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Foreign Capital, Local Interests and Railway Development in Argentina: French Investments in Railways, 1900–1914

Between 1900 and 1914, Argentina experienced the period of greatest growth of its railway network (see Fig. 1). During this time its total length was increased by about 12,000 miles, thus improving on the increase achieved during the railway boom of the 1880s. As before, the new peak was associated with a massive inflow of foreign capital which reached record levels: about 2,000 million gold pesos, against 800 millions during the 1880s. Furthermore, the new railway constructions were mainly made after 1907 and located in the pampas (see Tables 1 and 2). This rapid growth has been explained by many authors mainly as a global consequence of the so-called Mitre law (national law 5315), sanctioned in 1907, which standardised railway legislation in a way that favoured foreign investors, giving rise to an investment boom, especially among the British groups settled in the pampas.1