No. 10.
Mr. Osborn to Mr. Evarts.

No. 189.]

Sir: The annual session of the Argentine Congress was formally opened by the reading of the message by the President on the 6th instant to both houses of Congress in the chamber of deputies.

The President, after saluting the senators and deputies, and assuring them that every year constitutional principles are striking their roots deeper, opens his message by referring to the conciliation policy adopted by the administration, and says that many European and American statesmen were so impressed with that policy at Buenos Ayres, that they ask themselves if such were not preferable to the system of repression used in Europe which perpetuates violent rancor, and, as a proof of the success of the policy of conciliation, refers to the fact that three millions of Argentines united in the celebration of the centenary of St. Martin.

The President claims that there is peace in the republic, but that in two or three of the provinces a bad state of affairs exists; that the revolt in the province of Sante Fé had been suppressed by Governor Iriondo with superior force, and that the national government had intervened, on the call of Governor Dirqui, in the province of Corrientes for the purpose of maintaining peace in that province, and that he now submits the whole matter to Congress for solution, and recommends, for the peace and the prosperity of the province, that a new election should be called for the purpose of designating the governor of the province under the auspices of national intervention which should secure free suffrage to all.

It appears from the message that the total national debt amounts to $61,277,802, of which more than one-half are European loans, and the balance a home debt, except about two millions called the floating debt. These figures show a reduction of the national debt in the year 1877 of more than $4,000,000 from that of the year 1876.

The President congratulates Congress, that although the revenue did not come up to or meet expectations, the government has spent $8,000,000 less in the year 1877 than Congress had authorized, and claims that the apparent decline of 7 per cent. in the exports was due to the fact of reduced valuation on wool and hides, &c., as it was found that the quantities exported in 1877 exceeded those of the year 1876, but the valuation was reduced 15 per cent.

The number of immigrants to this country for the year 1877, is summed up as 29,000, the same as for the previous year, and the message claims that it is more than the aggregate of arrivals from Europe to all the other countries of South America.

With reference to foreign affairs in the message, the President states that the relations with all countries are friendly, and that Congress will hear with pleasure that protocols of a treaty, putting an end to the long and vexed questions with Chili, have been signed and approved by both governments; that the question at issue will be left to arbitration. This statement is questioned, and a portion of the native press, La Tribuno and La Libertad, published in this city, claim that the statement is incorrect; that the only agreement arrived at is to leave it to arbitration, and that none of the details are settled as a basis for arbitration, and that Barros Arana, the Chilian minister, has expressed his discontent in reference to the statement in the message. The matter is still being [Page 14] discussed by the press; and Dr. Elizalde, late minister of foreign affairs, comes out in a letter to the public supporting the statement in the message, that everything had been agreed upon and arranged for arbitration. It is probable that nothing will be definitely known until the President lays the matter before Congress for approval.

The President made but little or no reference to the ministerial crisis (noted in my dispatch No. 184) in his message, which continued until some three days after the opening of Congress. At the date of my dispatch, numbered 184, it was reported and understood that the ministers appointed and assigned to their respective departments by the President in the reconstruction of his cabinet had accepted, but after the lapse of a few days it was found that the newly appointed ministers declined to accept, and that Drs. Irigoyen and Plaza had tendered their resignation.

The resignation of Dr. Irigoyen was accepted, but the President declined to accept that of Dr. Plaza, minister of finance.

On the 8th instant the President completed the reconstruction of his cabinet, and it is now composed of Drs. Laspur, minister of interior; Plaza, minister of finance; Lastra, minister of worship; General Boca, minister of war and marine; and M. A. de Montes de Oca, minister of foreign affairs.

I have, &c.,

THOS. O. OSBORN.