Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1890-12-12

when tho republic was in the full
tile OF prosperity, II law was passed
creating II 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 pro.
vmces and territories of the repub
lie. It did not loan money directly
ON mortgages, but it did worse. 1t
issued transferable mortgage bonds
called cedulas on the execution Of
mortgages in it's favor. These
cedulas could he put upon the mar
ket aud sold for what they would
fetch BY the holders, and the nation
guaranteed tho interest.
1t also organized u national pawn
office, in which personal property
Of every description could he dc.
posted and loans made upon it by
officers appointed by tho President
OF tho Republic. The establish.
ment operates by public money I'D
vanced by tho National Bank. Be.
sidos this central national pawn
Office others were also established
by law in tho several provinces and
in all their principal towns and
cities.
III two years tho National Mort.
gage Bank had put in circulation
nearly S1O5,OOO, 900 of cedulas, the
interest upon which was gunran
tecd by the government. Before
the expiration of another year this
sum had been increased to $2IO,.
100000, and OH tho 1st Of August,
1889, or three years after the pass
age of the South American Farm.
ers' Alliance bill, the National
Mortgage Bank and the provincial
mortgage banks had issued $iO0,.
100000 in cedulus. tho average rate
of interest guaranteed by tho gov.
ernment being u fraction less than
8 per ceIIt..
TIIEspL ArsEIGpalEs.
Tnilga Napt IfsoIns bad to worse,
and at slast came tls catastrophe
that could no5s Ayar&dg
The failure of the scat firm of
Barring Bros. completes this history.
The theories of tho Farmers' ALI
nnco as practically applied by tho
Argentine Republic wrecked that
great financial intitution, and but
for the prompt Assistance of the
greatest financial agencies in the
world the fnincial prosperity of
the civilized World would have re
ceived shoEk from which ityessaa.lld!l
not have recovered in years.
The controlling causeof the Bar.
ings' downfall was their guarantee
Of Argentine Securities. The col.
lapse SO long expected, and which
was inevitable from the govern
ment guarantee of it's immense
loans to citizens upon values of
every kind. inflated, fictitious, and
otherwise, fell on the house of the
Barings, and wrecked it.
The latest information from Lon
don in regard to this tremendous
failure Of the Earrings shows its OK.
tent, and the influences which its
guarantee on the lonns Of tho Ar
gentine Republic had upon its for
tune. 1t now seems that in addi.
tion to the S75, ZOO, 900 contributed
from the influential sources already
mentioned, the Rotllschilds have
placed S2O,0OO,O0O to be used as u
guarantee to insure tile interest OIL
the various loans of the Argentine
Republic which the Barring Bros.
hold. The information in this coun.
try among those having knowledge
of the affairs of the Barings is that
while the immediate cause of the
distress Of that honse was tile un-
expected withdrawal OF deposit
of 92,5O8,O00 by the Russian gov
ernment, the real cause of the Grip.
pling of tla house WAS the drain
upon it which has been going on
for some years, arising out of its
efforts to pay the interest upon tho
inflated Argentine Donds.-Phila.
delphia Press.
EUPEPSY.
This lie what You ought to have, In
fact, you must have It, to fully enjoy