The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1890-08-14
WHAT is A "CEDULA p
The Currency Issued on Land Mort
cages in the Argentine Republic.

cages in the Argentine Republic.
Inconvertible money is not only no
money, but it is apt to create condi-
tons that will impair the value of
real money. There is no better ex-
ample of the truth of this statement
than the story of the financial crisis
through which the Argentine Repub-
lie is SO bravely struggling now.
The causes of the crisis are not
difficult to find. For several years
the Argentines have been going
ahead. booming as no other country
in Spanish America. They pushed
forward a grand scheme of railroad
construction, which has amounted to
5000 miles, some Of it the face of
great engineering difficulties, and
involving immense cost. An amazing
and not altogether unstable prosper
ity was stimulated, and then the
government began sort of artificial
and speculative system of promoting
immigration. Lands were sold at
nominal prices. largely on long cred
it's, farms in certain districts and on
certain conditions were given away,
and then, for the purpose of stimu-
lating cultivation and production,
the device known as the cedula was
invented. The cedula is a mortgage
bond authorized by the government,
issued by state and local banks, sc
cured by mortgages on improved or
unimproved lands, at the rate Of 50
per cent. of their nominal value, the
interest on these cedulas being
guaranteed by the government.
The moment this scheme for dis
tributing money was fairly under
stood it was taken advantage of to a
marvellous extent. Everybody-old
timers in the republic and new-com-
ers-fairly wallowed in money-in
paper money issued by the banks
for nearly every farm in the nation
was covered all over with cedulas.
1t was in 1882 that this craze broke
out, and within the last eight years
more than S4I5,ooo, 900 have been
loaned on this class of securities. Of
course, the natural result has at last
come about, interest has been de-
fauted, and the assumed value of
the lands is found not to be the mar
ket value. If it we're not for the
magnificent recuperative powers
which the Argentine people and
government possess, the cedula
would have, before this, undone all
the great good which legitimate en-
terprise had accomplished in the
republic, and would nave left the
commerce and the productive indus
tries of the nation at the mercies of
the sharks and harpies of the worlds
financial Centers.
Fortunately the past history Of
the Argentine Republic is abiding
proof that the people and govern
ment will come out Of this crisis in
an honorable and wholly safe way.
Look at some facts in the early his
tory of the country. In 1874 the
last revolution was effectualIy sup
pressed. At that time the country's
commerce was insignificant With
in twelve years the exports amount
to more than $125 5000, 900, and the
imports to more than SI2o, ooo,o 900.
With one-sixteenth of the population
of the United States, about equal to
all of this country east of the Miss
issippi, the foreign trade was about
one-sixth as great as that of the
United States. Importing all of its
-four from this country in 1874, six
years thereafter it exported 1886
tons of wheat, and 36I,84 tons of
corn. And this progress will contin-
ue. In a short time, freed from
complications which involve her fl
nancial affairs to-day, and standing
upon a basis of real and honest mon
ey, the Argentine Republic will go
on in its advancing course as among
the most progressive nations of the
world.-Export and Finance.