New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-09-13
ARGENTINn TROUBLES.
THE STORY OF ONE CTrY'S RECKLESSNESS
AND us RESULT.
Buenos Ayrcs, July %. ;.

AMI llD Ni'HOi<''
Bnenos Ayrcs, July 3D..
The apacial troubles Of the Argentine hep'Dno
80 for some time been o topic of leading
| interest 70 the fnanciers of the world ana 'ie
auotuatinQ but always high premium on goid
+, is ouoted daily. Seldom indeed has any com
paratively new and growing country been IN such
. desperate Night as this And the curious
feature of II is that the distress was not prouShV
about by an exhausting war or by any genera
national calamity 1t oil came from the recN-
| less extravaganza of single citS--Buenos Ayres-
and that extravagance in turn was prompted
| not nv mere wa:tOnness, but by mistaken lue"
of progress The city was merely trying " Pro-
vide for future growth that was DoC " 'ono
so soon as it's rulers imagined. 1t Is the STORY
Of a collapsed boom
Ten years ago this city had about quarter
| of a million inhabitants IL had recovered iroih
the bad times that followed the revolution u
! 1874 and was growing steadily and substantially
| All It's public affairs and its private lndustrles
were on n sound and healthfu basis. CredlC
was good, business was good. But this admirable
state of affairs unfortunately tempted people 10
try TO improve upon IT, They were not conteht
70 "let well enough alone Speculation be.
came rife. At first it was successful ItSles
were made OH every hand. strangers began
thousand of people locked to Buenos Ayres from
other parts Of the Republic. Go to BuenoS
Ayres and get rich" was the cry everywhere
The result was n sort of mushroom growth OF the
| city In 1850 there were more than 55O,OOO
peoplr in the city. In seven years its population
had fore than doubled. And the authorities
were foolish enough or careless enough to act as
though this were assured, permanent increase
and they entered upon public works ana ths
spending Of public money accordingly
The prices of real estate rose 10 fabulous SIMS.
Lots sold for higher prices in Buenos AyreS than
they eyer brought in New.York And estimates
were based on these abnormal prices. The NUM-
cpal government bought land at such figures for
new streets and parks. Expenses were based
on the supposition that such values woaH oe
permanent More than that, they actually
reckoned that the city would keep on indefinitely
growing at that pace, doubling It's population
every six or seven years So huge debts were
contracted In 1884 there loan OF $1,000
900. on which the yearly interest is 1892,
Two years later there was loan of Slo'OoO'OoO'
with 800. 900 yearly interest. In 1883 third
loan Of $4,000, 900, was contracted with yearly
interest of $3.50, 900, and fourth Of $lO,OOO,Ooo
in 1890. with $60O,0 interest. And at the
same time a floating debt Of about $l3,OOooOO
has been incurred Besides all this there was year
after ear a deficit, that about $2,OOO'cOo
more is due for unpaid salaries and other
accounts.
A crash had to come. When it came the
vast scheme of public improvement was not half
executed and the works today lie in OF I'M
finished state So that the public gets no benefit
from the millions that have been spent There
are splendid avenues only partly opened The
government has no money TO buy the rest OF the
land needed, and the owners will not sell with
ont pc9dy cash Other streets are half paved
with expensive wood pavements. But there le
no money to finish the work. and 50 the streets
are impossible and the pavement already laid
is going TO ruin. Moreover soon as it was
seen that tie boom" beginning to subSde
the multitude of rtune-seckcrs fed like rats
from a sinking ship. The population is now
90 900 less than it was year ago, and at tho
present rate Of dimnution it will he decreased
by 10000 more by the end of the year
All this would have been bad enough had th'
> effects been confined to this city. But they
were not. The disaster felt in every
J proyince and every town in the whole Republic
Trade was almost paralyzed. Business came t
= standstill In Rosario, Cordoba, Santa Fe
Mendoza and elsewhere the distress was as great
almost. as in Buenos Ayres itself They had beer
doing business on the basis of its business. Wher
its business was brought TO a standstil theirs wa
likewise Moreover, they had caught the intec
S ton of speculation, too. and had been developing
themselves too rapidly. The result ruin
S And to-day in every large provincial town ther
n are rows of empp houses, which were built il
a the days Of speculation for prospective tenanu
Y that have never come 10 them.
g remarkable illustration of the paralysis o
: business is TO be seen on the Uruguay River
There il fine line Of steamers connecting this cit
:. with the province of Entire Rios. Two year
), ago il was doing a splendid business. The boat
G were crowded with passengers and loaded wit
/ | freight on every trip. One had to secure hl
q berth week or two in advance. But now
:, 10 unusual for one of the boats TO have more tina
: fifteen or twenty passengers, or more than enous
> freight for ballast And the company has gOn
into liquidation. 1t is so everywhere. Tn
provincial banks have gone TO smash. The raj
u roads are not paying expenses. Manufacture
g are largely at a standstill. The army of men on
:" of work is enormous.
q It. is TO be observed, however, that the farmer
q are scnerng less than any else. lndeed, I'll
10 financial depression has been in many respects
10 good thing for them The price of land la
a cone down. so that they have been able TO enlarg
~ the area of their farms by purchase. Sugar pal
5 tations and vineyards, especially, have bee
n greatly extended Farm labor, too, has becon
in Cheaper because of the many men thrown out
a. work by the stOppage of government enterprise
is Wages are probably lower here now than III an
o. other American or European country. And Il
GO farmer has another great advantage. lie gets K
A. many Of his products-for wool, and hides, al
" sugar-not the deprecated currency but gold.
IN In this latter fact is really the most deplorab
~ feature OF the whole situation. For it evident
a. IL now the farmers interest TO have the pIese
~ FINANCIAL condition continue. lowering OF u
81 premium on gold would mean loss 10 the farme
IL 80 the abnormal spectacle is presented of the vel
- class who are the bone and sinew of the matte
is being opposed, through personal interest, 10 an
ms measure looking TO an ameoration Of the trouble
n nth which the government is cOntending. HO
~ the problem is be settled Is difficult 20 imagin
N Any sudden and radics stroke would probob
no 40 more harm than good. Gradually, II left
at Themselves. matters will adjust themselves. 50 4
10 as the internal economy of the nation is c0neerne
.ir But the trouble is that the claims of ioIels
ev creditors will keep On augmenting at a ternb
- rate SO that IL viii be impossible for them ev