The sun., 1890-07-29

schemes organized in Europe. The Buenos
Ayres Standard said in November Inst that
since 1887 new companies had been organ
lied In the republic itself with capital
amounting in the aggregate to about $780,
100000. The European obligations are all
payable in gold but at homo loans were
raised on the basis OF paper money, though
II 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 tho country still deeper in the
quicksnnds. The two great banks OF the
republic, the National Mortgage Bank and
tho Hypothecate Bank OF the Province OF
Bucnos Ayres, issued bonds known as Cedu-
las Tho banks did not loan money, but they
loaned these bonds to owners Of houses and
lands, the bonds being secured by mortgages
on tho property. and the borrower selling the
Cedulas for tho best price he could get In the
market. Here was fine chance for all
owners OF realty to plunge into speculative
enterprises, and they improved 1t 30 well
that In eight years they piled up debts, Sc
cured by mortgages on their homes and
other real estate. to about $500, 100000.
What, then, are the obligations which these
people, less than 100000 in number, have
assumed In tho eight years since tho begin
ming OF 1889 2 The owners OF real estate have
burdened themselves with debts amounting
to $500O0O 900; new companies have been
noated at homo with total capital OF $780,
100000; and money has been borrowed and
companies lloated In Europe to the amount Of
about $5OO,OO0,0oO. In other words, the peo-
pie OF the young republic have In eight
years assumed financial load OF over $400
for every man, woman, and child In the
land, and that in country where most Of
the people are still poor
Tho natural result Of this enormous pleth-
ora OF money followed. Since the days OF
the famous Mississippi scheme speculation
has seldom been so perfectly uncomfortable.
Every body saw the chance to get rich In q
hurry, and mortgaged himself up to the
eyes to improve it, Commodities OF all sorts
soon brought great prices. and real estate ad
vanced 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 $5OO0OO The Government de-
clned to pay 30 high price. A year later
the land was marketed for 100000 and
ernmcnt for $5,0o0.0Oo.
The two mortgage banks loaned all the
Cedulas they could secure mortgages for,
and the most extravagant financial leglsla-
tion hastened 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 ad-
dress. thus congratulated the country:
"The new period now inAuRurated has q brilliant
starting point worthy Of figuring in most glorious
triumphs"
But the shoe began to pinch terribly after
a few years OF paying interest In gold on
this enormous debt. Then specie payments
were suspended. This step may have been
necessary to save the country from utter
collapse. but 1t helped wonderfully to un-
settle values with the premium on gold run
ming up and down the scale from ten to one
hundred and forty per cent. The aggregate of
business failures In the past twelve months
has been enormous. The great financial
houses all over Europe that have involved
themselves 80 deeply have done their best
10 avert catastrophe by maintaining the
market. But every argument and resource
In Europe or with the Argentine
Government was futile to avert the panic
hat seized upon the country last winter.
The people, smothered in debts they have |
10 present hope Of paying. have cast about |
or a scapegoat, and pitched upon the Gov
,rnment as the source Of all their troubles. |
The unpopularity OF the CELMAN admins
ration has been augmenting for some
lime. The widest rumors concerning it's
character have been circulated, and among
hem the statement that President CELMAN
las invested $lO,OOO.O0O OF the public funds
or his own benefit abroad. Threats OF a
popular uprising have been floating in the
Iir for some time Several days ago num-
,er OF prominent men were arrested for
plotting q revolution, and the elimination
II this stormy period has been reached In
he present outbreak, which, according to
he reports, has placed the capital in the
lands Of the insurgents, while the revolt is
preading to the provinces.
This is a brief statement of the causes
hat have led to the revolution In the Ar
,entine Republic. No one can doubt the
prosperous future Of this greatest OF the
'outh American countries 1t has enor-
nous areas OF fertile lands still unsettled.
is pouring In by the hundreds
I thousands, and 1t Is blessed with all the
needed to make great and
7ealthy people. But the mistakes OF the
asst eight years must be painfully rectihed,
nd the people must regain confidence in
themselves and In their country before all
an go right again.