Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President Transmitted to Congress December 7, 1903
Mr. Ames to Mr. Hay.
Buenos Aires, May 6, 1903.
Sir: I have the honor to transmit under separate cover three copies of the messagea read on the 4th instant, at the opening of the Argentine Congress, by the President of the Republic. The translations, or rather resumes, in English, which are inclosed herewith, are from the Standard and the Herald. The Standard’s résumé is in most respects the better, and its rendering of the paragraphs anent the Monroe doctrine and the Argentine note I can commend as a particularly accurate translation. Such portions of the Herald’s resume as complete or amplify the Standard’s version are printed in italics. These passages and the whole Standard excerpt taken together give an adequate rendering of the entire message.
The comments of the local press on the message are generally unfavorable. It is contended that the internal questions, such as proper currency legislation, repeal of unconstitutional laws and taxes, the better administration of justice, the better ordering of provincial governments, etc.—questions of vital importance to the people—have been scarcely touched upon, while much stress has been laid on the extraordinary success and prosperity of the country externally, the establishment of peace with Chile, the tremendous crops, the greatly increased balance of trade in the country’s favor, and all the other conditions, a knowledge of which is likely to improve Argentine credit abroad. On the other hand, and apparently for this very reason, the opinions of the European press, as quoted in the Buenos Aires papers, are for the most part complimentary. Unquestionably the message has strengthened Argentine credit abroad.
I have, etc.,
Chargé d’Affaires ad interim.
message.
Gentlemen, Senators, and Deputies:
Congress opens this year’s session with the Republic freed from fears, misunderstandings, complications, or dangers of any kind at home or abroad, other nations regarding it as in a flourishing and prosperous condition of vigorous development. The crisis has been long and severe, but we have known how to bear and surmount bad times and misfortunes by perseverence and firmness, while acquiring experience which we must utilize in the future.
An era of positive and real progress has now commenced. The country has full confidence in its own powers and is energetically devoting itself to reproductive labor. Capital is again flowing to it in large amounts, and Argentine credit, we note with intense satisfaction, is completely restored in the European markets, as it is the most powerful factor in our wealth and civilization.
The splendid harvests we have been favored with, which evoke remembrance of Biblical blessings, have stimulated enterprise in all classes, and this enterprise will be further stimulated by the prosperous year. The industrial, commercial life of the [Page 8] country has recovered its former vigor. Imports have increased, exports have reached unprecedented proportions, the revenue is increasing, and business in all branches shows a notable and favorable reaction.
foreign affairs.
Our relations with other foreign nations have been increasingly cordial and the representatives of the most distant countries have brought us their friendship and sympathy, giving proof of a feeling of human concord and solidarity.
You are aware that in spite of our boundary question with Chile having been submitted to the arbitration of His Britannic Majesty, rivalry and distrust still existed between the two peoples and were accentuated by incidents inevitable in so prolonged a dispute respecting an extensive frontier. At a very critical moment, however, the two Governments entered into an agreement for general arbitration, the equivalence of their fleets, and the designation of the, same arbitrator for the demarcation of the boundary line.
This agreement, which received your sanction after luminous debates, and also the unanimous approval of the people (constituting a noble example and a grand lesson which was applauded all over the world), prepared the way for the respectful obedience of the two peoples to the award of His Britannic Majesty, which put an end to the arduous controversy of more than half a century.
The two nations have thus averted, without loss of dignity, the great dangers to which their long-standing litigation had exposed them, and they understood that they had to avoid any criticism which might weaken the authority of a decree giving evidence of the spirit of the equity and justice which had guided the arbitrator.
I must now acknowledge the debt of gratitude due to His Britannic Majesty who, with such good will, accepted the opportunity to render this eminent service to the two peoples, who, thanks to him, will henceforth recognize the same line of demarcation.
The arbritrator proceeded with exceptional celerity, as if to compensate for the delays and prolonged expectations of the past, to make effective the power with which he had been invested, and the commissions appointed by him to mark out the boundary line have already completed their task. The boundary marks fixed in the Cordillera will not only point out the line of territorial division but will also be an indestructible record of the realization of the most noble aspirations and ideals of the rights of nations.
The results of this policy begin to be felt. The two peoples are establishing a sure basis for their future relations upon reciprocal esteem and respect. Commerce is returning to its accustomed channels and the arts of civilization and peace are reviving.
The Argentine Republic has once more demonstrated the traditional elevation and disinterestedness of its international policy.
Much emotion was felt in America in consequence of the intervention of some European nations in Venezuela, one cause alleged for it being the omission to meet the service of the debt contracted by that nation in order to carry out some public works. This led to the supposition that when foreign citizens or subjects contracted for loans of a public character the State to which they belong is also a party to the operations, although the lenders might not have relied upon that intervention and might have calculated the circumstances of the borrowing country in order to fix the conditions of the loan. A private contract would thus be converted into an international obligation. This appeared to me to be the enunciation of a dangerous doctrine, to which I ought not to remain indifferent. The note, in which this Government made known to the United States its opinions upon the matter has already been made public, merely pointed out the dangers to the nations of this continent involved in the doctrine by virtue of which loans of a public character contracted for by foreigners, after taking into account the conditions of the borrowing country and imposing upon it more or less onerous stipulations and interest, can be converted at a given moment, without any exhibition of bad faith on the part of the debtor, into a cause of international complaint authorizing the employment of force and the subordination and tutelage of the local governments, if not their total disappearance, as the result of financial interventions.
At first the comments made upon this communication, before its exact terms were known, were not generally favorable to it, but afterwards there was a reaction of public opinion, as well in Europe as in America, and it was recognized as being justified and it was admitted that in the circumstances of the case we could assume no other attitude. The Argentine note was, in reality, confined to the enunciation of elementary principles including the indisputable rights of these nationalities to grow and be developed under the shelter of international law. Its doctrine does not exclude any [Page 9] of the obligations which that law imposes upon civilized peoples; it does not recognize supremacies or lessen responsibilities. Limiting itself to assert the sovereignty of nations, it expresses at the same time the commotions and alarm which would be produced by any act of colonization or conquest in any region of the continent.
The reply of the United States coincides, in substance, with these declarations and recommends international arbitration for settling questions which may arise in reference to national obligations. Though it has not stated its policy with regard to the compulsory recovery of public debts (which it was not in any way asked to do), it is satisfactory to state that the Argentine note has not fallen into a vacuum, but that authoritative and eloquent speeches have been delivered, even in the British Parliament, in support of our doctrine.
It is understood, in fact, that the Republic has not gone in search of protectors or alliances, but has merely stated its views respecting European intervention in a section of this continent which has been convoked more than once to hear the opinion of its States and to establish the consequent bases of a common right.
finance.
The apprehensions of war and loss of crops in some provinces in the period 1901–2 determined a marked commercial paralysis and brought in their train an inevitable and severe shrinkage in the public revenue.
The ordinary and extraordinary expenditure of 1902 was fixed at $33,027,223 gold and $102,946,092 currency, as against an estimated revenue of $47,413,347 gold and $72,890,000 currency. Meantime the revenue from all sources only amounted to $40,240,264 gold and $69,129,483 currency, showing a deficit on the estimates of $7,173,082 gold and $3,760,516 currency, or say a total in currency of $20,108,432 c/l.
This would naturally have produced a very considerable difference but for the fact of the Executive, noting the decline in the revenue, having curtailed the expenditure to the greatest possible limit conformable with the regular march of government. Due to this system of economy and to the assistance lent to the treasury by the Banco National provided by the budget law the deficit was reduced to its lowest expression, and has been cleared off since by application of surplus revenue over estimates during first months of this year.
The severe shrinkage in imports and revenue experienced last year was compensated by increase of exports which ran to $179,486,727 gold, being $11,760,625 gold in excess of the 1901 figure, and the balance of trade in favor of the country was represented by $76,447,471 gold, the effect of which has been felt in various ways, especially in the exchange market, which has constantly shown rates favorable to the country thus offering facility for payment of imports and official obligations.
The exchange rate is constantly improving. Our internal and external bonds are attaining the highest quotations.
Having resumed from July 1, 1901, the amortization of our foreign consolidated debt, suspended as from 1893, the service has been made punctually. In 1902 there was disbursed on this head $5,368,466 gold. This same year the nation amortized $8,028,993 currency and $459,600 gold of its internal debt; as, however, in respect of special laws there was an emission of $2,892,600 currency, the net decrease in our internal debt in 1902 was $5,136,393 currency and $459,600 gold.
The exactitude and correctness of our proceedings has undoubtedly tended to strengthen our credit and to afford greater facilities for financial operations. The quotation of some of our 5 and 6 per cent stocks over par allows us to foresee the possibility of reducing the interest at some future time by means habitually employed in other countries. This same improvement in credit has allowed the Executive to place on advantageous terms the bonds of the 1891 issue and those of the Banco National, operations authorized by your honors, so that the promise to negotiate these securities only on honorable terms for the nation has been strictly fulfilled.
It must also be considered as a revelation of the wealth of the Republic and the confidence it inspires that an enormous stock of gold has flowed into the country, unequivocal proof of the realty and solidity of the economic reaction. In the caja de conversion alone there are over $23,000,000 gold issued against paper at the rate fixed by law. I am decidedly of opinion that this law should be maintained and that we should replace, when possible by the treasury, the funds distrained and applied to other objects for reasons already known. In this way the promise to convert the currency at the rate already fixed, which can not be modified without causing great economic and commercial perturbation, can be made effective within a period more or less measurable.
Among the measures to be recommended for legislative attention perhaps there is none more efficacious than that having for its object the revision of our taxation [Page 10] system. The honorable Chamber of Deputies must have realized this as regards custom dues when it named a special commission of its own house to study the system and outline necessary reforms. The Executive looks upon this move as matter for congratulation, and, while ready to assist it forward in every way, thinks it might be made extensive to the internal taxes.
The prosperous march noted in every branch of production and commerce, and which must find a reflection in the revenue, will allow us to suppress the 5 per cent additional on imports created to cover the exigencies of an abnormal situation. I think the framing of the budget for next year will be an opportune moment for relieving imports of this burden.
The law, No. 4064, of January 24, 1902, authorizes the Executive to construct public works to a sum of $15,000,000 gold, and at the same time to issue obligations on the railways owned by the nation.
In consideration that it might be prejudicial to the national credit to take advantage of the latter for the object in view, I thought it would be advisable to limit action to applying the securities given in guarantee of loans when released, deducting the sum to be handed to the Banco de la Nacion Argentina in accordance with the law, No. 4053, of January 13, 1902.
In these circumstances Messrs. Greenwood & Co. declared their option on the totality of the port obligations, which they held as guarantee, to a sum of £1,459,400, at the rate stipulated of 85 per cent. The sale of these bonds leaves the Government with a balance of $3,613,654 gold.
The reasons which forced the Government to contract this debt at short date are already known, the principal one being to avert the sale of the same bonds at a figure which it was calculated could not pass 70 per cent and which the construction company had the right to sell. In view of these antecedents, it must be admitted that the negotiation has been most satisfactory.
agriculture.
To all the branches dependent on the ministry of agriculture, which are closely united with the development of the public riches, a vigorous impulse has been given. The administration is being developed on secure bases, and attends to immigration, colonization, agricultural and pastoral education, exploration of territories, mines, and sources of water, questions of sanitary police of animals, and to the problems of national and international commerce.
Immigration has diminished owing to the crisis and to bad harvests in recent years, and last year the arrivals exceeded the departures by only 13,560 persons. However, those who leave are less adapted to the necessities of the country than those who are now arriving, who are mostly agricultural laborers and easily find well-remunerated employment, and I am convinced that, when our economic conditions improve, better guarantees of peace and justice are given, suitable regulations are made for labor, and our great natural industries are perfected, the immigratory current will again increase.
As regards the public lands, the law of last year will permit them to be devoted to different uses according to their quality and will facilitate the disposal of them to real settlers. Already several lots of a league each in Chubut have been sold for pastoral colonies to immigrants from South Africa and elsewhere upon condition of their becoming naturalized. This will be the most rapid and convenient form of colonization for Patagonia, which can support many millions of cattle and sheep. Meanwhile various commissions are exploring regions hitherto almost unknown.
The administration has recovered for the nation 325,264 hectares comprised in concessions of which the conditions were not fulfilled; 9,947,000 hectares have been measured by the commissions appointed in 1901 and 40,732,000 are being explored, so that by the end of this year we shall have all necessary information respecting 50,000,000 hectares, or 20,000 square leagues, being more than one-half of the area of the State lands.
The national colonies are making rapid progress, as also are the towns on the Atlantic coast, and 60 leagues have been reserved for colonists from South Africa. The ministry is also endeavoring to attract to these territories immigrants from the north of Europe.
Agriculture is constantly progressing, and 8,000,000 hectares are now devoted to the cultivation of wheat, linseed, maize, and other cereals, against the 3,000,000 of ten years ago.
Preferential attention has been given to agricultural and pastoral education, and practical schools have been established at Villa Casilda and Cordoba, and others are being installed at Tucuman, San Juan, Las Delicias, Bella Vista, and Posadas. The [Page 11] diffusion of technical knowledge and the complete teaching of agriculture and stock raising, from simple elementary notions to the superior agronomic and veterinary schools, are indispensable for making the best use of the favorable conditions of our climate and soil.
live stock abroad.
The alterations made at the end of last year, of the law of sanitary police for animals and the regulations made by the Executive, perfected the service which guarantees us against the introduction of exotic contagious diseases, insures the scrupulous inspection of animals intended for exportation, and establishes energetic measures against the diseases existing in the country. A convention was also entered into with the Government of the Republic of Uruguay for the adoption of identical sanitary precautions simultaneously by the two Republics, thus facilitating their exchange of live stock. The result of these operations was the reopening of the British ports, and in the first quarter of this year 25,000 head of cattle and 95,000 sheep have been exported. To insure and increase these benefits, it is only necessary to extend and perfect the technical personnel of our sanitary inspection in the proportion required for the security, importance, and reputation of our live-stock industry.
The exportation of frozen meat during 1902 represented a value of $13,572,000 gold, against $7,000,000 in 1900. The exportation of butter also increased from $264,000 gold in 1900 to $1,280,000 gold in 1902. This is a new source of wealth which is destined to attain an extraordinary development.
railways.
The importance which certain railway companies have acquired and the increased number of lines authorized by national and provincial laws at different epochs, have given rise to problems which have also been witnessed in other countries in similar conditions, and which will have to be resolved in the same way, harmonizing private and public interests.
This is what is happening with the fusion of some companies. Monopoly has in many instances been the last grade arrived at after a disastrous competition, and in the impossibility of averting these phenomena which are beyond the action of the authorities the intervention of the latter must be directed to supervision of those points in which the private interest of the companies can come into conflict with the general interest of the population. This difficulty overcome, the fusion of the companies may really become an advantage and benefit because it will allow them to reduce capital, economize in working expenses and thus lower tariff rate, which is the desideratum.
To this same end will tend the development of the lines owned by the nation, the tariffs of which, based on principles of equity and having for principal object the public interest, may mark a level which the private lines can approach. This is all the more practicable, taking into consideration the fact that it is to the interest of the companies themselves to reduce their rates to a minimum in order to expand their traffic.
In pursuit of these ideals, a commencement had to be made with the national lines, normalizing administration and exploitation in order to make receipts and expenses balance, which has been effected, and the plan will be further developed under the laws recently sanctioned for the railway to Bolivia, to Ledesma, Chaco, San Juan, Santa Fe, and Famatina (cable), laws which are in actual execution, while the valleys of Salta and Catamarca are being studied and surveyed with a view to extending the lines to centers of production and thus provide cheap transport.
The Central Argentine and Buenos Aires and Rosario railways have presented themselves to the Government, requesting permission to amalgamate. The Executive is studying the matter attentively, and will lay it before you for your consideration.
peroration.
Gentlemen, we are on the threshold of a historical period when all the elements of life and prosperity of the country appear to combine to augurjiappy times for it; and it is beginning to excite the interest and curiosity of the world through its culture, its extraordinary powers of production, and its rapid development.
In our short and eventful existence as a nation we have traveled over a long road strewn with civil wars, crises, tyranny, and disorder, and we can now look to the future free from the uncertainty and anxiety of former times, which more than once made the most sincere and strong-minded patriots despair of our lot.
We have still much to achieve and many self-conquests to make which even countries of centuries’ growth have not yet achieved in the science of government.
[Page 12]Republican government is based more on habits and customs than on written law, and requires a constant exercise by the citizens of their political liberty of action in the multiple economic and social interests of the community.
The electoral law you voted last year will not be sterile in promoting political progress. The defects of the old electoral system will disappear with it if the political parties honorably comply with the new law, and the judges apply it with the same impartiality as they now do the common law.
Senators and deputies, when next year for the last time I open Congress, the electors of the new President of the Republic will have been elected. My most sincere wish is to see the highest aspirations of Argentine patriotism fulfilled in this election, so that the laws and head of the nation may be worthy of respect at home and abroad and a guaranty of peace and progress.
In opening your session I implore the guidance of Divine Providence for your deliberations.
internal affairs.
The internal affairs of the country are prosperous, and there has been no conflict between provinces or between the nation and the provinces. The intervention in Buenos Aires in February and March, and the abstention from intervention in Rioja, where the legislature had deposed the governor, were in accordance with the constitutional powers of the Government. The national territories are developing at a great pace, on account of their great natural wealth and the greater increase of the ways of communication with them. The Executive thinks that the law of 1884 concerning the territories needs revision. This reform was proposed in the message of 1900, and in a bill presented in August, 1900, to which the Executive had made certain amendments.
During the last month of last session strikes which threatened the public wealth during the nation’s greatest development broke out. A state of siege was ordered in Buenos Aires and Santa Fe, where the chief ports threatened by the strike are. This enabled the Executive to adopt extreme measures for the protection of commerce. Congress had at that moment thought it convenient to sanction the law of residence. This law had long been lacking in our statute book. It was capable of modification, and could now be discussed in a calm manner. The law of residence could not be considered a limitation of the right to inhabit our soil, but gave confidence to immigration. In last year’s strike twenty-six trades took part, and the strikers soon adopted an aggressive attitude against those who would not stand by their fellows. The workingmen’s societies were dominated by the anarchistic element. The result of the state of siege and law of residence had justified their passage.
Crimes in the capital had increased greatly of late years, and perhaps the reform of the criminal code submitted to Congress would remedy this.
The postal and telegraphic service had been extended, and it was calculated that it would have a revenue of $6,000,000. The telegraphic system has already reached the most distant point in Patagonia, Cabo Virgenes. During the present year the line to the Cordilleras, already made as far as October 16, should be united to that of the Atlantic.
The sanitary condition of the country is satisfactory, and no exotic diseases have been reported. He recommends the sanitary bill submitted last year.
judicial.
The creation of Federal courts of appeal in the capital, La Plata, Cordoba, and Parana has completed the judicial system of the country. The supreme court has been relieved of some of its most arduous duties. It is also proposed to establish Federal courts at Bahia Blanca and Santa Fe.
It would be proposed to establish a correctional colony for minors, and to turn the present reformatory into an adult prison. The construction of Ushuaia prison is well advanced. In the territories only lesser criminals could be imprisoned. It was necessary to re-form the law for the construction of a Federal court-house.
education.
Higher education would receive encouragement with the economic independence of the universities. The construction of a morgue and museum of natural history would complete the scheme of higher education.
Shortly a new scheme of secondary education will be presented to Congress.
[Page 13]The construction of normal and secondary schools will shortly be undertaken, relieving the country of the burden of rents for such schools. The recent reforms in the national colleges have increased the number of children attending them.
Primary education has greatly increased. Eleven thousand more children have entered the official schools. The financial aspect of education has also improved. At Concordia and Bahia Blanca commercial schools have been founded. The industrial school will shortly have its own building.
The frozen meat exports in 1902 amounted to $13,752,000 gold. The butter export trade increased from $264,000 gold in 1900 to $1,280,000 gold in 1902. Mining operations were beginning. Coal Measures in Misiones, Neuquen, and Santa Cruz were explored and borax deposits in the Andes.
Commerce is increasing rapidly, especially that with South Africa. During the first three months of the present year imports had amounted to $33,539,498, an increase of $5,955,223 over those of the same quarter of the last year, and it is calculated they may be $123,000,000 gold during the year, an increase of $20,000,000. Exports during the first three months have been $69,351,199, an increase of $12,639,251 gold over those of the first quarter of 1901–2. It was calculated that they will amount to $250,000,000 in the year, an increase of $76,000,000.
Maritime trade is increasing, and the tonnage entered and cleared this year is calculated at 11,000,000 gross register. The coasting trade by both the Government vessels and the Hamburg-Sud Americaner Line has been prosperous.
railways and works.
Financial difficulties in recent times have delayed the making of various public works. The rapid rise of several railways has given birth to new problems of harmonizing public with private interests. After great competition some companies have been fused. Intervention in this matter should be limited to regulating the points where public interest is at war with private. This done, the fusion of railways might even be of great benefit. The development of the national railways would tend to the cheapening of transportation. The national railways have been reformed so that their expenses are covered by their revenue without aid from the taxpayer. The line to Bolivia would make the working of the lines cheaper, as also those to Ledesma, the Chaco, San Juan, Santa Fe, and the Telfer Line to Famatina.
The Central Argentine and Rosario railways had asked the Government to recognize their fusion, and the petition would be sent to Congress for consideration. During the year 388 kilometers of new railways had been opened. The Republic had now 18,000 kilometers. Nearly 20,000,000 passengers had been carried and over 14,000,000 tons of merchandise. The gross earnings had been $42,489,000 and the net $20,000,000 gold.
Improvements had been made in the navigation of the rivers. In October last a contract was signed for the construction of a port at Rosario. It is hoped that at the end of next year the first section of that port would be opened to public use. The tenders for the extension of the port of the capital have not been accepted, as they were not within the terms prescribed by the law. A new plan is being discussed.
The military port has its essential works completed, and there is no hurry over the rest of them.
The San Juan dam had been completed, and a similar one was being made on the Rio V at Villa Mercedes. Works are being made to supply several provincial capitals with water. The sanitary works of the capital are being extended and will increase the revenue of the works, which amounted the last year to $5,460,000 gross and $3,450,000 net.
The Congress Hall works are being pushed forward, and next year Congress will be opened in a hall worthy of Argentina. The works of the open-door lunatics’ colony are well under way.
army and navy.
The army has made great progress. The conscription law has been carried out scrupulously. A new enrollment has taken place, and 260,451 citizens have enrolled in the line and 210,643 in the national and territorial guards. It is necessary to modify the recruiting, retirement, and other military laws.
The pact with Chile concerning naval disarmament has been religiously carried out, and great economy has resulted. The staff whose services were thus no longer needed were employed in other duties, such as the survey of the river and its lighting.
It is to be hoped that the change of electoral system may abolish many political vices of the past.
When Congress next opens the legislature will have been renewed and the electoral college appointed which will choose a new President.
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