The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-01-15

of the Argentine until it has closer COM
mercial connections. There are two
things that should be established at
once. one is an American bank in
Buenos Ayres, and the other line of
steamers from New York TO the Argen-
tine. calling at The different ports of
Brazil and Montevideo, and making
rapid trips from one continent TO the
other The bank would pay at the
start. There are now more than SILL
100000 worth Of exchange between Can
ada, the United States and the Argen-
tine. and our trade With the east coast
OF South America amounts 10 more
than 500 Gee O0o
AT present all the banking is done
through London. and the bankers there
take a toll of about I per cent for do
ing ill., This is a tax Of I per cent on
trade. None OF The banking companies
OF South America are in the business
Tor their health or for pleasure. They
charge for every accommodation, and
they make enormous profits. Some pay
10 psr cent dividends and nearly all
give from I 10 > per cent on deposits.
The per cent is generally on accounts
current ana on deposits of six months
from 10 s per cent is paid.
ENGLISH BANKS.
Buenos Ayres has a number of for
eign banks. whose capital runs up into
the millions. The London and River
Plate bank has branches in Brazil,
Uruguay and London, with its chief
Office in Buenos Ayres. Its capital is
about seven and half million dollars,
and il mas S5.000000 reserve fund. It's
deposits amount TO about $50, 900 GOO,
and on ali time deposits Il pays inter-
est. This bank keeps something like
II 600 COO of gold on hand The Anglo
Arsertine bank has b. Z50,000 capital,
and the capital Of the London and Bra
lillian bank is equal 10 81 800, 600 of our
money. There are strong italian banks
III Buenos Ayres. There are German
banks and Spanish banks, and, in fact,
the only country that does much busi-
ness with the Argentine which has no
direct banking connections with it is
the United States.
These banks do not speculate. They
make two clearings every day, and so
far as I know no foreign bank doing
business in the Argentine has yet fail
ed. The business is just as safe and
legitimate as that of the United States,
and if q syndicate could be organized
IL New York with several million dol
lars's capital to do business in South
America it might pay big dividends.
Such an institution might be gotten up
by the directors of insurance companies
who lend money, the stockholders to be
men who are interested in shipping
goods abroad. A manager could be
Sent from the United States to the Ar
gentine to open the bank and connec-
lions could soon be established which
" ouid make the institution pay from
the start.
Through such a bank Americans
could learn the standard of the bust
ness firms on the east coast of the At
lantic. 1t would enable large portion
of our trade to be done on safe credits,
instead of spot cash, and would put US
on the same footing as the other coun-
tries VINO trade with the Argentine. 1t
would also show the Argentines that we
have faith in them to invest money in
their country. They say that the peo-
PIE OF the United States always pro-
fessed great friendship for them, but
So far have never done anything to
help the country along They would
like to see some visible evidence of our
affection. and say that if the United
States viii establish a bank and a
steamship line they viii be ready to
believe them.
OUR VISITING COMMISSIONERS.
The commissions of so-called Amer
team capitalists which have visited the
Argentine republic to encourage trade
here, l am told, did more harm than
good. One was sent down a year or
so ago. 1t was widely advertised. and
the Argentine officials and capitalists
made great preparations to receive 1t.
v hen the commission arrived it was
discovered that many Of its members
Were commercial travellers. who had
taken advantage of the low rates of
transportation TO turn this inter-na-
TVoR "a
ming tour. One Jew peddler opened
his stock of jewelry on the special car
which the Argentine government fur
nished 70 carry the commissioners from
La Plata 10 Buenos Ayres and tried to
retail his ware to the DISTINGUISHED
Al gentines who had come to receive
the commissioners. Another CONNER
cial traveller, a man who wore a long
nock coat and Derby hat, represented
a bicycle firm, ana went from one news
paper Office to another proposing to
give the editors bicycles in exchange
Tor advertising. Another man was
mechanical expert of one of our lead
ing wagon factories. who went about
showing pictures of his shop as it was
When 1t was started and as it is today.
ana another was a lumber man, who
owned saw mill in Alabama. The
whole party, although it contained
SEINE good men, was, as far as interna-
ticnal trade was concerned, a sort of
l'alStafts army, and its march
through the Argentine brought ridicule
upon the business interests of the Unit
ed States
Al the same time that these CONNER
cial travellers We're masquerading as
American capitalists, some big English
capitalists We're quietly investing mill
ions of dollars in Argentine property
I he English capitalists 10 not send ma
ticnai trade commissions. They send
their o~n financial agents out over the
world with good bank account be-
hind them. They are always on the
lookout for good things, and they can
tell you Just about what percentage
nearly every new enterprise pays.
WHAT ENGLAND OWNS.
A large amount of the business done
in the Argentine is with English CAPT.
tai The best Of the railroads are own
ed by the English They have been
recently buying up the government
lines, and the day viii come when thew
VIII own them ALL The Argentine now
has about 11,o0O miles of road, repre-
sentIng a capital Of more than a. half
DiIiioh dollars. 1t is fast increasing Its
trackage, and the Southern railway
alone has 800 miles of extension in con.
struction which it will construct with
in a year.
me southern railway runs chiefly
through south Argentine, and among
the new lines 1t is building ia one
across Patagonia to the Andes 1t viii.
eventually cross the andes and como
cut on the Pacific at the port Of
Naldevia. making the shortest road
across the continent