British Interests in the Argentine.
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Another Country Throughout which our "Dominion and Overseas" Issue will Spread Up-to-date Inlormation.
Sir John Bonn, DL., J.P., L.C.C., recently addressed the London Chamber of Commerce. The Argentine was his particular subject, and the words of the top line of this page provided the exact title which he adopted. Sir John spent six weeks over a rapid series of visits " up country," apart from the time which he spent in Buenos Aires. He disclaims the right to talk authoritatively, solely by reason of a short visit, but his paper indicates acute powers of observation, whilst the facts and data are from unimpeachable sources, The following are but a few sections in his address, and some of them have been paraphrased. Some of our readers, no doubt, may elect to obtain full copies of the complete text from the Secretary of the London Chamber of Commerce. We are most
of all struck by the testimony to the transport developments ahead, and to the fact that only some 7,000,000 people are now found in a country which can readily support not fewer than 70,000,000! Already, in connection with our fresh schemes for new " missionary " work in South America generally, we are busy with the compilation of lists of selected additional addresses, for practical use by its in December next, at Bahia Blanca (the Liverpool of the Argentine), Mendoza (the great winegrowing district); Rosario (the growing port of the river Parana), La Plata, Cordoba, and a dozen other picked centres of both present and potential interest to the heavy branches of the motor and allied industries. We invite additional lists from local subscribers.
Among the. first questions which rise to the lips of those who are inquiring about the Argentine are: " Is the Government stable? Is its present prosperity likely to be permanent? Is the British investment in railways and general commerce justified? Are we losing our share of the Argentine market, and if so, how can we keep it? What are the openings for further British trade in the country?"
The Government.
Outside the comparatively-narrow circle of those who know the Argentine front personal inspection, the impression prevails that it is still a semi-savage land of revolvers, knives and revolutions. These pessimists think that justice and good government are uncertain, and that all investments, at the best, must be risky. My observations on the spot have certainly placed me among the optimists. As to the Government, my best answer to critics would be that it is no better and no worse than many which serve for countries which boast an older civilization and in regard to which investors have no qualms. That improvement in the Government is possible, goes without saying. But I submit that the recent Centsnario entitled the Argentine to a full certificate fur civilization. Those celebrations showed, not only marvellous development, but a Mobility and restraint of the population affording the best. evidence of settled and efficient administration.
We must remember that the Argentine is a country five and a half times the area of France, and that its population and peesperity have increased by leaps and bounds.
Buenos Aires and its Marvellous Growth.
It. is not too much to say that the first sight 01 the Argentine capital takes " one's breath away." In 40 years, Buenos Aires, which now covers twice the area of Paris, has increased its population sevenfold, i.e., from 177.000 in 1869, to the million and a quarter of to-day. The birth-rate—the true test, in my judgment, of genuine Empire building—is 34.31 per 1.000, as against 25.7 in London, while the death-rate is about the same in both places, i.e., about 15 per 1,000. Adorning its thousand streets are hundreds of buildings which may well be described as palaces, devoted to national and local government. universities, colleges, schools, museums, public libraries, hospitals and charitable institutions. The place. if one may say so, reeks with money.
Will the Staple Industries of the Country Carry such a Capital ?
This questiou may well be asked, and one which I will endeaveits to answer. To do so, it is necessary to see the immense wheat and maize-bearing lands of the interior, sending abroad their five and six millions of tons of grain per annum ; to ride over the vast, plains bearing, without any sign of depleted provender, vast myriads of cattle, and to realize that this limitless " pampio " carries 25,000,000 of horned cattle, to say nothing of sheep and pigs. Contemplating these enormous herds and flocks, thriving amid all weathers without shed or shelter, one comes to the conclusion that this is a corner of the -globe expressly reserved and equipped by Dame Nature as a world's food supply for her children.
And the. pasture lands. Since the introduction of Alfalfa (the Lucerne grass) what a sight they have become. I saw territories which a generation ago were regarded as hopeless desert, " blossoming as a ruse " with Alfalfa which had not been renewed for 20 years. I saw corn-growing lands which only asked for a scratching of the surface to yield crops. I saw manure burned as useless. I saw hares thrown in a heap as offal because there was better food forthcoming. I met men who a few years ago were dollarless, now the happy possessors of land and a competency. And away from the inner zone it was clear that cultivation was in its infancy : that with proper appliances—of course, British—knowledge and increased labour, the output could be largely increased. Apart from the wheat, the meat, the wool and the hides, I inspected the wine, the sugar and timber districts, and came unhesitatingly to the conclusion that stately Buenos Aires was but the national expression of great national resources.
The British Share in the Making of the Argentine.
It will be evident that such natural wealth as I have described is comparatively valueless without adequate means of communication. It is when one sees a sample of the 16,000 miles of railways that anxiety on this score ceases. Some farseeing Britishers—all honour to them—recognized the futme of Argentine railways, and were first in the field with well. equipped lines, constructed almost entirely of British material, starting from Buenos Aires and stretching their tentacles far into the interior. I travelled on all these lines, and would gladly, if time permitted, talk about them in detail. Some of them need no word to commend their stock. As to others lower down in the share list, I may say that the man who buys or holds on to "Argentines" cannot, in my judgment, lose his money. The wealth, in natural resources, is there in abundance. Without the railways it. cannot be turned into money, and so they must prosper. So well has the work been done that there are now about three miles of railway for every thousand inhabitants. The Argentine is thus in ale proud position of fourth in the list of the world's railways. This is due almost entirely to our enterprise and money. British capital is represented by about 130.000,000 of pounds, French by 8,000.000, and Argentine, for the State railways, by 16,000,000. Two-thirds of the lines, mostly British, have been wisely built on the broad gauge, the only gauge available for entering the ports. The French are all narrow gauge, a false economy which will, I think, seriously hamper them in the future. There are four or five leading companies, :ill British.
Passing from railways to shipping, a like record may be given of those fine services which carry the Union -Tack on the River Plate. More than half of the oversee tonnage sails under our flag.. The Royal Mail, the Pacific—now one—and such lines as those of Messrs. Lamport and Holt, still maintain it splendid fashion Britannia's nautical pre-eminence. That such services should provoke fierce foreign competition is but natural, and it has certainly secured an increasing freightage, but with pruner attention, and a much-needed accelerated service, Great Britain has nothing to fear in the South Atlantic. The British name is also honourably associated with several great insurance companies and bank-s. The Argentine owes much to their steadying influence and high standard of finance.
With regard to banks, foreign financiers with easier terms and ways relieve our establishments of much business. Indeed. I think that more adaptability to Argentine methods might, without undue risk, increase our bank dividends. But there is one Argentine phrase which constitutes an unrivalled testimonial to the probity of our country. If a bargain is made which must be above suspicion, it is made " on the word of an Englishman." That phrase in Spanish stands as the gold standard in Argentine business morals. Another industry which interested me much had to do with the preparation of chilled or frozen meat. Two of these refrigerator companies are Argentine, two are North American, and three are British. As a type of others, I inspected Las Palmas, owned by the highly-esteemed firm of Ntessrs. Nelson. and watched from start to finish the process of converting cattle into food. Some 5,000 sheep, 750 bullocks and 500 pigs are dealt with, per day, at this huge factory, from first to last with the greatest dispatch and cleanliness.
Hardly less important than the meat is the trade in skins, hides, fats and other by-products, extending to bone dust and fertilizers. Nothing is allowed to escape either use or extinction, for perfect sanitation is the rule of the huge factory and community, where some two or three thousand well-paid operators find constant work. As is well known, a North Amenean trust is endeavouring to absorb these British meatpreserving installations. I do not think they will succeed. tor our countrymen can well hold their own, and I venture to hope that their hands will be strengthened by British support,
Passing front meat to general commerce, the Britisher has also had his share of business. The question is: "Is he keeping it?" and that leads me to talk of imports.
How Far we are Affected by Other Foreign Competition.
The imports to the Argentine mainly consist of supplies fur the needs of its army of railway, wheat and meat producers and their employees. Sixty per cent, of those imports reprepresent agricultural implements, building and railway material, coal, and, last but, not least, clothing for the workers. A few years ago the Britisher distanced all competitors, but latterly the German and the Frenchman have taken an bacreasing share of the business. Here are the figures for a recent period of ten years supplied to me by Mr. Carnegie Ross, C. 13.. our excellent Consul at Buenos Aires :— Tt will be seen that we have dropped 3 per cent. in our trade, while Germany has increased 4 per cent. and France 1 per cent.. The U.S.A. returns remain stationary, while Italy has receded 2 per cent. There is no great cause for alarm in these figures because in total we are still doing more than we ever did, but there certainly is reason for inquiry. First, let me say that 1 do not join with the critics who delight to speak of the general stupidity of the Britisher and his refusal to adapt himself either to the wishes or the currency of his foreign customerOur best houses in Bueuus Aires are as well equipped for local conditions as any others. But at the same time it is clear that. the German traveller. or agent, gets an advantage over us iii several ways : as linguist, as an adept in the arts of giving customers what they want instead of what they ought to want, and also of combining finance with trading, not only with regard to credit but in the form of inducements to subordinates to place business. If Our Secret Commissions Act were put in force in the Argentine some of our competitors wonld lose much of their trade.
Further, longer credit and lower prices--not necessarily better value—can often be obtained. -The working population is largely Spanish or Italian, and they will put up with cheap and nasty soft goods, as long as they are showy and of qualities which British manufacturers do not care to touch.
These foreign competitors " hustle " much more than we do. 'I'heir diplomatic representatives show an interest in commerce which would shock the well-bred Minister. And 80 occasionally large orders are mysteriously placed in unlikely quarters. Warships go to the United States. great electricity and lighting contracts go to the Germans, dock and harbour works go to the French. and our figures are reduced 4 per cent.
Another reason why our trade does not go ahead is due to the doubt in the mind of the British merchant and manufacturer. " South America, you know, is very speculative," is a phrase one often hears. This attitude appears curious, perhaps stupid, when compared with that of the Stock Exchange. A glance at the records and the stock and share list will show that our monied people have placed in various ways some £500,000,000 sterling in the Argentine, a large portion of which has been expended in British material on this side. They show no qualms about the safety of their money, or the interest to be earned. If our traders showed like courage they would, I am sure, reap a larger reward. It seems a pity that we should run ships and build railways to facilitate the trade of our competitors when we might he carrying more of our own.
Suggestions as to Maintaining our Position.
The merchant or manufacturer who would cultivate trade in the Argentine—and it is well worth doing—must bear in mind certain first principles. He must be represented by men who can speak the language, or languages, of Argentine buyers. 'the ■oung German there gets into a, business house as a disteibitter. his linguistic abilities soon secure his advancement, and he takes care to divert all the business he can into German chann_ls. The Britisher as distributor has been a diminishing nurnh,a.. He has rather figured as the big importer. The details of the distributor or shopkeeper are often beneath his notice, and so another, the German " importer," is let into that establishment. And this is the more regrettable because all other things being equal, British goods are favoured. They have a reputation. like our woid of honour. To sr-cure a continuity of business it is imperative to see that quotations, invoices, weights and measurements, are all rendered in the Argentine equivalents. We lose many orders because we have not the brains to adopt the decimal system. The tequirements of the Customs. too. must he carefully studied, and met with civility and skill. Tu get goods through successfully is quite as important as getting order's for them.
And another word as to credit. If the customer is sound— and the banks can protect their friends—it is well to remember that in a country where capital is wanted, and the great word is .Inanana (to-morrow), some elastic must he put into the rigidly-fixed British pay day. I am sure that many foreign firms get business because they combine a little money lending with ordinary trade. And they take care to charge for the accommodation.
The Future Possibilities of the Empire.
I have already stated my complete confidence in the country. The land is right and limitless. The climate is beneficent. The tailw0-s are admirable and increasing. The people are virile, capable and friendly to our country, and the Government has given unmistakable signs of stability. Even if revolution. or drought, or locusts should unhappily come, I believe that the Argentine has a sufficient margin of natural n sources to survive all such disasters.
But. turning from the country to the British trader, what are the possibilities for him? Ibelieve that they are distinctly good, and I will give my reasons. The leisured classes, the men who, with little or no effort, have made vast sums out of land and cattle dealing, evidently desire to spend their wealth and live their lives much after the British fashion. The English country gentleman, with his homestead, his sport, his stock, his horses, dogs, and general anmsements, is the model that the better-class Argentine " estanciero " desires to emulate. This attitude of mind points to a welcome to enterprising firms who are prepared to supply British goods to people who desire to approximate to our ways in their homes and manners and sport. Already some brainy pioneers have made successes. Messrs. Maple have a fine furnishing establishment in the Calle Pellegrini and are doing a good trade in English styles. I noticed that the run on Sheraton is phenomenal. Messrs. Mappin and Webb have just opened in the famous C.!alle Florida, and their attractive shop never lacks customers. So great is the fancy for " the English style " that the ditties on the goods imported, though considerable, offer no bar to large sales. To manufacturers and merchants, I would say their chances of trade are wider and more varied. I noticed that many shopkeepers in the Argentine announce " goods in the English style," whether they have them or not. If they are approached with the right articles they will buy and pay well, for there is no lack of money in this wcaderful country. Turning to the camp, the manufacturer has another wide field open in dealing direct with the " estanciere." The proprietors of these camp communities have a way of buying direct, most of the things which they require, from their guns to their carriages and agricultural implements. These, together with the inevitable general camp store, become valuable customers when once confidence is established and the difficulties of the Customs overcome. The sales of appliances to assist the industries of the country are enormous, but a special knowledge is required as to what best suits Argentine needs. There is but little analogy with our agriculture. It is a study of these conditions which has secured orders for so much Yankee machinery. It must be remembered that many of these Argentine farmers have suddenly jumped into the position of British equires and landed proprietors.
The Centenario Exhibition.
The Argentines, with much courage, but not much time, decided to set up as one feature of their Centennial rejoicings a great International Exhibition. When I left on June 24th only one or two sections of some four or five were open, but the rest were sufficiently advanced to indicate the magnitude and purpose of the whole spectacle. Before the autumn is over this series of exhibition palaces will be complete, and will collectively form one of the greatest displays of the kind which the world has ever seen. These buildings represent, among other things, the staple industries of the country. and the appliances necessary to maintain them. The show of agricultural implements in connection with this rural section is, of course, one of the sights of the exhibition, and the British exhibits are strong and good, but the Yankees and Canadians, with their lighter machines, many very clever, secure a large share of Argentine orders.
Apart from other sections, the International Railway and Land Transport Exhibition is certainly worth a journey to the Argentine to see. Thanks to the untiring energy of Mr. G. E. Akers, the British Commissioner, the fine display completely eclipses the rival efforts of our competitors. Germany, the United States, Italy, and other countries are well in evidence, but the British exhibit not only is twice the size of any other, but is the best collection ever Shown of appliances for haulage, railways and means of communication.
I cannot here review the exhibits in detail, but all honour is due to the great railways, the engine and carriage builders and the shipping firm, motor makers and many manufacturers of locomotive accessories who came forward at very short notice and made this section an unqualified success.
To return to the title of my address, " British Interests in the Argentine," this exhibition reveals at every corner the great opportunity which still remains to us for placing in this great country more of our money, energies, and manufactures. We do not want to patronize this young republic for which we have already done so much. Argentines properly loathe any such attitude. But if we cordially recognize it as one of the foremost nations of the world, inclined for many reasons to regard Britain as " the most favoured nation," we shall still secure a great extension of those abiding commercial interests \viiich bring us together on this occasion.