7.The percentage seems to work out at 219, while the premium on gold in that year (1888), as given in another official publication of 1906, was in reality 150 roughly, which would mean 184%. But the absence of reliable data makes an amateur result untrustworthy.
7.The percentage seems to work out at 219, while the premium on gold in that year (1888), as given in another official publication of 1906, was in reality 150 roughly, which would mean 184%. But the absence of reliable data makes an amateur result untrustworthy.
The foregoing is a brief account of the course of taxation introduced for purposes of protection as described by M. Pillado. At this point he takes occasion to moralise on the iniquity of the system, and exclaims that it is a matter of congratulation that the promoters of the industry did not think fit to produce even further from the great centres, somewhere on the borders of Bolivia. In emphasising these existing burdens, however, the writer is merely making a dramatic pause preparatory to enlarging on the further excess in the institution of bounties on export.
The immediate result of this tariff was naturally an immense rise in the price of all sugar, and subsequently the practical exclusion of the imported article. The figures cited in the work speak for themselves. In 1884 the total imports of sugar of all classes were 35,000 tons. In 1902 they had fallen to 155 tons. While the next year saw an importation of some hundred tons of refined sugar, the other grades were represented by a total of about 300 lbs.
We now come to the real interest of the question—the effect namely which this policy had upon the industry itself and the devices which the latter adopted to regulate prices.
In the first instance an unparalleled boom took place. In 1884 the production was 75,000 tons. In 1895 it was 109,000. In the following year the sum of 134,417 tons was reached—a production quite in excess of the country’s requirements. The result was that in the words of M. Pillado, “the refiners began to cry to heaven and to earth for any solution whatever to rescue them from the asphyxiation which threatened to overwhelm at one and the same time themselves and their system.”
For the planters, however, Tucuman had become a veritable Eldorado. Two years sufficed to give a net return four times as great as the capital invested. As anatural consequence it followed that labour and capital flowed into the Sugar districts, creating an unprecedented boom and denuding the other agricultural industries not only of the province but of the rest of the republic as well of their very necessities of existence. The effect was felt, apparently even in the capital, so that “lawyers deserted their profession, workmen their tools, to throw themselves with a regular fever into an occupation so full of promise.” Works sprang up as if by magic. Palaces were constructed to house the staffs. Capital was lavished on the industry by individuals and banking houses alike. No one, in short, took the slightest pains to investigate the stability of the trade, and investments were made with complete recklessness.
While fortunes were being created in the cultivation of sugar cane, orchards, orange-groves, pasturage, arable land—everything else, in short—were being either transformed or neglected, and the public generally was compelled to pay an exorbitant price for its sugar. The moment had, therefore, arrived for a reduction in the import duties, and in the price of the article. That, however, was not the view of the interested parties. “If,” they said, “by any misfortune this year’s harvest should prove so good as the last” a worse evil would befall. Considering that privatemortgages amounted to some five million dollars and that the total indebtedness of the industry, in spite of its abnormal prosperity, was no less than twenty million, the gravity of thesituation was not exaggerated. A bad harvest would be insufficient to satisfy the claims of creditors. A good harvest would cause a tremendous fall in prices and consequent disaster.
It is not surprising that there was formed in 1895 the “Union Azucavera,” or Sugar Trust, with the avowed object of taking over the entire production of all the refineries and determining prices for home consumption and export.
Unfortunately, however, for the success of the venture, some concerns were not in the precarious state to which the majority had been reduced. By dint of better management and through other causes they still succeeded in maintaining substantial returns. These refused to enter the Trust—or Kartel more strictly—and the result was a more or less complete failure.
Two combines were instituted, nevertheless, the above mentioned “Union” (in a modified form, no doubt) and a body known as the “Centro Azucarevo.” These concerns devoted themselves with energy to the solution of the problem of the surplus, and, as was to be expected, the easiest seemed to be that supplied by political means, the president of the “Union” being also president of the Chamber of Deputies. So successful were their efforts that in 1897 a bounty of 12 c. per kilo was sanctioned, raised for the next year to 16 c. To pay for this bounty an Inland Revenue tax of six cents paper per kilo was declared on all sugar home or imported. As in countries nearer home, the bounty system was an attempt, a costly attempt, to market a commodity which in normal circumstances was absolutely incapable of meeting its competitors. Argentine sugar under the most favourable conditions could not, and never was expected to, compete in the open market with that of other countries. In the circumstances it must be admitted that the whole scheme was merely an organised exploitation of the public in the interests of a weak industry and certain speculative financiers. “What public interests,” exclaims Mr. Pillado, “what benefit for the community could be cited to warrant a contribution from the country at large of $40,000,000 in five years as a gift to the exporters of sugar?”
Of the $39,850,000 levied, $25,250,000 were given as a free gift to the exporters, only $14,600,000 finding their way into the exchequer.
IMPORTS, under principal heads—Value in $1000 Gold.1890.1895.1900.1905.Live-stock4006113641,307Food stuffsAnimal foods=16,4119841,7552,242Vegetable foods and fruits539633960Spices and condiments1,053590866Legumes and cereals1,6071,7012,556Substances for infusions and hot beverages5,8015,3356,093Flour, macaroni, fancy breads, fecula428436820Tobacco and applications2,5542,2933,1474,455Drinks—Wines=12,9907,3045,6376,596Spirits and liquors1,3011,2842,159Sundries211356411Textiles, raw and manufacturedSilk=30,0241,2542,4852,602Wool7,6507,14110,967Cotton20,30919,53627,066Sundries8,2388,4335,582Oils—Vegetable, mineral, etc.—3,1934,1945,556Chemical, medicinal, and pharmaceutical substances and products3,8752,4293,7606,275Paints and dyes—7898651,441Timber:In bulk=7,3993,2955,50011,799Wrought7391,5402,368Paper and applicationsPaper and pasteboard=3,6281,3351,9242,272Applications6781,0011,861Leather and applications1,7046411,2441,796Iron and applicationsRaw material=48,1095,6969,08814,814Machinery and agricultural implements1,2021,861—Iron and steel manufactures4,7018,10411,357Agriculture———16,532Locomotion and Conveyances———23,362Other metalsUnwrought—5941,2621,896Manufactured—8462,0803,998Stone, clay, glassRaw material=10,3856,3757,12014,355Manufactured1,1021,7723,111Electrical supplies———2,034Sundry articles and manufactures4,9551,8813,3215,428Totals142,40295,096113,485205,154
EXPORTS, under principal heads—Value in $1000 Gold.1890.1895.1900.1905.Live-stock products=61,30674,62071,253141,042Live-stock9,0525,9427,189Meat, hides, wool, etc.60,35261,084122,026Manufactured animal products4,3673,56810,148By-products8576591,642Agricultural products=34,59041,44877,426170,235Raw material39,08573,045161,188Manufactured products1,9602,9525,584By-products4021,4283,462Woodland products1,4132,1613,5087,125Products of the chase346272990790Mineral products673338262261Other products and sundries2,4881,3161,1583,388Totals100,818120,067154,600322,843
EXPORTS OF FROZEN MEAT AND JERKED BEEF.JERKEDBEEF.FROZENBEEF.FROZENMUTTON.Other frozen andPreserved Meatand Tongues.Years.Tons.Value$1000 gold.Tons.Value$1000 gold.Tons.Value$1000 gold.Tons.Value$1000 gold.189645,9073,2172,99711945,1051,8043,288356189736,2382,4664,24116950,8942,0352,414255189822,2422,1165,86723450,8332,3933,154313189919,1642,0389,07995056,6272,2653,322334190016,4491,97924,5902,45856,4124,5123,175415190124,2962,87944,9044,49063,0135,0413,047391190222,3042,64770,0187,00180,0736,4054,729496190312,9911,54285,5208,15178,1496,2517,354720190411,7261,39197,7449,77488,8167,0897,249704190525,2883,738152,85715,28578,3516,2688,488760
EXPORTS OF CATTLE, SKINS, AND WOOL.CATTLE.SHEEPSKINS.Years.1000’s.Value$1000 gold.1000Tons.Value$1000 gold.18963826,543364,06118972385,018374,09418983597,690426,19418993126,824419,30819001503,678377,47219011191,980417,33919021182,848418,48719031814,4374110,13219041292,852378,67619052625,160309,483
WOOL.SALTEDCATTLEHIDES.DRYCATTLEHIDES.Years.1000tons.Value$1000 gold.1000tons.Value$1000 gold.1000tons.Value$1000 gold.189618733,516294,598216,600189720537,450274,605298,596189822145,534295,171236,887189923771,283285,334238,001190010127,991265,285248,159190122844,666285,281268,848190219745,810356,384268,822190319250,424285,360237,787190416848,355295,267228,256190519164,312499,147249,929
EXPORTS OF WHEAT, MAIZE, AND LINSEED.WHEAT.MAIZE.LINSEED.Years.1000tons.Value$1000 gold.1000tons.Value$1000 gold.1000tons.Value$1000 gold.189652312,8301,57015,5942296,85618971013,4703745,4781624,996189864522,3687179,2741585,42018991,71338,0781,11613,0422177,40219001,92948,62771311,93322310,674190190426,2401,11218,88733816,513190264418,5841,19222,99434017,84019031,68141,3232,10433,14759321,23919042,30366,9472,46944,39188028,35919052,86885,8832,22246,53765426,233
THE DEVELOPMENT OF AGRICULTURAL INDUSTRY 1895-1905.CULTIVATEDAREA INTHOUSANDHECTARES.8Years.Wheat.Linseed.Maize.Hay.Othercultivations.Total.18952,0493871,2447134974,89218962,5003601,4008005105,57018972,6003501,0009005225,37218983,2003328501,0675335,98318993,2503551,0091,2685456,42719003,3796071,2551,5115577,31119013,2967821,4051,6315677,68319023,6951,3071,8011,7305809,11419034,3201,4872,1002,17260610,68519044,9031,0822,2872,50364811,42419055,6751,0222,7172,98368213,081
8.One hectare = 2·47114 acres.
8.One hectare = 2·47114 acres.
THE CULTIVATED AREA IN THE YEARS 1895-1905 COMPARED.Products.Census,1895.1000 hectares.AgriculturalStatistic, 1905.1000 hectares.Increase.%Wheat2,0495,675176·9Linseed3871,022164·0Maize1,2442,717118·4Barley54587·7Hay7132,983318·4Tobacco151922·7Sugar cane61657·3Vineyards335359·0Cotton14397·4Pea nut1329119·0Potatoes214091·0Beans202418·3Vegetables=4839=1·8Tapioca5Spurge3Rice=1563=57·4Oats51Common rye2Canary-seed21Coffee0Forests166Fruits718721·9Sundries—3—Total4,89213,081167·4
AAgricultural implements:Importation of English,36United States,36Agricultural machinery:English importation of,36United States importation of,36Agriculture, Effects of undeveloped economic system on,23,24‘Alfalfa,’ Cultivation of,2Antilles, Trade with,27Axes and small tools, U.S. importation of,34BBahia Blanca,33Bahia Blanca, Docks at,10Banks, Employment in,22Belgium, Trade with,27Boer colony,24Bogus companies,4Bolivia, Trade with,27British houses, Decrease in the number of,37Breweries,13Buenos Aires,1,10,33Congestion of port of,9Province of,4Business Houses, Employment in,22Brazil, Trade with,27,28British and Northern immigrants: their wants not studied,31British exporters, Slackness of,32CCanals,4Capital, Influx of foreign,33Cereals, growth of,2Chaco district,12Chaco, The,3Chicken farming,24Chili, Trade with,27China, Trade with,28Chubut, Welsh colony in,24‘Colonists,’2Concentration of Trade in Buenos Aires,1Congress, Tone of,7Consular reports, Moreno, Dr. Francisco on,25,26Córdoba, Province of,3Corrientes,3Cotton goods, Italian importation of,36Cotton growing,3Credit, exaggerated,38Credit, Soundness of National,18Cultivated area in Argentina, Amount of,56Cutlery, English loss of market for,37DDrainage system,4E‘Empresas,’ The,6Englishmen, Prospects for,20,21,22Entre Rios,3Estancias,2,3Estancias, employment on,21Estancieros,2Exports, Value of,54,55FFlour mills,12Foreign capital, Important part played by,16Foreign influences, Jealousy of,7France, Trade with,27,28Fruit cultivation,3Fuel, Scarcity of,42,43GGaucho, The,12Gauchos,2Gauges, Diversity of, on Argentine railways,10German houses, Increase in the number of,37Germany, Trade with,27Gold in the Argentine, Scarcity of,4Government management, character of,7Government, want of stability of,17HHard-woods, growth of,3,42,44Havana, Trade with,28Holland, Trade with,27Housing-accommodation,14IImmediate delivery, Expectation of,39Immigrants, Attempts to attract,20Immigrants, Nationalities of,28Immigration of agriculturalists with capital needed,2Immigration, Preponderance of Latin races,31Importation, Tendency in the direction of increased,12Imports, Value of,53Inadequacy of rolling stock,9Interests, Rates of,6Inundations of the Argentine,4Italian immigrants, attempts to attract,20Prospects for,23Their employment in industries,12,13Italy, Trade with,27JJobbery, Political, its necessity for success of any enterprise,41,42LLiterature, Scarcity of, on the Argentine,24La Plata,33Loans, Argentine, easily raised,18Their distribution,19Their size,19Locusts,3MMar del Plata,10Matches, Manufacture of, a monopoly,13,15Monopolies, Railway, Effect of,8,9Morality, Public, low standard of,16Municipal loans, a speculative investment,18NNon-partisans unmolested,17PParaná,33Paraguay, Trade with,27Paraná, River,4Peon, The,12Piedmontese and Basque ‘colonists,’2Pillado, M., his disagreement with present economic policy,46his estimate of amount of tax on sugar,47of its effects on the sugar industry,48,49,50‘Ponchos,’ Importation of,13Ports, Construction of,33Portugal, Trade with,27Precarious nature of business in the Argentine, Effect of,1Preference on colonial produce as affecting the Argentine,19Prices, Inflation of, in the Argentine,1Property, Division of,3Proprietary articles, British trade in,39Protective tariff, Origin of,41Public debt, Laxity of morality as regards,17Its causes,18Public works, Demands of,32Mistakes in connexion with,33QQuebracho trade, employment of Indian labour in the,12RRailways, Dividends of,6Railways, Employment on, —Railways, Growth of,29Relative importance of,30Railways, Growth of British owned,30,31Railway material, Importation of English,34,35United States,34,35Railway system,4Raw material, Argentine naturally exclusively a producer of,7Raw materials, Scarcity of manufactures,42Rents, Rise of, in Buenos Aires,1Rivers, Absence of navigable,4SSamborombon, Bay of, project of new port in,10San Nicolas,33Santa Fé,33Shoe-factories, canvas,13South Africa, Trade with,27Spain, Trade with,27Store-keepers, Power of the,23Strikes,13,14,15Cause of frequency of,15Sugar industry, The,3Sugar, manufacture of,45,46,47Sugar Trust, The,49,50TTariff, Effect of high protective,3,12Timber, Production of,44Traction engines, Supremacy of Lincoln firms in,36Trade, British, losing of ground,26Trade, Difficulty of obtaining information about British,25Tramway material, Importation of English,35United States,35Travellers, Exclusion of,38,39Travellers, Inadequate equipment of English,39Tucuman, Centre of sugar manufacture,46UUnder-population of the Argentine,2United Kingdom, Trade with,27,28United States, Trade with,27,28Uruguay, River,4,10Uruguay, Trade with,27WWealth, Natural, of the country,11Welsh Colony,24Wool manufacture,43,44
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