Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1890-04-05
DEBTS OF TIE WORLD.

utCub AuothuOtCo GOuouio W AhNSoAt6 NV
the subject OF mortgages says q cores
pondent of the Globe-Democrat. The
returns are in from all parts OF the
world. Portuguese have the penhora.
tn Paraguay there is the bienes raices.
Ecuador INDUCES in hipotecas. In the
Argentine Republic cedulas are as
common as currency. Censo is the
word used in Spain. Ipoteche is
Italian. They all mean mortgage.
The only countries which have no
elaborate system Of borrowing and
lending are those where barbarous
kings aud queens claim to own the
soil. 1t appears that in debt-making
the Argentine Republic beats the
world. Kansas can't hold a candle to
that country. In addition TO the usu-
al facilities for loaning aud borrowing,
the Argentine people have "National
Hypothecary Bank" Congress Great
ed it and the president in his last
! message spoke of it as ian institution
which will greatly multiply the ele-
ments of credit in the republic"
Something from Consul Bakers re-
port on this great national mortgage
bank will be especially Interesting,
for it is not at all certain that Senator
Stanford did not borrow from the Ar
gentine idea his plan for loaning gov
ernment money 10 the farmers OF the
United States at o low rate of interest.
The Argentine bank does not loan
money directly on land. 1t issues
mortgage bonds called cedulas, and
these cedulas are transferable. A
man with q piece of land goes to the
bank and mortgages it for from $1,000
TO $250000. These are the limits of the
mortgages. In return he receives ce-
dulas, which run in denominations,
like big bank notes. from $25 to $1,000.
The cedulas are put on the market and
sold for what they will bring. They
bear not exceeding per cent interest,
and are guaranteed by the govern
ment. Everything a man has, in adj
dition to the land mortgaged, is liable
for the payment of the mortgage to
the bank. The operations of the Ma
tional Mortgage Bank extend to all OF
the provinces. Authority is granted
the governments of the provinces to
run mortgage banks in their respective
territories upon plan similar to the
national bank, and the province OF
Buenos Ayres has one.
The national bank has out $l04 ,515,-
900 in cedulas, and has just been au-
thorized by congress to issue 100000
600 more, which will be in circulation
before the end of 1890.
The Provincial Bank of Bueno:
Ayres has out $2l0,0000O0 in cedulas
or mortgage bonds. That is equal to
one-fifth of the total valuation of all
lands in the province.
This issue of cedulas, or mortgage
bonds, is the favorite plan of borrow.
ing in the republic. Besides the
mortgage banks, there are half doz'
ell big chartered trust companies
which are authorized TO put out cedu'
las.
The mortgages now outstanding in
the Argentine Republic amount to
1899, $4,000. In his last message TO
congress President Celman estimated
the value of all landed property in the
republic at $2,720,922,7S0. This valu-
alton includes city as well as other
real property. 1t is easily figured
from these statements that the mort
cages now amount TO one-seventh OF
the entire valuation of realty.
But the significant feature OF the
Argentine experiment is the popular
effect of credit made easy. The rap
idity with which debt is piling up IN
that republic would bewilder the wild
est financier in the United States. The
outstanding Ceduias of the National
Mortgage Bank have doubled in two
years and those of the Provincial Bank
have doubled in four years.
New banks with special privileges
are being chartered every year.
These banks are supposed to loan
money at half the valuation of the re-
al estate, but the valuations are large
ly fictitious, being established by pre-
tended sales. AS apparent values OF
land increase the amounts that can be
borrowed increase. The credit system
of the Argentine Republic simply
takes for granted the feasibility of a
man lifting himself by his bOotstraps.
Imitation has run riot. Nobody is
complaining in that country about low
prices. Specie payments were sus-
pended three years ago. Instead Of
taking steps to resume the government
nut out more fat Nancy. Gold is now
at a premium of n. 1t costs twice as
much TO live as it did few years ago
Rents are three times what they We're
Land is worth four times what 1t was
Everybody does business on credit
and the government keeps abreast
with the times by steadily increasing
debt. The government has $z20,OOO,'
900 in bonds outstanding-an increase
| from $Sl, 100000 in 1881. The prov
- - ost;ao houn h0u6a mt IN the