CHAPTER XVINDUSTRIAL ARGENTINA—RAILWAYS AND MINOR ENTERPRISES

Marmol (1818-1873), already referred to as a novelist, in some way carries on the patriotic tradition, for in 1838 he was thrown by Rosas into a dungeon, and inscribed with a burnt stick the following quatrain on the walls of his prison:—

"Wretch! set before me dreadful Death,And all my limbs in fetters bind;Thou canst not quench my moral breath,Nor place a chain upon my mind."

He managed to survive and became a busy man of letters and subsequently Director of the National Library. Marmol wrote a good many love poems, but he is more remarkable for having attempted a field which seems to have little attraction for his countrymen. He wrote at least two poetical dramas, "El Cruzado" and "El Poeta,"the first historical, the second a modern comedy. He is a sound and conscientious literary craftsman, and the literary world of Buenos Aires looks back to him with profound respect. He seems to have approached nearer to the type of the professional man of letters than is common in Argentina.

The other poets are extremely numerous, and it is not necessary to particularise them. With them it is always the hour of night, and the same question always arises: "Why do you come to disturb my calm, image of that being whom I adore, image of that being, for whom alas! I weep, for whom I consume away and die of love?" The quotation in question happens to be from a Colombian poet, but the note is always the same; there is too little distinctiveness about the poets of Argentina to require detailed treatment. The short-lived Adolfo Mitré, who was highly praised for his sincerity and passion, or Sr. Martin Garcia Mérou may stand as types of the rest.

Garcia Mérou, besides being a poet, is an elegant essayist—already noticed—a good historian, and has shown himself highly appreciative of the work of brother poets. It is, perhaps, to the amateurish state of Argentine literature, which does not engender professional jealousy, that the pleasant comradeship and apparent lack of literary squabbles are due. Garcia Mérou published many volumes of poems of the usual type in the eighties. In 1891 appeared a different kind of work, "Cuadros Epicos," short poems dealing with various scenes in Spanish-American history. "El Mar de Balboa" is impressive.

The things unattempted yet in prose or rhyme are still the best part of Argentine literature; in new countries material fruit precedes intellectual blossom. This is inevitable in such cases, for it is necessary to livebefore it is possible to write, and literature is at every disadvantage owing to the scantiness and preoccupation of the people. Prosperity may probably continue to blunt the literary sense, for national dangers and terrors, such as called forth the Elizabethan literature and the Romantic Revival in England, or the modest "Lira Argentina," are unlikely, and the education system, which despises Latin and Greek—i.e., literature—does not foster good writers. The matter must be left to time and events. The people of Argentina are practical, and their literary wants are well supplied in the shape of all that the practical man wants. There are excellent and useful writings on law, adequate histories, lucid essays, a few novels, and, above all, a most excellent press, which last probably forms his complete substitute for a library. He wants no more. Possibly that absence of wants is the most serious want of all; a life that can be satisfied by craftsman, cook, or groom, is at least incomplete, and it may be that earth has something better to show than fat cattle, corn, grapes, or even dollars. These things have not been the distinguishing products of nations in the past which are now inscribed upon the rolls of fame, and, however materialistic men become, such things will not even now hand a nation on to all futurity. The literature of Argentina, though creditable, is by no means on a scale proportionate to her present position among nations.

Undoubtedly at the present time the main interest of Argentina is industrial. The wonderful rapidity of her expansion is perhaps the most remarkable phenomenon of this generation, and can only be realised by a visit to the country. No nation has more thoroughly appreciated this fact than France, which hails with triumph the rapid progress of a Latin race as a counterbalancing force to industrial degeneration in Europe. If able and eloquent essays and elaborate statistics, written with great literary power to call the attention of French capital and enterprise to the River Plate, were sufficient for the purpose, France would have a very prominent industrial part in that region. But, generally speaking, France is enough for the French, and that country only contributes 10 per cent. of the Argentine imports, and is thus only slightly ahead of Italy. The rulers of the United States have also grasped the importance of this new force, and theBulletin of the International Bureau of the American Republics, for fulness and clearness of information, puts to shame all English efforts in the same direction. Yet, in spite of all their exertions, the United States do not possess a single bank in Argentina (possibly not in the whole of South America), and England sends to the River Plate two and a half times as much merchandise. Germany also spares no effort, although Brazil attracts still more attention. If gratuitous advertising could command success, Germany would be first without a rival. For some mysterious reason every Englishman, whether at home or abroad, considers it necessary to boom German goods and German enterprise, and a suggestion that the Teuton has left a little trade to the Anglo-Saxon is received with polite incredulity. In their enthusiasm our countrymen are a little forgetful of facts and proportion, and they somehow manage to persuade themselves that Germany is an absolutely irresistible industrial force. In the Argentine her share of the import trade is somewhat less than half that of England.

FREIGHT TRAIN FOR ENTRE RIOS CROSSING NEW BRIDGE.

It is certainly true that our country has very little system in placing information before our traders. The Consular Reports are valuable, but each refers to a comparatively small district, and, apart from the fact that very few steps seem to be taken to bring them to the notice of traders, there is great inconvenience in collecting information piecemeal, nor is the form, in any case, sufficiently stimulating. We ought to take a lesson from the handsomely illustrated publications of the States, and the scientific and literary ability with which the French expound their theme. Our work hitherto has been fruit-bearing, but not light-giving. One of the commonest exclamations of an Englishman when he has spent a few days in Buenos Aires is: "Well! I wish the people at home knew about this." Few people read statistics, fewer still remember them, and fewest of all understand them; and consequently the signs of industrial prosperity are almost stupefying. Still, as railway companies seem to find photographs the most effective advertisements, itcan hardly be doubted that well-illustrated pamphlets setting forth the industrial promise of Argentina would make many people in England realise the true state of affairs. Certainly, the Argentine Government does all in its power by exhibitions and the dissemination of intelligence to attract capital and settlers.

Perhaps, as a prelude to this subject, a word may be said about the British capital invested in the country, for this is one of the most striking features.

Englishmen have from the beginning taken the lead in developing the resources of the country, and this fact is fully appreciated by the people of Argentina, who owe no less their pre-eminent position in South America to the stream of English capital, which has been pouring in for generations, than to their fine climate and immense natural wealth. In the old Spanish days England had a leading share in the contraband trade, and during the Napoleonic war her merchants were almost as welcome guests as her armies and fleets were unwelcome. The English were the pioneers in railway construction, and still own the most important lines; they have founded banks and freezing establishments, lighted the streets, laid down tramways, and built harbours.

Up to May 31, 1908, the amount of English capital invested in Argentina was as follows:—

Railways£137,845,000Banks8,580,000Tramways8,010,986Sundry enterprises20,910,580Total£175,346,566

France comes second. Her investments are chiefly in railways and harbours, and amount to about £21,621,000. German capital, principally in banks andtramways, stands at £12,000,000. Belgium has £4,000,000 of capital invested in the Republic.

Among the many marvellous industrial features of Argentina the railways[92]may claim the first position, for they hold in the Plate country the same place as in the United States: they are the arteries which bring life-blood to the system. The travellers of two or three generations ago all remarked upon the wealth of the Pampas and lamented the impossibility of utilising it owing to the absence of transport, and the same lament is made by those who now visit Brazil, Peru, Colombia, and Venezuela. But now Argentina has a splendid railway system, which is being developed with unflagging enterprise. Its mileage is greater than that of Mexico.[93]

The first line was laid down in 1857, but progress was very slow, for Argentina shared the bad reputation of all South American Republics, and there seemed reason to believe that the next quarter of a century would be as barren as the last, for foreign and civil wars appeared to be insuperable barriers to progress. But in the booming times of the eighties construction went on apace, and no temporary checks to the general prosperity availed to circumscribe the growing network ofrailways. Taken as a whole, they are one of the most brilliant examples of English enterprise in a foreign land.[94]

The oldest of the Argentine railways is the Buenos Aires Western, which in 1857 made a modest beginning with a 6-mile track to Flores. Its early days were full of trouble, and before long it fell into the hands of the State. It was sold to an English company in 1890, and since that time has flourished exceedingly. Although the smallest of the broad-gauge lines, it is a very wealthy concern, and has 1,305 miles of track. Up to Mercedes it competes with the Buenos Aires and Pacific, but thence it bears southward, to Banderalo in one direction and Toay in another, and finally joins the Bahia Blanca and North-Western Railway at Bahia Blanca itself. It serves a very fertile district, and grain forms 60 per cent. of its goods traffic. The lines are well laid, the rolling stock excellent, the management of the best, and it has long paid a dividend of 7 per cent. upon its ordinary stock. Altogether it is a highly meritorious concern, and though it has less scope for development than some of its rivals its future can hardly fail to be one of continuous prosperity.

LOCOMOTIVE, BUENOS AIRES GREAT SOUTHERN RAILWAY.

The largest of all the railways is the Buenos Aires Great Southern. Formed in 1862 to take over a Buenos Aires State line of 71 miles, which was opened in 1865, it has gradually extended over the Province and beyond, and now has 2,745 miles of line and is also the richest railway company in the country. The capital is about forty million sterling, and for ten years interest at the rate of 7 per cent. has been paid upon the ordinary stock. It has the great advantage over all competitors in serving nothing but rich country, and practically all its points are within 200 miles of the ports of Buenos Aires or Bahia Blanca. The policy of the Great Southern, while financially sound, has been one of remarkable enterprise, and the distant future has always been kept in view. Money has been spent lavishly with the object of obtaining all strategical points and access into promising country. At Bahia Blanca a large steel mole and grain wharf have been constructed, with the best machinery for loading and unloading, and accommodation for fourteen ocean steamers. Control has also been obtained of a dock company at La Plata, as well as an important interest in the Buenos Aires Southern Dock Company, where accommodation is provided for twenty steamers. Nothing has been left undone in the way of providing docking facilities, and the rolling stock is in excellent condition and great abundance. This is necessary for grain-carrying lines, because their goods traffic comes with a rush at one time. Congress has sanctioned the construction of additional lines of 1,176 miles, chiefly in the region of the Rios Colorado and Negro. As the irrigation schemes will make this a richgrain district, the railway may look for large traffic increases. In the future there will be strong competition in the Province of Buenos Aires from several French and State lines, but the history of Argentine railway development has been largely the record of the absorption by a great line of its smaller competitors, and the position of the Great Southern is now so strong and its extensions have been so judiciously planned, that its continued prosperity may be confidently predicted. It works the Buenos Aires Midland and the Buenos Aires, Ensenada, and South Coast.

The Buenos Aires and Pacific Railway looms more largely in the view of the world than its neighbours, and its history presents so many features of interest that it deserves to be described in somewhat fuller detail. Although its present mileage (2,712) is very nearly as large as that of the Great Southern, it is not an old line. The Company was formed in 1882 to construct a broad-gauge line from Mercedes to Villa Mercedes, and this was soon extended to the City of Buenos Aires, which became the headquarters. This, however, was insufficient scope for the enterprising Company, and in 1904 control was obtained over the Bahia Blanca and North-Western Railway, which now has a length of 665 miles, and thus an immense step in advance was taken by securing a terminus at a town which will probably be the chief grain port in South America. Four years earlier a similar, though less important, step was taken to compete with another rival by taking over the Villa Maria and Rufino Railway. This was a short section from the town of Villa Maria between Cordoba and Rosario to Rufino on its own main line, and thus the Buenos Aires Pacific was in a position to make terms with its northern rivals. But a still more important extension than either of the above was to follow. The Argentine Great Western ran from Villa Mercedes to Mendoza, and had also branches to San Rafael, San Juan, and other small places. Thus it had a monopoly of the wine traffic, which is very valuable in itself and doubly so because it comes on at a season in the year when it does not interfere with other traffic. This line has a mileage of 500 miles, and gross receipts of about a million sterling. For a long time the Argentine Great Western stood out, but was in 1907 induced to give way on somewhat extravagant terms, and thus the enterprising Company was not far from its goal of being a real Pacific Railway. In fact, there was included in this deal an arrangement which practically assured this result, for the Great Western had already taken over the Argentine Transandine, which thus became a part of the Buenos Aires Pacific system. This is a small line of 111 miles of metre gauge, which runs from Mendoza to the Chilian frontier, where it joins the Chilian lines at Las Cuevas. Here a great tunnel has been completed under the Andes, and it will be open for traffic by the time this book is published. The magnificent system is the admiration of the whole world. The Buenos Aires and Pacific is the only line in South America which has established through communication between the Atlantic and Pacific, and up to Mendoza the line is well laid, and it carries passengers speedily and with all possible comfort. But it has had to pay for its footing and the expense of acquiring sections, which are valuable rather as rounding off its own system and preventing encroachments by other companies, has been enormous, and it has been obliged to make repeated applications for capital in the London market. The traffic with Valparaiso, although the extension is a showy scheme, is not likely to pay formany years, and the difficulty of running trains through winter blizzards and snowdrifts will be considerable. The heavy expenditure has had a temporary effect, and the stock has experienced a heavy fall during the last few months. But the Company has placed itself in a position where it has little to fear from competition and where it can secure the full advantages from the future development of Argentina. This railway may be considered one of the most magnificent commercial enterprises in South America.

RAILWAY STATION, BUENOS AIRES GREAT SOUTHERN RAILWAY.

The Central Argentine is one of the most prosperous of railways. It has the largest gross receipts and makes the most profit per mile and it is also of very long standing. It began in 1864 with a line from Rosario to Cordoba and for a long time met with severe competition from the Buenos Aires and Rosario line, which worked practically the same districts, but in 1902 an amalgamation was effected. But the Mitre Law has been unfavourable to it, and for some years the Government insisted that the two lines should continue to be worked separately, and it was only last year that their complete union was sanctioned. Rosario is the centre of the system, and here the Company owns extensive dockyards, and lines run both to Tucuman and Cordoba. A port, Villa Constitucion, within 32 miles of Rosario, is also being developed, but competition is feared from Santa Fé, where very large extensions are being made, and although the Central Argentine has access to that port, a French company is in a better position for taking advantage of the facilities. In fact, the line is exposed to very severe competition from two French companies, the Cordoba Central, the Buenos Aires Central, and the Rosario and Western, a light railway, but it is large and wealthy and should have little to fear. It has an enormous grain traffic, but it serves the older and moresettled districts, and therefore cannot hope to increase its traffic in the immediate future as rapidly as some of the pioneer railways. However, it has been pointed out in another chapter that the development of the Gran Chaco and extensions into Paraguay and Brazil must ultimately vastly add to the wealth and importance of Rosario and hence to that of the Central Argentine. But this is a matter of the distant future. The Central Argentine pursues a conservative policy in finance and has for many years paid 6 per cent. on the ordinary stock. It is in a very sound position, a most comfortable line, and the management is highly efficient. The length of line is 2,392 miles.

There are two competing lines which serve the eastern river district adjacent to Uruguay, namely, the Entre Rios and the Argentine North-Eastern. Both have a gauge of 4 feet 8½ inches. The Entre Rios is a short line of only 656 miles, but it is of some importance on account of its ferry service which connects Zarate with Ibicuy on the left bank of the Parana. The railway then runs north to the important town of Parana, which is the headquarters. No dividend has yet been paid on the ordinary stock, and the cumulative preference is somewhat in arrears, for the district is mainly pastoral and that part of the line which was taken over from the Provincial Government in 1891 is badly laid, but when Entre Rios becomes a large grain-producing region the prospects of the Company will improve, and already it does a good trade in supplying Buenos Aires with fruit and vegetables, while the management is economical. Of its traffic some 17 per cent. is live stock, 15 wheat, and 11 linseed.

The North-Eastern, which has 510 miles of railway, should be assured of a prosperous future, for Posadas, the northern headquarters, is now connected withAsuncion by the Paraguay Central Railway and will get much benefit from the development of that hitherto secluded country. It is still a pioneer line running through swamps and forests and country which is to a great extent unpopulated, and the goods which it carries consist chiefly of cattle and their products. The swampy nature of the country entails considerable expense in construction, but the Company pays a strict regard to economy, and the capitalisation per mile is only £8,680. Since June 30, 1907, the working expenses have been cut down from 65.10 to 57.17 per cent. Although the prospects of this line are fair they would undoubtedly be better if an amalgamation could be effected with the Entre Rios, for the district does not yet possess sufficient traffic for two competing lines. The scheme has long been under consideration, and as the policy of amalgamation has been carried on so extensively in recent years it may be that it will eventually be accomplished.

A small railway of 167 miles, under Argentine management, should here be mentioned. It runs westward from the capital to Rojas, and there is also a very important branch of 27 miles which runs to Zarate and connects with the Entre Rios system by a train ferry. In 1906 this Company took over theTramway Rural à Vaporfrom Messrs. Lacroze Bros. The line has a gauge of 4 feet 8½ inches. The Company owns valuable property in Buenos Aires and has a terminal station at the suburb of Chacarita, and it serves a profitable district and is also a link with the Argentine Mesopotamia, but it has been obliged to make heavy outlays upon the permanent way. The line was originally a light railway and therefore in indifferent condition for heavy traffic. The ordinary share capital of the Company, which is exclusively held in Argentina, has been increased to over a million sterling. There were issued also in 1907 £600,000 4½ per cent. First Mortgage Debentures to extend the line from Salto to Rojas. This was subscribed in London. It is a good property.

RAILWAY CARRIAGE, BUENOS AIRES CENTRAL RAILWAY.

Of the remaining lines the most important are a group of northern railways. The Cordoba Central Railway is metre gauge and is divided into two sections. The "Original Line" is 128½ miles long and was formed in 1887 to connect Cordoba with San Francisco. The latter is an important town half-way between Cordoba and Santa Fé. Shortly afterwards the Company bought the Central Northern Railway from the Argentine Government at a cost of £3,174,603, and also spent about a million sterling on improving the line which runs from Cordoba to Tucuman and has a length of 550 miles. In 1899 the purchase was effected of the North-Western Argentine Railway, a loop-line from Tucuman to La Madrid, length 87 miles. The "Original Line," after leaving Cordoba, passes through a poor and sparsely inhabited country, and this section could be of little value but for the terminus at San Francisco. However, it is economically managed and shows a profit of £800 per mile. The longer section also, between Cordoba and Tucuman, runs through a poor country, but in compensation it has the valuable sugar traffic of the latter city. Sugar forms a quarter and timber nearly two-fifths of its goods traffic. Closely connected with it is the Cordoba and Rosario Railway, which is also metre gauge and connects Rosario with Frontera on the "Original Line." There is also a branch line to Rafaela, which links up with the Central Argentine and the French lines. In 1895 the capital had to be reorganised, and there can be no doubt that it has not yet seen its best days, for it will have to wait for the development of the auxiliary lines which form the connecting links between Tucumanand the capital. But in any case they have to face very severe competition from the Argentine Central and the French lines. It is open to doubt whether the connection with Buenos Aires itself is necessary, for there are already a bewildering number of lines serving the district between Buenos Aires and Rosario, and at harvest-time there is immense congestion at the former place. In fact, the trend of commerce seems to be rather towards the diversion of bulky exports from the capital and the directing of them to Rosario and Bahia Blanca. This criticism receives point from the position of the newly opened Cordoba Central Buenos Aires Extension Railway, upon which the up-country allied lines largely depend for their success. This cumbrously named Company was formed in 1905 to acquire a concession granted by Government to the Cordoba Central Railway to build a metre-gauge line of 187 miles. It runs parallel with the Central Argentine system between Buenos Aires and Rosario, and it was only recently opened. Its district is, of course, one of the very richest in the country, consisting of fine agricultural and grazing land in the zone of black soil. But, as already stated, there is strong competition, and this not only from the other lines, but also from the river, which follows it from end to end. Now the dock of this Company at the capital will not be finished till the end of 1910, and the Company is at present renting accommodation and therefore suffering considerable inconvenience. The work of reclaiming land and dock building is being done by the Buenos Aires and Pacific, and the cost will be about a million sterling. The office of the Company also is to cost £225,000, but a large part of this will be let off. Every large company naturally wishes to have its headquarters in Buenos Aires, but in this case the question arises as to whether the game is worth the candle. Fewlines have had to pay more heavily for obtaining their extension privileges; the ordinary stock has been watered to a considerable degree and bonds of the value of three and a half million sterling have been issued. To meet the interest upon these bonds alone its profits will have to be £175,000, and thus a profit of £935 per mile is postulated. To obtain such a profit under economical management the gross receipts will have to be £389,000, or nearly £2,100 per mile, and no broad-gauge line in Argentina has yet reached this figure. In 1909 its gross receipts were only £1,613, its net £654 per mile, but as the line is only in its infancy these figures must not be taken as a criterion. However, the payment of a large dividend on the ordinary stock appears to be a remote eventuality.

VIEW OF MARSHY COUNTRY, BUENOS AIRES CENTRAL RAILWAY.

Numerous small lines, chiefly Government or French, have been incidentally mentioned, but they do not require detailed description.[95]

No account of the railways would be complete without a reference to the important Mitre Law, which was introduced some two years ago. Some of the railway concessions were expiring, and several provincial Governments (which are not always as enlightened as the Federal) were believed to be planning increased taxation. Legislation was accordingly introduced to put matters upon a proper footing. Such companies as accept the Law are granted exception from all kinds of taxation and allowed free importation of all materials till 1947. In return the companies must pay a tax of 3 per cent. upon net receipts, which, however, will beapplied by the Government in constructing and maintaining bridges and roads which give access to the lines. Certain rights of tariff revision are given to the Government, and no watered capital is recognised. The Law is most valuable to the railways, and the expenditure on roads and bridges will be highly beneficial. The effect will be to limit working expenses, for when the gross earnings for three consecutive years exceed 17 per cent. of the recognised share and debenture capital, the Government has a right to revise the tariffs. The Law has been accepted by all the English companies except the Entre Rios and the Argentine North-Eastern.

The above account will show that competition is very severe. This tends to bring down profits, and the cost of labour and coal and materials also makes the working expenses high. The extensions of the broad-gauge companies are, it is estimated, to cost £9,000 per mile for track and stations alone. Another fact which adds to the expenses is the necessity of keeping a very large rolling stock for use during harvest-times. This must, in part, stand idle for the rest of the year, and as a corollary to this the great bulk of the traffic is to the sea, and thus many wagons have to return inland empty. Passenger traffic, again, is light, owing to the sparse population. The Government naturally encourages competition; but its attitude has also a very favourable side, for it puts no obstacles in the way of construction, and does not attempt to bleed the companies. Of this the Mitre Law is an example. On the whole, it may be said that the great ability which has hitherto been shown in railway policy will have to be maintained at the highest point if profits and dividends are to be kept up.

On the other hand, it must be remembered that the volume of traffic steadily increases, and that wheat alone will be exported on a scale greater than anything whichhas yet been seen in any country in the world. The area of cultivation expands yearly, and when a more intensive scheme of tillage is adopted the yield will increase and with it the goods traffic. Pasturage is being driven further afield by the husbandmen, and as more farmers settle within the railway area the import trade will expand in sympathy with their growing wants and purchasing power. There is no reason to doubt that the railways will continue to share in the increasing prosperity of the country, and will be enabled to take advantage of the vast scope for development both north and south.

Manufacturers in Argentina are heavily protected, but they have as yet made no great progress. Writers who deal with the business side of Argentine life usually treat them in a very cursory manner and devote themselves to the vast pastoral and agricultural production and other characteristic industries, but the question of manufactures is worth consideration, for it is a sign of the times that every nation is anxious to supply itself with home-made goods and is straining every nerve to encourage home production. A large proportion, indeed, of the Argentine factories are merely auxiliary to the production of raw material, being creameries, butter factories, freezing establishments, cheese-making factories, and the like.

Brewing and distilling are both important, and there are said to be 130 distilleries and 32 breweries in Argentina. The sugar factories of Tucuman turn out a great quantity of rum. As sugar-planting is being successfully pursued in the Territories of Misiones, Chaco, and Formosa, the manufacture of that article is naturally increasing. The cost of planting one hectare with cane is about £10. It was estimated that the Republic produced about 120,000 tons of sugar annually, and this amount is not quite sufficient fordomestic needs, but when the Gran Chaco is opened up there can be no doubt that not only will enough be produced to supply the increasing population but that there will also be a large export.

In 1907 there were 303 flour-mills turning out 699,000 tons of flour. There are also 77 tobacco factories producing an output valued at about 2½ millions sterling. All kinds of textiles are produced, but there are only two cotton-spinning mills and 62 weaving factories. There are also numbers of miscellaneous industries, the most important of which perhaps are paper, matches, glass-ware, tanning, clothing, and building material. In general the factories are fitted up with the very best English machinery, and there is a determination to leave nothing undone to secure success. That they will continue to prosper cannot be doubted, for they have still a much larger home market than they are capable of supplying. A considerable number of the manufacturing industries, notably the sugar factories of Tucuman, are in English hands, and an enterprising Scotch firm has forsaken the United Kingdom and is engaged in manufacturing cheap shoes of imported hemp, which are exported largely to Japan. The high tariff wall is a luxury much appreciated by manufacturers, but not to-day or to-morrow will Argentina compete with Manchester or Bradford in the world's markets. Want of coal is a capital hindrance, and that very protection which confers local prosperity helps to make the establishment and upkeep of factories very costly. In this respect Argentina is but a beginner, and no one can say what her manufacturing future will be.

This is, on the whole, the most striking of the many very remarkable industrial features of Argentina. To begin with, some figures should be given. No doubt they are dry bones, but a body cannot be made without bones, and for the understanding of industrial phenomena it is necessary to have a skeleton map in the form of figures to guide us. If we keep a few round figures before us, we can form an idea of the progress of a country in industrial matters and its position in regard to other nations. It is impossible indeed to carry long tables of statistics in the head, but a few essential figures can be remembered, and along with them the increases and decreases (though of decreases we seldom hear in Argentina) as compared with a period of ten years ago and also the relative production or export of Argentine staples as compared with the figures of other countries in those articles.

ABERDEEN ANGUS CATTLE, SANTA MARIA, ENTRE RIOS.

Allusion has already been made to the benefit which the Spaniards conferred upon South America by setting down horses and cattle, and how abundantly they increased and multiplied in an astonishingly short time. It has been seen also that in the seventeenth and eighteenth centuries the exportation of hides was a most progressive industry. Later, when the tyranny of Rosas was overpast, the production of cattle made giant strides and has by no means approached its limit.

CATTLE DRINKING.

The following figures represent the number of animals in the Argentine Republic:—

Cattle29,116,625Sheep67,211,754Horses7,531,376Goats3,245,086Hogs1,403,591Mules465,037Donkeys285,088

Their total value is 645,000,000 dollars gold.[96]The United States has more cattle (71,267,000), but considerably fewer sheep and goats. Australia has more sheep (87,780,819), but far fewer horses and cattle. Chile, although looked upon as a wool-growing country, is insignificant in comparison with Argentina, possessing probably hardly more than two million sheep. Argentina has fewer hogs, mules, and donkeys than Spain, but, on the whole, it may be said that she equals, if she does not surpass, any other nation in the number and variety of her live stock.

BULLOCK-BREAKING IN JUJUY.

It is of course, to the Camp that the country owes all its wealth. People in Buenos Aires use the term just as people in Calcutta speak of the Mofussil. Without the Camp, or plain, the great Buenos Aires would have no existence. The Camp is covered with estancias which are held by estancieros, or squatters. Immense fortunes have been made by those who have been skilled in the art of getting together the best stock and managing their estates, and probably there are still excellent chances of making a fortune for the competent. The life of the estanciero is free and healthy;it approaches to that of the receding Gaucho, it is a life of boot and saddle, of early rising and long days in the crisp, sunny air. It is also much more comfortable than the ranching life in most countries; good houses, billiard-tables, plenty of company, and a number of the amenities of civilised life are not unusual, and the splendid railways will swiftly transport the estanciero to Buenos Aires when he desires a change.[97]Still, it is obvious that these luxuries are the result and not the cause of success; and it must not be supposed that an estanciero grows rich by living in fine houses and amusing himself; as is the case everywhere else, the desirable things of wealth are won by hard work and business ability.

CAMP TRAVEL.

In 1864 cattle amounted to 10,215,000, in 1884 to 14,171,000, in 1895 to 21,701,526. It will be seen that the rate of advance has been tolerably rapid. As the country became more settled after the middle of the last century, the increase of pastoral industries was somewhat checked by the realisation of the enormous possibilities of agriculture. In 1857 cattle formed 25 per cent. of the wealth of the country, but in 1884 only 18 per cent.[98]But with the fall in the valueof wheat and the increasing demand for meat and wool, and the wonderful ingenuity of the methods of freezing and preserving, the pastoral industry has held its own.

Cattle and sheep are raised all over the Pampas and far to the north and south; but, generally speaking, cattle keep to the eastern side and sheep to the west, while Patagonia is almost exclusively devoted to sheep. The cattle industry is very different from what it was in the memory of men still living. In the old days animals were killed for their hides and the carcase was left to rot on the ground; their flesh was eaten only by those who tended them. In 1873 the export of meat was under 1,500,000 dollars, and little of this found its way to Europe. In 1907 the exports of beef and mutton amounted to 222,273 tons. The prosperity of the meat industry, however, is due not only to improved methods of transport, packing, and preserving, but also to the wisdom of the estancieros in importing valuable bulls. It is said that even the smallest among them are convinced of the value of good blood and insist upon having it. Between 1899 and 1903 Argentina imported 3,005 bulls, principally from England, and in 1907 the value of live animals imported was over 2,000,000 dollars. We have seen the huge prices that rich Argentines give for the best stallions, but, relatively, breeders are quite as eager for the best bovine sires. Uruguay is better known to the world than Argentina as a seat of the meat industry, but, as a matter of fact, the latter has infinitely more stock of every description. However, in 1908, the Uruguayan beef-salting factories slaughtered three times as many cattle as the Argentine.

BULL CALF.

A great many estancias are in English hands; all over the Pampas are great numbers of young Englishmen managing the estates. A warning note has lately been sounded to the effect that Beef Trusts and otherUnited States Trusts are attempting to acquire land and meat factories and to control the supply of meat. It is needless to say that if these organisations make headway, neither the estancieros, nor our traders, nor the meat consumer, will have any reason to congratulate themselves, and it is to be hoped that the Argentine Government will take energetic measures to keep the country out of the grip of the octopus.

The sheep industry has not maintained its old relative importance. In 1830 Argentina had 2,500,000 sheep and exported 6,000,000 lbs. of wool; in 1883 the figures were 69,000,000 sheep (somewhat more than now) and 261,000,000 lbs. of wool. In 1908 the shipments were 175,538 tons, and Argentina is of great importance in the world's markets, but the conditions of the industry have changed considerably within recent years. In the old days Spain prohibited the export of her valuable merino sheep to foreign countries, but the colonies were fortunate enough not to be included in the prohibition, and in 1550 the first merinos appeared in Tucuman from Peru.[99]Professor Clapham, in his valuable work, "The Woollen and Worsted Industries," says: "There, together with an inferior, long-wooled breed, also of Spanish extraction, they ran wild and deteriorated for over two hundred years; so that eventually the Argentine flocks were as sorely in need of new blood as were those of France, Germany, or Russia, which, until the middle of the eighteenth century, had never had the benefit of a cross with the old Spanish strain. Between 1760 and 1840, thanks to a change in the commercial policy of Spain, such crossing took place in almost every country of Europe and in many European colonies." About the beginning of the nineteenth century pure-bred Spanish rams were brought to Argentina, and others from France and Saxony. By 1846 the wool had so greatly improved that it was exported to England. Forty years ago the exports consisted almost entirely of merino wool, but now seven-eighths is cross-bred. For this change there are two reasons—firstly, the rich, loamy soil does not suit merinos, which are apt to deteriorate in rank pastures, and, secondly, the trade in frozen meat has made such enormous strides that estancieros are anxious to obtain mutton breeds, especially Lincolns. The Lincolnshire breeders drive a flourishing trade with Buenos Aires, and as much as 1,000 guineas is often given for a ram. There used to be a prejudice in Bradford against Argentine wool,[100]but it is disappearing, although the Australian product still fetches a somewhat higher price.

LINCOLN CHAMPION. EXHIBITED BY MR. M. J. COBO.

The improvements which of late years have been introduced into sheep-breeding and sheep-farming are very remarkable, and they are partly due to the efforts of immigrants from New Zealand who have introduced effective cures for foot-rot and other diseases. During the last ten years of the nineteenth century breeders pinned their faith almost entirely to Lincolns, and the importations were very large. Up to 1890 the majority of Argentine sheep were weak cross-breds, and suchgood blood as remained had been weakened by over-crossing. The hardy Lincoln brought health and energy to the enfeebled mass, and breeders made it their business to rear hardy sheep and obtain a good average without going to extremes in their preference for any particular stock. The breeding of sheep has been greatly benefited by the fact that the estancias have been largely in English hands[101]and the proprietors have thus introduced hardy English breeds and good methods.

All over Argentina the intelligent selection of breeds is receiving great attention. It is now recognised that in an alfafa district a stock-master should keep cattle rather than flocks, and that such sheep as he has should be producers of mutton rather than wool. Again, in the southern districts where the grass is rich and tender, the Lincoln breed is unsuitable and crossings are favoured with the Romney Marsh, which counteracts the tendency towards coarseness, and gives silkiness, closeness, and, to some extent, fineness to the wool. Thus in Tierra del Fuego the hardy Romney Marsh, imported from the Falkland Islands, is being bred, and in this inhospitable climate the sheep keep fat all the year round, even when the snow lies a foot deep on the ground, for the sheep have learned to scrape the snow away with their hoofs and find the grass.

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