order by cable knows that it will be delivered here in twenty to thirty days. So he is not required to keep on hand such heavy stocks, and can take advantage of the fluctuations of prices in Europe. 2. The advantage which steam communication gives to Europe in its trade with the River Plate is greatly enhanced by the fact that the mercantile firms doing business here are, as a general thing, branches of established houses in the business centers of the Old World, or are the immediate agents, if indeed not part owners, of manufacturing establishments in England and France, thus giving the parties here a personal and double interest in the orders which go forward. They are thus enabled to obtain their goods at times and in quantities to suit the trade, accompanied by the most favorable terms and credits. I have, however, in former reports referred to this fact, and it is not necessary to enlarge upon it. 3. Another and most decided advantage which Europe enjoys is its banking facilities with the River Plate. The value of these, in the conduct of general trade, can hardly be overestimated. The labor of exchange is a most important ingredient in the business of reciprocal commerce, and certainly contributes as much to its success as rapid transportation. The receiving and remitting of money and the settling of balances are thus accomplished directly, cheaply, and without trouble. The trade of Great Britain with the Argentine Republic is especially favored in this respect, possessing banking facilities here in the River Plate of the very first class. The "London and River Plate Bank (limited)" is an institution which has been in operation here for the last twenty years, with branches in Montevideo, Rosario, and Córdoba. It has an authorized capital of $10,000,000, of which $7,500,000 is paid up, with a reserve fund of $775,000. The establishment does a general banking business of all kinds, except the issuing of circulating notes, and the branch in Montevideo even has this privilege. It does a very large and successful business. I have before me the nineteenth annual report of the directors, being for the year just closed, from which it appears that after making allowances for bad debts, adding $100,000 to the reserve fund, and paying $43,000 for the purchase of banking-houses abroad, they have declared a dividend of 4 per cent and a bonus of 2 per cent for the last half year, being, with the interim dividend paid last July, 10 per cent for the year, leaving a balance of $40,000 to be carried to the account of profit and loss for the current year. So great has been the success of this institution that another English banking-house (the "English Bink of the River Plate, limited ") has just been established here, with an authorized capital of $7,500,000, of which $5,000,000 is paid up. Doing business with the same facilities and on the same principles, it promises to be equally successful. The Italians also have a flourishing bank here (the "Bank of Italy and the River Plate"). It has a paid-up capital of $1,500,000 and a reserve fund of $160,000. Its business has been remarkably successful, and it is now building a magnificent bankinghouse in this city. I have not before me its last annual report, but the dividend, after placing a large amount to the account of the reserve fund, was 10 per cent for the year. It enjoys a large share of tho public confidence. Besides these foreign banks, I would mention the Bank of the Province of Bucnos Ayres, which belongs to and is the fiscal agent of the province, with branches in Dolores, San Nicolas, Chivilcoy, Mercedes, Lobos, Salto, Azul, Baradero, Chascamus, Tandil, Vienti-cinco de Mayo, San Pedro, Pergamino, Las Flores, and several other points in the province of Buenos Ayres. It has special privileges, issues bank-notes which furnish the entire circulating medium of the province and almost of the entire republic, has close and intimate connections with all the money-centers of Europe, and does a large pro portion of the exchange business of the country, domestic as well as foreign. The only other public bank in Buenos Ayres is the "National Bank of the Argentine Republic." It has its charter from the national Congress, and, as it has branches at the capitals of the several provinces, it is, to a large extent, the fiscal agent of the General Government. With the late money crisis in this country it was obliged to suspend specie payments, but it has since called in and redeemed all its circulation in this province. Its notes, however, still pass current in the other provinces, and furnishi the circulating medium for all parts of the republic outside of Buenos Ayres. It has now fully regained the confidence of the public, and its stock sells on the Bolsa at a large per cent premium. All the establishments I have mentioned do banking in all its branches. They discount bills, make loans on negotiable securities, attend to collections, receive deposits either for fixed periods or at sight, the interest on which is regulated by the market value of money; issue bills of credit to parties traveling abroad or for the purpose of purchasing goods, transfer funds, and sell exchange on the principal cities of Europe. I may state here, as a matter of some interest, that the rates at present allowed by the banks of this city are as follows: On deposits in accountcurrent, 3 per cent; on deposits subject to thirty days' notice of withdrawal, 34 per cent; on deposits for ninety days fixed, 4 per cent; and they charge 9 per cent on debit balances in account; discounts are conventional, according to circumstances, but generally about 7 per cent. It will be seen from the foregoing that the nations in Europe, in competing for the trade of the River Plate, have at least three very decided advantages over the United States, to wit, regular steam communication, intimate business relations, and extensive banking facilities. These are the commercial levers of the world, and place them in a position to keep the control of the commerce of the Argentine Republic, only permitting us to supply such articles as they can not furnish, such as lumber, raw tobacco, kerosene, alcohol, sugar, and a few other articles of prime necessity, and a small but uncertain trade in furniture, hardware, cottons, drugs, paints, agricultural implements, groceries, ship-chandlery, stationery, etc., mostly received on special orders. In considering the methods by which the commerce of the United States may be promoted, I have already in frequent reports discussed the importance of direct steam navigation with the River Plate, considering it as an essential prerequisite to the general introduction here of American manufactures, and insisting that so long as our intercourse with the Argentine Republic continues to be through the slow, uncertain, and irregular medium of sailing-vessels, we can not expect any great or decided improvement in our trade. I have also argued the necessity of establishing more intimate relations between our manufacturers and the merchants of the Argentine Republic, explaining the impossibility of securing a permanent trade in any given commodity by means of commercial travelers, who sell by sample and have no interest in the business of those who employ them beyond the per cent they may receive on orders secured during a flying visit here; and I have suggested the wiser plan of establishing branch houses here or arranging terms with reliable houses already established; or, in lieu of this, for the manufacturers to open agencies here, where their goods will always be found on sale in stock. AN AMERICAN BANK WANTED IN BUENOS AYRES.I have not heretofore referred to the utter absence of direct banking facilities between our own and this country. There is no doubt that this is an explanation, at least in part, of the want of that activity which characterizes a healthy and satisfactory condition of trade. I believe that the establishment of an American bank here would be the means of working a change in this respect, and especially if it was accompanied by a direct line of steamships trading with the United States. It may be a question, however, whether such an institution would at once return very large dividends. There is no doubt that, if parties could afford to wait the gradual process of changing the course of trade, or rather exchange, it would ultimately not only command success, but enjoy a long life of prosperity. The great trouble in the way is the fact that all the banking business with the United States is now transacted through English banks. New York, as a financial center, is hardly known here. Credits sent out for the purchase of River Plate hides or wool, are nearly all given on London. There is scarcely a hide or a pound of wool shipped from here to the United States the invoice of which, except in the case of special purchases, is not made out to Baring Brothers & Co., or to Brown Brothers & Co., or to some other English banking-house. And all remittances on account of sales of merchandise received from the United States are made by bills on London, or by express order, put into hides or other produce, the New York or Boston account taking the chances of a profit or loss in the shipment. A bill drawn here and payable in New York for any large amount could at present with difficulty find a purchaser here, while masters of vessels in remitting home their freight-money generally take drafts on London. Recently, however, the American houses of A. C. Bean & Co. and G. B. Perry, drawing on Boston, and S. B. Hale & Co. and C. S. Bowers & Co., drawing on New York, have been doing some exchange business, more for accommodation than anything else. The establishment of an American bank here, with strong and well-known connections at home, would gradually make a change in the present method of conducting the American trade, and ultimately be the medium through which bills for merchandise coming from the United States, as well as bills paying for produce purchased here, would pass. Bills on the United States direct would take the place of bills on London. The advantage of a central exchange office of this kind for the American trade would soon manifest itself. Sellers would know where to sell, and buyers would know where to buy; and buyers and sellers would thus be brought together. It may be argued, that the present limited trade of the United States with the Argentine Republie would hardly justify such an institution; but, if we are to have steam communication between New York and Buenos Ayres, the commerce between the two countries will necessarily increase and become more certain. I need not state that such a modification of our tariff as would make more possible the shipment of Argentine wools other than carpet-wools-to the United States, would give an increased stimulus to our trade with this country, and make a demand for closer banking facilities between the two; but I feel that any suggestion of this kind would be touching upon a subject which must be considered and settled, not from an Argentine but from an American point of view, it being of paramount importance that our own home interests should be taken into account, rather than those which may affect our trade with any particular country. I may state generally that the business prospects of the Argentine Republic are in most respects more promising than they have been for years. The Argentine national Government, during the year which has just closed, has greatly strengthened its financial position, and its credit in Europe was never better than it is at present-its bonds advancing from a discount of 10 to 15 per cent to a premium on the London Exchange; while the endeavors of the Government to increase and develop the resources of the country by means of railway extensions, the selling of its public lands, the opening of new ports, the extending of its agricultural industries, the encourage ment of immigration, and generally the cultivation of the arts of peace, are more earnest, persistent, and hopeful than ever before. All these things help banking operations by increasing trade and creating comIn the midst of this present and prospective River Plate prosperity, it would be gratifying to see a bank here, especially representing American interests, and offering increased facilities for effecting exchanges between the two countries. merce. No clearer delineation of the general condition of affairs in the Argentine Republic at the commencement of 1882 could be presented than that embodied in the following extract from President Rocas's message to Congress in May of that year: MESSES. SENATORS AND DEPUTIES: I have now for the second time the honor of presiding at the opening of your annual sessions. The republic has already begun to advance surely and steadily, without any uncertainty as to the morrow. It now knows what it requires and whither it is going; and it has made marked progress, moral and material, during the year just ended. We have been gradually acquiring self-confidence and self-security, and are now beginning to enjoy the confidence of other peoples and to attract the attention of capitalists, scientists, industrials, and statesmen, and of those nations of the European Continent where a plethora of population is felt. Peace within our borders has not been disturbed for a single instant. The small cloud which lowered in Corrientes disappeared of itself, and the conflict subsided within the sphere of the constitutional powers of that province. During the general elections for new deputies, and the election for two new senators in the capital, there was ardent struggling in a few provinces; but no violent demonstration of party spirit or breach of the laws occurred in any. flere we have a proof of progressive improvement in our mode of exercising our political rights. I have been most solicitous in the preservation of peace and tranquillity, in the belief that such was the faithful interpretation of our dearest desires and the most vital necessities of our country. While observing a policy at once firm, frank, liberal, and circumspect, the Executive has devoted his whole attention to perfecting the administration. Much has been done in this direction; much of routine has been eradicated; many costly errors have been corrected, and considerable sums saved the national Treasury. But a great deal still remains to be accomplished, for, to place the administration on a firm footing of order and economy is not the work of a single presidential period, but of long years of peace. The current of immigration has continued weak, as compared with the inducements and advantages offered by our country. During the past year 32,817 immigrants have landed on our shores.* The nuinber, without doubt, is not flattering; but we are to bear in mind that this increase of population was altogether spontaneous, and came without either effort or sacrifice on the part of the nation. We are also to consider that these immigrants are for the most part farmers who came provided with means to settle and get to work without any assistance from the public fund, and that, consequently, they have not remained in the cities as did others before them. Although the tide of emigration from Europe is daily growing, we shall see but a slow increase, or, perhaps, rather a diminution in the number of people seeking our shores, unless we hasten to make sacrifices by cheapening the passage, placing lands within the reach of all on easy terms, and aiding the settlers for the first few months after their arrival. Besides the United States, where European immigration has reached surprising proportions, other countries of America open their doors to these fecund and vivifying currents. Mexico, with her dazzling traditions, lightens their expenses by sea and land, and makes them generous grants. Brazil continues to follow the same plan, and as soon as the Isthmus of Panama shall have been opened up, new lands, vast and fertile, and at half the distance of ours, will be offered to the immigrant. These facts point to the necessity for us of fostering by all available means that element of power and wealth. It is with genuine satisfaction that I am enabled here to repeat the words of my last year's message. The republic continues in peace and friendship with all the foreign powers, and cultivates its relations therewith in accordance with the principles of reciprocal kindness. In regard to our foreign policy, the rectitude of our conduct becomes more and more marked, and the name of the republic is gaining in consideration in the eyes of other nations. The boundary question with Chili, so long a subject of anxiety in the public mind, has been amicably settled, as you know, and our relations with that country are now completely harmonious. But on calling to your mind an event of such paramount importance for our country, I must not omit to remind you of the names of the distinguished ministers plenipotentiary of the United States in Chili and the Argentine Republic. As you are aware, the question was at the worst when these gentlemen interposed their influence for the opening up of new channels of negotiation, and continued using it until the final solution. It is painful to me to have to announce that the question of the Pacific, in which three friendly nations are involved, still presents a character of hostility, and is enveloped in so much uncertainty as to render it impossible to foresee the issue. In the mean time, the voice and interests of America call for peace as a supreme necessity for the common progress and prosperity. Bloodshed must not continue forever. Humanity and civilization cry aloud for the mitigation of the evils of warfare, and more particularly in the case of peoples between whom no real grounds for antagonism exist. The Argentine Government, animated by a spirit of friendship toward the contending nations, had taken steps to offer its mediation conjointly with the Government of Brazil and of the United States, should these accept the proposal, with the aim of a solution of the conflict on equitable and fitting terms. The general tenor of our * See p. 23. communication on the subject met the approval of the Brazilian Government. Just then, however, the United States interposed, and it was deemed prudent on our part to suspend further action in order not to interrupt the course of the negotiations set on foot. The Argentine Government, desirous of entering into closer relations with Colombia and Venezuela, sent a minister resident to their respective governments, both of whom received him with marks of true sympathy and friendship toward our country. We have received an invitation from the United States to the Congress which is to assemble at Washington in November of the present year, composed of two representatives from each of the nations of America, and in which will be discussed questions of the greatest moment to all those peoples. The Continental Exhibition, due to the initiative of the Industrial Club, and which you aided with a subsidy, was solemnly inaugurated on March 15th, and I believe I may say, with genuine satisfaction, that its success has exceeded the most sanguine hopes of all concerned. The opinion of natives and foreigners has done ample justice to the indefatigable efforts of all those persons who contributed to the realization of that important competitive display; and our country may look with honest pride on the rapid improvement achieved in all branches of industry. Every country of America and many of those of Europe have been represented here in the department of machinery, and it is only to be regretted that the brief space of time allotted for the organization of the exposition did not permit of their bringing a larger number of exhibits. Nevertheless, we owe a debt of gratitude to those who so willingly, and spite of every difficulty, came forward on our invitation. Thanks to the uninterrupted development of the country's wealth, legitimate confidence in the public tranquillity, and the faithful collection of imposts, the national income goes on progressively increasing. The revenue for 1881 was upward of twenty-three and one-half millions of hard dollars; and the receipts for the first quarter of the present year bespeak an approximation to twenty-six millions for 1882. Our foreign trade has increased 15 per cent as compared with that for 1880, the imports having been of the value of $54,174,204, and the exports $56,896,194. The trade in transitu was of the value of $5,360,609. Thus our foreign trade for 1881 was of the aggregate value of $116,431,007, or $14,245,169 in excess of that for 1880. Eleven thousand six hundred and ninety vessels entered at our ports gave place to a movement of 2,579,361 tons of merchandise between exports and imports; and the traffic shows an increase of 336,779 tons as compared with that for 1880. In the present year our commerce has begun under still more favorable auspices, the dutiable exports for the first quarter having been of the value of $22,355,091, and the dutiable imports of the value of $13,243,965. Hence, the foreign trade for the period first named has been of the aggregate value of $35,599,056, exclusive of transit trade and commodity free of duty. For the continuance and permanence of such a flattering state of things, all that is necessary is a well-organized administration governed by prudent laws. I can not but express regret that the budget for the present year has been approved with a notable deficit as compared with the estimated amount of the revenue. For this reason, all my endeavors have tended to reduce the expenditures, without prejudice to the public service, in order that they may not be in excess of the income at the end of the fiscal year. The foreign branch of the national debt increased by $25,000,000 in 1881, owing to the loan negotiated for the extension of the government railways, and the two provincial loans of Buenos Ayres passed to the debit of the nation in virtue of the Ley de la Capital. Yet the total national debt on the 31st of last December only reached the sum of $79,401,141, payments on that debt having been made in 1881 to the amount of $3,211,449. The regularity with which the service of all our public debts has been attended to, as well as the punctual payment of the relatively high rate of interest which they bear, has kept up the most of our bonds to about par, while some of them have been and are still quoted at a premium. This flattering state of things, besides aiding us to secure the conversion of our public debt into another at a lower rate of interest and with a smaller sinking fund, will pave the way to a reduction, and ultimately to the complete abolition (our constant aim) of export duties. In my previous message I remarked that "every effort on the part of the Honorable Congress to free the country of a forced currency would be amply repaid." Thanks to the law which you promulgated, to the decision of the Executive to remove the difficulty, to the confidence in the public peace, to the rapid development of our commercial interests now to be observed on an extensive scale throughout the country, and to the prudent measures taken by the government of Buenos Ayres, the paper of the Provincial Bank of Buenos Ayres has been at par since the 1st of December last. Thanks to the same causes, new private banks have been established with foreign capital, while those already existing have materially improved in vitality and credit. The creation of a national bank would not be in contradiction either to the antecedents of our country, the letter of the Constitution, or the experience which teaches us that the current of private banking institutions is as yet too feeble to carry the facilities of capital and credit to all parts of the republic. In regard to the question of public instruction, which has been one of our chief preoccupations, have to mention an event of importance for the future of education. A Teachers' Congress has been commenced, and is now approaching the termination of its session. To the call of the Argentine Republic prominent educationists, both foreign and native, responded cordially. Distinguished men of letters, representing the United States, Brazil, Uruguay, Paraguay, Bolivia, and the Central American republics, take their seats in the Congress as well as the most notable of our own professors. Whatever the nature of the solutions arrived at by that assembly, in regard to rules, principles, and general systems of education, the real and immediate result will be that of having brought the South American peoples together for the most noble of purposes-the education of the people, and of elevating and dignifying the men who devote themselves to the apostolate of teaching. In the belief that I have drawn a faithful and accurate sketch of the situation of the country, and the administrative movement in the year just expired, and invoking the Divine protection for your deliberations, I declare the legislative period of 1882 to be JULIO A. ROCA. open. BUENOS AYREз, May 12, 1882. The ARKANSAS. STATE GOVERNMENT. State officers during the year were as follows: Governor, Thomas J. Churchill (Democrat); Secretary of State, Jacob Frolich; Treasurer, William E. Woodruff; Auditor, John Craw ford; Attorney-General, C. B. Moore; Superintendent of Public Instruction, J. L. Denton; Land Commissioner, D. W. Lear. JudiciaryE. H. English, Chief-Justice; W. M. Harrison and John B. Eakin, Associate Justices. AUDITOR'S ACCOUNTS. In March, 1881, charges having been made that Governor Churchill was in default in his accounts as State Treasurer, which office he had held from November 13, 1874, to January 12, 1881, the State Senate appointed a committee of investi A deficit was also shown on the part of the Auditor. Governor Churchill referred the report to the Attorney-General in a letter dated May 27th, in which he said, among other things: Under all the circumstances surrounding this matter, I have deemed it my duty to refer this report to you, with the request that you look into the same and take such course in regard thereto as your official duty may require. As I am personally interested in so much of the report as relates to the Treasurer's books, I take occasion to say that, while leaving to the proper tribunals to determine the committee's authority in the premises, I do, nevertheless, most solemnly protest against its mode of procedure, and allege my full confidence that when a legal investigation is had into the affairs of the Treasurer's office during my entire term of securities and myself were responsible have been fully service, it will appear that all moneys for which my accounted for according to law. A brief experience before the committee convinced my attorneys that it was due to myself and securities that I should let the committee take its own course, and await a lawful and proper investigation of my accounts as Treasurer. RAILROAD AID BONDS.-In March a bill was filed in the United States Circuit Court for the Eastern District of Arkansas, in the suit of William II. Tompkins (of New York) against the Little Rock and Fort Smith Railroad Company, which raises the question of the liability of the railroad companies for the "railroad aid bonds" issued to them by the State. The complaint may be summarized as follows: 1. That the bonds were issued by the State with the distinct understanding that the roads were to pay them. 2. That, notwithstanding the road has changed its name, the liability still exists. 3. That, although the Supreme Court of the State of Arkansas has declared the act under which the bonds were issued unconstitutional, yet the roads received the bonds, sold, indorsed and received the money for them— they became commercial paper, and therefore the roads are responsible for their payment. The railroad company entered a general de murrer to the bill, alleging as grounds, among others, that the present owners of the road are not liable for the payment of the State aid bonds, because they are purchasers without notice; and that the act of 1868 is void, under which the bonds were issued. STATISTICS.-The mileage of completed railroads in the State at the close of the year was stated as follows: Gauge, four feet eight and a half inches-standard. St. Louis, Iron Mountain, and Southern Railroad... Kansas City, Springfield, and Memphis Railroad. Total..... Miles. 46 170 163 135 140 100 40 48 1,2624 More than one fourth of this mileage is owned by the Gould syndicate. It is estimated that between three and four hundred miles additional will be completed in 1883. The Iron Mountain road enters the State near its northeast corner and passes out at the southwest. From this line the following branches have been projected: the White River Branch, starting two miles north of Newport, and running northwest through the White River Valley; the Memphis Branch, from Newport through Jackson, Cross, and Crittenden Counties; the Crowley Ridge Branch, to be extended south from Forest City, its present terminus, to Alexandria, La. ; the Arkansas Valley Branch, one hundred and sixty miles long, from Beebe, White County, west to Fort Smith, crossing the Little Rock and Fort Smith road at Conway, Faulkner County; the Louisiana Branch, from Gurdon, Clark County, southeasterly, now in operation to Camden, the principal town of Southeastern Arkansas; another branch farther to the southwest, from Hope to Magnolia, Columbia County, thirtyfive miles, to be extended into Louisiana. The following table gives the population of the State by counties and race, according to the census of 1880: |