Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 1, 1873, Part I, General Correspondence; and Papers Relating to Naturalization and Expatriation, Volume I

No. 7.
Mr. Clapp to Mr. Hunter.

United States Legation,
Buenos Ayres, February 12, 1873.
(Received March 22.)

No. 29.]

Sir: I regard it as my duty to report to the Department of State certain difficulties and obstructions which militate against the increase of commerce between the United States and the River Plate countries.

Some of these obstructions are, as it appears to me, aggravated by a company which receives a subsidy from our Government, and some of them may perhaps be mitigated by the action of our representatives at Rio de Janeiro.

I will first speak briefly of the remarkable progress which the Argentine Republic is enjoying at the present time. Real estate in this city and vicinity has at least tripled in value within the last three years. The amount of imports have increased in a similar ratio.

During the last two months there have arrived at this port fifteen thousand and eight hundred immigrants, and there are thirteen hundred others, at this date in quarantine. Large amounts of English capital are being invested in various enterprises, especially in railroads. The Central Argentine road is being extended beyond Cordoba, and will soon open up the central provinces as far as to the Andes.

A new road has been built from Buenos Ayres to Ensenada, and a new port for this city will soon be opened there. Various new industries and manufactures are being introduced, and in short almost every branch of business is exhibiting a wonderful development.

There are now twenty-three large European steamers of regular lines that enter and leave the river Plate every month, besides various irregular steam-vessels.

The following extract, from the Daily Standard of this city, is a list of various public works that are now under way, or will soon be commenced:

		Number of hands.
1.	Bateman port scheme	2,000
2.	Sewerage and water-works	2,500
3.	Rosario Railway	500
4.	Chascomus and Dolores Railroad	500
5.	Tucuman Railway	1,000
6.	Rio Cuarto and Mercedes Railway	500
7.	Santa Fé and Colonies Railway	500
8.	Mutual Gas-Works	1,000
9.	New post-office	100
10.	Telegraph and Capitania	100
11.	Lujan Railway	500
12.	25 de Mayo Railway	500
13.	Removal Parque station	500
14.	The five new provincial railways voted last session, and bids to be opened in July	5,000
15.	New national-bank building	200
16.	Catalina wharf	200
17.	Port Wise tram-way	100
18.	Ensenada port works	300
19.	Suburban roads	500
20.	New prison	200
21.	New lazaretto	200
22.	Belgrano gas and water works	200
23.	Independencia tram-way	100
24.	Extension western Railway to Boca	100
		15,800

At the period of this almost magic progress there is a similar increased demand for articles of North American production. The imports of lumber, kerosene, and starch have apparently doubled, while there is springing up a very promising commerce in American furniture, carriages, streetcars, glass-ware, and many other articles of manufacture. The obstructions to the development of this commerce with the States, to which I wish to ask attention, are, not to speak of the want of direct steam communication—

First, the necessity that all freight sent by steamer from New York to the river Plate must be landed at Rio, pay various custom-house charges, and pass a tedious customhouse process. Even those houses of business that have responsible agents at Rio have their goods delayed there from two to four months. Six months is not an unusual delay for packages of valuable articles that had been shipped by steamer in hope of a quick arrival.

I know a merchant who has been for fifteen months endeavoring to obtain a package of pictures that came by steamer from New York. The expense on merchandise in the Rio custom-house is often greater than the total freight from New York to Buenos Ayres. Could not an arrangement be made by the intervention of our diplomatic or consular representatives by which this delay and expense could be avoided?

The second obstruction is the neglect and refusal of the United States mail line of steamers from New York to Rio to encourage the quick passage of freight and mails to the river Plate. As an instance of this, as it seems to me, gross neglect by that company to do what it can to foster the commercial and manufacturing interests of the country from which it is receiving a large subsidy, an American merchant, doing business in this city, was in Rio during the month of June last. He called on the agent of the company and proposed to place a man on board each steamer, when it arrived, to take charge of packages as they came out of the hold, and remove them to a steamer bound for the river Plate; all this at his own expense, he also proposing himself to obtain permission for this arrangement from the Brazilian authorities. Mr. Carrire, the agent, promptly refused to grant the privilege. My informant then said, “But, Mr. Carrire, you ought to do this to encourage commercial intercourse between the States and the river, and you would also augment largely thereby your carrying-trade.” To this Mr. Carrire replied: “We do not want to encourage intercourse. We have all the business we want.”

I am informed, though I know not as to its correctness, that this company is engaged largely in the coffee trade. If this is so, it would seem that the company is using the gratuity of the Government for its own commercial benefit, to the neglect of our general commerce and manufacturing interests.

When the steamer from New York arrived at Rio on the 20th day of January last with the United States mail, the steamer Galatea, bound for Buenos Ayres, was there at anchor, and it remained for eighteen hours after the arrival of the American steamer. Passengers for this city were transshipped. The naval mail was taken on shore by the naval agent, overhauled, and the package for Rear-Admiral Taylor was forwarded, arriving here on January 26; but the United States mail, with that of the Department of State, was neglected, and did not reach Buenos Ayres until February 5.

It is true that the Galatea is not a regular mail-steamer, but it is also true that it belongs to a line, Lamport & Holt’s, the steamers of which always carry the mails free of charge, both for the English and other governments. This is a fact generally known.

The agent of the line in this city assures me that they are always glad to bring the mails from Rio without charge. A very little trouble on the part of our mail-agent on board the American steamer would have avoided this very unfortunate delay.

Mr. Andrew Spring, a very prominent merchant of Portland, Maine, came to Rio on the American steamer Merrimack, leaving New York in October.

He informs me that the favorite subject of conversation of the mail-agent, who is also an officer of the boat, was his disgust at having to take charge of the United States mail, habitually cursing the mails and the Government.

I mention these points to show the spirit with which the company performs the Government mail-service in return for its bounty. This unreasonable and unnecessary delay of the mail is not a solitary instance, but has become a custom, and is a subject of frequent and disagreeable paragraphs in the papers of this city. I will not speak of the extreme annoyance and possible serious loss which this delay causes to all persons living here who are interested in the United States mail, but respectfully ask attention to the certain injury to American commerce and manufactures.

If the mail could arrive regularly and promptly, it would enable merchants to place a greater confidence in their transactions with their correspondents in the States, and consequently increase the amount of those transactions. If small packages of merchandise, and especially samples, could be sent by steamer without delay at Rio, it would cause a very large increase of orders for certain classes of goods, and create a market for many articles that are now practically excluded from these countries.

It would immediately be the means of causing a large subscription to North American periodicals and books, and, by means of their advertisement, bring our productions before the large English-speaking community here. American periodicals are, as a rule, much better adapted to the wants and tastes of this community than those of any other nation; but several efforts of news agents here to establish a subscription for them have failed, solely through the delay and failure of reception.

I am, &c.,

DEXTER E. CLAPP,
Chargé d’Affaires ad interim.

Note.—I regret that I have not been able to give the above dispatch a careful revision. The press of regular work in both the consulate and legation have prevented my giving any time to it except late night hours.