New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-27
ARGENTINE FINANCE.
PRESIDENT PELLIGR1M SHOWS BUSINESS
MEN REASONS FOR HopEFULNEsS.
A LETTER IN REPLY TO THE INQUIRIES OF THE
CHAMBER OF coMMERcE-ExpoRTs OF THE
COMING YEAR ESTIMATED THE
PEOPLE URGED 70 RESIST

|
| COMING YEAR ESTIMATED - THE
PEOPLE URGED TO RESIST
THE FEELING OF PANIC.
In reply to the letter already published from the
camera del Concrete, on the financial condition OF
the republic, President c. Pelgrnl writes to Mr. Fran
cisco de souza Martinez president Of the Camera del
Concrete, follows
IL have read with great interest the exposition made
by your body Justly alarmed by the events OF the as
few days, indicating the means that its judgment
should be employed to alleviate the evils suffered by
commerce and the country In these difficult ana try
ing times. always gratifed to listen TO opinions
OF such important bodies, and grateful for ooc'
ment which gives me the opportunity Of grasplnG tie
situation and of learning what in It's opinion Is required
TO avoid the constant confusion arising from diversity
Of interests. therefore proceed TO dwell upon cach
numbered indication in the aforesaid and Will endeaVor
to prove that all Of them have already been put IN
practice by the Government far possible after
consulting the different interests and respecting al
liabilities and engagements which as sacred When
signed by the merchant when by the Government
al. Immediate suspension Of the service OF public
debts. either by reason of loans guarantees or any
| other conception. Unfortunately such suspension
already exists regarding the debts OF the nation by
virtue OF loans and guarantees per moratorium agree
ment between the creditors and regarding the loan OF
the province and municipalities which have eiIectually
ceased to pay The only service performed is that oil
the loan of 1885, because this Is guaranteed by the
collections OF the a sufficient extent Or saw
to the extent Of 100000 per month. When inc
lenders eXacted this guarantee in giving us their money
It aroused national sentiment and the Government was
attacked on the ground that the credit and honor OF the
nation was sufficient guarantee. II is painful TO con-
fess that these lenders acting with foresight ana
Judgment since by the general cry for suspension Oh
today it appear that there guarantee from
the credit Of the nation. No. nation cannon
suspend payment Of is debts however convenient tat
might he for its economical situation, without losing
honor the same as q merchant cannot suspend pay
ment of his debts because may be convenient for MS
individual commercial situation. When circumstances
mako il impossible to attend to the same, even al
though it may be temporarily he then agrees Win Ills
creditors for the extension the percentage that may
he iustifable consulting the true interests OF both
pares and respecting all existing contracts as hr as
N human power IL can be done This IS what has been
dono nv the nation and is what at this moment is being
arrued by the provinces. In the meantime IL II U'o
that outside OF 100000 per month not cent IS sent
abroad In settlement OF such debts and such service
cannot therefore be charged with the existing dSco-
! tent
| 80. Immediate suspension Of all public works dc
handing expense or outlay from the public treasury
Year before last the Government decreed the suspension
NJ all public works. excepting those which were supec'
70 special contract. such were the railroads IN tls l
| terror and the port at the capital. hesarulhs uo
railroads an agreement has been made with the CON
tractors 20 suspend construction almost entirely, limit
ing them TO finishing only those which were almost
completed and ready be turned over to the public
| sor,5ce This has occasioned complaints and claims
from, that mart OF the Republic which has been deprived
| ~ this important progress and where various i"'
austries were being prepared. counting on inc iaci~o
en- ofaoed In spite Of the justice OF these Claims 1
neople have been compelled 20 submit TO these haru
acts Of legislation, and to wait for better uhe9 NC
nf tho
have been entirely suspended by reason OF non-paS
art and the Government has been tasled during inc
,as+ tow DAVIS endeavorng 10 avoid the deterorauoA
which might result from these suspensions 10 Ihe "oh
already finished which have cost Millions ana 10 a'ou
tho claims that such brIsque SUSPENSION might 'A5
entail An agreement has been made so as 10 nhisn
fiat mart Of the works which had been almost com
Melted so diminishing the damage as lar as ssior
ard the interested parties making such CONCESSIONS
A. these circumstances demanded. In the regular
nractice Of the Government when 1t Is bound by CON
tract II cannot rescnd the same by any decreS' anu
the state OF the treasury should make us eNe'uuon m
possible legislation must be had 10 resclhu Ut ioi''
respecting always the rights OF the ccaracu Is WI" nave
centralized 10 greater or less extent This IS precise
" bo+ nrivate individuals or merchants do, and the
nation ~ like reason should act, because 1t cannot
he conpeed as individuals can TO the fuhlmehI oi Its
liabilities by any legal action 49,.
49, Reduction of the budget and dlmhuuoh u
p,,bc officials. Both measures have alreauS DC"
aben The appropriation for extras has been entirely
suppressod and the regular appropriation has been re
duced 10 large extent. over 1000 employees nave |
Tan discharged I'm the last few months The appro
nriations for next year. being prepared are suo-
ioctnd 10 a rigorous study from an economical s'd"u
nont Unfortunately the depreciation OF paper money
compels the Government TO increase III soHe l'oi4S
what is reduced in others. All items oi expenses
which amount to a considerable sum. such as equip
and
army and navy etc. must be larger In proportion to
the depreciaton Of paper money. All these expenses
have IN lie met at present. directly by the AdmhsUa-
tion and are cash payments being cohHoHVeu VII"
the singular coincidence that there are no cohuac'oIs
nor ANYBODY willing to bid because the depreciation
Of paper makes it impossible to fix prices lor one g'
and bidders would be exposed to ruin were they |
hlicod N comply strictly with contract fixing prices
- tho becuning Of a year 1t must also be observed
70 be honor Of the employees that their salaries nave
not been changed in the last few years. anu THAI ~
day they have the same pay in paper wheh goa Is
selling at over 400 that they had when gold was al
80 must say that the note in respect 10 the mum
her OF employees is radically wrong, and cannot con-
ceive who could have fixed the number OF such eo-
moves at 100000 The United states in their last ap-
nroprlation voted an increase in the Item alone Oh
nonsous equal 10 three TINES the amount Of our ehre
appropriaon Outside OF this, these statistical pro
horizons are always misleading. 1t Is an error Il pre-
sume that a nation of 100000 Inhabitants sh,uld
have the tenth part of the employees Of nation OF
80 900 COO The proportion depends upon various
causes such as style of government density OF popu
lation and system Of administration.
- Reduction Of import duties on articles Of prime
necessity and raw materials for ndustrics-l must
here call the attention Of the Camera 70 Vie Id,
at certain assertions when repeated come TO be ad
red a. po-itive facts and so it is that the camera
now admits that these duties excessive Inc IN
crease in the appropriation has not fallen upon arcs
Of prme necessity and the only MENTIONED a. 'ucn
j. sugar and that IN justice to the principles lau uo"h
by the letter which am answering, when IS u d'o
national production. The actual want IS not 'aI'eu
ny dutie, but in very small degree. 1t comes rom
The d-precation Of our money, and In proof t' want
is felt In meats and in bread neither OF winch ndNo
any duties but being articles u export Their price
| calculated i'm gold one the other hand ue OaHefa