This book, intended to make known in Europe the present situation and the economic future of the Argentine Republic, comes at an opportune moment to fulfil its mission of popularisation.

During the last ten years of the nineteenth century the Argentine has suffered all the misfortunes and known all the disasters that can affect a rural and agricultural people. The locust, coming from the Tropics, devoured the crops; anthrax, imported from Europe, decimated the cattle; the threats of a war with Chili imposed enormous expenses and exhausted the national revenue; finally, a commercial and industrial crisis, and domestic disturbances, consequent upon the general misfortune, completed the tale of calamities which put the vitality of the nation to the test.

But as there is no night so long that it has no dawn, all these shadows fled away. Our quarrel with Chili was submitted to arbitration, and the decision of His Majesty the King of Great Britain not only terminated a cause of difference of fifteen years’ duration, but re-established fraternal relations between the two Republics. The rural plagues were attacked and vanquished by measures which experience indicated as preventive of recurrence; commercial and industrial prosperity returned; the tranquillity of the interior was assured; and the general welfare increased. To accentuate still further this beneficent reaction, the immense and fertile plains of the pampa, open to the activities of the agriculturalists, began to produce abundant harvests, which struck the European markets with amazement, and diverted towards the Argentine a current of gold which was estimated at more than £20,000,000, and a stream of immigration, which, in the year 1904, brought 125,000 workers, and which promises to be even greater in the present year.

The Argentine Republic has issued triumphantly from its lengthy and severe ordeal; it has emerged richer, stronger and more confident of its own destiny than at any other period of its history; and the increase of its revenues and the rapid growth of its prosperity have secured the attention of the great financial centres of Europe.

Public curiosity being thus awakened, many people have inquired: What is the Argentine? How far is the development of its wealth a sound and durable process? What is the probable future of its people? Is it a meteor that flashes brilliantly through space, or a star rising upon the economic and political horizon?

While some content themselves with asking such questions and awaiting their reply, M. Lewandowski, the representative of one of the greatest credit establishments in France, wished to gain some practical experience of the phenomenon. He took the most certain, most practical means; took steamer, crossed the ocean, and landed in the Argentine. With the learned collaboration of SeÑor Alberto Martinez, one of the most competent of men in matters of statistics and finance, he made a profound study of economic questions, and the present book is the outcome of their common observations.

This book should be read by all those who are not convinced that the word Europe sums up all humanity; but who take the pains, on the contrary, to follow the development of all other nations; understanding how necessary it is for the great nations to observe the progress and evolution of the younger peoples. Thus they avoid the risk of being surprised by the sudden apparition of great economic or political forces which they had not foreseen, or by which they had not known how to profit.

South America suffers from a prejudice that we cannot unhappily disclaim as being unjustified. The directing classes in France, as in all other European nations, with the exception of a small commercial and financial circle, seem to have been kept in intentional ignorance of all things relating to the nations of the new continent. The Argentine, Chili, Brazil, Venezuela, Ecuador,—countries separated one from another by enormous distances—are none the less, for the generality of Europeans, more or less one and the same thing; that is, they form a kind of a geographical nebulosity, which is known as South America. The post-office employÉs of Buenos Ayres have often occasion to smile when they read the addresses inscribed on the envelopes of letters dispatched by the learned and scientific bodies of Europe, and Argentines residing abroad continually find food for reflection in the questions asked them by persons occupying the highest positions.

Yet for the old world there is every incentive to study more closely the development of these new peoples. It is enough to point out that the Argentine to-day occupies as significant a position as that held by the United States at the beginning of the nineteenth century; and that its continued evolution will undoubtedly, before the end of the present century, give it an importance equal to that of the United States at the present time.

In a conversation with Mr Roosevelt and his Secretary of State, Colonel John Hay, I had occasion to make this very remark, and the President replied, with the rapidity of judgment and the affirmative tone which are so characteristic of his mind: “In less time than that; you will find fifty years enough; for you will profit by all our experience and all the human progress effected during the nineteenth century.”

The shadow of discredit which has hitherto lain upon South America is explained by the continual anarchy to which the majority of its peoples have lent themselves since the immense colonial empire of Spain threw off its fetters in the first quarter of the last century, in order to break up into fifteen separate republics. This anarchy and disorganisation, compared with the orderly spirit of progress which has reigned in the great republic of the North, have given rise to the belief, to-day general, that the so different destiny of these States was due to the special qualities and aptitudes of the Anglo-Saxon race, which the Latin races lacked.

This belief results from a superficial and incomplete examination of the facts, and has gained easy acceptance, even in works of a more or less scientific nature, such as The Psychological Laws of the Evolution of Peoples, in which the author cites, with regard to the Latin races and the peoples of South America, a number of inaccurate and prejudiced facts, which have been gathered from the writings of a dyspeptic and ill-tempered journalist. Such data have caused M. Gustave Lebon to deduce psychological laws which are hardly favourable to the South American races.

If we wish to gain some idea of the true causes of this diversity of destiny between the peoples of North and South America, we must study the origin of each and the particular form which colonisation has assumed in each case; forms imposed by the force of historic facts rather than by the will of man.

The Anglo-Saxons arrived in the American coasts and founded, in the first half of the seventeenth century, such cities as Boston, Charleston, Philadelphia, etc., when America had already been discovered and explored by the Spaniards a century and a half before. These colonies were formed of groups of families who had abandoned their mother-country to seek a new one, where they could live and labour free from the persecutions of religious and political intolerance.

When these colonies attained a certain fame, the surplus of the overflowing populations of Europe was naturally attracted by these virgin and fertile lands, relatively near at hand though across the ocean. Thus there formed a current of immigration which rapidly peopled America and utilised the great natural resources of its enormous territory. In this way was gradually formed a new people, which was to a certain extent a development of the various nations from which it originated, and which preserved their customs and their political and social habits.

These colonists began by buying land of the native tribes; but, increasing in numbers and in strength, they found it more convenient to rob them, thus forcing the Red Indians to retreat towards the north and west; and for reasons of self-respect, or on account of religious principles, no deliberate attempt was made to mingle with the indigenous population.

This form of colonisation, whose prime cause was to be found in persecution, not in the execution of a preconceived plan, resulted in the existence, at the end of the eighteenth century, of thirteen colonies peopled exclusively by men of the white races, originally natives of the countries of Northern Europe, who had transported to this new soil their manners and customs, their social and political laws, their liberal traditions and their economic system, so that from the moment they declared themselves independent, they were able immediately to form a single nation, united by all the ties which make for the cohesion of a people.[11]

To attain such progress, to reach the summit on which they rest to-day, the United States had only to persist in the same path, to follow the same groove, and the incontestable merit of this people and of its great statesmen is that they have been faithful to the principles of liberty and equality which they inherited from their ancestors, the venerable “conscript fathers”; principles which they ratified in the admirable Constitution whence this vast political organism has derived its cohesion, its vitality, and its strength.

How different were the origins of the peoples of Latin America! The Spanish sailors did not cross the ocean like the passengers of the Mayflower, or the companions of Penn, seeking solitary shores, known though distant, where they might establish a home, there to live and labour in peace and liberty.

The Spanish navigators, as brave as they were audacious, launched themselves into the unknown, guided only by their own genius, in order to discover a world, to conquer new lands, new subjects, for their country and their king; and in the pursuit of that heroic dream they performed exploits which to this day amaze us by their audacity.

These were the famous conquistadores, whom one of their descendants, JosÉ Maria HÉrÉdia, has celebrated in the admirable lines:—

These first colonisers of Spanish America—soldiers, missionaries, officials, adventurers, men without family—seized upon a whole continent, which they discovered and conquered at the price of unheard-of exertions. They parcelled out the land, subjugated the native tribes, reducing them to servitude in their famous encomiendas, or putting into experimental practice, as in the Jesuit missions, theories of collectivism, which is to-day regarded as a modern invention. It was a true feudal system that arose in the new world.[12]

If, on the one hand, the native races were initiated into the doctrines of Catholicism in exchange for their liberty and independence, they did not, on the other hand, receive from their masters any political instruction, but preserved their habits of submission and passive obedience to their chief, which constituted their sole political tradition.

When, therefore, the day of emancipation arrived, and this enormous colony, in arms against its oppressors, declared itself independent, and divided itself into several Republics, the great mass of the population consisted of Indians converted to Christianity, and half-breeds, who preserved their habits unchanged and had no ideas, no traditions, other than that of government by individual might.

Only in the urban centres did the white race, with its conception of political institutions, predominate. And when the new Government wished to organise itself in an independent manner, the two tendencies and traditions, which correspond to two distinct mentalities, violently clashed, and began that long struggle, not wholly terminated even to-day, of which the history is the history of anarchism in America.

Another factor that also procured this conflict was the colonial political economy of Spain, which was not only a mistake, but a mistake of the period; an error which closed the whole continent to commerce, shut it away from the outer world, and maintained these masses of humanity in ignorance and isolation, in order to exploit them simply as a machine, or as an element of wealth for the service of their masters.

The problem which confronted the politicians of South America when they found themselves face to face with this new people, whom they must of necessity organise, was thus very different from, and far more difficult than the problem which the founders of the North American Union had to resolve.

These native masses obeyed with all their might and with the utmost enthusiasm so long as it was a question of fighting against the foreign troops and of winning their independence; but, victory once assured, guided by their leaders, the caudillos, most of whom were white, they revolted against the tendencies which began to show themselves among the Europeans of the cities, and in many places succeeded in dominating over them by force of numbers, thus preventing all political and administrative progress, and maintaining, as their form of government, the personal, arbitrary, and irresponsible power of a leader, that is, of the caudillo.

The written Constitutions which these people had established upon declaring their independence, and which were inspired by the Constitutions of the United States or the Swiss Republic, were thus reduced to a dead letter, as they were in complete contradiction to the political habits of the mass of the populace, and required, for their application, a political education which the peoples of South America did not possess. A whole century had to elapse before immigration, material interest, and the influence of civilisation, were able slowly to modify the political mentality of these peoples, by reinforcing and popularising the principles of government, extirpating the elements and suppressing the causes of the anarchy which had so long disturbed them.

Among the nations which experienced these beneficent influences, the Spanish colony known as the Viceroyalty of the Rio de la Plata, to-day the Argentine Republic, was quite specially favoured. Its territory, composed of immense prairies, the celebrated Argentine “pampas,” stretching from the sea-coast and the river littoral, offered the unique wealth of their fertility and their climate. There were no mines of gold or silver to arouse the greed of adventurers; they came to these regions only to traverse them, and so to proceed immediately to the gold-bearing regions of the distant Cordilleras.

Moreover, the first colonists who established themselves on the banks of the Plata, repulsed and expelled by the natives, were forced to abandon a certain number of cattle and horses, which found in these prairies an admirable opportunity to live and multiply in freedom, until finally they formed the immense herds of wild cattle and horses, whose hides became the principal wealth and the chief article of commerce of these regions.

Although the Rio de la Plata had no commercial relations with the outside world, and was only able to trade with Cadiz, the immensity and the solitude of its shores favoured a contraband trade; to such a degree that English, Dutch, and Portuguese smugglers came from all parts to exchange their manufactured articles for the hides of these wild herds.—This it is that explains how Buenos Ayres was able from the outset to become a great commercial centre, in which the trades dependent upon stock-raising quickly occupied the first place.

Commercial activity, the development of communication by sea, the fertility of the soil, the climate—all contributed from the early days of emancipation to attract European immigration. This immigration, like that which peopled the America of the north, was composed of families who came to settle, to form new homes, to labour. These families, following the example of their predecessors in the United States and for the same causes, did not mingle with the native tribes, but struggled against them, and forced them to abandon their lands and fly to the south, until at last, after a long and cruel struggle, they almost completely disappeared.

This immigration increased year by year, and to-day the great majority of the population of the Argentine Republic—a population now exceeding 5 millions—is of European origin.

That this immigration, which flows from all the nations of Europe, has been the chief agent of the present prosperity of the Argentine, and is the condition of its future greatness, is an incontestable fact. One of our leading statesmen has declared, of America, that “to govern is to people”; and this aphorism has remained a fundamental principle of government. To recognise the full force of this assertion, we must reflect that these unusually fertile prairies, situated in a privileged climate, near the sea-coast or on the banks of enormous rivers, navigable even by transatlantic steamers, need nothing but human labour to transform them, with less effort and at less expense than anywhere else in the world, into immense fields of wheat or maize, or pastures of lucerne, covered with herds, able to produce bread and meat enough to feed all Europe.

Accordingly the agricultural production of the Argentine Republic is limited only by the number of hands which lend themselves to its exploitation; in which we have a repetition of the very phenomenon which has served as the foundation of the development of the United States.

Under these conditions the progress of the Argentine Republic is a necessary and inevitable fact, which extraordinary circumstances might for a time retard, but which nothing could finally arrest; except, indeed, one could restrain the daily exodus of fresh swarms from the human hive, which abandon the old soils, exhausted by production, to seek out the fertile, virgin, and unpeopled areas of the globe.

Hitherto this exodus has been directed principally to the United States; attracted thither by a host of special and favouring circumstances. But the time is rapidly approaching when North America in turn will find herself populated to the saturation point, and will no longer be able to receive the hosts which benefited her formerly. The laws of the United States are already beginning to impose conditions upon immigration which are constantly becoming more severe; and these laws are imposed by the two great political forces—the superior social classes and the lower classes of the people.

The upper classes, Anglo-Saxon in origin, fear that contemporary immigration, coming as it does from peoples of alien race, from the south or east of Europe, may modify or enfeeble those great moral and political qualities to which they attribute the greatness and prosperity of their nation. On the other hand, the federated workers see in these new arrivals, healthy and vigorous, but having fewer needs, a source of dangerous competition, which may have a disastrous influence on conditions of labour and payment.

The stream of irrigation which is now setting in towards the United States, and which amounted in numbers to 800,000 in the year 1904, must necessarily therefore, as time goes on, turn aside in other directions, and as it will nowhere meet with more advantageous circumstances than in the Argentine, it will flow thither as it flows already, but in greater and greater numbers, resulting in a development of wealth and power superior to any hitherto known.

Some persons, however, formulate certain reservations as to the consistency and the political and social value of nations formed by these human inundations, composed as they are of men of different races, having neither the same language, nor the same religion, nor the same customs; they doubt whether this new Babel can give birth to a national spirit sufficiently vigorous to impress a character of political and moral unity upon these new recruits.

In order to prove that these fears are ill-founded, we have only to take the practical example furnished by the United States. Into this vast national crucible there poured, from the outset, the stream of emigration from Great Britain, Holland, France, and Spain; later came Scandinavians, Germans, Lithuanians, Poles, Hungarians, Italians, Syrians and Arabs. From the fusion of all these elements has issued a new race, homogeneous and powerful, with a strong national spirit which is known as “the American spirit,” and under that name has won the respect of the world. This result is neither accidental nor due to special antecedents; it is the consequence of a natural evolution, ably and intelligently directed.

The European law, which attributes to the son the nationality of his father, may have had its justification in the past; to-day it is maintained only by force of tradition.

Nationality and love of country are only an extension of the love of the family and the home; and these sentiments cannot, any more than others, be forced upon one by law. There can exist for a man only the home and the family in which he was born and bred. Doubtless he will feel himself attached to the home of his forbears by ties of sentiment and respect; but all the roots of his intimate feelings bind him to the home and the family into which he was born; they are in his blood, and thence he has received the first impressions which mould his character and imprint those characteristics which form his personality.

It is the same with nationality and the mother-country. It is useless to attempt to persuade either child or man that his country is not that in which he was born, in which he has grown up, but another distant country which he has neither known nor seen.

The difference of origin among the children of immigrants of different nationalities disappears in childhood, through the community of life in school and workshop; through sharing alike in work and play; and it is in the earlier years of life that the mind is moulded by its surroundings; in these years develops that feeling of attachment to the soil, of union, solidarity, and common memories, that shows itself later in an ardent patriotism. Unity of language necessarily favours the process of fusion, and explains the fact that the descendants of immigrants of different race, religion, language, habits and traditions, are able to fuse so completely as to form a perfectly homogeneous population, one in mind and in sentiment, thus constituting a new nationality, young, vigorous and strongly individual.

We have thus under our eyes a practical example of the unity of the human race. The hazards of life, in the course of centuries, having dispersed the primitive race throughout the earth, it has formed, under the influence of circumstances, new types, which in the course of time have met and mingled, to form new crosses in their turn, which as a matter of fact are only the modalities of a common primitive race.

The same phenomenon is being repeated in the Argentine, as in all the American republics, and the spontaneous and vital sentiment of nationality continually strikes the observer, who notes the pride with which a child born in Argentina, whether he be the son of a Spaniard, Frenchman, Italian, or German, affirms, when questioned, that his country is the Argentine.

Thus this Republic possesses all the requisite conditions of becoming, with the passage of time, one of the greatest nations of the earth. Its territory is immense and fertile, its surface being equal to that of all Europe, excepting Russia; it is capable of supporting with care at least 100 millions of human beings; almost every climate is to be found within its limits, and, consequently, it can yield all products, from those of the tropics to those of the polar regions. Its rivers and its mountains are among the greatest of the globe. As its maritime frontier it has the Atlantic, which brings it into contact with the whole world.

It is governed by institutions more liberal than those of any other nation, especially in all that affects the foreigner; it regards the influx of immigration with approval, and seeks to promote it. In proportion as its vast vacant spaces become peopled their value is increased tenfold, and production grows at an enormous pace; for a single family, by the aid of modern machinery, can exploit a larger area of soil, yielding a produce far greater than is required for its own consumption; a fact which explains the surprising rate at which the export trade has increased.

Such are the true causes of the prosperity of this country, as is proved, with abundant detail, by MM. Martinez and Lewandowski; and as these causes are not accidental, but fundamental and permanent, they should produce in South America the same results as in the North.

Granted that wealth and prosperity are essentially conservative elements, we have here a serious guarantee of political stability; the more so as the country has already passed the difficult age and is cured of the malady endemic to South America—anarchy.

It is also to be hoped that our Argentine politicians, taught by experience, and comprehending all the responsibilities imposed upon them by their noble mission—the work of racial regeneration and the betterment of South America—will succeed in making constitutional government an actual fact, by restraining and uprooting the tendency to personal power, which is the lamentable heritage of indigenous tradition.

It is a great nation that is rising on the brink of the twentieth century; the mistress of an enormous inheritance. Immigration and the increase of the birth-rate are furnishing it with the arms it requires; it lacks only those reserves of capital which, like all new peoples, it has not as yet had time to create.

In no country can European capital find a more fertile or advantageous field for its operations: a fact already well known in England; and one the authors of this book have wished to emphasise for the greater benefit of French capital. In this they serve the interests of France and, still more particularly, those of the Argentine Republic; and in the name of my own compatriots, as well as for myself, I take this opportunity of expressing my sincere gratitude.