The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-07-15


to the United States eastof the Mississippi.
We see it on such small scale maps that it
is not easy TO remember that it is more
than half as big as the United States. with
out Alaska; but it has today only the popu-
lation of the United States 100 years ago.
sixteen years ago the Consideration had
its last revolution, and lis prosperity has
since advanced by leaps and bounds.
Down to the end of 1888 it had built 5 10
miles of railroad, and has TODAY over 5000.
Its imports had risen in 1889 to $143. 00o.-
COO. and its exports to $1250J0.Oo0. total
of $oGs,0C0.oo0 With one-sixreenth OF our
population, it was transacting one-sixth as
much foreign trade. Our foreign trade
has grown one-fourth in seventeen
years. and done wonders at that The Ar
gentine foreign trade has trebled in the
same time. Since 1884, when immigrants
began coming, they have risen from Il. 651
in. 1850 to $1,000 IN 1889. We are staggered
~ getting an per cent. increase TO our
population from this source every decade;
the increase in the Argentine Confedera-
ton has been 25 per cent. or /, 129. eco. since
1880, principally Spanish and Italian In
1874 all the flotp used on the Platte came
from this country. In 1880 the Confedera-
361 ,843 tons of Indian corn, although a fail
ure of the wheat crop last winter was seri-
Gus. It's sheep have risen to 103. 100000 in
number from IS 600, 600 in 1873. The num-
Der of its cattle has increased in proportion.
This rapid expansion went on down to
1882 on solid basis. Since then $500 ,000.-
900 has been borrowed in England and
Europe. of which 1896, 600 900 is national or
-s-.~ Irl~$
aggregate $500, Oo0. 900 have been foated in
the Confederation itself. and down to last
August s4i5 100000 had been loaned on
"ceduias." These agreeable aids to specu-
iation, which Senator Stanford wished to
see domesticated in this country,
are mortgage bonds issued by state and
local banks on real estate. improved or I'M
improved. Their interest at per cent. is
guaranteed. so that they pass from hand
to hand like bonds, and they are nomin-
ally one-half the property mortgaged,
which is liable to foreclosure if interest is
not paid to the bank making the loan.
These loans were paid in paper currency,
and banks with capital, in 1888, OF $780,
100000, or two-thirds the capital OF our
national banks, were allowed to issue
currency practically without security
When specie payments were suspended in
1856 it was $191, l60, 496 in amount and has
since been increased by SAC, 100000.
The vast sums borrowed abroad and at
home duplicate themselves at many points.
so that the exact amount of the national
mortgage cannot easily be stated; but the
aggregate wealth of the Argentine Confed-
Grafton was estimated at 81. $50. 000,0O0 in
1880 and at any estimate of the increase
since the foreign Indebtedness of the
country is at least one-third, and its total,
home and foreign debt. one-haif its valua-
ton. For three years the crash has been
expected. With the aid of the two great
banks of Buenos Ayles, National bank
with s43, ga, 400 of capital and the Pro-
vincial bank with $50.OOO,0 900, the gov
eminent has been vainly endeavoring to
put on the brakes and save the national
credit. Within few months $1,000, 600 in
gold has gone to Buenos Ayres in the vain
effort to begin the resumption of specie
payments. and SIS, 000, 600 out of an illegal
issue of $50 000, 900 of paper money has been
burned. The last issue of 'cedulas" in
August. 1889, of $60.0O0,0 900, was solemnly
declared to be the last. One month later
the government proposed to sell in Europe
$1,000 square leagues of land at SLIPS an
acre, as last resort, q territory nearly as
large as Germany.
But it was too late. For year past
failure has followed failure. and inflated
real estate has been dropping in value.
Great public works have been brought to
standstill and thousands of laborers thrown
out of employment Two weeks ago it was
found that the Provincial Cedula Bank was
in arrears on interest to the amount of $10,-
1000. The National bank, by its suspen-
sion of dividends, will add another blow to
lettering credit, and nothing short of q
wholesale destruction of inflated values is
likely IN a country hopelessly debt-ridden.
This may come by crash or by slow
ebb of values. In either case the disaster
has been discounted so long that its effect
on the markets of the world is likely to be
small. The most serious will be sudden
drain on London's stores of gold and de-
crease in the quotations of South Ameri-
cans" on the London stock exchange,
where they have been for some time rising.