The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-07-28
THE REVOLUTIONS IN ARGENTINE.

The news of popular uprising at Buenos
Ayres is not surprising. Popular outbreaks
are familiar incidents of financial crises
The first consequence of monetary crash
is stoppage of public works and private
expenditures, and the persons thrown out
of employment naturally seek scapegoat
When gold rose above a premium oil 2OO
per cent at Buenos Ayres the mob was
sure, sooner or later, to disturb the peace
The situation has been impending Tor
several years. Half a century ago the pop
uIation Of the Confederation was only
little more than half million people.
Tuenty years ago the Government adopted
a policy of stimulating immigration, settle
ment and railroad building, by means OF
subsidies and bountes. The fare of immi-
grants from EurOre was paid by the Gov
eminent. Land was given them, or sold on
long time Liberal subsidies were voted TO
railroads. The consequence has been that
the population has been swelled to four or
five millions. Argentine has become large
exporter of wool. grain and meat, ana
very considerable amount Of English cap
ital has been invested in building railways
in the republic. But all this artificial de-
velopment has cost money. quarter oil a
century age. Argentne's debt was small,
partly because it had no credit Now 1t is.
in round figures, S550,000,000. and the States
credit until lately has been good. The an
nnal expenditures including interest on the
debt, is given in the budget for 1890 at
about $40, 100000, which is large sum to
be collected annually by taxation from
State with small population. Such
strained condition of finance has
of course involved issues of irredeem-
able legal tender money, and the meas
ure of public confidence has been
the premium on gold. Within a few years
it has been as low as 40 per cent; now 1t is
over 200 per cent, or, as we should say In
this country, gold is worth 800; and the de-
probation of public securities and mercan-
tile paper compelled the National Bank on
the LIST inst. to pass its usual dividend.
The ministerial crisis which appears to
have led to the flight of President Celman
and to the inauguration of provisional
government is of no particular concern to
the outside world 1t matters little what
manner of men is at the head of affairs, as
events are controlled by existing conditions
and cannot be changed by individuals. The
GROWING fact in the case is that the repub-
lie has exhausted its ability TO discount the
future. The enterprises in which it has
invested its credit are sound, and will, in
the end vindiCate the wisdom of their pro-
jectorS. But in the meantime the financial
system has broken down, the States capa-
| city TO borrow has been exhausted, and the
money for which people are exchanging
! their labor and their goods has lost Its pur-
! chasing power Unless miracle can be
wrought, liquidation is inevitable.
| In what shape that will come remains to
! be seen. When this country got into SIM
liar scrape over half a century ago, the cri-
sis was tided over by creditors having to
| wait, and merchants had to 20 into bank
| ruptcy. breathing spell thus secured,
| the work of reconstruction began, and the
| people being as a rule industrious, thrifty
| and intelligent the naticn emerged from
| the wreck more solid than ever, and every
| body was paid in full. This would have
| been the fate of the British Col
! ones some years ago but for the helping
| hand which Great Britain outstreehed to
her provinces. Argentine has no such
friend TO carry her through her crisis, and
a readjustment of her debt and modifca-
| ton OF her forcing system seem inevitable.
| Much individual distress will ensue. But
| as tie debts the republic has incurred are
represented oy enterprises which will prove
! lucrative in the end, it viii be merely q
| question of time when the present storm
will blow over and a new era of prosperity
| will be inaugurated.