The province •of Buenos Aires had, no doubt, an exemplary government. The soul of it was Bernardino Rivadavia, a mulatto, who, as secretary of the government, com pleted commercial treaties with England and other countries,. and obtained in London, through the Baring Bank, a loan of f1,000,000 at 6 per cent interest, which was totally covered at the fixed rate of 70 per cent. He also in terested some small English capitalists in the enterprise of sending over the first herds of fine cattle.
Rivadavia also founded a bank of discount and for the issue of paper money, which began its operations with an issue of $290,000, the first Argentine currency.
But the half-civilized conditions continued in the rest of the country, though the leaders of emancipation tried to reunite the provinces under national control, naming Rivadavia as President. Here we encounter the origin of the two great political parties in the history of the Argentine Republic, one being the Uni tary, which favored a strong central govern ment, in opposition to the localism of the Fed erals, or State-Rights party.
Rivadavia advanced his epoch, and to him Argentina owes many progressive ideas, among others the governmental ownership of the land and the natural sources of wealth. He carried on great works of public utility, employing the funds obtained from Baring Bank to found schools, universities, a national bank, hospitals and other benevolent institutions. However, he could not triumph over the local rivalries and, discouraged, like San Martin, gave up the gov ernment, which dissolved immediately, having been unable to crush out anarchy, which now broke out more furiously than ever. The dis count bank of the province of Buenos Aires had been changed to a national bank, and its issue of paper money now rose to $2,700,000, yet the payment of the debt to Baring Bank had not even been commenced.
The new Empire of Brazil, heir to the Por tuguese policy in South America, expected to reach the river Plata and to dominate Monte video, the capital of the republic of Uruguay. Buenos Aires, which had inherited at the same time the Spanish secular views, notwithstand in g that it was itself menaced by anarchy, aided the Republic of Uruguay to obtain its independence from Brazil in a war which lasted three years and whose chief purpose was to drive out the Brazilians from the Plata (1828).
The anarchical wars had reduced consider ably the masculine part of the population, which in 1810 numbered half a million, the fourth part of -which were quadroons de scended from half-breeds, mulattoes, and ne groes. A leader unbalanced and fierce, Juan Manuel de Rozas, chief of the federals, now assumed command, and pleased himself with collecting the savage negroes of the popula tion, some 40,000, recently emancipated slaves, nearly all in the province of Buenos Aires, and bringing about the exile of the and industrious elements, who took refuge mostly in the republic of Uruguay and in Chile. The
reckless spirit that during 25 years reigned in all the local military dictatorships had ended in destroying the mining and wine-making in dustries that the Spanish colonies had started in the interior.
The diplomats of Europe, acknowledging the hastened to recognize the self-styled republic. In '1829 England recog nized the independence of the new country and entered into diplomatic relations with the tyrant Rozas. The final recognition of it by Spain in 1842 completed the assurance of the leaders, who, confident of their independence, had now no other idea but to destroy each other.
Of all the old provinces of the ancient vice royalty of Buenos Aires, the only one which prospered through these years was the new republic of Paraguay, in reality an absolute kingdom at the merry of the powerful will of the tyrant dictator Francia. Its independence was recognized by Europe and Brazil but not by Buenos Aires, and this made it impossible for Paraguay to enlarge its outside commerce, as its only outlet to the sea was by way of sailing 850 miles on the rivers Parana and Plata. This obliged them to pass in front of Buenos Aires with all their export and import traffic.
Because Rozas at Buenos Aires could close the natural channels and hinder the traffic of Paraguay with Brazil and Europe, the English and French governments decided in 1845 to establish a blockade of Buenos Aires and open to free navigation the Parana, and thus assure international communication with Paraguay. This blockade lasted two years, and in 1847 the English fleet abandoned the waters of the Plata. During these two years the English of ficials tried to excite the settlers of Buenos Aires to rise against the tyrant Rozas, but they were weak and timid and did not think they could free themselves without the help of the exiled patriots and their allies. Various at tempts had been made to expel Rozas but with out success until, understanding that the prob lem was not local but national, they united with the expatriated from other provinces, and counting on the help of the dictator who ruled the province of Entre Rios (separated from Buenos Aires by the Parana River) and with the aid of the troops sent by the Empire of Brazil, they deposed Rozas and instituted the national government with its capital in the city of Parana, province of Entre Rios. Then, taught by experience, the people resolved to safeguard their rights and privileges for the future. On 25 May 1853, a Constitution closely resembling that of the United States was formed, with some modifications, particularly in regard to civil legislation which is national and not provincial, and the United Provinces of Rio de la Plata took the name of Argen tine Republic (from the Latin A rgentu ns, silver).