The total value of Argentine imports and exports for the quarter

given and that of those for the same quarter in 1898 may be seen from the following table:

The increase in the value of exports has been wholly confined to wool, the price of which during the latter part of this season has been remarkably good for the finest qualities. Indeed, some fine wool sold here lately for a higher price than at any time during the past fifteen years. There has been a decrease in the value of exports of cereals, notwithstanding the quantity of wheat exported has been much greater than that exported during the like period in 1898.*

Owing to the importance of the subject to us, I am sure the following figures, covering the shipments of wool from this Republic. during the present "season" (October 1, 1898, to May 1, 1899), as compared with those for the like period in 1897-98, will be of especial interest:

Wool exported from the Argentine Republic.t

The ship

*The export shipments of wheat for the first four months of 1898 amounted to 676,280 tons (metric), while those for the first four months of the present year have amounted to 1,007,551 tons. ments of corn and linseed have also been greater this year than last.

+ It may be well to say that in many "barracas" hydraulic baling presses have recently replaced the old horsepower press. Bales are therefore this season heavier than they were last by possibly 20 per cent.

To appreciate the advantage this country has received from the advance in the price of wool, of which I spoke above, it is sufficient to say that, although, as will be noted from the figures just given, the quantity of bales exported during this season has not equaled that shipped during last season, their value exceeds that of last season by $4,572,430.

With regard to the decrease shown in the importation of the goods. designated, it may not be out of place to say that I am of the belief, from a somewhat careful study of the subject, that certain lines of Argentine manufactures were materially benefited and have had a decided impetus given to them by the national exposition of Argentine products which was kept open here and very largely attended during the last three months of last year. That exhibit of what was being made in this country (to speak correctly, however, I should properly say in this city, Buenos Ayres) was a revelation to many, and without doubt did much to stimulate the then waning interest in the efforts put forth constantly by Argentine industries. toward keeping the custom-house tariff on imported goods as high as possible.

The most interesting phase of the manufacturing question is, however, the effect the rapid rise in value of the paper money of the country has had upon the tariff.

Manufacturers and producers here are invariably found to be opposed to any plan proposed looking toward an increase in value. of the paper money of the country. Such persons desire "high gold"—i. e., cheap paper money. In the case of a manufacturer, "low gold," or appreciation in the purchasing power of paper, is equivalent to a reduction in the duty on imported goods, and his trade is injured, since, under such a condition, he finds it more difficult to compete with an imported article than he does when the gold rate is "high."

Indeed, the beneficial effect exerted upon importations by the marked increase that has taken place during the past two years in the value of the paper money of this country is not at once fully appreciated by an observer. I am quite certain, on this point, that the increased importation shown above in many lines would have been very much greater had this Government not maintained in force during this year the additional 10 per cent provisional customhouse tax imposed last September as a war measure. That extra 10 per cent has more or less offset the advantages importers would have derived from the increased value the paper money of the country has acquired during the past year. It is therefore unnecessary to say that manufacturers here will endeavor to have this additional 10 per cent tax maintained in force while gold remains "low."

To illustrate the practical operation on imported goods of the

rise in value of the paper money, and at the same time to show why Argentine manufacturers want cheap money, let me give an example:

An article costing in the United States $20 is imported; let us suppose the duty, to be 40 per cent ad valorem, the freight $2, and the gold rate here to have been 3.30 when the article arrived, as it was about two years ago. The duty of 40 per cent would have been levied upon the cost of the article here-$22. Forty per cent of $22 (in gold) reduced to paper money at the rate of 3.30 would have made the duty on the article $29.04 in paper money. Now, reduce the cost of the article and the freight thereon to paper money at the same rate; then add to that amount ($72.60) the duty in paper money, and to the whole sum ($101.64) 25 per cent for the importer's expenses and profit ($25.41), and we find the article had to be sold for $127.08 paper money.

Now, take the same article and make precisely the same calculations, but upon a gold rate of 2.30 (that of to-day), and we find the same article paying the same freight and duty (in gold) could be sold to-day for $88.55 paper money, or 30 per cent less than in the other case, wholly and solely owing to the increased purchasing power the paper money of the country has obtained during the intervening two years. It may be well to state here that the circulating medium of this country is paper money; that all goods are so sold at retail; and that customs duties are paid in the same money at a rate daily fixed by the Minister of Hacienda.

It will be readily seen from the above that the "gold rate" is one of great importance to importers here and can markedly affect the importation of foreign merchandise into this country.

BUENOS AYRES, May 6, 1899.

WILLIAM I. BUCHANAN,

Minister.

UNITED STATES-BRAZILIAN TRADE.

The value of the annual trade of the United States with Brazil during the ten years ending December 31, 1898, has been as follows:

The fall in the price of coffee accounts for the decreased value of the imports from Brazil.

In regard to our exports to Brazil, which are our chief concern as a great producing and manufacturing nation in quest of enlarged foreign markets, it is to be regretted that our trade, according to our Treasury publications-from which I have quoted the foregoing table-shows but a very slight increase, if indeed any increase can be recorded.

These figures, however, are not borne out by the common opinion in Brazil, which is to the effect that trade with the United States has been increasing steadily of late years. As proof of this statement, the master of a steamship trading regularly between New York and Brazil cited the fact that his boat was loaded on that voyage from New York with cargo for Santos only, whereas formerly such a thing. was unknown, the vessel being compelled, in order to make up a cargo for Brazil, to take freight for several ports.

As confirming Brazilian opinion, I embody statistics which appeared in the Brazilian Review on December 20 last, prepared by the editor, Mr. J. P. Wileman, well known as a writer on economic and financial subjects. This Government publishes no statistics, hence the difficulty in arriving at just conclusions.

REVIEW OF FOREIGN COMMERCE OF BRAZIL.

*

Mr. Wileman estimates that imports during the last five years. have grown steadily up to 1895, when they reached the maximum of £33,325,876 ($162,180,376) and then fell to £31,508,096 ($153,334,149) in 1896 and £25,774,885 ($125,433,478) in 1897, while for 1898 the value is expected to be about £23,000,000 ($111,929,300). He says:

The relative value of coffee exports and of imported goods since 1894 is in round numbers as follows:

As is shown by the above table, the normal percentages of the value of coffee to imports appear to be about 70 per cent-that is, that coffee alone should be sufficient to pay at least 70 per cent of imports. In 1895, the proportion remained about

*The values throughout this review have been reduced to United States currency in the Bureau of Foreign Commerce.

the same; in 1896, in consequence of falling prices of coffee and insufficient reduction of imports, the proportion fell to only 60 per cent; in 1897, in spite of much lower prices, the greater quantity maintained the value of coffee about the same as in 1896, while imports fell heavily, in consequence of which the percentage rose to 73.7 per cent; while in 1898, if our anticipations be correct, the value of coffee will represent not more than 60.9 per cent of imports, and is therefore considerably below the normal rate of 70 per cent. In other words, we are still importing much more than we can afford and living, in fact, on credit or on the surplus that the funding operation has afforded.

As the value of coffee falls, that of imports must decline, unless there is some compensation of another kind. Certainly, the suspension of the service of the foreign debt is such a compensation, and has in a way interrupted the natural process of balancing our obligations and assets; but the fact remains evident and indisputable that even with the large reduction imports have already undergone, they are still in excess of the true purchasing power of the country.

Exports to Brazil have fallen off since 1893 from every one of the principal countries, with the single exception of the United States. The reduction is as follows: Great Britain, 18.5 per cent; France, 28.6 per cent; Hamburg, 21.2 per cent; Belgium, 53.5 per cent; Argentine Republic, 11.1 per cent; Uruguay, 17.8 per cent; and Portugal, 16.7 per cent. The only increase was that of 13.4 per cent for the United States. The greatest reduction was in exports from Belgium, of 53 per cent. That the falling off is not due solely to high tariffs is proved by the fact that, in spite of the reduction of the tariff, the value of imports continues to decline. Naturally, it must adjust itself to the purchasing power of the country. If our principal medium of exchange-coffee-has within a few years experienced a fall of 40 per cent in value, how is it possible to expect that the value of imports can continue unaltered?

For the year 1897, the total value of all the merchandise imported by the eight leading countries given above from Brazil amounted to 53,638,544 milreis gold ($29,286,645) exclusive of coffee and rubber, the real c. i. f. value of which, for which the country is creditor, being 44,434,542 milreis gold ($24,261, 260), equivalent to £4,998,885, or, say, in round numbers £5,000,000-not a very extravagant valuation when it is considered that it includes the value of all exports of cocoa, hides, and saladero produce, herba matte (which almost reaches a million), tobacco, sugar, minerals, etc.

The years 1897 and 1898 show the following results:

Summing up, we now perceive that the value of imports and exports for 1897