ARGENTINE REPUBLIC. 



already in frequent reports discussed the importance 

 of direct steam navigation with the Kiver Plate, con- 

 sidering it as an essential prerequisite to the general 

 introduction here of American manufactures, and in- 

 sisting that so long as our intercourse with the Ar- 

 gentine Republic continues to be through the slow, 

 uncertain, and irregular medium of sailing-vessels, we 

 can not expect any great or decided improvement in 

 our trade. 



I have also argued the necessity of establishing 

 more intimate relations between our manufacturers 

 and the merchants of the Argentine Eepublic, ex- 

 plaining the impossibility of securing a permanent 

 trade in any given commodity by means of commer- 

 cial travelers, who sell by sample and have no inter- 

 est in the business of those who employ them beyond 

 the per cent they may receive on orders secured 

 during a flying visit here ; and I have suggested the 

 wiser plan of establishing branch houses nere or ar- 

 ranging terms with reliable houses already estab- 

 lished ; or, in lieu of this, for the manufacturers to 

 open agencies here, where their goods will always be 

 found on sale in stock. 



AN AMERICAN BANK WANTED IN BUENOS AYRES. 

 1 have not heretofore referred to the utter absence 

 of direct banking facilities between our own and this 

 country. There is no doubt that this is an explana- 

 tion, at least in part, of the want of that activity 

 which characterizes a healthy and satisfactory condi- 

 tion of trade. I believe that the establishment of an 

 American bank here would be the means of working 

 a change in this respect, and especially if it was ac- 

 companied by a direct line of steamships trading with 

 the United States. It may be a question, however, 

 whether such an institution would at once return 

 very large dividends. There is no doubt that, if par- 

 ties could afford to wait the gradual process of chang- 

 ing the course of trade, or rather exchange, it would 

 ultimately not only command success, but enjoy a long 

 life of prosperity. The great trouble in the way is 

 the fact that all the banking business with the United 

 States ^is now transacted through English banks. 

 New York, as a financial center, is hardly known 

 here. Credits sent out for the purchase of Eiver 

 Plate hides or wool, are nearly all given on London. 

 There is scarcely a hide or a pound of wool shipped 

 from here to the United States the invoice of which, ex- 

 cept in the case of special purchases, is not made out to 

 Baring Brothers & Co or to Brown Brothers & Co.. 

 or to some other English banking-house. And all 

 remittances on account of sales of merchandise re- 

 ceived from the United States are made by bills on 

 London, or by express order, put into hides or other 

 produce, the New York or Boston account taking the 

 chances of a profit or loss in the shipment. A bill 

 drawn here and payable in New York for any large 

 amount could at present with difficulty find a pur- 

 chaser here, while masters of vessels in remitting home 

 their freight-money generally take drafts on London. 

 Recently, however, the American houses of A. C. 

 Bean & Co. and G. B. Perry, drawing on Boston, and 

 S. B. Hale & Co. and C. S. Bowers & Co., drawing 

 on New York, have been doing some exchange busi- 

 ness, more for accommodation than anything else. 

 The establishment of an American bank here, with 

 strong and well-known connections at home, would 

 gradually make a change in the present method of 

 conducting the American trade, and ultimately be the 

 medium through which bills for merchandise coming 

 from the United States, as well as bills paying for 

 produce purchased here, would pass. Bills on the 

 United States direct would take the place of bills on 

 London. The advantage of a central exchange office 

 t this kind for the American trade would soon mani- 

 ; itself. Sellers would know where to sell, and 

 buyers would know where to buy ; and buyers and 

 sellers would thus be brought together. It may be 

 argued, that the present limited trade of the United 

 btates with the Argentine Republic would hardly ius- 

 tify such an institution ; but, if we are to have steam 



communication between New York and Buenos Ayres, 

 the commerce between the two countries will necessa- 

 rily increase and become more certain. I need not 

 state that such a modification of our tariff as would 

 make more possible the shipment of Argentine wools 

 other than carpet-woolsto the United States, would 

 give an increased stimulus to our trade with this coun- 

 try, and make a demand for closer banking facilities 

 between the two ; but I feel that any suggestion of 

 this kind would be touching upon a subject which 

 must be considered and settled, not from an Argen- 

 tine but from an American point of view, it being of 

 paramount importance that our own home interests 

 should be taken into account, rather than those which 

 may affect our trade with any particular country. 



I may state generally that tne business prospects 

 of the Argentine Republic are in most respects more 

 promising than they have been for years. The Ar- 

 gentine national Government, during the year which 

 has just closed, has greatly strengthened its financial 

 position, and its credit in Europe was never better 

 than it is at present its bonds advancing from a 

 discount of 10 to 15 per cent to a premium on the 

 London Exchange ; while the endeavors of the Gov- 

 ernment to increase and develop the resources of the 

 country by means of railway extensions, the selling 

 of its public landSj the opening of new ports, the ex- 

 tending of its agricultural industries, the encourage- 

 ment of immigration, and generally the cultivation of 

 the arts of peace, are more earnest, persistent, and 

 hopeful than ever before. All these things help bank- 

 ing operations by increasing trade and creating com- 

 merce. In the midst of this present and prospective 

 River Plate prosperity, it would be gratifying to see 

 a bank here, especially representing American inter- 

 ests, and offering increased facilities for effecting ex- 

 changes between the two countries. 



No clearer delineation of the general con- 

 dition of affairs in the Argentine Republic at 

 the commencement of 1882 could be presented 

 than that embodied in the following extract 

 from President Rocas's message to Congress in 

 May of that year : 



MESSRS. SENATORS AND DEPUTIES : I have now for 

 the second time the honor of presiding at the opening 

 of your annual sessions. 



The republic has already begun to advance surely 

 and steadily, without any uncertainty as to the mor- 

 row. It now knows what it requires and whither it 

 is going ; and it has made marked progress, moral and 

 material, during the year just ended. We have been 

 gradually acquiring self-confidence and self-security, 

 and are now beginning to enjoy the confidence of 

 other peoples and to attract the attention of capitalists, 

 scientists, industrials, and statesmen, and of those 

 nations of the European Continent where a plethora 

 of population is felt. 



Peace within our borders has not been disturbed for 

 a single instant. The small cloud which lowered in 

 Corrientes disappeared of itself, and the conflict sub- 

 sided within the sphere of the constitutional powers 

 of that province. 



During the general elections for new deputies, and 

 the election for two new senators in the capital, there 

 was ardent struggling in a few provinces ; but no vio- 

 lent demonstration of party spirit or breach of the 

 laws occurred in any. Here we have a proof of pro- 

 gressive improvement in our mode of exercising our 

 political rights. 



I have been most solicitous in the preservation of 

 peace and tranquillity, in the belief that such was the 

 faithful interpretation of our dearest desires and the 

 most vital necessities of our country. 



While observing a policy at once firm, frank, liberal, 

 and circumspect, the Executive has devoted his whole 

 attention to perfecting the administration. Much has 

 been done in this direction ; much of routine has been 

 eradicated ; many costly errors have been corrected, 



