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 prime necessity to the commercial world of many Argentine products, such as beef, mutton, hides, wool, wheat and Indian corn. Efforts to hasten this development have created some serious financial and industrial crises, and have burdened the country with heavy debts and taxes. During the decade 1881–1890 great sums of European capital were invested in railways and other undertakings, encouraged by the grant of interest guarantees and by state mortgage bank loans in the form of cedulas, nominally secured on landed property. In 1890 the crisis came, the mortgage banks failed, credits were contracted, the value of property declined, defaults were common, imports decreased, and the losses to the country were enormous. The constant fluctuations in the value of the currency, then much depreciated, intensified the distress and complicated the situation. Recovery required years, although made easier by the sound and steady development of the pastoral and agricultural industries, which were slightly affected by the crisis; and the steadily increasing volume of exports, mainly foodstuffs and other staples, saved the situation. There have been some changes in commercial methods since 1890, the retailer, and sometimes the consumer, importing direct to save intermediate commission charges. Such transactions are made easy by the foreign banks established in all the large cities of the republic. The conversion law of 1899, which gave a fixed gold value to the currency (44 centavos gold for each 100 centavos paper), has had beneficial influence on commercial transactions, through the elimination of daily fluctuations in the value of the currency, and the commercial and financial situation has been steadily improved, notwithstanding heavy taxation and tariff restrictions. The import trade shows the largest totals in foodstuffs, wines and liquors, textiles and raw materials for their manufacture, wood and its manufactures, iron and its manufactures, paper and cardboard, glass and ceramic wares. The official valuation of imports, which is arbitrary and incorrect, was $164,569,884 gold in 1889, fell off to $67,207,780 in 1891, but gradually increased to $205,154,420 in 1905. The exports, which are almost wholly of agricultural and pastoral products, increased from $103,219,000 in 1891 to $322,843,841 in 1905.

Government.—The present constitution of Argentina dates from the 25th of September 1860. The legislative power is vested in a congress of two chambers—the senate, composed of 30 members (two from each province and two from the capital), elected by the provincial legislatures and by a special body of electors in the capital for a term of nine years; and the chamber of deputies, of 120 members (1906), elected for four years by direct vote of the people, one deputy for every 33,000 inhabitants. To the chamber of deputies exclusively belongs the initiation of all laws relating to the raising of money and the conscription of troops. It has also the exclusive right to impeach the president, vice-president, cabinet ministers, and federal judges before the senate. The executive power is exercised by the president, elected by presidential electors from each province chosen by direct vote of the people. The president and vice-president are voted for by separate tickets. The system closely resembles that followed in the United States. The president must be a native citizen of Argentina, a Roman Catholic, not under thirty years of age, and must have an annual income of at least $2000. His term of office is six years, and neither he nor the vice-president is eligible for the next presidential term. All laws are sanctioned and promulgated by the president, who is invested with the veto power, which can be overruled only by a two-thirds vote. The president, with the advice and consent of the senate, appoints judges, diplomatic agents, governors of territories, and officers of the army and navy above the rank of colonel. All other officers and officials he appoints and promotes without the consent of the senate. The cabinet is composed of eight ministers—the heads of the government departments of the interior, foreign affairs, finance, war, marine, justice, agriculture, and public works. They are appointed by and may be removed by the president.

Justice is administered by a supreme federal court of five judges and an attorney-general, which is also a court of appeal, four courts of appeal, with three judges each, located in Buenos Aires, La Plata, Paraná and Córdoba, and by a number of inferior and local courts. Each province has also its own judicial system. Trial by jury is established by the constitution, but never practised. Civil and criminal courts are both corrupt and dilatory. In May 1899 the minister of justice stated in the chamber of deputies that the machinery of the courts in the country was antiquated, unwieldy and incapable of performing its duties; that 50,000 cases were then waiting decision in the minor courts, and 10,000 in the federal division; and that a reconstruction of the judiciary and the judicial system had become necessary. In June 1899 he sent his project for the reorganization of the legal procedure to congress, but no action was then taken beyond referring the bill to a committee for examination and report. The proceedings are, with but few exceptions, written, and the procedure is a survival of the antiquated Spanish system.

Under the constitution, the provinces retain all the powers not delegated to the federal government. Each province has its own constitution, which must be republican in form and in harmony with that of the nation. Each elects its governor, legislators and provincial functionaries of all classes, without the intervention of the federal government. Each has its own judicial system, and enacts laws relating to the administration of justice, the distribution and imposition of taxes, and all matters affecting the province. All the public acts and judicial decisions of one province have full legal effect and authority in all the others. In cases of armed resistance to a provincial government, the national government exercises the right to intervene by the appointment of an interventor, who becomes the executive head of the province until order is restored. The territories are under the direct control of the national government.

Army.—The military service of the republic was reorganized in 1901, and is compulsory for all citizens between the ages of 20 and 45. The army consists of: (1) The Line, comprising the Active and Reserve, in which all citizens 20 to 28 years of age are obliged to serve; (2) the National Guard, comprising citizens of 28 to 40 years; (3) the Territorial Guard, comprising those 40 to 45 years. Conscripts of 20 years of age have to serve two years, three months each year. The active or standing army comprises 18 battalions of infantry, 12 regiments of cavalry, 8 regiments of artillery, and 4 battalions of engineers. A military school, with 125 cadets, is maintained at San Martin, near the national capital, and a training school for non-commissioned officers in the capital itself. Compulsory attendance of young men at national guard drills is enforced for at least two months of the year, under penalty of enforced service in the Line. In 1906 the president announced that permission had been given by the German emperor for 30 Argentine officers to enter the German army each year and to serve eighteen months, and also for five officers to attend the Berlin Military Academy. The equipment of the standing army is thoroughly modern, the infantry being provided with Mauser rifles and the artillery with Krupp batteries.

Navy.—The disputes with Chile during the closing years of the 19th century led to a large increase in the navy, but in 1902 a treaty between the two countries provided for the restriction of further armaments for the next four years. The naval vessels then under construction were accordingly sold, but in 1906 both countries, influenced apparently by the action of Brazil, gave large orders in Europe for new vessels. At the time when further armaments were suspended, the effective strength of the Argentine navy consisted of 3 ironclads, 6 first-class armoured cruisers, 2 monitors (old), 4 second-class cruisers, 2 torpedo cruisers, 3 destroyers, 3 high-sea torpedo boats, 14 river torpedo boats, 1 training ship, 5 transports, and various auxiliary vessels. Two of these first-class cruisers were sold to Japan. The armament included 394 guns of all calibres, 6 of which were of 250 millimetres, 4 of 240, and 12 of 200. There are about 320 officers in active service, and the total personnel ranges from 5000 to 6000 men. The service is not popular, and it is recruited by means of conscription from the national guard, the term of service being two years. These conscripts number about 2000 a year. In addition, there is a corps of coast artillery numbering 450 men, from which garrisons are drawn for the military port, Zárate arsenal and naval prison. The government maintains a naval school at Flores, a school of mechanics in Buenos Aires, an artillery school on the cruiser “Patagonia,” and a school for torpedo practice at La Plata. The naval arsenal is situated on the “north basin” of the Buenos Aires port, and the military port at Bahia Blanca is provided