The Argentine Republic: Its Development and Progress

by Pierre Denis

April 1914: Rioja—Sierra de los Llanos—San Juan—Mendoza.

July 1914: Entre Rios.

These journeys, by rail or on well-known roads, were not supposed to be for the purpose of exploration or discovery. Their one object was to enable me to make a provisional classification of the chief types of country and forms of colonization, and to draw up a methodical programme for more thorough research. The work which I trusted to do in a more leisurely way was, however, suspended in 1914, and, in spite of my very strong desire to do so, I was unable to resume it on the spot in 1919. I have therefore been compelled to publish my first observations, completing them, as well as I could, by a bibliographical study of the country. I have made use of some fragments of a popular work which I began, at the request of the Argentine Commission, for the International Exhibition at San Francisco, of which several chapters were published in my absence by the University of Tucumán (Pierre Denis, Modern Argentina: Chapters of Economic Geography. Publications of the University during the Centenary of the Congress of Tucumán of 1816. Buenos Aires, 1916).[1]

My knowledge of the publications on Argentina has two conspicuous gaps. The first is deliberate. I declined to study at second hand the documents and chronicles which are our sources, to the end of the eighteenth century, for the history of the various provinces that were to form Argentina. Hence the historical data on colonization which will be found in the following chapters relate almost entirely to the nineteenth century.

The second gap I was, to my great disappointment, unable to fill up. A large part of the local publications—official or other—maps, statistics, etc., never reached Europe, and Buenos Aires is the only place where one can make a thorough study of them. These publications were available to me until 1914. Since then I have been restricted to the resources of the Paris and London libraries, which are very scanty; and less has been sent from Argentina since the war. I have not the complete statistics up to date.

I trust, however, that this picture of Argentina has much more than a retrospective character; that it is not out of date before it is published. I may add that no statistics would enable one to solve the problem which Argentina in 1920 presents to an observer. Has the European War merely retarded the economic evolution of the country, or has it given that evolution a new direction? Will or will not the relations which Argentina is now resuming with the rest of the world be of the same character as the pre-war relations?

The effects of the war upon the life of the country must not all be put on the same footing. That some of the exporters to Argentina have gained by the war and others lost—that the share of the United States, and even of Japan, has greatly increased—is a fact that may be regarded from the Argentinian point of view as of secondary importance. The war has, moreover, had the effect of disorganizing marine transport and bringing about a sort of relative isolation which is not yet quite over. The reduction in the imports of English coal has made the petroleum wells of Rivadavia of greater value to the country. It has compelled the Argentinians to make a hurried inventory of their natural resources in the way of fuel. Local industries have tried to meet the needs of the Argentinian market, where they had no longer to bear the competition of European goods. The grave disturbance of prices has enabled them to export certain products which had hitherto been confined to home markets. The war has, moreover, not interfered with the existing streams of export on a large scale from Argentina. The Republic continues to send its cereals, meat, hides and wool to Europe; and there is no reason to suppose that the competition of buyers is likely to diminish, or that the cultivation of wheat and lucerne must become less profitable.

The two essential effects of the war seem to have been the stopping of the stream of immigration and the progressive reduction of the support which Europe gave to the work of colonization in the form of advances of capital.

From 1914 to 1918 only 272,000 immigrants landed at Buenos Aires, while 482,000 emigrants left the country. In 1918 the figure of immigration and emigration was only 47,000, less than a tenth of what it was in a normal year before the war. The withdrawal of European capital was felt from the very beginning of the war, and it has gone on uninterruptedly, capital from North America not being enough to supply the deficiency entirely. At the same time the extraordinarily favourable balance of trade has led to the storing of an ample reserve of capital in the country. Argentina has, in a very short time, won a financial independence which, in normal conditions, would have entailed long years of work and prosperity.