Mr. Buchanan to Mr.
Gresham.
Legation of the United States,
Buenos Ayres, August 13, 1894.
(Received September 24.)
No. 49.]
Sir: Referring to my telegram of the 4th
instant, I beg to submit my reasons for asking the sanction of the
Department as outlined therein and my subsequent action.
There have been several references made in the public press of this city
to the effect that it was the understood purpose of this Government to
either place lumber, kerosene, and agricultural implements on the free
list or greatly reduce the duties thereon in compliment to the supposed
purpose of the United States of placing wool on the free list. This view
has been understood to meet the favor, either wholly or in a measure, of
the distinguished Argentine minister in Washington, Dr. Zeballos.
A similar inference is contained in the remarks made by the present
minister of foreign affairs, Dr. Costa, during his call at my residence,
referred to in my No. 28.
I have taken pains to study this subject closely since my arrival, and am
of the opinion that the probability of such a course being carried out
by Congress, in whole or largely, is doubtful. I believe it will require
an effort to secure any striking concessions from the present unequal
and heavy tariff on many of our products.
I am led to this conclusion for three reasons.
- First. The belief common here that this country has been very
generous to the United States in custom laws; that our people do a
large and profitable business here; that the balance of trade is in
our favor, and that it requires “free wool” to place any credit on
our side of the account.
- Second. The fact that 75 per cent of the revenues of the Republic
come from its custom-house, considering the large expenses the
Government has to meet and the improbability of any change being
made in the direction of a more equitable system of general taxation
than now exists, it would seem to indicate that the custom-house
will still be looked to as the main source of income.
- Third. Should the illogical and unjust system of applying ad
valorem duties to arbitrary and fictitious values be done away with,
it would necessitate, if the present customs revenue be maintained,
a complete revision and advance in the present tariff rates; this, I
believe would appear to people here to be a step in the wrong
direction; it would also oblige a revision of the present Government
method of calculating the value of imports, which is responsible for
the prevalent idea of the extent and value of our trade. I am not
prepared to believe the present Congress will go to any such length,
although I am informed that the Government tariff bill when
presented will be vigorously
[Page 8]
attacked by several Members of Congress who are outspoken in
advocating low duties and more equitable general taxation.
I am, nevertheless, clear that an earnest effort should be made to have
present evils, where they affect us, corrected so far as possible.
With that purpose in view, I at once acted on your telegram of the 7th
instant, and addressed to the foreign office, on the 11th, a note
concerning the subject, accompanying it with three statistical tables
showing the status of our trade with this country, the errors of the
Argentine statistics with reference thereto, and the excessive and
unjust duties exacted from some of our largest export items to this
country. To the copy of this note and inclosures herewith attached, I
respectfully call your attention, trusting the presentation made will
meet your approval.
Referring again to the subject of the Argentine statistics with reference
to our exports to this country, I feel sure that a careful perusal of
the tables inclosed will justify my suggestions that Consul Baker should
be instructed to use great caution in embodying them in his reports,
inasmuch as such a course gives a quasi indorsement and certificate of
good character to their errors when published in our Consular
Reports.
A reference to Consul Baker’s reports and a comparison of the figures
given by him as to our trade here, taken from the Estadistica de la
Republica Argentina, with our Commerce and Navigation for the same years
will clearly illustrate the reason for the belief existing here as to
the immensity of our trade.
I have, etc.,
[Inclosure 1 in No. 49.]
Mr. Buchanan to
Señor Costa.
Legation of the United States,
Buenos Ayres, August 11, 1894.
Mr. Minister: I have the honor to inclose
herewith for the consideration of your excellency the tables
referred to in my note of the 8th instant.
It is especially gratifying to me to know that the subject of closer
commercial relations between this Republic and the United States is
one regarding which your excellency and the distinguished minister
now representing this Government in Washington have given so many
and such kindly assurances of interest and good will.
The expressions so generously made by your excellency of the wish of
this Government to do all that it consistently can to encourage the
people of the United States in extending their commerce here have
been transmitted to and are most kindly remembered by my
Government.
Under such circumstances I deem it only necessary to briefly call
your excellency’s attention to the conclusious easily drawn from the
tables inclosed, feeling that the burdens now placed on some great
items of the imposts of the United States into this Republic by
reason of high duties and fictitious custom-house valuation will be
equitably, fairly, and promptly adjusted.
It seems desirable, in view of the erroneous impressions existing
among the people of this Republic regarding the extent of the trade
of the United States with your country, to first call your
excellency’s attention to Exhibit A.
I can only account for this belief among your citizens on the theory
that it is based on the assumption that the figures given out by
your statistical office regarding this subject are correct.
I am sorry to say these figures are so much at variance with the
United States statistics, as they apply to our imports here, that I
have been at a loss to understand how your statistician reaches
conclusions so manifestly erroneous and misleading.
I have given the subject careful study, knowing the method used by
the statistical office of the United States in determining values to
be the same employed in applying ad valorem duties, namely, basing
calculations on the current market price in the country of origin,
and am forced to two conclusions:
First, that your statistics of the value of imports from the United
States used the erroneous and fictitious values placed on our goods
by your custom-house law as
[Page 9]
a
basis; and, secondly, that your statistician has charged to the
United States the entry trade of Canada and possibly some other
countries.
His figures given in the Estadistica de la Republica Argentina for
1892 are exceedingly unjust to the commerce of my country, as they
convey the belief that the balance of trade was largely against the
Argentine Republic during that year, when the contrary was the
fact.
They are again unjust because they give color to the belief among
your citizens that our trade is very large and profitable, and from,
these beliefs results the idea that the United States have decided
advantages in this commerce, in return for which they have not dealt
as liberally by the products of this country as they should have
done.
The facts evidenced by the United States statistics given in Exhibit
A show that the balance of trade for the fiscal year ending June 30,
1892, was $2,415,310 in favor of the Argentine Republic; that during
that year 73 per cent of the commerce of this Republic entered the
ports of the United States free of duty as against 6 per cent of the
commerce of the United States entering the Argentine Republic free
of duty.
Believing in the doctrine that the greatest commercial freedom should
be enjoyed by all peoples, your excellency will appreciate my
gratification on the extent of your country’s trade in the United
States and of the generous reception now accorded your products by
our laws.
This generosity and the evidence now being given of the wish of the
Government of the United States to deal with the subject of commerce
on broad ground will, I feel sure, be responsively met by your
excellency’s Government in every consistent manner where wrongs
exist.
It is not necessary for me to say that my Government remembers kindly
the treatment accorded in a large way on one line of manufactures,
wherein the United States are large producers and wherein they have
indirectly been enabled to return to aid in the development of your
agricultural greatness.
Exhibit B gives in detail the statistics of both countries as they
apply to the imports from the United States into this country for
the same year covered by Exhibit A. This table will bear close
study, as it contains in the totals of some groups enormous
differences, which illustrate graphically the unjustness of your
system of custom valuations as applied to some of our products,
notably in the case of lumber.
To Exhibit C I desire particularly to call your excellency’s careful
attention. The illustrations there given of the burdens placed on
some of the large items in the commerce of the United States with
this country, by reason of the application to them of a system of
valuations utterly inconsistent with their worth in the markets of
origin, will, I feel sure, strongly suggest to your excellency’s
sense of fairness and equity the justness of insuring a careful and
satisfactory revision, both in the duty and the valuation, on many
items entering into our commerce with this country.
Indeed, I am so certain that it is but necessary to have the subject
brought to your attention, as I am now doing, to secure the desired
modifications and corrections that I will not add to the force of
the figures given any further argument, reserving such explanations
and comments as may seem proper for the personal interview I hope to
have the pleasure of having with your excellency regarding the
subject.
It is inconsistent with the generous treatment now accorded the
products of the Argentine Republic by the United States, with the
generous actions of your excellency’s Government heretofore
regarding the same general subject, and equally so with the
commendable and worthy desire on the part of your excellency’s
Government to see still greater freedom accorded in the markets of
the United States to your products, to believe that your
excellency’s Government will allow great items in the existing trade
of the United States in this country to be burdened by high tariffs,
unjust valuations, and consequent excessive duties.
I am, therefore, not prepared to accept the view that any request is
necessary to secure for the yellow or pitch pine of the United
States the same tariff rates applying to spruce pine, and a
valuation closely related to its market price in the seaboard
markets of the United States to secure for kerosene, lubricating,
and cottonseed oil more consistent duties than now imposed, and to
have extended in a broad and mutually advantageous manner the
classification of agricultural implements and farm machinery,
including farm wagons therein.
These changes, with others that will suggest themselves to your
excellency as wise, beneficial, and to the mutual advantage of both
countries, will add greatly to the enlargement of the trade of the
Argentine Republic in the United States.
I should be highly pleased to be able to cable my Government at an
early day that this Government will, in its tariff bill to be
presented to Congress, continue its policy of encouraging the
commerce of the United States and will most amply, generously, and
equitably deal with the questions affecting it as herein
submitted.
I am at your excellency’s disposal to confer with reference to this
subject and avail, etc.,
[Page 10]
comparative statistics.
Exhibit A.
Total trade between the United States
and the Argentine Republic, as shown by the official figures of
each country, for the fiscal and calender year 1892.
|
Dutiable. |
Free. |
Total. |
Free. |
| Imports into the United States from the Argentine Republic
for the fiscal year ending June 30, 18921 |
$1,422,175 |
$3,921,623 |
$5,343,798 |
Per cent. 73 |
| Exports from the Argentine Republic to the United States
for the calendar year 18922 |
|
|
4,831,454 |
|
1 Figures taken from Commerce and
Navigation of the United States, 1892.
2 Figures taken from the Estadistica do
la Repnblica Argentina, 1892. No figures given except total.
Note.—Per cent shown by United States
statistics in excess of Argentine statistics, 10.
Total trade between the United States
and the Argentine Republic, as shown by the official figures of
each country, for the fiscal and calendar year 1892.
|
Domestic goods. |
In bond. |
Total. |
| Exports from the United States to the Argentine Republic
for the fiscal year ending June 30, 18921 |
$2,643,325 |
2$284,163 |
$2,927,488 |
| Imports into the Argentine Republic from the United States
for the calendar year, 18923 |
|
|
7,376,583 |
1 Figures taken from Commerce and
Navigation of the United States, 1892.
2 Less than $2,000 of “In bond” paid duty
to the United States; goods simply reshipped.
3 Figures taken from the Estadistica de
la Republica Argentina, 1892.
Note—Per cent shown by Argentine statistics
in excess of United States statistics, 152; per cent free according
to Argentine figures, 9; deducting coal, per cent falls to 6
deducting for evident error in plows and result will be about 5.
recapitulation.
| Imports from the Argentine Republic into the United States
(according to Commerce and Navigation of United States,
1892) |
$5,343,798 |
| Exports from the Argentine Republic to the United States
(according to the Estadistica de la Republic
Argentina) |
4,831,454 |
| Excess of United States figures over Argentine
figures |
512,344 |
| Per cent of excess of United States figures over Argentine
figures |
10 |
| Imports from the United States into the Argentine Republic
(according to the Estadistica de la Republica Argentina,
1892) |
7,376,583 |
| Exports from the United States to the Argentine Republic
(according to Commerce and Navigation of United States,
1892) |
2,927,488 |
| Excess of Argentine figures over United States
figures |
4,449,095 |
| Per cent Excess of Argentine figures over United States
figures |
152 |
| Balance of trade in 1892 in favor of the Argentine
Republic |
2,415,310 |
| Per cent of goods free from the United States in the
Argentine Republic in the United States |
73 |
| Per cent of goods free from the United States in the
Argentine Republic (coal only deducted). |
6 |
[Page 11]
Exhibit B.
Differences by groups in value of
imports from the United States into the Argentine Republic for
the year 1892.
[Note.—The United States figures are taken
from Commerce and Navigation of the United States for the fiscal
year ending June 30, 1892. The Argentine figures are taken from the
Estadistica de la Republica Argentina for the calendar year
1892.]
| Articles. |
Argentine figures. |
United States figures. |
Excess over United States figures. |
Excess over Argentine figures. |
| Agricultural implements |
$1,201,239 |
$781,940 |
$419,299 |
|
| Books and printed matter |
23,051 |
21,395 |
1,656 |
|
| Cotton goods cordage and twine |
944,749 |
417,546 |
527,203 |
|
| Coal |
237,813 |
15 |
237,798 |
|
| Drugs, chemicals and medicines |
55,289 |
40,932 |
14,357 |
|
| Glassware, lamps, and chandeliers |
18,991 |
15,338 |
3,653 |
|
| Iron and manufactures of |
824,896 |
248,023 |
576,873 |
|
| Wood, and manufactures of |
2,874,546 |
686,359 |
2,188,187 |
|
| Oils and rosin |
672,164 |
563,270 |
108,894 |
|
| Turpentine |
32,674 |
52,164 |
|
$19,490 |
| Firearms, rockets, and explosives |
18,994 |
10,786 |
8,208 |
|
| Meat and meat products |
8,750 |
3,664 |
5,086 |
|
| Tobacco and cigars |
3,366 |
23,925 |
|
20,559 |
| All others |
460,066 |
62,136 |
397,930 |
|
| Total |
|
|
4,489,144 |
40,049 |
|
|
|
40,049 |
|
| Net difference of Argentine figures over the United States
figures |
|
|
4,449,195 |
|
Exhibit C.
Actual duty paid on certain articles
under present Argentine tariff.
Table 1.
| Lumber. |
Cost at United States seaboard per 1,000 feet. |
Cost at United States seaboard per square meter. |
Customhouse value per square meter. |
Per cent of duty. |
Per cent of duty actually paid on cost at United States
seaboard. |
| White pine No. 7 (65 per cent comes from Canada) |
$30.00 |
$0.33 |
1 $0.45 |
5 |
9 |
| Spruce pine (75 per cent comes from Canada) |
11.50 |
.14 |
1.45 |
5 |
19 |
| Pitch pine (forming 75 per cent of domestic lumber trade
of the United States to the Argentine Republic) |
10.50 |
.13 |
2.50 |
25 |
110 |
| Black walnut |
125.00 |
1.34 |
31.00 |
25 |
17½ |
| Cherry |
120.00 |
1.29 |
31.00 |
25 |
19 |
1 $41.80 per 1,000 feet.
2 $46.45 per 1,000 feet.
3 $92.90 per 1,000 feet.
Table 2.
| Articles. |
Quantities and manner exported. |
Cost in New York. |
Per cent of duty. |
Per cent of duty actually paid on cost in New York. |
| Kerosene |
Case of 10 gallons equal 38 liters. |
$0.85 |
Per liter, 2 |
89½ |
| Lubricating oils: One quality |
Shipped in barrels of 46½ gallons. Contents weigh 158
kilos; empty barrel weighs 32 kilos; total weight, 190
kilos. |
Per gallon, $0.07; empty barrel costs $1.50; total cost,
$4.75. |
Per kilo, 3 |
1120 |
| Highest quality |
Same as above |
Per gallon, $0.20 |
Per kilo, 3 |
253 |
1 Add freight, 7 cents per gallon, and
duty stands at 71.
2 Add freight, and duty stands at 40.
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Table 3.—Actual duty paid on certain articles under present Argentine
tariff.
| Articles. |
Quantities and manner exported. |
Cost in New York. |
Argentine custom-house value. |
Per cent of duty. |
Per cent of duty actually paid on cost in N. Y. |
| Cotton seed oil. |
Cases of 10 gallons; weight, including case, 48
kilos. |
Per case, $4.65 |
Per kilo, $0.25 |
Per kilo, 12 |
1124 |
| Varnish |
Tin packages of various sizes. |
Per kilo, average, $0.20. |
Per kilo, $0.80 |
Per kilo, 25 |
100 |
| Chairs |
Dozen |
Per dozen, $3 |
Per dozen, $5 |
Per dozen, 60 |
100 |
1 This is valued in custom-house law at
25 cents per kilo, or 150 per cent above cost in New York.
