The Amazing Argentine: A New Land of Enterprise

by John Foster Fraser

There is a naval and military college, from which officers are chosen for the navy and army, but they do not come under the Ministry of Education. By order of the Ministry of War physical drill and rifle shooting are taught in the two highest classes of all secondary schools, these exercises being subject to the supervision of a military officer. The Argentine Government has founded numerous scholarships, and sends students to England, the United States, Italy, France, and Germany. It will be seen that the plan of education is very complete; but it would not appear to give such good results as might be anticipated, for it is a very general complaint that there are no good schools in the country districts.

The attention of the public is frequently called in the newspapers to the unsatisfactory condition of education, in spite of the large sums of money spent upon it annually. It is shown how small is the attendance at the primary schools compared with what it should be if the law was properly obeyed, as would be the case were the results more satisfactory. It is also asserted that the education in the secondary schools is especially defective, and that certificates are issued to university candidates without previous examination, and after merely nominal questioning by inspectors. There are numerous foreign private schools in the country, which all have to submit by law to Government supervision.[A]

There is compulsory military service. The period of continuous training does not exceed one year, and this only in the case of a proportion of the annual contingent. The others are released after three months' drill. With varying periods of training every Argentine from the age of twenty to forty-five is liable to be called upon to defend his country. Though years may pass without any call to attend military drill, every man in the country must learn to shoot.

Heavy duties are imposed on most manufactured articles imported, except in the case of material directly beneficial to the development of the country, such as machinery. Anything which helps in the progress of the Republic has easy entry. So, though it means two years' residence to become a naturalised citizen, anyone who establishes a new industry, or introduces a useful invention, who has contracted to build railways or establish a colony, or who is going to be a teacher in any branch of education or industry, is admitted at once. All these regulations go to show that, despite the perfectly legitimate criticisms which can be made, there is sound common-sense and foresight in the minds of the governing classes.

Everyone in any business or profession must pay an annual licence, and these vary from five to sixty thousand dollars. The latter sum is paid by banks. Money-lenders have to pay from five to seven thousand dollars, whilst in some provinces the patente varies from three to six hundred dollars a year. The postal and telegraph services are under the control of the Ministry of the Interior. Most of the taxation is indirect. Though the tariffs imposed on manufactured articles coming into the country are high—except in the case of specified articles, which are counted as beneficial for the development of the country—and consequently one is disposed to gasp at the price of things compared with Europe, it is not to be forgotten that the direct taxation is not so high as in Europe. I heard it asserted that the reason there are high tariffs is to stimulate manufacture in Argentina. If so, the result has not been markedly apparent. The effect might have been so if the mass of the immigrants into Argentina came from manufacturing countries, like Germany, Belgium, France, Great Britain, or the United States. That is not so, and one of the hindering checks has been the language. The crowd has come from Italy and Spain, mostly unskilled labourers or men whose knowledge is limited to the land.

Argentina has no coal—and that will always handicap her if she enters the field as a manufacturing nation. The climate being what it is, there is no need of coal for heating purposes. A fire-place is a rare sight. But the importation of coal is a heavy charge on the working of railways and on shipping. Syndicates are now endeavouring to introduce oil as fuel. Oil has been found in the country, but as yet not in sufficient quantity to make it an important addition to the products of the Republic. So I see small prospect of Argentina's ever becoming a manufacturing country in the modern meaning of the phrase. Blest as she is in innumerable respects, she could not be worse placed if she had any such desire. She cannot produce cheaper, because most of her raw material, including coal, must be imported, and heavy freights would handicap economic production. Take the case of two raw materials which she has in abundance, leather and wool. There are shoe factories, but the quality can in no way compete with that of the importations. Only the rougher kind of boots are made. There is some woollen manufacturing, but the material produced is crude, except in a few cases. Besides, the rush of immigrants is to the land, and not into workshops. The men who are skilled artizans are few. Therefore, although here and there you get local manufacturers who can hold their own in the markets, it may be said that in general the articles imported are better and cheaper, notwithstanding the tariff. However, as I will show in a later chapter, there is room for industrial development within a defined range.

Then there are the constant labour disputes in the towns. Running along with the prosperity of the country is the trouble of repeated strikes amongst the workers. It is not my province to go into the merits of the respective disputes. But they have been so recurrent, and have so much hampered trade, that the Government has taken the most drastic measures by laying hands on the chiefs of trade unions when grievances are fomented and strikes threatened.

Although the number of the strings of commerce which are in the hands of Englishmen is gratifying, it would have been strange if I had not heard the usual complaint that the Germans are edging in, and that, if care is not taken, the British will be ousted from their pre-eminence. It was the old story that British merchants are too conservative, and do not pay sufficient heed to the personal likings of Argentine customers. It is true I saw lots of German goods. They were cheaper and not of the same quality as those of British make. Further, German houses give much longer credit than do their British rivals. Another cause of complaint is that in business disputes the long-drawn-out law's delay, and the obstacles in the path of the foreigner seeking redress, mean that justice is not always secured.

It is not to be denied that, although the returns are excellent, Britain does not retain the same proportion of the import trade which she had a few years ago. There is no disputing the superiority of the British article; but German and French merchants having a market to secure are more accommodating to their customers, whilst in regard to agricultural implements the United States makers are pushing their hardest. Their machines are more showy than the English. It seems a small point, and yet I have thought it would be well if our British manufacturers would not only turn out a serviceable tool, but bear in mind the temperament of the people who are to be the buyers. Put two threshing machines in a Buenos Aires warehouse, that from Britain painted grey, and that from the United States painted red; the Latin Argentine is naturally attracted to the red, even though its merits be inferior. Hundreds of millions sterling are to be expended in public works during the ensuing few years, and British contractors should be awake to the possibilities. Belgian contractors have already been in the field, but their work has not always been "up to sample," so that the present opportunity is considerable.

Old residents directed my attention to a great change which is taking place in the import houses of Buenos Aires. Until a few years back it could be said that the British were first and the rest nowhere. British capital has flowed abundantly into the country, but toward developing its natural resources rather than in trade. Now German houses have a strong footing in "B.A.," and, naturally enough, they are encouraging the products of their own land. Go into a German house, and it is German wares that are for sale. Go into a British house, and you find United States and German wares as well as English being offered. I was seriously convinced, whilst studying the trend of trade in Argentina, that it is absolutely necessary that the managing heads of English firms who have dealings with South America, and find they are not getting that share of the increased trade which the growth of the country warrants, should make periodic visits to Argentina to learn for themselves what is the matter.