Gervasio Videla Dorna to Dr. Don Bernardo be Irigoyen, July 25, 1877

[Inclosure 2 in No. 199.—Translation.]

[From El Industrial of Buenos Ayres.]

AMERICAN ZOLLYEREIN.

projection—our commerce with the united states.

We publish below an interesting document, in which the advantages of protection are shown, and in which it is defended by Mr. Evarts, minister of foreign relations of the great republic. This document furnishes the best evidence of the advantages of the protective system among young nations. The United States are giving us a lesson by which we ought to profit. We recommend its perusal on account of the data which it contains and the harmony of the views therein expressed with our own.

Mr. Minister: Mr. William M. Evarts, the Secretary of State, under whose charge is the Department of Foreign Relations of the United States, has sent special instructions to his diplomatic and consular agents in foreign countries to examine and report concerning the demands of consumption of the countries to which they are respectively accredited, with a view to extending the market for American manufactures, and in order to enable the United States to conclude suitable commercial conventions with those countries.

We, Mr. Minister, can purchase to advantage many articles manufactured in the United States; but we also have many products to sell in exchange.

There is a harmony, then, between our necessities, and the time seems to have arrived to present our case in such a manner as to suit Our interests by granting privileges in exchange for privileges if necessary, and obtaining on our part a reduction of the export duties on our wool, hides, and other articles of Argentine production. This will develop our commercial relations with the United States, and as an immediate consequence will increase direct steam communication, thereby facilitating travel, the conveyance of merchandise and postal correspondence between the two countries.

Mr. Evarts seems to base his policy on the following arguments which have been published by the press of this country:

The industrial interests of the, United States do not require free trade. The first duty of a government is the judicious protection of the productions of the capital and labor of its own people.

The agricultural classes of the West and the manufacturing classes of the East are mutually interested in the preservation and promotion of domestic industry, because no one class of people can long prosper without the co-operation of the productive labor of the others. Protection is only necessary when it defends domestic industry against ruinous foreign competition. By the improvement of machinery, the cost of production has been considerably diminished in the United States; a judicious encouragement given to American manufactures will give greater energy to their competition with foreign articles.

It is neither protection nor free trade that the United States need, but full trade. The immense productions of the country require an outlet. Production is in excess of the home demand. Take iron for instance. In Pennsylvania, there are 478 furnaces extinguished, the total number being 714; this represents a paralyzed capital of $100,000,000. The capacity of the total number of these furnaces is equal to double the demand, and the same is the case with other industries. Although agricultural productions are a great source of wealth in the United States, yet it is necessary to encourage manufacturing and commercial industry if we are to attain a prominent position among the nations of the world in the contest of peaceful arts.

The domestic exports of the United States during the past year were as follows: Cotton, $192,000,000; grain, $33,000,000; wheat, $68,000,000; Hour, $24,000,000; other articles, $80,000,000.

The exports of manufactured articles were: Iron and iron manufactures, $9,000,000; steel, $450,000; sole leather, $8,000,000; agricultural implements, $2,500,000.

The imports of manufactured articles: Cotton, $20,000,000; flax, $15,000,000; iron and steel, $10,000,000; silk, $22,000,000; sugar, $71,000,000; wool and manufactures, $38,000,000.

By the aid of wise legislation the greater part of these manufactured articles can be produced in the United States, and the hundreds of millions which are annually sent abroad in payment therefor can be kept at home.

Of the total value of the imports to the United States $315,000,000 were brought in foreign vessels and only $135,000,000 in American vessels. Thus far Mr. Evarts.

Let us now see what the press of the United States says. The following is an extract from the leading editorial of the New York Herald of July 18, 1877:

“One of the greatest ideas of American statesmen has been with respect to this closeness of commercial relations between the United States and the nations of North, Central, and South America. The possibility of a great American Zollverein or commercial union, comprising all the States of both American continents, may be a dream of the future; but it is a dream for the realization of which every American who desires to serve his country may well labor with enthusiasm. We are to-day one of the greatest manufacturing nations of the world. We use more and better labor-saving machinery than any European nation. Not one of the other nations on these two continents has paid much attention to manufactures. They are not like the nations of Europe, our competitors. They produce principally the raw material used in manufacturing, which they exchange for manufactured goods. Thus they will continue for many years to furnish us an almost unlimited market for our manufactures, if we only have sufficient shrewdness and foresight to make use of our advantages. What we require for this purpose is what Mr. Evarts can do for us; we need new and better commercial conveniences. A few figures will show how great are the opportunities (too long neglected by us) to create a market for our excess of manufactures. Of, the total imports of Mexico, which amount to $30,000,000, we send only $5,000,000. Canada imports nearly $130,000,000 per annum, but takes only $34,000,000 from us, her nearest neighbor. Brazil imports about $85,000,000, but takes a beggarly seven millions of our products, although we buy to the amount of $35,000,000 from her. Chili imports about $40,000,000, but takes only two millions of our manufactures. The Argentine Confederation imports to the value of $54,000,000 a year, but buys of us only a million and a half. The account is as one-sided in almost all the South and Central American countries. They buy elsewhere, mainly because they sell their raw materials elsewhere. From Chili, for instance we bought in 1876, only to the value of $586,000, while her total exports amounted to over thirty-five millions. The total exports of the Argentine Confederation amount to over fifty millions, of which we buy about four millions. It is easy to see that there is something wrong in all this. We neither buy nor sell as our skill, the excellence and variety of our products, and the enterprise of our people would lead us to expect; and when we look over the figures representing the total imports of these countries who are our neighbors and our natural allies no one can help seeing what an immense opening there is right here at our doors for the sale of our surplus products. We can do without Europe. We need not seek to sell a yard of cloth or a pound of any manufactured article in Europe, if only we can command, as we ought, the great and growing commerce of North and South America.”

The Argentine Republic should receive these words of the government and press of the United States with sympathy and interest, and co-operate to the extent of its ability in order to obtain its share of the benefits which must result. Your excellency will doubtless communicate all necessary information to the diplomatic and consular officers of the United States in the Argentine Republic, and suitable instructions to this legation to enable it properly to sustain our side of the question.

I take pleasure on this occasion in reiterating to your excellency the assurances of my highest and most distinguished considerations.