CHAPTER IX
MODERN ARGENTINA—SETTLEMENT AND PROGRESS
The era of modern Argentina is inaugurated by the Presidency of Sarmiento in 1868. Hitherto her business had been to work out her destiny with much waste of human life and wealth, now her task was to create both. Population[53] began to increase and industries flourished. Railways were extended and the administration was improved. It was a season of prosperity in almost every part of the world, and in this Argentina fully shared. Brazil had suffered much during the war, and Argentina profited by supplying its needs and also made up for her own losses by developing the vast pastoral and agricultural resources. The only political event of importance during Sarmiento's term of office was an insurrection in Entre Rios, where the veteran Urquiza was still Governor. One Lopez Jordan was leader of the revolt, and he succeeded in capturing and murdering Urquiza. The old man deserved a more peaceful end, for, though cruel, he had aimed at the public welfare, and he was one of those who did good service in establishing the Republic on a firm basis. After much bloodshed the rebellion was suppressed by young Julio Roca, a rising soldier.
Sarmiento's term of office came to an end in 1874. Mitre, favoured by the Porteños, and Dr. Avellaneda were rivals for the succession, and the latter became President, greatly to the annoyance of the Porteños. He introduced a more economical policy, and the country continued to prosper, but by far the most important event of the time was the reduction of Patagonia—an event the magnitude of which cannot even yet be estimated. It was less than a hundred years ago since the first small attempts at settlement had been made there, and Patagonia was still practically an enormous waste, a no-man's land, unmapped and roamed over by savage Indians. General Roca, now Minister of War, began to peg out claims for posterity. After Rosas had fallen from power the Indians had recovered most of the territory which he had taken from them, but now that Argentina was at peace the Government was more than able to hold its own, and in 1878 Roca employed the whole power of the country to subjugate Patagonia. He succeeded in making the Rio Negro the southern boundary. The Province of Buenos Aires claimed the whole of this new territory, but the other members of the Federation were naturally unwilling to see her thus augmented, and she had to be content with an addition of 63,000 square miles. The rest of the new land was divided into Gobernaciones, or Territories, as they would be called in the United States.
But he was to attain more notoriety in a less useful struggle. The perennial source of discord—the Provinces against Buenos Aires or the Federalists against the Unitarians—which ought to have been settled on the downfall of Rosas, was once more to convulse the Republic. Avellaneda, who was favourable to the Provinces, was determined to choose his successor, and the opposition candidate was Dr. Tejedor, who had the support of Mitre. Roca was the nominee of the outgoing President. The situation rapidly became strained, and in June and July, 1880, the partisans of either side took up arms and there was considerable bloodshed in Buenos Aires. The advantage rested with Roca's party; the Porteños were compelled to ask for terms of peace, and at last the difficult constitutional question was settled. Without delay Buenos Aires was declared the Federal capital, and although the Porteños were nominally defeated, their principles triumphed in reality. The result was the establishment of a strong central Government, and this was of the happiest effect in consolidating the Confederacy and in binding together its hitherto disjointed members.
This was a time of great material prosperity. Other opportunities will be taken of dwelling on this subject; here it is sufficient to say that industry and commerce expanded very rapidly. There was a huge boom; men seemed to be growing rich rapidly; it was a period of inflation and the President's attempt to establish the currency on a gold basis was unpopular and unsuccessful. But under his rule, and with the assistance of the able Pellegrini, the credit of Argentina improved and a loan of £8,000,000 was negotiated. On the whole, Roca's administration did him credit, although undoubtedly he might have taken more advantage of the exceptionally favourable circumstances, and introduced sounder and more honest principles of administration.
His successor, Dr. Juarez Celman, was a person of altogether inferior stamp. The fever for speculation grew rapidly, large additions were made to the national indebtedness, and the premium on gold doubled. The Government, as is usually the case with South American Governments, was below rather than above the public standard of conduct. Government, Provinces, and municipalities, led the way in wasteful expenditure, the inflation reached its height. The time of the inevitable crash drew near.
In 1889 public opinion, wiser than the Government, grew apprehensive, and the Civic Union was formed with the object of overthrowing the President and reforming the finances and administration. Roca and Mitre, sincerely anxious for the good of their country, were the leading spirits in the opposition, and in July, 1890, the Revolution began. Some fighting took place, but the spirit of faction was less ferocious than it had been a generation ago, and most men seemed to consider that the desperate financial condition needed radical measures. The resistance of the Government was half-hearted, and on July 30th Celman resigned.
Pellegrini, the Vice-President, succeeded him, and it was time for the national affairs to be placed in more capable hands. The treasury was empty, and there was a great burden of debt. The whole financial and monetary system was in confusion, and in September Pellegrini was obliged to issue notes for $50,000,000. This step provided money for the immediate necessities of administration, but it helped to precipitate the crash which came in March, 1891. This vast monetary convulsion will be long remembered in England, and it has served as a salutary warning both to European investors and to speculators in the country itself, who now recognise that credit and the reputation for honesty is one of the chief factors in a country's prosperity. The Banco Nacional, in spite of all efforts on the part of the Government to save it, was submerged, and the same fate met every other bank except the London and River Plate. As a matter of course, political trouble followed industrial trouble, and in February while Roca was driving in a carriage he was fired at and slightly wounded. It was, however, to him and Mitre that the people looked to extricate them from their troubles, and the Porteños nominated Mitre as candidate for the Presidency amidst great enthusiasm, but the Cordoba section was indignant, and Mitre was induced to withdraw on condition that the new candidate should be non-party and that the election should be impartial. At the beginning of 1892 Saenz Peña, the candidate favoured by Mitre and Roca, was elected, and Alem, the leader of the new Radical party, known as the Civic Union, was banished. Pellegrini's term of office had disappointed his supporters and few regretted his retirement.
The task of Peña was hardly less difficult than that of Pellegrini. The improvement in the finances and administration came very slowly, but the chief troubles were political, for Argentina had not yet adapted herself to the smooth working of federal institutions. Alem, who had returned from exile, was still preaching disaffection and taking advantage of the turbulent disposition of the various Provinces. In 1893 Costa, the Governor of the Province of Buenos Aires, who had a strong military force, planned the overthrow of the central Government, and his example was followed by Santa Fé and several other Provinces. In August Costa was forcibly deposed, but the movement in Santa Fé was fostered by Alem, and the Radicals were eager to overthrow Peña and his friends. Matters grew extremely serious, for there was disaffection in the navy, but on September 25th General Roca took command of the army, and on October 1st he rescued Rosario from the hands of the revolutionists. Alem and other leaders were imprisoned and the power of the Radicals vanished, but public affairs remained in a threatening condition.
Evidence was found of widespread corruption, and that there was no public feeling against it is shown by the following incident. Costa had left the affairs of Buenos Aires in confusion, and the central Government appointed Dr. Lopez to administer them. He found evidence of malpractices against one Colonel Sarmiento and charged him, but failed to secure a conviction. Thereupon Sarmiento provoked Lopez to a duel, in which the latter was mortally wounded, but Sarmiento received a merely nominal punishment. The Government was thoroughly distrusted; it seemed powerless to reform abuses, and there was little likelihood that if the ruling Ministers were removed their successors would do any better. Such progress as the country made was due to the efforts of private citizens and the improvement in the trade conditions of the world.