It will be as well to give some retrospective data here, which will show how far the production of sugar has developed during the last few years. In another chapter we shall deal with the production of sugar from the industrial point of view.
Thus, in 1884 the harvest was 24,000 tons; in 1894, 75,000 tons; and in 1895 it amounted to 109,000 tons, or an increase of 352 per cent. in eleven years. In 1904 the yield was 134,000, or an increase of 360 per cent. over that of 1884. In 1905 it was 137,000 tons; in 1906, 180,000; in 1907, 113,000.
We have stated that the Argentine Republic underwent a crisis in the matter of sugar, on account of excessive production; and that like other sugar-producing nations she has had to facilitate the export of the surplus by granting a bounty to exportation.
This premium or bounty was conceded in the following manner: a law of 1894 forced the producer to pay 6 centavos per kilogram, or ·576d. per lb. on manufactured sugar; but offered him a bounty of 16 centavos per kilogram—1·536d. per pound—on all sugar exported under certain conditions.
This law ceased to be in force on the 31st of December 1904; but was replaced by another, of the 1st of January 1905, by which the manufacturer who did not export 25 per cent. of the sugar he produced paid 15 centavos per kilogram—or 1·44d. per lb.—on a quarter of his produce, or on the proportion which he did not export.
These two laws contain a radical difference. By the first, the State received 6 centavos per kilogram upon all sugar manufactured, of which it restored 4 centavos for each kilogram delivered for consumption, and then restored 16 centavos for each kilogram exported; thus keeping to a
minimum tax of 2 centavos on sugar delivered for consumption. By the second law the State received nothing on sugar leaving the factory, as the producer confined himself to giving an undertaking for the value of 15 centavos per kilogram on a quarter of his manufactures, which undertaking was returned to him if he exported a quarter of his produce; so that in case he did export his produce the State gained absolutely nothing. But according to a resolution on the part of the Government, passed in April 1905, the tax of 15 per cent. was suppressed, together with the obligation of exporting a certain percentage of the sugar made. The sugar industry thereupon entered upon a new period of absolute liberty, and at the same time was deprived of official protection. In this matter the Argentine Republic acted in accordance with the international agreement of Brussels, which suppressed the sugar bounty.
The consumption of sugar during the eight years 1897-1904 was 780,000 tons, or 97,000 tons per annum. This consumption has not actually been uniform; for instance, in 1897, about 80,000 tons were consumed; while in 1904, 1905, 1906 and 1907, the figures were respectively about 115,000, 162,000, 127,000, and 109,000 tons.
Vines.—Another important branch of agriculture in the Argentine is viticulture, which is more especially utilised in the Provinces of Mendoza and San Juan. To give some idea of the development of this branch of agriculture we may state that in 1885 80,376 acres were planted with vines, while to-day the figure is over 139,000. Of this total 74,620 acres are in Mendoza and 30,580 in San Juan. The different species of grape are selected from the best to be found in cultivation in France and other vine-growing countries.
The vineyards have been laid out under favourable conditions, yet their product leaves something to be desired. Moreover, bad wines have often been put on the markets, sour wines, and wines adulterated with water, which have discredited the native wines, and have led many to doubt whether the Argentine wine industry can ever really take root.