| Revenue. | Dollars Gold. | Revenue. | Dollars Paper. |
| Import duties | 51,930,000 | Public works (in bonds) | 5,000,000 |
| Additional duties | 3,100,000 | Spirits and beer | 19,800,000 |
| Port dues, &c. | 5,230,000 | Tobacco | 17,400,000 |
| Consular dues, fines, &c. | 930,000 | Sanitary works | 7,100,000 |
| Buenos Aires Provincial Debt | 983,429 | Stamps | 9,450,000 |
| National Bank Service | 347,004 | Posts and telegraphs | 9,700,000 |
| Railways | 9,000,000 | ||
| Various | 12,529,319 | ||
| 62,520,433 | 89,979,319 |
Below are given the figures since 1903:—
| Revenue. | Expenditure. | |||
| Gold. | Paper. | Gold. | Paper. | |
| 1903 | 46,615,855 | 65,466,010 | 32,139,160 | 93,072,572 |
| 1904 | 52,254,428 | 70,004,834 | 25,597,625 | 104,177,150 |
| 1905 | 53,076,067 | 84,778,282 | 82,813,587 | 136,065,516 |
| 1906 | 61,616,090 | 88,835,790 | 30,128,828 | 174,688,551 |
| 1907 | 64,527,983 | 97,153,870 | 25,521,412 | 186,107,107 |
In conclusion, the important subject of tariffs demands notice. The Republic has long adopted a highly protective fiscal policy. The object is to create as many industries as possible, and therefore to discourage foreign competition by the imposition of heavy duties. The high cost of living is usually attributed to this system, and undoubtedly many articles would be cheaper if the tariff was lower; but its effect is probably exaggerated, and even under complete Free Trade Argentina would still be a dear country. It is the comparative lack of development and enterprise, and also the unwillingness to take trouble over small things, which are the main causes of dearness; and this is the characteristic of all new countries. That Protection is unpopular it would be rash to affirm. It is the direct imposts, and above all the municipal, that give rise to complaining in the streets. The immigrants come from highly protected countries, and are accustomed to heavy indirect taxes; they would, in all probability, angrily resent direct taxation, even if it were much lower than the present scale of imposts. As the table above shows, the customs are the sheet-anchor of the Exchequer, and Ministers could not possibly dispense with them, nor would manufacturers hear of such a thing. "Every one," says an experienced resident in Buenos Aires, "as soon as he starts a business, looks about for higher tariffs in his line."
A good many among the intellectual classes have academic leanings towards Free Trade, and the opinion is sometimes expressed that in the end the Government would raise more revenue by a general duty of about 20 per cent. But the manufacturing interest, which already complains that it cannot compete with English and French goods, is an insuperable obstacle.
The accomplished Dr. Martin Garcia Mérou remarks: "The situation of the United States is unique in the world. The amazing prosperity of this country is based upon the producing and consuming power of her forty-five independent States, which stretch over an immense continent, and of which some differ in climate and conditions as widely as Spain differs from Norway, but they all have a single system of land and river communication which is without rival and without precedent. The absence of fiscal barriers between those different States is the permanent and fruitful cause of their greatness and prosperity. In this manner a country, which is apparently the most Protectionist in the world, is the very one which demonstrates in the most practical and visible fashion the incalculable benefits of free commerce."
This conviction is gaining ground, and there are many persons, intimately conversant with trade and industry, who wish for changes in a liberal direction. Señor Ricardo Pillado, the able chief of the Agricultural Department, has penned many minutes urging a reduction of tariffs, but it is doubtful whether the opinions of a few men, however accomplished, will ever penetrate among an ill-informed population; and even if their views were understood it is most unlikely that they would have power to eradicate the ingrained protective opinions of the masses and to create a feeling among them powerful enough to overcome the resistance of vast interests whose policy is now in complete accord with the feelings of the masses.
Señor Pillado says[115]: "For a considerable number of years Protection has been a heavy obstacle to the progress and expansion of our country. Most sincerely do I declare that we all ought to use our utmost efforts to reform a financial system which is grounded in such fundamental errors as protective tariffs."
It was in 1883 that the Republic first decided upon Protection. By the tariff of 1884 a duty of 50 per cent. was imposed upon arms, powder, alcohol, cards, perfumery, tobacco, snuff, and wax matches. A duty of 40 per cent. was imposed upon clothing, hats, shoes, harness, carriages, furniture, rockets, and wooden matches. Many articles necessary to production, such as coal, thread, ploughs, wire, agricultural machinery, printing presses, books, sacking, steam engines, iron, lumber, rock-salt, and paper, were taxed only 5 or 10 per cent. Similar articles, which were even less likely to be produced at home or were still more urgently needed as the raw material of industry, were admitted free. Among these were machinery for factories or shipping, live cattle or fish, plants, seeds, railway material, metal pipes of at least 30 inches diameter, blasting powder, and sheep-wash. It will be seen, therefore, that an attempt at a scientific tariff was made, and it has proved so acceptable to the Argentines that it has been greatly elaborated and extended. Nor does the nominal figure of the duty represent the whole of the increased cost, for the customs officials are required to add to the declared value of the articles the freight and other expenses, and to raise the duty in proportion. Consequently the imposts are subject to large and arbitrary enhancements. The following summary will give a rough notion of the present fiscal system:—
Free.—Most industrial materials, such as railway, mining, or electrical plant and most kinds of machinery; also herbs and seeds. Books and magazines are free.
Five per cent. ad valorem.—Other forms of industrial material, as mercury, crude sulphur, china clay, jute, lead, &c. Several kinds of machinery. Jewellery comes under this section.
Ten per cent. ad valorem.—Various chemicals for industrial use.
Fifteen per cent. ad valorem.—Certain kinds of timber.
Twenty per cent. ad valorem.—Steel in bars, plates and sheets; tissues of unbleached cotton or coarse linen cloth.
Twenty-five per cent. ad valorem.—All articles not elsewhere specified or exempted.
Thirty per cent. ad valorem.—Tissues of wool of any kind, pure or mixed.
Thirty-five per cent. ad valorem.—Blankets, jewel cases, iron screws, bolts and nuts.
Forty per cent. ad valorem.—Most fancy articles as trunks, perfumery, furniture, boots, and many kinds of clothes.
Fifty per cent. ad valorem.—Arms and saddlery.