This being the case, it follows that the fruit-farmer is gradually acquiring rational methods, which will soon attest to their beneficent influence by transforming the old orchard-plantations, which were with reason described as forests of fruit-trees, into gardens of carefully cultivated plants, yielding crops very greatly improved in the matter of quality and the beauty of the fruit. On the other hand, the sellers of fruit-trees have at the same time been learning more as to the qualities of different varieties, and how best to select them, in order to place on the market those which will secure the largest profits to the grower, and to propagate the most popular species.

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

As for the fruit trade, it has hitherto been very limited, and confined almost exclusively to the sale of fresh fruit, as with the exception of the factory of the “Tiger Packing Company” and a few others, which prepare canned peaches, etc., in syrup, all growers of fruit for public consumption offer it for sale only in the fresh state.

Yet amid the feverish activity which characterises the present situation in the Argentine, the fruit trade receives a greater impulse each year; not only in the matter of home consumption, which has been popularised by the aid of such companies as the “Co-operative Fruticola,” which endeavours to supply the consumer with articles of the first quality at reasonable prices, but also in the matter of export to large foreign cities. The export of fresh fruit should soon form an important branch of commerce in the Argentine, as it does already in the United States and in other countries.

In the matter of a fresh-fruit trade with foreign countries the Argentine is particularly favoured by circumstances; for on account of her geographical position she is able to profit by the inversion of the seasons with regard to Europe; that is, by placing summer fruits on the European markets in the middle of the northern winter. Another advantage which the Argentine will enjoy on these markets is the fact that she has to reckon with no formidable competitors; for those countries that might dispute her place, such as South Africa, which is situated in much the same latitude, or Chili, which grows a variety of good fruit, have not the abundant fertility of the Republic; or if they run her close in this respect, as is the case with Chili, they are separated from Europe by a greater distance, which considerably increases the price of transport.[74]

Profiting by the admirable physical advantages of the country, once this trade has obtained the indispensable assistance of rapid and convenient steamers, with special holds or refrigerating chambers for the storage of large quantities of fresh fruit, we are certain that it will not have long to wait for profitable results.

Several years ago one of the authors of this book sent to Messrs Garcia, Jacobs & Company, of London, as a commercial sample, a batch of peaches preserved by chilling, and according to the testimony of these merchants the peaches of Buenos Ayres may well be the subject of a successful business, provided that fruit of the superior varieties be produced. Entering into detail, Messrs Garcia & Jacobs added that the best qualities sent had sold satisfactorily; they ended by stating that consignments reaching London in the months of March, April, and May should yield considerable profits.

After this experiment many others were made by various persons, until finally, thinking the moment had come for establishing the fruit trade on a solid and lasting basis, the Royal Mail Steam Navigation Company determined to fit their steamers with special “chilled” chambers or holds for the transport of fresh fruit.

The first consignments have not been completely satisfactory, as in this trade, which is now being undertaken on a very large scale, every one has a great deal to learn; from the producer, who plants the varieties of fruits which he thinks most suitable for export, the farm labourer, who gathers the fruit, and the man who packs it in special cases, down to the steamship company, which has to confide the care of the refrigerating plant and the holds to a competent technician, whose duty it is to maintain a constant 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 in the United States, favoured by the existence of refrigerator cars, placed at the disposal of the producers by the railway companies, and capable of transporting enormous quantities of fruit from one end of the country to the other. But this innovation, like so many others demanded by industry and commerce, will come in time, when the population has increased, and new markets will be permanently opened to the producer. At the present time such fruits as are intended for home consumption, like those selected for exportation, have not far to travel before reaching their destination, as they are usually grown near Buenos Ayres; particularly the peach, which is the fruit most in demand on account of its superior quality.

Although the entire Argentine territory lends itself admirably to the production of fruit, there are particular districts which by nature are especially fitted for the plantation of fruit-trees. Among such districts we may cite the islands which form the delta of the Parana, which are covered with an extremely rich soil and magnificent growths, and are irrigated during certain seasons of the year by the waters of the river, which deposit on them a richly nutritious silt, like that which the famous waters of the Nile leave upon its Egyptian banks. There flourish a great variety of fruit-trees, from peach and apricot, pear and apple, fig and quince, down to the “diospiro kaki,” and many other species.

Another region which has commenced to attract attention 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 fruits figure on the best tables of London and other European capitals.

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 as 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 the 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

CHAPTER I

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 most important points 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 may 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 Argentine 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 her power of purchase above her actual resources. When, on the contrary, a crisis arises, the imports rapidly follow the movement of the exports, the country no longer being able to depend upon credit nor to cover by loans its unfavourable commercial balance.

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

The foreign trade of the Argentine has passed through two distinct phases; from 1861 to 1890 the imports were usually larger than the exports; while since 1891 the exports, except in 1893, have been considerably the larger.

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

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. per head, while the same figure for exports is £7, 10s. 7d. to £10, 12s. 0d., according to the condition of agriculture.

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

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 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 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. 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.

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 stuffs, 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 affects stockings, socks, etc., exclusively.

The 40 per cent. tariff 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 blankets, and blankets of wool with cotton warp, or bound or bordered; also laces and silk thread or thread of mixed silk and woven stuffs and any other articles of silk or silk mixtures, including floss silk, etc.

The 35 per cent. tariff applies to woollen stuffs in general, whether of pure wool or mixtures.

The 25 per cent. tariff affects all merchandise not burdened by a special tax. That of 20 per cent. affects bar, strip and ribbon steel, and unbleached cotton cloths.

The 15 per cent. tariff affects oak, cedar, pine, spruce, and tissues of silk intended for bolting flour. The 10 per cent. tariff affects certain chemical products, and also cocoa, tin, machinery in general, agave fibres, jute, and hemp fibre for making mats, etc. That of 5 per cent. which is the lowest, is imposed on turpentines, steel wire for fencing, ploughs, jewellery, sulphur, cotton, whether raw or in the thread for industrial purposes, sewing-thread, sacks, and other various articles.

Besides the above there are some ninety-five articles or products on which specific duties are imposed.

Since 1900 a legislative factor, at first sight unimportant, but in practice of the greatest advantage, has to a certain extent modified the vexatious character of the Argentine tariff. This factor consists in the relative stability imposed by Congress on the customs law, by the suppression of the annual revision to which the rate of valuation was subjected, which change has allowed commerce to establish its transactions on a definite basis; whereas they were formerly contingent upon the continual modifications of the said tariff. This step, like so many others, was initiated by the ex-Minister, Señor José Maria Rosa.

Exaggerated values were always at the base of these tariffs, and the abuse became so notorious that the present Minister of Finance, Dr Terry, was himself obliged to recognise “that reform was essential in the matter of the rectification of all these valuations, in order that the Customs Administration should not strike indirectly at imported products by taxes far in advance of those intended by the legislative power.” A new tariff has been in force since the 1st of January 1905, and although it also has given rise to a certain degree of recrimination, it is none the less an improvement upon the former state of affairs. As for the export duties, here again we find notable discrepancies between the valuations and the market prices which ought, on principle, to serve as their basis. They were established after the crisis of 1890, and as they were now no longer justified by insufficient resources, they were suppressed by Congress reckoning from 1906.

These customs duties on exported goods were established by the Argentine Constitution, but not in a permanent manner. The Charter enacted that they should be in force up to 1866; but at that time, the country being at war with Paraguay, a Convention was convoked, which postponed the settlement of the matter for some years.

In 1887 the export duties were suppressed; but in 1900, after the terrible financial crash, they were once more established, in order to relieve the heavy burdens and engagements of the Treasury.

These duties were from 4 to 100 per cent. ad valorem, and were principally directed against leathers and hides, wool washed or unwashed, ostrich plumes, tallow, fat, animal oil, horns, etc.

As may be seen by this simple enumeration, these duties weighed upon the by-products of stock-raising as they left the country for the markets of foreign consumers, and this after they had already been subjected to other heavy charges, in the shape of land taxes, customs duties on wire for fencing, and many local taxes, while agricultural products escaped scot-free. For this reason it has always been considered that the export tariff had no equitable basis, and all the Argentine Administrations have for this reason endeavoured to suppress it, as the Congress finally did in 1905. Whether we are dealing with exports or with imports we always find, as we have seen, an inflation of prices on both sides, so that the figures of the official statistics have not so much an actual as a comparative value.

There is still one important item to be remarked in respect of imports: it is that the import duties in recent years have been first raised then lowered. Additional duties amounting to 10 per cent. were established when the dispute with Chili seemed about to end in war—that is, on the 29th of January 1902—at which time a supertax of 5 per cent. was added to the tariff which had already been in force since 1899. Since then these duties have been finally suppressed (in January 1904). It is obvious that with these variations we have not always the same basis of valuation, as the imports are variously affected by these variations themselves, so that all exact comparisons are impossible.

We must also take into account the value of the imports which are not controlled by the customs. Competent persons have estimated that these amount to about 20 per cent. of the goods passing through the customs, which represents a sum of about £2,000,000.

Again, the figures we have quoted do not include the movements of currency or bullion, which during the last six years have been as follows:—

The increase observed from one year to the other in the importation of bullion is in direct relation to the increase of exportations: it corresponds to the consignments of gold, coming especially from the London market, in order to expunge the commercial balance in favour of the Argentine.

In the light of these observations we will now examine the commercial movement in itself, while noting its distribution according to the various countries which exchange their products with the Argentine.

We will then give a list of the principal articles entering into the composition of this foreign trade.

Imports

Here is a table of imports for the years 1906-1908, and for the first six months of 1909, classed according to their origin and in order of importance:

Great Britain is always at the head of the list of imports, the total of her products imported by the Argentine in 1908 being £18,674,279. Among these products one of the greatest importance is coal, of which 2,338,949 tons were imported in 1907, representing a value of £3,274,528. Woven fabrics of all kinds attained a value of £3,038,694; railroad material £2,703,945, and sacking for making up into sacks, £296,585.

Germany now occupies the second place. The imports from Germany, worth £7,569,417 in 1908, are of all kinds, and include almost every kind of product consumed by the Argentine. On account of her various industries, metallurgical products holds the first place; then come woven fabrics and paper.

The United States send principally agricultural material, petroleum, and pine timber; the imports for 1908 were £7,119,400 in value; or nearly twice the value of the Argentine exports to the States. This situation is explained by the fact that both countries export the same products—cereals and cattle, etc.

France comes fourth, with £5,295,385 worth of produce in 1908. Her products, like those of Germany, are very numerous in kind. The largest imports are of woven fabrics, wines and spirits, metallurgical products, pharmaceutical specialities, and perfumery. Taking the item of wines and spirits alone, the Argentine imports £228,000 worth of bitters and vermouth and £202,560 worth of wines in the wood.

Italy sent £4,982,649 worth of imports in 1908. From Italy the Argentine imports the largest quantity of wines and of bitters, valued at £922,938; olive oil accounts for £394,133, rice for £295,667, cheese for £181,949 (the weight of this import in 1907 being 2,274 tons); in short, all the articles most in demand among the Italian emigrants. Woven fabrics attained a value of £927,857.

Far below the countries already named, with an amount of produce less than half that imported by France, comes Belgium (£2,550,674 in 1908); then Brazil (£1,457,189), and Spain (£1,723,622). Belgium sends principally metallurgical products; Spain her wines and oils and salt. Brazil sends only a dozen or so of products; the most important being coffee, tobacco, and especially the yerba maté; a herb analogous to tea, and used as a beverage in the country districts. Brazil and Paraguay, which supply it to the Argentine, sent £1,046,183 worth of the herb in 1908.

The table given below shows what are the principal products imported by the Argentine Republic, and show the considerable increase which has taken place in all branches of importation:—

We see from this table that the Argentine relies on foreign imports for the greater number of metallic, chemical, and textile products, and even for a great many food-stuffs. An essentially agricultural nation, she has not as yet developed her industrial equipment, nor has she been able to undertake the transformation of the raw materials at her disposal into manufactured products. The development of her agriculture is the object which has hitherto absorbed all the initiative and all the capital of the country.

It is this dependence upon foreign countries for so many articles of prime necessity that makes the cost of living in the Argentine so high. All these articles have to pay customs dues varying from 5 to 50 per cent. ad valorem; dues which still further increase the exaggerated valuations of the Customs Administration.

On the other hand, these imports are by no means so decentralised as the exports; they are brought as near as possible to the centres of consumption, so that they shall not be forced to pay fresh freight dues in the interior. The Customs House of Buenos Ayres handles 84·9 per cent. of the imports; Rosario 9·2 per cent.; La Plata 1·9 per cent., and Bahia Blanca ·8 per cent. As we see by these figures, the Federal Capital almost monopolises the imports, whence arises its disproportionate development as compared with the rest of the country.

Exports

Here is the table of the exports of the last three years, arranged according to their destination, in order of importance:—