Observations on the Present State of the Affairs of the River Plate

A large portion of the revenue, both of Monte Video and of Province of Buenos Ayres, is raised by taxes on the importation of foreign goods, and the rate of duties is not excessive in either case. It is not on this account that any one complains of the Buenos Ayrean Government, but because it confines foreign commerce to the single port of Buenos Ayres, and excludes both foreigners and foreign vessels from the other ports of the Confederation, as strictly as the Chinese formerly excluded them from every port except Canton. This it is able to effect by its command over the entrance to the river Parana, the direct route to Entre Rios, Corrientes, and the other provinces of the Confederation. Whilst the provincial Government of Buenos Ayres thus excludes all foreign vessels from the Parana, and as far as its control extends from the Uruguay, it claims the right to expend the whole of the customs' revenue raised at Buenos Ayres. The upper provinces very naturally consider this unjust, and insist on having either a share of the revenue collected at Buenos Ayres (somewhat on the principle adopted amongst the states of the German Zollverein), or on having a general Congress of all the provinces of the Confederation to decide how the money shall be distributed. This General Rosas and his adherents refuse, and this refusal, coupled with the equally positive refusal of the same parties to allow foreign vessels to ascend the river, is one principal cause of the frequent wars between the states of the Argentine Confederation on the banks of the river and the Government of Buenos Ayres, one of which is now raging between it and Corrientes. In this way the commerce with the interior is continually interrupted. The policy of the Monte Videan Government is in every respect the reverse of this, for it not only throws open the ports of Monte Video, Maldonado, and Colonia, on the River Plate, but those of Soriano and Paysandú, on the Uruguay, the Yaguaron, on the Laguna Merin, and the dry port of Taquarembó on the Brazilian frontier to all the world, and thus gives every part of the republic all the advantages of foreign commerce.

There is a still greater difference, if it is possible, in the policy adopted by the two governments with regard to the transit trade. At Monte Video goods may be landed without the payment of any duty, may be there deposited in the Custom-house stores for any length of time, on the payment of a smaller warehouse rent than is usually paid in Liverpool, and may be sent to any of the independent countries in the interior, or re-shipped to foreign parts, without the payment of a dollar. The Government goes even further than this, for it allows goods in transit to be conveyed through the whole territory of the Republic, with a guia or Custom-house Permit to all parts of the frontier, and to be forwarded into the Argentine provinces of Entre Rios and Corrientes, into the Republic of Paraguay, and into the back provinces of the empire of Brazil, perfectly free from duty. Hence goods are constantly forwarded up the Uruguay, instead of going to Buenos Ayres to pay duty to General Rosas. The natural consequence of this is, that the people of all the adjoining states have a friendly feeling towards Monte Video. Corrientes has several times risen against the connection with General Rosas, in support of Monte Video, and Brazil is prepared, if necessary, to interfere to save it from his grasp. In fact, it is quite evident that nothing but an entire change of policy on the part of Buenos Ayres can prevent a general war against its usurpations. The policy of Rosas with regard to goods in transit to the Independent States of the interior is altogether different from that of Monte Video, for, when landed at Buenos Ayres, they pay the same duties as if they were intended for consumption there, and not a sixpence, or what is less than a sixpence, a Buenos Ayrean paper dollar, is ever returned. When goods are intended for re-exportation by sea, the difference is in appearance less, but much the same in reality, for whilst they can be landed at Monte Video without paying any duty, can remain there as long as the owners like, and can then be re-exported duty free, at Buenos Ayres they cannot be landed without paying the full duties, their owners lose all claim to have any part of those duties returned, if they are not re-exported within six months, and it is only with the greatest difficulty and after waiting many months that they obtain any return at all, even if they are exported within that time.

A similar contrast is also seen in the spirit in which the Governments of Buenos Ayres and Monte Video treat the diplomatic agents of foreign nations. Soon after the death of the Dictator Francia, the English Government determined to send a diplomatic agent to the Republic of Paraguay. This gentleman, Mr. Gordon, first landed at Buenos Ayres, hoping to be allowed to proceed up the Parana to Assumption, the capital, but he soon found that it was no part of General Rosas's policy to allow any such communication. The consequence was, that after remaining at Buenos Ayres for some time combatting the pretences under which permission was refused, he found that there was no hope of his being allowed to proceed to the seat of his mission, through the countries subject to the dominion of General Rosas, and crossed over to Monte Video. There he was received with every attention, and furnished by General Rivera with a guard of honour, under whose escort he travelled to the frontiers of Paraguay. Mr. Gordon's letter of acknowledgement to General Rivera will be found in the Appendix, and it would be difficult to find a stronger illustration of the opposite spirit of the two Governments than is presented by this transaction. Not Francia himself was ever more determined to cut off Paraguay from communication with the rest of the world than is General Rosas, and the key to his conduct is, that he is determined, if possible, to reduce the people of that Republic to subjection to his authority. No longer since than the 15th of January last, a long article appeared in the official Gazette of Buenos Ayres, censuring the Governments of Brazil and Bolivia for recognizing the independence of Paraguay.

In addition to all these advantages arising out of the independence of the Republic of Uruguay, it ought to be mentioned that the Government of Monte Video has preserved an undepreciated silver currency through all its difficulties, whilst the Buenos Ayrean Government has issued such masses of paper without ever redeeming it, that the Buenos Ayrean paper dollar is not worth more than 4-1/4d. at the present time. The other states of the Argentine Confederation positively refuse to take the Buenos Ayrean paper money, but foreign merchants are compelled to take it, or to dispose of their goods by barter, which is seldom possible.

The consequence of the liberal commercial system adopted by Monte Video, aided by the excellence of its situation has been to raise that city, in fourteen years, to the position of one of the first commercial places in America, as will be seen from the following summary of the export and import trade in 1842, the year before the commencement of the siege: —

EXPORTS.

How much this extensive trade has increased since the establishment of the independence of Monte Video, will be seen from the following statement of the increase of British shipping from 1830 to 1842: —

BRITISH SHIPPING.

Up to the 6th of September, 1842, 128 British vessels had arrived at Monte Video during that year.

COMPARISON OF THE COMMERCE OF MONTE VIDEO AND BUENOS AYRES

Number of merchant vessels arrived at the Ports of Monte Video and Buenos Ayres during the half-year ending June 30th, 1842: —

Great as this trade is, there is no reason why its future increase should not be as rapid as its past. There are at present several millions of cattle roving over the boundless pastures watered by the Uruguay, the Rio Negro, the St. Lucia, and the two hundred arroyos or rivulets which flow into them, and with a few years of peace, this number would be doubled, or if it was found more profitable, flocks of sheep might be introduced instead. The repeal of the duty on foreign wool, by the Act of 1844, gives additional encouragement to the raising of this kind of stock, and the reduction in the duty on foreign provisions made by the tariff of 1842, would, if this country was at peace, throw a considerable portion of the provision trade created by that reduction of duty, and at present monopolized by the United States, into Monte Video. Enormous quantities of meat are now wasted, which it might be worth while to prepare for this market, in a way suited for the English taste.

Pastoral countries, such as the territory of Uruguay, New South Wales, Van Dieman's Land, and South Africa, have this great advantage over arable countries that their resources can be developed much more rapidly, with a much smaller amount of labour, and with much less capital. This is one of the causes of the sudden rise of the trade with Australia, and it is also a considerable cause of the rapid development of the prosperity of Monte Video. Its power of producing hides, wool, tallow, and provisions is unlimited, by any thing except the deficient numbers of its population; and whilst on this subject, I may mention that Monte Video is the only one of all the Republics formed out of the ancient possessions of Spain which has been sufficiently well governed to attract to its shores any considerable number of emigrants from Europe. It will be seen from the following table extracted from the books of the Custom House at Monte Video, that not less than 33,607 emigrants arrived in that port between November, 1835, and December, 1842: —

Table made from the books at the Sala de Comercio of the number of passengers who arrived at Monte Video from Nov. 1835 inclusive, to the end of 1842.

Of this large number of emigrants, 13,676, it will be seen, were from the Basque provinces; 696 from France; 3806 from Spain; 6789 from Genoa; 5152 from the Canary Islands; 2247 from Portugal and Brazil, and 1241 from other parts of the world. If, as has been said by one of our greatest writers, there is no worse sign of the condition of a country than the fact of large masses of its subjects leaving it, surely it must be considered an equally strong proof of the goodness of a Government and the resources of a country when great masses of foreign emigrants are pouring into it. In this respect, Monte Video stands pre-eminent above all the States of America, except those founded by the British race, and considering the limited extent of its territory, and the short period of its independent existence, it can scarcely be said to yield to them.

Having thus shown the grounds on which the Government and people of Monte Video are entitled to the sympathies and support of England, I shall now proceed to say a few words on the present disastrous position of the affairs of that Republic.

For the last two years, the city of Monte Video has been besieged by an army composed almost entirely of Buenos Ayrean troops, commanded by General Manuel Oribe, the expatriated President of Uruguay, who claims to be the legal President of the Republic, and whose avowed object is to overturn the present Government, and to seize on supreme power for himself, and blockaded by sea by a Buenos Ayrean squadron, commanded by William Brown, a British subject in the pay of General Rosas. If the army of General Oribe was composed of Monte Videans, England could have nothing to say in this matter, as his success would be merely the substitution of the chief of one native party for another; but this is not the case. Oribe has neither army, fleet, nor treasures of his own, and owes every thing to General Rosas as absolutely as if he was a Buenos Ayrean citizen. To allow him, therefore, to get and to retain possession of Monte Video, would be to establish the authority of Buenos Ayres on the east bank of the river as effectually as on the west, and this I have already shown would be most injurious to the interests of England, of Brazil, and the other adjoining States, as well as to Monte Video itself, and to the upper States of the Argentine confederation.

Whatever might be the wishes of General Oribe, it is evident that he would have no chance of retaining power any longer than he made himself agreeable to General Rosas. In the city he has a considerable number of supporters amongst the shopkeepers and a few amongst the merchants, but in the country, the landed proprietors and gauchos or peasantry are all opposed to him, and are enrolled in the armies of General Rivera, or his lieutenants. When President, he was besieged and deposed by this class, against which the mere townsmen can effect nothing. If he got possession of the city, he would not be able to raise such a native force as would sustain him. He must, therefore, retain the Buenos Ayrean army in his pay, or he could not stir a mile from the walls without being attacked by the army of Rivera. Hence he would continue in a state of dependence on General Rosas for many years, if indeed he ever became entirely independent of him. Thus, it will be seen, that this is not a struggle to decide whether Oribe or Rivera shall be chief of the Republic, but whether the Republic shall remain independent or become subservient to the will of its bitterest enemy.

If the will of General Rosas should thus be allowed to become the law of Monte Video, the prosperity of that country is at an end. A very large revenue would be required for the support of the Buenos Ayrean mercenaries, and it is not at all unlikely that Rosas, who confiscated the property of the whole of the Unitarian or Centralist Party to pay the expense of a former civil war, would insist on the repayment of the whole, or at least of a part of the expenses of the present war, in carrying on which the finances of Buenos Ayres have been brought to the verge of ruin. To raise the money required for these purposes, there are only two ways; the first, the confiscation of the property of Oribe's opponents; the second, a great increase of the taxes on foreign imports. The first of these measures would destroy all the best connections of the English merchants, and ruin all the most respectable men in the Republic, whilst the second would quite as effectually destroy its foreign commerce.

It is by no means certain, however, that even the name of independence would long be left to Monte Video, if General Oribe should succeed. General Rosas would, in all probability, soon grow tired of supplying troops and money to support another man's authority, whilst General Oribe's necessities would compel him to submit to anything which his patron might propose, even if he went the length of proposing the annexation of Monte Video to Buenos Ayres, in humble imitation of the annexation of Texas to the United States. The last letters from Monte Video state, that Oribe has been getting together, at the Buceo, all the members of his former Legislative Assembly, who had followed him to Buenos Ayres or joined him there, and with their aid he will soon form an assembly quite capable of performing any act which it may suit his convenience to have performed. With such materials we shall scarcely fail to have a repetition of the annexation of Texas on the banks of the River Plate, whenever it may suit the plans of General Rosas and the necessities of General Oribe to effect it.