the nascent Republics, are certainly no manifestation of executive stability; but it must not be forgotten that their antecedents, under the Spanish and Portuguese control, were not of a nature to fit them for a wise and temperate exercise of political privileges. Year by year, however, with the growth of intelligence and the spread of education, the respective States are becoming less subject to internal and civil convulsions; and in this respect the rapid development of industrial and productive activity gives promise of a still more satisfactory condition of things in the proximate future.

Since the abrogation of the monopolies of Spain and Portugal and the inauguration of free intercourse with South America the commercial movements between that part of the globe and the maritime nations of Europe have assumed imposing proportions, and are every year increasing in value and importance. As elsewhere, England holds a high place both in the Pacific and Atlantic markets, as an importer of products and an exporter of manufactured goods. Our Board of Trade Returns show the magnitude of British interests in those countries, and the necessity that exists for promoting the most cordial relations with the different Governments. But at present I must confine my observations to Brazil and the River Plate, and from a reference to the returns in question it will be seen that the former is our largest South American customer, taking commodities to the annual value of £5,822,918, while we in return receive Brazilian produce of the annual value of £5,902,011. The River Plate comes next in order, taking English goods of the annual value of £4,405,548, while it sends to us produce worth £2,146,079. It will appear, therefore, that the total movements between this country and Brazil and the River Plate are respectively of the yearly value of £11,724,929 and £6,545,627. And here I may state, without going into particulars, that the entire commercial movement between England and the whole of South America reaches the no inconsiderable sum of £34,566,405. The above returns are for the year 1867.^[6]

The Board of Trade Returns, though they exhibit, in figures surpassing eloquence in their convincing power, the extensive character of our own trading relations with Brazil and the River Plate, of course convey only a partial idea of the commercial activity of the countries named.

Brazil and the Argentine Republic both carry on a large business with other European nations. With regard to the first it will be seen from the statistics we quote below that the Empire has large transactions with France and the Continent, as well as with the United States, to which the bulk of her coffee crop is shipped.

In the Budget of last year, submitted to the National Assembly by the then Finance Minister, Senhor Zacharias, I find the following:—

The value of the import trade in 1866-67, according to the official data in the treasury, was 143,483:745$; 22,503:313$, or 18.6 per cent, more than the average of the five years 1861-2 to 1865-6, and 5,716:903$, or 4.1 per cent, more than 1865-6.

This importation took place in the various provinces in the following proportion, which is compared with that of 1865-6:—

Diminutions occurred in Rio de Janeiro 251:003$, Sergipe 45:787$, and Piauhy 40:209$; total, 336:990$.

The countries whence the importation came in 1866-67 were the following:—

The value of the exports of native production and manufacture to foreign countries was in 1866-67 156,020:906$, 21,516:502$, or 15.9 per cent. more than the average of the five years 1861-2 to 1865-6, and less by 1,066:652$ or O.67 per cent. than in 1865-6.

The countries whither the exports of 1866-7 went were the following:—

The total of the direct importation and the national exportation abroad was in:—

There was an increase of 44,020:815, or 17.2 per cent.

The value of the importation with certificate (carta de guia) was in 1865-67 24,902:670$, 823:969$, or 3.4 per cent. more than in 1865-6, 2,448:821$, or 12.6 per cent. more than the average of the five years 1861-2 to 1865-6.

The re-exportation in 1866-7 rose to 1,786:052$, 447:993$, or 33.4 per cent. more than in 1865-6, and 377:686$, or 26.8, than the average of 1861-2 to 1865-6.

The number of national and foreign vessels cleared in the foreign trade of 1866-7 was:—

Including nationals:—

The products of Brazil are very varied, but the principal articles, and the relative positions they occupy in the commerce of the country, will be seen by the estimated quantity and value of the exports from Rio de Janeiro for 1867, as stated in the Official Report to our Foreign Office by Mr. Pakenham:—

The exports from Pernambuco, Para, Bahia, Santos, and Rio Grande do Sul during the same period amount to about £7,000,000.

Mr. Pakenham, in the same report, also remarks:—“The Brazilian imports and exports for the last year for which there are Customs statistics amounted to £14,348,374 for imports, and to £15,607,090 for exports, and the total commercial movement with foreign countries had then increased 17 per cent. on the average of the preceding five years.”

The trade statistics of the Argentine Republic are quite as encouraging as those of its Imperial ally. I have before me a valuable communication of Mr. Daniel Maxwell, of Buenos Ayres, addressed to the Sociedade Rural Argentina, in which he makes the following comparative statements as to the exports of produce during the periods mentioned:—

With the exception of horse hides these figures manifest a very material and striking augmentation in the productive energy of the Republic. The proportionate distribution is shown in the annexed tables:—

The number of sheep skins exported from 1858 to 1862 was 8,705,883 against 20,776,898 from 1862 to 1867; and with respect to the wool exported it may be desirable to explain that a bale of wool usually contains 34 arrobas, and that four bolsas or chiguas are equivalent to a bale. According to this calculation, the export of wool from 1858 to 1862 reached 8,705,883 arrobas against 20,776,898 arrobas from 1862 to 1867.

The war with Paraguay, though it has undoubtedly pressed upon the financial resources of the Republic, has in no manner arrested its commercial, industrial, and fiscal progress. This is very clearly apparent from statistics furnished by his Excellency Don Norberto de la Riestra in connection with the issue of the recent Argentine loan contracted in this country to cover the balance of the extraordinary expenditure caused by the protracted struggle with Lopez. I quote as follows from the document referred to, the value of which will be obvious:—

The official value of the foreign trade of the Republic through the port of Buenos Ayres alone in 1865 was as follows:—

In 1866 it was:—

The real value of the aggregate trade for 1866, including the other ports of the Republic, cannot be estimated at less than £16,000,000, and has continued since to augment.

The declared value of produce and manufactures exported from the United Kingdom to the Republic in 1867 has amounted to £2,838,037, taking in this respect the lead of all the other South American States, Brazil only excepted.

The export of wool, which is the staple article, from the port of Buenos Ayres alone was as follows:—

and the same progressive increase is observable in the other productions of the country.

Referring to Brazil, every Parisian luxury is found in the cities, Rio de Janeiro being full of French shops, and the Rua d'Ouvidor, one of its principal streets, is almost exclusively French. Of course many important trades and industrial occupations are carried on, and in particular the manufacture of carriages, which equal in elegance and solidity those of any country in Europe. Iron foundries, iron ship-building, and other useful establishments also exist; but there are few cotton, woollen, or silk manufactories. Therefore the commerce of Brazil is almost entirely one of exchange.

As regards the River Plate, a large trade is maintained with France, Belgium, and other parts of Europe, where River Plate produce is extensively consumed. It is only necessary to look at the manner in which the ladies of Monte Video and Buenos Ayres dress to form an idea of the extent of French imports to those places. There are no manufactories in the River Plate beyond such as have been specified in regard to Brazil, carriage making being equally conspicuous.

It is a feature in the Board of Trade Returns that Paraguay, which has of late years caused such a noise in the world, makes no figure whatever. Now of course it is under blockade, but previous to that event the figures were almost nil. Had the ruler of that country used his energies to produce and export 5,000 bales of cotton annually, for which article the land and climate are admirably adapted, what would have been the state and condition of Paraguay at the present moment? It is not requisite to enlarge on such a topic.

Whilst adverting to the commerce of these countries, and to their internal wealth, their mineral products must not be left out of sight, and in this respect Brazil possesses a great superiority from the steady working of her gold and diamond mines, which have always been a source of considerable revenue, even though they are probably not yet very perfectly explored. To do this it requires a large outlay of money and the enterprise of private individuals or public companies. Formerly the mines were worked exclusively for the Crown.

The Argentine Republic has not yet given much signs of mineral activity, but there can be no doubt gold exists, as well as silver, in the Andine Provinces, and when the railway is carried on to Cordova we may hear a good deal more of the San Juan silver mines, to the development of which Major Rickards has devoted himself for so many years.

In the Banda Oriental gold has long been known to exist in the mountains of Canapiru, and the indefatigable Mr. Bankhart has succeeded in forming a company of Monte Videan shareholders to operate there. He is now in England obtaining the needful machinery and securing workmen for the mines. If successful it will be a great boon to the country, and may assist in providing a future metallic currency, from lack of which things now appear to be at a deadlock.

It will be seen from this short summary how closely our commercial interests are identified with those of the countries referred to, and how desirable it is, as at present, that the most friendly relations should be maintained with them. Nor are these likely to be again disturbed. In every port and city in South America are to be found British merchants and representatives of the country, the latter placed there, not, as previously, with a view to cavil, find fault, and threaten, but to see fair play and justice impartially administered to British subjects. The doctrine of non-interference in the political squabbles of other countries is now generally adopted, diplomatic meddlers are discouraged, and the post of foreign minister in South America is much more agreeable than formerly.