CHAPTER IX

MODERN ARGENTINA--SETTLEMENT AND PROGRESS

The era of modern Argentina is inaugurated by the Presidency of

Sarmiento in 1868. Hitherto her business had been to work out her

destiny with much waste of human life and wealth, now her task was

to create both. Population[53] began to increase and industries

flourished. Railways were extended and the administration was

improved. It was a season of prosperity in almost every part of the

world, and in this Argentina fully shared. Brazil had suffered much

during the war, and Argentina profited by supplying its needs and also

made up for her own losses by developing the vast pastoral and

agricultural resources. The only political event of importance during

Sarmiento's term of office was an insurrection in Entre Rios, where

the veteran Urquiza was still Governor. One Lopez Jordan was leader of

the revolt, and he succeeded in capturing and murdering Urquiza. The

old man deserved a more peaceful end, for, though cruel, he had aimed

at the public welfare, and he was one of those who did good service in

establishing the Republic on a firm basis. After much bloodshed the

rebellion was suppressed by young Julio Roca, a rising soldier.

Sarmiento's term of office came to an end in 1874. Mitre, favoured by

the Porteños, and Dr. Avellaneda were rivals for the succession, and

the latter became President, greatly to the annoyance of the Porteños.

He introduced a more economical policy, and the country continued to

prosper, but by far the most important event of the time was the

reduction of Patagonia--an event the magnitude of which cannot even

yet be estimated. It was less than a hundred years ago since the first

small attempts at settlement had been made there, and Patagonia was

still practically an enormous waste, a no-man's land, unmapped and

roamed over by savage Indians. General Roca, now Minister of War,

began to peg out claims for posterity. After Rosas had fallen from

power the Indians had recovered most of the territory which he had

taken from them, but now that Argentina was at peace the Government

was more than able to hold its own, and in 1878 Roca employed the

whole power of the country to subjugate Patagonia. He succeeded in

making the Rio Negro the southern boundary. The Province of Buenos

Aires claimed the whole of this new territory, but the other members

of the Federation were naturally unwilling to see her thus augmented,

and she had to be content with an addition of 63,000 square miles. The

rest of the new land was divided into Gobernaciones, or Territories,

as they would be called in the United States.

But he was to attain more notoriety in a less useful struggle. The

perennial source of discord--the Provinces against Buenos Aires or the

Federalists against the Unitarians--which ought to have been settled

on the downfall of Rosas, was once more to convulse the Republic.

Avellaneda, who was favourable to the Provinces, was determined to

choose his successor, and the opposition candidate was Dr. Tejedor,

who had the support of Mitre. Roca was the nominee of the outgoing

President. The situation rapidly became strained, and in June and

July, 1880, the partisans of either side took up arms and there was

considerable bloodshed in Buenos Aires. The advantage rested with

Roca's party; the Porteños were compelled to ask for terms of peace,

and at last the difficult constitutional question was settled. Without

delay Buenos Aires was declared the Federal capital, and although the

Porteños were nominally defeated, their principles triumphed in

reality. The result was the establishment of a strong central

Government, and this was of the happiest effect in consolidating the

Confederacy and in binding together its hitherto disjointed members.

* * * * *

This was a time of great material prosperity. Other opportunities will

be taken of dwelling on this subject; here it is sufficient to say

that industry and commerce expanded very rapidly. There was a huge

boom; men seemed to be growing rich rapidly; it was a period of

inflation and the President's attempt to establish the currency on a

gold basis was unpopular and unsuccessful. But under his rule, and

with the assistance of the able Pellegrini, the credit of Argentina

improved and a loan of £8,000,000 was negotiated. On the whole, Roca's

administration did him credit, although undoubtedly he might have

taken more advantage of the exceptionally favourable circumstances,

and introduced sounder and more honest principles of administration.

His successor, Dr. Juarez Celman, was a person of altogether inferior

stamp. The fever for speculation grew rapidly, large additions were made

to the national indebtedness, and the premium on gold doubled. The

Government, as is usually the case with South American Governments, was

below rather than above the public standard of conduct. Government,

Provinces, and municipalities, led the way in wasteful expenditure, the

inflation reached its height. The time of the inevitable crash drew

near.

In 1889 public opinion, wiser than the Government, grew apprehensive,

and the Civic Union was formed with the object of overthrowing the

President and reforming the finances and administration. Roca and

Mitre, sincerely anxious for the good of their country, were the

leading spirits in the opposition, and in July, 1890, the Revolution

began. Some fighting took place, but the spirit of faction was less

ferocious than it had been a generation ago, and most men seemed to

consider that the desperate financial condition needed radical

measures. The resistance of the Government was half-hearted, and on

July 30th Celman resigned.

Pellegrini, the Vice-President, succeeded him, and it was time for the

national affairs to be placed in more capable hands. The treasury was

empty, and there was a great burden of debt. The whole financial and

monetary system was in confusion, and in September Pellegrini was

obliged to issue notes for $50,000,000. This step provided money for

the immediate necessities of administration, but it helped to

precipitate the crash which came in March, 1891. This vast monetary

convulsion will be long remembered in England, and it has served as a

salutary warning both to European investors and to speculators in the

country itself, who now recognise that credit and the reputation for

honesty is one of the chief factors in a country's prosperity. The

Banco Nacional, in spite of all efforts on the part of the Government

to save it, was submerged, and the same fate met every other bank

except the London and River Plate. As a matter of course, political

trouble followed industrial trouble, and in February while Roca was

driving in a carriage he was fired at and slightly wounded. It was,

however, to him and Mitre that the people looked to extricate them

from their troubles, and the Porteños nominated Mitre as candidate for

the Presidency amidst great enthusiasm, but the Cordoba section was

indignant, and Mitre was induced to withdraw on condition that the new

candidate should be non-party and that the election should be

impartial. At the beginning of 1892 Saenz Peña, the candidate favoured

by Mitre and Roca, was elected, and Alem, the leader of the new

Radical party, known as the Civic Union, was banished. Pellegrini's

term of office had disappointed his supporters and few regretted his

retirement.

The task of Peña was hardly less difficult than that of Pellegrini.

The improvement in the finances and administration came very slowly,

but the chief troubles were political, for Argentina had not yet

adapted herself to the smooth working of federal institutions.

Alem, who had returned from exile, was still preaching disaffection

and taking advantage of the turbulent disposition of the various

Provinces. In 1893 Costa, the Governor of the Province of Buenos

Aires, who had a strong military force, planned the overthrow of the

central Government, and his example was followed by Santa Fé and

several other Provinces. In August Costa was forcibly deposed, but the

movement in Santa Fé was fostered by Alem, and the Radicals were eager

to overthrow Peña and his friends. Matters grew extremely serious, for

there was disaffection in the navy, but on September 25th General Roca

took command of the army, and on October 1st he rescued Rosario

from the hands of the revolutionists. Alem and other leaders were

imprisoned and the power of the Radicals vanished, but public affairs

remained in a threatening condition.

Evidence was found of widespread corruption, and that there was no

public feeling against it is shown by the following incident. Costa

had left the affairs of Buenos Aires in confusion, and the central

Government appointed Dr. Lopez to administer them. He found evidence

of malpractices against one Colonel Sarmiento and charged him, but

failed to secure a conviction. Thereupon Sarmiento provoked Lopez to a

duel, in which the latter was mortally wounded, but Sarmiento received

a merely nominal punishment. The Government was thoroughly distrusted;

it seemed powerless to reform abuses, and there was little likelihood

that if the ruling Ministers were removed their successors would do

any better. Such progress as the country made was due to the efforts

of private citizens and the improvement in the trade conditions of the

world.

The detachment of Peña from political parties had been expected to

prove advantageous, but in practice this was not the case, for the

President, having no party, had no supporters in the Congress, and

matters approached a deadlock. At the beginning of 1895 the President

found it impossible to induce the Congress to vote the Budget, and

there was also a split in the Cabinet about the fate of two naval

officers condemned for participation in the Santa Fé outbreak. Peña

wished to confirm the death sentence; there was strong opposition, and

Peña was probably glad of the excuse to resign and disappear from

political life. This took place on January 21, 1895. The sentence upon

the two officers was commuted to one of imprisonment.

He was succeeded by the Vice-President Uriburu, who had also been

chosen on account of his neutrality; but he was more successful, and

he had the powerful support of Roca and Pellegrini. During his first

year of office it seemed probable that a foreign war would be added to

all the other troubles of the Republic, for the boundary dispute with

Chile was assuming a threatening attitude and continued to disturb

public tranquillity for seven years. This subject can be treated more

conveniently in the history of the next administration, when it was

settled. In this year a boundary dispute with Brazil about the

Misiones was settled by the arbitration of President Cleveland in

favour of the latter country.[54]

Little progress in settling the nation's difficulties was made under

Uriburu, but internal and external peace was maintained. In 1898

General Roca succeeded him as President, and it was generally felt

that a man had appeared who was competent to steer the ship of State

into smoother waters. He had been of great service during the troubles

which had attended the resignation of Celman, and had kept the

disorderly elements in check. He had, all through the troubles of ten

years, been on the side of law and order, and he was practically the

leader of a national party.

In May, 1898, the President in his message to Congress denounced

judicial corruption, and the publicity which he gave to these abuses

resulted in several improvements; but there is still much matter for

adverse criticism in the administration of justice in Argentina. The

improvements in Government methods led to gradual general improvement,

which, however, was also the result of natural causes, and Argentina

became undoubtedly the most prosperous country in South America. The

fear of political disintegration has become a thing of the past, owing

to the preponderance of the capital in wealth and influence, but

neither Roca himself nor any other successor has been able to banish a

serious evil from which Argentina suffers, and which, though not

causing civil war on a large scale, brings about disquieting strikes

and riots. This is due to defective methods of government. The

President may be said to have been the "saviour of his country" in the

sense that a weaker or dishonest man would probably have plunged the

country into both domestic and foreign war, and neutralised all the

progress of a generation. But he could not bequeath political capacity

to his colleagues, nor could he eradicate many bad traditions of long

standing.

His last work was the settlement of the boundary dispute with Chile.

It is not necessary to go into the history of the subject previous to

the Treaty of 1881. In the old Spanish days there had been uncertainty

about the boundary, and during the existence of the two Republics the

quarrel had never slept. "During the whole of its progress the

Argentine Republic contended that her western boundary from north to

south was the Cordillera de los Andes, and that, in consequence, she

had dominion over all the territory eastward of the crest of the

Cordillera, the greater part of the Straits of Magellan, and the whole

of Tierra del Fuego. Chile on her part accepted the natural boundary

of the Cordillera, to a great extent, but maintained that this

boundary did not rule in the southern part of the continent; that in

Patagonia the territory on both sides of the Andes were Chilian, from

the Pacific to the Atlantic; that the Straits of Magellan were

Chilian; and that Tierra del Fuego was also Chilian."[55]

The two Republics made a Treaty in 1881. They agreed that down to 52°

S., _i.e._, to the Straits of Magellan, the boundary was to be the

Cordilleras de los Andes. The line was to pass over the highest points

of the watershed. The southern boundary was also determined. The

Treaty represents a concession on the part of Chile, who gave up her

extravagant claims to the east of Patagonia. But she still claimed

that the line should follow the highest points in the watershed, while

the Argentine Government insisted that the line should run from

highest peak to highest peak.

This Treaty was ratified, but not carried out. In 1883 the Argentine

Government informed its Ambassador at Santiago that the time had come

to trace the boundary line. But procrastination is a South American

characteristic, and the affair drifted on until, in 1888, a Convention

was made. In accordance with the Treaty of 1881, this Convention

appointed experts to trace the line. The matter, in fact, was one of

great difficulty, for unfortunately it turned out that the watersheds

and the highest summits did not coincide, and the experts disagreed

hopelessly.

The question of the rivers had raised fresh obstacles, and the experts

had brought matters to such a tangle that it was necessary in 1893 to

draw up a Protocol to explain them further. The main principle which

it fixed was that in case the high peaks of the Cordillera should be

crossed by any river, that river should be cut by the boundary line.

The experts continued their work, which was extremely arduous, for the

boundary line ran through unexplored forests and mountains. But in

1895 feelings ran to a dangerous height in both countries, and the

people of Argentina declared that the Chilians were assuming an

aggressive attitude and were likely to attack them. They were made the

more uneasy by the discovery that the army and stores had, like

everything else, suffered from long years of misrule, and Congress

voted fifty million gold dollars for military preparations. In July,

1898, a further controversy arose. The Puna de Atacama is a great salt

waste of rugged tableland, volcanic, grassless, and inhospitable.

Working from the north, the experts had found no great difficulty

until they reached this savage territory. Here there was a deadlock,

and the Chilians claimed the whole district. Possibly the belief

that the disputed territory contained considerable borax deposits

accentuated the quarrel, but the main source of it was national pride,

for the majority of the Andine territory was of small value. The

experts south of the Atacama waste proceeded more smoothly till they

reached Patagonia. "Here,[56] indeed, the fundamental condition of

identity between the "highest crest" and the "water parting" (or

"divide," as it is called in North America), existed in full force,

and no ground for dispute presented itself, the "main range" of the

Andes being exceptionally well adapted by position and structure for

an international boundary. It was the divergence of these two

essential conditions in Patagonia which imperilled the peace of South

America. The Patagonian rivers were found to flow from east to west

right athwart, or transverse to, the general trend of the Andine

mountain system from north to south. They were found to break across

the great mountain masses, and to intersperse wide valleys, across

which the boundary must either be carried from one mass of peaks to

the next or else be made to skirt the indefinite edge of cordillera

and pampas, where the two insensibly combine and where the rivers

rise. A very little examination proved the incompatibility of "higher

crests" with "water parting" as a fixed principle of demarcation in

these parts."[57]

With this fruitful field of dispute before them it is not surprising

that angry feelings were engendered, especially among the Chilians,

who have narrow territory, and were unwilling to give up a square mile

without a struggle. In August Chile despatched an ultimatum demanding

arbitration, and Roca induced his Cabinet to assent to the demand.

[Illustration: BOUNDARY LINE IN THE ANDES.]

The smaller question--the Atacama territory--was referred to the

United States. Mr. Buchanan was appointed arbiter, and he was assisted

by one Chilian and one Argentine Commissioner. Mr. Buchanan drew a

boundary line which he considered to be just, and by an ingenious

device contrived that both the agreement and the disagreement of the

Commissioners should preserve its integrity.[58] The dispute was

thus happily settled, and not long afterwards Roca met the Chilian

President at Punta Arenas, and an agreement to restrict armaments was

made.

But the Patagonian boundary was a matter of much greater difficulty. It

was referred to Great Britain, and in December, 1899, the Commission in

London issued a most exhaustive report. It was necessary to proceed very

slowly in such a perplexing matter, and public feeling was greatly

excited, both countries appearing to be eager for war. Such a

catastrophe seemed to be probable, for Señor Alcorta, the Argentine War

Minister, was extremely bellicose, but on January 31, 1902, Sir Thomas

Holdich was sent with a small Commission to endeavour to determine the

boundary line, and it was intimated to both Governments that if hostile

preparations continued King Edward VII. would be compelled to withdraw

from his position as arbiter. The tension was somewhat relieved by the

sudden death of Señor Alcorta, and Roca acted a statesmanlike part in

working for peace, and it was largely through his exertions that in

June, 1902, a Treaty was signed to restrict armaments. When Sir Thomas

Holdich's Commission gave its decision a few months later, the award was

loyally accepted.

This settlement of a great question is one of the most signal triumphs

for the principle of arbitration, for on this occasion neither party

was willing to make concessions and the disposition of both was rather

to war than to peace. The benefit of the settlement was incalculable,

for it preserved the two most flourishing States in South America from

a war which would have gone far towards ruining both.[59] This example

has been of the utmost value to South America, and arbitration is

undoubtedly beginning to replace the appeal to arms.

With this triumph of peace this modern history of Argentina may fitly

be closed. President Roca, who had deserved so well of his country,

was succeeded in 1904 by Dr. Manuel Quintana, who still holds that

post, and his term of office has been one of great material prosperity

for the Republic.

FOOTNOTES:

[53] 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 450 per cent. (Dawson, "South American Republics"

i. 143).

[54] "The boundary line between the Argentine Republic and the United

States of Brazil, in that part submitted to me for arbitration and

decision, is constituted and shall be established by and upon the

rivers Pepiri (also called Pepiri-guazu) and San Antonio" ("The

Misiones Award," Article VI.).

[55] Report, i. 152.

[56] _I.e._, north of Patagonia.

[57] Sir T. H. Holdich, "The Countries of the King's Award," p. 50.

[58] "Where the boundary was adverse to Chile the Argentine

Commissioner voted for it, and Mr. Buchanan siding with him gave a

majority against the Chilian representative. Where the conditions were

reversed, Mr. Buchanan agreed with the Chilian Commissioner. In this

manner the work was concluded in three days" (Akers "A History of

South America," p. 114).

[59] "Political combination is now possible between two strong and

self-reliant Republics, recognising a common ancestry, bound by the

ties of ethnic affinity, owning and revering the same splendid history

(which has before now included concerted action in the common cause of

South American freedom), and rejoicing in the present possession and

future prospect of magnificent material advantages, such as never

could possibly be secured, except under conditions of peaceful

development, unchecked and unhindered by the recurrent threat of war.

It is difficult to overestimate the results of such a combination on

the future of South America" ("Holdich," Ibid. pp. 413, 14).

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