The sun. [volume] (New York [N.Y.]) 1833-1916, 1890-07-26
The Financial Troubles at Buenos
Ayres.

The National Bank OF Buenos Ayres is to
the Argentine confederation what the Bank
OF England Is to the United Kingdom.
When, therefore we are informed that the
former institution has had to pass its quar-
terly dividend, We at once perceive that
what has OF late seemed the most prosper
Gus and progressive OF Spanish-American
communities is now In its turn passing
through severe financial crisis. The
cause of the trouble is substantially tdenti-
cal with that which reduced Peru to bank
ruptcy. VIZ, excessive indulgence In the
luxury Of borrowing rendered possible by
the credulity OF English investors and the
connvance OF English promoters OF stock
companies. There Is no doubt. however,
that the Argentincs will presently emerge
from their financial difficulties, because, in
stead of depending. like the Peruvians, on
deposits of guano and nitrates, they pos
sess agricultural resources OF limltless ex-
tent. for whose vigorous development they
may rely upon large population. inces-
sanity recruited by immigration.
No one who has marked the course OF
things in Buenos Ayres during the last ten
years can have been much surprised at the
not dishonest. speculation, not only on the
part Of the Federal Government and the
National Bank, but also OF the separate
State or provincial Governments and Of al
most every municipality. Railways have
been flung out in every direction across the
pampas, and few OF these are yet able to
make remunerative returns on the capital
invested. Even the Western Railway, which
traverses some OF the richest and most
densely populated sections OF the province
of Buenos Ayres, has hitherto been run at q
dead loss. though now that 1t has passed
into European hands it will doubtless pay
dividend. Then again, huge drainage works
and water works have been projected
for the Federal capital; docks and harbcr
works upon a colossal scale have been be-
gun at Buenos Ayres and Ensenada. while
public works OF some kind have been under
taken by every province. Although these
projects are uncompleted and. therefore, in
capable of yielding revenues, the interest on
the money borrowed for constructing them
has to be paid, and the Government guaran-
tees OF railway loans have to be made good
Even the assisted immigration, which within
recent years has added half a million to the
Argentine population, and must ultimately
augment tho money learning power, has thus
far been burden on the Treasury.
1t may be said that the present troubles
are the temporary and unavoidable outcome
of the creation OF the machinery needed to
turn the vast natural wealth of the country
to account. A crisis, doubtless, was inevita-
BILE, but it has been aggravated by the
that the laws have been violated
by public functlonaIies for the sake OF pri-
vate gain, and by the resultant loss OF conf
dcnce In the present Administration. We
have the authority OF the London Economist
for the assertion that no. only the National
Bank OF Buenos AyreS but other Argentine
banking institutions have been issuing notes
Ia excess OF the amount authorized by law.
Under such circumstances 1t Is not strange
that gold should command high and adj
premium, or that rumors should be
current OF cOnspracIes to overthrow the OK
listing Government, prompted by tho belief
that no thorough exposure OF the facts will
be otherwise procurablo. Precedents by no
means Justify one in putting faith In
the honesty of Argentine officials. 30
shameless were the populations prac-
tsed not very long ago in the Buenos
Ayres Custom House that In single
item the public revenue was deirauded
out Of nearly five million dollars IN one year
Another fraud, that OF the sham colony was
long carried on with the completely Of
officials. although public indignation has at
last, we are told, put a stop to It, A man
would own. We will say, q large tract