5^ DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE PHILIP B. KENNEDY, Director MISCELLANEOUS SERIES— No. 88 ECONOMIC STUDIES OF COUNTRIES DURING THE WAR COMPILED IN THE BUREAU OF RESEARCH AND STATISTICS WAR TRADE BOARD THE ECONOMIC POSITION OF ARGENTINA DURING THE WAR BY L. BREWSTER SMITH and HARRY T. COLLINGS Research Assistants ELIZABETH MURPHEY, Junior Research Assistant PRXCE, 15 CENTS Sold by the Superintetident of Documents, Goveraxnent Printing Office; Washington, D. C. WASHINGTON GOVERNMENT PRINTING OFFICE 1920 Digitized by the Internet Archive in 2007 with funding from IVIicrosoft Corporation http://www.archive.org/details/economicpositionOOsmitrich DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE PHILIP B. KENNEDY, Director MISCELLANEOUS SERIES— No. 88 ECONOMIC STUDIES OF COUNTRIES DURING THE WAR COMPILED IN THE BUREAU OF RESEARCH AND STATISTICS WAR TRADE BOARD THE ECONOMIC POSITION OF ARGENTINA DURING THE WAR BY L. BREWSTER SMITH and HARRY T. COLLINGS Research Assistants ELIZABETH MURPHEY, Junior Research Assistant PRICE, 15 CENTS Sold by the Superintendent of Documents, Government Printing Office, Washington, D. C. WASHINGTON GOVERNMENT PRINTING OFFICE 1920 7^^ CONTENTS Page. Letter of submittal 5 Note on trade statistics 6 I. Introduction 7 Purpose of the report 7 Area, climate, and topography 7 Water power 9 Population 9 Immigration and emigration 10 The labor situation 10 — High cost of living , 11 II. Agricultural products ^ 13 Importance of agriculture 13 Chief products 14 Minor crops 28 Trade in agricultural products 32 III. Animals and animal products 34 Importance of live-stock industries 34 Argentina's position in world meat trade 34 Live-stock raising 35 Foreign trade in animal products 37 rV. Forest products 48 Argentina an importer of lumber 48 Location of timber 48 Imports of lumber 50 Construction 53 Quebracho 53 Quebracho extract 54 Firewood • 56 ^ Conclusion 56 V. Minerals. . . : . 57 Development of mining industry 57 Petroleum 57 Coal 60 Wolfram 62 Mica 62 Other minerals 63 Trade in minerals 64 VI. Manufacturing industries 67 Development before the war 67 Manufacturing industries during the war 68 VII. Transportation 72 General situation 72 Rivers and harbors 72 Railways 73 Automobiles 80 Shipping engaged in foreign trade 81 Possibilities of shipbuilding or purchase of ships 83 719701 4 CONTENTS. Page. VIII. Argentine foreign trade » „ „ . » 84 Importance of the foreign trade „ . » 84 ,^.. Changes in trade during the war 85 Effect of the war on value and quantity of trade 85 Nature of Argentine trade 87 General trend of exports 87 General trend of imports 91 Direction of trade 96 Trade with certain countries 102 IX. Finance 112 Present favorable conditions 112 ^ The monetary system 112 The banking situation 115 Institutions closely connected with commercial banking 118 —The national debt .' 121 Sources of revenue 123 "—Foreign investments 125 The balance of trade 128 Probable return of exchange to normal 131 Bibliography 1 32 LETTER OF SUBMITTAL. War Trade Board, Washington, June 30, 1919. Sir: There is submitted herewith a report on ''The Economic Position of Argentina During the War." This report is one of a series of economic studies of countries during the war, prepared in connec- tion with the general economic work carried on in the Bureau of Research and Statistics of the War Trade Board and published by the Department of Commerce for general distribution. The report is the work of Mr. L. Brewster Smith and Mr. Harry T. Collings, assisted by Miss Elizabeth Murphey, with certain revi- sions and additions made by Miss Katherine Hodge. In the revision of the report valuable suggestions were made by Mr. Julius Klein, of the Bureau of Foreign and Domestic Commerce, and by Mr. C. E. Maguire, of the United States Treasury. The report should be of especial interest at this time, since it out- lines the changes in Argentina's industries, trade, and finance during the war and in many cases indicates the probable future trend of the economic conditions of that country. Respectfully submitted. Karl DeLaittre, Director, Bureau of Research and Statistics. Hon. Vance McCormick, Chairman, War Trade Board. 5 NOTE ON TRADE STATISTICS. It is important to note the methods used in Argentina in the compilation of figures of exports and imports and to state clearly at the outset how these figures have been used in this study. Exports. — From 1864, the year when Argentina began compiling statistics of export and import trade, until 1891 the figures used for values of exports were those of the official schedules of prices, which were arbitrary valuations of articles per unit of quantity and which were not changed with changing prices from year to year. After 1892 this was modified for those articles systematically quoted on the market on which there was no export tax. In 1906, when export taxes were abolished, market prices were used for all commodities for which quotations were published, and official schedules used for articles not regularly quoted. It was decided in 1916 to reorganize the methods used in determining values for exports. The method which has been employed since January I, 1917, has used average quotations of Argentine market prices at the port of embarkation. These values are based upon publications of authorized commercial institutions and, in the case of articles not quoted by these bodies, upon systematic investigations by which a sufficient number of quotations are obtained from sources of exports to give satis- factory statistical averages. The necessity became evident also of making available figures for preceding years which would give figures more correct than those published in the official yearbooks. A study was made and index numbers determined. In the official statistical publi- cation for the year 1917 tables are included, giving corrected figures for a large number of commodities for the years 1910 to 1916. These corrected values, referred to in official Argentine statistics as ''real values," have been used throughout this report except where it is expressly stated that "nominal values" are used. Imports. — Import figures prior to 1917 were based upon a tariff valuation per unit of quantity. These had been only slightly altered since 1906, and values of imports in Argentine statistics were consequently very much too low. After 1917, also, import figures are given in detail in nominal or tariff values only. Investigations of prices of goods imported at Buenos Aires are carried on, however, in a large number of commodities (about 67 per cent of the value of all imports) and index numbers obtained for these articles. An index number is also determined for the total imports. "Real values" are given for 168 articles and for totals based on the index numbers obtained . Import values include maritime charges, being c . i. f . at port of importation. As in the case of exports, corrected figures, or "real values" for imports from 1910 to 1917 are listed in "El Comercio Exterior Argentine en 1916 y 1917." Figures for value of imports prior to 1910 differ only slightly from "tariff" or "nominal values." For all figures since 1910 "real values " are used in this study, except where it is stated that "nominal values" are used. Full explanation of the methods employed in obtaining these values is given in "El Comercio Exterior Argentine en 1916 y 1917, Boletin No. 176," in the first section of the volume headed "Intercambio Econ6mico de la Repdblica 1910-1917." This section is also published separately under the same title, being the report of A. E' Bunge, Director General de Estadlstica de la Naci6n. THE ECONOMIC POSITION OF ARGENTINA DURING THE WAR. I. INTRODUCTION. PURPOSE OF THE REPORT. It is the purpose of this report to summarize the economic con- ditions in Argentina and to consider in some detail the changes in production and consumption and -in industries, trade, and shipping during the years 1913 to 1918. It is impossible, however, to deal extensively with some phases of Argentina's economic life in this study, owing to the lack of data available at the present time. The labor situation and industrial development are, therefore, dealt with briefly. Argentina, though neutral, has been profoundly affected by the war. It is a country dependent upon foreign countries, not only as markets for the disposal of the yearly surplus of agricultural and pastoral products, but also as the sources of the major portion of the manufactured goods needed to sustain economic life. Argentina has been thrown upon itself during the last four years to a con- siderable extent. The withdrawal of foreign capital and the isolation due to lack of shipping facilities, especially durmg the last two years, have forced upon Argentina the necessity of doing without large quantities of essential commodities and has tended to stimulate a degree of national self-sufficiency, which will doubtless have a lasting effect upon the national life, though the limitation of imports forced by the war has also hampered industrial development, because many 01 the tools of industry must also be imported from overseas, AREA, CLIMATE, AND TOPOGRAPHY. Argentina stretches from tropical lands (22° south latitude) to the cold latitudes (55° 30' south latitude), and it has a coast line 1, 565 miles in length. If the area of 1,153,119 square miles could be remolded, it would more than cover that portion of the United States which lies east of the Mississippi River. Argentina is a large country with great variations in climate, but with a remarkably uniform topography, except in the extreme western part, where the crest ot the Andes forms the boundary. The almost universal levelness has been instrumental in developing both agricultural industries and railway communications. The lack of ruggedness, possibly, has made inaccessible any potential supplies of coal and iron. The drawbacks to industrial development, occasioned by the lack of coal and iron resources, may be lessened if the rivers of the moist northern Prov- inces can be used for water power and for the transportation of forest products. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Capitah -k Othar im/>ortarit cities yYiamc* a/ "TirriTbries ara UTtdBfli nioC. A/ames of Provmce^ ate. not unc,'srlme.cL . Tfailroucl^ II. ~ m "^^^C»f»e~TTorrv Map 1.— Southern South America The climate greatly influences the economic position of the country. Not only does it vary from the semitropical cotton and sugar grow- ing region of the north to the cold wool-producing lands of Patagonia, but there is also a great variation from east to west. In a journey westward from Buenos Aires to Mendoza, at the foot of the Andes, the traveler experiences climatic changes similar to those found in a trip in the United States from the cereal-growing region about ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Kansas City to the irrigated lands about Denver, finds less and less rainfall as he moves westward. In each case he WATER POWER. Power, generated on a commercial scale, is needed for industrial plants, and especially for the tramways and lighting of the large cities. The largest cities of Argentina are not located in the region of water power, so the big foreign-managed utilities companies employ elec- tricity, using imported coal as the generating force. As in the case of the railroads, these concerns have suffered during the war and have turned to the use of wood and native petroleum with unsatisfactory results. Water power is greatly needed by the Republic. Attempts to utilize this force have been made in the nortnern Provinces. POPULATION. Argentina is a new country, with large area, rich resources, and a comparatively small population. ^ In 1895 the population was 3,954,911, and in 1914, 7,885,237, showing a doubling of the number in 20 years. In 1914, however, Argentina had only 6.83 people to the square mile, as compared with 28.95 in the United States, 379.53 in the United Kingdom, and 673.35 in Belgium. As a result, the industries of Argentina tend to be those making extensive use^ of the land and small use of labor. The country is not an industrial but an agricultural country, as is usually the case in newly populated lands. The following table shows the population of the various Provinces and their capitals: Area and Population OP Provinces, Territories, and Capitals. 1 Federal districts, Provinces, and Territories. Area (square miles). Popula- tion, census 1895. Popula- tion, census, 1914. Popula- tion per square mile, 1914. Capital. Esti- mated 1918. Federal district: 72 663,854 1,575,814 783 2,066,165 899,640 735, 472 425,373 347,055 116,266 261,678 332,933 277, 535 119,252 79,754 100,391 140,927 76,631 53,563 19, 281 46,274 101,338 28,866 42,242 23,065 9,948 2,504 2,487 21,886.30 Buenos Aires 1,750,000 Provinces: n7,777 50,713 66,912 29,241 33,535 29,035 55,385 10,422 56,502 37,865 37,839 36,800 48,302 14,802 11,511 41,402 52, 741 56,320 40,530 79,805 93,427 109, 142 8,299 34,740 921, 168 397, 188 351,223 292, 019 239,618 81,450 161,502 215, 712 116, 136 84,251 69,502 90,161 118,015 49,713 33,163 4,829 10,422 25,914 14,517 9,241 3,748 1,058 477 17.54 17.73 10.91 14.54 10.34 4.04 4.72 31.94 4.91 3.14 2.10 2.72 2.91 5.17 4.65 .46 .87 1.79 .71 .52 .24 .09 .30 .07 La Plata 100,000 Santa Fe Santa Fe 48,000 Cordoba 100,000 Entre Rios Parana 77,000 25,000 Corrientes Corrientes San Luis San Luis 11,000 Santiago del Estero Tucuman Santiago del Estero.... Tucuman 12,000 75,000 64,000 15,000 San Juan San Juan LaRioja 8,000 Catamarca Catamarca 10,000 Salta Salta 20,000 Jujuy . . Juiuv 6,000 Territories: Mislones Posadas 10,000 Formosa Formosa 3,000 Chaco Resistencia 3,000 Pampa Central Santa Rosa de Toay... Neuquen 2,000 Neuquen 3,000 Rio Negro Viedma . . 2,000 Chubut 2,000 Santa Cruz Gallegos 2,000 Tierra del Fuego Los Andes 1,000 San Antonio de los Cobras. 1,000 Total 1,153,119 3,954,911 27,885,237 6.83 2,350,000 1 Source: Statesman's Year Book, 1918, p. 639. « In 1917 the estimated population was 8,574,000 (4,287,023 males and 4,286,977 females). f these, 2,357,952 (1,473,809 males and 884,143 females) were uimaturalized foreigners. 10 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. IMMIGRATION AND EMIGRATION. Since most of the country lies within the seasonal belt of the Tem- perate Zone, European labor, especially from the Mediterranean countries, is attracted constantly. In 1917 the estimated popula- lation was 8,574,000. There were 4,287,023 males, of whom 1,473,809 were foreigners; in other words, 34. 3 8 per cent, or approximately one-third, of the labor was of foreign birth. The following table shows the immigration and emigration from 1910 to 1917: Immigration and Emigration. Years. Number of immigrants. Number of emigrants. Excess of immigration (+), excess of emigration 1910 ..- 310,224 247,803 348,570 327,446 135, 787 54, 144 40,310 23,530 116, 167 142,344 142,460 181,056 196,890 118,636 80,867 56,268 +194,057 +105,459 +206,110 +146,390 1911 1912 1913 1914 — 61,103 1915 - 64,492 — 40,557 1916 1917 — 32,738 Gra fih. No. 1 . Argentina — [mmigration and EMiqRATiON — 19101917 . (000) 37? 300 zzs I 50 1910 1911 I9it. Xurnber of lmmi ^ ra.nts . -*• — t — + — Balance, iix - favor . 1915 191S 1916 1917 — /Tumb&r oj Emi ^ rAnts . THE LABOR SITUATION. The chief reason for the large emigration, as well as immigration, is the abnormally large demand for labor during the harvesting season. Prior to the war this was largely supplied by laborers from southern Europe, who found ^it profitable to emigrate to Argentina for this short period, returning to their own country when the harvest was over. The seasonal nature of the greater part of Argentina's labor re- sults in a serious problem, which has been the concern of the Gov- ernment for many years. Although the country is one where labor is, on the whole, scarce, owing to the irregularity of work and the ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 11 lack of organization to take care of the condition, there is a great deal of unemployment at certain times of the year, which always brings serious social and economic conditions. Skilled labor for mdustrial work is not abundant, though at times this type of labor is often found unemployed. The war nas affected the labor situation in Argentina in sev- eral ways. In the first place, the supply of foreign labor has de- creased considerably, as can be seen by the preceding table and the graph. The causes of this decline are evident. The economic and military demands upon their citizens by the European Governments have held thesp people at home and nave called home many who might have remained in Argentina. Internal conditions in m-gentina resulting from the far-reaching effects of the European war can not be dealt with in full in this study. It is interesting to note, however, the changes in the labor situation and the problems which became acute. In 1914 the first shock of the war caused many industries to curtail their output. Industrial laborers were thrown out of work. Lock- outs in the larger cities were frequent, and the resulting social condi- tions were of great concern to the Government. Farm labor was also more abundant than the demand in that year. In 1915, how- ever, the war had begun to stimulate both indus^ and agriculture, and there was fear of a shortage of farm labor. The same condition was feared in 1916, but a slightly poorer crop than was expected resulted again in a considerable amount of unemployment. In 1917 the failure of crops accentuated this condition. In 1918 industrial labor was in more demand than ever, and strikes increased, owing to the greatly increased cost of living, for which laborers demanded corresponding increases in wages, and to the fact that the demand for labor was in excess of the supply, and the laborer was so placed in a more advantageous position tor bargaining. The end of tne war found Argentina in a general state of unrest, similar to the condition sweeping the whole world. The causes were similar to those in other countries. The influence of radical move- ments in other parts of the world naturally played a part in the development of this condition. The strikes which held up traflic in the harbors for several months were widely known throughout the world, because they affected foreign shipping and trade, but they were merely a part of a series of strikes of similar magnitude and importance. A detailed study of the labor situation would be nec- essary, however, to give an adequate statement of the situation dming the war. The scope of the present study allows only the foregoing statement of the fact that great labor unrest exists, and that its causes are similar to those in other countries. The holding of large tracts of land by a few and the development of trusts are two of the causes. One of the chief causes, however, is the increased cost of living, fflGH COST OF LIVING. The cost of living had been gradually increasing in Argentina, but with the opening of the war it rose by lea^s and bounds. Increased wages allayed the discontent at first, but it was impossible to keep pace with the growing prices. The result is seen in the strike troubles of the past year, culminating in the harbor strikes. The Direc- 12 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. tor General of Statistics has recently stated that the cost of living increased 60 per cent during the war. The economic reason under- lying the transformation is readily appreciated in the case of Argen- tina. It is a country that produces a few staples in abundance; its luxuries and many of the necessities come from abroad. The fol- lowing chosen list of wholesale prices shows the increase (in United States currency) on commodities imported and on domestic goods which are in demand abroad. Prices of Certain Commodities. Articles. per pound. Sugar do... Olive oil per quart . Kerosene oil per gallon. Fat per pound. Flour do... ....do... .per doz. 1914 JO. 37 .07 .20 .78 .11 .03 1917 $1.39 .10 ,96 1918 $1.47 .16 .70 1.07 .17 .05 .11 .21 The last four items show the prices obtained for the native products. In spite of the price of meat, which seems abnormally low, the con- sumption of meat per capita in Argentina has decreased, because the great mass can not afford such prices. The scarcity of fuel has added to the general unrest. The Government has recognized the acute conditions, and Congress recently discussed the following suggestions for relief: (1) To establish an open market in Buenos Aires. (2) To have the ovens in the Federal penitentiary work to full capacity and sell the surplus at cost price. (3) To revoke the tax on producers of food supplies. (4) To build houses for workingmen. (5) To establish a permanent tribunal to arbitrate in strikes. The permanent cure, however, depends upon the ability of the Republic to once more import cheap foreign goods and to vary its products. Specialization, resulting in large profits, has made money lor the few and high prices for the masses. n. AGRICULTURAL PRODUCTS. IMPORTANCE OF AGRICULTURE. Argentina is, and will for long remain, an agricultural country, whose principal resources are cereals and animal products. The Repubhc owes its phenomenal progress and present position among nations largely to pastoral ratner than agncultural products, but during recent years more of the fertile soil has been brought under cultivation, and the grain fields are increasing in importance. Dur- ing the war, however, animal products, especially meats, were in such great demand that export figiires for these products show a greater increase than those for agricultural products. Ghaph No. 2. fluLiMS OF GoLp Pesos Soo Fluctu/^tions mToJhi Exports fROn ARfteNTlNA-i;;ENTYYEARS i8*?8 —n n 400 3oo 2! 00 iOO 181^ lloo Koi \«io% 1961 no5 no6 1107 1«101 mo nil niT. IIH niS (116 ni7 1^8 no3 W08 I«?I3 The foreign trade of Argentina shows great variations from year to year, because the exports depend so largely upon the retimis from the agricultural industries. Without a prosperous year for cereal production and stock raising, the Republic has little to export; and when its exports are small imports tend to be small. The harvests, frequently affected by drougnts and locust plagues, produce variations in foreign trade, sometimes amounting to as much as $40,000,000 to $60,000,000 above or below the normal. Graph 13 14 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. No. 2 shows the great importance of amcultural and animal products in Argentina's export trade during tne 20 years, 1898-1917. The influence of the good and the poor crops on total exports is clearly- indicated by the two curves representmg total exports and exports of agricultural products, which show almost parallel fluctuations. Animal products, on the other hand, show only slight fluctuations in the general tendency to increase, and, though constituting a large percentage of the export trade, have not counterbalanced the fluctua- tions in 9ie varying agricultural exports. Argentina has an area of about 728,680,000 acres, of which about 253,195,000 acres may be used for agriculture or cattle raising, the remainder being mountain, lake, nver, or arid regions. About 12,000,000 acres of the cultivable area require irrigatioi;!. As only a smaU portion of the cultivable land is under production, other factors must be acting to prevent expansion. The population of Argentina is small, and only a small percentage of its agricultural products is used for home consumption; the greater part goes into the world markets. Even these in normal times are limited in their power to consume; and for this reason Argentina must restrict production to world market needs. At the end of -the 1918 har- vest season such a surplus of com existed that it was used as fuel in certain regions. On the other hand, even if extreme expansion of production were advisable, the Republic would be unable to accom- plish this because of lack of man power. During the war, emigration surpassed immigration and labor has become scarcer. The unusual expense of importing agricultural machinery during the war has also been a deterrmg factor. CfflEF PRODUCTS. The following table shows the chief agricultural products of Argentina. The Hst may be grouped as follows: (1) Products of primary importance, sucn as wheat, maize, oats, and linseed; (2) commodities of lesser significance, such as rye, barley, rice, sugar, tobacco, and cotton. Agricultural Acreage and Production.* Products. Chief products: Wheat.: Corn Linseed Oats Minor products: Rye Barley Rice Tobacco Cotton Sugar cane. - Acreage. 1912-13 1913-14 1914-15 1915-16 1916-17 17,088,572 9,460,100 4,281,325 2,945,228 98,553 266,637 8,331 23,850 6,916 232,736 16,236,644 10,255,440 4,394,995 3,085,771 227,981 418, 295 9,707 36,729 6,476 263,549 15,464,670 10,381,410 4,25.5,810 2,867,670 228,722 396,435 8,188 37,939 8,151 269. 724 16,413,150 9,924,090 3,998,930 2,563,860 211,432 431,015 17,401 18,846 9,114 317,395 ,082,170 , 965, 038 ,206,060 ,524,340 179,717 387,914 (2) 1 Source: Annuaire International de Statistique Agricole, Institut International d' Agriculture, Rome, 1915-16. 2 NotUsted. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 15 xxGRiGULruBAL ACREAGE AND PRODUCTION — Continued. Products. Chief products: Wheat Com Linseed Oats Minor products: Rye Barley Rice Tobacco Cotton Sugar cane Raw cane sugar Production (metric tons). 1912-13 1913-14 1914-15 1915-16 1916-17 5,100,000 4,995,000 1,130,000 1,100,000 35,900 97,100 0) 8,000 840 2,121,660 147.249 3,100,000 6,684,000 995,000 740,000 85,000 175,000 10,129 3,131,018 276,140 4,585,000 8,260,000 1,144,090 717,000 46,000 112,000 10,752 3,653,331 335,956 4,600,000 4,093,000 895, 100 1,095,528 51,000 140,000 5,341 2,416,164 149,299 1,911,200 1,494,600 101,500 461,300 21,800 47,130 (2) (2) 0) Estimated. 2 Not listed. It is the four chief products which are important in export trade and which influence the total export trade from year to year, causing it to fluctuate, as ah'eady indicated in graph No. 2. Another evidence of the importance of this group is the large area devoted to these crops in the cultivated regions of the garden Prov- inces, viz, Buenos Aires, Cordoba, Santa Fe, Pampa Central, and Entre Rios. The concentration of the cultivation to these Provinces is explained by the following conditions: Good soil, suitable climate, greater population, and better transportation facilities. Even in this fertile section the land devoted to tillage is small and the possi- bilities for increased acreage are very great. Distribution of the Principal Crops: Acreage Estimates for 1918-19.* Provinces. Wheat. Linseed. Oats. Acres. 5,745,176 4,855,601 2,389,499 2,379,615 1, in, 970 494,209 Acres. 614,425 753,668 1,304,711 66,718 642,471 37,066 Acres. 2,214,055 135,907 74, 131 222,394 247,104 86,487 Cordoba . . .. Santa Fe Pampa Central ..... .. Entre Rios Other Pro\inces Total 1918-19 16,976,070 17,864,412 16,088,967 16,420,083 3,419,059 3,233,606 3,207,415 4,000,616 2,980,078 3,200,002 2,525,406 2,564,939 Total 1917-18 Total 1916-17 Total 1915-16 1 Source: Report from Consul General Robertson, Feb. 21, 1918. Note.— Com statistics not given. Yield op the Principal Crops , 1917-18. 1 Provinces. Wheat. Linseed. Oats. Corn. Buenos Aires Metric tons. 1,200,000 1,596,000 1,045,000 535,000 405,000 250,000 Metric tons. 131,200 204,000 321,000 23,800 130,000 20,000 Metric tons. 676,000 60,000 75,000 100,000 80,000 40,000 Metric tons. 2,140,000 280,000 1,700,000 19,000 56,000 140,000 Cordoba Santa Fe Pampa Central Entre Rios Other Provinces Total 5,031,000 830,000 1,021,000 4,335,000 1 Source: Report from Consul General Robertson, Apr. 16, 1918. 124236°— 20 2 16 ECONOMIC POSITIOIS" OF ARGENTINA DURING THE WAR. Map 2.— Agricultural acreage. WHEAT. The wheat crop is important not only to Argentina, but it plays a large part in supplying those countries in the world which do not produce sufficient supplies for their own consumption. The following table, showing the chief producmg coimtries, gives Argentina's position as a wheat producer: ECONOMIC POSITION OF ARGENTINA DURING THE WAR. World Production op Wheat: Average, 1911-13.^ 17 Regions. Acreage, Bushels. Percent. World 266,920,000 3,796,908,000 100 United States 48,514,000 62,151,000 30,410,000 16,347,000 12,393,000 11,038,000 11,778,000 16,530,000 57,759,000 704,995,000 636,525,000 369,612,000 324,137,000 247,141,000 228,933,000 190,840,000 166,521,000 908,204,000 19 17 India . 10 9 6 Canada Italy 6 5 Arpfpntina . . . .............. 4 24 1 Source: Reference Handbook of Food Statistics in Relation to the "War, United States Food Adminis- tration, 1918, p.l2. Not until we study the world export figures, however, do we see Argentina's position in the world wheat trade. World Exports of Wheat and Wheat 'Flour: Average Yearly Exports 1911-1913.^ Regions. Net exports (bushels). Percent- age. World 636,357,000 100 Russia 122,883,000 113,767,000 110,258,000 100,844,000 58,963,000 53,705,000 52,154,000 10,476,000 13^307^000 • 19 United States 18 Canada . . . . - - • --- - - 17 16 British India 9 9 Australia. 8 2 2 1 Source: Reference Handbook of Food Statistics in Relation to the War, United States Food Adminis- tration, 1918. Although in the class with Italy as a relatively small producer (4.42 per cent), yet, due to the low domestic consumption, Argentina does one-sixth of the world ^s wheat exporting. Exports in normal years go to northwestern Europe and constitute one of the large factors in the payment of interest on British investments in Argentina. A lesser quantity is sold to the South American countries, Brazil in particular. The conditions of climate and soil under which wheat is raised are similar to those in the United States. Winter wheat is sown in April and spring wheat in August. December is the greatest harvesting month. The tables and map on pages 15 and 16 show localization of wheat in the Provinces of Buenos Aires, Cordoba, Santa Fe, Entre Rios, and the Territory of Pampa Central. WHEAT SITUATION DURING THE WAR. The wheat situation during the years 1914-1918 was influenced by the conditions, resulting from the war, of demand for wheat and flour and of the shipping situation. The following table shows first the acre- ^age planted during the war years and indicates in a measure the ex- pectations of wheat growers of marketing their crops. Figures for pro- 18 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. duction and yield per acre show the success of the crop, while exports indicate the demand for Argentina's wheat as affected by the cutting off of the German market, by increased demands of allied and neutral nations in Europe, and by decreased shipping facilities. Argentine Wheat Statistics.^ Years. Acreage. Production (bushels). Yield per acre. Net exports of wheat and wheat flour in terms of bushels of wheat. Apparent consumption (bushels). 1911-13, average 16,530,000 16,243,000 15,471,000 16,420,000 16,089,000 3 17,574,000 166,521,000 113,904,000 169,166,000 172,620,000 70,224,000 ••'184,856,000 10 7 11 11 4 3 11 100,844,000 39,235,000 98,045,000 91,523,000 2 39,658,092 * 78, 294, 000 65,677,000 74 669 000 1914 1915 7l'l2l'000 1916. 81 097 000 1917 30,565,908 1918 1 Source: Reference Handbook of Food Statistics in Relation to the War, United States Food Adminis- tration, 1918. 2 Estimated (not found in source) from official export figures. 3 Preliminary estimate. * For nine months, from oflBcial figures. These figures, together with the following table of prices compiled by the Argentine Government,^ furnish the basic facts from which to study the effects of the war on the Argentine wheat situation. Prices or Wheat in Argentina. Years. Gold pesos per ton. United States dollars. 1910 38.33 35.29 37.21 36.49 37.90 52.81 42.10 64.79 36.99 1911 34.05 1912 35.90 1913 35.21 1914 36.51 1915 50.96 1916 40.63 1917 62.52 These are average f. o. b. prices at Argentine ports for the years given and indicate the general price at which the crop was exported. Although the yield per acre in 1914 was not as good as the average, and the resulting production lower, the greatly reduced exports in that year were due not to the of lack of wheat to export, but to the first shock of the war and the tendency of the European Allies to purchase a larger share of their imports from nearer markets. The effect of this situation is reflected in the slightly decreased acreage in 1915. The good crop with the large production in 1915, however, was in demand, and exports returned almost to their pre-war level, with the price also considerably higher than in the preceding year. As would be expected, growers were encouraged to plant a larger acreage in 1916, and the production for that year was higher than in 1915. The effect of submarine warfare and the scarcity of shipping began to show themselves in that year, however, and exports fell slightly, 1 El Comercio Exterior Argentino, Boletln 176, p. 153. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 19 causing the price to go down again almost to the 1914 level. The natural effect of the low price is reflected in the slightly decreased acreage planted in 1917. The wheat situation in Argentina in 1917 was entirely different from all expectations. Bad weather conditions damaged the crops, causing the average yield per acre to drop from 1 1 bushels, as in the two preceding years, to 4 bushels, and decreasing production from about 172,620,000 bushels, which might be expected from the acre- age sown, to only 70,224,000, or less tnan one-half the expected crop. In the meantime, although the problem of supplying ships to bring products from long distances was becoming more and more serious for the allied countries, Argentine wheat was in demand. Prices rose to a high level. The Argentine Government, fearing a shortage of wheat serious enough to endanger the necessary consumption of the country, put an embargo on the exportation oi wheat in March, 1917. Production figures indicate the prudence of this action. It resulted, however, in a surplus of 200,000 to 300,000 tons, which was carried over to the next season's supply, owing to the high price of wheat in Argentina and the consequent decreased consumption. Exports in 1917 amounted to only 39,658,092 bushels. FOOD AGREEMENTS WITH THE ALLIES. At the end of 1917 the Allied Governments began negotiations for the purchase of Argentine cereals. In January, 1918, an agree- ment was signed by which 2,500,000 tons of cereals were to be pur- chased, including wheat, maize, linseed, and oats. The following paragraphs sum up the terms of the agreement made in January, 1918, between Argentina on the one hand and Great Britain and France on the other: The British and French Governments shall buy in the Argentine Republic the sur- plus of wheat and other cereals to an approximate amount of two million five hundred thousand (2,500,000) tons, undertaking to export the same before November 1, 1918. The British and French Governments will pay a minimum price of twelve dollars and fifty cents paper currency for every hundred (100) kilos of wheat, seven dollars paper currency for every hundred kilos of oats, and fifteen dollars paper currency for every hundred kilos of linseed, all of good quality, f . o. b. The Argentine Government shall open a credit in favor of the British Government up to the smn of one hundred million dollars Argentine gold or its equivalent in paper currency, and a similar credit for a similar amount to the French Government. The amounts drawn under these credits shall carry interest at 5 per cent per annum. The credits opened shall be utilized for the purchase of Argentine cereals, and may also be used for the acquisition of other produce of the country. The British and French Governments shall deposit in the respective Argentine Legations the acknowledgments of the amounts drawn under the above-mentioned credits. The acreage planted in wheat in 1918 was larger than in any previous year, and the good crop resulted in a production of 184,856,- 000 bushels. The greatly increased acreage was the natural reaction from the Argentine wheat situation of 1917, but it proved to be greater than was warranted by the world situation, and a large surplus remained imexported after the Allies had supplied ships to carry the amount which they required and which they had agreed to pur- chase. Although exports mcreased greatly in 1918, as is shown by the figures for the first nine months (the latest available), in the fall of 1918 the situation was serious. The following statement, sub- 20 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. mitted to the Minister of Agriculture by Dr. Lahitte, Director of Rural Economy and Statistics, snows the situation on September 1, 1918: ^ Tons. Harvest 5, 970, 000 Requirements for consumption and seed 1, 800, 000 Balance 4, 170, 000 Exported to July 30 2, 234, 000 Surplus available for export H, 936. 000 The statement goes on to say that by September only 54 per cent of the current crop had been exported (as against 90 per cent normally exported by that time), and since the cereals which the Allied Gov- ernments had agreed to purchase had already been shipped and were included in the amount, shipping space would probably nob be provided for much more. The usual amount had already been shipped to Brazil. An amount of 500,000 tons allotted to Spain and Switz- erland had not been exported, but even if shipping space were pro- vided for this amount there would remain a large surplus. The problem of a large surplus was acute, because of the lack of facilities for storing tne grain. It is the usual practice for the farmers to haul the grain to the railroads, where it remains under tarpaulin until it can be moved to the larger centers, such as Buenos Aires and Rosario, where a few grain elevators are to be found. Argentina's production of wheat is capable of great expansion. Her ability to market her production, however, is limited by the world supply and demand. The following table of Argentina's export trade in wheat during the war shows increased exports to the European AUies and neutrals in 1915 and 1916, and the decreases in 1917. The large exports to Germany and Belgium in 1912 and 1913 disappeared by 1915. The increased exports in the first nine months of 1918 to the United Kingdom are striking. Export of Wheat. ^ Countries. 1912 1913 1914 1915 1916 1917 1918 (9 months) Belgium Metric tons 327,932 346, 157 43,481 9,485 550,690 161,607 145,715 601 Metric tons 212,602 411,342 189,151 Metric tons 90, 188 265,743 20,275 781 200,069 28,016 11,931 Metric tons Metric tons Metric tons Metric tens Brazil France 298,365 174,714 28,694 384,931 424,554 444,216 11,116 201,351 171,620 130,290 237,535 163,800 28,089 1,353,855 United States United Kingdom Germany 571,987 85,740 253,311 145, 255 Italv 367,486 7,072 92,622 23,977 5,105 27, 155 13,090 81,423 1,006,880 202,094 4; 456 66,966 61,620 3,862 South Africa Australia. . Spain 1,188 6.219 173,926 15,754 190, 620 655, 781 19,606 1,6S2 66,179 12, 413 145, 128 60,740 68,729 653,891 12,065 16,217 159,518 Denmark . Netherlands 237,477 6,520 32, 280 729, 130 52, 594 Sweden 30,906 166, 788 195, 721 17,313 68,792 677. 235 other countries 23,830 285,466 To"orders" Total 2,629,056 2, 812, 149 980, 525 2,511,514 2,294,867 935, 828 2,771,619 1 Source: Review of the River Plate, September 13, 1918, Vol. L, No. 139, p. b ''65. 2 Or 46 per cent of the exportable surplus of the current year's wheat harvest. 'Source: El Comercio Exterior Argentino, 1912-1918. Note.— Total exports for 1918, 3, 927,719 metric tons. ECONOMIC POSITION OF ARGENTINA DtTKING THE WAE. 21 FLOUR MILLING. Although a large percentage of Argentina's wheat is exported unmilled, flour milling is second only to meat refrigerating among the manufacturing industries. Thirty years ago the Kepubiic could not provide sufficient flour for its own consumption, being obliged to import this article from abroad. In 1901, when the port of Buenos Aires was being built, it was decided to use the waste lands of the port, reclaimed from the River Plate, to establish flour-mill and grain- elevator industries. As a residt there are many mills at Buenos Aires andRosario. In 1901 some Argentine, Belgian, and British capitalists established a group of mills in Argentina, and now have four mills in Buenos Aires and two in Avellaneda; they are running at full capacity mills in Cordoba, San Francisco (Province of Cordoba), Nogoya (Province of Entre Rios), Tres Arroyos, Tandil, and Coronel Pringles (Province of Buenos Aires), these being the first of a series of mills to be built in the principal wheat zones of the Republic. The principal brand of flour milled by this company is the ^'Favorita,'' which has an estab- lished reputation. They have built the elevators called Rio de la Plata, where they can store 100,000 tons of cereals. The company has at times employed 1,500 laborers, pajing $135,100 monthly, without taking into consideration the salaries of a great number of other ernployees. The millers had to struggle to attain the increased development of their industry, owing to the fact that the Government of Brazil, wish- ing to favor its own national flour-milling industry, created differen- tial customs tariffs for wheat and flour and accorded privileges for the importation of North American flour to the prejudice of Argentine nour. The following table shows the details of Argentina's export trade in wheat flour since 1913: Exports of Flour.^ Countries. 1912 1913 1914 1915 1916 1917 9 months, 1918. Belgium Metric tons. Metric tons. 193 99,869 274 2,096 9,286 267 810 11,105 748 Metric tons. 254 58,202 710 200 Metric tons. Metric tons. Metric tons. Metric tons. Brazil 111,278 1,274 833 77 4,452 165 1,171 11,359 971 55,907 12,905 68,375 67,972 77, 196 20,256 79,571 510 France Germany Italy 5,112 16,264 2 United Kingdom 1,495 335 232 5,359 538 3,244 507 7 United States 1 461 Netherlands 10,413 15,159 289 7,819 29,920 308 other countries 13,948 751 12,844 1,662 To "orders" Total 131,580 124,649 67,325 116,049 144,290 112,465 119,598 1 Source: El Comercio Exterior Argentine, 1912-1918. Note.— Total exports for 1918 were 126,990 tons. 22 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 3 m CO <© 0^ -5rHi-H * • • 'c^'rHrH * 'cO C^ OS 05 t~-00 Q kO 05 CO ■«»< cs o -X't^Ol'tiOCCIMOO coo'o>-i»C'«»'e^co ^^^^S^^ S£5^8^SS§5^ osooirt—icq o ■«f 1-- ■^ i-H ei» o r~oo5 ot^c^< t-iOl OJNOIQ t^ o o t^ «o to OOJt^tOOlOOTjtoS t-«050t^«0«5t^50 O 1-1 IC t>. 05 c< r>. to 1-H •^ U5 00OCO50CC ^^OOOiOt-iooO ec CO CO ec »-H c«i cc 05 1--. »rt o> ® eo ) t^ p^ CO Tt; CO to O ■* to f^ ■ »OOOtOO( g^-co-^- oooc5eo II w -^ to »c -^ >c eoio a>Seo org'io'"crjH' coccSwrH C0IM»H00C^O5lOr^ o c5 CO CO lo 00 e<« N nil C<>«OO'^pp-^-*OC0>Cr-.O'-^ O*t--t0t^^c0t0«-*C>505>0rt-^ •-i050t-TfiOt^OOOieOOC005t^ to»o eoco »-• II OiO-^iO-HtoOJCOi-HC^r^OiC^OC^ 2[^!55i5«'^S8"SS85S; '9iDCtIOH - - - - COHSDMPTIOH t 4 4 4 HBT IlIPOBZS X z z z SBI SSP0BI8 1»17 Sugar plantations suffered from the frost dmng the cold winter of 1917 and the subsequent great heat. Tucuman, from which a sugar production of 140,000 to 150,000 tons was expected, supplied only 80,000 to 90,000 tons, or less than one-third of the crop of 1915. As a result of the poor sugar harvest there has been a great rise in prices. In the wholesale trade the price of sugar has been $3.14, S3.23, and 30 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. $3.31 per 10 kilos, showing an upward tendency. The production of the 1918 crop, however, was good. The cutting of the cane began in May, and it is estimated that the harvest was from 170,000 to 190,000 tons. The sugar crop, being one which could be entirely consumed in the country, remained practically undisturbed by the shipping situation. The war, however, affected the industry in the matter of labor, which cost considerably more and which was relatively scarce. The frequently recurring bad weather and the resulting damage to the sugar-cane crop has caused the introduction of a cane with greater resistance to these climatic conditions, known as the ''Java cane." It is expected that the adoption of this variety will tend to stabilize production in the near future, and it is probable that Argentina will become self-sufficient in sugar production and may even become a regular exporter before many years. SUGAR FACTORIES. The sugar-refining industry began to be of significance toward the middle of the nineteenth century, when it was established in Tucu- man. It developed gradually, but it is only during the last 10 years that it has spread to any considerable extent. Considering aU of the established sugar mills, there are probably not fewer than 40 of first-class importance working to-day, and of these fully 27 are located in the one Province of Tucuman. There are three in Jujuy, one in Formosa, and Rve in the Chaco. This is an industry representing the utilization, directly or indi- rectly, of a capital of not less than $73,497,500. To aid this business, the National Government built the first narrow-gauge railroad from Cordoba to Tucuman in 1874 and extended it to Salta and Jujuy by 1891. The extension of the Central Argentine Railroad from San- chales and of the French Fives-Lille Company Railroad to Tucuman was made in 1890-1892 in order to make these roads carriers of the sugar. The nation has endured high prices necessary for develop- ment of this industry. In spite of the assistance rendered by the National Government in the building of the narrow-gauge road mentioned above, a serious bar to export business still exists in the great distance which divides the productive area from the ports at which ocean steamers congregate in search of freight. The prevailing railroad rates are very moderate, however, averaging little more than the equivalent of 1 cent per ton-mile, so that further economies in transportation can not reasonably be expected. The industry will certainly continue to expand, however, because of needs of the increased population of the country. The normal factory output of about 250,000 tons is produced 75 per cent in Tucuman, 20 per cent in Salta and Jujuy, and-5 per cent in the Provinces of Santa Fe, the Argentine Chaco, and the Province of Corrientes. The most economic type of sugar factory is that which crushes 1,000 tons of cane in a long day. The market of the country accepts only the whitest sugar. The machinery used is imported from Great Britain, France, Ger- many, the Netherlands, and America. For elegance in appearance and^ first-class workmanship the French plant ranks highest; the Scotch designers secure first position in practical application of scientific ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 31 methods to serviceable material; and Glasgow hydro-extractors hold the field. In cane handling the American Hoist & Derrick Co. remains unchallenged in providing the most efficient plant at the least initial cost. The German machinery owes its acceptance to its cheapness and the accommodating terms of payment under which it is sold. COTTON. Cotton production is decidedly in the experimental stage. The Government is interested in fostering its increase, as is shown by the offer of the Provincial Museum in Salta to give free samples of the seed, but the land suitable is situated in the hot semi tropical Provinces of the north; especially in Chaco. The area of possible cultivation .Graph No. 4- MunoMS or METf^ic Tons EXP0RT5 OF Pf?INClPAL Agricultural Products Z 3 4 5- € LINSE EO HAIZF ^ WHEAT )8?8t I5o^ 1903-1507 I509-I9IZ I?I3-I9I7 is very large, being, in fact, as large as that in the United States. The many drawbacks are stated in Commerce Reports of June 7, 1918, as follows: The raising of cotton in Argentina is not without attendant difficulties. The Terri- tory of Chaco lies in the north central part of the Republic, in the warmest part of the country. It is a wild and unsettled and largely unexplored tract, partly timbered and partly prairie. Living conditions are of the Worst; practically all accommoda- tions must be taken with the settler who goes there to live. Transportation is at present mostly confined to traffic on the rivers. The crop of the Territory of Chaco, which is the principal producer, amounted to 3,500 metric tons in 1918. GRAPES. The center of the grape industry lies in the Province of Mendoza, due west from Buenos Aires at the base of the Andes. Dry through- 124236°— 20- 32 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. out the year, the melting snows from the mountains make produc- tion possible by means of irrigation. The quality of the Argentine wines is excellent, but they lack the reputation of those produced in Europe. During the war the exports to her neighbors, Uruguay, Paraguay, and Brazil, have increased. The heavy imports of foreign wines in normal times show the extent of the local market. Two by- products of the grape industry are becoming articles of commerce, viz, grape sugar (argols, or wdne lees) deposited by the grape juice, which is known in trade as cream of tartar, and oil pressed from the seed. A new company, largely financed by Americans, has located near Mendoza (1918) and purchases seeds from the near-by vineries for crushing. TRADE IN AGRICULTURAL PRODUCTS. The following table shows the export trade in the chief agricultural products during the last 20 years: Exports of Principal Agricultural Products.^ Year. Corn. Linseed. Wlicat. Oats. Bran. Fiour. 1898 Metric tons. 717, 105 1,116,276 713,248 1,112,290 1, 192, 829 2,104,384 2,469.548 2, 222, 289 2, 693, 739 1.276,732 1,711,804 2,273,412 2,660,225 125, 185 4,835,237 4,806,951 3, 542, 280 4,330,594 2,873,910 893,9.39 342.953 Metric tons. 158,904 217,713 223, 257 338, 828 340,937 593. 601 880, 541 654. 792 538, 496 763, 736 1,055,650 887, 222 604, 877 415, 805 515,399 1,016,732 841,590 981, 192 639,914 141,308 324,471 Metric tons. 645, 161 1,713,429 1,929,676 904,289 644,908 1,681,327 2,304,724 2, 868, 281 2,247,988 2,680,802 3,636,294 2, 514, 130 1, 888, 592 2,285,951 2, 629, 056 2,812,14^ 980, 525 2,511,514 2, 294, 876 935,828 2,771,619 Metric tons. 1,107 5,367 7,619 2,225 19,842 26,245 29,156 17, 167 51, 661 143,566 440,041 421,352 370,948 511,3.89 896,032 889, 744 353,700 592. 797 804,443 271,713 399,105 Metric tons. 52,935 78, 8^0 73,314 92,630 104, 677 132, 192 154,456 176,664 178,517 209, 125 208,309 207,238 250, 777 214, (i34 325, 226 274,058 230,934 177. 661 29,035 19,872 1,931 Metric tons. 31,933 1899 59,464 1900 51,203 1901 71, 742 1902. 39,040 71,980 1903. 1904 107,298 1905 144, 760 1906 128, 998 1907 127,499 1908 113,500 1909 116,487 1910. 115,408 1911 1912. . 118,486 131,580 124,649 1913 1914 67,325 1915 116,049 1916.. 144,290 1917 112,466 19183 119, 598 1 Source: El Comerclo Exterior Argentine, Boleiln 179, p. 99. 2 Fir.st nine months. The great variations in the exports of corn, linseed, and w^heat are shown — for example, the small wheat exports in 1901, 1902, and 1903, also in 1914; the corn exports in 1900 and 1911; and the differ- ence between exports of linseed in 1912 and in 1913. Graph No. 4, giving five-year averages, shows the general tendency of corn, linseed, and wheat exports to increase, and the beginning of oats in the period 1908-1912 as an important export. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 33 Exports of Principal Aohiculturat. Products: Five-Ybar Averages. Years. f'orn. lyinsecd. ^Vheat. Oals. Bran. Flour. 1898-1902 Metric tons. 907,349 2.153,338 2,321,172 3,289,534 Metric tons. ■ 255,927 686,233 695, 790 724, 147 Metric tons. 1,167,492 2,356,624 2, 589, 804 1,906,978 Metric tons. 7,232 53,559 527,952 582,479 Metric tons. 80,489 170, 190 241,236 146,312 Metric tons. 50,676 116 107 1903-1907 1908-1912 119,092 112,956 1913-1917 METRIC Tons Effect of the V/Af? on the EXP0/?T5 OF /IgRICULTURAL PRODUCTS Note.— The bar representing exports in the first nine months of 1918 is three-fourths the width of bars representing whole years. The length of the bar is extended by one-third, so that the total area represents the true exports during the nine months, while the length gives an easier comparison with former years, since it would be equivalent to exports for the year if exports during the last three months were equal to one-tlxird of the amount exported in the first nine months. Graph No. 5 represents metric tons of agricultural products ex- ported during the war period. The decrease in 1914 indicates the first shock of the war. By 1915 exports of all the important products had picked up again, in 1916 the scarcity of shipping limited exports, especially of corn, wheat exports being cut comparatively slightly and exports of oats increasing. The great decrease in 1917 was due, in the case of corn, to the scarcity of snipping, corn not being a commodity important enough to the Allies to warrant the use of the limited supply of ships. The year 1917 was a poor crop year, as previously stated, and wheat production was very low in Argen- tina. The good crop of 1918 supplied many tons to the allied coim- tries, while a large surplus of corn accumulated in Argentina and remained unshipped. Agricultural products which are imported in considerable quanti- ties are rice, sugar (during deficiency years), coffee, tea, cocoa, fruits, and tobacco. ni. ANIMALS AND ANIMAL PRODUCTS. IMPORTANCE OF LIVE-STOCK INDUSTRIES. Cattle and sheep raising have been the most important industries in Argentina for many years, contributing from 31 to 68 per cent of the value of the export trade every year since 1898. Like all new countries, relatively^ undeveloped in manufacturing and sparselv populated, Argentina is able to produce a large surplus of foodstuffs and other animal and agricultural products and will continue to do so for many years in the future. The graph and table on page 42 show the importance of animal products in Argentine export trade during the last 20 years. ARGENTINA'S POSITION IN WORLD MEAT TRADE. The preceding pages have shown that Argentina's production of wheat and maize, though smaller than that of some other countries, provides a large share of the world's export surplus of these staple commodities. The same condition exists with reference to Argen- tina's live-stock figures and its meat exports. The following three tables show Argentina's position as a producer of the three chief meat animals : Argentina's Prb-War Position as a Cattle Raiser.^ oun tries. Date of census quoted. Number of cattle. 10. British India United States European Russia and Poland Brazil Argentina Germany Austria-Himgary, including Croatia and Slavonia. France United Kingdom Australia 1914 1913 Dec, 1913 June 1, 1914 Dec, 1913 1910-11 1914 1914 1913 56,592,000 37,165,000 30,705,000 25,867,000 20,874,000 16,479,000 14,788,000 12,145,000 11,484,000 1 Source: Handbook of Food Statistics in Relation to the War, United States Food Administrationt 1918, p. 56. Argentina's Position in Sheep Raising.^ Coimtrics. Date. Number of sheep. 1. Australia. .. . ... Dec. 31,1915 Jan. 1,1917 June 1, 1914 1914 Dec. 31,1915 Jan. 31,1917 June 4,1917 69,706,000 48,483,000 43,225,000 37,240,000 2 . United States 4. Russia 5. South Africa 31,434,000 6. New Zealand . 24,753,000 7. United Kingdom 24,026,000 Sotarce: Yearbook of U. S. Department of Agriculture, 1917. 34 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 35 Argentina's Pre-War Position as a Producer of SwineJ Countries. Number of swine. 1914 Dec, 1913 Dec, 1913 1910-11 1913 1914 1913 Argentina I June, 1914 1. United States. 2. 3. 4. 5. 6. Germany Brazil Austria-Hungary, Including Croatia-Slavonia. Russia (European) and Poland United Kingdom 7. Canada. 58,933 25, 592 18,399 14,013 12,487 3,940 3,488 2,901 1 Source: Handbook of Food Statistics in Relation to the War, United States Food Administration, 1918 Note. — Argentine exports of hog products have been comparatively small in the past. It is probable- they will become a more important item in her meat export trade in the future. As an exporter of meats and meat fats, however, Argentina ranks first among the countries of the world. Argentina's Position as a Meat Exporter.^ [Thousands of pounds.] Coimtries. 1914 1915 1916 1917 Argentina 1,207,649 8 1,0.53,404 218,348 2,372 1,196,964 1,152,368 291,303 21,180 1,427,665 1,509,539 233,756 93,214 1,663,440 United states 2... 1,553,997 305,300 Brazil. 188,164 1 Holmes: Meat Situation in the United States; U. S. Department of Agriculture, Report No. 109, Oflace of the Secretary. 2 Net exports for fiscal year. « Average 1912-1914. As an exporter of wool, Argentina is surpassed only by Australia. LIVE-STOCK RAISING. AREAS. (Unlike the production of food crops, which has been restricted to certain districts, the raising of live stock has been carried on in each of the Provinces and Territories, as shown in the census of 1914. Nevertheless, this industry is centered in certain districts. The Provinces of Buenos Aires, Santa Fe, Entre Rios, Corrientes, and Cordoba together raised 82 per cent of the cattle • Buenos Aires 45 per cent of the sheep and 50 per cent of the swine.] The accompany- mg tables show the Argentine cattle situation. ^ The world cattle statistics of recent years show an increase smaller proportionally than the growth of population. This is not the case in Argentina. Its large area and small population make it a source of food supply. For the next few years, however, exports of meat products will decrease slightly, because more live stock has been slaughtered recently than the industry can bear. 36 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Head of Live Stock. Animals. Census of 1908.1 Census of 1913.1 Estimate, 1918.2 Cattle 29,116,625 67,211,754 1,403,591 3,945,086 7,531,376 465,037 30,796,000 81,485,000 3,197,000 4,564,000 9,366,000 584,000 25,866,763 43,225,452 2,900,585 4,325,280 8 323 815 Sheep Swine Goats Horses Mules '565' 069 Total 109,673,669 129,992,000 85,206,964 1 Source: Annuaire International de Statistique Agricole, 1915-16, Rome, pp. 240, 241. 2 Source: Bunge, Riqueza y Renta, p. 59. Distribution op Live Stock, 1918.^ Regions. Cattle. Regions. Sheep. Regions. _ Swine. Buenos Aires Corrientes 9,090,536 3, 543, 395 3,179,260 2,540,313 2,334,372 5, 178, 887 Buenos Aires Entre Rios 18, 776, 260 4,304,305 3,940,616 2,802,282 2,348,584 2,282,823 2,047,037 6,723,545 43,225,452 Buenos Aires 1,394,042 474,326 333,793 112,007 Santa Fe Santa Cruz.. . Cordoba Cordoba.. Rio Negro... Entre Rios Entre Rios Other PaTTipa... Chubut Other Other 586,417 Total Total Total.- 25,866,763 2,900,585 Source: Bunge, Riqueza y Renta, p. 59. CATTLE. Argentina is surpassed only by British India, the United States, Brazil, and Russia in the number of cattle raised. There was a considerable decrease in the number of live stock in Argentina during the war, which was caused by the high prices obtained for the products and the resulting tendency to sacrifice good breeding material at the slaughterhouses. Such a condition is especially unfortunate in Argentina, inasmuch as the Republic has had such a strenuous period of 40 or more years trying to develop its tough, bony, native stock into an edible product. To-day the live-stock people take an interest in the breeds, and at the annual Palermo live-stock show much pride is taken in exhibiting the cattle. Until 1915 England practically dominated the import trade in pedigreed stock. During the years 1911-1914 more than 12,000 head were derived from that source. Among these the shorthorns and the Herefords predomi- nated. In the past three years the American Durham shorthorn has become a favorite. Sections of Argentina are undergoing the same changes in methods of cattle raising as those experienced in the United States. '■ In the regions where imported breeds are found the ranching system has been replaced by stock farms, with alfalfa as the fodder. This trans- formation has been caused by smaller holdings and because more care is devoted to the higher-valued animals. In the neighborhood of Buenos Aires there are large dairy herds. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 37 SHEEP. Argentina at the present time is surpassed by Australia and the United States in the number of sheep raised. In the years before agricultural crops had assumed such a position of importance live- stock production was the leading industry, even in the garden Prov- inces of Buenos Aires, Santa Fe, and Entre Rios. The stability of the sheep-raising industry is shown in the figures for 1918, which give the Province of Buenos Aires 18,776,260 sheep, 45 per cent of the total. The sheep of these northern Provinces are meat producers, although the original stock furnished the ^'criollo'^ wool used for carpets. Pedigreed stock has been imported, especiaUv the Ram- bouillets and the Lincolns. Mutton exports, compared with beef, are relatively small, owing in part to the fact that Australia and New Zealand have such well-established connections for the sale of this prpduct in western Europe. (The varied climate of Argentina furnishes an adaptable region for every breed. In the southern^ Territories of Santa Cruz, Kio Negro, and Chubut — too cold for agriculture — ^wool is produced ex- tensively. Along the coast and river valleys and near the base of the Andes land is available only in the elevated regions, which afford summer grazing but poor winter conditions. The Government is investigating the huge grants of land in this section. As a result, there may be a redistribution, and the pioneer settler may find new opportunities in wool production in this region.", SWINE. The raising of hogs has never been popular in the Republic, yet the war statistics show a smaller relative decrease in the number than in the case of other animals, f The industry will probably grow rapidly, because the hogs not only Coffer a salable commodity, but suggest a method of utilizing the surplus of the corn crop. Armour's equip- ment for handling 1,000 head of swine daily may be an inducement for large production. \ FOREIGN TRADE IN ANIMAL PRODUCTS. Animal products, which figure in Argentina's trade, are of six classes as follows : Live animals ; frozen, chiUed, or preserved (canned) meats ; dairy products; hides; wool; and minor by-products, such as tallow, margarine, bones, etc. Cattle and sheep raising in Argentina have been carried on from the first, chiefly for the products which have figured largely in its export trade, because of the small population and the extensive facilities in good grazing land. In the early years, when there was no method of shipping meat over lonff distances, the chief animal products figuring in foreign trade were live animals, hides, wool, tallow, and bone, meat often being destroyed because of the impossibility of placing it in foreign markets. Extract of beef became an important item, to- gether with jerked and salted beef, which could be shipped to Europe without being destroyed by the long journey. With tne introduction of refrigerating methods and faster ocean transportation, meats, principally frozen beef, became the leading animal export. Graphs Nos. 6 and 7 show the development of the meat exports and their relation to these other products. 38 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Go«.o PESosr* E)cpoRT5 OF Principal Amimal Products Fffon ArgenTIWA l2^2-)'6'^6 S YeAtt r AVERAGES \d'\7' 18*1 IW7-|*?0I l<10J-l<106 ISOT-HIl -^ T ■^ -^ isa. '^Nominal V< tyC5. Millions of Goto Prsos Exports of Animal Products. nii-i9i8 lOo 2oo •^oo ■^"n- ^oo o*inY PRrovcTS ^ Live ANIMALS y OTM£J» ANIMAL PffOOl/trS VOTHx The bar representing exports In tha first nine EOnths of 1918 la three- fourths the width of tare representing^ iThole years. The lengih is extended by ono-thlrd so that the total area repre- sents the true exports during the nine months, while the length gires an easier comp^irison with former years, since It trould be eaulvalent to exports for the year If exports during the last three months equaled one-third of the amount exported In the fi rst nine months. ECONOMIC POSITION OF ARGENTINA DUBING THE WAR. 39 Exports of Principal Animal Products, I892-1911J [Nominal values in gold pesos.s) Years. Hides. Meat. ^Vool. Tallow. 1892 21,185,694 14,980,343 17,985,032 21,985,759 17,139,591 19,486,152 20,786,767 25,090,578 22,613,020 23,251,315 26,181,991 25,597,370 24,657,176 30,509.833 29, 504, 717 26,312,984 23, 535, 769 40,305,069 41,382,501 44,359,065 7,039,712 6,742,655 6,832,005 6,231,532 5,498,106 4,927,035 5,057,684 5,001,525 9,366,970 12,802,815 16,551,185 16,666,230 18,940,141 26,052,136 21,985,978 21,419,793 25,569,667 20,358,475 33,905,058 42,306,488 44,326,060 25,006,348 28,946,933 31,029,532 33,516,049 37,450,244 45,584,603 71, 283, 619 27,991,561 44,666,483 45,810,749 50,424,168 48,355,002 64,312,927 58,402,771 59,252,948 47,246,783 59,921,951 58,847,699 50,494,027 2, 263, 729 1893 2, 549, 763 1894 ■ 2, 809, 450 1895 . 3,807,751 3, 179, 326 1896 1897 2,656,048 2,862,512 2,205,593 2. 805, 367 1898 . . 1899. 1900 1901... 2,902,715 6,209,038 4,735,579 4,012,083 5,323,005 1902. 1903 1904 . . 1905 1906 3,487,459 4,813,778 6,033,774 7,573 230 1907 1908. 1909 1910... 9,536,974 11,768,900 1911 FI\'E-YEAR AVERAGES. 1892-189'? 1897-1901 1902-1906 1907-1911 18,655,284 22, 2i5, 566 27, 290. 217 35,179,077 6, 508, 802 7,431,206 20, a39, 135 30,511,896 32.564,984 45,395,302 53,461,123 55,152,681 2,922,004 2,686,447 4,953,433 7,945,331 1 Source: Anuario de Estadlslioa, 1911; preface, p. XVf. « N orainal values are u^od liere because real values have not been calculated for years prior to 1910. and nominal values differ only slightly before 1911. Real Value of Argentina's Exports of Animals and Anxmal Products.^ [Real values in gold pesos.) Products. 1911 1912 1913 1914 Meats Dairy products Wool. Hides J Ave animals Other animal products Total 60,931,362 1,390,605 50,494,027 44, 443, 881 9, 639, 891 19, 270, 432 65,000,465 3, 157, 489 58, 148, 664 62,664,418 11,479,996 19,012,860 76,373,504 3,051,492 45, 270, 016 46, 671, 508 9,787,370 19, 724, 245 186, 170, 198 209, 463, 892 200, 878, 135 91,009,752 2,860,177 46,967,658 38,416,821 7,168,585 12,271,750 198,694,743 Products. 1915 1916 1917 1918, 9 months. Meats Dairy products Wool Hides Live animals Other animal products Total 97,623,?75 3,621,603 55,579,000 53,787,445 10,384,812 13.851,549 129,277,603 5,194,021 66,229,428 67,309,112 6,944,766 20,623,400 137,085,392 11,626,270 118,382,532 70,280,627 4,902,288 33, 758, 158 175, 738. 506 12,952,820 102, 873, 164 40,317,056 7,729,114 30,108,026 234,847,68-1 295,578,300 376,035,267 369,718,686 1 Source: El Comercio Exterior Argentino, Boletin 176; Anuario de Estadlsiica 1911, 1912, 1913, and 1915. 1914, 40 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. LIVE ANIMALS. The live animals exported are cattle, asses, mules, horses, sheep, and a few llamas and hogs. By far the largest item in the exportation of live animals is cattle, amounting to 6,136,299 pesos gold out of the 7,729,114 pesos gold of exports of all live animals during the first nine months of 1918. Almost all of these were destined to South American countries, especially Uruguay, to which were sent 74, 101 head of cattle during the first nine months of 1918 and 45,019 during the year 1917. Dairy products have be^un to figure in export trade recently. Hides nave always been an important factor, while Argentina's wool exports have more than doubled in value since 1911 and increased in quantity from 120,000 tons in 1913 to 127,000 tons in 1917. MEAT PRODUCTION AND TRADE. In the early days, when exports were few, cattle were shipped to Europe on the hoof. In other cases the saladeros shipped their salted and dried beef to other tropical countries. With the introduction of refrigerating processes came great possibilities in the development of the frigorificos or refrigerating plants. At first frozen meats were shipped, later came the chilled meats, when refrigerating vessels were placed in the service. The chilled meat commands a higher price, due to a better flavor. The business of slaughtering the live stock and preparing them for shipment has developed into the leading industry of the country. This development is due in part to the erection of facilities for slaughtering and refrigerating by American packers, who were suffering from the decreasing supply of cattle in the United States. In 1901, when the exports from the United States began to decline materially, the exports of Argentine beef began to assume importance ; since that date the increase nas been steaoy and rapid, 559,216 tons being exported in 1917. England has been the principal market for Argentine beef, although the war demands have changed conditions somewhat. Italy and France have imported large quantities of frozen beef for their armies, and the United States has recently become a meat importer.^ One of the causes of the development of the refrigerating industry is the closing of English ports against cargoes of live cattle, for fear of anthrax. The refrigerating companies conquered the English market, which purchases the greater part of the Argentine frozen meat. Steps have been taken with a view to reopening the ports imder a pledge of sanitary measures; but nothing decisive has been done on account of the protests of English cattle breeders, and also of some Argentine refrigerating companies which have been created by Ei^lish capital. Of the 11 large frigorificos doing business in the Republic, only 2 are controlled by Argentine capital. The English early sought this lucrative trade, but the big American packers established frigorificos of such strength that the British concerns sent a joint appeal to the Argentine Government in 1913 to prevent the excessive exportation by the American concerns. The Government, however, found no 1 By no means a "net importer." Beef is the principal meat imported; it Is also exported in much larger quantities. r ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 41 abuses in the American methods. With the first shock of the war many of the refrigerating plants were forced to close, but in the autumn of 1914 the British Government contracted for 15,000 tons of frozen and chilled meat per month for 12 months. An agreement, similar to the wheat convention, seems not to have been necessary, because the British Government contracted for 80 per cent of the output of the British frigorificos. Swift & Co. were the fu-st United States packers to enter Argentina, and they control the Compania Swift de la Plata. This company reported paid-up capital of $7,237,500 in 1915. Armour & Co. opened a new frigorifico in 1915 at La Plata, which is said to be the largest in South America; its capital is $9,650,000. The company is, technically, an Argentine concern and is known as the Sociedad Anonima Frigorifico Armour de la Plata. The Sociedad de La Blanca, with a capital of $4,342,500, is also an Argentine company, controlled by Morris and Armour. The Frigorifico Wilson de la Argentina, at Valentin Alsina, Prqvince of Buenos Aires, is also controlled by United States capital. The following table, listing the 1 1 f rigorificos in Argentina and giv- mg their exports of frozen and chilled beef during the first half of the two years 1917 and 1918, shows the great increase in the exports of frozen beef by Swift & Co., and by other United States companies, a similar increase for British companies, and the relation between the products of companies controlled by British, American, and Argen- tine capital. Meat-Packing Companies (Frigorificos) and Their Exports, January-July, 1917, AND January- July, 1918.* January-July, 1917. January-July, 1918. Frigorfficos. Frozen sheep and lambs. Frozen beef. Chilled beef. Frozen sheep and lambs. Frozen beef. Chilled beef. Argentine: Cia. Sansinens Carcasses. 142,529 25,785 Quarters. 130,095 127,367 Quarters. 26,044 11,441 Carcasses. 103, 755 25,582 Quarters. 155,112 130,970 Quarters. 254 Total Argentine 168,314 257,462 37,485 129,337 286,082 254 British: Las Palmas . . 224, 139 47,690 65,073 835,386 146, 795 108, 808 66,409 24,732 103,111 35,235 42,496 779,716 173,395 252,600 3,083 Smithfleld & Argentina Meat Co 1,409 Total British 336,902 1,090,254 91,141 180, 842 1,205,711 4,492 American: La Blanca 123,037 124,616 133, 774 188, 120 41,284 385,758 473, 732 160, 195 <113, 255 441, 402 25,952 126,971 24,782 60,900 15,047 41,431 146,327 60,562 141,463 7,258 441,494 743,590 199,043 477,394 27,111 Swift de la Plata 5,055 4,300 7,155 Fr. Wilson de la Argentina, S. A Fr. Armour de la Plata, S. A.. Swift de Montevideo, S . A Total American 610, 831 1,874,342 243,652 397,068 1,888,632 16,510 1 Source: Commerce Reports, Nov. 14, 1918. As clearly shown in graphs Nos. 8 and 9 and by the following tables, frozen and chilled meats, especially frozen beef, have become by far the most important meats exported, while salted and jerked beef exports have slowly diminished in importance. The salt- meat or ^^saladeros" industry is carried on principally in Buenos Aires, Santa Fe, Entre Rios, and Corrientes, and exports of this kind of meat are chiefly to Latin America. During the war the demand 42 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. for beef — especially frozen and canned beef — in Europe caused Aigen- tina's exports of meats to increase. Graph 9 shows that the increase consisted of frozen beef and canned meats. The particular advan- tages of canned meat for armies in the field is responsible for this fact. JbJS. /VEf?AGLeS T Argentina'^ Exports of Principal Meats )S^8-ni7_7bNS. l908-l«ligL|l,'|i,i,l|l,',l,l,l,l| '''''■'■'■'■'''■'''■'■' n\Z-\iprlftnds . . 895 177,063 Peru . . United Kingdom 13,696 37,102 10 2,000 863,909 2,324,203 603 128,758 66,244 9,842,590 United Kingdom (p. o.) Russia Sweden . . . 6,014 647,033 Turkey Uruguay . 1,279 77,010 1,130 30 173 66,083 1,809 10,987 573 230 1,502 600 45 93,822 44,801 219,950 90,127 8,902 Chile. .^.:::;::::::::;:::::;::: Norway Denmark Portugal Boliva South Africa ............ Switzerland Total... 79,684 4,800,575 80,153 5,005,401 100,213 15,317,804 1 Source: El Comercio Exterior Argentino. * Value converted to United States currency on the basis of $0,965 throughout. 56 EOONOMtC POSITION OF ARGENTINA DURING THE WAR. Exports op Quebracho Extract, 1913 to June, 1918 —Continued. Countries of destination. 1916 1917 1918, Jan.- June. Quantity. Value. Quantity. Value. Quantity. Value. Germany. Austria-Hungary - Belgium Brazil 126 694 24,693 3,572 11,282 209 1,573 30,527 9,620 12,926 249 295 136 16,644 7,099 5,913 862 Spain... United States France Italy Japan Netherlands 449 Peru 34,096 21,280 8,764 United Kingdom (p. o.)-. - . Russia is, 762 3,777 250 Turkey Uruguay 516 155 1,738 2,016 697 1 10,218 408 1,923 849 450 469 249 Chile Norway Portugal Bolivia South Africa 43 252 72 Switzerland... . Total 97,574 $18,974,890 1 90.777 $13,645,303 40,503 $4,254,702 ' FIREWOOD. Most of the material for firewood grows in the northern undevelop- ed regions of the Provinces served by the narrow-gauge State rail- ways. Woods have always been used extensively as fuel in homes, and during the war have been used on railways. However, the number of fires in the wheat fields caused by wood sparks prove the unsuitability of wood to the railways save as makeshift fuel. In 1917 the narrow-gauge State railroads had a monthly carrying capacity of 600,000 tons of wood. At the ratio of 3 tons of wood to 1 ton of coal, this supply furnishes the equivalent of 200,000 tons of coal a month, or 2,400,000 tons a year, a satisfying result if it were an ideal fuel. In the Province of Santa Fe one railway transports 150,000 tons of wood per month; the Province of Santiago del Estero can not obtain transportation for its accumulated stock of wood. Firewood was exported from Argentina in large quantities in 1917. In that year 172,538 tons left the Republic, with a value of SI , 1 21 ,306, the figures for 1916 being 12,613 tons and $112,465. The scarcity of wood in 1918 was due to the congestion of trafiic on the State-owned railways, and this was caused largely by the irreg- ularities practiced by the managers of these railways in leasing cars to certain firms to the prejudice of the general public. However, the exports of firewood m the first six months of 1918 amounted to 109,506 tons, valued at $683,544. At the beginning of 1917 wood fuel sold at $9.76 per ton, the early part of 1918 at $17 to $18.70, and the latter part of 1918 at $21.23 to $33.97. CONCLUSION. Why is Argentina not independent of the world for her lumber supply ? The lack of railroads, the lack of sufficiently large rivers in the wooded sections, and the bad condition of the roads have re- tarded this industry. The methods of lumbering are crude, costly, and wasteful. As much as 60 per cent of the timber felled is wasted. V. MINERALS. DEVELOPMENT OF MINING INDUSTRY. Argentina has always concentrated its efforts upon agriculture and cattle raising and has paid little attention to other industries. The lack of transport, the scarcity of labor, and the absence of natural motive forces, together with the more favorable economic position of agricultural and animal industries, have tended to retard the development of new industries in mineral and other products. The mineral resources of Argentina must therefore be considered as sources open to future development, rather than actual large con- tributors to wealth at the present time. There are mineral-bearing regions over the whole eastern slope of the Andes, extending from Bolivia to Tierra del Fuego. The Argentine Government during the past four years has stimu- lated interest in mining, especially gold, silver, and copper. An aerial railway, one of the greatest pieces of engineering in the world, w^as built by the Government to exploit the ridi mines of Famatima. situated in the Province of La Rioja. The Government has introduced very liberal laws concerning mines. The State, instead of exploiting the mmes itself, grante concessions to individuals who prove themselves capable of admin- istering their own property. To acquire a claim, a written demand is presented, describing exactly the location and the nature of the property demanded, giving a detailed account of its discovery and any other useful information, together with a sample of the mineral. The claimant has full ownership of his mine after the Government has decided upon the right of priority and has made a survey of the property. The mine and its products are untaxed, whether sold at home or abroad. An obligation upon the mine operator is that he work his claim with at least 4 laborers during 230 days of the year. If this condition be not fulfilled, another person may demand the concession of the abandoned mine. The result of this action of the Government is that several impor- tant limited mining companies have been formed which have ob- tained good results and various railway systems have been extended to the mining districts. Petroleum and w^olfram are considered by Mr. W. H. Robertson, United States consul general at Buenos Aires, as the most important of the mining -products of Argentina. The demand for mica was stimulated in 1917, resulting in further development of this resource. PETROLEUM. Although the national deposits of petroleum in the Argentine Provinces are little exploited, the Board of Mines and Geology has determined the region in w^hich this mineral product is located. On account of the value of petroleum as a substitute for coal, its develop- ment will tend to make Argentina more independent of imported f uefc. 57 58 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. At present, however, heavy imports of petroleum products are assured. The imports of petroleum and its products increased from 191,378 tons in 1913 to 300,027 tons in 1917. Argentina has also re- ceived heavy imports of kerosene, the United States furnishing prac- tically the total imports. One of the four petroleum districts is in the Province of Mendoza, at the base of the Cordillera Range; a second district is located in the tar and asphalt zone of Mendoza and Neuquen; a third is along the Patagonian coast, near Comodoro Rivadavia ; and a fourth is the Salta-Jujuy field. The fields of Mendoza were the first to be ex- ploited and were surveyed in 1886. The zone of Comodoro Rivadavia, situated on the coast about 850 miles south of Buenos Aires, contains the greater part of the petro- leum wealth of the Republic. In spite of the fact that it is the most accessible and the only region exploited to any considerable extent and was discovered years ago, little headway in scientific knowledge and productive efficiency has been made. There are 18 weUs being exploited, producing, respectively, from 35 to 2,859 cubic meters of oil per month. One of the weUs gives 180 tons daily, which can be sold approximately $60 per ton, with a profit of $41. The Comodoro Rivadavia weUs are controlled and operated by the Government for the purpose of using the oil extensively for the navy, ^t is not probable that Government control wiU be released. There are several private companies exploiting the oil fields which are outside the Comodoro Rivadavia district, but their output is ven^ small. The oil of the Government wells is heavy and has an asphalt base. On distillation it yields 1.5 to 3.5 per cent of naphtha and gasoline, 15 tp 19 per cent of illuminating oils, and 77 to 85 per cent of lubri- cants, fuel, and coke. It is most useful as a fuel to be used as a sub- stitute for coal. The oil of the other three fields is lighter than that of Comodoro Rivadavia ; it has a paraffin instead of an asphalt base. Samples from these districts give 5 per cent of light oil, 30 per cent of kerosene, and 52 per cent of lubricating oil. Although the policy oi the Government with regard to increasing the output of petroleum is one of conservation as well as exploitation, and the Government is guarding against the policy of working the fields to such an extent that a considerable exportation would result, yet the increase of production has been large. The amount of oil produced was 101 United States barrels in 1907, 1,147,000 barrels in 1917,1 and 299,660 barrels from January to March, 1918. The Government has authorized the issue of bonds to the value of $6,500,000, to be used in increased exploitation of these fields. The increased output, however, assisted only partly in restoring fuel conditions to normal. Present indications are that, unless more profitable wells are developed, the oil output will not meet domestic needs. Imports of petroleum increased during the war, as shown in the following table and graph No. 10. » Less than 0.2 per cent of world production in that year. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 59 Production and Consumption of Petroleum in Argentina, 1912-1917. Years. Imports. Per cent. Produc- tion. Percent. Consump- tion. Percent. 1912 Metric tons. 143,817 191,378 161,462 306,955 304, 115 300,027 100 Metric tons. 6,268 17,416 36,733 68,876 160,000 200,000 100 Metric tons. 150,085 208,794 198,195 375,831 464, 115 500,027 100 1913 1914 1915 1916 1917 208 3,190 333 KRaPW Na. lo M Ports, Pf?oDucTtoN & CoN^un ption OF pETTROLEun IN AfTG-ENTlNA _ l<1lX-l*^ir. ThoosaSoS of METRIC Tons \^\% ni3 ISM n is- ms I'? IT Consumption of petroleum increased during the war from 208,794 metric tons in 1913 to 500,027 metric tons in 1917. At the same time the imports of coal were cut down from 4,046,278 metric tons in 1913 to 707,712 metric tons in 1917. The lack of shipping to bring coal from England or the United States resulted in an acute fuel shortage in Argentina during the war. Firewood was more used, as has been pointed out, and corn was also commonly used as a fuel in homes. The increased production and imports of petroleum doubtless helped the condition, but they did not completely solve the acute fuel situation which was forced upon Argentma by the war. The increased production and imports of petroleum did not meet the demand sufficiently to keep down the price. The table follow- ing indicates that a considerably larger supply of petroleuni could have been disposed of in Argentina had it been available during the war. / 60 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Prices of Petroleum in Argentina.^ [United States currency.] Per ton. Shortly after declaration of war , $10. 62 March, 1916.. { IJ; ^0 April, 1916 25. 48 February, 1917 29. 72 October, 1917 36. 09 December, 1917 40. 34 February, 1918 46. 70 May, 1918 50. 95 July, 1918 2 55 20 According to a statement made in the Standard Daily Trade Serv- ice, Volume IV, item 1025, the cost to the Government from April to July, 1918, of oil per cubic meter placed in Buenos Aires was $8.94. This amount included the cost of a cubic meter at the well, $5.10; the embarkation cost at Comodoro Rivadavia, $0.40; transportation from Comodoro Rivadavia to Buenos Aires, $3.22; and storage and handling at Buenos Aires, $0.22. The cubic meter yields 925 liters; so it is calculated that the cost per ton of petroleum placed in Buenos Aires was $9.65. The Government in February, 1918, charged $46.70 per ton and produced the oil at $9.65 per ton, thus making a profit of $37.05, or 260 per cent. The estimated yield for 1918 was 200,000 tons, which was salable at a profit of at least $37 per ton. This income of $7,400,000 (United States currency) can be used to meet the extra wartime expenditure and will cause a reduction in the rate of taxation within Argentina. The importers of petroleum have made large profits. The cost to the Anglo-American Petroleum Co. of crude petroleum which it sold in Argentina, including transport and other expenses, did not exceed $19 per ton. Selling it at $60 per ton, a clear profit of $41 was made. The Government expects to increase the output of its wells to such an extent that the importation of petroleum will no longer be necessary. COAL. The coal and iron deposits of Argentina are distributed over a region of thousands of miles. They are in the ranges of the Cordil- lera, 4,000 to 5,000 feet above sea level, over 900 miles from the coast and far from roads or waterways. The natural motive force of that district is of no assistauce to miners, there being only a few waterfalls in Cordoba and Tucuman. Coal mining is being developed, especially in the Province of Mendoza, and it appears that although the output is still small, Argentina will be able in the near future to supply its own needs and also those of the neighboring States.^ According to a report of Consul General Robertson, made in July, 1917, valuable coal deposits have been discovered near Lake Epupen, in the Territory of Chubut, within 124 miles of the railway at San Antonio. The deposits, which are near the surface, are extensive, of considerable thickness, and of high quality. In order to develop these deposits, transportation by means of trucks from San Antonio 1 Sources: Report of Consul General Robertson, Oct. 24, 1918; Review of the River Plate, Aug. 9, 1918; Daily Review of the Foreign Press, Nov. 27, 1918. 2 $55.20 per ton in bulk; $56.05 per ton in barrels belonging to the buyer; $57.32 per ton in barrels belonging to the Government. » Pitman's Encyclopaedia, Vol. I, p. 100. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 61 to Maquichao will be established. A decree, dated May 15, 1917, was issued giving the management of the local Government railroads the power to invest $16,800 for the purchase of native coal to be taken from the Epupen coal-mining properties. Senor Enrique M. Hermitte, Director of Mines and Geology of the Ministry of Agriculture, stated that early in 1917 coal mines were found in the Province of Santa Cruz. The samples of this Santa Cruz coal indicate contents of volatile matter, fixed coal, and ash that will bear comparison with the best European fuel. Owing to the failure of the Government to appropriate funds, the economic aspects of the Patagonian coal deposits have not been studied. Before the war the manufacturing plants, the tramway and lighting plants of the large Argentine cities, and especially the extensive rail- way system depended upon imported coal for their maintenance. More than 95 per cent was furnished by Great Britain, because its ships departing to obtain the grains could well afford to offer low rates on the coal rather than leave in ballast. The following table shows the decreased imports of coal, and, since the domestic output is very small, the table indicates the reduction in consumption forced upon Argentina by the war: Imports of Coal, 1912-1918. Countries of ori- gin. 1912 1913 1914 1915 1916 1917 1918 (3 months.) Germany Metric tons. 56,450 4,759 115,901 3,499,989 30,857 Metric tons. 9,713 2,185 56,206 3,977,650 524 Metric tons. 4,766 Metric tons. Metric tons. Metricians. Metric tons. Belgium United States United Kingdom . 169,786 3,242,519 4.455 1 651, 747 1921,969 I 327, 133 159,811 Other countries. . . Total 3,707,956 4,046,278 3,421,526 2,543,887 1,884,781 707, 712 138,171 y » Figures from United States reports. If these figures are subtracted from the totals, the remainders are within a few thousand tons of the imports from the United Kingdom. At the beginning of 1917 the coal situation was serious; the prices were quoted. at about $31 per metric ton of 2,204 pounds, and they rose by the middle of June, 1918, to $50. This produced a serious state of affairs for the railroad industries and the other domestic needs. Unjust speculation has gone on in other fuels, i. e., charcoal, firewood, and petroleum. Shortly after the end of 1917 charcoal sold for $50.95 per ton, rising later to $55.20. At the beginning of 1917 firewood was listed at $9.76 per ton, and in the latter part of 1918 the price jumped to $33.97. Petroleum, shortly after the war began, brought $10.62 per ton, while in July, 1918, it had risen to $55.20, sold m bulk, and $57.32, sold in barrels. Radical changes must have taken place within the Republic in order to adjust conditions to the decreased fuel supply. Since the undeveloped coal mines are removed from means of transportation, strenuous efforts were made to develop the oil fields and facilitate the lumbering of the northern forests. But the shortage was so enormous that the Allies feared that food supplies could not be moved to the coast cities for shipment. The agreement proposed in the autumn of 1918 provided coal allotments to the South American countries. Argentina was to receive 1,000,000 tons from Great 62 ECONOMIC POSITION OF AKGENTINA DUKING THE WAR. Britian, the greatest purchaser of its products. On the other hand, the United States, who has been sending so many ships for Chilean nitrates and BraziHan rubber and coffee, was assigned to furnish assistance to these countries. With the resumption of normal con- ditions heavy coal imports will again reach Argentina from Great Britian. As our imports of Argentine meats and wool increase the United States is likely to obtain more and more of this coal trade. The outbound vessels will prefer to carry coal at low rates rather than to go in ballast. It will therefore probably be a good many years before the coal resources of Argentina will be extensively exploited. WOLFRAM. Practically the entire production of Argentine wolfram is exported. In 1917 the exports amounted to 2,175,119 pounds, valued at $816,- 623. This represented an increase over 1916 of 498,749 pounds, but a decrease in value, on account of lower prices, of $198,149. In the first six months of 1918 there were exported 862,987 pounds of wol- fram, of a value of $299,425. All of this wolfram went to the United States or to the other allied countries. The above values are given in terms of United States currency, quoted from a report by Consul General Robertson made in October, 1918. MICA. Most of the mica produced in Argentina has been exported to the United States, the amount having increased yearly. In 1916 a quantity of 11,257 pounds, at a value of $3,746, was exported; it was increased in 1917 to 154,305 pounds, at a value of $41,007. In the first six months of 1918 shipments of 261,228 pounds were made, at a value of $71,569. The exploitation of mica in Argentina does not constitute an es- tablished mdustry, but is made by many private individuals, accord- ing to the fluctuations of the market. An increasing interest in the production of this mineral is very noticeable, and it is known that the supply is abundant, especially in the Provinces of Cordoba, San Luis, and San Juan. The mica shipped to the United States is both clear and spotted, laminated, and beveled. The iron which has been found in com- position with the mica would render it prone to explosions if used for electrical purposes. One of the Buenos Aires exporters, in September, 1917, was pre- pared to supply for export to the United States sheet mica up to 11,000 pounds per month, placed on the dock alongside vessel. The sheets varied in size from 5 to 47 square inches, with prices per sheet ranging accordingly from $1.70 to $8.30 (United States currency) for the clear mica and from $0.58 to $5.93 for the spotted. The best quality did not contain iron, and any spotting was due to vegetable action. The price of mica increased from 25 to 30 per cent, owing to the fact that four or five German houses collected and held the mica in reserve for the purpose of preventing its exportation. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 63 OTHER MINERALS. Other minerals and mineral products found in Argentina are gold, silver, copper, iron, lead, tin, asphalt, granite, marble, kaolin or China clay, lime, borate of lime, onyx, sulphur, salt, rock crystal, bismuth, borax, antimony, gypsum, and nitrates. These minerals have been exploited to a very small extent, principally because of the lack of transportation facilities, railroad construction having been largely centered in the agricultural districts. Qrahh. No |l. ARGENTINA . IMPORTS AND EXPORTS OF MINERALS AND MINERAL PRODUCTS, I913-MARCH \$\&. BY YEARS. TONS (000) 3900 525-0 2600 1950 1300 650 \ \ I9»5 \ -V \ T \ \ -V \ n V" 1914- 1515 1916 1917 I9I8 The value of gold produced in 1900 was $75,000, and that of silver $200,000. 124236°— 20 5 64 ECOITOMIC POSITION OF ARGENTINA DURING THE WAR. The principal Provinces of Argentina and the minerals found in each are as follows : Minerals in the Ten Principal Provinces. Provinces. Existent minerals and mineral products. Catamarea LaRioja.. SanJup.n. San Luis . . Salta , Cordoba.., Tucuman. Mendoza.. Jujuy Neuquen.. Gold, silver, copper, lead, iron, salt, bismuth, antimony, and mica. Gold, silver, nickel, tin, coal, rock crystal, salt.cobalt, alum, topaz ,and marble. Gold-bearing q-uartz, silver, copper, coal, antimony, iron, lead, sulphur, salt, lime, gypsum, black marble, slate, granite, and arnianthus. Gold, sulphur, salt, lead, copper, iron, antimony, marble, manganese, wolfram, onyx, and lime. Auriferous quartz, argentiferous galena, silver, copper, salt, lime, coal, lignite, and petroleum. Lime, marble, salt, talc, china clay, gypsum, Iceland spar, fluorspar, mica, beryl, gold, silver, copper, lead, iron, coal, salt, manganese, wolfram, onyx, porphyry, and alabaster. Silver and copper. Copper, silver-bearing galena, gold-bearing quartz, slate, marble, coal, ala- baster, antimony, sulphur, asbestos, iron, rock crystal, onyx, salt, asphalt, and ijetroleum; also mineral springs. Gold, silver, lead, copper, borax, salt, borate of lime, lignite, and petroleum. Gold, silver, copper, iron, lead, coal, marble, lime, salt, sulphur, and petroleum; also mineral springs. Location of the Ten Principal Minerals. Minerals. Location according to Province or Territory. Petroleum Salta, Mendoza, Jujuy, Neuquen, and Chubut. Wolfram San Luis and Cordoba Mica Gold Catamarea, I^a Rioja, San Juan, San Luis, Salta, Cordoba, Mendoza, Jujuy Neuquen, Tierra del Fuego, Santa Cruz, Chubut, and Misiones. Catamarea, La Rioja, San Juan, Salta, Cordoba, Tucuman, Mendoza, Jujuy, Neuquen, Los Andes, and Misiones. La Rioja, San Juan, Salta, Cordoba, Mendoza, Neuquen, and Misiones. Silver Coal Iron Catamarea, San Juan, Mendoza, Jujuy, Neuquen, Los Andes, and Misiones. Marble Lead Catamarea, San Juan, San Luis, Cordoba, Jujuy, Neuquen, and Misiones. TRADE IN MINERALS. Argentina's exports of minerals and mineral products play a very- small part in its foreign trade. Imports prior to the war were large, consisting largely of coal. Graph No. 11 shows the changes in trade in minerals during the war. Exports of Minerals and Mineral Products, 1913-March, 1918, Minerals and countries of destination. 1913 1914 1915 1916 1917 1918, Jan.- Mar. Antimony Metric tons. Metric tons. Metric tons. Metric tons. Metric tons. 3 Metric tons. Chalk: Chile. . 1 8 145 90 841 Brazil Paraguay 34 278 49 3 i Uruguay... Germany Total 312 53 1,084 1,032 1,842 240 Copper ore, with gold and silver. . . 42 Source: El Comercio Exterior ArgentiBO, 1913-1918. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 65 Exports of Minerals and Mineral Products, 1913-March, 1918 — Continued. Minerals and countries of destination. 1913 1914 1915 1916 1917 1918, Jan.- Mar. Copper ores: Metric tons. 131 164 Metric tons. Metric tons. 67 Metric tons. Metric tons. Metric tons. United States TTnitfid Kingdom 4 Total : 295 90 6 f 71 75 145 343 410 18 Copper, in bars: United States Lead ores: France 178 Lead and silver: United Kingdom Lime: Chile 13 10 1 15 7 Bolivia 3 4 10 6 7 1 12 2 Brazil Paraguay Uruguay Total 23 - 22 46 177 76 15 Lime, borate of: Germany 626 160 93 55 113 150 310 40 Belgium United Kingdom 150 43 Uruguay Total 934 613 193 86 25 Marble onyx: Belgium 348 3 141 46 8 Brazil 3 France Uruguay 18 3 2 Chile Total 369 195 8 11 29 60 Mica: Germany 1 2 3 1 Belgium Unitftd Kingdom- - Total 6 1 5 70 34 Petroleum, crude: United States 8 2 ! 1 16 Netherlands Paraguay United Kingdom Sweden Uruguay Total 28 69 206 255 Quartz: Germany 5 10 Salt, coarse: Brazil 7 6 123 134 Uruguay 25 Paraguay 99 Total 25 106 263 5,036 23,040 .685 .4 .5 5 6 299 Fine salt Silver ores 1 Silver, in bars Tin ore: Germany 1 9 Wolfram: Germany 536 392 2 United Kingdom United States 158 Total 536 63 394 158 760 987 100 210 Zinc: Belgium Grand total... 2,659 1,390 1,815 7,748 27,682 7,166 66 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Imports of Minerals and Mineral Products, 1913-March, 1918.^ [Totals in long tons.) Minerals. 1913 1914 1915 1916 1917 1918, Jan.- March. Aluminum: Ingots Bronze: Powder for lithographing Chalk Coal Copper and bronze: Ingots and sheets. Gold: Grains, paste, dust Sheets for gold plating Iron: Bars and small plates Galvanized Ingots and sheets Plates Lead: Ingots and sheets Plates Mercury Metal: Antifriction Petroleum Silver: Bars German: Plates Sheets for plating Steel: Ingots and sheets Tin: Ingots and sheets Tin plate: Crude Cut for wrapping Zinc: Ingots and bars Sheets, smooth or rough Sheets for engraving For wrapping 19 11 2,305 4,046,278 1,190 10 13 1,271 ,421,526 823 2,543,887 367 2 12 759 1,884,781 412- TOOA Not listed 91, 198 186,576 8,202 -'1209 191,378 1 35 6,854 596 15,228 1,635 555 2,850 87 38 t88o 38,579 41,609 2,452 51,006 8,337 6 2 256 161,462 1 26 8,492 406 8,886 1,660 397 995 43 12 TWO 14,041 40, 657 2,708 15,315 7,159 1 4 103 306,955 4,365 1,127 17,573 7,060 458 63 2 19,924 14,809 1,645 18,077 8,400 :tthjt> 7 206 304,115 1 1 Toins 1,750 726 20,463 7,757 4 287 21 474 707, 712 311 212,215 18,438 8,200 3,173 12, 775 5,222 136 310,027 1,214 1,564 21,086 10,484 'Ik 51 T*S0 131 138, 171 63 22,386 1,441 1,514 2,543 1,051 24,250 104 3,306 5,196 Source: El Comercio Exterior Argentino, 1913-1918. 2 Grams. VI. MANUFACTURING INDUSTRIES. DEVELOPMENT BEFORE THE WAR. Except for meat packing, flour milling, the dairy industries, and sugar refining, the manufactures of Argentina are comparatively trifling and are quite insufficient to meet local demands. To meet the needs of the Kepublic, immense quantities of foreign-made goods have to be imported. A study of Argentina's trade reveals clearly at the outset the general economic position of the country as an exporter of foodstuffs and an importer of many types of manufac- tured articles, such as clothing, machinery, railroad equipment, and hundreds of other items of manufactured goods. The reasons for this situation lie in the general development of the country. Argentina is a comparatively sparsely populated coun- try, with great agricultural resources which yield good profits upon comparatively short investments. Capital tends to be attracted to investments yielding the largest, surest, and quickest profits. As long as agriculture and stock raising combine to be as profitable as they are the greater part of Argentine capital and foreign capital attracted to that country will be invested in those resources rather than in manufacturing. Manufacturing industries are not entirely lacking, however, in Argentina, and a considerable development has taken place during the last quarter of a century, as shown oy the following table of figures quoted from the industrial census of 1895, of 1910, and of 1913: Development of Argentine Industries.^ [Values in United States dollars.] Years. Number of estab- Ush- ments. Capital tnvested.2 Production or annual sales. Raw material consumed. Horse- power used. Number em- ployed. 1895 22,204 31,988 48,779 $91,367,000 309,226,232 759,756,475 $521,708,408 791,260,627 0) $302,671,312 461,881,333 27,227 202,816 678,757 145,650 329 490 1910 1913 410^201 1 Source: Industrial census of Argentina. 2 Values converted from Argentine pesos at $0.3216 for 1895, and at $0,425 for 1910 and 1913. 3 Figures not available. The industries of Argentina (census of 1913) are listed in the follow- ing table, showing the importance of the various lines of manufacture. The values in Argentine paper currency have been converted into United States currency at the rate of 42.5 cents. 67 68 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Industries. Number of estab- Ush- ments Capital invested. Total pro- duction. Raw material consumed. Horse- power used. Meat-packing houses Flour mills Sugar refineries Preparation of wine Bakeries Foimdries and metal works. . . Cigarette factories Dairies, cheese factories, etc . . . Tailors Leather shoes Sawmills Extracts of tarmin and prep- aration of firewood. Jute and cotton sacks Lithographers and printers — Breweries Carpentry, painting, and horse- shoeing. Liquors Tanneries Woodworking Cotton and woolen mills Furniture, trunks, and tapes- try Leather goods Brick kilns Preparation of yerba mate Soap factories Clothing, etc Chocolate and candy Wagons and carriages Macaroni and pastes Ice and aerated waters Rope and cloth shoes Match factories Crackers and cakes Jewelry, watches, etc Hats Paper and cardboard mills Alcohol Dressmakers Tinsmiths, etc Preparing and refining oil Fishing Coffee roasters, etc .• Cigars and tobacco Confectionery Glass factories Gas fitters, etc Cleaners and dyers Artistic ironwork Petroleum refineries Washing wool Ore smelting Preparation of salted hides Construction companies Paving companies Light and power companies. . . Grain elevators Other Total 13 401 44 4,317 3,242 1,177 55 8,161 3,083 231 305 24 938 29 4,681 736 81 1,058 986 953 31 294 448 299 1,270 332 742 241 16 207 769 92 11 187 674 974 22 4 54 179 185 16 353 124 35 1 10 29 8 197 14 305 19 6.971 $39,521,561 36,878,953 51,055,362 77,658,543 13,634,840 25,389,184 13,552,383 42,833,791 14,365,803 9,126,084 8,940,018 33,212,346 8,970,475 12,338,093 13,702,876 9,970,046 8,984,383 8,396,155 4,843,097 9,155,267 9,242,590 5,349,305 7,545,538 3,137,775 4,111,091 5,698,993 4,672,106 6,437,754 4,601,288 7,973,585 3,714,781 975, 163 2,800,278 4,198,454 2,671,231 4,922,945 3,935,447 2,474,434 1,930,730 1,759,411 1,957,295 1,537,225 1,579,330 1,493,698 2,479,875 2,215,845 1,478,283 987,308 3,187,500 673, 731 8,741,770 68,425 10,587,395 3,853,914 127,875,724 8,641,962 47.173,084 $114,004,927 63,282,112 59,754,304 36,248,745 34,709,770 24,987,634 22, 471, 474 22,439,524 21,554,202 20,884,830 19,220,005 17,778,903 16,200,466 15,409,435 15,163,839 15, 150, 120 13,775,247 13,655,719 12,503 539 10,722,594 9,771,501 9,746,658 9,383,312 9,328,448 9,123,774 8,772,495 8,761,916 8,519,085 8,261,764 7,290,659 7,133,657 5,951,700 4,451,572 4,098,250 3,662,194 3,616,611 3,364,134 3,300,508 2, 878, 153 2,750,706 2,416,961 2, 300, 725 2, 162, 705 2,024,445 1,807,950 1,803,173 1,455,873 1,434,744 1,062,500 1,038,545 744,987 209,950 $98,109,228 52,038,119 34,438,136 17, 449, 659 19,236,188 12,851,834 6,553,601 12,565,114 14,750,637 11,800,976 14,059,505 13,739,672 5,380,739 3,366,630 6,257,618 7,621,173 8,933,491 6,674,605 5,993,741 3, 798, 159 5, 968, 603 2, 126, 196 5,327,953 6,340,394 4,420,091 6,108,327 3,698,430 5,792,369 2,772,847 3,892,221 1,508,819 2,369,431 1,922,813 1,825,152 1,914,971 128,775 1,110,719 1,053,603 1,987,128 10,625 1,542,618 1,111,775 1,126,378 537,838 702, 638 201,358 622, 541 637,500 748,255 4,250 169,788 6,397,755 $,056,876 62,487,327 33,614,817 24,287 26,531 57,511 14,651 6,514 14, 161 1,191 3,317 34 2,388 13,514 12,874 1,248 2,985 8,680 3,970 1,518 5,416 6,906 6,887 2,206 326 2,090 1,128 964 657 2,337 3,882 4,216 7,965 1,097 610 588 43 1,298 10,860 1,456 15 133 969 17 191 95 113 269 25 1,031 242, 265 885 797 55 565 140 391,959 6,137 18,479 48,779 759,756,475 791,260,627 461,881,333 678,757 Source: Commerce Reports, July 17, 1918. MANUFACTURING INDUSTRIES DURING THE WAR The diverting of the manufacturing productive j)ower of the war- ring nations to war activities and the consequent increase in prices and decrease in supphes of practically all of the manufactured com- modities normally imported oy Argentina, together with the shortage of ships, forced its imports to decrease greatly during the war. The result to be expected was a tendency to increased domestic produc- tion of articles which it manufactured in limited quantities and to the establishment of new enterprises for producing others formerly ECOKOMiC POSITIOK OF ARGENTINA DURING THE WAR. 69 entirely imported. Lack of capital, iron, and domestic coal were the chief hindrances to the growth of manufacturing industries. Other materials necessary in manufacturing also had to be imported. Argentina, however, found it cheaper to manufacture some articles during the war that were imported before the war. It also exported to the warring nations large quantities of woolen blankets, leather saddles, boots and shoes, alcohol, etc. The manufacture of woolen blankets and boots and shoes increased several hundred per centv during 1917 and 1918, while the alcohol industn^, which had almost entirely disappeared because of the high cost of manufacturing, has revived and alcohol is one of the important exports of the country. When the source of supply of manufactured goods was cut off by the war the Republic had to exploit its own resources. Sulphate of aluminum (concentrated alum) is a good example; it is now being manufactured locally by the Federal Government imder the direction of the Ministry of PubHc Works and is used extensively in the pubHc water-filtering plants. It was formerly almost exclusively suppHed by Germany. Sulphate of aluminum is found in the Province of Buenos Aires and the Territory of Pampa, and the industry is capable of supplying the nation's annual requirements, amounting to about 10,000 tons, at a cost less than it was formerly customary to pay to foreign manufacturers. The manufacture of algarroba dye material is also a new industry which was started in 1918. It is used locally and is exported especially to the United States. Since 1914 a number of new quebracho-extract plants have been established, thus greatly increasing the output. Tables, chairs, bathtubs, kitchen utensils, and toys are made in Argentina. Although they are not as finished as the imported, yet they are as strong. Cheaper qualities of tumblers, jugs, and lamp chimneys are manufactured. Statistics of industrial development are not available for the war years, the census of 1913 quoted above being the latest source of complete information. It is difficult to determine the extent to which Argentina has developed industrially as a result of war condi- tions, and opinions vary considerably. Many beheve that the development has been great since the year 1913 and that Argentina's production of manufactured articles has increased to such an extent that foreign countries wiU find competition with domestic goods a strong factor to be met in regaining Argentine markets for their exports. The report of the Director General of Statistics for 1917^, on the other hand, presents an analysis of Argentina's imports during the war years,' from which he concludes that Argentina has not attained industrially as much as is generally supposed. The analysis, tables, and a chart are here reproduced for what they are worth, since they present an interesting study of Argentina's imports and since they are the only data available which throw Hght upon the extent of industrial development of the country during the war. 1 Intercambio Econ6tnico de la Repiiblica Argentina, 1910-1917; el Comercio Exterior Argentino en 1916 y 1917, Boletin 176, pp. 93-100. 70 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. The following classification of imports is first given, in order to divide those which indicate industrial expansion and those which indicate the consumption of foreign goods:" Imports into Argentina for 1913-1917, by Value, Classified According to Their Economic Significance.^ [Nominal values in gold pesos.] Groups of articles. Years. 1913 1914 1915 1916 1917 Necessities: Foods in general, textiles, drugs, paper articles, leather, furni- 165,679,129 31,528,397 42,857,702 72,382,710 108,904,604 115,901,055 17,565,506 36,434,799 37,380,480 64,536,060 86,202,307 13,396,296 44,955,242 48,662,134 33,676,754 106,391,992 15,923,307 2 25,043,691 43,083,309 26,967,023 101,755,895 13,366,968 2 16,134,496 35,830,990 17,378,699 Luxuries: Jewels, precious stones, per- fumery, silks, furs, tapestries, to- bacco and Havana cigars, fine wines and liquors, preserves, etc Materials supplying light, heat, and power: Coal, petroleum, and petro- leum products. Materials for the maintenance of indus- tries: Articles for agriculture and stockyards; seeds; breeding stock; textile materials, woven or raw; in- dustrial oils; machine supplies; lumber, paints, etc Materials for the expansion of indus- tries and establishment of new enter- prises: Materials for railroad con- struction, industrial installations, etc Total 421,352,542 271,817,900 226,892,733 217,409,322 184,467,048 1 Source: El Comercio Exterior Argentino, Boletin 176, p. 94. 2 Applying in 1916 and 1917 estimated values which held in the former years up to 1916, these amounts increased to 39,598,801 gold pesos and 31,434,030 gold pesos, respectively. Note.— The values, "nominal values," here used are based on the price schedule of the tariff of 1906, and changes indicate changes in quantity and not in true values. (See note, p. 6.) ^v Imports \ /TvV""""^ /expansion NECESSITIES \ / 0^\\\ 'NDU«TI?I^\ \ NCCEssmcs \ y/ii __J,---^ 1917 — 1 OF HFC / 9^j^67^0A9 GOLD Prsos I9I2« 38-4,85:3,-16 T Goi-O PESOS HOTr: VALUES ARE NOMINAL AND CHAN6£5>THe|fEFoRe, INDICATE CHAMG-rs tfl OoANTlTlES. The general tendency of all these groups to decrease should be first noted. The grapt ^ shows more clearly that the articles which are classed as those used to expand or establish industrial enterprises 1 Copied and translated from El Comercio Exterior, Boletin 176. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 71 have decreased both m actual amount and considerably in percent- age of total imports, while imports of necessary articles for consump- tion, though they have been cut considerably during the war, con- stituted a much larger percentage of total imports in 1917 than in 1912. Although at best the division of all imports into such a classi- fication can only approximate the truth, the analysis is probably accurate enough to show at least that the difficulties of importing goods during the war must have been a hindrance as well as a stimulus to mdustrial development, since many materials necessary to greater development had also to be imported. Tables giving further details regarding three of the groups in the above classification are given on page 93 in the section dealing with the nature of foreign trade during the war. Only the results of a complete mdustrial census can determine the development of manufactm-ing industries during the war. Un- doubtedly many industries have increased. Whether the increase was beyond the normal tendency and whether the stage of develop - naent reached will be maintained with the return of normal con- ditions it is difficult to foretell. Undoubtedly the tendency, apparent before the war, of manufacturing to increase will continue m the future, in spite of the difficulties of obtaining capital, fuel, and iron. It is certain, however, that agricultural and animal products will be the dominating sources of economic wealth and the field for enter- prise for many years to come. VII. TRANSPORTATION. GENERAL SITUATION. Argentina is a large country, with few people and an abundance of bulky natural resources, such as grains, cattle, and lumber. Con- ditions such as these require adequate transportation in order to real- ize rapid and full growth. In the populous central section of the Re- public natural waterways do not exist. Railroad development in that region has therefore been forced into rapid growth. The char- acteristic feature of the system lies in the importance of freight traffic and the heavy tonnage during certain seasons -of the year. RIVERS AND HARBORS. In the southern or Patagonian Territories many rivers, formed by the melting snows of the Andes, flow eastward through sheep-grazing regions until they enter the Atlantic. Situated at the river out- lets are ports whose importance depends upon the richness of the hinterland grazing. Puerto Madryn, Puerto Gallegos, and Puerto Deseado are important ports of this type, whose exports consist mostly of wool. These ports are not adapted to large vessels. To aid in their development the Government has relieved them from customs duties until recent times. In central Argentina the Andean rivers lose themselves on the arid plains, practically no waterways existing in the northern part of the Territory of Pampa Central and the Province of Buenos Aires. These are rich sections, and railroad development has increased to a remark- able extent. Many of these big railroads are responsible for the development of growing harbors. Such a group of ports is found about JBahia Blanca, which is the terminal of the Great Southern Railway, with excellent facilities for docking ships and handling grains. Distant only a few miles is the new harbor of Port White, with its electrically operated cranes and large grain elevators, and Puerto Mihtar, the naval base, where ship repairs are made. In the northern Provinces the great waterways rising in the tropical regions imite to form the River Plate and offer profitable arteries for trade. This huge estuary, 25 miles across at the junction of the Parana and Uruguay, widens out to 217 miles at its meeting with the ocean. Montevideo and Buenos Aires, 180 miles apart, have developed as a result of favorable conditions. Buenos Aires, with a trade of approximately $500,000,000 (United States currency) in 1913, handles an average of 60 per cent of the foreign trade of the Republic. In the value of its forei^ business it is the seventh world port of importance, and in the Americas is surpassed only by New York City. The growth has developed in spite of some adverse conditions. The tides and storms affect harbor shipping. A sand bar, formed across the mouth at the point where the waters of the ocean force the river to slow down, must be kept open by a dredged channel. The water is also shallow in the immediate vicinity of Buenos Aires. 72 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 73 Congestion has developed, due to the concentration of the foreign trade in the one port. To reheve this, La Plata, 30 miles distant, has come into existence and to-day is the third port in Argentina' in the value of foreign business transacted. The Parana waterway is navigable for 200 miles for vessels of 6,000 tons. The greatest port is Rosario, 186 miles up the river. Ocean-going vesseE enter Eosario, and several lines from New York advertise regular direct sailings to this port. Forest and agricul- tural products are exported. Other Parana ports of importance are Santa Fe, San Nicolas, and Zarate. RAILWAYS. Argentina is one of the many regions where nature offers cer- tain conditions conducive to railroad growth, at the same time presenting other factors which tend to hinder progress. The actual development depends upon man's ability to utilize the natiu-al advantages and overcome the drawbacks. The vast stretches of level land, especially in central Argentina, the absence of spring freshets with attendant washouts, and the existence of bulky freight in the form of grains and live stock seem to form a combination especially conducive to rapid railroad exten- sion. The moving of these heavy crops comes at one time in the year, because producers have provided no means of storing and conserving the resources at the place of production. The raih-oads are, therefore, severely taxed during short periods, and the prob- lem is the maintenance of sufficient rolling stock for this Dusy season. Numerous complaints are voiced both by the Argentine shipper and the British-owned carrier. This phase of the railway problem is much more acute than in the United States wheat belt, because the people are scattered and their standard of living calb for fewer wants, so that the inbound hauls bring relatively small' returns. Passenger traffic is also relatively unimportant. Another seeming drawback to railway development is the necessity of pur- chasing coal and railway materials abroad. A study of the following table, listing railroads open for traffic, shows that the Argentine railroads are controlled by the Govern- ment and by private companies. The larger railroads are held under private ownership. A brief outline of railway development is necessary in a study of present conditions. During the decade following 1850 a short line was constructed from Buenos Aires, the material employed being second-hand; the rolling stock required a 5 foot 6 inch gauge. This explains in part the diversity in the gauge among the rauroads. The narrow gauge (2 feet 6 inches) is employed in the remote regions for hauling sugar cane, forest products, etc. These various widths cause con- fusion, because the rolling stock of the different railways is not inter- changeable. Great inconvenience has been caused in the Cordoba- Rosario-Buenos Aires districts, and steps have been taken to stand- ardize the gauge. 74 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Railways op Argentina Open for Traffic.^ Owner- ship. Gauge. Open to traflic. Railways. January, 1911. January, 1912. January, 1913. PRINCIPAL BAIL-WAYS. Central Norte State-... .do . . . Meter Kilo- meters. 2,136 1,355 Kilo- meters. 2,290 1,902 480 1,752 1,166 1,307 291 291 86 86 180 56 269 1,091 1,073 632 797 5,449 2,594 2,414 1,195 1,450 4,722 23 34 9 30 15 20 6 21 45 59 32 114 44 28 Kilo- meters. 2,565 Argentine del Norte .do 1,915 Chaco railways .do . do 556 Cie. Fr. de la Province de Santa Fe do 1,752 964 1,289 291 291 86 86 180 1,709 Cie. Gle. de la Province de Buenos Aires Cordoba Central Railway do do 1,267 1,348 Cordoba Central Railway, Buenos Aires Exten- sion do 298 Cordoba and Rosario Railway do 289 Rafaela Steam Tramway Co .do 86 Central Railway of Chubut . do 86 Transandine Railway (B. A. & P. Ry.) do 185 State.... Standard 131 Buenos Aires Central do 269 1,029 911 290 797 4,978 2,349 2,391 1,161 1,396 4,280 23 34 9 30 15 20 5 21 45 59 32 114 44 28 269 Entre Rios Railway do 1,175 Argentine North Eastern do 1,074 740 Patagonian railways State.... 6ft. 6in. (broad) do .... Rosario Puerto Belgrano 797 B. A. Great Southern .. do 5,608 2,669 B. A. and Western Railway do B. A. and Pacific Railway.. do 2,491 B. A. and Pacific Railway (B. B. N. W. Ry.). . B. A. and Pacific Railway (Argentine Great Western Ry.) do do 1,321 1,530 4,751 23 Central Argentine Railway do SECONDARY RAILWAYS. Ferrocarril de la Plata . . Standard Meter CnloniaOcampn. 34 Vias de Cataiina (Catalina Warehouses & Mole Co ) Broad . 9 F. C. de Reslstencia 75 cm 30 Tranvia E16ctricade Quilmes Standard 3 ft. 6 in . 15 Florencia 4 Piracua (f orestal) . 20 Vias del Puerto de Buenos Aires (Buenos Aires Port Rys.) State.... .do Broad . 5 Via.'? del Puerto Militar .., .do 21 Po Tirol Col. Lucinda . . Private.. ...do 2 ft.- 45 Colonia."? T>as Palrnas , ... .do 59 .do . . . 2ft. 6in 32 Piraguacito Guillermina (forestal) . . .do . 75 nm 114 Resistencia Col. Dufaur (forestal) Chaco Norte Branch . ...do.... •do ... do 44 Meter 28 Total State railways 3,780 24,503 25 454 5,360 26,215 25 454 5,907 Total companies 26,953 Secondary railways: State railways 25 Sponndary railways: companies ....,.,... 454 Grand total 28,762 32,035 33,319 » Source: The South American Yearbook, 1915, p. 83. See Commerce Reports, Apr. 18, 1919, p. 419. With one exception, the railways with the largest mileage are privately controlled. Halsey ^ estimates as follows: The value of the privately owned railways is estimated at 1,219,846,313 gold pesos, of which amount some 1,(X)0,000,000 pesos consists of British investments. The fol- lowing table lists the privately owned railways, classified by nationality of ownership, and gives the capitalization of each company. The figures are quoted in Argentine gold (1 gold peso=$0.9648) and are those given in the ofl&cial 1917 reports of the com- panies. English: Gold pesos. Central Argentine 286, 097, 200 Buenos Aires Great Southern 265, 777, 336 Buenos Aires Pacific 260, 877, 735 1 Commerce Reports, Apr. 18, 1919. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 75 English— Continued. Gold pesos. Buenos Aires Western 144, 716, 319 Cordoba Central 101, 653, 645 Entre Rios 40, 505, 538 Argentine North Eastern 31, 399, 716 Central of Chubut 1, 700, 322 French: Province of Santa Fe 52, 902, 878 General Ry. of Province of Buenos Aires 45, 335, 932 Rosario to Puerto Belgrano 30, 575, 937 Argentine : Buenos Aires Central 16, 893, 700 The prime purpose of the railway system is to carry domestic products to the exporting points and to distribute the imported goods throughout the Republic. Buenos Aires controls nearly 85 per cent of the imports and over 60 per cent of the exports ; therefore the biggest railroads extend from tnat center. Rosario and Bahia Blanca are secondary points of radiation.^ The Buenos Aires Great Southern, British owned and operating 3,792 miles, extends to the south and southwest of Buenos Aires through the Province of the same name. It controls special facilities for wheat handling at the export points in the vicinity of Bahia Blanca. The Buenos Aires & Pacific Railway has been one of the most adventurous roads in the country, branching out into the pas- toral land west of the Province of Buenos Aires. By a series of ab- sorptions it has acquired control of the transcontinental line running westward from Buenos Aires to the Chilean border. The Central Argentine Railway serves the northern and central Provinces, including the cities of Buenos Aires, Rosario, Cordoba, Santa Fe, Tucuman, etc. It carries the products of rich cereal and pastoral sections. The Buenos Aires Western Railway is the fourth in importance. It extends into the rich resources of Pampa and San Luis and hauls great quantities of freight. Other railroads of substantial mileage are the Cordoba Central (1,205 miles), Entre Rios (831 miles), Argentine North Eastern (752 miles), and the Government-owned road. Central Norte (3,046 miles). Argentina not only has the largest and best-managed system in Latin America but when compared with those in other countries it shows strength. World's Railroad Mileage.* Countries. Mileage. Countries. MUeage. United States 246,650 38,493 37,960 32,839 31,219 Austria-Hunearv 27,856 25,400 23,399 Germany Canada Russia in Europe Great Britain British India Argentina 22,160 France 1 Source: Statistics of the Director General of Commerce and Industnr of Argentina, ** Ai^entine Inter- national Trade," 1916, p. 47. Department of Agriculture Printing Ofnce, Buenos Aires. Of these 22,160 miles of railroad, which have not materially in- creased during the war, the Government controls 3,813 miles, or 17.2 per cent. The British manage about 14,000 miles, or 65 per 1 See map, p. 8. 76 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. cent, and the money invested approximates $1,000,000,000. The French are the next heaviest investors. They have built and now control three railroads in the northern Provinces, viz, the Province of Santa Fe (1,188 miles), the General Buenos Aires (790 miles), and the Rosario & Puerto Belgrano (493 miles). The capital invested amounted in 1917 to $125,000,000. Argentine capital is interested in the Buenos Aires Central. The Republic has built and controls several lines. This policy is based on the fact that certain regions, rich in natural resources, are too inaccessible for the private companies to venture the heavy initial expenditures. Most of these roads are in the far north, where people are few but resources abundant. The Central Norte (3,046 miles), the largest State-owned railway, showed a deficit each year before the war. The Government plans to open up the Patagonian country in the same manner. RELATION OF GOVERNMENT TO RAILWAY EXPANSION. As in most undeveloped countries, the Government in the early days gave all sorts of guaranties to those who were interested in railway development. Land on each side of the right of way was offered so that profits might be later made for the companies by its sale. Frequently the Republic guaranteed a fixed per cent dividend on the capital invested; ' ' the companies carried guaranties of interest which were as high as 7 per cent. In 1895 the guaranties were relinquished by mutual consent and 4 per cent rescission bonds issued to the railways in payment thereof. Freedom from customs duties and taxes in general was still granted."^ In 1907 the Mitre Law was passed (the terms of which were not compulsory but were volimtarily accepted by most of the privately owned lines) defining the liabilities and privileges of the companies and exempting them from customs duties on materials used and from all State, provincial, and municipal taxation. Three per cent of their net profits must go. to the improvement of roads and bridges in their territories. This law did much to stabilize railroad management. The Entre Rios still operates under the terms of its original concession. In the early days, so eager was the desire for growth that pledges were given by the Government which later could not be redeemed. To-day the Republic grants no special privileges. If a railroad is needed in a remote region and the initial expense is heavy, the State undertakes the work, hoping eventually to repay the loss by the sale of adjacent land at enhanced values and knowing that its action will benefit the nation as a whole. The Government even goes so far as to strive to have new roads constructed, either parallel or at right angles to the established lines, so that competition may start and less profit accrue to foreign investors. The following is quoted from Commerce Reports, April 18, 1919: The pension law of 1913 provides that 3 per cent be deducted from the monthly salaries of employees and that a corresponding amount be paid to the pension fund by the companies, subject to certain exceptions — for instance, when the companies' profits fall below certain amounts. A new law was projected in 1915, but was satis- factory neither to the employers nor to the employees, and has never been passed. 1 Commerce Reports, Apr. 18, 1919. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 77 The railway companies have declared themselves willing to pay as much as 8 per cent of their wages sheet provided the workmen pay 5 per cent of their wages, the extra cost to the companies to be met by increased rates. The workmen are holding out for an increase in the amounts of the pensions to be received and for a reduction in the term of service necessary to procure a pension. IMPORTS OF RAILWAY SUPPLIES. The following is also quoted from Commerce Reports, April 18, 1919: PRE-WAR IMPORTS. The administrative offices of the large English companies are, without exception, situated in Buenos Aires, but the executive officers are English and prefer to make their purchases in England when possible. This fact explains the predominant place occupied by England among the countries sending railway equipment to Argentina during the five-year period (1909-1913) immediately preceding the war. The following table gives the total amount of railway supplies imported from 1909 to 1913 by countries of origin. Since the tariff valuation is a fixed amount for each article, increase or decrease in these figures represents a difference in the amount of imports and not price fluctuations. Countries of orifnn. Locomo- tives. Passenger cars. Freight cars. Rails, steel. Rails, used. Other material. United Kingdom Number. 612 60 525 69 15 16 Number. 372 160 26 27 6 8 Number. 10,957 2,016 1,576 7,230 '688 72 Metric tons. 426, 124 198, 830 289,889 80,246 40,685 37,903 Metric tons. 161 Gold pesos. 26,924,577 1,075,661 2, 657, 117 2,685,042 754 469 United States Germany 1,340 Beigimn France 38 41 All other countries 236*609 Total 1,287 599 22,439 1,073,677 1,580 34,333,475 STEADY DECREASE IN IMPORTS DURING WAR. No detailed statistics for 1916, 1917, or 1918 are now available, but the following table, compiled from the official Argentine statistics for 1913-1917, demonstrates the continued decrease in total imports during successive war years: Year. Locomo- tives. Passenger cars. Freight cars. Rails, steel. RaUs,used. other material. 1913 Number. 234 189 29 30 2 Number. 98 69 28 I Number. 5,370 68 Metric tons. 156, 592 84,936 13,391 1,535 640 Metric tons. 29 13 21 25 14 Gold pesos. 5, (Ml, 415 4,116,622 1,690,786 1,261,908 822,065 1914 1915 1916 24" 28 1917 Total 484 206 5,490 257,094 102 12,932,796 PRESENT CONDITIONS. Since imports, not only of rolling stock but of miscellaneous supplies of all kinds, including raw materials, have been so greatly restricted for the past four years, the equipment of all the roads has become very materially depleted. Tlie Patagonian State railways are reported to be especially hampered by lack of equipment. The Entre Rios, according to the latest company report, is in the market for one or more new train ferries. The annual purchases of the Government railways are said to amount to about 5,000,000 paper pesos. All the companies report that, in view of high prices, the difficulty of obtaining supplies, and unsettled conditions in Argentina, pur- chases have been reduced to the minimum amount consistent with the maintenance of satisfactory service. 78 ECOITOMIC POSITION OF ARGENTINA DURING THE WAR. PLAN OF ARGENTINE RAILWAYS. The railways conform in general to the following plan of location: I. Lines radiating from Buenos Aires: (a) Northeast, the three links over which the international trains run from Buenos Aires to Asuncion, Paraguay. (6) North through Rosario, Corrientes, Tucuman, and Jujuy to La Quiaca, on the Bolivian border, and Embarcacion, near the Bolivian border. (c) Northwest to Cordoba and Tucuman. (d) West through Mendoza to the Chilean border. Connections are made at Mendoza for Santiago and Valparaiso, Chile. (e) Southwest to Toay. If) South to La Plata, Mar del Plata, and Bahia Blanca. II. Patagonian railways. The railways of the Pampas transport large quantities of grain and live stock. Oranges and semitropical fruits form an important part of the freight brought down from the northeast. Sugar is a leading item in the export freight of the Tucuman district and grapes and wine of the Mendoza section. Sheep and wool are the principal products of northern Patagonia and petroleum of the Comodoro Rivadavia region. ' Quebracho and firewood of all kinds have formed profitable and important parts of the local and through freight handled since the war by the lines penetrating the northern Provinces. THE RAILROADS DURING THE WAR. Railroad mileage remained practically constant during the last years of the war. In 1913 there were 20,805 miles; in 1914, 21,398; and in 1918, 22,160. The increase was caused by small extensions to the present systems. During the first years of the war the decreased exports resulted in the reduction of revenues. Then came the ina- bility to import railway materials and coal. In December, 1918, the Argentine Southern Railway reported an increased expenditure for coal in 1917 of $500,000. In order that the railroads might survive, the following increases were allowed in the freight rates, viz : October 1, 1915, 10 per cent increase; November 20, 1917, 22 per cent increase ; May 1, 1918, 10 per cent increase. The rates were 47.6 per cent higher in 1918 than early in 1915. One of the strongest factors causing this increase was the growing demands on the part of labor. A general strike was declared in Septem- ber, 1917, whicn extended beyond the railroad men to the public utilities and the shipping industries. The strikes varied in intensity, but the railroads with the increased freight rates were able to offer better wages and granted other concessions, such as the 48-hour week, promotion according to merit, and no dismissal without trial. These strikes were the forerunners of those which are tying up har- bor traffic in 1919.^ Following are three further statements quoted from Commerce Reports, April 18, 1914, which include statistics regarding railroad development, capital invested, and railway stocks, quoted from three sources. They snow the decrease in the business, receipts and capital invested, and the depreciation in the selling price of railway stocks during the war. With the return of normal conditions in shipping and in world trade railroad development will undoubtedly again make rapid progress. 1 Special reference: Investments in Latin America— Special Agent Series No. 169 (1918), Bureau of Foreign and Domestic Commerce. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 79 FINANCIAL OUTLOOK. The following quotations of railway stocks which are listed on the London Stock Exchange represent the high and low prices f of 1913 and the opening and cloeing prices for 191S. They show the very real depreciation in the selling price of these stocks since the war, but they show also that during the last year the movement has been appre- ciably upward. With a single exception, the closing price for 1918 is higher than the opening price. Name of company. 1913 1918 High. Low. Opening. 130 109 72i 128 109 71 112 100 59 92 64 39 54 39 llj 78 54 221 Closing. Buenos Aires Great Southern, ord Buenos Aires Western, ord Central Argentine, ord Buenos Aires Pacific, ord Central Cordoba, ord , Entre Rios, ord 72 73i 66 58i 17i 41 The following table gives the amount of gross revenue for the years 1916-17 and 1917-18, the percentage consumed in working expenses, and the dividends on ordinary stock, wherever it has been possible to obtain these details from published company reports: Name of company. Gross receipts. Per cent con- sumed in work- ing expenses. Dividends. 1916-17 1917-18 1916-17 1917-18 1916-17 . 1917-18 Central Argentine £5,246,626 5,734,141 4,421,368 2,504,939 1,565,292 636,526 297, 752 389, 100 22,317,330 £6,184,089 5,838,441 5,269,979 2,858,639 1,709,227 847,797 369,853 460,000 2 2,587,117 68.71 64.06 65.98 66.88 73.77 64.38 54.73 (0 85.02 73.94 76.16 65.80 75.68 75.16 62.32 55.05 84.80 82.77 Per cent. 1 4 Per ceru. 2 Great Southern 2 Pacific Buenos Aires Western 3 2 Cordoba Central Entre Rios Central of Buenos Aires 0) (0 Argentine Northeastern Rosario Puerto Belgrano 0> 6) 1 Figures not given. 2 Argentine paper pesos. The State railways usually show an annual deficit, but in 1915 and again in 1916 they showed a slight profit on the capital investment. No later reports are now available. A recent issue of the Review of the River Plate states that the Minister of Finance has been authorized to transfer the sum of 12,000,000 paper pesos to the Administrator of State Railways. One-half of this amount is to be utilized in canceling the outstanding liabilities of the administration and the remainder in the acquisition of materials urgently required for the State lines. It is understood that the transfer will be effected at the rate of 100,000 pesos a day. Capital Invested in Railroads, June 30, 1917.* Railroads. Dollars. Central Argentine (British) Buenos Aires Great Southern (British) Buenos Aires Western (British) Buenos Aires and Pacific (British) Argentine Great Western (British) Bahia Blanca and North Western (British) Villa Maria and Rufino (British) Argentine Transandine (British) Province of Santa Fe (French) General Railway Company of the Province of Buenos Aires (French). Cordoba Central (British) Buenos Aires Central (Argentine) Rosario to Puerto Belgrano (French) Steam Tramway of Rafaela (Argentine) Entre Rios (British) Argentine North Eastern (British) Buenos Aires, Ensenada and Southern Coast (British) Central Railway of Chubut (British) 286,097,200 248,227,900 144,716,300 119,548,500 63,314,600 50,809,800 5,748,100 11,751,600 52,902,900 45,207,000 100,510,300 16,893,700 30,575,900 470,600 40,505,500 31,399,700 4,415,600 1,700,300 Total 1,254.795,500 276,083,798 239,539,924 139,651,229 115,364,302 61,098,589 49,031,457 5,546,917 11,340,294 51,051,298 43,624,755 96,992,440 16,302,420 29,505,744 454, 129 39,0S7,807 30,300,711 4,261,054 1,640,790 1,210,877,658 > Source: Ernesto Tornquist & Cia., "Business Conditions in Argentina, p. 19. 124236°— 20 6 Report No. 142 (Aug. 31, 1918), 80 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Railway Development and Effect of War.^ [United States currency.) Year. 1880 1890 1900 1910 1911 1912 1913 1914 1915 1916 1917 Length (miles). 155 1,663 5,861 10,292 17,392 19,619 19,793 20,805 21,398 22,037 22,163 22,172 Capital in- vested. $5,191,602 60, 760, 729 309,864,097 522,620,476 868,914,999 1,046,639,000 1,081,002,000 1, 168, 108, 694 1,193,437,716 1,282,861,440 1,286,683,840 1,377,409,920 Number of passengers. 747,684 2,751,570 10,069,606 18,296,422 59,014,600 67,457,432 73,212,084 80,279,940 81,745,535 67,401,000 64,829,000 57,595,700 Freight (metric tons). 71,571 772, 717 5,420,782 12,659,831 33,606,626 32,338,263 38,869,804 43,038,082 35,378,830 35,655,700 36,630,600 28, 792, 300 Receipts. $543,424 6,330,802 25,137,326 39,952,301 107,058,457 112,359,045 125, 160, 672 137,255,167 114,595,120 116,783,335 121, 173, 892 114,830,658 Expenses. $423,597 2,964,659 16,969,992 22,902,108 63, 622, 090 69,095,220 78,500,905 86,289,835 77,657,593 73,942,064 78,555,729 85,999,063 1 Source: Halsey, "Investments in Latin America," Special Agents Series No. 169, Bureau of Foreign and Domestic Commerce, p. 46; Argentine International Trade, Director General of Commerce and Industry, 1916, p. 46. AUTOMOBILES.^ Except in the vicinity of the larger cities there are no highways in the North American meaning of the term. Over the level stretches vehicles may follow road trails in clouds of dust during the dry season. After heavy rains these roads are practically impassable, and the huge grain carts go lumbering along drawn by 20 or 30 powerful animals. Before 1911 automobiles were imported almost exclusively from Europe for use by the wealthy in the larger cities. These were heavy , expensive cars. During the war North American demonstrators went into agricultural and pastoral Argentina and convinced the unbelievers that the light car from the States can stand the wear and tear of country life. Kecently the demand has been so heavy that prosp)ective buyers had to register for future deliveries. Greatly increased import duties (40 per cent increase) may retard the sales of Fords, Chevrolets, Maxwells, and other cars of light weight and low ?rice. It would seem as if a demand for motor trucks would develop, 'hese could carry the food supplies to cities and to the railway sta- tions. The prevailing cheapness of dray animals and the expense of gasoline (40 cents to 70 cents a gallon), however, are holding back the sale of both motor trucks and farm tractors. The State has attempted to improve the roadways by prescribing that 3 per cent of the net profits of the railway companies shall go toward highway improvement and bridge building in the neighbor- hood traversed. During 1913 the sum realized from this source was approximately $1,500,000, and 970 miles of road were constructed or repaired and 27 bridges built. This revenue decreased during the war. The prospect of marked progress in transportation facilities with the advent of the automobile is not in sight, principally because Argentina lacks the materials for construction and the labor for the maintenance of an effective system of highways. 1 Special reference: Argentine Market for Motor Vehicles, Miscellaneous Series No. 162, Bureau of Foreign and Domestic Commerce. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 81 SfflPPING ENGAGED IN FOREIGN TRADE. Argentina's overseas trade is carried by ships flying foreign flags. Its coast trade is carried largely by ships flying the Argentine flag. The war caused a reduction to one-third of the tonnage en- gaged in overseas trade, and reduced the proportion flying the British flag and increased the tonnage of the united States and the northern neutral countries. Tonnage engaged in coast trade has also decreased steadily since the beginning of the war, though the reduction has not been so great as in the case of overseas tonnage. &nA-PM No. 13 I9l3 niA iJli" /?l« I? IT TONNA&E EngLAGED IN AifGENTINE Tl^AOr. Overseas Coastwise ? — f f f — f ° — & — ^- * 5 TEAM Sa\l The following table and graph No. 13 show the total steam and sail tonnage entering and departmg from Argentine ports in coastwise and overseas trade diuring the years 1913-1917: Total Tonnage Clearing Through Argentine Ports, 1913-1917.* 1913 1914 1915 1916 1917 No. Net tons. No. Net tons. No. Net tons. No. Net tons. No. Net tons. Overseas: Steam 3,311 206 3,517 9,026,214 256,961 2,412 116 6,704,948 133,048 2,328 160 5,849,144 201, 193 1,943 259 4,689,083 370,588 1,108 '216 2,966,518 Sail 294, 917 Total 9, 283, 175 2,528 6,837,996 2,488 6,050,337 2,202 5,059,671 1,324 3,261,435 Coastwise: Steam 10,031 7,563 6,473,649 1,205,314 9,283 5,593 6,406,201 920,765 8,226 3,649 6, 164, 178 517,046 7,314 3,288 5,850,554 531,428 6,453 3,425 4,743,552 510, 398 Sail Total 17,594 7,678,963 14,876 7,326,966 11,875 6,781,224 10,602 9,257 3,547 6,381,982 10,539,637 902,016 9,878 7,561 3,641 5, 253, 950 Total: Steam 13,342 7,769 15,499,863 1,462,275 11,695 5,709 13, 111, 149 1,053,813 10,554 3,809 12,013,322 818, 239 7,710,070 Sail 805, 315 Total 21,111 16,962,138 17, 404! 14. 164. 962! 14. 363 12,831,561 12,804 11,441,653 11,202 8, 515, 385 ' Source: El Comercio Exterior Argentino, Boletin No. 176, pp. 35, 36. 82 ECONOMIC POSITION OF AKGENTINA DURING THE WAR. The war has caused a shifting in the nationality of ships engaged in Argentina's trade. The following table and graph No. 14 show the increase in Norwegian and United States tonnage and the decrease in other European tonnage. Great Britain still holds first place, however, among countries other than Latin American. It should be noted that the shipping flying flags of Latin American countries is approximately the tonnage of coastwise trade. As a rule, Argentine and Brazilian ships carry the coastwise trade and European and other vessels engage in overseas trade. The study of the table on page 81 shows that the vessels engaged in coast trade are smaller, and a slightly larger proportion are sailing vessels. ctath Up. .^ . Effect ofthe WAf? m NAnoNALin of Tonnage \h /iRCENimA'S Qj/Ei?SEAS AND CoASTWISE TRADE l^lLH0W3 OF 'net Tons Q . ?. . . It f— f f- -1^ 'f ■ 'P ' ^? 19151 1917 ONlTgQ KIMODOM |- >/-iti>W4»i tvi«»r^ AtraCAJTl omen latin A^<^cr?>cAN Tonnage Engaged in Argentine Trade in 1913 and 1917 in Overseas and in Coastwise Trade, by Nationality of Flag. Vessels flying the flag of— Net tons. 1913 1917 Europe: United Kingdom 5,731,278 607,948 556,925 203, 247 207,397 183,365 1,118,560 472, 154 1,355,883 Italy " 254,382 France ... . 239, 745 Netherlands 60,526 Norway 292,310 Spain 188,218 Germany 108,342 Total European 9,080,874 2,589,406 United States 14,999 447,887 Latin America: Brazil 46,367 47,036 7,766,959 5,939 112,475 Uruguay . . 367, 649 Argentina 4,937,045 30, 424 Total Latin American . 7,866,301 5, 447, 593 Japan . 0) 30,499 TotaL.. 16, 962, 138 8, 515, 385 3,845 net tons in 1912. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 83 POSSIBILITIES OF SHIPBUILDING OR PURCHASE OF SHIPS. When the foreign shipping tonnage became so decreased that the exportable grains lay rotting and the railways feared demoralization on account of scarcity of fuel and the inability to obtain repair materials, then the Republic realized the disadvantages of complete dependence upon foreign shipping. in August, 1918, the President of Argentina strongly urged that shipbuilding be fostered by concessions of land sites, by exemption from taxation, and by other forms of subsidies. The expense of the raw materials and the scarcity of skilled labor, however, will make the cost of construction prohibitive. Probably the Repub- lic will find it advisable to buy ships abroad or to offer inducements for foreign shipping to sail under Argentine registry. Argentina will not, however, build or own ships to carry its overseas trade to any appreciable extent, for the same reasons that its industries will not develop rapidly in the near future. The bulk of Argentine cap- ital will tend to be invested in agriculture and stock raising. Vra. ARGENTINE FOREIGN TRADE. IMPORTANCE OF THE FOREIGN TRADE. An appreciation of Argentina's foreign trade will be gained by a comparison with that of other nations. Nations Leading in Value op Foreign Trade, 1913.' Countries. Foreign trade. Countries. Foreign trade. 1. United Kingdom $5,763,907,000 4,966,665,000 4,223,610,000 2,969,067,000 2,814,350,000 1,691,775,000 1,386,880,000 1,385,644,000 9. Austria-Hungary $1,253,785,000 1,185,345,000 2. Germany 10. Italy 3. United States 11, Canfi-fla 1,065,282,000 2 873,387,000 12. Argentina 5. Netherlands. 13. Australia 753,528,000 721,416,000 6. Belgium U. Hhina ... 7. British India 15. Japan 678,222,000 8. Russia.. . .... 1 Source: Statistical Abstract, United States. 1914. * Corrected or "real value " as published by the Argentine Government in 1917 is $979,844,595, or 1, 015,- 383,000 gold pesos converted to United States currency at $0,965. (See note, p. 6, in this study. See also pp. 7-23 of El Comercio Exterior Argentino en 1916 y 1917.) The importance of this trade is further emphasized when compared with that of other South American countries. Foreign Trade op South American Countries, 1913.* Countries. Foreign trade. Countries. Foreign trade. 1 Argentina . .... $873,387,000 642,451,000 264,927,000 115,808,000 74,100,000 6. Colombia. . $61,303,000 57,909,000 2. Brazil 7. Bolivia 3. Chile 8. Venezuela 43,329,000 4 Urueuav 9. Ecuador . . 24,371,000 13,751,000 5. Peru 10. Paraguay ' Source- Statistical Abstract, United States, 1914. Argentina's foreign trade is the dominating factor in its economic life. Domestic trade and consumption are relatively small in propor- tion to foreign trade. Argentina is dependent upon foreign markets for a far larger proportion of the production oi its industries than is the United States. Agricultural products have constituted about 48 per cent of Argentina's exports since 1898.^ Argentina's export trade has been, therefore, largely dependent upon good crop sea- sons. If the weather fails, the Republic has less to exchange for the desired imports and lacks the wherewithal to pay the interest and dividends due foreign capitalists. On the other hand, Argentina is dependent on foreign countries for many essential imports. Its coal supply is almost entirely imported, as well as many important manufactured articles, such as textiles, automobiles, and all kinds of machinery and railroad equipment. Foreign trade plays a very large part in the economic life of Argentina. 84 2 See also p. 88. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 85 CHANGES IN TRADE DURING THE WAR. The war produced marked changes in Argentina's trade. Some of these were temporary, some were merely the acceleration of ten- dencies already apparent, while others were changes due primarily to the war, which will probably persist after the return of normal conditions. The factors brought about by the European war which had the most marked effect upon ArgentiQa's trade were: (1) Increased demand for certain of its products, such as meats and wheat; (2) practical cessation of trade between Argentina and the Central Powers; (3) difficulties in obtaining certain imports usually pur- chased in countries then engaged in the war; (4) lack of shipping, which prevented its obtaining sufficient supplies of coal and distrib- uting its corn crop ; and (o) the great reduction in immigration, which affected the labor supply. The effects of some of these factors upon Argentina's principal industries and its trade in some important products have been dis- cussed in the preceding chapters. The effect on Argentina's foreign trade as a whole will now be traced with reference to changes in the direction of its trade and changes in products imported and exported. EFFECT OF THE WAR ON VALUE AND QUANTITY OF TRADE. A study of the value of foreign trade over a period of years is mis- leading if it is not borne in mind that prices may change from year to year and that an increase in the value of exports or imports does not necessarily mean an increase in the quantity of products in trade. This is especially true of the war period, when prices advanced in some cases so much that values of trade in commodities increased while the quantity decreased. The Argentine Government has studied this condition and has published mdex numbers on trade since 1910, showing real changes m quantity, prices, and total values.^ These index numbers and the figures of exports and imports, real and nominal, are here used to show the changes in quantity and value of Argentina's trade during the war. Eppeot op War on tke Quantity op Imports and Exports.* (Explanation: Prices were fixed in 1906 in the "Tariff of Values." The following values were based on this schedtUe and are, therefore, indicative only of changes in the quantities of goods imported and exported.) Imports (tariff values). Exports (prices based on those of 1910). Years. Gold pesos. United States currency.3 Quantity, index No. Gold pesos. United States currency.3 Quantity, index No. 1910 351,770,656 366,810,686 384,853,469 421,352„542 271,817,900 226,892,733 217,409,322 184,467,048 339,458,682 353,972,312 371,383,598 406,605,203 262,304,274 218,951,487 209,799,996 178,010,701 100.0 104.3 109.4 119.8 77. 3 1 389,071,360 346,834,027 512,625,466 529,695,048 397,915,223 375,453,862 334,694,836 494,683,575 520,805,721 383,988,190 482,417,566 420,530,993 301,400,434 100.0 1911 89.2 1912 131.8 1913 136. 1. 1914. 102.2 1915 64.5 61.8 52.4 499,914,576 435,783,412 312,332,056 128.5 1916 112.0 1917 80.3 1 El Comercio Exterior Argentino, Boletin 176, pp. 7-23. (See note, p. 6, this study.) s Source: El Comercio Exterior Argentino, Boletin No. 176, pp. 15-19. » Converted at $0,965-1 gold peso. 86 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. In the preceding table the year 1910 is taken as the standard year, and by maintaining the prices on imports fixed in 1906 by the Gov- ernment, and assuming that the nature of these imports has not materially changed, a set of index numbers is obtained which rep- resent the changes in the quantity of imports and exports. The index numbers of quantities of imports are plainly indicative of a change. The war markedly reduced the quantity of a growing import trade. The export index numbers do not show such a decided tendency. The low indices in 1911 and 1917 show the effects of poor harvests. Effect of War on the Value of Imports and Exports.^ Imports (real values). Exports (real prices). Years. Gold pesos. U. S. currency.2 Value, in- dex No. Gold pesos. U. S. currency.2 Value, in- dex No. 1910.. 379,352,515 405,019,992 446,863,002 496,227,094 322,529,964 305,488,006 366,130,571 380,321,178 366,075,177 390,844,292 431,222,797 478,859,145 311,241,415 294,795,926 353,316,001 367,009,937 100.0 106.7 117.7 130.8 85.1 80.6 96.6 100.2 389,071,360 342,317,258 501,667,369 519,156,011 403,131,517 582,179,279 572,999,522 550,170,049 375,453,862 330,336,154 484,109,011 500,985,551 389,021,914 561,803,004 552,944,539 530,914,097 100.0 1911 88.0 1912 128.9 1913 133.4 1914.... 103.6 1915 149.6 1916 ■ 147.3 1917 141.4 1 Source: El Comercio Exterior Argentino, Boletin No. 176, pp. 5-19. » Converted at $0,965=1 gold peso. The foregoing table, giving the real values of imports and exports expressed by index numbers, shows a different condition from that presented by the quantity figures. It shows that while the limited shipping caused a reduction in the quantity of about one-half, yet the value of imports in 1917 was about the same as in 1910. The increased cost of the commodities explains the situation. esos.] Groups of articles. 1913 1914 1915 1916 1917 Animal products: Live animals 9,787,370 167,011,867 21,612,225 2,466,673 7,168,585 170,952,289 18,363,936 2,209,933 10,384,812 195,045,556 28,032,381 1,384,935 6,944,766 244,878,849 41,938,614 1,816,131 4,902,288 Animal products 289, 160, 561 Manufactured animal products Animal residues _ , 80,270,380 1,702,038 Total 200,878,135 198,694,743 234,847,684 295,578,360 376,035,267 Agricultural products: Raw materials 288,520,030 7,744,404 5,567,211 169,896,807 16,201,097 5,195,870 294,963,812 21,575,497 2,869,261 230,598,177 14,429,685 1,094,372 127 237,558 Vegetable materials, manufactured. Vegetable residues 15,613,807 1,631,908 Total 301,831,645 191,293,774 319,408,570 246,122,234 144,483,271 Forest products 10,617,985 194,690 1,367,443 4,266,113 9,238,745 83,871 889,997 2,930,387 19,011,708 180,336 1,406,966 7,324,015 22,452,080 1,191,523 1,496,815 6,158,510 17,745,230 Mineral products 1,252,064 Products of hunting and fi.shing other products 1,432,539 9,221,678 Grand total 519,156,011 403,131,517 582,179,279 572,999,522 550, 170, 049 1 Source: Intercambio Econ6mico de la Reptiblica Argentina, 1910-1917, pp. 277-403 (Form p. 409); El Comercio Exterior Argentino en 1916 y 1917, Boletin No. 176. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 91 Argentina will furnish large quantities of wheat, linseed, and meat products to Europe in 1919, and for many years it will be one of the chief exporters of these products. GENERAL TREND OF IMPORTS. The general tendency of imports prior to the war was one of increase in both value and quantity. There are a great many commodities which are imported in large quantities. A table enumerating these in detail would be a very long one. The following table, quoted from El Comercio Exterior Argentino,^ shows that imports of com- modities for use in agriculture and industry were slightly greater in value than those for consumption. The effect of the war was to reverse the situation. Undoubtedly, with the return of normal conditions, imports of machinery for industry, agricultural imple- ments, railway equipment, and fuel will increase rapidly. As Argentina tends to manufacture more, this type of commodity will tend to increase, especially coal and ^products oi iron and steel. Articles are classified in the table as follows : Unproductive articles, or necessities of life and luxuries, include — Foodstuffs. Beverages Tobacco. Clothing. Certain oils. Many chemical and pharmaceutical articles. The greater part of manufactures of — Wood. Paper. Hides. Iron and other metals. Glassware and pottery. Productive articles include — A. Articles transformed and presented, or articles used for the maintenance of in- dustry- Animals for breeding purposes. Special curative materials. Textile materials, spun or raw. Industrial oils. Machine supplies. Dyes and paints. Iron products and other metals. Coal and petroleum. ^ All seeds. B . Capitalization, or articles used for the expansion or establishment of industries — Materials for railroads, etc. * Electrical materials. Agricultural machines and implements. Sand, pipes, glass, cement, etc., for construction. Machines in general. Iron columns, joists. Copper and brass pipes, etc. I Boletin 176, p. 422. 92 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Imports Classified as Productive or Unproductive, 1908-1917. ^ [Gold pesos, nominal values indicating changes in quantity.] Unpro- ductive. Productive. Total imports. Per cent represented by each classification. Years. Trans- formed or preserved. Capitaliza- tion. Total. produc- tive. Pro- duc- tive. Total. 1908 129,513,825 146,967,332 172,396,910 176,782,703 183,505,196 197,207,526 133,466,561 99,598,603 122,315,299 115,122,863 69,273,053 68,510,649 84,356,403 90,308,147 101,375,102 115,240,412 73,815,279 93,617,376 68,127,000 51,965,486 74,185,858 87,278,114 95,017,343 99,719,836 99,973,171 108,904,604 64,536,060 33,676,376 26,967,023 17,378,699 143,458,911 155,788,763 179,373,746 190,027,983 201,348,273 224,145,016 138,351,339 127,294,130 95,094,023 69,344,185 272,972,736 302,756,095 351,770,656 366,810,686 384,853,469 421,352,542 271,817,900 226,892,733 217,409,233 184,467,048 47.4 48.5 49.0 48.2 47.7 46.8 49.1 43.9 56.3 62.4 52.6 61.5 51.0 51.8 52.3 53.2 60.9 56.1 47.3 37.6 100 1909 . . 100 1910 100 1911 100 1912 100 1913 100 1914. 100 1915 100 1916. 100 1917 100 I Source: El Comercio Exterior Argentine, Boletin 176, p. 422. The following three tables give further details of this classification, which is similar to that quoted on page 70 in the chapter dealing with the development of manufacturing industries. Imports into Argentina of Materials for the Expansion of Industries and Establishment op New Enterprises.^ [In gold pesos; nominal values.2] Groups of articles. 1913 1914 1915 1916 1917 Locomotion: Rails, locomotives, coaches and cars, railway coaches and supphes street car and other transportation— total. Electricity: Wire and cable, conduction, dynamos, meters, accessories, etc.— total. . Agriculture: Machines and farm imple- ments, wire for wire work, rods, iron for 31,027,296 8,985,731 9,905,728 42,159,440 7,842,509 8,983,900 21,463,673 6,340,175 3,924,055 20,847,791 4,659,809 7,300,557 5,946,624 3,363,783 3,995,189 14,780,599 2,371,904 3,218,655 5,554,490 2,904,089 4,663,397 11,113,653 2,001,935 729,459 4,816,005 2,218,921 2,346,034 5,839,116 1,744,407 Construction: Sand, pipes, wood, marble, pprnpnt plass other — total. Machines in general Iron and other metals: Columns, joists, Tiino"? prrnnpr fttirl brass — total. 414,216 Total 108,904,604 64,536,060 33,676,754 26,967,023 17,378,699 1 Source: EI Comercio Exterior Argentino, Boletin 176, p. 96. 2 "Nominal values" are used because they are indicative of changes in quantity. Imports into Argentina op Luxuries for 1913- GoLD Pesos. ^ -1917: Nominal Values in Groups of articles. 1913 1^14 1915 1916 1917 Preserves, canned, bottled. Cigars ana tobacco. Wines, fine, liquors and aperitives Silks and fine weaves, ready-made goods, casings, men's and women's hats Furs, made-up, ornaments, silver trim- mings hat plumes, etc Carpets, tapestries, and furniture trimmings . Essences and perfumes Furniture, bronze, wood and iron Fine automobiles and other conveyances . . . Gold watches, fine jewels, precious stones, and silverware Bronzes, paintings, and artistic marble 2,995,668 1,253,513 7,940,671 8,143,705 547, 476 1,131,303 1,532,142 2,911,393 1,790,872 3,071,796 209,858 1,763,776 1,172,097 4,206,420 4,876,225 268,909 842, 987 1, 134, 586 1,548,940 509,846 1,088,202 162,518 1,430,082 949,421 3,884,788 4,306,264 110,662 193, 513 969,208 676,665 301, 118 494,960 79,615 1,510,981 1,095,328 3,326,232 6,215,547 174,759 288,495 999, 457 547,653 752,277 969,082 43, 496 1,052,866 1,250,241 2, 756, 859 4,500,508 170,697 254,890 824,713 491,602 1,100,931 924,301 Total 31,528,397 17,565,506 13,396,296 15,923,307 13,366,696 Source: El Comercio Exterior Argentino, Boletin 176, p. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 93 Imports into Argentina op Coal, Coke, and Petroleum, in Tons, 1913-1917.^ Articles. 1913 1914 1915 1916 1917 Coal 4,046,278 21,317 192,546 3,421,526 14, 657 161,731 2,543,887 11, 142 303, 956 1,884,781 10,496 303,235 707,712 Coke 3,904 3,088,383 Petroleuin . ..... Total 4,260,141 3,597,985 2,858,985 2,198,512 1,019,999 1 S(Jurce: El Comercio Exterior Argentino, Boletin 176, p. 97. IMPORTS DURING THE WAR. Argentina suffered a great decrease of imports during the war. Its industries and railroads were handicapped by a lack of fuel, machinery, and many essential materials ; its population was depriv- ed of a large quantity of luxuries of many kinds imported in large quantities before the war; and imports of articles of food and clothing were greatly reduced. The return of normal conditions will bring renewed competition between the industrial nations for the Argentine markets for manufactured goods, coal, and machinery, and other imports of the Republic will increase rapidly in the near future. The preceding tables show the decrease in the quantity of imports by certain classes. The following table gives real values of all im- ports grouped as in the regular official statistics: Imports into Argentina by Groups of Articles for 1913-1917: Real Values.^ [Gold pesos.] Groups of articles. 1913 1914 1915 1916 1917 Live stock 2 1,419,290 7,750,182 2 2,583,251 25, 116, 199 9,849,569 14,770,943 2 1,434,066 2 1,244,271 6,594,526 2 1,837,353 12,638,820 6,172,664 12,983,820 2 1,056,413 2 1,317,456 5,165,284 2 2,193,717 12,193,827 6, 691, 627 13,860,410 2 976,982 2 2,468,811 4,917,534 2 2,142,587 15,341,500 6,926,385 13,339,848 2 805,765 2, 447, 005 Foods: Animal . . . 3 219 563 Vegetable — Fruits 1,985,268 42,533,150 9,390,455 15, 607, 226 Spices and other condiments Vegetables and cereals Tea, coffee, cocoa, etc Flours, pastes, starches, and other food products 914,367 Total foods 61,504,210 41,283,596 41,081,847 43, 473, 619 73,650,029 Tobacco and manufactures of 5,174,492 4,415,995 3,786,984 6,519,479 8,473,515 Drinks: Wines ... 12,934,732 5,068,042 2 1,153,760 8,246,768 2.967,132 2 661,508 6,465,388 3,147,108 2 480, 561 5,377,703 3,313,269 2 479,350 4,953,530 3,035,317 615,868 other drinks Total drinks 19,156,534 11,875,408 10,093,057 9,170,322 8,604,715 Textile materials and manufactures of: Silk 5,210,926 13,434,969 43,726,148 41,613,198 3,319,218 8, 657, 447 26,154,712 20,210,356 3,150,948 4,440,375 25,040,688 35,410,576 4,749,754 8,9n,179 46,918,990 32,590,556 4 055 811 Wool 15^594; 158 51,544,687 13,357,410 Cotton other fibrous textiles Total textiles 103,985,241 58,341,733 68,042,587 93,170,476 84,552,066 Oils, fixed, mineral (petroleum), volatile, and fats . . 17,642,108 21,385,347 2,603,894 14,654,546 16,224,251 1, 754, 106 27,416,722 20,885,230 1,570,799 20,138,710 22,306,850 2,734,164 21,741,540 19,706,699 3,822,349 Products, chemical and pharmaceutical Colors and dyes 1 Source: Anuario del Comercio Exterior, and El Comercio Exterior, Boletfn No. 176. 2 Nominal values. These are used because no corrected values are published for these items in the years given. Real and nominal values in such cases differ only slightly. 94 ECOl^OMIC POSITION OF AEGENTINA DURING THE WAR. Imports into Argentina by groups op Articles for 1913-1917: Real Value s — Continued . [Gold pesos.] Groups of articles. 1913 1914 1915 1916 1917 Woods, other woody substances and their manufactures: Raw materials and those slightly worked. Manufactures 20,392,022 6,683,866 10,259,954 4, 402, 808 10,666,073 3,499,810 14,600,957 5,047,612 14,194,966 2,448,510 27,075,888 14,662,762 14,165,883 19,648,569 16 643 476 Paper and manufactures of: 5,843,027 3,781,702 4,317,173 3,081,477 5,119,810 2,473,684 8,902,218 3,516,724 11,277,779 1,885,947 Manufactures 9,624,729 7,398,650 7,593,494 12,418,924 13,163,726 5,734,313 3,938,861 2,645,722 2, 840, 698 3, 217, 714 Iron and manufactures: Raw materials and thoseslightly worked. 29,722,370 247,735,439 18,919,190 34,229,700 14,859,949 17, 551, 121 13,183,580 29,436,940 14,631,859 27,273,337 Total iron 77,457,809 53,148,890 32,411,070 42,620,520 41,905,196 Other metals and manufactures of: Rawmaterialsand those slightly worked. Manufactures 3,539,455 211,303,039 2,609,220 5,711,996 3,951,562 2,910,899 5,486,527 6,089,307 11,597,737 7 493 981 14,842,494 8,321,216 6,862,461 10,575,834 19,091,718 15,703,491 7,505,124 10,412,799 13,243,771 11,745,722 Stone, earth, glassware, and ceramic prod- ucts: Raw materials and those slightly worked. 53,013,001 6,368,045 40,557,811 4,491,747 41,442,894 3,210,535 48,964,086 2,959,035 27,077,657 2,325,620 Total 59,381,046 45,049,558 44,653,429 51,923,121 24,403,277 Electrical materials 18,117,277 28,040,306 13, 850, 435 18, 860, 562 6,055,699 7-0fl2..'i67 5,664,652 8,212,030 8 558 180 13^594; 251 Grand total 496,227,094 322,529,964 305,488,006 1 366,130,571 380,321,178 The following tables show the origin of some of the more important agricultural and industrial materials : Imports of Agricultural Implements, 1913, 1917, and 1918.^ [Values in United States currency.] By countries, 1913. Mowers and reapers. Binder twine. Thrashing machines. Plows. Plow- shares. Seeders. Germany $23,059 54,774 $33,366 $26,8Q8 $9, 196 2,824 129 $1,243 Belgium Canada $304,835 11,493 21,799 15,257 Cuba 4,439 1,484,826 43, 111 Umted States 640,558 29,973 863,289 1,737 870, 101 460,025 1, 190, 554 8,077 212, 147 1,898 172 339,595 United Kingdom Austria- Hungary 1,201 6 Denmark France 965 3,599 405 217 64 6,796 29 Chile Spain 21 Italy 29 ............ ........... Total 1913 1,840,392 162,902 105, 658 1,610,209 1,614,874 49,254 1,377,151 49,293 41,881 1,251,530 397, 542 200,284 233, 162 165,311 108,008 356, 174 Total 1917 2 77,223 Total 1918 (6months)2.... 70,348 1 Source: Anuario del Comercio Exterior de la Reptlblica Argentina. * Not listed by coimtries for 1917 and 1918. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 95 United States Exports to Argentina of Agricultural Implements, Fiscal Years 1913-1918: Values. ^ Articles. 1913 1914 1915 1916 1917 1918 Agricultural machinery: Hay rakes and tedders Mowers and reapers Planters and seeders Plows and cultivators Thrashers $29,011 1,650,688 323,164 1,755,705 1,318,397 1,346,554 $78,202 1,102,499 309,349 1,420,748 089, 7.50 744,338 $2,649 412,289 119,953 666,613 191, 596 348,506 $48, 295 770,436 85,688 1,413,763 143,822 916, 195 $16, 123 347,271 123,336 1,032,960 67 921 979,630 $36,306 349,668 100,770 890,006 87,255 505,808 All other and parts of » Total 6,423,519 33,776 1,928,006 4,344,886 94,497 1,200,590 1,741,606 3,160 264,140 3,378,199 21 901 1,890,357 2,567,241 8,004 911,429 1,969,813 42, 111 3,266,790 Milling machinery Binder twine 1 Source: Foreign Commerce and Navigation of the United States. 2 iQcluding corn shellers and huskers, and shredders, fanning and cane mills, etc. Principal Sources of the Important Textile and Metal Imports, 1913 and 1915. 1913 Articles. Total imports. Percentage from— Gold pesos. U.S. currency. United States. United King, dom. Ger- many. France. Italy. Bel- gium. Textiles: Colored woven prints Woolen cloths 12, 875, 730 7,092,134 4,841,056 4,119,377 3,549,973 2, 852, 401 1, 682, 660 1,671,248 1,313,442 1,001,915 6,383,860 6,378,999 6,263,680 6,210,438 5,041,415 4,945,631 4,234,929 4.119,377 3,486,324 2,734,468 2,125,538 2,024,902 1,454,376 1,331,724 5,382,604 $12,425,079 6,940,409 4,671,619 3,975,199 3,425,724 2,752,567 1,623,767 1, 612, 754 1,267,472 966,847 6,160,425 6,155,734 6,044,451 5,993,073 4,864,965 4,772,534 4,086 706 3,975,199 3,364,303 2,638,762 2,051,144 1,954,030 1,403,473 1,285,114 5,194,213 4.7 7.1 26.1 13.5 5.0 3.1 2.5 ""i'.d 29.1 23.3 12.0 8.3 24.3 19.3 40.0 63.2 78.3 67.5 67.9 11.7 34.0 19.1 42.0 51.1 84.4 9.7 3L8 21.8 72.1 40.9 58.0 67.5 75.6 21.7 11.0 62.0 89.7 36.5 8.9 15.9 3.0 10.5 16.0 12.8 15.6 2.6 12.8 2.1 ....... 56.8 36.4 38.5 4.1 12.7 13.1 8.5 11.8 9.2 43.0 8.1 7.7 2.7 Bleached cotton goods. . . . Cotton prints 2.2 Woolen and mixed goods. Silk cloth Cotton and silk goods Spun cotton, unbleached i2.5 Cotton and woolen goods Linen cloth 26.8 13.0 6.5 47.4 29.6 46.4 10.0 46.6 21.4 10.5 18.3 25.5 61.7 22.9 9.5 12.6 1L8 2.12 Iron and steel products: Galvanized iron 3.9 Sheet iron 34.4 Steel rails Machinery (various kinds).. Railway material 9.8 Wire cables for electrical purposes 6.2 Wrought iron 12.6 Iron columns and beams Locomotives 13.1 2.3' Spare parts of machinery 10.9 Galvanized wire Galvanized-iron pipes Railway cars 2.8 Bolts and nuts 14.4 16.3 16.0 Automobiles 30.8 9.6 124236°— 20 7 96 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Principal Sources of THE Important Textile 1915— Continued AND Metal Imports, 1913 and 1915 Total imports. Percentage from- Articles. ~ Gold pesos. U.S. currency. United States. United King- dom. Ger- many. France. Italy. Bel- gium. Textiles: Colored woven prints 6,932,932 3, 105, 206 3,439,899 2,263,171 1,083,681 2,070,135 644,516 886,284 0) 0) 2,845,990 535,640 1,445,126 1,690,786 1,689,251 3,371,810 761,330 1,222,300 973,029 S 632,080 $6,690,279 2,996,524 3,319,503 2,183,960 1,045,752 1,997,680 621,958 855,264 0) 0) 2,746,380 510,893 1,394,547 1,631,608 1,630,127 3,253,797 734,683 1,179,520 938,973 i 609,957 1.3 3.6 ■ "is' 44.9 69.8 87.2 76.7 73.1 16.8 22.7 81.8 3.7 3.7 1.3 9.1 44.7 8.5 9.3 14.1 12.0 14.6 32.3 11.4 1.9 Bleached cotton goods Cotton prints 2.1 7.8 """3.' 9' '"'48.' 5' 31.9 Woolen and mixed goods. Silk cloth Cotton and silk goods Spun cotton, imbleached Cotton and woolen goods Linen cloth Iron and steel products: Galvanized iron 26.5 71.7 Sheet iron Steel rails 61.7 31.9 8.6 14.3 10.0 16.9 31.8 90.0 50.9 87.5 21.4 10.6 Machinery (various kinds) 15.7 Railway material Wire cables for electrical purposes 31.6 Wrought iron '■ Iron columns and beams "35.3 99.0 34.5 83.5 Spare parts of machinery Galvanized wire 7.0 6.8 Galvanized-iron pipes .... Railway cars Bolts and nuts Automobiles 73.1 5.0 9.3 6.5 Less than $500,000. DIRECTION OF TRADE. The greater part of the foreign trade of Argentina is normally carried on with the European nations. This amounted to 52 per cent of the total in 1915 and 70 per cent in 1913. The two features responsible for the big business involved are : (1 ) The European need for Argentine products, and (2) the heavy investments of European capital, which are conducive to trade connections. Before the war England was first and Germany second among the customers of the Republic. Graph No. 19 shows the changes, in real values, which took place during the war. The United States was brought into first position and the German trade became negligible. Italy, France, and Spain conducted an appreciable portion of the trade. The war also stimulated trade between the South American Repub- lics. The trade of Argentina with its neighbors is of growing importance, and the amount of business with Brazil is assuming large proportions. Imports show that the lost import trade from Germany and the reduced imports from other European countries are partially offset by increased trade with Latin American countries. Brazil and Chile lead in this increase, each showing a gain of 500 per cent. The value of imports from Brazil were, in 1917, $36,549,985, as compared with $3,601,596 from Chile. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 97 •ARGENTINA- DIRECTION OF TRADE, 1913-19I7. IMPORTS BY COUNTRIES.GROUPS OF COUNTRIES AND VALUES IN$. ONS or f I ... I ... I *H ila TOTAL VALUCS tM f 47a.654.14 a 3 1 1.24 1.4 I 5 t94.79S.92 7 3}5.31S.997 36&.OO9.957 EXPORTS BY COUNTRIES. OROUPS OF COUNTRIES AND VALUES IN $. LEGEND. COUNTRieS AND OROUPS OF COUNTRIES UNITED STATES EUROPEAN ALLIES t/NITCD KINOOOM-1 FRANCe-2 ITALY - 3 BELGIUM- 4 RUSSIA -5 EUROPEAN NEUTRALS CENTRAlJgermanv-i ryyy^l LATIN AMERICAN POWERS |'^"*"r""^-«"'^CARy.2 LjiiJ COUNTRIES BRAilL- » WRf CfAV- Z BOLIVIA CHILE CUBA MCjflCO PARAfiUAV PERU SPAIN- I SWITZCRLA HOLLAMD SWEDEN NORWAY DENMARK ALLOTH COUNTRl ER I 1 ES I 1 The export trade to the Central Powers went almost entirely to the Allies, this trade being largely in foodstuffs for the armies. The increase in exports to the United States is particularly striking. 98 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. W oj W S I i ^ o P40 ^2 Ph O 22 P-i o SI cocoes <»(N(N 05(MM oseoos OSrl*-^ cdoio* ^oisg »OCCO OiOiC oot^iO c»eo»o -^ooc^ cot^eo ^lOt S^?5 ??J;5g gg§ i5?g5§ gS? SIS ! «0 05 O C*rf<0> OlOSO 00O< go rJfOCN -"l^t^^ Of-t- 05 Q oot^iip t^ioco oot^ic cs TOOscQ .-«-«if -.^-r^cN «oo5->*t ,-( c!|iot^ »ci>iN e0O5(N <035co 01 §"1000 C^(fi'c£ -^toa -rpt-^ci' r-? ^^rH Oi«ig C<«* CCN50 C^Oi-H 50-»t.oo e^0 C0«0^ rHiOOO ^5^g5 §:SS S^S S2S fe Ost^l^ 00t^»O OINOO TffkCOl 10 ^I^c»' lo^eooT ic'(N't>r oo^oTi-^ ^• ^ -^i 2j» Tt< •«l)»r-I ^OiO »-(50t^ »«;o»-i -^ dOCO ■^Orp OS O to 500t>- iCt^eC CO fO O? CO 00 «5 e«5 CSiTjico cOtCO CO00U5 M^COO i-H rt e«5 COCOOl COOt^ 1-1 f5?5S SSfa" f gg§ f SS ^''2'S g¥s §^'^§§ J5 T)000 »0>OiC -^Tt*© OOOOJ C«5r-4(N CM^esi e^oci icc^t^ -^t^^ ic^co pesos olosoo <»50>O l^NOs «OOe« i-iOOO OeOiO -«J»0 Tf<00«O «»H00 sosM F-coo > coo •>rtOi :ss i I I iSi 2 !•?§ §2i lOOSiO CO o~co* i-TTfTiflT ?o"?d' •00»O ososos ?o»oio eocow eot^o OQC< i^So s?:?? eocot^ occort r^iOiN ooosoo eo t-iOC^ t->OCO t^ — I OS OS ^ -"ti -^ 1C0S«0 «OOt^ t-OOiO t^uSco CO csToo'^-T er»o"t>r rH^cfTiT ^"csT t>^ CO eo N OWN t'-lOeO iOlOiO t-INt-I OOOOrJt e* rHcqcq OCCO^ 00 .-ico«o <© :S3 ISi «30S^ OSOOS T-H OOOS Sm 05 ^iOOS OSC«© r~ »-i ooo iciM r^ »cco 00 f^NOs OsS}^ m^Oi Ni-HTjt 0t*0> t«C«iO >OC4- OOiOtO lOt^Cfl Tf •«»i OS CO 4 ^.^A ^."A ^.".4 ^^^ so '^gs'so co't-T-^ cT-Tco" >00 t^COrH OOOOO §.sSw ^Sw ^Sa |flw feSw asw Ah ^g ■c a ^ <5 .So in 100 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. o « g 1 ^ o n ««-■ Ph o PM O i-i i-Hi-H o Ti- 03 <-H I C^ M lO e^ CO iQ o>i-i( r-coi-t ooi(?c«3 CO'*' coK—) OStNM CO00( I o o> ■* "* JCOCO M (M O O OOTfilN QOOJi-H OCCO ■* 'C^J t^ -co »0«PtH CO«D05 C<)C0"3 •^OOCO t--l^->*< COt-C^ CO CC t~" IQ lO 1— I T-l «0 CO 3 CO *' O -^ ■*C5io o lo ■* i-HCSeo cOi-Ht^ - ^J0'<1' (NCOOG . iO05»O C.C f» 'r:!':r coco< Oj CO t--. Mt 1-1 ifj «3 oTccTccr t-^ifTco* cd" tH lO t» P CO •^ 00 CO t^ ^ CO "5 05 C^COCD ^' CD -^ 00 CO l> 00 iC CO r^ CO O r-t OO't^co" rH'o"(N" «" & T»< ic C^ CO o It-- C0 1-1 1>. ooo OS t^COO OOOJOO OOlO- c^ •^ CO ooco»-i co'^ijt g^g ujcdcD 00COU5 00^05 rHT-tW 'OOOCO Ti<,.HiQ t^coQ eoooc: t>: ,-1 i-( o5 o 'C<5 t>» Oi«0 "O gS8 I 00 O 050> .-HOOOS S'^'^ fe"*'^ co»oM oSooo SicS ■<**C«5t^ TH00O3 «2'2$ OOt^ IO-*00 Tjl ?D 00 rH 1-1 00 lOMi^ t--coQ t:2!ri o^'* "?"*S S2SS2 CC 00 >— I OO CO CS 05 r>r(N~cr T-T^'^i*" "^$2^ OIMCO i-l(N CO o>S® rHlOO O-*-* t>.*"5 r-T^^KT cfoca ^■ri^ ^cot^ ^;2;g g55§S t>: O « ■"* ^ ^ i(M 00 CO 03 CO li :r! ' I CO 00 >oco t ^^s ■* Ttioi coioo 8^2 0-* °°P^ ^00 S iC«C> J5^2 SS5g SS| ci«OCO 0S"5«0 00 o> 00 '-=«"5— J-S"'."?— J©^i§~ ■S 5 s ^ o -^ 102 ECOJ^OMlC POSITION OF ARGENTllfA DtimiifG THR WaS. TRADE WITH CERTAIN COUNTRIES. MEDITERRANEAN COUNTRIES. In 1013 Italy held fifth place, in 1915 third place, and in 1917 fourth place in the list of Argentina's customers. This prominent position is due primarily to the number of Italians who have come to live in Argentina. Since 1860 Italy has sent 2,250,000 emigrants, and in 1913, 114,252 Italians entered the Republic. These numbers are surpassed only by the figures of Spanish immigration. Italians comprise 10 to 15 per cent of the population of Buenos Aires. These settlers not only do business within the Republic on behalf of the mother country, but their demands for home products and needs for adequate shipping facilities stimulate trade with Italy. The same conditions assist in developing the Spanish and French trade. Italy imports substantial quantities of Argentine maize, linseed, oats, wool, and hides. Its exports to Argentina of textile and steel products are shown in the table on pages 95 and 96. Other com- modities supplied by Italy are as follows : Argentine Imports from Italy, 1913. Commodities. Total imports into Argen- tina. Per cent from Italy. Gold pesos. U. S. cm-- rency. Olive oU 4,304,094 3,520,546 3,431,570 3,363,600 2,018,016 1,994,524 1,821,701 1,215,266 $4,153,451 3,397,327 3,311,465 3,245,874 1,947,385 1,924,716 1,757,941 1, 172, 732 62.0 Wines 37.0 Cleaned rice... . . .... 50.0 Vermouth 74.3 Cheese 74.5 Patent medicines . . 14.3 Watches 11.7 Cisars 70.6 These imports are demanded by the Italians living in Argentina. The Spanish trade, although less important, is similar to the Italian and depends primarily upon the requirements of the Span- iards living in Argentina for native products. In 1 9 1 3 Spain exported Erincipally olive oil, ordinary wine, cleaned rice, sardines, and printed ooks. During the war it increased its shipments of textile materials, rice, and wines. Before the war France held fourth place in Argentine trade, main- tained this position in 1915, and in 1917 held third. The trade is similar to that of Italy. Special imports from France were as follows : Argentine Imports from France, 1913. Commodities. Total imports into Argen- tina. Per cent from France. Gold pesos. U. S. cur- rency. Automobiles 5,382,604 2,852,401 1,994,524 1,283,783 $5,194,213 2,752,567 1,924,716 1,238,851 36.8 Silk cloth 56.8 56.1 76.6 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 103 France exports few steel products. Its textile exports were fairly well maintained during the first two years of the war. COUNTRIES OF NORTHWESTERN EUROPE. The value of trade with these countries in 1913 is shown in the following table: Argentine Trade with Northwestern Europe, 1913 and 1915. 1913 1915 Countries. Cold pesos. • U. S. cur- rency. Gold pesos. U. S. cur- rency. Belgium 54,685,779 26,697,877 4,197,865 3, 339, 455 $52,771,777 25,763,451 4,050,940 3,222,574 904,115 853,746 20,812,554 7,083,051 4,165,070 2,154,507 $823,865 20,084,115 6,835,144 Netherlands Sweden Norway 4,019,293 2,079,099 Denmark 936,907 These countries import mostly grains. Belgium sends textiles and steel products, as shown in the table on pages 95 and 96. Much of the cement for Argentine construction came From the same source. The Netherlands sends cheese and also reexports rice and tobacco received from the East Indies. The Scandinavian countries ship fish and news print paper. OTHER LATIN AMERICAN COUNTRIES. A large volume of trade is carried on with the neighbors of Argen- tina. The following values show that the war has increased this business : Argentine Trade with Chile, Paraguay, Uruguay, Bolivia, and Brazil. [United States currency.] Countries. 1913 1915 1917 Brazil.... Uruguay. Paraguay ChUe Bolivia.., $35,710,833 10,160,462 4,552,688 2,819,423 1.459,045 $35,531,949 10,450,504 4,495,731 2,750,219 990,133 $58,571,757 17,047,140 8,274,115 7,813,812 1,476,685 Among the most important commodities of export were live animals, especially to Uruguay and Chile. They were purchased to improve the stock in these regions. On the other hand, cattle on the hoof were sent in from Paraguay, Uruguay, and Bolivia, because the large Argentine meat-packmg establishments desired these products. In 1915 the value of cattle imported from these three countries approximated $900,000. Argentina sold to its neighbors the same year $3,000,000 worth of cattle. Brazil does the biggest business with Argentina. Both are pro- gressive coimtries, but in different climates. This explains the large volume of trade. Argentina in 1915 exported to Brazil wheat worth 104 ECON^OMIC POSITION OF ARGENTINA DURING THE WAR. $15,000,000 and flour worth $5,000,000. These two items represented over 95 per cent of the exports to Brazil. Argentina purchased goods worth $13,000,000, including coffee, $1,800,000; yerba mate, $5,000,- 000; and tobacco, $1,500,000. The trade with Chile is insignificant because the nitrates are not required in Argentina, and the surplus products of the latter country are raised in Cmle. Flour and hay are the principal Argentine exports, while animals, fruits, vegetables, wines, and malt are returned. Paraguay sends animals and yerba mate. Uruguay receives food products and sends back pastoral commodities and practically all the sand imported for building purposes. Trade with Mexico increased from $1,500,000 in 1913 to $18,000,000 in 1915; because the Mexican oil fields supplied fuel to Argentina. Imports of Naphtha from Mexico and the United States. 1913 1915 Commodity. Mexico. United States. Mexico. United States. Naphtlia Per cent. 11.1. Per cent. 85.6 Per cent. 58.8 Per cent. 41.0 $11,931,840 $25,602,407 In 1916 and 1917 this trade was limited and Mexican imports fell to normal. Cuba increased its trade slightly during the war. Its imports, which are small, consist chiefly of corn (which forms about 97 per cent of the total from Argentina). Cuba exported about $2,500,000 worth of goods to Argentina in 1915, and tobacco ($800,000) was the principal item. It exports practically no sugar to Argentina. JAPAN AND BRITISH POSSESSIONS. Japan is expecting increased trade in Argentina. From 1,004,330 gold pesos in 1913 it advanced to 5,239,806 pesos in 1917. Sixty per cent of this trade is on the import side and consists principally of silks and rice. Better shipping facilities and the opening of a branch of the Yokohama Specie Bank in Buenos Aires in 1918 are factors which will strengthen this trade. British possessions sent in 55 per cent of the burlap purchase of $12,000,000 in 1915. This is employed for bagging. They also are taking over some of the import trade in rice, and in 1915 sold to Argentina almost 50 per cent of the $800,000 tea purchase. UNITED KINGDOM.^ In the pre-war years 1912 and 1913 the percentages of Argentina's trade with the united Kingdom compared with Argentina's total trade are as follows: Years. Imports. Exports. Total. 1912 Per cent. 30.9 31.1 Per cent. 25.3 24.1 Per cent, 27.8 1913. . 27.7 lAU tables in this section are derived from "Argentine International Trade," Argentine Department of Agriculture. The values are all *^ nominal values,^' which explains the differences between the figures in this section and those in the table on p. 98. ECONOMIC POSITION" OF ARGENTINA DURING THE* WAR. 105 The following figures are those of the war years : Years. Imports. Exports. Total. 1914 Per cent. 34.0 35.6 28.2 21.8 Per cent. 29.3 24.4 29.4 29.2 Per cent. 31.4 1915 29.7 1916 28.9 1917 26.2 The persistence of the English trade is caused by two economic conditions, viz, England's lack of cereal and meat supplies and its possession of surplus capital. As shown in Chapter IX, the British are greatly responsible for Argentine development, because of capital invested in the railways. Interest and dividends on these and other investments pay for part of the imports into the United Kingdom. The British exports also tend to increase, as is indicated by the heavy shipments of railway supplies.^ These conditions, together with profits from investments, facilitate international payments, and the ease of making exchange reacts upon and increases trade. The British imports of Argentina products show a high value in both grain and meat commodities, but, absolutely and relatively, the meat imports were the more important during the war years. Products. Value of imports into United Kingdom from Argentina. Percentage of total ex- ported from Argentina. 1913 1915 1917 1913 1915 1917 Grains (including wheat, maize, oats, and linseed) $107,768,817 41,914,644 $50,568,984 70,610,881 $18,406,045 96,156,809 37.1 96.5 17.1 82.9 15.5 Meat products (including frcen beef, mutton, extracts, preserved meats, and butter) . . 70 6 These figures show the relative decrease in each group caused by the war. Greater participation in the trade of the mother country on the part of British colonies, especially^ Canada and Australia, probably explains the reduction. A more interesting feature, how- ever, is the relatively unimportant part played by England in the grain exports of Argentina when compared with the high percentage of its meat imports. This situation is probably dependent upon one or more of the following conditions. Several oi the nations of Europe require wheat, and purchase it in exchange for commodities sold Argentina. Thus the wheat crop is well distributed. In 1913 the United Kingdom received 37.1 per cent; Germany, 19.4 per cent; Belgium, 6.3 per cent; and Italy, 4.4 per cent. When it comes to the disposal of the meat supply, these other nations do not participate to such an extent, because of small per capita consumption. In former years Great Britain purchased much beef from the United States.^ With the lessening of this supply few sources are left except Argentina, and it is probable that the trade with this country will continue to increase. Many American packers who formerly did business with the British have established branches in Argentina 1 See p. 96. 106 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. and will probably maintain their European connections, sending large amounts directly from that base. The entrance of American capital into the industry accounts for the increased output in recent years and also for the British reduction from 96.5 per cent to 70.6 per cent. The United States received a negligible quantity of beef m 1913, and 11 per cent of Argentina's exports of beef in 1915. Minor exports of value to Great Britain are hides, wool, and quebracho extract. During the later years of the war the British imports into Argen- tina show a decrease. This is due to a war condition and does not indicate a lessening hold in the Argentine market. A vital factor in many lines. Great Britain practically monopolizes the trade in several commodities. The figures in the table on pages 95 and 96 show im- ports in 1913 and 1915 of textile and iron and steel products. The increase in the percentages of many of these connnodities is due to the absorption of the lost German trade. Besides the place held in the groups mentioned above, the United Kingdom makes heavy shipments of coal. In 1913 the imports were valued at $28,000,000, and the United Kingdom furnished 98.3 per cent. In 1915 this was reduced to 72 per cent, and that of the United States became 25.6 per cent. As long as the English and Welsh coal supply remains abundant and ships are required to bring back Ar- gentine products, a large per cent of Argentina's coal supply will be furnished by the United Kingdom. UNITED STATES. Argentina's trade with the United States during the three years preceding the war was surpassed by that of the United Kingdom, Germany, and France. During these years it varied little in value and showed a decided balance against Argentina. Pre-War Trade with the United States, 1911-1913. [United States ciurency.) Years. Imports from United States. Exports to United States. Total trade with United States. Balance against Argentina. 1911 $56,515,107 66,242,864 70,457,225 $24,685,655 32,632,786 23,728,409 $81,200,762 98, 875, 650 94,185,634 $31 828 452 1912 33 610 096 1913 46' 728' 816 During the four years of the war, not only did this trade increase until the United States reached first place, but the balance changed in favor of Argentina. (See graph No. 19.) War Trade with the United States, 1914-1917. Years. Imports from United States. Exports to United States. Total trade with United States. Balance in favor of Argentina. 1914 $41,984,982 72,944,239 103,243,910 133,251,948 $47,737,114 90, 426, 362 115,539,590 155,626,287 $89,722,096 163,370,601 218,783,500 288,878,235 $5 752 132 1915 .... 17! 482! 123 12,295,680 22,374,339 1916 1917 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 107 Comparison OF THE Exports OP THE Principal Commodities TO the United States AND THE United Kingdom, 1912, 1915, and 1917. Value of total exports Percentage of exports— i rrincipal commodities. (gold pesos). United States. United Kingdom. 1912 1915 1917 1912 1915 1917 1912 1915 1917 Wheat $97,835,174 108,908,193 21,858,517 34,285,076 4,836,860 34,285,076 5,613,971 1,769,882 17,285,501 24,844,075 58,148,664 $132,632,673 93,475,450 19,065,704 46,100,866 15,873,372 78,351,614 6,306,263 11,244,288 15,290,278 27,482,588 55,579,000 $60,632,191 39,262,221 10,589,801 12,928,966 14,140,210 86,256,995 7,834,100 36,681,451 14,869,644 40,538,214 101,300,020 1 2 ....„ 37 52 42 16 12 96 99 98 3 18 15 15 17 40 21 66 82 83 87 "'ii' 14 15 Maize 20 Oats 3 Linseed 10 32 25 12 11 17 50 ""5 67 50 70 12 Quebracho extract Beef (frozen and chilled) . . Mutton(frozen and chilled) . Preserved meat .... . . 23 72 80 72 58 34 10 73 70 44 2 Salt oxhides 30 Wool . 7 Total value of all 501,667,369 582,179,279 550,170,049 1 Where no per cent is indicated the exports are less than 1 per cent. IMPORTS FROM THE UNITED STATES. The following table shows the principal imports from the United States. Some of these were important before the war and have continued so ; others have gained prominence due to abnormal con- ditions ; while trade in some commodities has fallen off. Principal Imports from the United States.^ Commodities. 1913 1914 1915 1916 1917 1918 Agricultural implements, and parts of: Hay rakes and tedders Mowers and reapers Planters and seeders Plows and cultivators Thrashers Another, and parts of $29,011 1,650,688 323, 164 1,755,705 1,318,397 1,346,554 $78,202 1,102,499 309,349 1,420,748 689, 750 744,338 $2,649 412,289 119,953 666,613 191,596 348,506 $48,295 770,436 85,688 1,437,763 143,822 916,195 $16,123 347,271 123,336 1,032,960 67,921 979,630 $36,306 349,668 100,770 890,006 87,255 1,045,109 Total Automobiles, and parts Bagging Binder twine Cars, for railways Cement, hydraulic Coal and coke Cotton cloth: Duck All other cotton cloth- Unbleached Bleached Colored- Printed Dyed in piece Dyed in the yarn Knit goods Yam Electrical machinery and appliances. Tires, automobile 423,519 333,873 75,982 928,006 002,422 84,698 113,584 4,344,886 1,121,444 59,752 1,200,590 476,919 62, 787 401,810 1,741,606 347,029 206,080 264, 140 160, 865 218,042 1,714,928 3,402,199 2,321,139 160,081 1,890,357 50,886 82,012 2,402,212 167,268 3,313 144,844 4,310 9,419 8,516 Machinery: Pumps and pumping machinery . Sewing machines Typewriting machines Windmills Malt. 30,907 88,813 575,785 8,153 182,780 880,141 355,320 558,146 67,472 27,408 719,313 21,920 178,179 11,612 7,318 4,569 2,457 169,572 475,528 448, 177 34,096 578,663 225,716 204,291 135,290 457, 205 1,686,512 2,183,809 939,959 488,329 270,693 962,682 300,711 668,002 R ailway track material 780,114 987,302 1 Source: United States Statistics, 66,967 220,401 126,064 253,866 110,638 170,987 259,208 581,053 400,331 671,132 166,856 I 211,985 fiscal years 191 3-1918. 2,567,241 3,940,367 99,306 911,429 38,054 200,481 2,842,781 256,025 337,097 652,848 512,117 252,048 2,215,378 1,657,979 2,005,538 1,721,627 1,301,344 155,843 228,937 238,852 386,139 224,021 20,890 2,509,114 5,805,556 21,463 3,266,790 7,310 402,442 1,459,582 557,993 472,908 1,200,969 1,334,116 3,434,798 3,046,479 2,926,772 3,468,550 2,626,163 1,649,840 297,168 341,976 246,515 590,123 171,580 38,648 108 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Principal Imports from the United States — Continued. Commodities. 1913 1914 1915 1916 1917 Sheets and plates Tin plate, teme plate, and tagger's tin Tobacco Wire, and manufactures of. Leather Boots and shoes Oils: Crude Refined or manufactured— Fuel oil and gas oil Illuminating oil Lubricating Naphtha, and light products of distillation, and residuum Total Paper, news-print Sugar, refined Lumber: Oak White pine , Yellow pine Spruce Furniture (not metal) Shocks 944,511 247,646 429,597 1,354,741 1,845,818 651,432 94,232 442,004 738,850 983,874 881,887 639,187 492,941 343,268 1,180,948 637,775 566,054 1,056,239 1,519,110 262,228 3,305,790 1,482,379 797,683 1,309,128 2,954,310 831,798 3,723,669 1,393,865 708,350 2,669,564 7,811,659 341,006 3,688,047 1,096,735 314,297 324,558 35,485 2,217,028 1,075,342 2,385,113 593,594 102,442 1,687,358 789,185 3,655,571 316,864 11,324 1,528,548 672,398 419,373 159,358 1,391,414 1,284,490 3,597,821 542,012 253,865 1,559,989 1,266,175 3,204,250 276,609 98,334 1,382,505 1,808,665 5,450,820 6,037,526 709,010 1,645 302,827 564,149 4,187,234 458,556 778,404 2,360,666 6,828,060 447,908 2,417 225,540 443,659 3,348,137 413,339 770,215 1,019,352 4,188,983 806,217 739 100,521 56,953 1,037,777 56,829 187,979 558,960 6,852,455 1,039,360 238,089 217,661 158,061 1,218,790 123,258 192,965 590,208 682,129 1,178,997 5,705,771 294,338 92,936 638,105 6,405 356,180 684,696 9,016,933 1,983,472 6,483,692 239,097 44,731 851,905 11,119 91,043 1,500,341 A glance at the figures for 1913 will give an idea of the principal oommodities imported in pre-war years. The following table shows those imports which gained greatly in value during the war: Imports. From United States. Country suffer- • ing greatest loss in trade. 1913 1918 Cotton cloth $180,000 30, 907 88,813 113,584 1,333,873 6,037,526 836 709,010 84,698 $10,047,264 2,926,772 3,468,550 1,459,582 5,805,556 9,016,933 6,483,692 1,983,472 402,442 Great Britain, Knit goods (hosiery and underwear) Do. Yam. . Do Coal Do. Automobiles and parts France. Oils Sugar Germany. Do Paper. . . Cement Belgium. With the exception of coal, automobiles, and oils, much of this trade will probably return to those formerly controlling it. The in- creased American merchant marine may find coal as advantageous for cargoes as did the British before the war. The cheap, light, American automobiles have won a reputation in rural Argentina and will be purchased in increasing numbers. Oils, especially naphtha, come almost entirely from the United States. Many commodities, such as agricultural inachinery, railway cars, steel rails, electrical machinery, special machinery, wire, leather goods, and lumber from the United States, have decreased in value. This follows the general decline in the total of Argentine imports, caused by limited shipping facilities, and with the restoration of nor- mal conditions the sales from the United States will resume their for- mer value. The United States has a control, almost monopolistic, over several imports into Argentina. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 109 Imports from the United States in 1913 and 1915 op Commodities Valued at More Than $1,000,000 in 1913. Commodities. Percent- age, 1913. Percent- age, 1915. Commodities. Percent- age, 1913. Percent- age, 1915. Naphtha (impure) Lubricating oils... Kerosene Cotton oil Pitch pine Spruce 85.6 56.8 99.0 98.9 50.6 41.0 99.2 98.5 31.3 White pine Sisal twine Thrashing machines Sewing machines . . . News-print paper. . . 75.2 92.2 63.1 59.2 35.9 35.6 99.0 60.0 57.0 In many of these commodities the United States will continue to contribute the greater part of the imports. Among such products should be mentioned naphtha, kerosene, lumber, agricultural machin- ery, sewing machines, and typewriters. EXPORTS TO THE UNITED STATES. A study of pre-war figures from the Argentine official statistics shows that the United States received 6.7 per cent of the Argentine exports in 1912. The values and nature of these commodities are shown in the following table : Principal Exports to the United States, 1912.^ [United States currency.) Commodities. To United States. To all coun- tries. Percent to United States. Dried cowhides $9,667,799 8, 106, 870 6,707,865 1,646,815 1,522,146 4,605,960 $16,680,509 23,974,532 56,113,461 33,016,090 4,667,570 329,125,400 58.0 Salted cowhides 30.0 Wnnl (nnwHshed) 10.1 Flax... .' 5.0 Quebracho extract 32.6 All others 1.4 Total 31,257,455 463,577,562 6.7 1 Source: Anuario de Estadistica, 1912. During the war changes took place in the export trade to the United States. These are shown m the following table: Principal Exports to the United States during the War Years.* [United States fiscal years.] Commodities. 1913 1914 1915 1916 1917 1918 Wool $7,254,334 $18,220,308 $35,998,752 $75,119,656 $104,220,950 Hides (cattle): Dry $6,081,887 6,435,700 6,311,746 9,853,930 5,611,841 15,494,034 7,374,675 23,132,608 10,721,194 21,770,672 5,210,959 22,216,934 Green or pickled . Total 12,517,587 16,165,676 21, 105, 875 30, 507, 283 32,491,866 27,427,893 Lin seed 702,000 4,403,987 14,935,543 7,309,161 16,838,818 » Source: United States report. Commerce and Navigation. 110 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Pbincipal Exports to the United States during the War Years — Contd. Commodities. 1913 1914 1915 1916 1917 1918 Meats: Beef and voal $5,196,951 447, 193 $12,064,195 1,097,846 $5,240,834 1,682,480 $203,331 436,473 $57,146 Mutton and lamb 167,018 Total 5,644,144 13,162,041 6,923,314 639,804 214, 164 Skins: Sheep $776,969 1,457,242 522,626 1, 190, 166 1,145,655 1,078,677 2,073,389 2,073,956 6,155,560 3, 767, 722 4,694,541 Goat 1,761,749 Total 2,234,211 1, 712, 792 2,224,332 4,147,345 9,923,282 6,356,290 Quebracho: Extract 1,895,736 1,299,995 2,441,083 899,603 3,624,632 703, 882 6,432,468 1,598,465 5,198,667 1,180,447 4,660,250 Wood 718, 567 Total 3, 195, 731 3,340,686 4,328,514 7,030,933 6,379,114 6,378,817 Cora 476,286 7,351,336 4,475,075 2,543,053 1,381,709 2,395,365 The increase in wool exports to the United States is remarkable, being an increase from $5,000,000 to $75,000,000 worth in four years. The explanation is f oim.d in the large supply required by this country for military purposes and in the fact that the United States tended to obtain a larger proportion from Argentuia than from British sources, owing to the requirements of Great Britain for wool for its army. The increase in the meat exports is explained in part by the grow- ing control of American packers in the Argentine meat industry. The decrease in the last two years may be accounted for by em arrangement between England and the United States to ship meats direct to Europe. The linseed increase is due to excessive war needs. Normally the trade is not evenly distributed throughout the months of the year, as shown in the following figures for the calendar year 1913: Trade with United States During the Calendar Year 1913. Months. Imports. Exports. Total. January... February. . March April May June July August September- October... November. December. Total $4,783,189 3, 761, 723 4,697,650 4,136,056 5,345,050 3,467,227 4,478,932 5,139,818 5,151,071 5,168,450 4,113,394 4,737,855 $3,272,237 2,199,366 2,553,665 2,221,202 1,035,871 1,038,871 963,246 1,270,624 1,954,880 1,244,372 3,251,909 4.569,424 54,980,415 25,575.667 $8,055,426 6,961,089 7,251,315 6,357,258 6,380,921 4,506,098 5,342,178 6,410,442 7,105,951 6,409,822 7,365,303 9,307,279 80,556,082 The imports average about $4,000,000 each, month, but the ex- ports vary, ranging from $963,246 in July to $4,569,424 in December. This difference Detween the import and export figures would be even greater if tonnage statistics were given, for the exports are heavy, while the imports are of lesser bulk. This condition results in a lack of equilibrium in shipping facilities. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Ill GERMANY. Ill 1913 Germany held second place in Argentine trade, doing about one-lialf as much business as Great Britain, exporting 48 per cent as much and importing 55 per cent of the British v^ues. Principal German Purchases of Argentine Products, 1913. Commodities. Total Argentine exports. Percent- age sent Gold pesos. U. S. currency. to Ger- many. Maize... 112,292,394 102,631,143 49,910,201 45,270,016 24,543,795 4,740,184 $108,362,160 99,039,053 48,163,344 43,685,565 23,684,762 4,574,278 19 4 Wheat 20.4 Linseed 35 2 Wool 33.1 Salted hides 46.1 Bran ... 72 3 In the majority of cases this trade seems to have been generally distributed, but there is evidence of (lirect transfer in certain com- modities. Transfer of Trade. Countries of destination. Wool. Linseed. 1913 1915 1913 1915 Germany Per cent. 33.1 7.4 Per cent. 0.0 44.1 Per cent. 35.2 10.2 Per cent. United States 25 7 Germany sold many commodities to Argentina before the war, and the table on pages 95 and 96 reveals the important r61e played in the textile and steel imports. Most of the lost trade in textiles went to England, while the business in steel products was transferred to the United States. In electrical machmery, and other apparatus requiring technical accuracy and skiU, the Germans dominated, not only because of the accuracy of German workmanship, but on account of their heavy investments in Argentine municipal electrical power and lighting companies. Other imports from Germany not listed in the above-mentioned table were as f oUows : Argentine Imports from Germany, 1913. Commodities. Total imports into Argen- tina. Percent- age from Ger- many. Gold pesos. U. S. cur- rency. Automobiles 5,382,604 3,991,385 1,529,367 1,477,148 1,293,020 1,256,255 1,127,491 1, 118, 170 1,091,550 1,018,210 $5,194,213 •3,851,687 1,475,839 1,425,448 1,247,764 1,212,286 1,088,029 1,079,034 1,053,346 982,573 16.3 31.3 Sugar, refined Sugar, unrefined Household utensils (i? q Pianos 79 9 Paper for printed matter 82 9 Dynamos and electric motors 45 1 Copper manufactures 35.9 Tramway material Glassware .1 41 5 124236°— 20- IX. FINANCE. PRESENT FAVORABLE CONDITIONS. Financially Argentina is probably stronger to-day than at the opening of the war. Several years of poor crops and overextension 01 credit had worked havoc with the national finances and the opera- tions of the banks. These institutions were working normally when the war began, but fear of the future again hampered them. How- ever, the increased local trade during the war years assisted bank- ing business, and the future offers continued prosperity, especially if there is a greater centralized control preventing overextension of credit and other risky banking operations. The increased domestic trade has demanded a larger circulation of paper money. Practically no gold came into the countrv to provide an adequate reserve for this increase. Here was a danger. Deposits of gold by debtor nations in Argentine legations abroad prevented disaster. THE MONETARY SYSTEM. The monetary system of Argentina is theoretically on a gold mono- metallic basis, the unit of value being the gold peso. Like the gold dollar of the United States, the gold peso is a unit of value only and is not coined. It is nine-tenths mie and weighs 1,6129 grams. There are only two gold coins provided for by^ the monetary law of the coun- try, namely, the argentma, or 5-peso piece, and the half argentira, or 2i-peso piece. The silver peso contains 25 grams of silver nine-tenths fine. One peso equals 100 centavos. In addition to the silver peso, there are 50-centavo, 20-centavo, and 10-centavo silver coins. There are also some nickel and copper coins, as noted in the table given be- low, which, in addition to enumerating the various kinds of metallic money coined, shows their values as coins in United States money and also the amounts for which they are legal tender: Coins. Value in U.S. money. Gold coins— full legal tender: Argentina i argentina Silver coins — legal tender up to 10 pesos: Peso 50 centavos 20 centavos 10 centavos , Minor coins— legal tender up to 1 peso: 20 centavos (nickel) 10 centavos (nickel) 5 centavos (nickel) 2 centavos (copi)er) 1 centavo (copper) $4.8236 2.4118 .9648 .4824 .0964 .0964 .0482 .0192 The money in circulation is principally paper. Prior to 1899 there was no actual gold fund set aside for the redemption . of the paper money. The result was that the value of the currency was contin- 112 ECONOMIC POSITION" OF ARGENTINA DURING THE WAR. 113 ually fluctuating. This situation was especially undesirable in matters involving foreign exchange. The quotations for foreign exchange were based on the gold peso, and since the paper peso was not readily convertible into gold, anj depreciation in the paper peso adversely affected the rates of foreign exchange.^ For the purpose of stabibzing the value of the currency, Argentina in 1899 established the Office of Conversion. This office receives gold on deposit and issues in exchange demand notes at the rate of 227.27 pesos paper for every 100 pesos of gold. The office also exchanges gold pesos for paper pesos at the same rate; that is, for every 100 pesos of paper money received it will issue 44 pesos gold. In addition to the gold held by the Office of Conversion,^ the Government established a special fund, known as the conversion fund, which was kept in the Bank of the Argentine Nation. This fund was intended to be in- creased until it reached 128,000,000 pesos gold, the sum necessary to secure all the paper money outstanding at the time the act was passed in 1899 at the rate of 44 centavos gold for every peso paper. This fund had increased to 30,000,000 pesos by 1910 and remained at this figure until 1914. The outbreak of the European war forced the Government to pass some measures to meet the financial situation created by the war. On August 9, 1914, the directorate of the Bank of the Argentine Nation was authorized to convert and mobilize the conversion fund as it deemed expedient. This explains why in the table given on page 114, the figures for the conversion fund are discontinued after 1913. However, there remained in this fund from 1914 through 1918 the sum of 10,000,000 pesos gold. If this amount is added to the figures given in the table for the total amount of gold securing the paper money of the country, the ratio of gold to paper is increased about 2 or 3 per cent for the years 1914 to 1918, mclusive.* The other 20,000,000 pesos were taken to the Office of Conversion and exchanged for 45,454,545.45 pesos paper.^ Another law, passed on August 9, 1914, authorized various Argentine lega- tions abroad to receive gold which under normal conditions would have been shipped to Argentina. This law was the result of the action taken by various nations prohibiting the shipment of gold. As the balance of trade was in favor of Argentina during the war, con- siderable quantities of gold came into the hands of the legations at Stockholm, London, Washington, Paris, and Eome. The law authorizing the legations to receive this gold also provided that the Treasury Department should give to the Office of Conversion cer- tificates for the amount of gold thus deposited in the legations, and the Office of Conversion in turn was empowered to issue to the Bank of the Argentine Nation paper money equivalent to this gold. Thus back of the paper money authorized to be issued by this law are the certificates m the Office of Conversion which represent the gold deposited with the Argentine legations. This plan permitted Argentine creditors to receive payments, although the balance of trade remained very much in favor of Argentina, and the foreign debtors were unable to ship gold. 1 Ratio of gold to paper: 1914, 66.3 per cent; 1915, 72.6 per cent; 1916, 73.3 per cent; 1917, 73.3 per cent; 1918 (Nov. 30), 76.6 per cent. 2 See Memoria del Departamento de Hacienda, 1916, p. 118. 114 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. The table following shows the amount of paper money outstand- ing, its value in gold pesos converted at the rate of 44 centavos of gold for every peso of paper, and the amount of gold which secures it. It will be noted that although the ratio of gold in the Office of Conver- sion to the gold value of the paper money in circulation decreased during the war, nevertheless if the gold dfeposited in the Argentine legations be added the ratio on November 30, 1918, reached its highest point. As this gold will be eventually deposited in the Office of Con- version and as the increased issue of paper money was based on this gold deposited in the legations, it shotdd be considered as part of the gold security for the paper money even although it was not imme- diately available. At this point it may be noted that on August 12, 1914, the export of gold during the period of the European war was prohibited, and on ^ptember 30 a law was passed suspending specie payments by the Office of Conversion; that is, delivery of gold for paper money was denied. Thus, so far as the holder of Argentine paper "money was concerned, the gold in the Office of Conversion was no more available to him during the war than was the gold deposited with the legations. The so-called conversion fund in the BanK of the Argentine Nation has already been discussed. Although the official report of the Treasury Department ceased to include any sum under this heading after 1913, nevertheless some authorities include the 10,000,000 gold pesos of the fund which stiU remained in the bank as part of the gold back of the paper money in circulation. Relation Existing Between the Paper Money in Circulation and the Amount OF Gold Securing It.^ Year, Dec.31. Paper money in circulation. Gold equivalent of this paper money. Gold in Office of Conversion. Relation of amoimt of gold in Office of Con- version to gold value of paper money in circu- lation. Conversion fund in the Bank of the Argen- tine Na- tion. Gold held by Argen- tine legations. Total gold securing paper money. Relation of total gold reserve to paper money in circu- lation. 1899.... Paper pesos. 291,342,489 295,165,927 295,165,927 296,055,093 380,179,957 407,681,X)73 498,158,176 526,747,832 532,163,415 581,272,168 685,358,924 715,982,757 722,924,214 799,803,535 823,263,045 803,280,275 987,645,615 1,013,098,518 1,013,136,756 1,154,456,055 Gold pesos. 128,190,695 129,873,008 129,873,008 130,264,241 167,279,181 179,379,672 219,189,597 231,769,046 234,151,902 255,759,754 301,557,926 315,032,413 318,086,654 315,913,555 362,235,740 353,443,321 434,564,071 445,763,348 445,780,173 507,960,664 Gold pesos. 1,463 Percent. Gold pesos. Gold pesos. Gold pesos. Percent. 1900 1901.... 1902 2,843 38,241,147 50,341,639 90,152,049 102,731,014 105,113,872 126,721,724 172,519,898 185,994,386 189,048,629 222,875,531 233,197,716 221,710,205 237,291,607 260,320,952 261,597,777 279,465,449 '1. 28.1 41,1 44.3 44.9 49.5 67.2 59.2 59.4 63.3 64.4 62.7 54.6 58.2 58.7 55.0 142,464 488,627 5,210,540 11,710,545 16,808,743 19,762,406 25,000,000 28,500,000 30,000,000 30,000,000 30,000,000 3 30,000,000 145,307 38,729,774 55,552,179 101,862,594 119,539,757 124,876,278 151,721,724 201,019,898 215.994,386 219,048,629 252,875,531 263,197,716 224,405,298 305,636,048 316,835,326 316,852,151 379,032,643 (2) 1903.... 23.2 1904.... 31.0 1905 46.5 1906.... 51.6 1907 53.3 1908.... 69.3 1909 66.7 1910.... 1911.... 1912 68.6 68.9 71.9 1913.... 72.7 1914 2,695,093 68,344,441 56,514,374 55,254,374 99,567,193 63.5 1915.... 70.3 1916 71.1 1917 ... 71.1 1918 <... 74.6 ^ Sources: Memoria del Departamento de Hacienda, 1916, pp. 131-133; Memoria del Departamento d® Hacienda, 1917, p. 203; Business Conditions in Argentina, Report No. 143, published by Ernesto Tomquist & Cla. Dec. 30. 1918, p. 14. 2 Negligible. 3 By act 9479 of Aug. 4, 1914, the Bank of the Argentine Nation was authorized to convert and mobilize this conversion fund into any form that the directorate deemed expedient. < Nov. 30. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 115 THE BANKING SITUATION. The table following briefly summarizes the conditions of the prin- cipal banks in the Republic on March 31, 1919. In this list two types of banks are included, viz, domestic banks and foreign banks. COMMERCIAL DOMESTIC BANKS. With the exception of the Bank of the Argentine Nation, this group is composed of banks formed solely with Argentine private capital. Among the most important of such banks should be men- tioned the following: Banks. Capitalization. Paper pesos. U.S. currency. Banco Espaiiol , 98,416,240 62,500,000 22,727,000 31,816,000 $41,826,902 26,562,500 9,658,975 13,521,800 Banco de la Provincia de Buenos Aires Banco de Italia y Rio de la Plata... Banco Frances del Rio de la Plata There are other domestic banks of lesser importance in Buenos Aires with branches scattered throughout the Republic, and also many small local institutions. These Argentine banks specialize in han- dling the finance of the agricultural regions and other forms of domestic trade, while the group of foreign banks finance the foreign business of the country. Statement Showing the Position of the Banks on Mar. 31, 1919, as Published BY the Argentine Government.^ Banks. Deposits. Gold pesos. Paper pesos. Loans and discounts. Gold pesos. Paper pesos. German Transatlantic Anglo South American Argentine-Uruguayan British of South America Comercial del Azul Italian Commercial Spain and America Spanish and River Plate French and River Plate French and Italian Galicia and Buenos Aires German and South American Dutch and South American Italian and River Plate Italo-Belge London and Brazilian London and River Plate Bank of the Argentine Nation 2 New Italian Argentine Popular Province of Buenos Aires 3 National City Bank of New York First National Bank of Boston , Five banks with less than 1,000,000 pesos paper capital 1,067,901 338,652 557,635 788,631 587, 763 19,897 39,858 633 339,400 10,060 952,033 41,343 172,057 1,623,955 3,058,492 107,345 158,908 298,795 Total. 10,210,241 14,950, 29, 100, 5, 174, 29,341, 14,094, 13,010, 1,017, 111,680, 19,271, 27,405, 17, 169, 9,493, 20,241, 55,342, 18,531, 9,625, 74,650, 499,602, 33,692, 10,419, 120, 753, 25,551, 22,812, 829,632 498,946 216,479 55,852 245,652 561 285,075 105,909 98,850 730,872 258,861 4,834 6,886 132, 151 47, 198 1,126,338 10,443,638 30,774,477 4,681,065 19,421,160 13,022,586 11,366,957 835,623 109,936,446 13,667,646 13,127,921 17,568,273 7,369,015 31,595,033 57, 723, 708 11,273,349 6,491,203 37,532,111 254,887,352 27,810,088 14,543,261 100,672,017 30,849,068 18,516,466 1,524,119 184,062,123 3,517,758 845,632,604 1 Source: From Review of the River Plate, Apr. 25, 1919, p. 1009, as published by the Argentine Gov- ernment. 2 Including judicial deposits of 87,427 gold pesos and 33,382,960 paper pesos and cAmara compensadora (clearing) of 464,104 gold pesos and 68,907,141 paper pesos. s Including judicial deposits of 1,684 gold pesos and 12,634,005 paper pasos. 116 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Statement Showing the Position of the Banks on Mar. 31, 1919, as Pub- lished BY the Argentine Government — Continued. Banks. Cash. Gold pesos Paper pesos. Capital subscribed or corresponding to Ar- gentine Republic. Gold pesos. Paper pesos. German Transatlantic Anglo South American Argentine-Uruguayan British of South America Comercial del Azul Italian Commercial Spain and America Spanish and River Plate French and River Plate French and Italian Galicia and Buenos Aries German and South American Dutch and South American Italian and River Plate Italo-Belge London and Brazilian London and River Plate Bank of the Argentine Nation i New Italian Argentine Popular Province of Buenos Aires « National City Bank of New York First National Bank of Boston Five banks with less than 1,000,000 pesos paper capital 1,260,465 123, 771 2,833,348 179,885 1,635,972 416,963 47,061 805 291,740 36,318 1,255,969 52,007 571,865 4, 815, 629 34,808,959 166, 222 471,069 2,905,646 3,367 363,050 7,032,761 10,269,187 1.266,744 7,602,108 2,617,621 3,841,691 454,024 25,486,125 11,960,017 14,650,413 3,980,224 2,895,344 5,519,704 10,391,287 6,779,731 2,434,116 31,373,079 137,729,196 8,741,155 2,583,510 42,625,916 5,612,934 6,845,625 1,343,507 3,522,250 '4"377,"246 4,818,920 13,509,875 2,412,500 510.000 2,125,000 575,833 41,882,008 1,668,487 3,759,479 9,650,000 965,000 1,223,803 4,101,250 7,313,621 828,750 1,000,126 56,285,839 2,125,000 4,468,824 26,562,500 1,001,068 2,049,575 Total. 52,240,111 354,036,019 46,190,010 150,443,833 1 Including judicial deposits of 87,427 gold pesos and 33,382,960 paper pesos and c&mara compensadora (clearing) of 464, 104 gold pesos and 68,907,141 paper pesos. » Including judicial deposits of 1,684 gold pesos and 12,634,005 paper pesos. BANK OF THE ARGENTINE NATION. Following the panic of 1890, when the two semiofficial banks (the Provincial Bank and the National Bank) liquidated, a new State bank (the Banco de la Nacion Argentina) was formed, with a capitaliza- tion of over $21,000,000 (United States currency), for the purpose of transacting the business of the Government. On December 31, 1917, the capital amounted to nearly $55,000,000 with a reserve fund of over $14,500,000. Although managed independently of the Govern- ment, it carries on the latter's financing, and all net profits must go to increase the capital. It can not, however, loan to tne Government in excess of 20 per cent of the capital of the bank. With more than 150 branches and agencies scattered throughout the Repjublic, its influence is tremendous. On account of its Targe dealings in foreign drafts this bank controls the exchange market to a large extent. The following statistics show the growth of the institution since 1905: ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 117 Bank of the Argentine Nation as op Dec. 31, 1905-1917.^ [In thousands of doUju-s, United States currency.] Year. Deposits. Discounts, Cash. Capital. Reserve etc. Gold. Paper. fund (gold). 1905. 75,100 73,100 86,600 104,600 147,300 166, 100 175,700 203,300 230,100 257,300 294,300 321,200 370,200 69,800 73,800 92,900 106,000 127, 100 153,500 172,800 178,300 203,000 211,100 188,900 187, 700 226,700 10,900 9,000 17,500 21,900 33,700 35,300 32,800 36,500 31,100 27,600 10,000 14,400 35.600 21,800 22,300 23,400 28,800 48,900 42,200 42,400 55,600 76,500 82,500 153,900 155,800 125,700 21,900 22,800 24,000 46,800 48,200 49,800 51,400 53,100 54,400 54,400 54,400 54,400 54,900 2,600 1906 3,500 1907 4,700 1908 6,300 1909 7,900 1910 9,400 1911 11,100 1912 12,800 14,100 1913 1914 14,100 1915 14,100 1916 14,100 1917. 14,.')00 » Sources: Memoria del Departamento de Hacienda. 1917; Economla y Finanzas de la Naci<5n Argentina, Carlos F. Soares, Buenos Aires, 1916; published by Talleres Grdflcos Rodriguez Giles, 434, Loria. Note.— The Argentine paper peso was converted to United States currency in the above table at the rate of 42.5cents per peso, and the gold peso was converted at the rate of 96.5 cents per peso, THE FOREIGN COMMERCIAL BANKS IN ARGENTINA. The trade of the Republic was almost entirely with foreign* coun- tries before the war, so that banking has assumed an international character and is in the hands of foreigners to a certain extent, because they handle so much of the foreign business. Each of the banks keeps in touch with the country of its origin and attempts to gather around it a clientele of its own nationality. This situation has produced an independence and a free competition which has extended to the domes- tic banks and has resulted in excellent service, but also in a tendency for an overextension of credit, because of lack of any cooperative control. The most important of the foreign banks are included in the table on page 115. The British banks are especially powerful, due to their early start, to their great export and import business, and to their management of the huge British investments. The German banks serve principally their industrial houses and also German exporters. The French Bank of the Rio de la Plata, closely connected with the Paris market, has a strong position in Buenos Aires and is of great assistance to French trade. The Italian banks do much small business for their many Italian clients. The Yokohama Specie Bank opened a branch in Buenos Aires on Majr 6, 1918. This fact, together with its increasing merchant marine, indicates that Japan intends to take an important part in the commercial transactions of Argentina through the advantage of cheap labor. The participation of banks of the United States in Argentine banking operations started in November, 1914, the National City Bank of New York City being the first bank of the United States to avail itself of the privilege of establishing foreign branches granted by the Federal reserve act of 1913. Its growth has been rapid, and the table shows that on March 31, 1919, this bank stood tenth among the 28 banks listed, as regards the total amount of deposits. In 1915 118 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. the Argentine loan was financed through the medium of this institu- tion, and the Industrial Union of Argentina conducted its notable negotiations in 1916 with the United States through the same medium. This union settled a large number of claims arising from misunder- standings with our exporters. Other banks of the United States which have entered the Argentine field are the First National Bank of Boston and the Guaranty Trust Co., of New York. REGULATIONS REGARDING ESTABLISHMENT OF FOREIGN BRANCHES IN ARGENTINA — LAW OF 1913. The amount of capital to be devoted to the operation of the pro- posed branch must be stated* otherwise the wnole capital of the parent institution is taxed. The capital of the branch must be paid in gold into the Ofiice of Conversion and national paper currency will be issued. This may be loaned out, as no reserve is required against capital; but 65 per cent of the deposits must be kept in reserve. These banks must also pay annual trading licenses, varying from $7,000 to $60,000. Stamp taxes are also employed. INSTITUTIONS CLOSELY CONNECTED WITH COMMERCIAL BANKING. SAVINGS BANKS. In September, 1914, an Argentine Postal Savings Bank (Caja Nacional de Ahorro Postal) was created under national guaranty and started operations on April 5, 1915. One year later there were 91,909 depositors, and by October 18, 1917, the number of depositors had increased to 212,881. This is a report of its banking operations: ARGENTINE PoSTAL SAVINGS BaNK.^ [United States currency.] Periods. Deposits. Reimburse- ments. Balance. Apr. 5, 1915, to Dec. 31 . 1915 $1,147,998 2,847,412 4,002,883 1,660,834 $226,830 1,242,754 2,441,982 1,138,647 $921,168 1,604,658 1, 560, 901 1916........ 1917 1918 (first 5 months) 522,187 1 Source: Business Conditions in Argentina, Tornquist Report No. 142, p. 15. The Government controls the minimum and maximum amounts that may be deposited, the interest rates, etc. This is the first institution whose only function is to promote saving. During the year following its organization 185 post offices were authorized to receive savings deposits. Sixty-five of these were in Buenos Aires. THE NATIONAL MORTGAGE BANK. This bank (BancoHipotecaria Nacional), founded in 1886, has been granted the right to make loans by means of issues of cedulas, which are bonds to bearer. These bonds, which bear interest at 5 to 6 per cent, are given to persons mortgaging their properties to the bank. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Il9 and such bonds find a ready market on the exchanges both at home and abroad. While European capital, especially Belgian, has freely sought this type of investment, that of North America has been invested only lightly and within the past two years. The Argentina c^dula is a desirable form of investment because of the safeguards placed by the Government around the mortgage business, viz: (a) The Republic does not recognize a secret mortgage; (h) no liens take precedence over the rights of the mortgagee; (c) the mortgage is signed before a notary and is registered; (d) the notary must de- mand a certificate stating that the property is free from incimibrances. The following table shows the amount of new mortgages and amortizations made in the city of Buenos Aires from 1913 through August, 1918. The figures include all business of this nature, whether transacted through the National Mortgage Bank or some other institution. From 1905 to 1914, inclusive, the new mortgages were much larger in amount than the payments made on old mort- gages, but the war has brought about a reversal of this condition. Mortgage Transactions — City of Buenos Aires. ^ [United States currency.] Years. Amortizations. New mortgages. 1903 . $19,033,370 18,128,673 20,367,233 33,818,015 45,457,958 50,192,160 41,544,855 41,684,595 52,794,563 56,754,543 36,113,440 $14,480,813 20,469,105 44,822,285 57,892,055 128,133,845 111,342,563 75,436,140 37,708,168 31,073,875 29,517,568 22,855,905 1905 1907... . 1909 1911 1913 1914 1915 1916. 1917. 1918 8 mohths) 1 Source: Tomquist & Cia., Business Conditions in Argentina, Report No. 142, p. 38, and No. 143, p. 24. In 1915 the total value of mortgages upon properties in Argentina was calculated at $1,265,456,270, which was estimated as being 15 per cent of the total value of private property in Argentina. The National Mortgage Bank held $247,541,800, or 20 per cent; mort- gage companies (mostly British), 30 per cent; private lenders, 43 per cent; and cooperative msurance societies, 7 per cent. THE CLEARING HOUSE. Closely connected with banking operations is the question of facilitating the negotiation of commercial paper. An institution for this purpose was established in 1893 by the British banking interests. The Bank of the Argentine Nation, however, did not participate until 1913, when the clearing house was transferred within the walls of this institution and came under the control of the Argentine nation. The result of this change is manifest in the figures which follow. Note the effect of the war on the amount of clearings. 120 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Clearing-House Operations in Buenos Aires. ^ Clearings. Years. Paper pesos. United States currency. 1910 5,053,175,600 5,475,319,700 6,888,898,000 17,652,874,600 12,278,804,800 13,502,433,000 15,783,775,300 19,043,286,400 24,536,035,600 $2,147,599,630 2,327,010,873 2,927,781,650 7,502,471,705 5,218,492,040 5 738,534,025 6,708,104,503 8,093,396,720 10,427,815,130 1911 1912 1913 1914 1915 1916 1917.. . . 1918 (first 11 months) 1 Sources: Economla y Finanzas de la Nacidn Argentina, p. 106; Business Conditions in Argentina, Tom- quist & Cla., (Report No. 142, p. 15, and Report No. 143, p. 11). INSURANCE COMPANIES. A veiy important place in the financial interests of a country is held by its insurance companies. During the first week of February, 1919, Consul General Robertson, of Buenos Aires, stated that there was a pronounced need for American marine and fire insurance com- panies, due to the constantly growing commercial relations between the United States and Argentina.^ In 1917 there were in Argentina 26 British insurance companies, 3 German, 3 American, 2 French, 1 Swiss, and 1 Brazilian. All these concerns have their main offices in the capital. A number of cooperative societies and 58 or more local companies handle various lines of insurance. The foreign companies pay a higher rate of taxation on premiums than the domestic companies, and they pay also a suin for trading licenses. These concerns must deposit a sxma approximating $130,000 and must pay a tax of 2 per cent on life and workmen's compensation, as compared with the one-half of 1 per cent paid by local companies. On fire, marine, and accident insurance tne rate is 7 per cent, in contrast with the 1.4 per cent paid by local companies. BANKING REFORM. During the years 1902-1912 a series of good crops and a large influx of immigrants produced prosperity in Argentina. In the two years that followed, adversity overtook this Republic on account of poor crops, the curtailed shipping facilities, and because the financial organizations were not able to stand the strain. Lack of cooperation among the banks had resulted in overextension of credit and the monetary system was unable to meet the demands for a flexible cir- culation. So it is with regret that this item is recorded (April, 1918): '^A recent attempt to establish a central reserve bank and to reform the currency has been unsuccessful." The suggestion has been frequently put forth that the Republic might more strongly control and regulate banking operations by giv- ing a commanding position to the Bank of the Argentine Nation. 1 The rules and regulations governing foreign insurance companies may be obtained by addressing the Ministerio de Hacienda, Secci<5n de Seguros, Casa del Gobierno, Buenos Aires. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 121 This bank should be able to offer rediscount facilities to the other institutions. The following results would be the outgrowth of such a procedure, viz: (a) Stabilization of rates of interesj), with probable reduction; (h) better tabulation of credit information, thereby lessen- ing the dangers of the present method; and (c) placing a check upon unrestrained banking. This has not been accomplished because the other banks, under the present conditions, regard the National Bank as a competitor and have no desire to disclose their accounts and information. Argentine banking has weathered the storm created by war con- ditions, but the reforms suggested above would tend to prevent the recurrence of excessive booms and of panics such as occurred in 1913-14. THE NATIONAL DEBT. The table following shows the total debt of Argentina, including not only the debt of the Federal Government but also the debts of the Provinces and municipalities. The outstanding c^dulas of the National Mortgage BanK are also included, as they are guaranteed by the Federal Government. National Public Debts.* [United States currency.] Years. Funded debt. Floatingdebt. Total debt. Interest and otberclu^rges. 1913 $658,240,000 682,150,000 722,165,000 707,707,000 $74,158,000 99,134,000 76,672,000 74,451,000 $732,398,000 781,284,000 798,837,000 782,158,000 « 776, 100, 000 $35,818,000 36,737,000 36,737,000 41,265,000 1914 1915 1916 . 1917 1 Source: Fitch Record of Government Finances for 1918, p. 3. ' Figures from statement in message of the President to the legislature. The per capita total debt is $96 to $97 (United States currency). The following table ^ gives the figures for the debt of the Federal Government. Years. Gold pesos. U.S.corrency.i 1911 526,540,088 531,498,699 544,820,000 545,023,470 537, 582, 830 546,787,905 595, 410, 400 $508 111 185 1912 512,896,245 525 751 300 1913 1914 525 947 649 1915 518' 767^ 431 527,650,328 574 571 036 1916 1917 1 Conversion factor: 1 peso= $0,965 The Minister of Finance submitted a report in which he stated that the floating debt of the Federal Government incurred as a result of the war amounted approximately to $243,400,000 (United States currency) . 1 Source: Revlsta de ECQnomla y Finanzas, 1918. 122 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. Report op Minister of Finance, August, 1918. ^ Obligations. Amount, U. S. currency. Short-time loans outstanding abroad of 5,000,000 pesos and $25,000,000 United States contracted on May 7, 1915, in London and New York, at 6 per cent interest, to mature May 15, 1920 2 Loans from banks and other establishments in Argentina, including the Bank of the Argentine Nation Due Bank of the Argentine Nation Advance from Bank of the Argentine Nation (as of Aug. 5) Purchase of mole at Puerto Militar, treasury bills (interest included) maturing on Feb. 15, 1920 Treasury bills (as of Aug. 6) Floating debt from 1917 and previous years (as of Jime 30 last) Supplementary credits (estimated) Total $49,367,614 130,453,750 30,599,844 10,656,011 4,234,234 7, 697, 769 8, 245, 000 2, 125, 000 243,379,222 1 Source: Commerce Eeports, Oct. 16, 1918. * For the past 30 years Baring Bros.^ of London, have acted as agents in floating Argentine loans in England. The British have invested m these quite freely. Since 1914 the National City Bank of New York City and the First National Bank of Boston have made loans to Argentina. A study of the debt of the Federal Government shows that there has been a tendency for the debt to increase. There are only three possible basic reasons for this: (1) Kapid increases in expenditures, or (2) decreases in revenues, or (3) a combination of these two. To bring out clearly which of these is to be taken as the reason for the increase in the debt which has occurred in late years, the following table of expenditures and revenues is given : Revenues and Expenditures, 1912-1918.* Year. Revenue (United States currency). Expenditures (Umted States currency). 1912 $143,009,767 148,509,481 106,319,697 106,693,806 109,876,701 107,360,143 2 164,082,493 ■ $171,832,028 171,527,658 178,415,581 145,848,766 166,839,874 168,406,894 168,878,713 1913. .. 1914 1915... 1916 1917 1918. 1 Source: The South American Journal, July 20, 1918. From the Argentine presidential message, May 16 1918. 2 Bitimates. Note that the estimated revenue is larger than in the preceding year. The changes in the expenditure totals show no marked variance, but there has been a slight decrease, due to fewer extravagant outlays common in former years, when lavish expenditures were made upon unproductive projects, such as railroad extensions and ports on the Atlantic which do not benefit the present generation. It is also true that expenditures for administrative purposes were reduced approximately $12,000,000 United States currency in 1918, but the expense of jnaintaining the public debt increased. The growth of national indebtedness, therefore, was due to decreased revenue. The decrease in revenue was caused by the decline in the receipts from customs. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 123 SOURCES OF REVENUE. The following table, which gives the figures of the 1918 budget for the principal sources of revenue, shows clearly the predominance of the import duties as a source of revenue : Sources of Revenue.^ Items. Import duties... Export duties... Tobacco Stamps Port charges, etc Wines Paper pesos. 124,050,000 50,000,000 30,000,000 20,000,000 14,300,000 12,200,000 United States currency. 2 $52, 721, 250 21,250,000 12, 750, 000 8,500,000 6,077,500 5,185,000 1 Source: Standard Daily Trade Service, August, 1917. 2 Conversion factor: 1 paper peso=$0.425. Duties on imports have always supplied a high percentage of Gov- ernment revenue. The revenue from this source has averaged about 63 per cent of the total national income. The following figures show the loss from this source sustained during^ the war, due to the shortage of tonnage and the commercial regulations of the Allies and the United States:* * Revenue Derived from Duties Levied on Imports. Years. Gold pesos. United States currency.! 1911 77,862,358 82,889,737 87,633,788 52,079,3e0 41,754,171 4:'i,153,496 42,520,751 $75,137,175 79,988,596 84,566,605 50 256 582 1912 1913 1914 1915. 40,292,775 44,538,124 41,032,525 1916 1917 1 Conversion factor: 1 peso=$0.965. The Argentine Government has recognized that the old method of raising revenue is not suited to securing sufiicient funds to cover necessary expenditures and is considering new methods of acquiring revenue, which are discussed in the following section. NEW SOURCES OF REVENUE. In a speech delivered on August 31, 1918, President Irigoyen sum- marized the proposed new sources of revenue as follows : (1) A reasonable increase in the customs appraisements of the import tariff list; (2) Modification of the basis for the collection of the export duties; (3) An increase of 50 per cent in the present statistical tax; (4) An equitable increase in port duties; (5) Modifications of the inland revenue taxes on tobacco, cards, etc., (6) Increased earnings of the national transport fleet; (7) An increase of the Argentine consular fees; and (8) The establishment of a national income tax. 124 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. TAXES ON IMPORTS AND EXPORTS. The higher appraisement on imported commodities was deemed advisable because the former classification was determined in 1906, when values were lower. The Government in the last quarter of 1918 increased the appraised value 20 per cent. This tends to produce 20 per cent additional revenue from such goods as bear an ad valorem tax. Opposition has been expressed on the grounds that such a measure tends to augment the high cost of living. Those in favor of the new regulation state that most of the imported arti- cles of prime necessity have a specific tax and are, therefore, not affected by the ad valorem duty. This answer is only partly true, inasmuch as ad valorem duties are levied upon imports of wearing apparel, textiles, hardware, dry goods, drugs, chemicals, electrical supplies, etc. One of the most effective methods of increasing the revenue lies in the restoration of heavier duties on exported commodities. In 1912 the money received from this source was 1,962 gold pesos. The estimate for 1918 was 28,908,000. The law as passed in Janu- ary, 1918, provided that certain commodities have their basic prices fixed monthly by an authorized committee, and if sold above this appraised value the increase is fixed in this manner, viz, 15 per cent tax on exported animal products and 12 per cent on agricultural goods. INCOME TAX. In the estimate of revenue for 1919 an entirely new source was proposed, viz, the income tax. It was expected to yield during that year a revenue of 30,000,000 pesos paper ($13,425,000 United States currency). The fundamental principle of the tax is summed up in this clause: Every person or incorporated body domiciled in the territory of the Republic shall pay annually a fixed tax of 2 per cent upon his or her net income derived from the country or from abroad during the preceding year when such income is in excess of 1,500 pesos paper ($671 United States currency) per annum. MISCELLANEOUS SOURCES. The Argentinians have attempted to increase the revenue by various other expedients. Internal taxes have been increased, especially on wines, tobacco, playing cards, etc. Shipping interests find the charges for using port facilities more expensive. Thus a vessel of 7,000 tons net register from foreign ports remaining in port six days formerly paid about $2,040 shipping dues; to-day the cost is $4,080. In the same way the charges for vessels engaged in coast trade have increased, but not to the same degree. The free ports, which were so inducive to the growth of southern Argentina, have been abolished and customhouses established. All phases of financial life are taxed, and one of the newer forms is a 5 per cent tax on interest money received by holders of mortgages. Even pleasures are affected, and, besides the returns from the national lottery, attendance at the race track and participation in the betting have both become fruitful sources of State income. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 125 The great need for more revenue will probably result in benefiting Argentina. Economies will be instituted, an appreciative study of the national resources will be made, and the result promises an effi- cient exploitation of these assets on the basis of conservation. FOREIGN INVESTMENTS. The value of foreign investments in adjusting unbalanced trade is described in the following section, where the heavy pre-war im- ports of England and Germany into Argentina are given. England, the heaviest investor, is especially interested in railway development; Germany in electrical power and lighting plants; the investments on the part of the United States are very small. The table below shows how the investments affected the imports from these countries. TYPES OF FOREIGN INVESTMENTS. One of the Argentine statisticians in May, 1918, gave the follow- ing table to show the extent and distribution of foreign capital invested in his country. Foreign Investments, Extent and Distribution. Types of investment. Capital invested. Gold pesos. U. S, currency 657,303,460 $634,297,839 1,344,326,465 1,297,275,039 51,981,022 50,074,836 22,163,909 21,388,172 109,496,149 105,663,784 40,916,439 39,484,364 78,373,018 75,629,962 79,681,618 76,892,761 500,015,962 482,515,403 3,886,464 3,750,438 507,760,000 489,988,400 21,340,000 20,593,100 465,169,244 448,888,321 3,882,323,750 3,746,442,419 Various Argentine loans and issues Railways Banks Ports Tramways Freezing establishments Gas, electricity, water, and drainage companies, Land and rural property companies Mortgages Insurance Industrial establishments Telephone and radio-telegraphic companies Commerce Total Although it is difficult to ascertain the capital invested by the differ- ent nations, the authority quoted above believes that the British in- vestments amount to a sum between $2,000,000,000 and S2,500,000,- 000, or over 50 per cent of the total invested. The French-invested capital in 1913 was estimated at $400,000,000; the German capital at $250,000,000. ItaUans and Belgians are also heavy investors. THE RAILWAYS. More than twice as much foreign capital is invested in the Argen- tine railways as in any other industry. The importance of invest- ment in this branch well illustrates the importance of all investments in countries where it is desired to build up trade. The heaviest investors are the British. The money invested seldom leaves Eng- land, because the initial loan ^oes to pay British makers of railway supplies for the material used in building and later maintaining the 126 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. railroads. In the case of Argentina the absolute inability to supply fuel and other materials for railway maintenance makes necessary a continued export trade in these commodities from the investing countries. The majority of these countries buy less than they seU Argentina. A balance is due them each year. The dividends and interest pay this balance and thus facilitate exchange relations. In 1913 the following balances were due the countries named: Great Britain $10, 500, 000 Germany 13, 500, 000 United States 40, 000, 000 France 1, 000, 000 Italy 15, 000, 000 The United States, with the largest balance, has small returns from investments. The natural resources of Argentina make certain its commercial development, and this growth constantly demands increased and improved transportation facilities. To-day the capital invested in the privately owned lines is more than $1,200,000,000. Great Britain controls about $1,000,000,000 of this large investment. France, with three or four railways in the northern Provinces, has the next largest interests. Before the war the shares of the larger lines were far above par and the dividends on the ordinary stock averaged 7 per cent. The holdings of the other nations in this line of investment are small. GOVERNMENT LOANS AND ISSUES. At the beginning of 1916 the Government loans amounted to $350,000,000 out of an original sum of $430,000,000. These loans have been contracted to defray expenses in former Argentine wars, to assist in the building of railroads, to further provincial and munici- pal improvements, and to pay debts due cities and banks. The bonds find great favor abroad, especially in Europe, where the quota- tions normally are at a premium. In the period of 1911-1914, issues at 5 per cent sold at 104 to 106. Great Britain holds a large share of these bonds, most of which were floated by the great English banking house of Baring Bros. & Co. Recent short-term issues have been financed in the United States and taken up eagerly. The United States is probably the second largest investor in Government issues to-day. The Provinces and cities have also borrowed, and their loans are in British and German hands. BANKS AND BANKING. In this field also the British are great investors. Not only does the control of banking institutions make possible more reliable credit information and offer opportunities to facilitate exchange, but this type of investment is secure and profitable. The three large British banks paid during the three pre-war years dividends amount- ing to 22, 20, and 12 per cent, respectively. The shares sold at 185, 248, and lOOf . The majority of the European nations doing a large volume of business with Argentina have interests in one or more of the banks. Since the passing of the Federal reserve act in Decem- ber, 1913, the United States has established branch banks in Buenos ECOITOMIC POSITION OF ARGENTINA DURING THE WAR. 127 Aires. The National City Bank and the Guaranty Trust Co., of New York City, and the First National Bank of Boston, have estab- lished such connections. PUBLIC UTILITIES. Europe has invested in electric light and power companies, gas companies, tramways, telephone companies, water supply, and sanitary works. As in the case of the railways, supplies for installa- tion and maintenance come from the investing countries. The improved conditions attract people and increase trade, which reacts on the business done with the countries interested in the enterprises. Electricity is used more extensively than gas for lighting and heating. A powerful German-owned company controls the electrical supply in Buenos Aires, Montevideo, and Valparaiso. In Buenos Aires the Italian company (Italo- Argentine Electric Co.) competed with the Germans before the war, and lately has gained great strength. Before the war the German company averaged dividends of 10 per cent. The limited coal supply of the last four years has adversely affected these concerns. In the smaller cities are found British, French, and Belgian companies. The tramways and telephone companies have much Argentine capital invested, while the sanitary works and water supplies of the municipalities have been assisted by British capital especially. INVESTMENTS IN THE INDUSTRIES. Investments in mining companies, especially petroleum, are more or less in the speculative stage, while investments in agricultural and pastoral industries consume Argentine capital chiefly. The war hastened a plan, already well started, to interest American capital in the meat-packing industry in Argentina. As early as 1913 the Argentine and British controlled companies appealed to the Gov- ernment to limit the output of the American plants. This is an indi- cation of the success of Americans in this field, which offers one of the best opportunities for American capital. EFFECT OF WAR ON THE FOREIGN INVESTMENTS. The Allies have large holdings in Argentina. In spite of the need to pay debts, especially to the United States, it is not likely that many of these lucrative and secure investments were transferred. The German capital is interested chiefly in banks and in the German Transatlantic Electric Co., with its branches in Montevideo and Valparaiso, probably the largest overseas electrical plant of any nation. Its value as a purchaser of German electrical goods is tre- mendous. Its investment in electrical e(iuipment in Buenos Aires alone is estimated at $10,000,000. Negotiations were started to buy these plants and equipment, but were halted because of the fear that such a transfer would make these properties unavailable for indem- nity piu-poses. During the last few years the United States has established branch banks, floated several Government loans, and has taken a prominent place in the meat-packing industry. The surplus capital in the 124236°— 20 9 128 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. United States has been started toward Argentina, and the next few years will probably witness increased holdings. (Special reference : Investments in Latin America, Special Agents Series No. 169, Bureau of Foreign and Domestic Commerce.) THE BALANCE OF TRADE. Ai^entina for many years has shown a favorable balance of trade, with one exception. In 1911, a bad crop year, the balance against it was $60,508,000. With the beginning of the war, imports were curtailed and exports were increased. In 1913 the favorable balance was $22,126,000, while in 1915 the maximum of $267,007,000 was reached. In 1916 and 1917 the balances were not so large, although great in comparison with the pre-war balance. In 1918 for the first nine months the balance in favor of Argentina was $245,720,000, which indicates that 1918 was probably the climax. The quantity imported in 1918 was also the smallest, due to lack of tonnage, while the exports reached the high-water mark both in quantity and value. Graph No. 16, on page 87, and the following table show Argentina's balance of trade since 1910: Abgentina's Balance of Tbade.* [United States dollars; 000 omitted.] Years. Total im- ports. Total ex- ports. Balance in favor (+) or against (— ) Argentina. 1910 366,075 390,844 431,223 478,859 311,241 294,796 353,316 367,010 353,057 375,454 330,336 481,090 500,986 389,022 561,803 552,945 530,914 598,774 + 9,379 — 60,508 1911 1912 + 49,867 + 22,127 + 77,781 +267,007 +199,629 +163,904 1913 1914 1915 1916 . 1917 1918 (first 9 months) +245, 717 1 Source: El Comercio Exterior Argentino, Boletin No. 177, 1918.* *Real values. The following quotation from the Fitch Record of Government Finances for 1918 explains the discrepancies in ofllcial figures on Argentina's trade: ' ' Corrected figures ( or real values) , showing actual f.o.b. and c.i.f. values, do not correspond with the official figures which are usually given (in detailed tables) on Argentine trade. In Argentine official returns export figures are based on the current market values of the merchandise, but are only approximately correct . Import figures, however, have no relation to current market values. They are based on the officially fixed valuation for customs in the tariff of 1903,with slight subsequent modificatons." This situation is explained more fuUy in the introduction to this publication. Argentina's Balance of Trade with Selected Countries.^ [United States dollars; 000 omitted.] United States. United Kingdom. Germany. Years. Imports from. Exports Balance in favor (+)or agamst (-)Ar- gentma. Imports from. Exports Balance in favor (+)or against (-) Ar- gentina. Imports from. Exports Balance, in favor (+).or agamst (-) Ar- gentina. 1910 1911 1912 1913 1914 1915 1916 1917 50,368 55,775 66,243 70,456 41,984 72,943 103,243 133,251 25,511 24,715 32,632 23,728 47,736 90,426 115,539 155,625 -24,855 -31,058 -33,610 -46,728 + 5,751 +17,481 +12,295 +22,373 113,781 115,737 132,951 148,661 105,835 88,040 99,590 80,079 81,395 93,412 122,273 124,750 113,754 166,042 162,642 155,217 -32,385 -22,325 -10,673 -23,910 + 7,917 +78,001 +63,050 +75,136 63,589 70, 154 71,637 80,995 45,774 7,342 569 283 45,390 43,809 54,397 60,023 34,222 -18,198 -26,346 -17,239 -20,971 -11,552 — 7,342 — 569 - 283 1 Source: Intercambio Econdmico de la Repiiblica, 1910-1917; El Comercio Exterior Argentino en 1916 y 1917,BoletinNo. 176. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 129 Abgentina's Balance of Trade with Selected Countries — Continued. Spain. Brazil. Years. • Imports from. Exports Balance in favor gentina. Imports from. Exports Balance in favor (+)or against (-) Ar- gentina. 1910 11,349 12,016 13,363 14,071 9,846 14,727 21,900 26,529 2,891 2,215 3,609 4,992 2,677 7,181 8)717 8,814 - 8,458 - 9,801 - 9,754 - 9,077 - 7,168 - 7 539 - 1,318 -17,715 9,469 9,014 10,696 10,516 10,632 13,483 19,333 36,649 17,672 18, 179 22,814 25, 193 17,491 22,047 24,940 22,021 + 8,202 + 9,164 +12,118 +14,676 + 6,859 + 8,562 + 5,595 -14,528 1911 1912 1913 1914 1915 1916 1917 Uruguay. Japan. Years. Imports from. Exports Balance in favor (+)or against (-) Ar- gentina. Imports from. Exports Balance in favor (+)or against (-) Ar- gentina. 1910 2,352 3,269 2,796 3,630 3,355 2,441 3,995 6,732 1,544 2,380 4,743 6,529 5,253 8,008 6,604 10,313 - 807 - 888 +1,952 +2,898 +1,897 +5,567 +2,608 +3,580 793 652 867 985 656 1,061 1,921 3,202 79g 1911 — 5'>2 1912 — 867 1913 17 — 967 1914 — 556 1915 —1,060 1916 -1,921 —1,165 1917 2,036 Note.— There is a slight per cent of error in the above figures, owing to the conversion of the gold pesos "With the thousands omitted and the use of $0,965 as the conversion unit. From the foregoing table it may be seen that Argentina's balance of trade with the United States was unfavorable to Argentina imtil 1914. In that year the balance changed and increased until in 1917 Argentina was exporting an excess of $22,373,000 worth of goods to the United States. This was largely due to an increase in the price of commodities rather than to an increased quantity. The effect upon the exchange rate has also been unfavorable to the United States. It is probable that these conditions will adjust themselves, now that shipping conditions are better, and especially since the United States has removed the restriction on the exportation of gold. Argentina's Trade With the United States. [United States dollars.] Years. Per cent of total im- ports from the United States. Per cent of total ex- ports to the United States. Balance of trade in favor of (+) or against (—) Ar- gentina. Total balance of trade in favor of Argentina. 1913 14.9 13.5 16.1 29.4 36.3 4.7 12.3 16.1 20.9 29.3 -46,728,000 + 5,752,000 +17,482,000 + 12,296,000 +22,374,000 + 22,127,000 + 77,781,000 +267,007,000 + 199,629,000 +163,904,000 1914 1915 1916 : . 1917 130 ECONOMIC POSITION OF AKGENTINA DURING THE WAR. The same conditions showed in Argentina's trade with the United Kingdom. The value of imports from the United Kingdom de- creased. In connection with a period of rising prices, this decrease m.ust have meant a very great decrease in the quantity imported. With the increase in value of exports, the balance of trade in favor of Argentina was greater than that with the United States. Exports to Germany ceased in 1914, and for the entire period of the war the balance oi trade against Argentina showed a decreasing amount, until in 1917 it had become very small. With the other countries shown in the table the outstanding features in the trade are : An increase in the values of both imports from and exports to Spain, with the balance increasing in favor of Spain in 1916 and 1917 ; a favor- able balance of trade with Brazil through 1916, although the value tended to become less after 1913, and in 1917 an unfavorable balance of quite large value through a large increase in the values of imports from Brazil ; reciprocal trade with Uruguay increased during the period with the balance of trade in favor of Argentina; the value of imports from Japan increased steadily, while Argentina sent no goods, with the exception of a small quantity in 1913, until in 1917 it sent $2,036,000 worth, thereby lessening the imfavorable balance against it 39 per cent from that in 1916. The main problems in connection with the balance of trade in Argen- tina are those dealing with the difference in the value of exports and imports and with the adjustment of exchange rates. With the exception of two or three lean seasons, the past 20 years have witnessed a substantial increase in the balance of trade in favor of the Republic. The following official statement explains the situa- tion in the year 1916 : Balance of Trade, 1916. the world owed argentina. Gold pesos. Value of exports 572.999,522 Purchase of bonds, mortgages, etc 52, 1 70, 000 Expenses of foreigners in Argentina 5, 000, 000 Total 630,169,522 ARGENTINA OWED THE WORLD. Gold pesos. Value of imports 366,130,571 Foreign loans --- 10,000,000 Interest on national, provincial, and municipal loans 51, 117, 228 Interest and dividends from railways 46, 195, 908 Interest from mortgages 37, 947, 024 Interest from other investments 22, 966, 389 Transferring of immigrant earnings 33, 000, 000 Expenses of Argentinians abroad 5, 000, 000 Total 572,357,120 Deducting the second total from the first, we find that the world owed Argentina 57,812,402 gold pesos net. In this particular year the debt was paid by net imports of gold to the value of 25,516,345 pesos, and the balance (32,296,057 gold pesos) was devoted to dimin- ishing loans and investments and cancelmg mortgages held in Argen- tina by foreigners. In previous years the balance was not large enough to even pay the Argentine current debt, so the foreigners ECONOMIC POSITIOI^ OF ARGENTINA DURING THE WAR. 131 allowed their credit to go toward further investments in the Republic. The war brought Argentina a trade balance sufficiently large to pay all its foreign current debts and then leave a balance in its favor. It has become a creditor nation in actuality. However, this very con- dition has been conducive to unworkable conditions in the exchange rates, which required for solution methods new in Argentine history. The increasing trade balance and the reluctance of the Allies to ship gold to Argentina caused the exchange rates to soar. The par value of Argentine exchange is in London 48 to 48i pence per Argentine gold peso and in New York is $0.9648 per gold peso. In August, 1918, the respective rates were 501 pence and S0.99J, and foreigners owing Argentme merchants had to pay these high rates. The result was an increase in prices, in order to meet the extra expense, or else a diversion of foreign trade to other markets. This exchange situa- tion favored the Argentine importer, but he could not increase his business because of limited shipping facilities. In order to save the situation Argentina made financial agreements with the Allied Governments. A credit of £40,000,000 was given to the British and French Governments, from which cereals could be purchased with Argentine money. The Argentine Government could then draw on London and Paris if the rate of exchange did not exceed 50d. and 5.60 francs, respectively. If, however, the rate of exchange was higher than this figure, the Argentine Government was to allow amounts to stand to her account. The balance which remained was to be settled by the respective Governments in gold 24 months after the signature oi the agreement. A similar agreement for $40,000,000 was made with the united States. Later this sum was increased to $60,000,000. Merchants in the United States were to deposit money owed to Argentine firms with the Argentine ambassador m Washing- ton, who placed the money in current account in the New York Fed- eral Reserve Bank. The Bank of the Argentine Nation, or the Office of Conversion, was to pay the Argentine creditors by drawing against the payments made to the Ambassador in Washington. No gold was to be shipped from the United States until after the signing of the treaty of peace. PROBABLE RETURN OF EXCHANGE TO NORMAL. With the return of normal conditions the imports wiU doubtless increase. Argentina is prosperous, which means that she has large purchasing abihty. The lack of shipping facilities has prevented importation of many things that the people wiU now be glad to purchase. On the other hand, it is not probable that the inflated war values of Argentine exports wiU continue indefinitely. Both the increase in imports and the decrease in value of exports wiU tend to lessen the large balance of trade in Argentina's favor, and this wiU tend to bring exchange back to its pre-war level. BIBLIOGRAPHY. Publications which were used in the preparation of this report on Argentina are marked with an asterisic (*). A bibliography of publications on Argentina which are found in the libraries of the Bureau of Foreign and Domestic Commerce and the Pan American Unionj Washington, D. C: Almanacs, Directories, Encyclopedias, and Guides. ^American Exporter. Export Trade Directory, 1919-20. Export merchants, manu- facturers' export agents, foreign exchange bankers, foreign freight forwarders, steamship lines, foreign consuls, etc., in principal ports of the United States. (Johnston Export Publishing Co., 17 Battery Place, New York; branches in Boston, Philadelphia, Cleveland, Detroit, Chicago, St. Louis.) American Travel^ and Hotel Directory. Latin American edition. 1918 (fourth) edition. Copyrighted in the United States and Canada by the Independent Print- ing Companies of the United States, Washington, D. C. Compiled under the direc- tion of Harold W. Phillips; 98 pages. Argentine Republic, pages 17-21. *Anuario de la America Latina, 1914. General information of the imports and ex- ports, industries, agriculture, live stock, and mineral production, etc., of the Americas. Written in Spanish; 1944 pages. ("Anuarios Bailly-Bailliere y Riera Reunidos. " Offices: Consejo de Ciento, 240, Barcelona, Spain.) Argentina, pages 3-309. Anuario Kraft, Gran Guia General del Comercio y de la Inddstria, Profesionales y Elemento Oficial de la Repiiblica Argentina. A classified directory of the com- merce, industry, professions, and official status of the Argentine Republic, 1919, Written in Spanish. (Proprietor and editor, Guillermo Kraft. Address: Calle Espana 151, Buenos Aires.) Argentine Republic. General list of importers, December, 1918. On file in the Bureau of Foreign and Domestic Commerce, Latin American Division, Washington. Argentine Standard Directory and Buyers' Guide for 1916 and 1917. Index of repre- sentatives of foreign manufacturers in Argentina. 435 pages. (The Standard Directory Co., Lavalle 341, Buenos Aires.) Agents in New Yotk: Donnell & Palmer, 17 Battery Place. Argentine Standard Directory of National and Foreign Merchants and Manufacturers. 1919, eleventh edition. (Anuario Argentine de Fabricantes y Comerciantes Naci- onales y Extranjeros.) Written in Spanish, French, and English. Branch office: Donnell and Palmer, 17 Battery Place, New York. ^Baedeker of the Argentine Republic, by Albert B. Martinez, containing maps and plans of Argentina, of the town of Buenos Aires, of Montevideo, of Rosario, of the railway lines, and numerous illustrations. 1914 (fourth edition). R. Sopena, print- er, Provenza 93, 95, and 97, Barcelona, Spain. 479 pages. Written in English. Bank and Public Holidays Throughout the World, 1918. Guaranty Trust Co. of New York, 140 Broadway, New York. *En cyclopedia of Latin America, 1917, giving special information on commerce, in- dustry, banking, finance, railways, shipping, transportation, communications, trade, tariff, customs, and all matters of commercial importance. Editors: Marrion Wilcox and George Edwin Rines. (The Encyclopedia Americana Corporation, 27 William Street, New York.) 887 pages. Argentina, pages 162-227. English Standard Directory and Buyers' Guide of Argentina, 1915. (The English Standard Directory Co., Sarmiento 478, Buenos Aires. 352 pages.) Written in English. Eureka Argentina Gula. A City Directory of Buenos Aires. Written in Spanish. Proprietors: Silvestre L. Caamano. Office: Suipacha 18, Buenos Aires. ^Exporters' Encyclopedia, 1918-19 (fourteenth edition), containing full and authentic information relative to shipments for every coimtry in the world. (The Exporters' Encyclopedia Co., Maritime Exchange Building, 78-80 Broad Street, New York.) The Argentine Republic, pages 407-433. 132 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 133 *Foreigii Commercial Guide of South America. Edited by Edward James Cattell, assisted by H. S. Morrison and A. C. Kauffman. (Philadelphia Commercial Museum. Copyright 1903, 1904, 1906 by the Philadelphia Commercial Museum.) Giving physical and political features, banks, postal and cable rates, trade centers, customs duties, commercial travelers' licenses, patents and trade-marks, internal communication, resources, etc., of Argentina, pages 2-31. *Kelly's Directory of Merchants, Manufacturers, and Shippers of the World. A guide to the export and import shipping and manufacturing industries. (British, col- onial, and foreign trades.) 1918. Thirty-second edition, (Kelly's Directories, Ltd.), 182, 183, and 184 High Holbom London, W. C. 1. Branch Office, New York: Kelly Publishing Co., 70 Fifth Avenue.) Published annually. Lippincott 's New Gazetteer or Geographical Dictionary of the World . (J. B . Lippin- cott Co., Philadelphia and London, 1916.) 2,105 pages. *Port Directory of the Principal Foreign Ports, 1911. (See United States Government publications. Navy Department.) Thomas' Register of American Manufacturers. (Thomas Publishing Co., New York. October. 1918, tenth edition.) 4,200 pages. A purchasing guide which aims to list all American manufacturers and primary sources of supply free of charge and irrespective of advertising and subscription patronage. For the use of both domes- tic and foreign buyers. *Trade Directory of South America for the Promotion of American Export Trade. Bureau of Foreign and Domestic Commerce, Miscellaneous Series No. 13. (Govern- ment Printing Office, Washington, 1914.) 428 pages. Argentina, pages 25-74. Out of print. United River Plate Telephone Co. (Ltd.), May, 1917; November, 1918. Official telephone directory. Written in Spanish. Office: Avenida de Mayo 761, Buenos Aires. Universal Directory of Railway Officials, 1918 (twenty-fourth edition). Compiled from official sources under the direction of S. R. Blundstone, editor of the Railway Engineer. (The Directory Publishing Company (Ltd.), 15 Farringdon Avenue, E. C. 4.) 645 pages. Argentina, pages 365-372. *World Almanac and Encyclopedia, 1919. Issued by the Press Publishing Co., Pulitzer Building, New York. Copyright 1918. 944 pages. Argentina, pages 371 and 449. Argentine Publications, daily newspapers, buenos aires. In Spanish. *La Prensa, Avenida de Mayo 567; morning daily, established 1869; 16 to 24 pages; 17^ by 24 inches ; circulation, 165, 000, Foreign subscription price, $27 per annum, advertising rates, $3.55 to $6.70 per inch. La Nacion, San Martin 344; morning daily; established 1870; 16 to 24 pages, 17^ by 26 inches; circulation, 135,000. Foreign subscription price, $24 per annum; advertising rates, $2.15 to $12.90 per inch. La Razon, Avenida de Mayo 760; afternoon daily; established 1904; 10 to 16 pages, 17^ by 26 inches; circulation, 50,000. Foreign subscription price, $20 per annxun; advertising rates, $1.60 to $3.70 per inch. In English. The Standard, Rivadavia 835; morning daily; in English; established 1860; 8 to 16 pages, 16 by 23 inches; circulation, 5,500. Foreign subscription price, $19.44 per annum; advertising rates, $1.44 per inch. The Buenos Aires Herald, Corrientes 670; morning daily; in English; established 1880; 12 pages, 17^ by 22^ inches; circulation, 4,500. Foreign subscription price, $16.32 per annum; advertising rates, $0.72 per inch. Special New Year Number. Dedicated to the present and future commercial interests of the allied nations in Argentina, January, 1919. (G. Leonard D. Jones, B. A., Buenos Aires.) 192 pages; illustrations. GOVERNMENT PUBLICATIONS (OFFICIAL). *Anuario del Comercio Exterior de la Repiiblica Argentina. Direcci6a General de Estadlstica de la Nacion. (Talleres Grdficos de L. J. Rosso y Cia., Belgrano 475. Last edition 1918.) Showing principally Argentine imports and exports up to July 1, 1918. Boletln No. 178, contains statistics for the first six months of 1918. 134 ECONOMIC POSITION" OF ARGENTINA DURING THE WAR. ^Argentine International Trade, 1914-1915. Department of Agriculture. A few figures on its development. No. 8. Direction General of Commerce and Industry. (Department of Agriculture Printing Office, Buenos Aires, 1915; 64 pages; 1916, 61 pages.) ^Argentine Republic. Argentine Commission at the Panama-Pacific Exposition, San Francisco, 1915. Descriptive of the growth and position of Argentina. 88 pages. *Bunge, Alejandro E. (Director General of Statistics of Argentina.) Riqueza y Renta de la Argentina, su Distribucion y su Capacidad Contributiva, 1917. (Agenda General de Librerfa y Publicaciones, Calle Rivadavia 1573.) One volume. *Memoria del Departamento de Hacienda, 1917. (Talleres Grdficos Argentinos de L.J. Rosso yCia., 471 Belgrano, 1918, Buenos Aires.) A yearly publication of the Treasury Department of Argentina. ^Northern Patagonia — Character and Resources. Ministry of Public Works, Bureau of Railways, Argentine Republic. Text and maps by the Comisi6n de Estudios Hidrologicos, Bailey Willis, director, 1911-1914. Volume I, A Study of the Elements of Development in the Region Tributary to the National Railway from Port San Antonio to Lago Nahuel Huapi and the extension to Valdivia, Chile, including the Andean Lake district. 464 pages. SPECIAL PUBLICATIONS. *Argentina Commercially Considered, 1918. (Syren & Shipping (Ltd.), 91-93 Lead- enhall, London, E. C. 3.) New York Agents: 147 W. Eighty-second Street. 106 pages. *Tomquist, Carlos A. , Balance of Payments of the Argentine Republic for the Economic Year 1916-1917. (Carbone & Reyes, San Martin 85, 1918.) 41 pages. *Tomquist, Ernesto & Co. (Ltd.), Buenos Aires. Reports 140-143, Business Condi- tions in Argentina. (Report No. 143 written December 30, 1918. 29 pages.) WEEKLY AND MONTHLY PUBLICATIONS. Caras y Caretas, Chacabuco 151-5; illustrated weekly; established 1897; 100 to 120 pages, 7 by 10^ inches, printed on halftone news and coated book; circulation, 90,000. Foreign subscription price, $8 per annum; advertising rates, quarter page $46.32 to $67.55, half page $106.15 to $127.38, full page $159.22 to $191.07. Printed by Caras y Caretas, Buenos Aires. Mundo Argentine, Chacabuco 685; illustrated weekly; established 1910; 24 pages, 10^ by 14^ inches, printed on halftone news and coated book; circulation, 115,000. Foreign subscription price, $3 per annum; advertising rates, $6.05 to $8.60 per inch to $396 per page. Printed by Sue. de Ricardo Radaelli, Buenos Aires. *Review of the River Plate. Weekly; established 1891. (Danvers & Co., Calle Bartolome Mitre 427, Buenos Aires. New York agents: Donnell & Palmer, White- hall Building, 17 Battery Place.) Price, $24 paper, post free. Gives authentic information regarding commerce, industry, and finance, and weekly reports on cereals, wool, and meat. *Revista de Economla y Finanzas, Avenida de Mayo 760; commercial bimonthly; established 1911; 24 pages, 8^ by 12 inches; circulation, 5,000. Foreign subscrip- tion price, $8 per annum; advertising rates, $40 per page, per month. Buenos Aires. *South American. A monthly journal for all interested in Latin American affairs. (South American Publishiiig Co. (Inc.), 61 Broadway, New York.) Price, 25 cents; by the year, $2.50; foreign, $3. *Trade Gazette. Monthly publication. (Official international organ of the British and Latin American Chamber of Commerce. English, Spanish, and Portuguese editions, London.) (Argentina — "Progress and Possibilities," Vol. I, No. 5, October, 1917, pagfes 18-20.) (A complete list of Argentine daily, weekly, bimonthly, and monthly publications may be found in Special Agents Series No. 163, published by the Bureau of Foreign and Domestic Commerce, Washington.) *Year Book, Argentine. (See Year books.) Atlases. *Century Atlas of the World. (The Century Co., New York, 1914.) 431 pages. Cram's Modern Reference Atlas. The United States and World. A complete and comprehensive index of all loreign countries. Facts carefully compiled from latest reliable official information. (George F. Cram Co., 130 Fulton Street, New York; 107 N. Market Street, Chicago, 1917.) ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 135 Donnelley 'a National Classified Telephone Directory and Buyers' Guide; *'The National Red Book." February, 1918. Issued semiannually. (The Reuben H. Donnelley Corporation, 227 Fulton Street, New York; 633 Plymouth Court, Chicago.) 1027 pages. *New Mercantile Marine Atlas. A series of 35 plates containing over 200 charts and plans. With tables of 10,000 distances between ports, national and commercial flags, cable and wireless telegraphy charts, with list of wireless stations, lists of United States and British consulates, and complete index of 20,000 ports, etc. Edited b^r George Philip, F. R. G. S. (C. S. Hammond & Co., New York, 1918; sixth edition.) *Rand McNallv International Atlas of the World. Containing large-scale colored maps of each State, Territory, and outlining possessions of every country in the world ; each map accompanied by a page of letter press, covering area, population, resources, industries, climates, etc., of each State or country. A ready reference index on the margin of each map. (Rand McNally & Co. , Chicago and New York, 1915.) 329 pages. *Rand McNally & Co.'s New Imperial Atlas of the World. New official census. A ready-reference marginal index. (Rand McNally & Co., Chicago and New York, 1917.) Pan American Union Publications. Bulletin of the Pan American Union: (An illustrated monthly magazine . ) Carefully illustrated with halftone engravings, printed on high-class paper, equally suited to the library table or business desk, giving in attractive, readable, and reliable form that class of information, des- criptive, commercial, general, and specific, which is desired by all classes of persons interested in Pan American process and development. It is published monthly in four editions, one entirely m English for circulation in the United States and other English-speaking countries, the others in Spanish, Portuguese, and French for circulation in Latin America, Europe, etc. Subscription rates. Bulletin of the Pan American Union: English edition, in all countries of the Pan American Union, $2.50 per year. Spanish edition, in all countries of the Pan American Union, $2 per year. Portuguese edition, in all countries of the Pan American Union, $1.50 per year. French edition, in all countries of the Pan American Union, 75 cents per year. All four editions, in all countries of the Pan American Union, $5.25 per year. An additional charge of 75 cents per year on each edition for subBcriptiona in countries outside the Pan American Union. Mining and tariff laws: 22. Argentine Tariff Law, English translation edited and published by the Pan American Union, February, 1911, price, 25 cents. For free distribution (under certain conditions): The Pan American Union has for free distribution a limited supply of the following publications; but in view of the overwhelming demand for many of them and the cost of printing, it has been found necessary to make a new regulation, that all requests for such matter must be made through, or with the approval of, a United States Senator or Member of Congress, except in the case or^ applications from foreign countries, which should be made through the embassies or legations in Washington or through the home foreign offices. Requests should be made only for those publications that are absolutely needed, as the number of publications that may oe sent to any one applicant is restricted. Bibliographical Bulletins: 21. Latin American History andDescription. List of books in the Columbus Memo- rial Library of the Pan American Union. November 1, 1907. 98 pages, 8°. Same. Supplement No. 1. Novemberl,1907,toJuly8, 1909,34pages,8°. Same. Supplement No. 2. July 9, 1909, to June 1, 1914, 136 pages. General data: 165. Latin American Civilization, A Glance at. By Francisco J. Yanes, Assistant Director and Secretary of the Governing Board of the Pan American Union. Reprinted from the Journal oji Race Development, April, 1914. 20 pages. 161. Latin American, Contrasts in the Development of Nationality in the Angloand. Address delivered by Frederico A. Pezet, ex-minister of Peru, before the Anthropological Society. 16 pages. 136 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 232. Latin American Porei^ Trade as Affected by the War. 12 pages; diagrams. Reprinted from the Bulletin of the Pan American Union, January, 1918. 242. Latin American Trade. A Comparative Survey. 20 pages reprinted from Bulletin of the Pan American Union, December, 1918. 204. Latin American Trade. Foreign Trade in 1917. A general survey. Maps: 145. Latin America, Showing Railroads of, in Operation and under Construction. Prepared by the Pan American Union. 1913. Size 16 by 21 inches. Miscellaneous: Rosario, Argentina's Second City. Reprinted from the August (1918) Bulletin of the Pan American Union. Special data by countries: 72. {a) Argentina. General descriptive data. Illustrated. 128. (a) Argentina, Commerce of, for 1917. 85. Aigentine International Trade. A Few Figures on Its Development. Com- piled by Division of Commerce and Industry. 64 pages. Buenos Aires, 1915. 141. Argentine Republic, Land in the. Including homestead law of September 28, 1917. 404^ El "Veraneo" en la Argentina. 12 pages; illustrated. (In Spanish.) • 405. The Argentine Universities. 8 pages; illustrated. (In Spanish.) 443. General descriptive data, Argentina. (A complete "list of publications" is published and distributed by the Pan Apieri- can Union, Washington, D. C.) Reference Books. Aughinbaugh, W. E., Md., LV. B., LV. M., "Selling Latin America." (Small, Maynard & Co., Boston, 1915). 408 pages. Filsinger, Ernest B., "Exporting to Latin America." A handbook for merchants, manufacturers, and exporters. (D. Appleton & Co., New York, 1916.) 565 pages. Fraser, John Foster, "The Amazing Argentine." With 48 plates from photographs. (Funk &Wagiialls Co., New York.) 291pa§es. *Halsey, Frederic M., "Railway Expansion in Latin America." The Argentine Republic, pages 7-31. (The Moody Magazine & Book Co., 1916.) 170 pages. *Halsey, Frederic M., "The Railways of South and Central America." A manual containing statistics and other information concerning the information about the important railways of South and Central America, Mexico, and the West Indies. 1914 edition. (Francis Emory Fitch (Inc.), publishers to the American Banker, 47 Broad Street, New York.) 183 pages. Argentina, pages 9-34. *Hammefton, J. A., "The Real Argentine." With numerous illustrations. (Dodd, Mead & Co., New York, 1916.) 453 pages. Hirst, W. A., "Argentina." With an introduction by Martin Hume, M. A. With a map and 64 illustrations. (T. Fisher Unwin, Adelphi Terrace, London. First edition, 1910. Fourth impression, 1914.) 306 pages. Koebel, W. H., "British Exploits in South America." A history of British activi- ties in exploration, military adventure, diplomacy, science, and trade, in Latin America. Illustrated with photographs and old prints. (The Century Co., New York, 1917.) 587 pages. ^Martinez, Albert B. and Lewandowski, Maurice, "The Argentine of the Twentieth Century." (T. Fisher Unwin, Adelphi Terrace, London, 1915.) 376 pages. *Mills, George J., "Argentina." With introduction by W. H. Koebel. Physical features, natural resources, means of communication, manufactures, and industrial development. (D. Appleton & Co., New York, 1914.) 209 pages. *^Ross, Gordon, "Argentina and Uruguay." With 12 illustrations, 4 diagrams, and a map. (Macmillan Co., New York, 1916.) 308 pages. Stephens, Henry, A. B., Ph. D., "Illustrated Descriptive Argentina." Containing numerous illustrations. (Knickerbocker Press, New York, 1917.) 763 pages. Todd, John A., B. L., "The World's Cotton Crops." With 32 page illustrations and 16 maps and diagrams. (A. & C. Black (Ltd.), 4, 5, and 6 Soho Square, London, W.,1915.) 460 pages. *" Twentieth Century Impressions of Argentina." Its historjr, people, commerce, industries, and resources. (Lloyd's Greater Britain Publishijig Co. (Ltd.), 1911.) Niuuerous illustrations. 850 pages. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 137 United States Government Publications (Official). ^Agriculture Department: Yearbook of the United States Department of Agriculture, 1918. (Government Printing Office, Washington, 1918.) 853 pages. Commerce Department: Bureau of Foreign and Domestic Commerce publications: The special publications of the bureau are divided into four groups: (1) Special Agents Series, which comprises monographs on special industries and special phases of commerce, prepared by the special agents; (2) Special Consular Reports; (3) Foreign Tariff Series; (4) Miscellaneous Series. The bulk of the information relating to foreign markets for American goods is obtained from the Consular Service, the traveling special agents, and the commercial attaches. The statistics of American trade with foreign countries are collected at American customhouses in cooperation with the Treasury- Department. Copies of the publications listed may usually be obtained for the price stated by writ.ing to the district offices of the bureau or to the Superintendent of Documents, Government Printing Office, Washington, D. C. The cooperative offices have copies for those who call in person, but do not sell by mail. Branch offices of the Bureau of Foreign and Domestic Commerce: District offices : New York, 734 United States Customhouse. Boston, 1801 United States Customhouse. Chicago, 1424 First National Bank Building. St. Louis, 402 Third National Bank Building. New Orleans, 1020 Hibernia Bank Building. San Francisco, 307 United States Customhouse. Seattle, 848 Henry Building. Coopera tive offices : Cincinnati, Chamber of Commerce. Cleveland, Chamber of Commerce. Los Angeles, Chamber of Commerce. Philadelphia, Chamber of Commerce. Portland, Oreg., Chamber of Commerce. Dayton, Chamber of Commerce. Classification by subjects — Agricultural implements and machinery: Markets for Agricultural Implements and Machinery in Argentina, by Frank H. von Motz. Special Agents Series No. 125; 1916; 86 pages^ Price, 10 cents. Banking and credits: Banking and Credit in Argentina, Brazil, Chile, and Peru, by E. N. Hurley. Special Agents Series No. 90; 1914; 72 pages. A study of the relations of banks and banking to trade in South America. Price, 10 cents. Financial Developments in South American Countries, by William H. Lough. Special Agents Series No. 103; 1915; 42 pages. Price, 5 cents. ^ Banking Opportunities in South America, by William H. Lough. Special Agents Series No. 106; 1915; 156 pages. A report on the opportunities in in South America for establishing American banking institutions, now that our banks are permitted by law to have branches in foreign countries. Price, 20 cents. Canned goods: *South American Trade in Canned Goods, by E. A. Thayer. Special Agents Series No. 87; 1914; 36 pages. Out of print. Coal: Coal Trade in Latin America. Special Consular Reports No. 43, part 1; 1910; 32 pages. Contains reports on the trade in Mexico, the West Indies, and Central and South America, presenting information as to volume and values of trade, sources of supplies, prices, methods of handling, etc. Price, 5 cents. Commerce Reports: Commerce Reports (daily consular and trade reports), published daily, with supplements containing annual reviews of trade by the consuls covering every country of the world. Price, $2.50 per year, or $6 for the four quarterly volumes bound in cloth with index, but without supplements. Single copies of the daily, 5 cents. 138 ECONOMIC POSITION OF ARGENTINA DURING THE WAR, Commerce Department — Continued. Bureau of Foreign and Domestic Commerce publications — Continued. Classification by subjects— Continued. Cooking fats: Cooking Fats in South America. Special Consular Reports No. 67; 1915; 15 pages. Review of the South American trade in such cooking fats as lard, tallow, and vegetable oils. Price, 5 cents. Cotton and cotton goods: Cotton Goods in Latin America, Part III— Argentina, Uruguay, and Paraguay, by W. A. Graham Clark. Special Agents Series No. 40; 1910; 52 pages. Exhausted. Drugs, patent medicines, etc.: South American Markets for Drug Products, Patent and Proprietary Medi- cines, Surgical Instruments, and Dental Supplies, by E. A. Thayer. Spe- cial Agents Series No. 85; 1914; 75 pages. Price, 10 cents. Fruit: South American Markets for Fresh Fruits, by Walter Fischer. Special Agents Series No. 131; 1917; 163 pages. Countries covered are Brazil, Argentina, Uruguay, Paraguay, Peru, and Chile. Price, 25 cents. South American Markets for Dried Fruits, by Walter Fischer. Special Agents Series No. 148; 1917; 35 pages. Price, 5 cents. General trade conditions: Trade Development in Argentina, by James Davenport Whelpley. Special Agents Series No. 43; 1911; 94 pages. Devoted principally to two sub- jects — sea-transport service of Argentina and the meat production and export. To this are added notes on the market for various American products and on the Argentine Centennial Exposition and the progress of agriculture. Price, 10 cents. South America as an Export Field, by Otto Wilson. Special Agents Series No. 81; 1914; 216 pages. Gives in condensed form such information as to the character, extent, resources, and trade of South American countries as will enable manufacturers and exporters not familiar with conditions in that field to determine, in part, the most favorable markets for their goods. Price, 25 cents. Consular Recommendations on South American Trade. Miscellaneous Series No. 20; 1914; 29 pages. Reprint of articles first appearing in the Daily Consular and Trade Reports. Embodies chief recommendations of consular cflficers as to the methods best adapted to increasing the trade of the United States in South America. Price, 5 cents. Statements on the Latin American Trade Situation. Miscellaneous Series No. 18; 1914; 39 pages. A report on the statements made by representa- tives of Latin American countries at a conference held before the Secre- tary of State and the Secretary of Commerce, at Washington, D. C, Sep- tember 10, 1914, dealing especially with unusual situations arising from the outbreak of war in Europe. Price, 5 cents. Hardware: Markets for American Hardware in Argentina, Uruguay, and Paraguay, by Albert Hale. Miscellaneous Series No. 43; 1916; 64 pages. Price, 10 cents. Investments: Investments in Latin America and British West Indies, by Frederic M. Halsey. Special Agents Series No. 169; 1918. Price, 50 cents. Lumber: Lumber Markets of the East Coast of South America, by R. E. Simmons. Special Agents Series No. 112; 1916; 121 pages. Price, 25 cents. Machinery and machine tools: Machine Tools in Latin America. Special consular reports No. 58; 1913; 32 pages. Price, 5 cents. Markets for Machinery and Machine Tools in Argentina, by J. A. Massel. Special Agents Series No. 116; 1916; 64 pages. Price, 20 cents. Motor vehicles: Argentine Market for Motor Vehicles, by David Beecroft. Miscellaneous Series No. 62; 1917; 27 pages. Price, 5 cents. Paper: Paper, Paper Products, and Printing Machinery in Argentina, Uruguay, and Paraguay, by R. S. Barrett. Special Agents Series No. 163; 1918; 165 pages. Price, 20 cents. ECONOMIC POSITION OF ARGENTINA DURING THE WAR. 139 Commerce Department — Continued. Bureau of Foreign and Domestic Commerce publications — Continued. Classification by subjects— Continued. Shoe and leather trade: Shoe and Leather Trade in Argentina, Chile, Peru, and Uruguay, by .Arthur B. Butman. Special Agents Series No. 37; 1910; 72 pages. Out of print. Boots and Shoes, Leather, and Supplies in Argentina, Uruguay, and Para- guay, by Herman G. Brock. Special Agents Series No. 177; 1919; 182 pages. Price, 25 cents. Soap: South American Market for Soap. Special Consular Reports No. 66; 1915; 16 pages. Price, 5 cents. Tanning materials: Tanning Materials of Latin America, by Thomas H. Norton. Special Agents Series No. 165; 1918; 32 pages. Surveys the tannin-bearing plants and trees in South and Central America and Mexico, and reveals the resources these countries, thus far only slightly exploited , for meeting the increasing demands for tanning materials. Price, 5 cents. Tariffs: The following publications concerning the tariffs of foreign countries may be had from the Superintendent of Documents and the district and cooper- ative offices of the Bureau of Foreign and Domestic Commerce at the prices indicated . Tariffs, of course, are subj ect to more or less frequent changes, and old publications on the subject are of little value. This list includes only such bulletins as were still authoritative when the catalogue was sent to press. Tariff Series: No. 24. Consular Regulations of Foreign Countries: Canada and Latin America (revised edition); 1915. Price, 10 cents. No. 31. Registration of Trade-marks in Latin America; 1916. Free. No. 32. Import Duties on Textiles in South America; Part I — Argentina; 1916. Price, 5 cents. No. 34. Tariff Systems of South American Countries. 1916. Price, 25 cents. No. 35. Commercial Travelers in Latin America; 1916. Price, 10 cents. Wearing apparel: Wearing Apparel in Argentina, by Lew B. Clark. Miscellaneous ISeries No. 68; 1918; 158 pages. Price, 20 cents. Miscellaneous: *Foreign Commerce and Navigation of the United States. By articles and countries. Containing summary, tables of foreign commerce and sta- tistical tables of foreign commerce of the United States. Issued annually by the Bureau of Foreign and Domestic Commerce. *Navy Department, Port Directory of the Principal Foreign Ports. Office of Naval Intelligence, 1911. (Government Printing Office, Washington, 1911.) Treasury Department: ^Annual Report of the Director of the Mint for the Fiscal Year ended June 30, 1918, including report on the Production of the Precious Metals during the Calendar Year 1917. (Government Printing Office, Washington, 1918.) 259 pages. Argen- tina, pages 171-174, 244. ^Proceedings of the First Pan American Financial Conference Convened by A.uthor- ity of the Congress of the United States under the direction of Hon. William G. McAdoo, Secretary of the Treasury. Washington, May 24-29, 1915. Published by the Government Printing Office, Washington, 1915. 744 pages. Year Books. ^American Year Book, 1918. Edited by Francis G. Wickware, B. A., B. Sc, with cooperation of a supervisory board representing National Learned Societies (D. Appleton & Co., New York and London, 1919). 850 pages. Argentina, page 123. ^Argentine Year Book^ 1915-1916 (tenth) edition. (Robert Grant & Co., Calle Can- gallo542, Buenos Aires), U. S. A. Agents: Donnell & Palmer, Whitehall Building, 17 Battery Place, New York. 406 pages. *Latin American Year Book for Investors and Merchants for 1913-1919. (Criterion Newspaper Syndicate (Inc.), New York.) 1919 edition contains 552 pages; Argen- tina, pages 9-66. 140 ECONOMIC POSITION OF ARGENTINA DURING THE WAR. *'' Shipping World" Year Book and Port Directory: A Desk Manual in Trade, Com- merce, and Navigation. Edited by Major Evan Rowland Jones, 1913. (The ' ' Ship- ping World '^ Offices, Effingham House, Arundel Street, Strand, W. C.) 1848 pages. Argentina, pages 1077-1081. ^South American Year Book and Directory (incorporating the South American Rail- way Year Book, South American Annual, and South American Blue Book). 1915. (Louis Gassier Co. (Ltd.), 33Bedford Street, Strand, London, W. C.) Gi\ing railway, political, and general information. *Statesman's Year Book, 1918 (fifty-fifth annual publication). Statistical and histor- ical annual of the States of the world for the year 1918. (Macmillan and Co. (Ltd.), St. Martin's Street, London.) 1488 pages. Argentina, pages 638-648. *Stock Exchange Year Book for 1916. (Forty-second edition.) A careful digest of information relating to the origin, history, and present position of each of the public securities and joint-stock companies known to the markets of the United Kingdom. (Thomas Skinner & Co., 76-81, Gresham House, Old Broad Street, E. C, London.) 2278 pages. ^Industrial Union of Argentina: An organization composed of the manufacturers, exporters, and merchants of Argentina for the purpose of increasing the resources of Argentina. The Boletin de la Union Industrial Argentina (Calle Bolivar, 260) is published monthly in Buenos Aires by this Union. 14 DAY USE 1 RETURN TO DESK FROM WHICH BORROWED LOAN DEPT. This book is due on the last date stamped below, or on the date to which renewed. Renewed books are subject to immediate recall. i APR 1 3 1958/'pi l/ft REC'D LD APR 71958 iSOEC'fiO^f ttc 151967 1 ^r ^987T RF-""-- AUG?r67 6 PM LOAN DEPT. CMC fU'^o'*' r?flRl 3 6 7'4Pft t -** *1SJ*- LD 21A-50m-8,'57 (C8481sl0)476B General library University of California Berkeley Y.C 80178 ' T — ^ ^- HC' ■' ..,..^- UNIVERSITY OF CALIFORNIA UBRARY