-----+-------------------------+------------------------- | REVENUE. | EXPENDITURE. +------------+------------+------------+------------ | Gold. | Paper. | Gold. | Paper. -----+------------+------------+------------+------------ 1903 | 46,615,855 | 65,466,010 | 32,139,160 | 93,072,572 1904 | 52,254,428 | 70,004,834 | 25,597,625 | 104,177,150 1905 | 53,076,067 | 84,778,282 | 82,813,587 | 136,065,516 1906 | 61,616,090 | 88,835,790 | 30,128,828 | 174,688,551 1907 | 64,527,983 | 97,153,870 | 25,521,412 | 186,107,107 -----+------------+------------+------------+------------ In conclusion, the important subject of tariffs demands notice. The Republic has long adopted a highly protective fiscal policy. The object is to create as many industries as possible, and therefore to discourage foreign competition by the imposition of heavy duties. The high cost of living is usually attributed to this system, and undoubtedly many articles would be cheaper if the tariff was lower; but its effect is probably exaggerated, and even under complete Free Trade Argentina would still be a dear country. It is the comparative lack of development and enterprise, and also the unwillingness to take trouble over small things, which are the main causes of dearness; and this is the characteristic of all new countries. That Protection is unpopular it would be rash to affirm. It is the direct imposts, and above all the municipal, that give rise to complaining in the streets. The immigrants come from highly protected countries, and are accustomed to heavy indirect taxes; they would, in all probability, angrily resent direct taxation, even if it were much lower than the present scale of imposts. As the table above shows, the customs are the sheet-anchor of the Exchequer, and Ministers could not possibly dispense with them, nor would manufacturers hear of such a thing. "Every one," says an experienced resident in Buenos Aires, "as soon as he starts a business, looks about for higher tariffs in his line." A good many among the intellectual classes have academic leanings towards Free Trade, and the opinion is sometimes expressed that in the end the Government would raise more revenue by a general duty of about 20 per cent. But the manufacturing interest, which already complains that it cannot compete with English and French goods, is an insuperable obstacle.