The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-25

| occurred in the different provinces. In
many of these the national government was
not implicated but it had at times to send
| its troops out to quell the troubles. Presi-
dent Roca will not tolerate much foolish
| ness Of this kind. and in such cases Will
send military governors TO take the places
of the regular officials until new elections
| can be held.
| CONGRESS AND TIIB BANKS.
The Argentine Republic has a federal
Congress. which meets at Buenos Ayres.
| There are two houses, one composed of SEN
ators, the other of deputies. Senators must
be thirty years of age, must have resided six
| years in their districts and have annual in
comes of $1,000 each. A deputy may be
twenty-five years of age and must have been
a citizen for four years. The deputies are
elected for four years and the senator's for
nine years. The President Is elected for six
years. Members of Congress each receive
twelve thousand Argentine dollars year.
and the President has salary of $4,000
The Vice President receives just half as
much as the President. and each OF the Cab
met ministers gets $1,000 year.
You sometimes see statements in the pa
pers of the United States that there is Il
close telephone connection between our ma
tional capital and Wall street. The Argen-
tine congressman is not troubled by having
to telephone. The houses of Congress in
Buenos Ayres are just across the square
from the Stock Exchange. and the Presi-
dents house stands between. Some of the
greatest scandals of the Argentine Republic
have been in connection with the misuse of
the public funds by government officials,
and this especially in connection with the
national banks and stocks. Nowhere upon
earth has there been such corruption as
there was in connection with the National
Bank of the Argentine, which failed for
millions This bank was largely political,
and word from prominent official would
cause it to pay out money 10 almost any
one. Congressman made no bones of levying
upon it for their support. L heard of one
deputy who borrowed a million dollars from
the bank and with this built a palace at
Belgrano, one of the suburbs of Buenos
Ayres. In getting this loan he agreed to re-
pay it in installments, SO much every three
months The time the first payment came
due the bank directors sent for him. When
he appeared they presented the note. He
looked at it and coolly said that he had no
money. They then asked him to pay the
interest, but he nonchalantly replied: Il
have nothing" He was then asked if he
could not pay some of the interest, where
upon he burst out in a rage, saying:
Il have no money, tell you. 1 don't ex-
pect to have any, and want you to know
right here, and now, whether you expect me
to fight the battles of your bank in Con-
gress and then pay back the money 1 get
from it just as other people do?" AT last
accounts that million dollars and accumu-
lated interest was still outstanding and it
will probably outstand until the end of
time.
ASKED FOR $1,000, GOT 100000.
Another instance showing the Iooseness CT
the business methods of the bank at this
time was in the case of an irresponsible
army officer of Cordoba, who wanted to bor-
row $1,000 to build a house He knew Gel
man, who was then President of the Argen-
tine, and at his request the President gave
him note TO the bank officials, but through.
misunderstanding as to the amount
wanted asked the bank to lend him 100000
instead of $4,000. The officer went to the
bank showed the letter and signed an APP
plioation which the clerk made out for him,
the clerk putting in the 100000 as requested
by the President The bank directors voted
that he should have the money, and the pa
pers were made out, the officer signing the
note without scanning the figures. When
this was done the teller of the bank showed
out $50 600 to the officer, whereupon he re-
piled that he had not asked for $4,000, but
wanted only 5000. Thereupon they showed
him the papers. The officer pointed out the
mistake and asked what he should do. They
| replied that he had better take the 5000
and leave the rest of the money on deposit,
and that when the first payment came due
he could pay the whole note. So leaving the
$54 600 the officer went away. Later on, how
ever, he met a friend who persuaded him
he would be a fool not to take all the mon
| ey as he could certainly make more by
using it for specializing. The result was he
| did take it and lost the whole, and the bank
| was never repaid.
Orders like this for money from public
! officials were frequently given to this ma
| tional bank. The standing of the man who
was to receive the money was seldom ques-
| toned although his notes were taken in
exchange for the cash. 1 have heard of
common poems who thus got money on their
worthless notes at the instance of politi-
| clans, who took the money and paid them
! for their trouble.
Ths bank would accept drafts twenty or
! thirty times greater than those which its
| directors authorized. One of the directors
was always to be bought by bride. False
balance sheets were periodically published
to deceive the public, and dividends which
had never been earned were paid out of the
| bank capital. The bank at the start had
capital of 100000. Ten years later this
| was raised to about $20.0OO,O0O, and it was
afterwards increased to $4,000 0000 In one
year its deposits were s2530O0,G00, and its
| loans over S412, 100000. 1t had in its vaults
S432, 00O, 600 of national treasury bills, and it
| had a savings department in which 81, 100000
were deposited. The bank went down in the
panic. as did other banks of similar char
| acter. One was a mortgage bank whose
/ business was lending good money on bad
| property The government was also inter-
| ested in this and many swamp lot was
| used as security for $4,000 loan. To-day
| such banks have passed away, and the man
who makes money out of the government
must do so either through bribery or
| through the getting of fat contracts.
BIG PUBLIC JOBS.
Buenos Ayres has many fine public build
| ings. 1t has as fine steamship docks as can
| be found anywhere in the world, and it is
| now building a great structure to CORE
! spond with our National Capitol at Wash
! ington do not know the exact amount Of
| money that is to be spent upon this. Some
| Of the public buildings already erected are
extravagant beyond description. Take, for