In this connection I will add that the Government continues to assert its
belief that the insurrection will soon be suppressed and on its own
terms, unconditional surrender. The revolutionary leaders say they will
not disband their forces until the Government meets them on a peace
basis which at least will stipulate for full pardon and satisfactory
assurances of a free ballot and an honest count.
[Inclosure.]
Mr. Hopley to
Mr. Finch.
American Consular Service,
Montevideo, March 12,
1904.
Sir: I have the honor to report in answer
to your request for information as to the effect of the present
revolution on this country in my consular jurisdiction, that it has
been of serious damage.
The calling out of the national guard in January last took from
business occupation a large number of the young and active men of
the country. The second call in February, enlisting the departmental
guard, although not yet enforced, warns a large body of business men
that they may be called upon to bear arms at any time. The national
guard, already in the field, has taken men from the stores and
workshops, leaving nearly every place of business crippled. Added to
this, the Government has had need of horses, and these hare been
taken, leaving all carriers in a crippled condition for the
transaction of their business.
The result has been that there is no industry or business that has
not been more or less crippled by the continuance of the
revolution.
In the rural districts business is more at a standstill than in this
city, as both armies have seized all available horses and the
products of the country can not be brought from the estancias to the
railroads; men have fled from their farms to avoid going into the
army of the Government or have joined the revolutionists or been
enlisted in the Government army.
The revolution occurring when it did left much of the crops
unharvested, and at least one half of the present harvest is lost.
Ships arriving here the past month with lumber expecting to return
with hides are forced to leave empty for the States or for other
ports.
The impressment system into the army has had the effect that hundreds
of the best young men have sought safety in other countries, and as
a result the best of these will secure desirable positions and never
return.
The cost of the war is probably one and a half millions per month,
but the loss in products, in necessary and unnecessary destruction
of property, far exceeds this, and the loss to the future of this
country in again showing its unsettled condition, and the active
young business men who have left it never to return is
incalculable.
The banks are surfeited with money. Many persons have drawn out sums
for safety, but many more have deposited, and very, very few risks
will a banker regard as safe. As a result money is idle. Of three of
the largest banks interviewed all said cash on hand exceeded by 50
per cent what it should be and what it was at this time last
year.
Much of the business done here is done by foreigners. All these
complain
[Page 851]
of the serious
effect of the war on business and are anxious for any termination of
the struggle, and anxious for a peaceful government of this country,
whether by either of the local parties or by any foreign power. The
native population are equally anxious for a speedy termination of
the trouble, and rather than have the existing condition of affairs
continue would probably not object to Argentina or Brazil insisting
on some permanent settlement, the majority of the Colorados
(Government) being friendly to Brazil, the majority of the Blancos
(revolutionists) being friendly to Argentina.
During the ten weeks the trouble has lasted the Government has, in my
opinion, been very careful in protecting the interests of the
subjects of foreign countries. But in a business way they suffer, as
does everyone else.
I am, etc.,
