The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-01-15

a days stoppage at each of the larger ports
on the way. Then the journey from New
York to the Argentine would be almost
pleasure trip. The freight rates could also
be reduced, and goods could be sent to the
Argentine more quickly from New York
than from Europe. At present we import
about $50 100000 worth of coffee. hides and
other things from the Atlantic coast of
South America and we export about $50
100000 worth of goods in return. Such a
steamship line would materially aid in even
ing up the trade, and would in the end put
the balance in our favor.
SPECULATION
A general idea prevails that the Argentine
Republic is a very unsafe place for invest
ments This is not so. Property is now as
stable in the Argentine as elsewhere. But
the country went wild about nine years ago.
1t then had a boom in which both the Ar
gentines and foreigners took part. This
boom almost ruined it. and during it there
was undoubtedly a great deal of fraud upon
the part of the government officials as to
their handling of the government finances
and funds.
To-day this craze has passed. The people
have learned a lesson from it and property
is now stable. The biggest things are now
managed by foreigners, and from year to
year the government holdings grow less. A
foreigners property is perfectly safe He
has in fact equal rights with the natural
lied Argentine, and he is subject to no heav-
Ter taxes.
All businesses, however have to pay IL
cense ranging from IS to $4,000 a year ac-
cordng to the amount of business done.
Banking firms pay more the highest tax
on such firms amounting to 100000. For
eign firms who do business. with or with
out a house in Buenos Ayres, have to pay
from 500 to $500, and those who are only
commercial travellers pay a fixed license of
$50 This sum permits them to sell only in
Buenos Ayres and the national territories.
If they go outside of Buenos Ayres there is
usually a state tax, which is paid in addi-
ton, and this ranges from 800 to $500
year, according to the laws of the state.
There are, of course, other taxes on bust
ness such as stamps, etc, but these are
somewhat the same all the world over.
IN THE STOCK EXCHANGE.
AS to stock gamblers Buenos Ayres has
as great a number of financial bulls and
bears as any other country of the world.
It's stock exchange, or bolsa, is the faan-
cial center of the Argentine. In it you can
lGSl TIC pulS6 VI eeAAe NSe-A
see as crazy an exhibition of financial specu-
lation as in Paris London or New York.
The great boom which burst in 1890 came
from the rapid growth Of the country after
1880. It's growth was discounted over and
over again, and in ten years more than
$685., 600 600 worth of stock was floated and
of that more than half a billion dollars
totally lost There were land companies,
railway companies, insurance companies,
banks, and in fact almost every kind of in
stitution capitalized at millions. Most of
these have entirely disappeared from the
market, while the shares of other compa-
MES have declined 80 per cent. I doubt
whether there have ever been anywhere
such loose business methods as prevailed
here at that time.
The officers of the government were In
many of the deals. The very highest Off
Gals speculated with government money
and through the government banks allowed
millions to be loaned on mortgages on
worthless property. Europe sent vast sums
over to the Argentine to fill the gaps, ex-
pecting to get tens of millions back, and
when the bubble burst the Barring Broth
ers and other Iong-established London firms
came near going to pieces with it.
To-day the chief speculation on the Stock
Exchange is in the money of the country.
The brokers buy and sell gold, which is up
to-day and down tomorrow, or, rather, they
sell the credits of their country. In other
words, the most of their business is in buy
ing and selling their own notes.
There is no more interesting place in
South America than this Stock Exchange of
Buenos Ayres. It's doors are guarded by
footmen in livery and from u to / and
from to p m. you may meet upon its
floors the brightest business men of the
Argentine.
The membership costs almost nothing and
the dues are less than So a quarter
The result is that there are 700 brokers
and nearly every prominent business man
of the city is a member of the exchange.
The Stock Exchange is not unlike business
mans club and if you could enter 1t with
out knowing where you were going you
might well imagine yourself in the stock
markets of New York or Chicago. The
only difference is the language, for the men
look just as their brother-brokers do in
London, New York or Chicago.
The same mutations of fortunes exist
and each man can tell you his own story
of ups and downs - Of fortunes lost and
Won Speculation makes and loses money
just as quickly in Buenos Ayres as in New
York, and as the commercial relations of
the United States and the Argentine grow
closer 1 predict that the Yankees will hold
their own on this Stock Exchange with the
Italians Germans and English as they
scramble for the financial plums Of the Ar
gentine Republic.
FRANK G. CARPENTER