The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1890-12-20

an ships bringing Immigrants. an,
every effort is made by the Govern
heat to Increase the wealth aud popu
latlon. As a result the number of i'm
migrants arriving at BnenOs Ayre
has run up from 81. zoo in 1882 to 600,
900 in 1888.
In 1874 there were $4,000 acres un
der cultivation. la 1869 the boon
commenced, and in 1884 there wer,
4,soO,OOO acres under cultivation. Tn,
wheat area for 1888 was estimated a
five million acres.
These facts are sufficient TO show
the enormous resources of this Soutl
American republic and its wonderful
promise under wholesome develop
ment. But just at this point of almost
unprecedented prosperity and rapid
advancement of everything that tendi
TO make nation great aud powerful
poison, exactly similar to that which
the Farmers Alliance of our owl
country is attempting to introduce
into our financial system, began 1t.
work with the Argentine Republic
Upon the theory that if the Govern.
ment would step IN and assist private
enterprises Of every sort, and lend ils
name and its financial backing to every
species os enterprise, both private aud
public prosperity would rapidly in.
crease, a policy almost exactly similar
to that now urged here by the Farm
ers' Alliance, was adopted by the
Argentine Republic.
On the l4lh of September, 1886,
when the republic was in the full tide
OF prosperity, law was passed Great
ing great national mortgage bank,
whose special functions were to make
loans to individuals upon real estate
security. This bank was authorized
to operate in all the provinces and ter
ritories of the republic. II did not
loan money directly on mortgages,
but II did worse. II issued transfer
able mortgage bonds called cedulas
on the execution Of mortgages in its
favor. These cedulas could be put
upon the market aud sold for what
they would fetch by the holders, and
the nation guaranteed the interest.
They were made payable to bearer,
and the annual rate OF interest fixed
by Board OF Control at rate not to
exceed eight per cent. The bank is
managed by eight Directors and a
Chairman, appointed by the Presi-
dent and Its branches in the different
provinces and territories by an Ad-
illustrative Council. The minimum
loan was fixed at $1,000 to any indi-
yidual aud maximum at $250,000 to
any one person. The amount OF
money loaned on real estate was fixed
at half the value Of the property mort
gagged. The central bank had author
ity to issue cedulas upon property
situated not only In the capital, but in
any of the provinces or territories of
the republic. The operations of the
provincial banks were confined TO
loans within their respective territory.
Thus 1t will be seen that the -four.
ishing republic adopted policy which
is now proposed by our Farmers Al
Alliance. For the Argentine Republic
went much further than TO issue paper
payable to bearer based upon the
lands of the country. II also organiz-
cd a National pawn office, in which
personal property of every description
could be deposited and loans made
upon 1t by its officers, who consisted
of a Chairman aud Board OF Directors
appointed by the President of the Re-
public. The establishment operates by
public money advanced by the National
bank. Besides this central National
pawn office others were also establish
ed by law IN the several provinces and
in all their principal towns aud cities.
In two years tho National Mortgage
Bank had put In circulation nearly
Sl05,0O0,0O0 of cedulas, the interest
upon which was guaranteed by the
Government. Before the expiration
of another year this sum had increased
to $2 100000 and on the LIST ofAugust,
1889, or three years after the passage
of the South American Farmers Al
lance Bill, the National Mortgage
Bank and the Provincial Mortgage
banks had issued S400000,000 In ced-
ulas. the average rate of interest guar
autecd by the Government being
fraction less than eight per cent. The
rapid increase of these ceduas in cir
culation Is shown by the following
figures: The total in 1886 was $ll0,-
100000, in 1887 $2l00O0,000, aud at
the close of 1889 they had reached
$464, 100000. Since the last report
the Buenos Ayres National Mortgage
Bank has thrown another large series
of cedulas upon the market.
In three years under Farmers AL
lance policy the republic found itself
on the average of financial ruin. In
August of last year, within month
of three years after the chartering of
the National Mortgage Bank, U. 5.
Consul Baker wrote as follows to the
State Department:
"Of course, with The initiation of
deprecated currency there has been
corresponding initiation of prices. Ey-
erything IN the market has gone up TO
abnormal figures. The means ofliving
have more than doubled The price of
rents III this city has trebled. Landed
property in or near the ccnters ofpop-
ulation has quadrupled in price. The
people are off their head IN all sorts
of speculations-some of them of the
most visionary character. Joint stock
companies, with millions of subscribed
capital, for almost every conceivable
object, are the order of the day.
Everybody that eau command Credits
borrowing from the banks or mort
gaglng bis property for ccdulas, or
buying on time. Everybody is rid
ing the wave of imitation. Unless,
however, more care and a greater
amount OF prudence are displayed, it
is greatly to be feared that fatal
under tow will yet submcrge the great
majority of those who are Fastening
to get Itch. do not say that
commercial or business crisis Is al
hand. bui 1t seems hardly possible that
The present exaggerated condition
can be long sustained. The great
question agitaIing the Argentine
tiovernnent is TO discover What
course had better be pursued In order
TO avert a catastrophe. Certainly a