Omaha daily bee., 1899-01-15
OPENINGS In ARGENTINE
Business Opportunities for Americans in the
Southern Republic.
Ohm BULL KNOWS A GOOD THING
British Money Going Into Railroads
and Land-MOney Makes Money
There-Real Estate and
stock Speculation.

Inefe-Ne0I Estate anu
stock Speculation.
Copyright. 1899, by Frank @. Carpenter.)
BUENOS AYRES, Dec. 20. 1S9S.-(Special
Correspondence Of The Bee.)-The United
States will not be able to compete with the
European nations for the trade of the Ar
gentlne until 1t has closer commercial con-
nectlons. There are two things that should
be established at once. One is an Ameri-
can bank in Buenos Ayres and the other a
Zine Of steamers from New York to the
Argentine, calling at the different ports Of
Brazil and Montevfdeo, and making rapid
Trips from one continent to the other. Both
OF these institutions would pay well. The
bank would pay at the start. There are
now more than s11, 900, 900 worth of ex-
change between Canada, the United States
and the Argentine, and our trade with the
east coast OF South America amounts to
more than 500, 900, 900.
At present all the banking is done
through London, and the bankers there take
Q toll of about 1 per cent for doing 1t. This
Is q tax of 1 per cent on trade. None Of
the banking companies Of South America
are in the business for their health or for
pleasure. They charge for every accom-
mediation, and they make enormous profits.
Some pay 16 per cent dividends, and nearly
all give from 1 to 8 per cent on deposits.
The 1 per cent is generally on accounts
current, and on deposits OF six months
from s to s per cent Is paid.
English hanks ana what They Make.
Buenos Ayres has a number Of foreign
banks whose capital runs UP into the mil
lions. The London and River Platte bank
has branches in Brazil, Uruguay and Lon
don, with the chief office in Buenos Ayres.
Its capital is about $1,000, 900, and 1t has
IS, 900, 900 reserve fund. Its deposits amount
to about $50, 00O, 900, and on all time de-
posts it pays interest. This bank keeps
something like Ell, OOO, 900 Of gold on hand.
The Anglo-Argentine bank has $2,25O, 900
capital. and the capital Of the London and
Brazilian bank Is equal to $500. 900 OF our
money. There are strong italian banks in
Buenos Ayres. There are German banks
and Spanish banks, and, In fact, the only
country that does much business witt the
Argentine which has no direct banking con-
nections with 1t is the United States.
These banks do not speculate. They
make two clearings every day, and so far
as l know no foreign bank doing business
in the Argentine has yet failed. The busi-
utbS Is just as SAFE duu leSltlludtc dS tudI
OF the United States, and IL a syndicate
could be organized in New York with sew
eral million dollars cspital to do business
in South America 1t might pay big divi-
dends. Such an institution might be gotten
up by the directors OF insurance companies
and other 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
Argentine to open the bank and connec-
lions could soon be established which would
make the institution pay from the start.
Through such a bank Americans could
learn the standard Of the business firms on
the east coast OF the Allan tic. 1t would
enable a large portion of our trade to be
done on a safe credits instead Of spot cash
and would put us on the same footing as
the other countries who trade with the Ar
gentine. 1t would also show the Argen-
tines that we have enough faith In tn to
invest money in their country. They say
that the people q the United States have
always professed a 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 II the United States
will establish a bank and a steamship line
they will be ready to believe In them.
About Our Visiting Commissioners.
The commissions OF so-called American
capitalists which have visited the Argen-
me republic to encourage trade have, I am
old, done more harm than good. One was
tent down a year or so ago. 1t was widely
Advertised and the Argentine officials and
capitalists made great preparations to re-
ceive 1t.
When the commission arrived 1t was dis
covered many Of its members were CONNER
cial travellers, who had taken advantage of
the low rates OF transportation to turn this
international trade expedition into a drum
ming tour. One Jew peddlar opened his
stock Of tewelry on the special car which
the Argentine government furnished to
carry the commissioners from La Plata to
Buenos Ayres and tried to retail his ware to
the distinguished Argentines who had come
there to receive the commissioners. An
other commercial traveller, a man who wore
q long frock coat and derby hat, represented
a bicycle Arm, and went from one news
paper office to another proposing to give the
editors bicycles in exchange for advertising.
Another mar was a mechanical expert of one
Of our leading wagon factories, who went
about showing pictures Of his shop as II