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
From the commercial point of view, agricultural production thus depends
chiefly on the importing markets. This is so far the case that if we
look into the monthly figures of exportation, remembering that threshing
begins at the end of December and continues sometimes into March or
April, we shall find that by June three-quarters of the year’s export
has already been shipped. The exportation of wheat in 1907 amounted to
100 million bushels, and by the end of June 79 million bushels, or 79
per cent., had already been shipped. The quantity of maize exported
during the same year was 48 million bushels, and in October, that is,
five months after the harvest, 40 millions had already been shipped; that
is, 84 per cent. The statistics of the carriage of cereals by railroad
also clearly prove the pressure and congestion existing in the months
following the harvest.
From this peculiarity it follows that there is always a struggle
latent between the exporters of agricultural produce and the transport
companies. In some cases, as in 1905, this struggle took the form of
judicial protest; the chief export houses sued the “Great Southern of
Buenos Ayres” for damages in respect of unjustifiable delay in the
transport of cereals.
It must be admitted, however, that the railway companies are not always
the cause of such delays in export; there are other factors also which
we must take into account and consider in relation to the national
production.
One of the elements which influence the regularity of transport is the
amount of cargo-room available at the ports. When there are many steamers
and sailing-ships in port the shipping rates fall; the exporters hurry
to make contracts with the shipping lines, and in order to be in time
to avoid surcharges, they demand a large number of goods wagons of the
railways, which the latter naturally cannot always produce. The law
states that the railway companies must maintain a goods service equal
to the normal demands of the traffic; and the demands created by the
accidental causes we have mentioned are not normal.
On the other hand, if the shipping contracts are high, or the prices in
the consumers’ market low, the buyers will be unwilling to despatch their
cereals to the ports of embarkation, and the railway companies can do
nothing to clear their stations of large quantities of accumulated grain,
which they cannot forward, since the buyers will not give the order for
their despatch.
During a recent harvest both these phenomena were observed; on the
Southern Railway the harvest was abundant in quantity and good in
quality, but only a small number of steamers were lying in the terminal
port (Engineer White Harbour); every exporter in the district wanted to
ship at once, but the railway could carry only what it was capable of
carrying in a normal period.
Public-domain text, read in full here on John Shaqi.
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