Minister O’Brien to the Secretary of State .

No. 126.]

Sir: I inclose herewith clipping in duplicate taken from the Buenos Aires Herald of April 19, 1906, commenting upon the President of Paraguay’s message at the opening of Congress on the 1st instant.

From this editorial it would appear that there has been considerable material and moral progress in the country since the close of the last civil war.

[Page 1428]

I am expecting printed copies of President Baéz’s message, and when received I will forward the same to the department.

I am, etc.,

Edward C. O’Brien.
[Inclosure.]

paraguay—the president’s message.

The message of the President of the Republic of Paraguay read at the opening of the ordinary sessions of Congress on the 1st instant, considered as an indication of the very considerable material and moral progress realized in that country since the close of the last civil war, is a document pregnant with more than usual interest.

We are impressed, from its attentive perusal, with the manifest improvement in the general situation, evidenced as it is by the influx of foreign capital and the development of the nation’s resources, due to the regular working of its institutions and the growing sense of social and economic security.

As evidence of these assertions we have the fact that La Industrial Paraguaya, as stated in the opening part of the message, has increased its capital from eight to thirty million dollars. This is the most important limited liability company in the Republic, but in its wake we have the insurance company La Nacional, with a capital of five millions; La Paraguay, with ten millions; La Paraguay, a carrying company, with two millions; La Selratica, with three millions; El Quebracho de Puerto Maria, with five millions; El Gran Hotel del Paraguay, with one million, etc.

The national exchequer.—In 1905 the customs receipts reached a total of ₱22,467,970, as contrasted with ₱8,428,705 in 1900, and the product of the internal taxation has doubled.

The extract of quebracho, together with the yerba mate, is now one of the most important items in the national revenue. The Crane dues of 1 centavo gold have produced in five months a total of ₱381,888, and the tax of 46 centavos gold to be paid per cubic meter on exportation has not yet begun to be levied.

The President promises the adoption of measures tending to reduce the standard currency and to fix the same so as to obviate the fluctuations which are so detrimental to business transactions.

The message continues:

“The establishment of a standard currency will accrue naturally from the regularization of our financial system, at present still in embryo; from the development of the institutions of credit, which will cheapen loans and foster national production; from the regular investment of the public revenues in such a manner that the ordinary budget may be normally served without being thrown out of equilibrium by extraordinary expenses, as, for instance, special taxation and loans.”

The President states that an agreement has been arrived at with the railway company, which will be submitted to the consideration of Congress; he recounts the history of this affair, which has certain unfortunate phases, and concludes as follows:

“That which is of importance for the nation is not the repurchase of the railway nor the acquisition of the value of its shares for $1,050,000, but rather the improvement of the railway service and the construction of branch lines in other directions.

“This railway, in spite of deficiencies in its working, has rendered, and continues to render, important services to the country. By its means it is possible to export great quantities of wood and other products which feed our international commerce and contribute to the public revenues. If this railway were to disappear Paraguay would return to the life of isolation, poverty, obscurity, and ignorance in which have vegetated our country districts for the last fifty years.”

International relations.—With reference to this point the President mentions that the Republics of Argentina and Brazil cultivate the most cordial and neighborly [Page 1429] relations with Paraguay, and that the commercial policy of the Argentine Republic is entirely favorable to Paraguayan interests.

On the question of boundaries he expresses himself as follows:

“Bolivia has sent to Asuncion a new plenipotentiary with a view to an amicable solution of the territorial differences existing between the two countries. I refer to the mission confided to His Excellency Dr. Emeterio Cano. As the just desires of that friendly nation coincide with those of Paraguay, the Government has hastened to appoint a special plenipotentiary, in the person of Dr. Manuel Dominguez, to agree upon a new boundary treaty with the Bolivian diplomatists. With the Argentine Government there has been an agreement entered upon for the determination of the principal arm or channel of the river Pilcomayo, in consequence of the award in arbitration of President Hayes. This operation, purely technical as it is, is identical with that undertaken with Brazil in the matter of the determination of the river Apa.”

Administration and political matters.—Public instruction, roads, army organization, immigration, and colonization receive very attentive consideration from the President in his message. With respect to the latter topic, he enunciates an important reform in the following paragraphs:

“The ambition of the immigrant is the possession of a certain extent of land, as personal property for himself and family. The legislation in the matter only accords him, at cost price, an extent not greater than 20 hectares, which is insufficient for his personal needs, and likewise fails to meet his legitimate aspiration to leave behind him an inheritance that can be divided amongst his heirs.

“For this reason there should be granted at least from 75 to 100 hectares to each family of agriculturists whose productive capacity is in excess of the value thereof.”

President Baéz concludes his message by eulogizing a policy of conciliation between the various parties and by declaring that he will call to public posts men of any and every party, without requiring from them any other qualification than that of fitness.