Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1890-11-26
The MArTeawIrh THE sARlNes.
The Extent Of spocuiations In the Argen-
tine Republic.
Nav York Star.


Mr.. Charles n. Harper has sailed Tor
Buenos Ayres, in which city he has
spent the last ten years The liquida-
ton of the affairs of Barring Brothers
hurried him back to the Argentine Re
public. whore he has large business in-
terests, but before going he told some
thing about the state Of affairs there and
the causes in that part OF The world
which gave so much trouble to the great
English banking house.
"The true cause OF tho embarrassment
of the Barings," said Mr.. Harper, has
been told by the newspapers, but not
fully explained. -,
"Let il be remembered that in all the
financial transaction Of the Argentine
Government the Earrings were the real
national treasury. They furnished the
money. Now listen To the story
For years the Argentine has been
rushing ahead as the booming country
of Spanish America. They pushed for
ward grand scheme Of railroad con-
struction. which has amounted TO 6,OOV
miles. some OF it in the face OF great
engineering difficulties and involving
immense cost. An amazing and not
altogether unstable prosperity was stlmu-
lated, and then the Government began
q sort of artificial and specuia-
tive system Of promoting immigration.
Lands were sold at nominal prices, large
ly on long credits farms in certain dis
| tricts and on certain conditions were
given away, and then, for the purpose OF
stimulating cultivation and production,
the device known as the 'cedula was IN
vented.
THE cedula caused the dawnfall of
the Earrings"
"What is the cedula?'
"Why. il is exactly the scheme father
cd 10y Senator Stanford, Of California,
when he introduced his proposed law
providing for Government loans to
farmers in Congress recently. 1t is q
mortgage bond authorized by the Gov.
eminent, issued by State and local
banks, secured by mortgages on I'M
proved or unimproved lands, at the rate
of 80 per cent. of their nominal value,
the interest of these cedulas being
| guaranteed by the Government.
1.-The moment this scheme for dis
tributing money was fairly understood it
was taken advantage OF to a most mar
yellous extent. neutrality-suspicious.
in the republic and neycomers-fairly
wallowed in money, in paper money
issued by the banks; for nearly every
farm in the nation was coveredover with
cedulaa. IL was in 1882 that this craze
broke out, and within the last
eight years more than Si15, 100000
! has been loaned on this class Of
securities. OF course, the natural result
| has at last come about-interest has
been defaulted and the assumed value
| of the lands is found to be not the
market value. There is not q million
| dollars worth of these so-called securl-
tieslntbe United States. Barring Brothers
can tell where most of them are placed,
and if they did tell it would be found
that England is plastered all over with
them. Is il any wonder that the tight
little island is in n financial worry Is
il any wonder that the big English
house found it impossible TO carry the
burden Of the interest which 1t had
guaranteed on those hundreds OF mil
lions Of cedulas?
elf it were not for the magnificent re-
cuperative powers which the Argentine
people and Government possess the
cedula and the trouble with the Barings
would undo all the great good which
Legitimate enterprise has accomplished
in the republic, and would leave the
commerce ana the productive industries
of the nation at the mercy of the sharks
and harpies of the worlds financial CEN
tres.
but" concluded Mr.. Harper, "for-
tunately the past history of the Argen-
tine Republic is abiding proof that the
people and Government will come out OF
this crisis in an honorable and wholly
safe way, fulfilling their obligations to
the public and to the great clearinghouse
which SO steadily befriended them"