Читать книгу The South American Republics (Vol. 1&2) - Thomas Cleland Dawson - Страница 24

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General Mitre's administration is memorable for the beginning of that tremendous industrial development which in thirty years made Argentina, in proportion to population, the greatest exporting country in the world. Foreign capital and immigration were chief factors in the transformation that within a few decades changed an isolated and industrially backward community into a nation possessing all the appliances and luxuries of the most advanced material civilisation.

In 1865 circumstances forced Mitre into the Paraguayan war. Lopez, the Paraguayan dictator, hated the Buenos Aireans quite as much as he did the Brazilians with whom he was constantly quarrelling, and he was only awaiting a favourable opportunity to vent his dislike on either or both. He counted on the coolness that naturally existed between Urquiza and Mitre to insure him the former's aid. In 1864 Brazil intervened in the affairs of Uruguay by assisting one of the parties in the civil war then raging. Lopez regarded the action of Brazil as endangering the balance of power in the Plate regions. In retaliation he seized the Brazilian province of Matto Grosso, which lay along the Paraguay north of his own territory. Mitre wished to remain neutral, although he had no sympathy with the brutal despot, and had an understanding about Brazil's action in Uruguay which safeguarded the interests of Argentina. Lopez, however, insolently demanded free passage across Argentine territory for the troops which he wished to send against Brazil and Uruguay. Mitre's refusal was followed by a Paraguayan invasion, and national honour required that this violation of territory be resented. Brazil and the Flores faction in Uruguay welcomed the alliance of Argentina. The Paraguayan invasion was repulsed by their combined forces, and the allies advanced up the Paraná against Lopez in his own dominions. It was natural that Mitre should be commander-in-chief of the allied armies, although Brazil furnished the bulk of the troops and bore the brunt of the expense. Urquiza disappointed Lopez in refusing to revolt against Buenos Aires, and although he took no great personal interest in the war he co-operated in many ways with Mitre.

The enormous expenditures of the Brazilian government furnished a splendid cash market for Argentine stock and produce, and the resulting profits compensated for the pecuniary sacrifices involved. In two years' fighting both the Argentine and the Brazilian armies suffered tremendous losses on the field and in the cholera hospitals. After the great repulse at Curupayty in 1867 the number of Argentine troops was largely reduced. When the Brazilian fleet finally forced the passage of the river, opening the way to Asuncion, Mitre resigned the command into the hands of the Brazilian general Caxias, and the last two years of the war were carried on principally by Brazilian troops. By the peace of 1870 Argentina's title to certain valuable territory was quieted, and she gained an important commercial advantage by the opening of Paraguay to her trade. Her commercial and industrial leadership in the Plate valley has never since been endangered. Politically also the indirect results were gratifying. The tremendous sacrifices in men and money had sickened the Brazilian government and people of foreign complications. Thereafter, the emperor pursued a policy of non-interference, which has left to his Spanish neighbours a free hand among themselves. With the withdrawal of the Brazilian troops from Paraguay, the balance of political power began slowly to pass from Rio to Buenos Aires.

Sarmiento, the "schoolmaster president," succeeded Mitre in 1868. His election is said to have been the freest and most peaceful ever held in the republic and to have represented as nearly as any the will of the electors. The development of population, wealth, and industry continued in increasing geometrical proportion. During forty-five years before 1857 the population had only a little more than doubled; during the forty-five years since that date, the increase has been four hundred and fifty per cent. The yearly increment holds fairly steady at four per cent., which is as large as that of any country in the world. In 1869 the city of Buenos Aires had one hundred and eighty thousand people, and in 1902 it contained eight hundred and fifty thousand. Immigration had begun to pour in at the rate of twenty thousand per annum, and had rapidly increased to over a hundred thousand, when the great crisis of 1890 temporarily interrupted the flow. The years from 1868 to 1872 were prosperous over much of the civilised world, but nowhere more so than in Argentina. Sarmiento's administration was, however, characterised by the beginning of that policy of governmental and commercial extravagance which has so deeply mortgaged the future of Argentina, and has repeatedly hampered the legitimate development of this marvellously fertile region. In the ten years prior to 1872 foreign commerce doubled, but the foreign debt increased fivefold.

The last of the caudillos, Lopez Jordan of Entre Rios, revolted in 1870 against Urquiza, who was still governor of that province. The redoubtable old patriot was captured by the rebels and assassinated. In 1901 a monument was erected to his memory in the city of Paraná, his old capital, and the day of the unveiling was a national festival in all the republic. The Federal government avenged his death and suppressed the insurrection after an obstinate, expensive, and bloody little war. Sarmiento's administration was, however, not popular, and the news that he had virtually determined to name his successor created much dissatisfaction. Mitre headed the opposition in the city, while in the provinces some of the discontented went so far as to take up arms. Julio Roca, then a young colonel, defeated them at Santa Rosa, and Sarmiento was able to hand over the reins of government to Dr. Avellaneda without any further serious opposition.

JULIO ROCA.

A commercial crisis was beginning when the new President took office in 1874. He initiated a policy of retrenchment, under which the government managed to pay its obligations and weather the storm. General Roca was made Minister of War and came into further prominence as the conqueror of the Indians, who had hitherto prevented white men from settling on the vast and valuable southern pampas. In 1854, after the fall of Rosas, the Indians recovered most of the territory from which he had driven them twenty years before. Later, the frontier was advanced very slowly, but in 1877 Alsina, one of the most successful governors Buenos Aires ever had, undertook a vigorous campaign. In the following year General Roca threw the power of the Federal government into this vastly important enterprise. He carried the frontier south to the Rio Negro and west to the Andes, attacking the Indians in their fortresses—a policy which insured permanent white domination. The ultimate consequences of opening up to civilised settlement the immense territories comprised in Roca's conquests cannot yet properly be estimated. The vast region of Patagonia, that was marked on the maps in our boyhood as an unclaimed and uninhabitable arctic waste, has since been added to Argentina as an indirect result of Roca's campaign of 1878. Buenos Aires put in a claim for the whole of the territory conquered from the Indians, but the Federal statesmen refused to allow one province to become well-nigh as large as all the rest together. By a compromise her area was increased to sixty-three thousand square miles, while most of the new acquisition was divided into territories under the direct administration of the Federal government.

As the time for the presidential election of 1880 approached, political matters began to look ugly. It was evident that Avellaneda intended to choose his successor. Through the provincial governors, the police, the army, the employees on the public works, and the officials of all kinds he had easy control of the election machinery. Even the most scrupulous President often cannot prevent the exercise of coercion in his name and without his knowledge. The opposition in South America usually refrain from voting: indeed, it is considered almost indelicate for outsiders to interfere in a matter so strictly official as an election. The privilege of voting is not so highly prized and so jealously guarded as in the United States and the northern countries of Europe.

Avellaneda and his adherents had fixed upon General Roca as the next President. The principal opposing candidate was Dr. Tejedor, governor of Buenos Aires, who was supported by Mitre's party and also by many of the other Buenos Aires party, the "autonomists." The contest was really between Buenos Aires and the provinces. General Roca was strong with the army and with the country, but so tremendously had Buenos Aires grown that the result appeared doubtful. Her population, city and province, had in 1880 reached six hundred and fifty thousand—more than a quarter of the total in the whole Confederation. The next three provinces put together did not equal her numbers and lagged still farther behind in wealth and ability to concentrate their forces.

Radical counsels prevailed in Buenos Aires. Roca's opponents, seeing that they were at a hopeless disadvantage with the election machinery in Avellaneda's hands, determined to use violence. In June, 1880, the partisans of Tejedor rose against the Federal government. The police and militia of the city joined them and paraded the streets, while the alarm flew to the country, and the troops of the line began to concentrate outside the city. Presently the President and his Cabinet fled for safety to the Federal camp. For a few weeks there was some skirmishing and much negotiating, and in one encounter near the south end of the city a thousand Buenos Aireans were killed. Finally, the two sides came to an agreement by which the Roca party retained substantially all that they had been contending for. The General succeeded to the Presidency without further opposition, and the city of Buenos Aires was detached from the province. The federalisation of the great city was the last step in the process of adaptation that had been going on ever since the expulsion of the Spaniards. Political equilibrium between the provinces and Buenos Aires had been reached. Thenceforth the latter's direct predominance was to be purely intellectual, commercial, and social. For the privilege of being capital of the republic, the city exchanged her provincial autonomy. Buenos Aires province, as formerly constituted, was the greatest menace to a peaceful federal union. In an assembly where the rights and influence of all the provinces were supposed to be equal, the magnitude of Buenos Aires was a constant occasion for the jealousy of her smaller sisters and for aggressions on her own part. Deprived of the city, the remainder of the province was not powerful enough to be dangerous. Now that it is federalised, the city itself proves to be the strongest tie binding together the different parts of the Confederation.

The greatest of all the waves of material prosperity reached its culmination during Roca's first administration. Business fairly boomed; foreign commerce increased seventy-five per cent. from 1875 to 1885; the exports of hides, cattle, wool, and wheat swelled from year to year; the railroad mileage tripled in ten years; the revenues mounted sixty per cent. in five years; the use of the post-office, that excellent measure of education, wealth, and higher national energies, tripled. All danger of disturbances serious enough to affect property rights had long since passed; the provincial governors worked harmoniously with the Federal authorities. A part of Roca's system was to rest his power as chief executive on the co-operation of the governors; the members of Congress also bore somewhat the same relation to the President. As a rule, a majority in Congress supported his measures.

In spite of present prosperity, dangers had been inherited from past administrations. There were weak spots in the political and financial structure that had grown too rapidly to be altogether well built. The people still lacked the hard and continued training in business that older nations have had, and the national temperament tended toward a reckless optimism. European money lenders stood ready to stimulate this tendency by offering easy credit facilities in return for careless promises of exaggerated interest rates. The medium of exchange was a vastly inflated and fluctuating paper currency. From the beginning Argentine rulers had resorted to note issues to tide over their pecuniary difficulties. When Rosas assumed power in 1829 the paper dollar was worth fifteen cents, and by 1846 he had driven it down to four cents. In 1866, Mitre's administration had established a new arbitrary par at twenty-five paper dollars for one gold dollar. Sarmiento's extravagances made suspension necessary and sent gold to a premium. In 1883 President Roca remodelled the currency, issuing new notes convertible into gold, and exchanging them for the old paper at the rate of twenty-five for one. But his effort to contract and steady the circulating medium excited protests from a community that was growing rich in the rapid inflation of values. Foreign money was being loaned to all sorts of Argentine enterprises on a scale that, considering the small population of the country, has never been precedented anywhere. Railroads, ranches, commercial houses, banks, land schemes, building enterprises, were capitalised for the asking. The provincial governments borrowed money recklessly, while interest was guaranteed on new railroads, and charters granted to all sorts of speculative enterprises. The nation undertook to supply itself in a single decade with the drainage works, the docks, the public buildings, the parks, the railroads, that older countries have needed a generation to provide. So much capital was being fixed that the attempt at specie resumption cramped the speculative world. Within two years it was given up, and issues of paper money resumed.

General Roca retired from office in 1886, and was succeeded by his brother-in-law, Juarez Celman. The four years during which the latter remained in office are memorable for reckless private and public borrowing. The healthy activity of General Roca's administration gave place to a mad fever of speculation. Congress passed a national banking act, and under its provisions banks of issue were established in nearly every province. The paper circulation almost quadrupled and the premium on gold doubled. The Federal government followed the example set by the provinces and municipalities, and burdened the country with an indebtedness which has mortgaged the future of the country for years to come. Between 1885 and 1891 the foreign debt was increased nearly threefold.

GATEWAY OF THE CEMETERY AT BUENOS AIRES. [From a lithograph.]

During 1887 and 1888 few apprehensions of the inevitable result of the inflation seem to have been entertained. Up to the very day of the crash of 1889 the government cheerfully continued to borrow, to plan magnificent public improvements, and to build expensive railways. The public speculated confidently in the mortgage scrip issued through the provincial mortgage banks. Early in 1889 the government began to have difficulty in meeting some of the enormous obligations which it had undertaken. Conservative people became apprehensive; the independent press raised a warning voice. A ministerial crisis was followed by a panic in the Exchange. The new Secretary of the Treasury, in an effort to prevent further depreciation of the currency, diverted the redemption fund held by the government for bank issues. The currency dropped with sickening rapidity; the bubble companies collapsed; the public realised that many of the banks were unable to meet their obligations.

At this crisis public alarm and indignation found a vent in the formation of a revolutionary society, called the Civic Union, which was pledged to overthrow President Celman. On July 26, 1890, disturbances began and there was a little fighting in the streets. Police and troops, however, put no spirit into their efforts to suppress the rioters. The President's best friends urged him to resign, and Congress passed a formal memorial to that effect. There was nothing for him to do but to obey the manifest wish of the people; he handed in his resignation and the Vice-President, Dr. Carlos Pellegrini, peacefully succeeded him.

The situation went from bad to worse; in 1891 the currency dropped to twenty-three cents on the dollar, the banks failed, and the laws for collection of debts were suspended for two months. The most which Dr. Pellegrini could hope to do was to hold things together until the general election should be held fifteen months later. No human wisdom could devise measures that would give immediate prosperity, and the public would be satisfied with nothing less. Dr. Pellegrini had to wait until later years for a proper appreciation of his labours. The other two great national figures were General Roca and General Mitre. The first had the prestige of his strong and successful administration; he enjoyed the confidence of the army, and he was the head of the great Nationalist party which was especially powerful in the provinces. General Mitre, the most eminent citizen of Buenos Aires, and in a way the living embodiment of the previous forty years of national history, had inevitably been selected as chief of the Civic Union. He had therefore led the movement through which the public opinion of the capital had overthrown Celman.

Mitre and Roca had co-operated in securing a peaceful transfer of the government from Celman to Pellegrini. Roca was inclined to favour Mitre for the presidency, but it soon became evident that the latter could not control the more radical members of the Civic Union, and that his candidacy would not reconcile all parties. February 19, 1891, an attempt to assassinate Roca was perpetrated in the streets of Buenos Aires. The spirit of mutiny grew alarmingly, and a state of siege was proclaimed; the Civic Union split into warring camps; trouble broke out in Cordoba, and successful revolutions overthrew the legal state governments in Catamarca and Santiago del Estero. Mitre and Roca formally withdrew from active political life in the hope that this might placate the dissident politicians.

The candidate fixed upon by the wing of Nationals who adhered to Roca, and the moderates of the Civic Union led by Mitre, was Doctor Luiz Saenz Peña, ex-Justice of the Supreme Court. The Pellegrini government gave him its earnest support, and charges were made by the Radicals that their votes would be forcibly suppressed in the election of October, 1891. They determined to anticipate violence with violence, but, on the eve of the election in October, 1891, their leaders were imprisoned and a state of siege declared. Saenz Peña was elected, but the Radicals began to intrigue to obtain control of the provincial governments, which would enable them to force his resignation or his compliance with their wishes. Serious trouble broke out early in 1892 in the province of Corrientes, with which the Buenos Aires radicals openly sympathised. The new President quickly cut loose from the Roca wing of the Nationalist party and allied himself closely with the moderate Civic Unionists, now usually called "Mitristas." The President's own son, who had been a candidate against him, headed the faction of the Nationalist party that had renounced Roca's leadership. Revolutionary movements against the governors who belonged to the Roca faction began in several provinces. In February there were armed protests in Santa Fé against a new wheat tax; a revolt broke out in Catamarca in April; by July the Saenz Peña administration was in the gravest difficulties. San Luiz and Santa Fé rebelled, and in August Salta and Tucuman followed. It was manifest that the President was not strong enough to hold down the selfish factions who saw in the general dissatisfaction and financial distress only an opportunity to get into office by force of arms.

Congress remained neutral until it became evident that no accommodation could be reached between the President and his opponents, and that the latter would press on to overthrowing the government and probably precipitate a serious civil war. In this crisis, however, the majority agreed to laws which authorised armed Federal intervention in the troubles in San Luiz and Santa Fé. But in September the national troops themselves showed symptoms of mutiny and by this time most of the provinces were convulsed by revolutionary movements which the central government was manifestly not strong enough to suppress or control.

On September 25th, General Roca took command of the army; the most dangerous radical leaders in Buenos Aires were thrown into prison; and on October 1st he captured Rosario, the second city of the Republic, and the chief place in Santa Fé, which for months had been in the hands of revolutionists. This was a beginning of the end of the troubles that menaced public order. Six million dollars had been expended by the government in fruitless marchings to and fro of troops, but no serious harm had been done. The scene of the contest between the ambitious factions was transferred to Congress, the Cabinet, and the Press. Throughout 1893 and 1894 the President struggled with his factional and financial difficulties, and gradually lost control of Congress and prestige in the country.

Meanwhile, commercial liquidation was proceeding normally and, as always, painfully. The great Provincial Mortgage Bank, through the agency of which a vast amount of the land scrip had been issued in the Celman days, was granted a moratorium for five years. Other actual bankruptcies were legally admitted and enforced. The mortgage scrip payable in gold was replaced by currency obligations. The government had proved unequal to the task of balancing its own receipts and expenses. Taxes were increased until rebellion seemed imminent, but expenditures still outran them. The deficits mounted in spite of the efforts toward economy and the returning prosperity of the business world. The boundary dispute with Chile had assumed a threatening aspect; war seemed imminent, and the military and naval estimates were largely increased. In January, 1895, President Saenz Peña called an extra session of Congress to vote supplies for the expected war with Chile and to consider the financial proposals of the government. Congress demanded that political grievances should be redressed. The President had been persecuting the army officers who had been implicated in the revolutionary disturbances, and a vast majority of Congress insisted that a complete amnesty be granted to all political offenders. When the President refused, the Cabinet resigned in a body and Congress and the opposition brought every pressure to bear. It was soon evident that Congress must win, and on January 22, 1895, the President resigned.

The Vice-President, Doctor Uriburu, succeeded for the unexpired period of three years, during which little progress was made toward a settlement of the nation's financial difficulties. Symptoms of renewed extravagance appeared. In 1897, the issuance of $10,000,000 of mortgage scrip was authorised, and the city of Buenos Aires received permission to borrow $5,000,000. Work on the great docks of Buenos Aires, costing $35,000,000, was pushed to completion, and in February the paper dollars dropped back to 33 cents, while the deficit for the year was over $20,000,000.

In July, 1897, General Roca was nominated for the Presidency by the Convention of the National party, with Dr. Pellegrini in the chair. There was no real opposition to his election. Again and again during a quarter of a century he had proved himself able to cope with the most difficult situations which had arisen in Argentine affairs. In 1890, his firmness and adroitness had saved the country from the agony of a useless political upheaval after the failure of the Celman administration. During the anxious months that followed the panic, his generosity had secured a co-operation of the moderates of Buenos Aires with his own immediate followers in holding back the Radicals and revolutionists in check. During the critical year of 1892, the outbreaks against the Saenz Peña administration increased in violence until it seemed as if the country would be convulsed with a serious civil war, but when Roca stepped in the tide of disorganisation turned, and his firm hand re-established the authority of the Federal government. His prestige and his personality enabled him to count upon an obedience from the chiefs of the provincial factions which was of inestimable value. He possessed those rare and indispensable qualities which make a man a centre around which other men can rally. He had built up the one really national party in the country and was faithful to his friends and his adherents, but sufficiently broad-minded to combine with other parties when the interests of the whole country demanded it.

General Roca entered upon his second presidential term in the beginning of 1898. One of his first acts was to intervene in Buenos Aires province and put an end to a deadlock between the governor and the Provincial Assembly. The boundary dispute with Chile, a question which, in spite of the earnest desire of both governments for peace, might at any time precipitate a ruinous war, was submitted for settlement by arbitration. W. J. Buchanan, the United States Minister at Buenos Aires, named as arbitrator for the northern frontier, quickly announced a decision which was promptly accepted by both parties. The more complicated southern frontier could not so easily be prepared for submission; a serious misunderstanding arose, and both countries felt compelled to spend large sums for armaments which they knew they could ill afford. Happily, a decision was at last rendered in 1902. No question now remains open which is likely to involve the external peace of Argentina.

A RIVER ROAD IN ARGENTINA. [From a lithograph.]

Internal peace has not been menaced during General Roca's term. The commercial situation of the country has vastly improved. Immigration, which had largely ceased after 1890, has again risen to over a hundred thousand a year. Wheat exports rose from 4,000,000 bushels in 1897 to 61,000,000 in 1900. The total exports in 1899 were $185,000,000, twice as great per capita as the record export of the United States. There have been no issues of paper money, and the value of the currency has risen to forty cents. The government has established a new artificial par at a little more than this sum, and has begun accumulating a gold reserve. A resumption of specie payments is soon expected.

Nevertheless the chief difficulties and preoccupations of the Roca administration have been with financial questions. A deficit of $70,000,000 had accumulated in the few years before 1898, and the interest on the immense public debt makes an equilibrium in the budget almost impossible. Many of the provincial governments have defaulted, and the national government has had to carry their burdens in addition to its own, to satisfy clamorous foreign creditors. In 1901 it was proposed to unify the debt, refunding the whole at a lower rate of interest, and specifically pledging certain sources of public income. This plan had the approval of the government, but the national pride was touched by the latter feature. The populace could not bear the idea of giving a sort of mortgage on the country. The passage of the bill by Congress was met with so many demonstrations of popular disapproval that it was abandoned. This change of front was accompanied by the formation of an alliance between the followers of General Mitre and those of General Roca.

The industrial impetus already acquired by the Argentine Republic is sufficient to carry it over all obstacles, and it seems assured that there will be a rapid settlement of the whole of this immense and fertile plain. Here nature has done everything to make communication easy, and a temperate climate insures crops suited to modern European civilisation. Two grave perils have so far been encountered—namely, a tendency toward political disintegration and an abuse of the taxing power. The former is now remote, for since the railways began to concentrate wealth and influence at Buenos Aires, and to destroy the prestige and political power of the provincial capitals, the national structure built by the patriots of 1853 has stood firmer each year.

The Argentine has had a bitter lesson of the evils of governmental extravagance, and still groans under the burden of a debt which seems disproportionately heavy, but the growth of population and wealth will soon overtake it, and the very difficulties of meeting interest are the cause of an economy in administration, of which the good effects will be felt long after the debt itself has been reduced to a reasonable per capita. A nation is in the process of formation in the Plate valley whose material greatness is certain, and whose moral and intellectual characteristics will have the widest influence on the rest of South America.