THE ARGENTINE REPUBLIC. 619 



CAPITAL REQUIRED TO START AN KSTANCIA IN THE ARGENTINE 



REPUBLIC. 



The outlay necessary 1'or starting 1 ;t cuttlu cstancia depends upon its 

 location, and its annual product depends very much upon fortuitous 

 circumstances. In regard to the first point, of course the capital re- 

 quired will be greater in tbc province of Buenos Ayres than on the front- 

 iers, west and south, or in the interior provinces, for the reason that 

 the former lands, command higher prices, the prices decreasing as the 

 distance from Buenos Ayres increases. In regard to the second point, 

 it must be borne in mind that protracted droughts (secos) are not unusual 

 in this country, during which thousands upon thousands of stock die from 

 thirst and starvation, while the severe rain and snow storms of winter, 

 frequently carry off other thousands upon thousands of unprotected 

 cattle. For these two reasons any estimates on these subjects cannot be 

 implicitly relied upon. Mr. Ricardo Nap, a well-known statistician of this 

 city, has presented some figures, which for a good year I suppose may 

 be taken as approximately accurate. He assumes that a league square 

 of pasture-land, with the necessary buildings included, has been pur- 

 chased in the province of Buenos Ayres for $40,000 (a similar qual- 

 ity of land farther out can bo purchased for 820,000 to $30,000 per league, 

 while on the frontiers it can be obtained for $4,000 to $10,000 per league). 

 He then assumes that it is stocked with both cattle and sheep as fol- 

 lows: 



10,000 slieep, al corte,fit $1.10 $11,000 



1,000 horned cattle, al cortc, at $6 6,000 



300 mares, at $4 : 1,200 



50 saddle horses for uso, at $10 800 



Outlay in tlie purchase of cattle 19, 000 



The. capital fund for land and cattle will then be $59,000, gold; and 

 he calculates the annual product as follows: 



2,500 sheep, sold to tallow establishments, at 2. $5,000 



1,000 sheep, al corle, nt $1.20 1,200 



150 horned cattle lor the butcher, at $14 2,100 



100, al cortc, at $6 600 



25 mares sold, at 1 100 



Augmentation and product of the year 9,000 



Also 400 quintals of wool, ;:t $12 *. $4, 800 



Also 3 quintals of hair, at ^0 60 



4,860 



Gross proceeds 13,860 



He deducts expenses as follows : 



Salary of the manager, per annum $240 



Salary of two servants, per annum 280 



Salary of six shepherds and peons, per annum 1,080 



Sundry expenses ] " ' 26 



. 1,860 



Which, according to his figures, leaves a net gain of 12,000 



This is nearly 21. per cent, on the amount of the investment, and he 

 gives this as the lowest estimate; but, taking the years as thev run, 

 with the losses which almost inevitably occur from the causes I have 

 mentioned, and I doubt if the profit would exceed 12 to 15 per cent, on 

 the investment when the balance-sheet is fully made up. In good years, 

 and these do sometimes occur, the profit may even go to 30 percent., 

 but this is not likely to happen very often. 



