These tables seem important in several respects, especially as showing the
vast volume of trade steadily going to European markets, which should and
could be more largely shared by the United States if some method were
devised to establish and maintain adequate and rapid steam-ship
communication between the United States and this country.
These figures are also important from the fact that they show a vast
Argentine exportation of corn and wheat to European markets, a very serious
question in connection with farming industry in the United States.
While Mr. Mulhall, in the inclosure following, discusses only that portion of
Mr. Latzina’s tables relative to England, those given of the trade of
Germany, Italy, France, and Belgium, are fully as significant and worthy of
the attention of the United States.
[Inclosure in No. 229.]
mr. mulhall’s letter.
Trade with Great Britain.
Mr. Latzina’s tables of Argentine trade are so admirably arranged that
you can see at a glance the whole working of commerce in the last ten
years. Take, for example, the dealings with Great Britain, 1878–’87:
| Imports from Great Britain |
$247,000,000 |
| Exports to Great Britain |
78,000,000 |
| Surplus imports |
169,000,000 |
Those people who believe in the balance of trade will weep at the idea
that since 1878 Great Britain has extracted a sum equal to £34,000,000
from the Argentine Republic. As a matter of fact it is quite the other
way, the Argentina having extracted from John Bull a sum twice as great.
It may be said that the influx of British capital has been in the form
of loans, still more aggravating the burthen on the public and the drain
of its resources. Any discussion on such points is futile. Suffice it to
say that in ten years Great Britain has poured into the Republic about
$250,000,000 worth of merchandise and a still larger amount of capital
in loans, railways, land purchases, etc. If you would go back to the old
balance-of-trade theory you must abandon all the features and elements
of progress.
The imports in 1887 from the United Kingdom were so numerous that it is
not easy to sum them up for our readers. They comprise 360 items, and I
wish Mr. Latzina would improve his trade report in this respect by
putting an additional page for each country with a summary under ten or
twelve heads of the principal branches.
First, we have 960 prize cattle of all descriptions, valued at $200,000.
Then come articles of grocery, $1,700,000; dry goods amounting to
$14,000,000; chemicals, [Page 5] $900,000;
hardware and machinery, $10,000,000; coal, $4,000,000; and sundries,
$4,000,000; making in all $35,000,000. Under the head of hardware is
included railway material, not quite $3,000,000 in amount. The
importation of coal was nearly 400,000 tons. In the whole list of 360
items I find only cheese, salt, and sugar which could be produced as
easily in the Argentine Republic as imported. I may also add soap. These
items are, however, so small as hardly to deserve notice. On the other
hand, three items, viz, dry goods, iron and coal, stand for $28,000,000
or 80 per cent. of the total, sufficient evidence of the extremely
useful nature of the components of British trade.
The exports to Great Britain are few, but sum up a value of $17,000,000,
or half that of the articles imported; they are, briefly, as follows:
| Articles. |
Tons. |
Value. |
| Grain |
320,000 |
$9,400,000 |
| Linseed |
63,000 |
3,200,000 |
| Meat |
14,000 |
1,200,000 |
| Hides, skins, and wool |
|
2,400,000 |
| Sundries |
|
900,000 |
| Total |
|
17,100,000 |
Grain stands for more than half, which is surprising, since Great Britain
can draw supplies so easily from India and the United States, from
Russia, Austria, and elsewhere. The item of meat includes 10,000 tons of
frozen mutton, the rest being jerked beef. As a proof of the great
development of trade with Great Britain the exports thither in 1887 were
live times what they were in 1878–79. This branch of trade must rapidly
increase as the frozen mutton business expands. Meantime it is
gratifying to see that small as is the number of British and Irish
residents the trade relations of the republic with the United Kingdom
are greater than with any other nation.
The minor ports of the Parana have risen 160 per cent., those of the
Uruguay only 18 per cent. All the Parana ports show au increase, except
Corrientes, whereas the Uruguay shows a heavy fall at Concepcion and a
lesser one at Gualeguay.
In the second place, as regards nations we find the gross trade exchanged
with them was as follows:
|
1878. |
1887. |
Increase. |
|
|
|
Per cent.
|
| United Kingdom |
$15,520,000 |
$51,860,000 |
234 |
| France |
18,690,000 |
47,610,000 |
155 |
| Germany |
3,230,000 |
21,940,000 |
580 |
| Belgium |
12,380,000 |
23,060,000 |
80 |
| United States |
5,500,000 |
16,940,000 |
205 |
| Italy |
3,440,000 |
10,140,000 |
200 |
| Spain |
3,380,000 |
6,330,000 |
90 |
| Brazil |
4,010,000 |
4,360,000 |
6 |
| Uruguay |
3,070,000 |
8,870,000 |
190 |
| Chili |
2,660,000 |
1,160,000 |
|
| Paraguay |
980,000 |
1,730,000 |
75 |
| Bolivia |
290,000 |
250,000 |
|
| Various |
8,130,000 |
7,520,000 |
|
| Total |
81,280,000 |
201,770,000 |
150 |
Ten years ago Great Britain held second place, the first being held by
France, hut the positions are reversed. The increase of trade with
Germany is marvelous, that with Italy and United States is also most
satisfactory. Meantime we can not fail to deplore the rapid decline of
international relations in South America, caused by the jealous and
mischievous tariffs which the Argentine Republic, Brazil, Chili, etc.,
are erecting against one another, to depress each other’s commerce. They
seem to have an insane delight in doing harm to one another. Much better
would it he if all nations on the South American continent were to form
a Zollverein, allowing the free interchange of commodities and agreeing
to impose a uniform tax of 10 or 20 per cent, on all merchandise coming
from any other part of the world. The war of tariffs that is at present
waged is a scandal and a source of weakness to South American
nations.
[Page 6]
It may be said that in spite of these tariffs the trade of the Argentine
Republic has increased 150 per cent., which is quite true. But who will
venture to say what might have been the increase but for the tariffs?
Ten years ago it was predicted that as soon as the Tucuman Railway
should be pushed further north all the commerce of Bolivia would flow
into the Argentine Republic. The result has been just the reverse, the
trade with that country having fallen 15 per cent, since 1878. Still
worse is the case with Chili, the trade with that republic having
declined 60 per cent. These are facts that can not escape the notice of
the new Finance Minister at Buenos Ayres, who is perhaps as convinced as
myself of the value of free trade and the evil consequences that are
inseparable from protection.
