The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1890-11-21
ON BORROWED CAPITAL.
The Argentine Republic Hardly Able
to Pay Interest on its
Debts.
LaPlata, the New Capital q Mar
vel Of Modern Beauty,
MortgaRed.
A Collapse Almost Inevitable Uruguay In
the Same Fix-Ths Barlngs
Were Agents.

Nxw YoaK. Nov. 20.-A prominent mer-
chant from Buenos Ayres, who had very re-
Gently left there and for ''business reasons
was very deeply interested in the trouble
that has overtaken the great house Of Bar
ing Brothers, said yesterday: "Baring
Brothers were tho great financial backers
Of the Argentine Republio, and the trouble
which has befallen them must react most
disastrously ON thsfnances of that coun-
try, in my opinion it means complete COL
lapse Of the phenomenal boom which the
country has been enjoying for 80 many
years. The facility with which the ArRen-
tine Republic obtained foreign loana
through the aid of Barring Brothers fostered
all manner of prodigious enterprises and
caused the country to develop at tremend-
ously rapid rate. doubt il any other
country ever has gone ahead like ours. It
has produced extravagant speculation and
bred an optimistic spirit among tho peo-
pie, which makes them impatient OF any
thing like sober counsel.
.Our new capital. La Plata, furnishes ex-
amples Of this spirit. It wasn't born Of ne,
ceseitv: it was the product of national
pride. It was begun only q few years ago
and is now beautiful city lighted bv cleo
tricity, ornamented with parks and contain
ing, in word, all the modern improve
ments. The country is proud of it; it is re-
garded as the browning growth OF ou!
progress, but the more sober-minded
AMONG us have seen in it q colossal monu-
ment TO debt. It was built with loaned
money.
"Our marvellous progress has been found
ed on borrowed capital. We have con-
tracted debts that will hang around our
necks like millstones for q great many
years, for these debts must be paid, OF
at least the interest on them. The more
conservative among US have seen Iof
some time that q day OF reckoning
must come, and this disaster that mas
overtaken Barring Brothers will precipitate
tinue to pay the interest on our debt.
which amounts to $234, ,733, ,558, not includ
ling the interest on the cost OF railroads
and other enterprises on which the govern
ment has guaranteed interest. 1t must be
remembered that the interest has TO be
Ia currency, which has tremendously de.
prsciated in valne and fear it hasn't
struck bottom vet. Between the national
ana provincial banks the Argentine Repub-
lie must have issued something like $5O
100000 in paper currency. a complete
The earnings OF the railroads have to 60
out of the country to pay foreign stock
holders. The country 10 practically mort
gagged to foreign investors.
ssThe neighboring government OF Uru-
quay is in the same fix, Barring Brothers be-
Ing also their financial backers. know that
Barring Brothers are interested in the con-
troll Of the National Bank Of Uruguay and
have something like 10000 shares, on which
they must have lost heavily. These shares
were above par some years ago when they
bought them and now they are something
Brothers have made two loans to the Urn
guayan government. The first loan. which
was made two years ago, was for ,OOO, GOO.
The second. which was made six months
ago, was for e2,O0O,0OO. guess that firm
II have spoken frankly said my infor-
mant in conclusion, because depend on
you not to betray my identity. In Beunos
Ayres the plain unvarnished truth Is re-
garded az rank treason"