New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-03-18
reactions immicration has increased TO enormous

promotions during the last twenty years. and
mainly in consequence of the ADOPTION Oh tnc
system of establishing asrlcui,ural coi9 P p III
fertile and undeveloped districts. CoiSui Baker,
who knows the Argentine Republic more THOR
oughy than a native. since he has Kept MS keen
American eyes open during MS hl'cch years
residence tells me that about A. per cent of the
immigrants come from Italy, 81 per cent from
Spain and s per cent from France. They are
mainly farmers. and either 90 into the interior
of The Province of BucnOS AyTcS or else reinforce
the agricultural colonies at Santa Re The Gov
crnmcnt as | learn from the Consul, decided
eighteen months ago 70 pay the passage oil I'M
migrants from Europe TO the Argentine. in rs
was the signal for the promiscuous shipment OF
the halt. the lame, and the destitute from the
Mediterranean. There was a general clearance
of hospitals and almshOuses. llordcs of profess
sional bcggars and charity patients landed here
under the pre,ence of being agricultural laporers
eager TO obtain work in the country. Loud
camOrs were raised against the reception oil theSc
classes of paupcr labor. and the Government was
compelled TO send many OF them pack ana 10
rcsclnd the order for the payment OF lmnlSI"hV
passengers at the expense of the Treasury 10,
Consul Baker describes the year lust cndcd
remarkable alike for two almost contradictory
phases of National development ana hhahclal
depression The results of National progrSS are
the opening of farms III the new territories 'nc
stocking of csancias. the construction Oh ran
ways the development of agricultural indus' TVS
and the employment of capital IN pnpiic WoLMS
on a scale hitherto unknown even III thls Woiu'i-
full country. The Argentine has never peioN
received many immigrants; II has never pevn
richer in resources than II is to-day We, us
finances have never been in so deplOrapIc Il s'"F
The Government made. several years ago, the
fatal mistake of cgalizHg the Suspension VI
specie payments by the banks. and ol making
their issues lcgal-tendcr for dcbts ana customs
duties To this blundcr il added second ana
equally dcplorabc-that OF organlHng system
of National banks without any obligation on
their part to redeem their bills. Inc rIuS ui an
irrcdccmablc paper currency We're multiplied III
this way. The country was flooded Win issues
of paper The volume of paper currency was i IN
creased from $50 OOO. 900 10 So O.uuu.uu". Inns
imitation movement followed long period OF per
sistent oVcrtiading. by which the marker Wa
ovcrstockcd with European manufacturers ana az
the cold drained out of IT ~ Sciiline p'ENl'', -,
trade created by excessive imporiail"'N MOI
only was there an increased volume OF currency
but there were also excessive issues Of in"r'-'-r
ccdulas. on which the interest was sutran.r'
either by the National or 10y the Prov ia' '"N-
crnmcnts Under the land-borrowlng laws the
owner of stock farm. or tract Of territory can
obtain from MORTGAGE banks hypolhcchrN 'ed"HS
10 the amount of onc-halt Of the valuation 81
his property. These ccdula' he sells III ,I Ire
market for what he can get Tor lhcm. lI'
country is flooded with these deprecated mort
gage bonds: on which intcreS, is gn'T' nort,oo.
banks. the Bucnos Avres and the National naH'
increased their issues of ccdulaS nom F-,i5,''-
5oj 900 in 1857 TO SJ1l. 100000 in lNS9. re
volume of the issues of the other morleafc banks
is not officially stated. The ccduh system h'
stimulated land speculation and rrn 'S,al'
gambling. and has artiticially raised the la'''
initiation at a time when the National ana Ii"-
vincial and city debts have assumed alarming pro-
portions. as appear below
DEET STATEMENT DECEMBER 81. rs
Tho >.t,on 100 oiS 4Go 500 10 $50 ss3o 81. -.
The provinces 800. l9S.577.5e2 20 lot6o 2,@ Or,
BuenOs Ayrcs City ---.-.-.---- @'o''.''-
Totals sace 800. 5ii s25l. Al ooe *57ioo-.t'o
The National debt has been increased from : H.,
sos $50 in 1870 TO S33..3il.ii2 lr le-", ana
the interest charge Is now SlO,V?4,''.. OF o'
,,f
las been contracted mainly in the construction Oh
railways and public works and in the esiAnllNii-
mcnt of provincial banks. Inc froNln,'' n'n1
contracted their debts in railway enterprises ana
in purchasing issues Of National bonds I" h'
used 10y their own banks rs deposit ana sec,TlN
for notes put in circulation by them me ilv'-
inces have been bonded for the purpose Of obtain
ING money for the purchase Of National boNlN.
and their enormous debts have been created IN Inc
incredibly short period of three wears. I\ccssNc
Use of National and Provincial credit hnd s"'u-
lation induced by the ccdula system. l"n--r"i.
tinued ovcrtTading in lmportatlons OUT "i an
proportion TO tls, exports oi the country. al
inflated National currency and most irrational
banking law. containing no provision Tor me re-
demption of issues. have been tie main causes "i
the financial crisis through which the Argentine
is now passing -,
After thc passage Of the banl;nc act gold be
gan 10 rise rapidly The Finance Minister. win
singular faulty. assumed that the GOLD hr"N'i'
were responsible for the premiums. The l"is'i or
exchange was closed against all ire Saciion, ll
cash or time gold. Brokers were pr"hihird l'>'
year from making public sales ol goa or lIo'h
quoting the price the stock board line Il
nance Minister soon asccrtaiuFd that the police
could not regulate the premium on gold hr af-
resting brokers who recognized ne 'IhT N'lN'
Of an Incidentally fiat currcncV He tiUn fhi""
81 600 900 Of the Governments gold lr-'iN'
INFO the market for the aNowcd pufpo,r oi
enhancing the value OF the pai.r issues. Id,
ended his career Of financial nlsmHnaeem"nl.
DR. Pecheco the ablcst Af-cutinc inanri"r. "1,
recalled T. tis, Treasury. He - once rc"rrrcd ir
Polsa to gold Transactions and submitted Two
IT, ..fI HfItl"
currency which were Immediately passed one
OF these measures gradually Withdrew l'uu.-
900 of notes of the National Bank hr monthly
surrendcrs up 10 June !. 1891. TIE other law de-
crecs the reduction Of other bank issu"s after that
date until the total volume of the paper currency
shall not exceed s. 100000. These measure,
are in the rieht direction. Gold is still ~ "a
high premium. but the paper dollar which has
been worth A. cents. Will gradually hecom" more
valuable with the contraction Of the currency.
Consul Baker sums mp the whole matter when
he states that while the finances are all wrOn-.
The country is all right" The Argentine Re
public like the United States a. various period,
Of It's history. has been going ahead too l.s'
and attempting 70 do everything al once. TIE
financial crisis will pass Without affecting the
Legitimate business Interests of III" country
There will be general shTinkagc Of prices aN
an equilibrium between gold and the business
of the Argentine j. gradually established stock
camblnv land speculation and ccdula hvppihcci-
ton viii collapse. but the general interests Of
The Argentine will not he involved in the fate
Of these stupcndous bubbles South American
rcvulson stronger. more stable and more pros
cr0us than il has ever been. J. y. i.