The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-07-10
rnE ARGKNrINE LESSON.


Latest dispatches from Buenos Ayres in
dictate condition of affairs in the Argen-
tine Republic which may be studied with
profit by Senator Stanford and others who
are advocating . system of government
loans on farm lands and farm products.
On Monday last the premium on gold at
Buenos Ayres jumped 20 per cent during
business hours. the rate starting at IT'S and
closing At 1875. On the LIST day of this
month 1t stood at LAT. This means wide
spread panic. with ruin and devastation in
its track.
The causes of this are not hard to find.
For several years the Argentine Republic
has been booming on the Stanford and
Kansas Farmers Alliance principle. Not
content with grand scheme of railroad
construction, which within is years has
amounted to over 5000 miles. much of it
in the face of great engineering difficulties
and involving enormous cost, by which an
amazing and not an unstable prosperity
was stimulated. the government must
needs attempt an artificial and speculative
system of promoting immigration and
not only we're lands sold at nominal prices.
largely on long credit. but farms were in
certain districts and on certain conditions
the purpose of stimulating cultivation and
production. the device known as the
.cedula" was concocted.
The 'cedula" is the Stanford scheme
translated into Spanish, or vice versa.
The ''cednla" is mortgage bond author
lied by the government issued by state or
local banks, secured by mortgages on i'm
proved or unimproved lands at the rate of
fifty per cent. of their nominal value. the in
terest on these ''cedulas" being guaranteed
by the government. To use the pet phrase
of the senior California Senator, one-half
OF the assumed value of an immense num-
Der of so-called farms was ''energ:zed" to
marvellous extent Observation-Disclosures
and newcomers alike-fairly wailowed in
money. But a Sampson was created whose
energy" was sufficient to pull down the
pillars OF the temple, and he has proceeded
to pull them down. The 'cedula" has
knocked the financial bottom cut of the
republic and has worse than undone all
that legitimate enterprise had accomplished.
Ii has left the commerce and the produc-
tive industries OF the confederation a prey
for sharks and hsrpies and the blood-suck-
ing vampires Of commerce.
Up 10 the time OF adopting this wildly
adventurous device Argentine progress had
been the marvel of the age. In 1874 the
last revolution in that country was efFee.
tually suppressed AT that time its com.
merce was insignificant Within twelve
years the exports amount to more than
$la5ooo,o0o aud the imports to fully $50. +.
ooo.ooo With one-sixteenlh of the popula.
ton of the United States. about equal tn
the state of Ohio. and a territory abou,
equal to all of this country east of the Mis-
sisSipps, the foreign trade was about one.
sixth ss great as that Of the United States
Importing all of It's fiosr from this country
IN 1874. slx years thereafter il exported 81 =
80 tons oi wheat and ISL .s4s tons of corn.
But IN lsse the crazy notion of the
'eedaia" took possession of the financial
head of the government, one of those
erratlc creatures who does not know how
to 'ies well enough alone. !" and within the
eight following years no les. than sai5. ooo.-
600 has been loaned on this class OF secnri-
ties or course interest has defaulted, the
bonds are worthless. the assumed value of
The lands extinguished. and worst of all
The substantial results OF stable poliey
viii be destroyed or largely deprecated by
the crash.
Al OF which strongly inipresses the wis
soa o. keeping On solid ground and not