The great danger in all labour troubles in the Argentine lies in the fact that they are apt to become general and paralyse trade. It is usually impossible to secure "blacklegs," a circumstance which the workmen fully realise. Moreover, owing to the peculiar economic conditions of the country, a strike on the part of the workmen in one industry means that all the workmen in that industry stop work; and, as trade is usually in a state of congestion, the difficulties created are enormous. A dock strike in Buenos Aires is doubly serious, because the port is already overcrowded, and there is no alternative port suitable. A match strike, with the present tariff, causes a match famine. A railway strike is sure to break out only when the year's harvest must be negotiated. And should any single strike show signs of missing fire, in all probability the result is a sympathetic strike on the part of all workmen, including cab-drivers and bakers. The problem before the Government is very serious, if, indeed, it is not a question which it would be wise for the parties concerned to work out for themselves. Considerable success is reported to have attended the efforts of the Western Railway, who have instituted a conciliation board for the mutual consideration of difficulties with their employees. But unless by some means the cost of living is reduced, it is difficult to see how satisfactory conclusions can be attained. If prices continue to rise as, in all probability they will, a rise in wages will be imperative. This, in the case of railways would mean an increase in rates, as there are few who are earning more than a reasonable dividend, while an increase in rates would cause great dissatisfaction to the whole agrarian population; after all by far the most important in the country. It is even doubtful whether cereals could stand any heavier rates than they bear at present. The root of the labourer's dissatisfaction lies, as has been said, in the high cost of living. Unless this can be lowered, there can be no hope of a final settlement. And the only means of lowering it is a reduction in the tariff and a greater mobility of trade in the interior. CHAPTER IV. FOREIGN CAPITAL AND PUBLIC DEBT. It is not the intention to deal in this work with the market fluctuations, the arrangements made between provincial banks and their creditors, nor with any of the financial aspects which these questions have recently assumed. Such a course would not only be out of place, but would be of little interest or value, owing to the unstable state in which the negotiations are at present. The object will be rather to indicate the part that foreign capital has played in the development of the country and that played by politics in finance.