Nowell Lake Watson

“ ENGLISH TRADE. ITS POSITION AND PROSPECTS.
It is always difficult to entice commercial men into giving information of any value regarding their affairs. The seeker after more material and solid things than figures—after instances and facts rather than theories—is very apt to be disappointed. The value of the opinions gleaned was rather impaired when experience showed that success and complacency, despondency and comparative failure, usually went together. It is pleasant to be told not to bother about British Trade, that “British trade is all right.” ”

“ In every case of manufacture, the two obvious economic reasons are either the ability to produce better or the ability to produce cheaper. The former is out of the question in the Argentine, because there is no hereditary or traditional skill, nor special climatic conditions as in Manchester; the latter, for the same reason, can only be a question of freight. Any article to be consumed at home, and produced mainly from native raw material should, prima facie, be capable of production at home for that consumption, granted an adequate supply of labour. ”

“ But with a strange perversity politicians have persistently advocated a high protective tariff for the purpose of fostering industrial development. The result has been that certain industries have cropped up under this system, which are quite incapable of independent existence, and, while satisfying neither the employers nor their men, constitute a very heavy drain on the national purse. The chief objection, however, to the policy is that it invites a class of immigrant who is really not required in the country and who has taken to settling in the capital instead of scattering into the camp. ”

“ The main supports of the country are, therefore, cereals and cattle, the latter being undoubtedly the more profitable investment, but requiring a much larger capital. By Argentine, as by French, law property at death is compulsorily divided, and this tends to split up the now immense tracts of land occupied by individuals. Whatever the social advantages of such a system may be, it is not conducive to the most economic working, nor yet to the breeding of the finest strains of stock, for which a large capital is required. ”

“ Fortunately, these opinions are not shared by the Government, nor, probably by the people generally, who, although always complaining of high freights, delay in transport, and all the other grievances for which every railway under the sun is blamed, seem to dread the alternative of Government control. The official members of the Government are on the whole considered to be sincere, industrious men, with a genuine desire to do their best. ”

“ Argentina at one time seemed more than likely to compete with Australia and Canada in this respect, trying to allure colonists with impossible promises of free land and gigantic crops, and only the untiring efforts of the Englishmen already established there have prevented that country realising the inevitable consequence. The present Argentine Government admit the unsuitable nature of the country for impecunious Englishmen, and confine their attentions to attracting Italians and other foreigners, for whom the climate and conditions of labour are certainly more adapted. ”

“ For some goods, special lines of purely local popularity, which European houses would not make for other customers, there are points in favour of local production. But in such things as socks and articles of general clothing, that command a universal market (with differences only in design) , it is found cheaper to import. It must be added that there is comparatively little demand for woollen goods at all in the Argentine itself. Though the tariff, therefore, does not impose a great burden on the people, from its protective aspect it is encouraging an unprofitable industry. ”

“ The truth is that, as is heard from all parts of the world, special knowledge or capital is indispensable in every new country, but that with these the chances of success in life are considerably greater than at home. To the Englishman, however, in the Argentine, there is the additional difficulty of the language—a difficulty which were he not- 21 - an Englishman would be almost negligible, for Spanish is an easy language of which to acquire a working command.
It is the firm belief of every Englishman, apparently, that certain skill in athletics of necessity qualifies him for cattle farming. ”

“ If those in power fail to convince the country of any sincerity or appreciation of their responsibilities, the people themselves do not treat the authority of government with the respect that alone permits the growth of those qualities of statesmanship whose absence is so very obvious. ”

“ In the second place, living in the capital is extremely dear, not least being the price of house accommodation. Although an Italian can satisfy his requirements at a much lower rate than an Englishman could his, yet even he can scarcely make both ends meet, while the excess of expenditure over receipts is particularly galling in the land of promise. ”

“ The immigrant required is the “colonist,” to whom the country is already beginning to owe much of its prosperity. There are two distinct types of colonist—the one who buys his land on a permanent colony, and builds a decent house, and the temporary tenant whose economic principle is to break the soil of new land, and moves to a new district at the end of his term. The latter owes his origin to the cultivation of “alfalfa,” the wonderful clove-like plant that will grow on sand, and requires no rain, but thrives on the surface water which abounds in the country’s flat, low-lying plains. ”

“ With the exception of railway material, which for the most part, comes in duty free, all manufactured articles pay a very heavy duty indeed. But, whereas in almost every other country of note, some portion at least of the raw material is procurable locally, or at least from no great distance, in the Argentine the most elementary of basic materials have to be imported. With the exception of wool, grain, cattle, a special quality of timber, and sugar, there are no raw materials at all available for industrial purposes. There are no minerals; cotton is a negligible quantity at present ”

“ It seems to be the ambition of every new country to secure immigration at all costs, regardless of the prospects that really exist there, and also of the true interests of the country. The result of this policy at its best leads only to a boom, with its inevitable reaction. The wiser plan of letting the country gradually develop itself, admitting cheerfully the adventurous spirits who are ready to come without invitation or advertisement rarely seems to commend itself to colonial politicians. ”

“ But the essential fact in Argentine Economics, and one which seems more than obvious, but apparently escapes the comprehension of Argentine legislators, is that the country is naturally, and must remain for some considerable time, a producer of raw material exclusively. The country is still considerably- 2 - under-populated for the development of its natural resources, while only a small portion of the settled area is yet producing even half the yield of which it is immediately capable. Immigration of a certain class—capable agriculturalists with some capital—is still required. ”

“ The great privileges which the railways enjoy, especially in the matter of tariff, were granted in pursuit of a declared policy of encouragement to railway enterprise—a policy which no one there has reason to regret, as without it the country would never have emerged from its former lethargy. ”

“ Work is very hard, though often the actual conditions of life are extremely comfortable, but the education required is thorough and qualifies for a position of majordomo at the end of the contract. Many men who possess some capital, or expect to possess it, also go through this training as it enables them to invest their money wisely, and later to work it economically.
There are many, however, who find the work and conditions of life trying, especially on an inferior estancia, and take the first opportunity offered to change their occupation. The usual change is to a bank or a railway. ”

“ That jealousy of foreign—especially English—influence exists in a certain section of the people is undoubted. But, considering that the true Argentine population—supposing that such a thing exists or could be defined—is very small compared with the foreign element, and that of itself it is absolutely incapable of developing the country, some other reason must exist to justify the position. ”

“ A mischievous result of the financial standing of many of the colonists is their frequent lapse into the power of the local store-keeper. There are no branch banks in the camp towns and often no grain dealer apart from this accommodating tradesman. In return for very elastic credit, based on crop expectations, he buys the whole yield at his own price, and, as he has a monopoly of the retail trade as well, he secures a large profit on both transactions. ”

“ Although he is physically well enough suited to camp life, the whole truth is apt to be a disillusionment. The market for athletic young men is already glutted, and though many estancieros take on an additional overseer or apprentice to please a friend, in many cases they do not in the least appreciate bestowing the favour. It must not be supposed that Englishmen are not wanted on estancias. On the contrary, even Argentines usually prefer an English manager. The only difficulty is that the supply of raw material exceeds the demand. ”

“ In cotton goods there is again a natural monopoly—the preponderating Italian influence among the working classes encouraging the trade with that country in the special line of goods which appeals to them. ”

“ English engineers seem to prefer a solid, well-finished engine, which can stand accidents, and innumerable repairs. The Baldwin engine is cheap, but apparently of indifferent finish, and is built on a rigid frame. The slightest accident to this incapacitates the whole machine, and, in any case, the locomotive is built for hard use over a short period, with subsequent scrapping. Neither the traffic nor the capital of Argentine railways justify such a course. ”

“ The undeniable ingenuity and neatness of American products is, unfortunately, very often combined with bad workmanship. In Argentine, according to some authorities, disappointed buyers of American goods are returning to more solid work. Undoubtedly the field for cheap goods is favourable in that country, the moneyless colonists being compelled to buy them irrespective of quality. Besides, there is a delight, to which the Italian is peculiarly susceptible, in always having something new. A bright and new thing pleases most people more than a solid article many years old. ”

“ The English merchant frequently complains that he cannot come into touch with his ultimate customers. The taxes levied on commercial- 39 - travellers are exorbitant, each province vying with the other in preventing their entrance. From this it follows that few firms can afford to send representatives further afield than Buenos Aires or Rosario, and practically all business is conducted through the larger importing houses of the capital. This is an absolutely prohibitive system that is bound to have the most disastrous effects on the expansion of trade. ”

“ For various reasons industrial labour is entirely supplied by Italian immigrants, mostly Neapolitans. The other nationalities who come into the country engage for the most part in agricultural work, either as colonists,- 14 - buying their land, or as tenant farmers on short leases. Skilled English and other European labour is also employed in factories, but only for the higher grades of work, and in positions of some responsibility. Thus the available labour is recruited from the lower class of immigrants, and from a race not remarkable for stability. ”

“ When a foreign loan has been contracted in the name of a municipality or provincial government, at the expense of the people at large, but is used purely for party or even private ends, it is at least comprehensible that an opposing party should regard the loan as an unwarrantable exploitation of the public, and should think it justifiable to allow the creditors to suffer instead of their- 18 - own countrymen, who were no party to the transaction. The policy and ethics of such a view are another matter. And it is, as usual, the honest who suffer. ”

“ Every scholar must enter the University of Manchester for one Session for a course of study approved by the electors. The remainder of the time covered by the Scholarship must be devoted to the examination of subjects bearing upon Commerce or Industry in Germany or Switzerland, or in the United States of America, or partly in one of the above-mentioned countries and partly in others, but the electors may on special grounds allow part of this period of the tenure of the Scholarship to be spent in study and travel in some other country or countries. ”

“ The increase in electric traction in England ought to furnish the experience necessary for the successful development of this branch of trade.
- 36 - In Agricultural machinery the market is absolutely open, and where there is any opportunity, English firms have undoubtedly succeeded. It is unreasonable to expect that we should be able to compete with the States in sowing, reaping, ploughing, and similar machinery, provided as they are with an experimental field with conditions similar to those prevalent in the Argentine. But in traction engines the Lincoln firms outstrip all their competitors. ”

“ Having had, and still having, a practical monopoly in their own districts, the various companies have adopted a somewhat despotic attitude towards new and outside enterprise, and, sometimes a disregard for the requirements of their customers, as well as for the true needs of the country. Railway affairs centre in River Plate House, and any attempt on the part of outsiders to establish themselves in the Argentine is viewed with great suspicion by the financial ring that rules there. ”