The Argentine in the Twentieth CenturyMartínez, Alberto B.
History
The Argentine in the Twentieth Century
Martínez, Alberto B.
Argentina -- Commerce; Argentina -- Economic conditions; Finance -- Argentina
We have stated that the Argentine Republic underwent a crisis in the
matter of sugar, on account of excessive production; and that like other
sugar-producing nations she has had to facilitate the export of the
surplus by granting a bounty to exportation.
This premium or bounty was conceded in the following manner: a law of
1894 forced the producer to pay 6 centavos per kilogram, or ·576d. per
lb. on manufactured sugar; but offered him a bounty of 16 centavos
per kilogram——1·536d. per pound——on all sugar exported under certain
conditions.
This law ceased to be in force on the 31st of December 1904; but
was replaced by another, of the 1st of January 1905, by which the
manufacturer who did not export 25 per cent. of the sugar he produced
paid 15 centavos per kilogram——or 1·44d. per lb.——on a quarter of his
produce, or on the proportion which he did not export.
These two laws contain a radical difference. By the first, the State
received 6 centavos per kilogram upon all sugar manufactured, of which
it restored 4 centavos for each kilogram delivered for consumption, and
then restored 16 centavos for each kilogram exported; thus keeping to
a minimum tax of 2 centavos on sugar delivered for consumption. By the
second law the State received nothing on sugar leaving the factory, as
the producer confined himself to giving an undertaking for the value
of 15 centavos per kilogram on a quarter of his manufactures, which
undertaking was returned to him if he exported a quarter of his produce;
so that in case he did export his produce the State gained absolutely
nothing. But according to a resolution on the part of the Government,
passed in April 1905, the tax of 15 per cent. was suppressed, together
with the obligation of exporting a certain percentage of the sugar made.
The sugar industry thereupon entered upon a new period of absolute
liberty, and at the same time was deprived of official protection.
In this matter the Argentine Republic acted in accordance with the
international agreement of Brussels, which suppressed the sugar bounty.
The consumption of sugar during the eight years 1897-1904 was 780,000
tons, or 97,000 tons per annum. This consumption has not actually been
uniform; for instance, in 1897, about 80,000 tons were consumed; while in
1904, 1905, 1906 and 1907, the figures were respectively about 115,000,
162,000, 127,000, and 109,000 tons.
_Vines._——Another important branch of agriculture in the Argentine is
viticulture, which is more especially utilised in the Provinces of
Mendoza and San Juan. To give some idea of the development of this branch
of agriculture we may state that in 1885 80,376 acres were planted with
vines, while to-day the figure is over 139,000. Of this total 74,620
acres are in Mendoza and 30,580 in San Juan. The different species of
grape are selected from the best to be found in cultivation in France and
other vine-growing countries.
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