Tramway lines, which date from 1870, are to be found in all important towns. Those of Buenos Aires, Rosario and La Plata are owned by public companies. According to the census returns of 1895, the total mileage was 496 m., representing a capital expenditure of $84,044,581 paper. Electric traction was first used in Buenos Aires in 1897, since when nearly all the lines of that city have been reconstructed to meet its requirements, and subways are contemplated to relieve the congested street traffic of the central districts; the companies contribute 6% of their gross receipts to the municipality, besides paying $50 per annum per square on each single track in paved streets, 5 per thousand on the value of their property, and 33% of the cost of street repaving and renewals.
The telegraph lines of Argentina are subject to the national telegraph law of 1875, the international telegraph conventions, and special conventions with Brazil and Uruguay. In 1902 the total length of wires strung was 28,125 m.; in 1906 it had been increased to 34,080 m. The national lines extend from Buenos Aires north to La Quiaca on the Bolivian frontier (1180 m.), and south to Cape Virgenes (1926 m.), at the entrance to the Straits of Magellan. Telegraphic communication with Europe is effected by cables laid along the Uruguayan and Brazilian coasts, and by the Brazilian land lines to connect with transatlantic cables from Pernambuco. Communication with the United States is effected by land lines to Valparaiso, and thence by a cable along the west coast. The service is governed by the international telegraph regulations, but is subject to local inspection and interruption in times of political disorder.
The postal and telegraph services are administered by the national government, and are under the immediate supervision of the minister of the interior. Argentina has been a member of the Postal Union since 1878. Owing to the great distances which must be covered, and also to the defective means of communication in sparsely settled districts, the costs of the postal service in Argentina are unavoidably high in relation to the receipts.
Shipping.—Although Argentina has an extensive coast-line, and one of the great fluvial systems of the world, the tonnage of steamers and sailing vessels flying her flag is comparatively small. In 1898 the list comprised only 1416 sailing vessels of all classes, from 10 tons up, with a total tonnage of 118,894 tons, and 222 steamships, of 36,323 tons. There has been but slight improvement since that date. There are excellent fishing grounds on the coast, but they have had no appreciable influence in developing a commerical marine. The steamships under the national flag are almost wholly engaged in the traffic between Buenos Aires and Montevideo, the river traffic, and port services.
Agriculture.—In 1878 the production of wheat was insufficient for home consumption, the amount of Indian corn grown barely covered local necessities, and the only market for live stock was in the slaughtering establishments, where the meat Live stock, &c. was cut into strips and cured, making the so-called “jerked beef” for the Brazilian and Cuban markets. But three years later a new economic development began. In 1881 President Roca offered for public purchase by auction the lands in the south-west of the province of Buenos Aires, the Pampa Central, and the Neuquen district, these lands having been rendered habitable after the campaign of 1878 against the Indians. The upset (reserve) price was £80 sterling per square league of 6669 acres, and, as the lands were quickly sold, an expansion of the pastoral industry immediately ensued. The demand for animals for stock-breeding purposes sent up prices, and this acted as a stimulus to other branches of trade, so that, as peace under the Roca regime seemed assured, a steady flow of immigration from Italy set in. The development of the pastoral industry of Argentina from that time to the end of the century was remarkable. In 1878 the number of cattle was 12,000,000; of sheep, 65,000,000; and of horses, 4,000,000; in 1899 the numbers were—cattle, 25,000,000; sheep, 89,000,000; and horses, about 4,500,000. Originally the cattle were nearly all of the long-horned Spanish breed and of little value for their meat, except to the saladero establishments. Gradually Durham, Shorthorn, Hereford and other stock were introduced to improve the native breeds, with results so satisfactory that now herds of three-quarters-bred cattle are to be found in all parts of the country. Holstein, Jersey and other well-known dairy breeds were imported for the new industries of butter- and cheese-making. Not only has the breed of cattle been improved, but the system of grazing has completely altered. Vast areas of land have been ploughed and sown with lucerne (alfalfa); magnificent permanent pasturage has been created where there were coarse and hard grasses in former days, and Argentina has been able to add baled hay to her list of exports. In 1889 the first shipment of Argentine cattle, consisting altogether of 1930 steers, was sent to England. The results of these first experiments were not encouraging, owing mainly to the poor class of animals, but the exporters persevered, and the business steadily grew in value and importance, until in 1898 the number of live cattle shipped was 359,296, which then decreased to 119,189 in 1901, because of the foot-and-mouth disease. In 1906 the export of live stock was prohibited for that reason. Large quantities of frozen and preserved meat are exported, profitable prices being realized. Dairy-farming is making rapid strides, and the development of sheep-farming has been remarkable. In 1878, 65,000,000 sheep yielded 230,000,000 Ib weight of wool, or an average per sheep of, about 3½ ℔ In the season of 1899-1900 the wool exports weighed 420,000,000 Ib, and averaged more than 5 ℔ per sheep. The extra weight of fleece was owing to the large importation of better breeds. The export, moreover, of live sheep and of frozen mutton to Europe has become an important factor in the trade of Argentina. In 1892 the number of live sheep shipped for foreign ports was 40,000; in 1898 the export reached a total of 577,813, which in 1901 fell off to 25,746. In 1892 the frozen mutton exported was 25,500 tons, and this had increased in 1901 to 63,013 tons.
The advance made in agricultural industry also is of very great importance. In 1872 the cultivated area was about 1,430,000 acres; in 1895, 12,083,000 acres; in 1901, 17,465,973 acres. In 1899 the wheat exports exceeded 50,000,000 bushels, and Crops. the Indian corn 40,000,000 bushels. The area under wheat in 1901 was 8,351,843 acres; Indian corn, 3,102,140 acres; linseed, 1,512,340 acres; alfalfa, 3,088,929 acres. The farming industry is not, however, on a satisfactory basis. No national lands in accessible districts are available for the application of a homestead law, and the farmer too often has no interest in the land beyond the growing crops, a percentage of the harvest being the rent charged by the owner of the property. This system is mischievous, since, if a few, consecutive bad seasons occur, the farmer moves to some more favoured spot; while, on the other hand, a succession of good years tends to increase rents. The principal wheat and Indian corn producing districts lie in the provinces of Santa Fé, Buenos Aires, Córdoba and Entre Rios, and the average yield of wheat throughout the country is about 12 bushels to the acre. Little attention is paid to methods of cultivation, and the farmer has no resources to help him if the cereal crops fail. In the Andean provinces of Mendoza, San Juan, Catamarca and Rioja viticulture attracts much attention, and the area in vineyards in 1901 was 109,546 acres, only 18% of which was outside the four provinces named. Wine is manufactured in large quantities, but the output is not sufficient to meet the home demand. In the provinces of Tucumán, Salta and Jujuy the main industry is sugar growing and manufacture. In 1901 the production of sugar was 151,639 tons, of which 58,000 tons were exported. The sugar manufacture, however, is a protected and bounty-fed industry, and the 51 sugar mills in operation in 1901 are a heavy tax upon consumers and taxpayers. Other products are tobacco, olives, castor-oil, peanuts, canary-seed, barley, rye, fruit and vegetables.
The pastoral and agricultural industries have been hampered by fluctuations in the value of the currency, farm products being sold at a gold value for the equivalent in paper, while labourers are paid in currency. The existing system of taxation also presses heavily upon the provinces, as may be seen from the fact that the national, provincial and municipal exactions together amount to £7 per head of population, while the total value of the exports in 1898 was only £6 in round numbers. The guia tax on the transport of stock from one province to another, which has been declared unconstitutional in the courts, is still enforced, and is a vexatious tax upon the stock-raiser, while the consumption, or octroi, tax in Buenos Aires and other cities is a heavy burden upon small producers.
Manufactures.—Manufacturing enterprise in Argentina, favoured by the protection of a high tariff, made noticeable progress in the national capital during the closing years of the last century, especially in those small industries which commanded a secure market. The principal classes of products affected are foods, wearing apparel, building materials, furniture, &c., chemical products, printing and allied trades, and sundry others, such as cigars, matches, tanning, paints, &c. In some manufactures the raw material is imported partly manufactured, such as thread for weaving. The lack of coal in Argentina greatly increases the difficulty and cost of maintaining these industries, and high prices of the products result. Electric power generated by steam is now commonly used in Buenos Aires and other large cities for driving light machinery.
Commerce.—The rapid development of the foreign trade of the republic since 1881 is due to settled internal conditions and to the prime necessity to the commercial world of many Argentine products, such as beef, mutton, hides, wool, wheat and Indian corn. Efforts to hasten this development have created some serious financial and industrial crises, and have burdened the country with heavy debts and taxes. During the decade 1881-1890 great sums of European capital were invested in railways and other undertakings, encouraged by the grant of interest guarantees and by state mortgage bank loans in the form of cedulas, nominally secured on landed property. In 1890 the crisis came, the mortgage banks failed, credits were contracted, the value of property declined, defaults were common, imports decreased, and the losses to the country were enormous. The constant fluctuations in the value of the currency, then much depreciated, intensified the distress and complicated the situation. Recovery required years, although made easier by the sound and steady development of the pastoral and agricultural industries, which were slightly affected by the crisis; and the steadily increasing volume of exports, mainly foodstuffs and other staples, saved the situation. There have been some changes in commercial methods since 1890, the retailer, and sometimes the consumer, importing direct to save intermediate commission charges. Such transactions are made easy by the foreign banks established in all the large cities of the republic. The conversion law of 1899, which gave a fixed gold value to the currency (44 centavos gold for each 100 centavos paper), has had beneficial influence on commercial transactions, through the elimination of daily fluctuations in the value of the currency, and the commercial and financial situation has been steadily improved, notwithstanding heavy taxation and tariff restrictions. The import trade shows the largest totals in foodstuffs, wines and liquors, textiles and raw materials for their manufacture, wood and its manufactures, iron and its manufactures, paper and cardboard, glass and ceramic wares. The official valuation of imports, which is arbitrary and incorrect, was $164,569,884 gold in 1889, fell off to $67,207,780 in 1891, but gradually increased to $205,154,420 in 1905. The exports, which are almost wholly of agricultural and pastoral products, increased from $103,219,000 in 1891 to $322,843,841 in 1905.
Government.—The present constitution of Argentina dates from the 25th of September 1860. The legislative power is vested in a congress of two chambers—the senate, composed of 30 members (two from each province and two from the capital), elected by the provincial legislatures and by a special body of electors in the capital for a term of nine years; and the chamber of deputies, of 120 members (1906), elected for four years by direct vote of the people, one deputy for every 33,000 inhabitants. To the chamber of deputies exclusively belongs the initiation of all laws relating to the raising of money and the conscription of troops. It has also the exclusive right to impeach the president, vice-president, cabinet ministers, and federal judges before the senate. The executive power is exercised by the president, elected by presidential electors from each province chosen by direct vote of the people. The president and vice-president are voted for by separate tickets. The system closely resembles that followed in the United States. The president must be a native citizen of Argentina, a Roman Catholic, not under thirty years of age, and must have an annual income of at least $2000. His term of office is six years, and neither he nor the vice-president is eligible for the next presidential term. All laws are sanctioned and promulgated by the president, who is invested with the veto power, which can be overruled only by a two-thirds vote. The president, with the advice and consent of the senate, appoints judges, diplomatic agents, governors of territories, and officers of the army and navy above the rank of colonel. All other officers and officials he appoints and promotes without the consent of the senate. The cabinet is composed of eight ministers—the heads of the government departments of the interior, foreign affairs, finance, war, marine, justice, agriculture, and public works. They are appointed by and may be removed by the president.