 JNTRODUCTION. 23 
almost entirely upon the course of the rubber market. Owing to the increasing output 
of the Eastern plantations the average price of rubber stood at 
Rs. 4 § 342 per kg. in the year 1913 
against’ ,, 9 § 709 4 y 9 «yy, 1912 
and ” 6 § 195 ” ” ” ” ” 1911. 
The result of this competition has been something like the commercial annihilation 
of Para-rubber, in spite of its admittedly superior quality. It remains to be seen to 
what extent the measures taken by the Brazilian Government with the object of 
reducing the costs of production will be successful. So far the conditions in the 
State of Rio Grande do Sul have worn a more cheerful aspect, because this agricultural 
district again derived very satisfactory profits from its extensive trade in skins and its 
dried-meat industry. Favourable prospects for the country are also held out by the 
attempts to open up the rich iron-deposits in the State of Minas Geraes, which are 
apparently progressing by private bargain. The money-market was not only deprived of 
the stimulant of the liberal supply of European capital which it had enjoyed in past 
years, but as a result of the complete displacement of the commercial and financial 
balance of the country, which involved the need for making remittances to foreign 
countries, considerable sums were withdrawn from it. In the place of the old readiness 
to give credit and strongly-marked optimism, which have often led to an over-hasty 
and ill-founded extension of national commerce and industry, there appeared a general 
reserve and feeling of insecurity, made more acute by the scarcity of money in Europe, 
and this brought about an extraordinary strain upon the finances, to which numerous 
economic enterprises fell victims. 
Although the year 1913 has been in many respects a year of continued favourable 
development for the Argentine Republic, it must nevertheless be described as a positively 
critical one for Argentine commerce. Suspensions of payment have assumed astounding 
dimensions, business has been neglected, and it has been difficult to collect outstanding 
debts. According to a report of the German Consul General at Buenos Ayres the sus- 
pensions of payment in the last four years represented the following totals in Millions 
of Pesos (Paper). 
910 1911 1912 1913 
44, 4 63,4 82,4 172,9. 
The causes of this striking increase in the bankruptcy statistics are said to be very 
closely connected with the accumulation of large stocks of merchandise, speculation 
in real estate, and the conditions of the European money-market. The price of land 
was driven up by speculation to figures far in excess of the intrinsic value of the 
plots. Things went well so long as foreign capital flowed into the country and the 
banks accorded credit freely. But the influx of foreign capital was suddenly converted 
into withdrawal and the banks found themselves compelled to restrict their credits to 
the utmost. Speculation in real estate came to an end at a single stroke and the 
liabilities which had been assumed could not be fulfilled. Corresponding to the recent 
great development of economic enterprises of all kinds in the Argentine, the extent 
of the financial distress is far greater on the present occasion than in previous years 
of business-crisis. Even large commercial houses, considered to be securely established, 
are tottering. The reflex-action of the convulsion extends as far as Europe. Nevertheless 
there is no cause for anxiety concerning the future of the country. Agriculture and 
cattle-raising are in a healthy condition and are generally continuing their thriving 
development. The times of commercial stress through which the country is now 
