Omaha daily bee., 1899-01-15

companies with large capital. The Royal
Mail Steam Packet line, which plies be-
tween Bueros Ayres and Southampton, has
a capital OF $4,000, 900. Its ships are very
good. burt the rates are high. The Com
pagnie des Messagerles Maritime, which
plies between Bordeaux, France, and
Buenos Ayres, has a capital OF I'll, 00o, 900,
and 1t pays an annual dividend OF from 5
per cent to 6 per cent. Tho North German
Lloyd, with ships from Buenos Ayres TO
Bremen, has a capital OF $4,000, 900, and
there are other English, German and Ital-
ian lines In which large sums are invested
and upon which big dividends are paid.
What American steamers Would DO.
A line of American steamers, as esti-
mated by Secretary Francois Jones Of our
legation at Buenos Ayres In an excellent
report on this subject some time ago, would
have a chance at the S113, 600, 900 worth Of
trade between the United States and the
east coast Of South America. 1t could re-
duce the time between New York and
Buenos Ayres from a month to seventeen
days, and allow a half days stoppage at
each OF the larger ports on the way. Then
the journey from New York to the Argen-
tine would be almost a pleasure trip. The
freight rates could also be reduced and
eOOuo Couiu " cChI " lhG Ai6ChtihO "
quickly from New York than from Europe.
At present we import about $50, 900, 900
worth Of coffee, hides and other things
from the Atlantic coast OF South America,
and we export about $40, 900, 900 worth Of
goods In return. Such a steamship line
would materially aid in evening up the
trade and would In the end put the bal
ance in our favor.
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 Argentine and foreigners took part.
This boom almost ruined 1t, 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.
Today this craze has passed. The people
have learned a lesson from 1t and property
Is now stable. TIL 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
heavier taxation.
All businesses, however, have to pay a
license ranging from IS to $40, 900 a year,
according to the amount OF business done.
Banking firms pay more, the highest tax
on such arms amounting to 10000. For
eign firms which do business, with or with
out a house in Buenos Ayres, have to pay
from 500 to $500, and those which are only
commercial travellers pay a fixed license OF
$50. This sum permits them to sell only
In Buenos Ayres and the national terri
tories. II they go outside OF Buenos Ayres
there is usually a state tax, which Is paid
in addition, and this ranges from 500 to
$500 q year, according to the laws OF the
state. There are of course other taxes on
business, 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 ana
bears Us any other country Of the world.
Its stock exchange, or bolsa, Is the financial
center OF the Argentine. In 1t you can
feel the pulse of the money market and can
see as crazy exhibitions 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, Its growth was discounted over and
over again and in ten years more than
1862. 900, 900 worth OF stock was floated and
| Of that more than half a billion dollars
| totally lost. There were land companies,
| banks, and, in fact, almost every kind OF In
| s%titution capitalized at millions. Most OF
| these have entirely disappeared from the
| market, while the shares Of other companies
| nave declined 80 per cent. l 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 mil
lions to be loaned on mortgages on worthless
| property. Europe sent vast sums over to
the Argentine to fill the gaps, expecting to
get tens Of millions back, and when the bub-
| BILE burst the Barring Brothers and other
long established London firms came near 60
| ing to pieces with 1t.
Today the chief speculation on the stock
exchange is in the money Of the country.
The brokers buy and sell gold, which is up
today 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 W notes.
There is no more interesting place In
South America than this stock exchange of
Buenos Ayres. Its doors are guarded by
footmen in livery, and from 10 to 1 and
from 3 to 4 p. m. you may meet upon Its
floors the brightest business men OF the
Argentine.
The membership costs lmost 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 q member Of the exchange. The Stock
exchange is not unlike q business mans
| club and II you would enter Vt without
knowing where you were going you might
we'll imagine yourself in the stock markets
| Of New York or Chicago. The only differ
ence is the language, for the men are of all
nationalities and they dress and 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. Spec
! ulation 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
l predict that the Yankees will hold their
own on this stock exchange with the Ital-
ians, Germans and English as they scramble
for the financial plums Of the Argentine Re-
public. FRANK G. CARPENTER.
A Marvellous Invention for Producing
Light.
(From the New York Journal)