The peaceful conquest of Argentina by Europe was but a natural outcome of conditions. That continent had long realized the advantages of those broad fertile plains situated in a temperate climate. Europe likewise was in need of a granary near her markets, and these rich leagues with easy access provided what she ardently wanted and greatly needed. Force was not necessary in this conquest, for the power of money alone won the day, especially for England. British gold built five-sixths of the railways, nearly all the great frigorificos, the port works, and many other enterprises. British banks handled the national loans, and in every way British money won its way and made that country paramount in influence, even though Spain and Italy had two million former subjects living on the country. The total amount of British money in Argentina exceeds $1,500,000,000. Germany and France also have large investments there, and Italy as well, but they are small when compared with the English sovereigns. The United States investments are hardly worth considering, as they are so insignificant. In the last few years our large meat packing firms have been endeavouring to get a foothold in Argentina, and two are already operating establishments of their own. The spectre of a meat trust is already beginning to haunt the Argentinians, and the government in particular. It is said that some of the old established concerns have been bought out by the American firms, and are simply operated under the old names. This it was impossible to verify, so I am unable to state it as a fact or simply rumour. The fact that these meat barons are entering that field is in itself significant, and they will no doubt make an effort to gather up the entire industry, and thus be able to govern the prices just as they do in the United States. Adverse legislation will probably head them off, however, unless the power of money should stifle the opposition.
The financial history of Argentina has been a checkered one and not without its scandals. In reality for years investors looked askance at all kinds of Argentine securities. The fact is that the national government suffered from its moral, if not actual, responsibility for the numerous loans floated by the various states. The national government in a real sense should have no more responsibility for a provincial debt than our Federal Government assumes the obligation of a state under our form of government. Creditors naturally tried to press this responsibility whenever a province defaulted, and in many instances the government accepted the liability. Money was borrowed for all kinds of purposes, in particular by the notorious Celman administration, and the government became badly involved. The province of Buenos Aires became a notorious defaulter in its “cedulas,” and its administrators have many times been characterized as “robbers” by the British security-holders. The municipalities of Cordoba and Santa Fé also have rather unenviable records. Many of these debts are being slowly adjusted, however, while the national government has no difficulty in placing new loans under the more recent administrations.
Argentina to-day possesses one of the largest banks in the world, the Banco de la Nacion. It succeeded another national bank which went up in smoke a few years ago after a notorious career. Foreign banks do a large part of the business of the country. The first bank, called the Casa de Moneda, was established by English and Argentine capital as early as 1822. One of the leading banks of the present day is the London and River Plate, which has been established for almost half a century. It has paid many dividends as high as twenty per cent., so that its stock is considerably above par. Interest used to be as high as twenty-four per cent. on loans, and exchange fluctuated greatly. To-day interest is much lower, though still high, and exchange is more steady. The London and Brazilian Bank, the British Bank of South America, the Anglo South American and the Bank of London and Mexico are other British banks. Then there are German, French, Italian and Spanish banks, which do an immense business. The Provincia de Buenos Aires is one of the largest native banks, and it has a number of branches.
The Argentine Commercial Code, as it exists to-day, is a well-selected and well-digested assortment of the best points in the commercial laws of other countries. Many eminent men have participated in the development of this code. The laws relating to trade and contracts are excellent, but the latter have sometimes been at the mercy of judges who were not over-scrupulous, although foreigners have had less trouble in that line than natives. The laws relating to the organization of incorporated companies are excellent. Under them each vote counts irrespective of holdings, a man with one share having as much influence as the man with a thousand. This prevents a one-man company, as there must be at least ten shareholders. Any concern working under a concession must have a fiscal agent, who is nominated by the government or municipality, and whose duty it is to supervise the accounts and general conduct of the concern. If this agent is an honest man, and not susceptible to bribes, he can have great influence for good; if, however, he is corrupt, the shareholders are doubly unfortunate.
The Bolsa, or stock exchange, in Buenos Aires is a great institution. Millions of dollars worth of securities and grains are sold on the floor of this building. It reminds one of our own stock exchanges, except for the very babel of voices. Although the cries of the brokers are all in Spanish, you will see excited groups around you talking in Italian, German and English. Most of the brokers are able to join any group and converse in that language. Argentine securities are sold on this exchange in parcels and they rise and fall rapidly, the margin in one day often being considerable. Prior to the great crash of 1890, a half billion dollars worth of securities in gold values were sold at this exchange. When the panic came ninety per cent. of the companies failed, and the shares were not worth a cent on the dollar. The great national bank, with a capital of $50,000,000 national money, which closed its doors, precipitated the crisis, and brought down with it the London house of Baring Bros. The depositors of this bank lost more than $70,000,000 by the unfortunate failure, which was brought about by crookedness on the part of the management, and high financing. Money came in so easily and rapidly that the directors thought there was no end to the golden stream headed their way. Immense sums were loaned to irresponsible politicians with no hope or scarcely expectation of having it returned. Large drafts would also be cashed from the same sources, and bribery was rampant. Its loans at one time were over four hundred million dollars in national money.
However old the history of Argentina, the civilization of the country is essentially new. One may find a beautiful mansion in the midst of a princely domain. Everything else, however, is crude. The workmen who are scattered over the estancia are ignorant and unprogressive, and if left to themselves would retrograde. Even near the cities the people live in a very primitive way. The roads across the pampas are hardly distinguishable from cattle trails, and they are certainly no better. The bones and carcasses of cattle and sheep that have died on the march are numerous, and do not beautify the highway. The railroad maps are no criterion of the actual settlement of the country. Names will be seen in abundance, but most of them are only stations for freight upon big estancias, with elevators, stock-pens and perhaps a water-tank. Even a small town may be distant twenty or more miles from a farmer in some of the older settled provinces. Everything points to a country in its infancy. The habits of the natives and colonists are usually sluggish and seemingly unrefined in many ways, but the kindliness and hospitality of the Latin is everywhere in evidence. The village life of American states is missed, for the little railroad settlements seem composed of a shifting, wage-earning population different from our villagers, most of whom own their own modest little dwelling. Here a shack answers for a habitation.
Argentina could furnish homes for and feed a population of one hundred millions. In this settlement, however, it is doubtful if the Anglo-Saxon will have much part. It will be a harvest field for that race to reap the wealth, but a breeding-place for the Latin. The Anglo-Saxon does not find a companionship among the Italians and Spaniards. Furthermore the loneliness of the plain grows upon him. The poor man who attempts to make a home in this country, as the homesteaders have in our western states and in Canada, will not succeed. He must have money to begin with and ability to compete with the wealthy estancieros who would be his neighbours. There is still plenty of opportunity to acquire virgin land at a comparatively low price within five hundred or six hundred miles of the capital, and watch it grow in value. Some colonies or communities have been quite successful, if the management has been in good hands. Several European companies have tried the plan of bringing in colonists and selling them lands. They advance money for machinery and the necessities, receiving in payment a certain share of the products. The Baron Hirsh colony of Jews has been quite successful, but in this case unlimited money was back of the scheme in addition to the spirit of benevolence rather than the commercial and money-getting mania.
SHIPPING HIDES TO THE UNITED STATES
The number of acres of land under cultivation in Argentina has more than doubled in the past ten years. The acreage that was tilled for the season of 1909 was 47,000,000 acres. Of this number 15,500,000 was sown in wheat, 7,500,000 in corn and 3,600,000 in flax. The following are the figures of production of cereals as reported by the Department of Agriculture in metric tons of 2,205 pounds avoirdupois: wheat, 2,576,009, corn, 2,336,334, linseed, 918,413, oats, 435,540. Of this production seventy-five per cent. of the corn is available for export, seventy per cent. of the wheat and ninety per cent. of the linseed. Only a small portion of the wheat is ground into flour before it is exported. The cereals are sent to Great Britain, Germany and Belgium, although the United States has been buying considerable quantities of linseed. There were 2,723,000 frozen carcasses of mutton exported in 1909, going almost wholly to Great Britain, and 2,584,301 of beef. In addition to this a lot of jerked, or salted, beef is sent to nearby markets. The United States purchases the bulk of the hides, and for the year 1909 received 2,608,230, weighing 38,798 metric tons. Horse hides, of which two hundred and fifty thousand were exported, went to Germany, sheep hides to France and goatskins to Uncle Sam. Argentina exported 176,682 metric tons of wool, of which France took almost one half and the United States 18,961 tons more than Great Britain.