The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-06-11
ARGENTINA IN TROUBLE AGAIN.

The recurrence of pancs 10 Buenos
Ayres shows that, notwiih standing the les
sons of the past. but little progress has
been made toward placing the finances of
Argentina on a staple basis. That country,
like Australia, is a living Illustration OF
the perils of dollhouse development.
Thirty years ago, when the Argentine
Republic was completely organized, the
population was about 1.6O0,0OO and the
debt was nominal. the new State having
no credit. Fifteen years ago the republic
adopted the policy OF aiding immigration.
Steamships were chartered 10 carry immi-
grants at Government expense from Span.
ish and Italian ports to Buenos Ayres. On
landing the new corners were supplied
with free transportation to the interior,
were given free farms on the pampas and
were Supplied with seed, tools and food.
Under the stimulus OF this policy /, 1855, 900
immigrants, over half of whom were Ital-
ians, were brought into the republic. and
az the beginning of this year the popula-
ton was estimated at 4,5oO, 900, consider
ably more than that of the Australasian
colonies. But 70 accomplish this result an
enormous expenditure of money was re-
Quired, and as the income from lakes was
small, paper money was issued, not only
by the Federal Government, but by the
provinces, the inequalities and the
banks. At the present time, il the out
standing public liabilities are converted
into gold at the current premium of 200,
the republic ewes in one shape and an
other $3.50. 200. 1t is hardly necessary
to add that in such a country periodical
panics and crises are inevitable.
The burden of debt, reducing the cur
ency cedulas to coin, is S172 per head.
This is hardly as heavy as the debt carried
by the Australians, who, with population
according to the latest census of 3, 800. 900,
are indebted, exclusive of banks and cor
porations, to the tune of about 81. 00O, 000,-
000 But Australia has a powerful hacker
behind her in England and her debt is not
likely TO break her creditor, while the
debt of Argentina, with the exception of
the share which was taken by the Bar
ings and has since been distributed
among their creditors, is held by her own
people. Happily her resources are large.
Without counting her almost unlimited
area of fertile land Argentine owns at the
present time 22,0O0.OO0 horned cattle,
100000 sheep and 3.0OO,OOO horses and
mules. In 1898 she exported ESQ., tons
of wheat In an ordinary year she can
export some 10000 tons of corn, but for
the last three seasons the corn crop has
been destroyed by the locusts
1t is evident that sooner or later Argen-
tina will pull through and stand on her
feet again. 1t is quite probable, however,
that before then the debt will have to be
scaled. The sooner it is placed on specie
basis the sooner people will know where
they stand Dealing in a currency which
is worth one sum Of money to-day and
another tomorrow is excellent for specu-
lators who make money out of the fiuctua-
tons, but it is death to honest industry
and trade. A resumption of specie pay
ments coupled with postponement of
interest on half the debt for period of
years would convulse things for a time,
but it would pave the way for permanent
recovery. Wheat, wool and hides are al
ways property. A nation which has an
abundant supply of all three can always
pay her debts sooner or later.