The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-08-07
WOES OF ARGENTINE.
Causes That Led to BlOodshed
in Buenos Ayres.
GOVERNMENT BY PRoFLlcATEs.
Contracting Almost Unlimited Debts and
INDUCING in Wild Financial De-
bauches-The Revolt.
GOVERNMENT BY PRoFLIcATEs.

x
President Celman has Withdrawn his res
ignaiion, the Senate having refused to &C
cept. It is reported that his cabinet will
comprise Levaile. Costa, Irojoyen, Lastra
and Agote
LONDON, Aug. GA dispatch to the Times
from Buenos Ayres, says: 1t is impossible
TO describe the indignation that prevails
here, arising from President CeIman' IS
playing with his solemn promise to resign.
Every effort will be used to prevent Vice
president Pelligrini from resigning, as he
remains president if the chamber of depu-
ties accepts Celman's resignation. 1t is
expected in the event of his becoming
president that Pelligrini will surround
himself with the best and most honorable
men. Every effort will be made to sustain
the republic. Every body is disposed to
make monetary and personal sacrifices to
assure an honest government.
Consul Baker said in his New York sam
report from Buenos Ayers three years ago
that the Argentine Republic had been try
ing Ito do too much and 60 too fast" The
present revolution is The final condemna-
ton of the policy. ~
For several years past all the different
sorts of governmental machinery author
lied to contract debts have been working
az Iuil pressure. The republic itself. the
provinces Of which it is composed, and the
municipalities have been borrowing money
in Europe to an extent that scarcely any
thing but the purse OF Fortunatus could re-
pay. At first all that was asked was OBJ
tanned in London. Finally the British in
vestors became scared. 1t seemed to them
that the Argentine people were trying to
discount their future for the next century
So
British purses were closing, went to the
continent for money, and raised large
loans in Paris, Berlin and Amsterdam.
They borrowed until the European public
actually declined to lend.
Here are some of the things they have
been doing with all this money. They de-
cided to open up their vast sountry, most
OF it very sparsely inhabited, by lines of
railroads running in every direction. these
lines have been built, or are now building.
Some of them run TO or toward the Cordill-
eras for long distances through country
that has not yet been settled at all. Then
all sorts of other industrial enterprises have
been encouraged. Scores of companies
were organized in Europe. The amount of
money which they asked from Europe was
in round numbers $3.50, GOO 600. They got
in fact, about $500, 900 600.
But this was not all by any means. The
fever of speculation and expansion seized
everybody. In addition to the enormous
transactions abroad, many hundreds of
companies were formed and millions of
money put into them at home. 1t should
be borne in mind that these home enter
prises and debts are entirely distinct from
the obligations and schemes organized in
Europe. The Buenos Ayres Standard said
in November last that since 1882 new COM
panies had been organized in the republic
itself with capital amounting in the aggre-
gate to about 5000, 100000. The European
Obligations are all payable in gold, but at
home loans were raised on the basis of
paper money, though it is stipulated that
principal and interest, and also dividends,
must be paid in gold.
But in addition to this colossal load of
debt the craze for speculation found means
OF involving the country still deeper in the
quicksands. The two great banks of the
republic--the National Mortgage bank and
the Hypotheicate bank of the Province of
Buenos Ayres-issued bonds known as the
cedulas. The banks did not loan money,
but they loaned these bonds to owners of
houses and lands, the bonds being secured
by mortgages on the property and the bor-
rover selling the cedulas for the best price
he could get in the market. Here was fine
chance for all the owners of realty to plunge
into speculative enterprises, and they i'm
proved it so well that in eight years they
their homes and other real estate, to about
$50. 000, 00O
What, then, are the obligations which
these people, less than 1000, 900 in number,
have assumed in the eight years since the
beginning of 1882? The owners of real
estate have burdened themselves with
debts amounting to $500, 000, 900; new COM
panies have been floated at home with q
total capital of $500 ,000, COO; and money has
h0r amin -.
Europe to the amount of about $500, COZ, OO0
In other words, the people of the young
republic have in eight years assumed q
financial load of over $500 for every man,
woman and child in the land, and that in a
country where most of the people are still
POOR.
The natural result of this enormous
plethora of money followed. Since the
days of the famous Mississippi scheme spec
ulation has seldom been so per-
fectly uncomfortable. Everybody saw
the chance 10 get rich in a
hurry, and mortgaged himself up to the
eyes to improve it. Commodities of all
sorts soon brought great prices, and real
estate advanced by leaps and bounds. The
Buenos Ayres Standard tells of bit of
ground in that CITY that was offered to
the government in 1887 for $4,000. The
government declined TO pay so high a
price. a year later the land was mar
keted for 81, 900. 0O0 and last summer it
was purchased by the government for S.
0O0, 600
The two mortgage banks loaned all the
cedulas they could secure mortgages for,
and the most extravagant financial legsla-
ton FASTENED the day of collapse. The in
evitable storm, which began brewing over
three years ago, when President Celman.
now fugitive from his capital was inaug-
urated, seems to have been foreseen by no.
body. Celman himself, in his inaugural
address. thus congratulated the country:
The new period now inaugurated has
brilliant starting point, worthy of figuring
in our most glorious triumphs.''
But the shoe began to pinch terribly af-
ter few years of paving interest in gold
on this enormous debt. Then specie paw
ments were suspended. This step may
have been necessary TO save the country
from utter collapse, but it helped wonder
fully to unsettle values, with the premium
on gold running up and down the scale
from 10 to 40 per cent. The aggregate of
business failures in the last twelve months
has been enormous. The great financial
houses all over Europe that have involved
themselves so deeply have done their best
to avert q catastrophe by maintaining the
market. But every argument and re-
source originating IN Europe or with the
Argentine government was futile 70 avert
the panic that seized upon the country last
winter.
The people, smothered in debts they have
no present hope OF paying. have cast about
for scapegoat and pitched upon the gov
eminent as the source of all their troubles
The unpopularity of the Celman admins
tration has been augmenting for some
time. The widest rumors concerning its
character have been circulated, and among
them the statement that President Ceiman
has invested $40 ,000. 900 of the public funds
for his own benefit abroad threats OF
popular uprising have been floating in the
air for some time. Several DAYS ago a